Portfolio Update
| BLACKROCK COMMODITIES INCOME INVESTMENT TRUST plc | ||||||||||||||||||
| All information is at 30 September 2015 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 | -7.0% | -23.0% | -28.4% | -39.9% | -42.0% | -41.7% | ||||||||||||
| Share price | -6.1% | -26.2% | -30.5% | -41.4% | -42.8% | -42.8% | ||||||||||||
| Sources: Datastream, BlackRock | ||||||||||||||||||
| At month end | ||||||||||||||||||
| Net asset value – capital only: | 56.97p | |||||||||||||||||
| Net asset value cum income*: | 57.60p | |||||||||||||||||
| Share price: | 57.25p | |||||||||||||||||
| Discount to NAV (cum income): | 0.6% | |||||||||||||||||
| Net yield: | 10.5% | |||||||||||||||||
| Gearing - cum income: | 1.7% | |||||||||||||||||
| Total assets^^: | £67.8m | |||||||||||||||||
| Ordinary shares in issue: | 115,568,000 | |||||||||||||||||
| Gearing range (as a % of net assets): | 0-20% | |||||||||||||||||
| Ongoing charges**: | 1.5% | |||||||||||||||||
| * Includes net revenue of 0.63p. ^^ 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 2014. |
||||||||||||||||||
| Sector Analysis | % Total Assets | Country Analysis | % Total Assets | |||||||||||||||
| Integrated Oil | 35.0 | Global | 43.5 | |||||||||||||||
| Diversified | 17.8 | USA | 22.6 | |||||||||||||||
| Exploration & Production | 14.7 | Canada | 12.4 | |||||||||||||||
| Copper | 9.3 | Europe | 9.4 | |||||||||||||||
| Distribution | 5.1 | Africa | 4.5 | |||||||||||||||
| Gold | 5.0 | Latin America | 3.0 | |||||||||||||||
| Nickel | 3.0 | Australia | 1.8 | |||||||||||||||
| Fertilizers | 2.4 | Asia | 1.7 | |||||||||||||||
| Silver | 2.3 | China | 1.0 | |||||||||||||||
| Diamonds | 1.9 | Net current assets | 0.1 | |||||||||||||||
| Oil services | 1.7 | ----- | ||||||||||||||||
| Coal | 1.0 | 100.0 | ||||||||||||||||
| Oil Sands | 0.7 | ===== | ||||||||||||||||
| Net Current assets | 0.1 | |||||||||||||||||
| ----- | ||||||||||||||||||
| 100.0 | ||||||||||||||||||
| ===== | ||||||||||||||||||
| Ten Largest Equity Investments (in % of Total Assets order) | ||||||||||||||||||
| Company | Region of Risk | % Total Assets | ||||||||||||||||
| BHP Billiton | Global | 7.0 | ||||||||||||||||
| ExxonMobil | Global | 5.8 | ||||||||||||||||
| Rio Tinto | Global | 5.5 | ||||||||||||||||
| First Quantum Minerals | Global | 5.2 | ||||||||||||||||
| Enbridge Income Fund Trust | Canada | 5.1 | ||||||||||||||||
| Royal Dutch Shell | Global | 4.8 | ||||||||||||||||
| Chevron | Global | 4.7 | ||||||||||||||||
| BP | Global | 4.6 | ||||||||||||||||
| ConocoPhillips | USA | 4.4 | ||||||||||||||||
| Statoil | Europe | 4.1 | ||||||||||||||||
| Commenting on the markets, Olivia Markham and Tom Holl, representing the Investment Manager noted: |
| September saw a continuation of torrid market conditions across commodity equities as well as softer, and more volatile, equity markets in general. |
| A number of key mining commodities actually held up relatively well with copper and iron ore both flat during the month. However concerns over the strength of the Chinese economy persisted with the Manufacturing PMI coming in at 47.2, the lowest reading since March 2009, and data released for August showed that fixed-asset investment in China had increased at its slowest pace in 15 years. Such data points contributed to a surge in negative sentiment towards the sector, and the mining index (in GBP) closed the month down by approximately 10%. |
| Energy share performance was slightly better, declining by 6% (in GBP) in the month, driven by a fall in the oil price of 3.7% for Brent and 8.4% for WTI. The key reason behind this oil price fall was the fear of supply increases from Iran following the agreement to lift sanctions. Although the market was focused on this possible source of supply increase, we are just as interested in the path of US production, which following almost a year of lower oil prices, is starting to show signs of rolling-over. This was echoed by a number of CEOs, presenting at a recent energy conference, who urged investors to focus on the medium-term and that the current oil price is highly unlikely to be enough to incentivise investment in projects to meet future demand. Demand is less of a concern at the moment on the oil side; in fact the International Energy Agency now forecast 2015 demand growth to be 1.7 million barrels per day (approximately 2%). |
| In the portfolio, we added to a mid-cap Canadian gold company because the valuation looked attractive, and with the FED pushing out expectations for a rate rise, the outlook for gold moderately improved. |
| 23 October 2015 |
| 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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