BlackRock Enhanced International Dividend Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-22032

Name of Fund: BlackRock Enhanced International Dividend Trust (BGY)

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Enhanced International Dividend Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2018

Date of reporting period: 09/30/2018

Item 1 – Schedule of Investments

Schedule of Investments  (Unaudited)

September 30, 2018

   

BlackRock Enhanced International Dividend Trust (BGY)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks — 98.0%  

Australia — 8.4%

 

Amcor Ltd.

     3,183,632     $ 31,464,496  

Ansell Ltd.

     642,538       11,720,436  

Sonic Healthcare Ltd.

     865,137       15,566,031  
   

 

 

  
    58,750,963  
Belgium — 1.2%  

bpost SA

     506,122       8,213,362  
   

 

 

  
Canada — 10.5%  

Rogers Communications, Inc., Class B

     692,484       35,614,688  

TELUS Corp.

     1,017,097       37,490,023  
   

 

 

  
    73,104,711  
China — 1.6%  

ANTA Sports Products Ltd.

     2,377,600       11,350,262  
   

 

 

  
Denmark — 1.8%  

Novo Nordisk A/S, Class B

     269,928       12,704,177  
   

 

 

  
Finland — 5.1%  

Kone OYJ, Class B

     658,664       35,158,662  
   

 

 

  
France — 6.9%  

Sanofi

     367,176       32,806,142  

Schneider Electric SE

     191,798       15,400,800  
   

 

 

  
    48,206,942  
Germany — 4.2%  

Deutsche Post AG, Registered Shares

     823,072       29,263,788  
   

 

 

  
India — 1.5%  

Hero MotoCorp Ltd.

     258,655       10,468,027  
   

 

 

  
Japan — 1.6%  

Japan Tobacco, Inc.

     421,300       11,001,535  
   

 

 

  
Netherlands — 4.3%  

Heineken NV

     149,488       14,029,544  
Security   Shares     Value  
Netherlands (continued)  

Koninklijke Philips NV

     347,780     $ 15,852,322  
   

 

 

  
    29,881,866  
Singapore — 3.0%  

DBS Group Holdings Ltd.

     561,600       10,713,723  

United Overseas Bank Ltd.

     507,200       10,026,547  
   

 

 

  
    20,740,270  
Sweden — 2.7%  

Svenska Handelsbanken AB, Class A

     1,471,323       18,555,790  
   

 

 

  
Switzerland — 12.0%  

Nestle SA, Registered Shares

     400,417       33,329,330  

Novartis AG, Registered Shares

     452,137       38,919,254  

SGS SA, Registered Shares

     4,257       11,208,388  
   

 

 

  
    83,456,972  
Taiwan — 4.4%  

Far EasTone Telecommunications Co. Ltd.

     3,518,000       8,387,911  

Taiwan Semiconductor Manufacturing Co. Ltd.

     2,599,000       22,178,651  
   

 

 

  
    30,566,562  
United Kingdom — 23.8%  

AstraZeneca PLC

     310,495       24,201,236  

British American Tobacco PLC

     648,600       30,238,053  

Diageo PLC

     596,483       21,132,247  

GlaxoSmithKline PLC

     1,291,186       25,894,363  

Imperial Brands PLC

     932,996       32,466,345  

Unilever PLC

     577,295       31,713,182  
   

 

 

  
    165,645,426  
United States — 5.0%  

3M Co.(a)

     102,009       21,494,316  

Microsoft Corp.(a)

     116,534       13,327,994  
   

 

 

  
    34,822,310  

Total Common Stocks — 98.0%
(Cost — $693,544,578)

 

     681,891,625  
   

 

 

  
 

 

 

          1  

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock Enhanced International Dividend Trust (BGY)

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Preferred Stocks — 0.7%  

China — 0.6%

 

Xiaoju Kuaizhi, Inc., Series A-17 (Acquired 07/28/15, cost $2,106,332), 0.00%(b)(c)(d)

     76,800     $ 3,911,424  
   

 

 

  
India — 0.1%  

Jasper Infotech Private Ltd., Series I, (Acquired 05/07/14 — 10/29/14, cost $3,948,600),
0.00%(b)(c)(d)

     5,300       1,088,355  
   

 

 

  

Total Preferred Stocks — 0.7%
(Cost — $6,054,933)

 

     4,999,779  
   

 

 

  

Total Long-Term Investments — 98.7%
(Cost — $699,599,511)

 

     686,891,404  
   

 

 

  
Security   Shares     Value  
Short-Term Securities — 0.5%  

BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.97%(e)(f)

     3,531,919     $ 3,531,919  
   

 

 

  

Total Short-Term Securities — 0.5%
(Cost — $3,531,919)

 

     3,531,919  
   

 

 

  

Total Investments Before Options Written — 99.2%
(Cost — $703,131,430)

 

     690,423,323  
   

 

 

  

Options Written — (0.9)%
(Premiums Received — $5,200,619)

 

     (5,951,878 ) 
   

 

 

  

Total Investments, Net of Options Written — 98.4%
(Cost — $697,930,811)

 

     684,471,445  

Other Assets Less Liabilities — 1.6%

 

     11,218,542  
   

 

 

  

Net Assets — 100.0%

 

   $ 695,689,987  
   

 

 

  
 
(a)

All or a portion of the security has been pledged as collateral in connection with outstanding OTC derivatives.

(b)

Restricted security as to resale, excluding 144A securities. As of period end, the Trust held restricted securities with a current value of $4,999,779 and an original cost of $6,054,932, which was 0.8% of its net assets.

(c)

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(d)

Non-income producing security.

(e)

Annualized 7-day yield as of period end.

(f)

During the period ended September 30, 2018, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Trust were as follows:

 

Affiliate    Shares
Held at
12/31/17		      Net
Activity		      Shares
Held at
09/30/18		      Value at
09/30/18		      Income     

Net

Realized
Gain (Loss)(a)

      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

      5,073,700        (1,541,781 )       3,531,919      $ 3,531,919      $ 67,864      $ —      $ —  
           

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a)

Includes net capital gain distributions, if applicable.

 

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

Currency Abbreviations
AUD   Australian Dollar
CAD   Canadian Dollar
CHF   Swiss Franc
DKK   Danish Krone
EUR   Euro
GBP   British Pound
HKD   Hong Kong Dollar
INR   Indian Rupee
JPY   Japanese Yen
SEK   Swedish Krona
SGD   Singapore Dollar
TWD   Taiwan New Dollar
USD   United States Dollar

 

 

2   

Schedule of Investments  (unaudited) (continued)

September 30, 2018

    BlackRock Enhanced International Dividend Trust (BGY)

 

Derivative Financial Instruments Outstanding as of Period End

Exchange-Traded Options Written

 

Description    Number of
Contracts		       

Expiration

Date

       

Exercise

Price

       

Notional

Amount (000)

        Value  

Call

 

3M Co.

      94          10/05/18        USD     215.00        USD     1,981        $ (2,961 ) 

Microsoft Corp.

      254          10/05/18        USD     109.00        USD     2,905          (141,605 ) 

Microsoft Corp.

      25          10/12/18        USD     113.00        USD     286          (6,062 ) 

Rogers Communications, Inc., Class B

      410          10/12/18        CAD     67.50        CAD     2,724          (8,888 ) 

Rogers Communications, Inc., Class B

      409          10/12/18        CAD     68.00        CAD     2,717          (5,541 ) 

3M Co.

      134          10/19/18        USD     210.00        USD     2,824          (49,245 ) 

Microsoft Corp.

      359          10/19/18        USD     110.00        USD     4,106          (183,988 ) 

Rogers Communications, Inc., Class B

      730          10/19/18        CAD     70.00        CAD     4,849          (5,934 ) 

Microsoft Corp.

      61          10/26/18        USD     115.00        USD     698          (16,317 ) 

3M Co.

      117          11/02/18        USD     212.50        USD     2,465          (51,188 ) 

3M Co.

      134          11/09/18        USD     212.50        USD     2,824          (62,645 ) 

TELUS Corp.

      284          11/16/18        CAD     50.00        CAD     1,352          (3,518 ) 
                          

 

 

  
                           $ (537,892 ) 
                          

 

 

  

OTC Options Written

 

Description    Counterparty    Number of
Contracts		      Expiration
Date		     

Exercise

Price

     

Notional

Amount (000)

      Value  

Call

                      

TELUS Corp.

    Morgan Stanley & Co. International PLC      28,500        10/01/18        CAD     $ 47.65        CAD       1,357      $ (4,656 ) 

Ansell Ltd.

    Citibank N.A.      32,000        10/03/18        AUD       25.48        AUD       807        (3,464 ) 

DBS Group Holdings Ltd.

    JPMorgan Chase Bank N.A.      120,300        10/03/18        SGD       25.73        SGD       3,137        (39,267 ) 

Diageo PLC

    Morgan Stanley & Co. International PLC      77,900        10/03/18        GBP       27.60        GBP       2,117        (6,458 ) 

Far EasTone Telecommunications Co. Ltd.

    JPMorgan Chase Bank N.A.      109,000        10/03/18        USD       73.26        USD       7,935        (1,046 ) 

Heineken NV

    Morgan Stanley & Co. International PLC      45,000        10/03/18        EUR       86.69        EUR       3,637        (1 ) 

Kone OYJ, Class B

    HSBC Bank PLC      34,600        10/03/18        EUR       46.66        EUR       1,591        (15,365 ) 

bpost SA

    Credit Suisse International      37,000        10/03/18        EUR       13.78        EUR       517        (13,427 ) 

TELUS Corp.

    Goldman Sachs International      24,600        10/09/18        CAD       47.10        CAD       1,171        (14,324 ) 

TELUS Corp.

    Royal Bank of Canada      63,600        10/09/18        CAD       48.43        CAD       3,027        (4,861 ) 

bpost SA

    Credit Suisse International      37,000        10/09/18        EUR       13.78        EUR       517        (16,699 ) 

ANTA Sports Products Ltd.

    UBS AG      310,000        10/10/18        HKD       44.36        HKD       11,585        (1,957 ) 

Amcor Ltd.

    Morgan Stanley & Co. International PLC      518,800        10/10/18        AUD       14.73        AUD       7,092        (191 ) 

Sonic Healthcare Ltd.

    JPMorgan Chase Bank N.A.      93,000        10/10/18        AUD       26.14        AUD       2,315        (997 ) 

Koninklijke Philips NV

    Morgan Stanley & Co. International PLC      163,400        10/12/18        EUR       38.43        EUR       6,415        (209,353 ) 

Novo Nordisk A/S, Class B

    Morgan Stanley & Co. International PLC      82,100        10/12/18        DKK       319.16        DKK       24,818        (4,867 ) 

GlaxoSmithKline PLC

    Citibank N.A.      572,700        10/17/18        GBP       15.61        GBP       8,814        (95,991 ) 

Heineken NV

    Goldman Sachs International      25,300        10/17/18        EUR       83.85        EUR       2,045        (4,673 ) 

Nestle SA, Registered Shares

    Morgan Stanley & Co. International PLC      53,700        10/17/18        CHF       80.30        CHF       4,387        (101,421 ) 

Novo Nordisk A/S, Class B

    Deutsche Bank AG      44,700        10/17/18        DKK       312.83        DKK       13,512        (11,620 ) 

Sonic Healthcare Ltd.

    JPMorgan Chase Bank N.A.      93,000        10/17/18        AUD       26.14        AUD       2,315        (2,934 ) 

Svenska Handelsbanken AB, Class A

    Morgan Stanley & Co. International PLC      270,000        10/17/18        SEK       110.00        SEK       30,262        (90,295 ) 

TELUS Corp.

    Goldman Sachs International      24,700        10/17/18        CAD       47.40        CAD       1,176        (13,560 ) 

bpost SA

    Deutsche Bank AG      35,000        10/17/18        EUR       14.10        EUR       489        (11,512 ) 

Ansell Ltd.

    Goldman Sachs International      38,600        10/23/18        AUD       26.44        AUD       974        (4,189 ) 

AstraZeneca PLC

    Barclays Bank PLC      129,800        10/23/18        GBP       59.96        GBP       7,762        (211,555 ) 

 

 

     3  

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock Enhanced International Dividend Trust (BGY)

(Percentages shown are based on Net Assets)

 

OTC Options Written (continued)

 

Description    Counterparty    Number of
Contracts		      Expiration
Date		     

Exercise

Price

     

Notional

Amount (000)

      Value  

Call

                      

Deutsche Post AG, Registered Shares

    Morgan Stanley & Co. International PLC      218,000        10/23/18        EUR     $ 31.97        EUR       6,675      $ (26,354 ) 

Far EasTone Telecommunications Co. Ltd.

    Morgan Stanley & Co. International PLC      258,000        10/23/18        USD       72.58        USD       18,782        (9,520 ) 

TELUS Corp.

    Morgan Stanley & Co. International PLC      46,100        10/23/18        CAD       48.08        CAD       2,195        (12,968 ) 

ANTA Sports Products Ltd.

    JPMorgan Chase Bank N.A.      808,000        10/24/18        HKD       38.63        HKD       30,195        (156,239 ) 

Novartis AG, Registered Shares

    Morgan Stanley & Co. International PLC      6,750        10/24/18        CHF       82.75        CHF       570        (16,924 ) 

Unilever PLC

    Morgan Stanley & Co. International PLC      123,300        10/24/18        GBP       43.30        GBP       5,197        (59,434 ) 

Amcor Ltd.

    Citibank N.A.      624,700        10/26/18        AUD       14.58        AUD       8,540        (11,633 ) 

Diageo PLC

    Deutsche Bank AG      88,950        10/26/18        GBP       27.28        GBP       2,418        (48,254 ) 

Imperial Brands PLC

    Deutsche Bank AG      17,000        10/26/18        GBP       27.77        GBP       454        (6,616 ) 

Kone OYJ, Class B

    Credit Suisse International      69,000        10/26/18        EUR       46.57        EUR       3,172        (86,809 ) 

Sanofi

    Deutsche Bank AG      37,300        10/26/18        EUR       73.41        EUR       2,870        (167,467 ) 

Schneider Electric SE

    Credit Suisse International      18,500        10/26/18        EUR       69.20        EUR       1,279        (30,376 ) 

United Overseas Bank Ltd.

    UBS AG      127,300        10/26/18        SGD       26.82        SGD       3,440        (68,371 ) 

Rogers Communications, Inc., Class B

    Goldman Sachs International      26,000        10/29/18        CAD       69.26        CAD       1,727        (5,677 ) 

TELUS Corp.

    Credit Suisse International      26,300        10/29/18        CAD       48.46        CAD       1,252        (6,222 ) 

TELUS Corp.

    Royal Bank of Canada      41,000        10/29/18        CAD       48.40        CAD       1,952        (10,276 ) 

Novartis AG, Registered Shares

    Goldman Sachs International      81,800        10/30/18        CHF       80.35        CHF       6,910        (365,712 ) 

SGS SA, Registered Shares

    Goldman Sachs International      1,500        10/30/18        CHF       2,569.96        CHF       3,876        (73,471 ) 

Unilever PLC

    Goldman Sachs International      69,000        10/30/18        GBP       42.60        GBP       2,908        (55,847 ) 

Amcor Ltd.

    UBS AG      317,300        10/31/18        AUD       14.15        AUD       4,337        (24,976 ) 

Ansell Ltd.

    Morgan Stanley & Co. International PLC      54,800        10/31/18        AUD       25.21        AUD       1,383        (23,798 ) 

Ansell Ltd.

    Morgan Stanley & Co. International PLC      32,000        10/31/18        AUD       24.94        AUD       807        (18,115 ) 

Diageo PLC

    Credit Suisse International      5,000        10/31/18        GBP       27.07        GBP       136        (3,719 ) 

Far EasTone Telecommunications Co. Ltd.

    Goldman Sachs International      500,000        10/31/18        USD       75.37        USD       36,400        (5,785 ) 

Kone OYJ, Class B

    Morgan Stanley & Co. International PLC      130,300        10/31/18        EUR       46.34        EUR       5,990        (193,557 ) 

Sanofi

    Goldman Sachs International      71,300        10/31/18        EUR       77.19        EUR       5,487        (100,381 ) 

TELUS Corp.

    Morgan Stanley & Co. International PLC      33,400        10/31/18        CAD       48.50        CAD       1,590        (8,077 ) 

Taiwan Semiconductor Manufacturing Co. Ltd.

    JPMorgan Chase Bank N.A.      987,000        10/31/18        USD       260.10        USD       257,163        (261,851 ) 

United Overseas Bank Ltd.

    JPMorgan Chase Bank N.A.      111,000        10/31/18        SGD       27.82        SGD       2,999        (29,227 ) 

AstraZeneca PLC

    Barclays Bank PLC      16,200        11/01/18        GBP       57.00        GBP       969        (72,352 ) 

DBS Group Holdings Ltd.

    Morgan Stanley & Co. International PLC      143,600        11/01/18        SGD       25.05        SGD       3,745        (129,857 ) 

Far EasTone Telecommunications Co. Ltd.

    UBS AG      257,000        11/01/18        USD       76.90        USD       18,710        (1,308 ) 

GlaxoSmithKline PLC

    Barclays Bank PLC      34,100        11/01/18        GBP       15.15        GBP       525        (20,582 ) 

Imperial Brands PLC

    Goldman Sachs International      183,500        11/01/18        GBP       26.50        GBP       4,899        (219,141 ) 

Japan Tobacco, Inc.

    JPMorgan Chase Bank N.A.      103,400        11/01/18        JPY       3,070.42        JPY       306,787        (22,330 ) 

Nestle SA, Registered Shares

    UBS AG      134,500        11/01/18        CHF       82.64        CHF       10,987        (113,257 ) 

Sanofi

    Credit Suisse International      63,900        11/01/18        EUR       76.16        EUR       4,917        (140,408 ) 

Schneider Electric SE

    Morgan Stanley & Co. International PLC      42,100        11/01/18        EUR       70.94        EUR       2,912        (50,480 ) 

Svenska Handelsbanken AB, Class A

    Morgan Stanley & Co. International PLC      421,500        11/01/18        SEK       107.76        SEK       47,242        (263,687 ) 

TELUS Corp.

    Goldman Sachs International      110,700        11/01/18        CAD       48.50        CAD       5,270        (31,710 ) 

Unilever PLC

    Credit Suisse International      72,000        11/01/18        GBP       42.53        GBP       3,035        (50,062 ) 

Rogers Communications, Inc., Class B

    Citibank N.A.      72,300        11/02/18        CAD       67.25        CAD       4,803        (37,055 ) 

TELUS Corp.

    Goldman Sachs International      32,400        11/05/18        CAD       48.00        CAD       1,543        (12,650 ) 

 

 

4   

Schedule of Investments  (unaudited) (continued)

September 30, 2018

    BlackRock Enhanced International Dividend Trust (BGY)

 

OTC Options Written (continued)

 

Description    Counterparty    Number of
Contracts		      Expiration
Date		     

Exercise

Price

     

Notional

Amount (000)

      Value  

Call

                      

Ansell Ltd.

    Citibank N.A.      52,600        11/06/18        AUD     $ 25.75        AUD       1,327      $ (16,193 ) 

Far EasTone Telecommunications Co. Ltd.

    Citibank N.A.      339,000        11/06/18        USD       73.74        USD       24,679        (9,624 ) 

Deutsche Post AG, Registered Shares

    Credit Suisse International      200,000        11/07/18        EUR       31.92        EUR       6,124        (67,187 ) 

Diageo PLC

    Credit Suisse International      41,200        11/07/18        GBP       27.25        GBP       1,120        (27,196 ) 

Diageo PLC

    Goldman Sachs International      26,200        11/07/18        GBP       26.35        GBP       712        (38,820 ) 

Kone OYJ, Class B

    Credit Suisse International      52,000        11/07/18        EUR       47.16        EUR       2,390        (68,402 ) 

Novartis AG, Registered Shares

    Morgan Stanley & Co. International PLC      124,000        11/07/18        CHF       82.25        CHF       10,476        (376,120 ) 

Sonic Healthcare Ltd.

    Citibank N.A.      89,000        11/07/18        AUD       25.27        AUD       2,215        (25,295 ) 

TELUS Corp.

    Goldman Sachs International      46,000        11/08/18        CAD       48.53        CAD       2,190        (15,222 ) 

Schneider Electric SE

    Morgan Stanley & Co. International PLC      29,500        11/09/18        EUR       66.57        EUR       2,040        (121,656 ) 

Rogers Communications, Inc., Class B

    UBS AG      72,200        11/13/18        CAD       68.00        CAD       4,796        (44,057 ) 

ANTA Sports Products Ltd.

    Morgan Stanley & Co. International PLC      308,000        11/14/18        HKD       37.50        HKD       11,510        (106,067 ) 

Kone OYJ, Class B

    UBS AG      23,600        11/14/18        EUR       46.66        EUR       1,085        (39,716 ) 

Ansell Ltd.

    Citibank N.A.      91,900        11/16/18        AUD       25.41        AUD       2,319        (43,425 ) 

British American Tobacco PLC

    Morgan Stanley & Co. International PLC      113,500        11/20/18        GBP       36.69        GBP       4,060        (113,908 ) 

Diageo PLC

    Credit Suisse International      41,200        11/20/18        GBP       27.25        GBP       1,120        (32,383 ) 

Imperial Brands PLC

    Morgan Stanley & Co. International PLC      126,000        11/20/18        GBP       27.53        GBP       3,364        (99,787 ) 

SGS SA, Registered Shares

    UBS AG      500        11/20/18        CHF       2,636.03        CHF       1,292        (13,769 ) 

Sonic Healthcare Ltd.

    Goldman Sachs International      120,000        11/20/18        AUD       26.01        AUD       2,987        (19,560 ) 

Taiwan Semiconductor Manufacturing Co. Ltd.

    Morgan Stanley & Co. International PLC      235,000        11/20/18        USD       270.30        USD       61,229        (41,604 ) 

British American Tobacco PLC

    Morgan Stanley & Co. International PLC      113,500        11/27/18        GBP       36.69        GBP       4,060        (130,446 ) 

Japan Tobacco, Inc.

    JPMorgan Chase Bank N.A.      44,000        11/27/18        JPY       3,007.77        JPY       130,548        (26,331 ) 
                     

 

 

  
                      $ (5,413,986 ) 
                     

 

 

  

 

 

     5  

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock Enhanced International Dividend Trust (BGY)

(Percentages shown are based on Net Assets)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — Unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that Trust has the ability to access

 

  •  

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  •  

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Common Stocks:

                  

Australia

   $ —        $ 58,750,963        $ —        $ 58,750,963  

Belgium

     —          8,213,362          —          8,213,362  

Canada

     73,104,711          —          —          73,104,711  

China

     —          11,350,262          —          11,350,262  

Denmark

     —          12,704,177          —          12,704,177  

Finland

     —          35,158,662          —          35,158,662  

France

     —          48,206,942          —          48,206,942  

Germany

     —          29,263,788          —          29,263,788  

India

     —          10,468,027          —          10,468,027  

Japan

     —          11,001,535          —          11,001,535  

Netherlands

     —          29,881,866          —          29,881,866  

Singapore

     —          20,740,270          —          20,740,270  

Sweden

     —          18,555,790          —          18,555,790  

Switzerland

     —          83,456,972          —          83,456,972  

Taiwan

     —          30,566,562          —          30,566,562  

United Kingdom

     —          165,645,426          —          165,645,426  

United States

     34,822,310          —          —          34,822,310  

 

 

6   

Schedule of Investments  (unaudited) (continued)

September 30, 2018

    BlackRock Enhanced International Dividend Trust (BGY)

 

 

      Level 1        Level 2        Level 3        Total  

Preferred Stocks

   $ —        $ —        $ 4,999,779        $ 4,999,779  

Short-Term Securities

     3,531,919          —          —          3,531,919  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 111,458,940        $ 573,964,604        $ 4,999,779        $ 690,423,323  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Liabilities:

                 

Equity contracts

   $ (537,892 )       $ (5,413,986 )       $ —        $ (5,951,878 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)

Derivative financial instruments are options written, which are shown at value.

 

Transfers between Level 1 and Level 2 were as follows:

 

      Transfers into
Level 1(a)		        Transfers out of
Level 1(a)		        Transfers Into
Level 2(a) 		       Transfers out of
Level 2(a)		  

Assets:

 

Long-Term Investments:

 

Common Stocks

    $ —        $ 17,468,213        $ 17,468,213        $ —  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)

External pricing service used to reflect any significant market movements between the time the Trust valued such foreign securities and the earlier closing of foreign markets.

 

 

 

     7  

Item 2 – Controls and Procedures

 

2(a) –

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock Enhanced International Dividend Trust
By:      /s/ John M. Perlowski                        
     John M. Perlowski
     Chief Executive Officer (principal executive officer) of
     BlackRock Enhanced International Dividend Trust
Date: November 19, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:      /s/ John M. Perlowski                        
     John M. Perlowski
     Chief Executive Officer (principal executive officer) of
     BlackRock Enhanced International Dividend Trust
Date: November 19, 2018
By:      /s/ Neal J. Andrews                          
     Neal J. Andrews
     Chief Financial Officer (principal financial officer) of
     BlackRock Enhanced International Dividend Trust
Date: November 19, 2018