BlackRock Commodities Income Investment Trust Plc - Portfolio Update

BLACKROCK COMMODITIES INCOME INVESTMENT TRUST plc (LEI:54930040ALEAVPMMDC31)
All information is at 31 December 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	8.4%	8.9%	18.2%	1.8%	15.8%	-3.7%
Share price	3.0%	7.3%	14.4%	-8.2%	5.7%	-10.3%

   

Sources: Datastream, BlackRock

   

At month end

Net asset value – capital only:

81.32p

Net asset value cum income*:

82.40p

Share price:

76.25p

Discount to NAV (cum income):

7.5%

Net yield:

5.2%

Gearing - cum income:

8.6%

Total assets^:

£102.9m

Ordinary shares in issue:

118,768,000

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.4%

* Includes net revenue of 1.08p. ^ 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 2017.

Sector Analysis

% Total  Assets

Country Analysis

% Total  Assets

Diversified Mining

32.0

Global

60.5

Integrated Oil

22.6

Canada

13.6

Exploration & Production

15.2

USA

13.1

Copper

10.5

Latin America

5.9

Gold

8.2

Australia

4.6

Silver

2.7

Europe

2.4

Industrial Minerals

2.5

Africa

1.9

Distribution

2.2

Mali

1.3

Diamonds

2.1

Net current liabilities

(3.3)

Oil Sands

1.9

-----

Steel

1.5

100.0

Industrial Resources

1.1

=====

Oil Services

0.8

Net current liabilities

(3.3)

-----

100.0

=====

Ten Largest Investments

Company

Region of Risk

% Total Assets

First Quantum Minerals

Global

9.5

BHP

Global

7.0

Rio Tinto

Global

7.0

Glencore

Global

6.4

Royal Dutch Shell ‘B’

Global

5.9

Chevron

Global

4.6

Teck Resources

Canada

4.0

Vale - ADS

Latin America

3.9

Exxon Mobil

Global

3.9

Andarko Petroleum

USA

3.1

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

The Company’s NAV increased by 8.4% during the month of December (in GBP terms with income reinvested and net of ongoing charges).

The performance of both the energy and the mining sectors was positive during the final month of 2017. Within the energy sector, the oil price saw further strength as Brent and WTI (‘West Texas International’) increased by 5.0% and 5.3% respectively, finishing the year at $67/bbl and $61/bbl. Geopolitical tensions in the Middle East highlighted the market’s sensitivity to temporary, unexpected outages, against a background where inventory levels are tightening. An explosion hit a pipeline that feeds Libya's Es Sider terminal, causing the country to lose 70,000 to 100,000 barrels a day of production temporarily during the month.

December was a particularly strong month for mining, with the Euromoney Global Mining Constrained Weights Index posting its largest increase since July 2017. Following a sell-off in November, data emerged pointing towards a healthy economic and credit environment in China, which improved sentiment and provided a tailwind for the sector. The Caixin Manufacturing PMI (‘Purchasing Managers’ Index’) reading for December was 51.5, which compares to 50.8 in November. Mined commodity prices rose strongly across the board, rebounding after a weak November. Base metals performed well, with nickel, zinc and copper increasing by 15.0%, 5.0% and 7.0%, respectively. Copper reached its highest price since February 2014, boosted by a tighter market outlook as a result of China curbing copper scrap imports. In addition, the market is now looking ahead to wage negotiations in Chile where contracts expire with 32 unions in 2018, which may lead to supply disruptions. Bulk metal prices also increased, with iron ore rising by 8.0%. The iron ore price was pushed higher by the current low level of steel inventories, which is expected to lead to significant restocking in early 2018. Elsewhere, a number of mining companies held their capital markets days during the month. These reinforced the themes we have seen in the year around capital discipline and returning cash to shareholders, either in the form of cash dividends or share buybacks. Mining companies have, however, started to see the early signs of cost inflation, mainly driven by the increase in the price of oil, and companies modestly increasing sustaining capital expenditure.

All data points in US dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.

17 January 2018

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.

Copyright y 17 PR Newswire