BlackRock Health Sciences Trust (BME)

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 811-21702

Name of Fund: BlackRock Health Sciences Trust (BME)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Health Sciences 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: 10/31/2011

Date of reporting period: 07/31/2011

Item 1    –    Schedule of Investments

Schedule of Investments July 31, 2011 (Unaudited)    BlackRock Health Sciences Trust (BME)
   (Percentages shown are based on Net Assets)

 

 

     Shares      Value  

Common Stocks

      

Biotechnology – 13.4%

      

3SBio, Inc. - ADR(a)(b)

      60,600       $ 975,660   

Achillion Pharmaceuticals, Inc.(a)

      27,800         205,998   

Acorda Therapeutics, Inc.(a)(b)

      72,400         2,056,160   

Alexion Pharmaceuticals, Inc.(a)(b)

      37,700         2,141,360   

Amgen, Inc.(a)(b)

      57,500         3,145,250   

Ariad Pharmaceuticals, Inc.(a)(b)

      35,000         416,150   

Arqule, Inc.(a)

      37,200         208,320   

Biogen Idec, Inc.(a)(b)

      32,000         3,259,840   

BioMarin Pharmaceutical, Inc.(a)

      31,800         993,114   

Celgene Corp.(a)(b)

      72,200         4,281,460   

Gilead Sciences, Inc.(a)(b)

      76,560         3,243,082   

Human Genome Sciences, Inc.(a)(b)

      105,700         2,220,757   

Ironwood Pharmaceuticals, Inc.(a)(b)

      34,200         511,290   

Momenta Pharmaceuticals, Inc.(a)(b)

      50,400         890,064   

NPS Pharmaceuticals, Inc.(a)(b)

      71,800         693,588   

Rigel Pharmaceuticals, Inc.(a)

      15,100         131,219   

Synta Pharmaceuticals Corp.(a)(b)

      134,400         627,648   

United Therapeutics Corp.(a)(b)

      20,200         1,159,076   

Vertex Pharmaceuticals, Inc.(a)(b)

      31,900         1,654,334   
     

 

 

  
        28,814,370   
     

 

 

  

Diversified Consumer Services – 0.2%

      

Stewart Enterprises, Inc., Class A

      68,700         477,465   
     

 

 

  

Electronic Equipment, Instruments & Components – 0.7%

      

Agilent Technologies, Inc.(a)(b)

      33,300         1,403,928   
     

 

 

  

Health Care Equipment & Supplies – 19.9%

      

Baxter International, Inc.(b)

      101,000         5,875,170   

China Kanghui Holdings - ADR(a)

      8,400         183,036   

China Medical Technologies, Inc. - ADR(a)(c)

      28,400         188,008   

CONMED Corp.(a)(b)

      25,800         670,800   

The Cooper Cos., Inc.(b)

      51,000         3,900,990   

Covidien Plc(b)

      66,200         3,362,298   

CR Bard, Inc.(b)

      13,300         1,312,444   

DENTSPLY International, Inc.(b)

      42,400         1,606,536   

DiaSorin SpA

      25,200         1,245,669   

GN Store Nord A/S

      58,700         531,239   

Haemonetics Corp.(a)(b)(c)

      24,300         1,591,650   

Hill-Rom Holdings, Inc.

      51,200         1,909,248   

Hologic, Inc.(a)(b)

      216,400         4,018,548   

Integra LifeSciences Holdings Corp.(a)(b)

      41,000         1,847,870   

Masimo Corp.

      32,100         891,738   

Medtronic, Inc.(b)

      59,500         2,144,975   

Mindray Medical International Ltd. - ADR(b)(c)

      60,700         1,643,756   

Natus Medical, Inc.(a)(c)

      31,900         367,807   

Nobel Biocare Holding AG(a)

      16,800         321,389   

Sirona Dental Systems, Inc.(a)

      10,300         520,974   

Smith & Nephew Plc

      77,800         818,410   

St. Jude Medical, Inc.(b)

      67,900         3,157,350   

Straumann Holding AG

      800         182,208   

Stryker Corp.(b)

      39,700         2,157,298   

Teleflex, Inc.

      9,000         542,070   

Wright Medical Group, Inc.(a)

      57,800         903,992   

Zimmer Holdings, Inc.(a)(b)

      17,500         1,050,350   
     

 

 

  
        42,945,823   
     

 

 

  

Health Care Providers & Services – 28.7%

      

Aetna, Inc.(b)

      141,700         5,879,133   

AmerisourceBergen Corp.(b)

      100,200         3,838,662   

Cardinal Health, Inc.(b)

      126,600         5,540,016   

CIGNA Corp.(b)

      23,100         1,149,687   

DaVita, Inc.(a)

      60,900         5,087,586   

Express Scripts, Inc.(a)(b)

      43,360         2,352,714   

Fleury SA

      53,500         734,791   

Fresenius Medical Care AG & Co. KGaA

      77,400         5,940,237   

Henry Schein, Inc.(a)

      70,200         4,665,492   

Humana, Inc.(b)

      24,400         1,819,752   

Laboratory Corp. of America Holdings(a)(b)

      46,100         4,184,036   

McKesson Corp.(b)

      54,600         4,429,152   

Medco Health Solutions, Inc.(a)(b)

      87,200         5,483,136   

Patterson Cos., Inc.

      16,800         518,112   

Sinopharm Group Co. Ltd., H Shares

      252,700         735,786   

Tenet Healthcare Corp.(a)

      259,600         1,443,376   

UnitedHealth Group, Inc.(b)

      135,300         6,714,939   

WellPoint, Inc.(b)

      17,300         1,168,615   
     

 

 

  
        61,685,222   
     

 

 

  

Life Sciences Tools & Services – 3.6%

      

Life Technologies Corp.(a)(b)

      60,200         2,710,806   

Mettler-Toledo International, Inc.(a)(b)

      20,700         3,204,567   

ShangPharma Corp. - ADR(a)

      27,300         322,140   

Thermo Fisher Scientific, Inc.(a)(b)

      26,400         1,586,376   
     

 

 

  
        7,823,889   
     

 

 

  

Machinery – 1.3%

      

Pall Corp.(b)

      55,900         2,771,522   
     

 

 

  

Personal Products – 0.2%

      

Synutra International, Inc.(a)(c)

      49,300         394,400   
     

 

 

  

Pharmaceuticals – 22.8%

      

Abbott Laboratories(b)

      50,500         2,591,660   

Allergan, Inc.

      77,500         6,301,525   

Auxilium Pharmaceuticals, Inc.(a)

      26,000         487,240   

Bristol-Myers Squibb Co.(b)

      152,900         4,382,114   

Elan Corp. Plc - ADR(a)(b)

      102,200         1,130,332   

Eli Lilly & Co.

      35,100         1,344,330   

Forest Laboratories, Inc.(a)(b)

      56,800         2,105,008   

GlaxoSmithKline Plc

      34,500         769,179   

GlaxoSmithKline Plc - ADR

      12,300         546,366   

Hospira, Inc.(a)(b)

      47,300         2,417,976   

Johnson & Johnson

      73,070         4,734,205   

Merck & Co., Inc.(b)

      124,500         4,249,185   

Merck KGaA

      17,200         1,835,694   

Par Pharmaceutical Cos., Inc.(a)(b)

      32,200         1,042,958   

Pfizer, Inc.(b)

      320,700         6,170,268   

Roche Holding AG

      16,500         2,960,857   

Shire Plc(b)

      19,600         2,038,400   

Watson Pharmaceuticals, Inc.(a)(b)

      59,100         3,967,381   
     

 

 

  
        49,074,678   
     

 

 

  

Total Long-Term Investments
(Cost – $177,749,293) – 90.8%

         195,391,297   
     

 

 

  
     Shares/
Beneficial
Interest		         

Short-Term Securities

      

BlackRock Liquidity Funds, TempFund, Institutional Class,

      

0.06%(d)(e)

      19,891,900         19,891,900   

BlackRock Liquidity Series, LLC Money Market Series,

      

0.09%(d)(e)(f)

    $ 1,276,125         1,276,125   
     

 

 

  

Total Short-Term Securities
(Cost – $21,168,025) – 9.8%

         21,168,025   
     

 

 

  

Total Investments Before Outstanding Options Written
(Cost – $198,917,318*) – 100.6%

         216,559,322   
     

 

 

  

 

         JULY 31, 2011   1

Schedule of Investments (continued)    BlackRock Health Sciences Trust (BME)
   (Percentages shown are based on Net Assets)

 

     Contracts      Value  

Options Written

      

Exchange-Traded Call Options Written – (0.5)%

      

3SBio, Inc. - ADR:

      

Strike Price USD 17.50, Expires 8/22/11

      90       $ (2,475 ) 

Strike Price USD 18, Expires 8/22/11

      125         (2,498 ) 

Abbott Laboratories:

      

Strike Price USD 53.75, Expires 8/12/11

      150         (651 ) 

Strike Price USD 52.50, Expires 8/22/11

      25         (788 ) 

Acorda Therapeutics, Inc.:

      

Strike Price USD 33, Expires 8/22/11

      130         (5,200 ) 

Strike Price USD 34, Expires 9/19/11

      120         (5,400 ) 

Aetna, Inc.:

      

Strike Price USD 45, Expires 8/22/11

      320         (5,600 ) 

Strike Price USD 44, Expires 9/19/11

      150         (12,300 ) 

Agilent Technologies, Inc., Strike Price USD 52.50, Expires 8/22/11

      100         (450 ) 

Alexion Pharmaceuticals, Inc., Strike Price USD 47.50, Expires 8/22/11

      120         (113,400 ) 

AmerisourceBergen Corp.:

      

Strike Price USD 39, Expires 8/22/11

      500         (36,250 ) 

Strike Price USD 42, Expires 8/22/11

      320         (3,200 ) 

Amgen, Inc., Strike Price USD 57.50, Expires 8/22/11

      200         (6,900 ) 

Ariad Pharmaceuticals, Inc., Strike Price USD 14, Expires 9/19/11

      55         (1,925 ) 

Baxter International, Inc.:

      

Strike Price USD 59, Expires 8/22/11

      155         (12,475 ) 

Strike Price USD 62.50, Expires 11/21/11

      190         (21,375 ) 

Biogen Idec, Inc.:

      

Strike Price USD 100, Expires 8/22/11

      40         (17,000 ) 

Strike Price USD 105, Expires 8/22/11

      65         (12,675 ) 

Bristol-Myers Squibb Co.:

      

Strike Price USD 28.10, Expires 8/08/11

      255         (18,236 ) 

Strike Price USD 28, Expires 8/22/11

      255         (25,245 ) 

Strike Price USD 29, Expires 8/22/11

      100         (3,900 ) 

Cardinal Health, Inc.:

      

Strike Price USD 45, Expires 8/22/11

      120         (8,100 ) 

Strike Price USD 47, Expires 8/22/11

      300         (6,000 ) 

Celgene Corp., Strike Price USD 62.50, Expires 8/22/11

      210         (8,085 ) 

CIGNA Corp., Strike Price USD 55, Expires 9/19/11

      75         (6,038 ) 

CONMED Corp., Strike Price USD 27.50, Expires 8/22/11

      85         (1,389 ) 

The Cooper Cos., Inc., Strike Price USD 85, Expires 11/21/11

      170         (27,625 ) 

Covidien Plc:

      

Strike Price USD 55, Expires 8/22/11

      100         (1,500 ) 

Strike Price USD 52.50, Expires 9/19/11

      249         (28,635 ) 

CR Bard, Inc., Strike Price USD 115, Expires 9/19/11

      45         (1,125 ) 

DENTSPLY International, Inc., Strike Price USD 40, Expires 8/22/11

      140         (2,450 ) 

Elan Corp. Plc - ADR:

      

Strike Price USD 12, Expires 8/22/11

      100         (2,250 ) 

Strike Price USD 13, Expires 8/22/11

      235         (1,763 ) 

Express Scripts, Inc., Strike Price USD 60, Expires 8/22/11

      140         (1,260 ) 

Forest Laboratories, Inc.:

      

Strike Price USD 40, Expires 8/22/11

      50         (625 ) 

Strike Price USD 42, Expires 8/22/11

      150         (750 ) 

Gilead Sciences, Inc.:

      

Strike Price USD 40, Expires 8/22/11

      120         (33,300 ) 

Strike Price USD 44, Expires 9/19/11

      130         (17,745 ) 

Haemonetics Corp., Strike Price USD 70, Expires 9/19/11

      37         (7,030 ) 

Hologic, Inc., Strike Price USD 21, Expires 9/19/11

      715         (14,300 ) 

Hospira, Inc., Strike Price USD 55, Expires 9/19/11

      150         (6,000 ) 

Human Genome Sciences, Inc.:

      

Strike Price USD 29, Expires 8/22/11

      210         (840 ) 

Strike Price USD 26, Expires 9/19/11

      120         (2,940 ) 

Humana, Inc., Strike Price USD 80, Expires 8/22/11

      78         (4,875 ) 

Integra LifeSciences Holdings Corp., Strike Price USD 50, Expires 8/22/11

      135         (2,363 ) 

Ironwood Pharmaceuticals, Inc., Strike Price USD 17.50, Expires 11/21/11

      100         (5,000 ) 

Laboratory Corp. of America Holdings:

      

Strike Price USD 97.50, Expires 8/22/11

      30         (750 ) 

Strike Price USD 100, Expires 8/22/11

      120         (1,500 ) 

Life Technologies Corp., Strike Price USD 55, Expires 8/22/11

      190         (1,900 ) 

McKesson Corp.:

      

Strike Price USD 87.50, Expires 8/22/11

      3         (45 ) 

Strike Price USD 85, Expires 11/21/11

      180         (39,150 ) 

Medco Health Solutions, Inc.:

      

Strike Price USD 64, Expires 8/22/11

      436         (47,446 ) 

Strike Price USD 57.50, Expires 9/19/11

      300         (171,000 ) 

Medtronic, Inc., Strike Price USD 39, Expires 8/22/11

      190         (1,710 ) 

Merck & Co., Inc.:

      

Strike Price USD 37, Expires 8/22/11

      250         (875 ) 

Strike Price USD 36, Expires 8/22/11

      100         (797 ) 

Mettler-Toledo International, Inc.:

      

Strike Price USD 175, Expires 8/22/11

      35         (1,050 ) 

Strike Price USD 170, Expires 8/22/11

      35         (2,800 ) 

Mindray Medical International Ltd. - ADR, Strike Price USD 30, Expires 8/22/11

      180         (5,400 ) 

Momenta Pharmaceuticals, Inc.:

      

Strike Price USD 21, Expires 8/22/11

      80         (1,000 ) 

Strike Price USD 21, Expires 9/19/11

      80         (4,600 ) 

NPS Pharmaceuticals, Inc., Strike Price USD 10, Expires 8/22/11

      140         (5,250 ) 

Pall Corp., Strike Price USD 55, Expires 9/19/11

      185         (9,250 ) 

Par Pharmaceutical Cos., Inc., Strike Price USD 35, Expires 8/22/11

      120         (3,000 ) 

Pfizer, Inc.:

      

Strike Price USD 21, Expires 8/22/11

      820         (3,690 ) 

Strike Price USD 21, Expires 11/21/11

      250         (7,500 ) 

Shire Plc, Strike Price USD 95, Expires 8/22/11

      35         (32,724 ) 

St. Jude Medical, Inc.:

      

Strike Price USD 47.50, Expires 8/22/11

      65         (5,525 ) 

Strike Price USD 50, Expires 8/22/11

      160         (3,200 ) 

 

2        JULY 31, 2011    

Schedule of Investments (continued)    BlackRock Health Sciences Trust (BME)
   (Percentages shown are based on Net Assets)

 

     Contracts      Value  

Options Written

      

Exchange-Traded Call Options Written (concluded)

      

Stryker Corp.:

      

Strike Price USD 60, Expires 8/22/11

      110       $ (1,100 ) 

Strike Price USD 60, Expires 9/19/11

      75         (2,062 ) 

Synta Pharmaceuticals Corp., Strike Price USD 5, Expires 8/22/11

      131         (1,965 ) 

Thermo Fisher Scientific, Inc., Strike Price USD 65, Expires 8/22/11

      90         (2,025 ) 

United Therapeutics Corp., Strike Price USD 65, Expires 9/19/11

      65         (13,812 ) 

UnitedHealth Group, Inc.:

      

Strike Price USD 50, Expires 8/22/11

      135         (16,200 ) 

Strike Price USD 53, Expires 8/22/11

      405         (11,509 ) 

Strike Price USD 55, Expires 8/22/11

      50         (500 ) 

Vertex Pharmaceuticals, Inc., Strike Price USD 52.50, Expires 8/22/11

      75         (13,312 ) 

Watson Pharmaceuticals, Inc., Strike Price USD 70, Expires 8/22/11

      215         (12,900 ) 

Wellpoint, Inc., Strike Price USD 82.50, Expires 8/22/11

      50         (250 ) 

Zimmer Holdings, Inc., Strike Price USD 62.50, Expires 8/22/11

      85         (5,022 ) 
     

 

 

  

Total Exchange-Traded Call Options Written

         (930,750 ) 
     

 

 

  

Exchange-Traded Put Options Written – (0.0)%

      

AmerisourceBergen Corp., Strike Price USD 38, Expires 8/22/11

      284         (28,400 ) 
     

 

 

  

Over-the-Counter Call Options Written – (0.1)%

      

Allergan, Inc.:

      

Strike Price USD 82.17, Expires 8/12/11, Broker Deutsche Bank Securities Corp.

      13,500         (15,916 ) 

Strike Price USD 84.39, Expires 9/12/11, Broker Deutsche Bank Securities Corp.

      12,000         (17,282 ) 

Biomarin Pharmaceutical, Inc., Strike Price USD 32.11, Expires 9/22/11, Broker Deutsche Bank Securities Corp.

      11,000         (17,833 ) 

Celgene Corp., Strike Price USD 60.44, Expires 9/14/11, Broker Goldman Sachs & Co.

      3,000         (5,440 ) 

Davita, Inc., Strike Price USD 84.41, Expires 8/08/11, Broker Credit Suisse First Boston

      20,000         (16,176 ) 

DiaSorin SpA, Strike Price EUR 33.49, Expires 9/06/11, Broker Citigroup Global Markets, Inc.

      8,300         (17,479 ) 

Eli Lilly & Co., Strike Price USD 38.45, Expires 9/08/11, Broker Deutsche Bank Securities Corp.

      11,500         (8,733 ) 

Fleury SA, Strike Price BRL 23.53, Expires 8/04/11, Broker Citigroup Global Markets, Inc.

      16,000         (120 ) 

Fresenius Medical Care AG & Co. KGaA, Strike Price EUR 53.06, Expires 9/06/11, Broker Societe General Securities Corp.

      28,500         (65,167 ) 

GlaxoSmithKline Plc, Strike Price GBP 13.66, Expires 8/17/11, Broker Citigroup Global Markets, Inc.

      11,000         (2,669 ) 

GN Store Nord A/S, Strike Price DKK 49.24, Expires 9/13/11, Broker UBS Securities LLC

      20,000         (3,453 ) 

Henry Schein, Inc., Strike Price USD 73.82, Expires 9/09/11, Broker Deutsche Bank Securities Corp.

      23,000         (8,022 ) 

Hill-Rom Holdings, Inc.:

      

Strike Price USD 46.92, Expires 8/29/11, Broker UBS Securities LLC

      8,000         (681 ) 

Strike Price USD 45.43, Expires 9/12/11, Broker Morgan Stanley & Co., Inc.

      9,000         (2,872 ) 

Johnson & Johnson, Strike Price USD 67.54, Expires 8/25/11, Broker Morgan Stanley & Co., Inc.

      24,000         (4,337 ) 

Masimo Corp., Strike Price USD 31.38, Expires 8/08/11, Broker Morgan Stanley & Co., Inc.

      10,500         (9 ) 

Merck & Co., Inc., Strike Price USD 36.75, Expires 8/05/11, Broker Morgan Stanley & Co., Inc.

      6,000         (10 ) 

Merck KGaA:

      

Strike Price EUR 74.58, Expires 8/03/11, Broker UBS Securities LLC

      4,300         (2,628 ) 

Strike Price EUR 77.74, Expires 9/13/11, Broker Citigroup Global Markets, Inc.

      2,000         (2,240 ) 

Roche Holding AG, Strike Price CHF 137.29, Expires 9/06/11, Broker UBS Securities LLC

      4,500         (28,656 ) 

Shire Plc, Strike Price USD 100.89, Expires 9/09/11, Broker Deutsche Bank Securities Corp.

      3,000         (15,796 ) 

Smith & Nephew Plc, Strike Price GBP 6.61, Expires 9/13/11, Broker Societe General Securities Corp.

      25,000         (4,247 ) 

Stewart Enterprises, Inc., Class A, Strike Price USD 6.86, Expires 8/15/11, Broker Barclays Capital, Inc.

      22,000         (6,672 ) 

Synutra International, Inc., Strike Price USD 10.10, Expires 8/15/11, Broker Barclays Capital, Inc.

      16,500         (309 ) 

Tenet Healthcare Corp., Strike Price USD 6.26, Expires 8/29/11, Broker Morgan Stanley & Co., Inc.

      85,500         (11,270 ) 

Wright Medical Group, Inc., Strike Price USD 15.59, Expires 8/25/11, Broker Banc of America Securities

      22,000         (14,757 ) 
     

 

 

  

Total Over-the-Counter Call Options Written

         (272,774 ) 
     

 

 

  

Total Options Written (Premiums Received – $1,912,287) – (0.6)%

         (1,231,924 ) 
     

 

 

  

Total Investments Net of Outstanding Options Written – 100.0%

         215,327,398   

Other Assets Less Liabilities – 0.0%

         17,038   
     

 

 

  

Net Assets – 100.0%

       $ 215,344,436   
     

 

 

  

 

         JULY 31, 2011   3

Schedule of Investments (continued)    BlackRock Health Sciences Trust (BME)
  

 

 

* The cost and unrealized appreciation (depreciation) of investments as of July 31, 2011 as computed for federal income tax purposes, were as follows:

 

Aggregate cost

    $ 201,334,633   
  

 

 

  

Gross unrealized appreciation

    $ 22,245,827   

Gross unrealized depreciation

      (7,021,138 ) 
  

 

 

  

Net unrealized appreciation

    $ 15,224,689   
  

 

 

  

 

(a) Non-income producing security.

 

(b) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(c) Security, or a portion of security, is on loan.

 

(d) Represents the current yield as of report date.

 

(e) Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate

    Shares/
Beneficial Interest
Held at
October 31,
2010		      Net Activity      Shares/
Beneficial  Interest
Held at
July  31,
2011		      Realized
Gain		      Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

      14,067,561         5,824,339         19,891,900       $ 128       $ 10,207   

BlackRock Liquidity Series, LLC Money Market Series

      –       $ 1,276,125       $ 1,276,125         –       $ 11,249   

 

(f) Security purchased with the cash collateral from securities loans.

 

•  

Foreign currency exchange contracts as of July 31, 2011 were as follows:

 

Currency

Purchased

     

Currency

Sold

     

Counterparty

    Settlement
Date		      Unrealized
Appreciation		  

CHF

      378,000       USD      471,151       Citigroup Global Markets, Inc.      8/02/11       $ 9,124   

USD

      5,411       DKK      28,000       Deutsche Bank Securities Corp.      8/02/11         10   

USD

      5,518       HKD      43,000       UBS Securities LLC      8/02/11         1   

USD

      97,898       EUR      68,000       Deutsche Bank Securities Corp.      8/03/11         195   
                 

 

 

  

Total

  

                $ 9,330   
                 

 

 

  

 

•  

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

 

•  

Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – price quotations in active markets/exchanges for identical assets and liabilities

 

  •  

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 the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report. The following tables summarize the inputs used as of July 31, 2011 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

 

Valuation Inputs

    Level 1      Level 2      Level 3      Total  

Assets:

            

Investments:

            

Long-Term Investments:

            

Common Stocks:

            

Biotechnology

    $ 28,814,370         –         –       $ 28,814,370   

Diversified Consumer Services

      477,465         –         –         477,465   

Electronic Equipment, Instruments & Components

      1,403,928         –         –         1,403,928   

Health Care Equipment & Supplies

      39,846,908       $ 3,098,915         –         42,945,823   

Health Care Providers & Services

      55,009,199         6,676,023         –         61,685,222   

Life Sciences Tools & Services

      7,823,889         –         –         7,823,889   

Machinery

      2,771,522         –         –         2,771,522   

Personal Products

      394,400         –         –         394,400   

Pharmaceuticals

      43,508,948         5,565,730         –         49,074,678   

Short-Term Securities

      19,891,900         1,276,125         –         21,168,025   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 199,942,529       $ 16,616,793         –       $ 216,559,322   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

4        JULY 31, 2011    

Schedule of Investments (concluded)    BlackRock Health Sciences Trust (BME)
  

 

Valuation Inputs

    Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments1

          

Assets:

          

Foreign currency exchange contracts

    $ 9,330        –        –       $ 9,330   

Liabilities:

          

Equity contracts

      (859,128 )    $ (372,796 )      –         (1,231,924 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $ (849,798 )    $ (372,796 )      –       $ (1,222,594 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

 

1 

Derivative financial instruments are foreign currency exchange contracts and options. Foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

 

         JULY 31, 2011   5

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 Health Sciences Trust    
By:  

/s/ John M. Perlowski

    
  John M. Perlowski    
  Chief Executive Officer (principal executive officer) of BlackRock Health Sciences Trust
Date: September 26, 2011  

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 Health Sciences Trust
Date: September 26, 2011  
By:  

/s/ Neal J. Andrews

    
  Neal J. Andrews    
  Chief Financial Officer (principal financial officer) of BlackRock Health Sciences Trust
Date: September 26, 2011