BLACKROCK COMMODITIES INCOME INVESTMENT TRUST PLC - Portfolio Update

BLACKROCK COMMODITIES INCOME INVESTMENT TRUST PLC (LEI: 54930040ALEAVPMMDC31)

All information is at 31 January 2017 and unaudited.

Performance at month end with net income reinvested

One

Three

Six

One

Three

Five

Month

Months

Months

Year

Years

Years

Net asset value

2.2%

8.8%

20.3%

79.8%

5.7%

-10.3%

Share price

1.6%

10.3%

31.9%

84.5%

7.6%

-9.1%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

86.17p

Net asset value cum income*:

87.12p

Share price:

89.13p

Premium to NAV (cum income):

2.3%

Net yield:

5.6%

Gearing - cum income:

4.2%

Total assets^:

£115.2m

Ordinary shares in issue:

118,768,000

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.4%

* Includes net revenue of 0.95p. ^ Includes current year revenue. ** Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2016.

Sector Analysis

% Total Assets

Country Analysis

% Total Assets

Integrated Oil

20.3

Global

49.0

Exploration & Production

18.3

USA

21.5

Diversified Mining

16.9

Canada

9.0

Gold

13.1

Latin America

4.4

Copper

6.9

Africa

3.5

Silver

3.7

Australia

3.2

Distribution

3.5

Europe

2.6

Nickel

2.8

Asia

0.4

Fertilizers

2.1

Net current assets

6.4

Oil Services

1.9

-----

Agriculture Science

1.7

100.0

Diamonds

1.6

=====

Steel

0.8

Net current assets

6.4

-----

100.0

=====

Ten Largest Investments (in % of Total Assets order)

Company

Region of Risk

% Total Assets

Royal Dutch Shell ‘B’

Global

6.1

First Quantum Minerals

Global

6.0

Rio Tinto

Global

5.9

ExxonMobil

Global

5.4

BHP Billiton

Global

4.0

Barrick Gold

Global

3.0

Norilsk Nickel

USA

2.8

ConocoPhillips

USA

2.7

Anadarko Petroleum

USA

2.6

Enbridge Income Fund Trust

Canada

2.6

Commenting on the markets, Olivia Markham and Tom Holl, representing the Investment Manager noted:

The Company’s NAV rose by 2.2% during the month (in GBP terms with income reinvested).

Global markets made gains in January, with the Dow Jones Index crossing the 20,000 barrier for the first time ever. Markets were generally supported by robust economic data such as strong European and Chinese PMI’s.  January also saw the inauguration of the new President of the United States. Since taking office, President Trump has generally reiterated support for the domestic oil and gas industry, approving the construction of the Dakota Access and Keystone XL pipelines on the basis of job creation. The Keystone XL pipeline had been blocked by the previous administration on environmental grounds, with scepticism over the long-term job creation prospects.

In the energy sector, there was little change in oil prices during the month, with Brent gaining +0.7% and WTI falling by -1.9%, to finish the month at $56/bbl and $53/bbl.  The month also saw the first meeting of OPEC and non-OPEC members since the announcement of the co-ordinated cut. Early data and rhetoric from producers has been encouraging, but the cuts will, in our view, need to show up in real-time data before we see oil prices react. Oil prices were also held back by a moderate build in US inventories.

After a difficult December, the mining sector returned to trending upwards in January, buoyed by mined commodity prices remaining at elevated levels and some recording further price gains.  The commodity price strength seen last year has led to a dramatic improvement in free cash flow in the mining sector and companies are now looking to return capital to shareholders. The base metals saw strong performance with copper, aluminium and zinc strengthening +8.5%, +6.5% and +11.5% respectively, however nickel bucked this trend declining -0.7%.

Elsewhere the gold price started the year at $1,160/oz and climbed +4.7% to finish the month at $1,211/oz.  This appeared to be driven by increased safe-haven buying interest perhaps in response to the unpredictability of President Trump’s policies and US dollar weakness on the back of declining treasury yields.

16 February 2017

ENDS

Latest information is available by typing www.blackrock.co.uk/brci on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).  Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.

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