Portfolio Update

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

All information is at 28 February 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

-2.7%

2.4%

19.0%

62.0%

-2.1%

-14.5%

Share price

-7.6%

0.7%

16.5%

52.9%

-7.5%

-15.9%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

83.17p

Net asset value cum income*:

84.73p

Share price:

82.38p

Discount to NAV (cum income):

2.8%

Net yield:

6.1%

Gearing - cum income:

3.1%

Total assets^:

£111.7m

Ordinary shares in issue:

118,768,000

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.4%

* Includes net revenue of 1.56p. ^ 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

20.8

Global

47.5

Exploration & Production

18.1

USA

22.0

Diversified Mining

16.0

Canada

8.7

Gold

11.3

Australia

4.5

Copper

7.2

Latin America

3.9

Distribution

3.5

Africa

3.3

Silver

3.5

Europe

2.6

Nickel

2.9

Asia

0.4

Oil Services

2.3

Net current assets

7.1

Fertilizers

2.0

-----

Agriculture Science

1.9

100.0

Diamonds

1.6

=====

Steel

0.9

Iron Ore

0.9

Net current assets

7.1

-----

100.0

=====

Ten Largest Investments

Company

Region of Risk

% Total Assets

Royal Dutch Shell ‘B’

Global

6.6

First Quantum Minerals

Global

6.0

Rio Tinto

Global

5.7

ExxonMobil

Global

5.5

BHP Billiton

Global

3.7

Norilsk Nickel

USA

2.9

Newcrest Mining

Australia

2.8

ConocoPhillips

USA

2.7

Enbridge Income Fund Trust

Canada

2.7

Glencore

Global

2.6

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

The Company’s NAV fell by -2.7% during the month (in GBP terms with income reinvested). Whilst macroeconomic data points remained supportive in February, the natural resources sector came under moderate pressure during the month. The mining sector came under pressure in February as the sector experienced some profit taking which outweighed mined commodities broadly posting positive returns as well as a strong reporting season. Among the mined commodities, nickel was the strongest performing, up +10.4% over the month, on news that the Philippines had ordered the closure of 23 (mostly nickel) mines as part of an environmental crackdown on domestic production. For reference, the Philippines is the largest exporter of nickel ore in the world. Elsewhere, the iron ore (62% fe) price gained +8.6% to finish at $91/tonne, its highest level since August 2014, and a level well above consensus forecasts for the year. The gold price was also up +3.7% over the month, gradually trending higher on the back of increased political and economic uncertainty, notably related to the new US administration.  It should be noted though it was perhaps unusual to see the gold price increase in a month where US yields increased and the dollar strengthened. The mining sector’s year-end reporting season got underway in February, with deleveraging emerging as the key theme as improved commodity prices have allowed companies to significantly improve their balance sheets over the past year. Major diversified miners Rio Tinto and Glencore announced reductions in net debt of -30% over the last 12 months and -48% over the last 18 months respectively. BHP Billiton, Glencore and Rio Tinto also all announced sizeable increases in their dividends less than two years after being forced to cut them. Positively, the capital discipline story remained intact, with limited capex increases announced and management rhetoric still focusing on shareholder returns. Our view is that for now the pain of the recent down-cycle is still too fresh and do not see companies falling back into old habits of poor capital discipline as a near-term risk. In the energy space, oil prices converged to finish the month at $54/bbl, with Brent declining -3.0% and WTI increasing +2.4%.  The energy sector has lagged the broader natural resources sector since the beginning of the year. This appears to have been driven by the rising rig count in the US coupled with increasing US oil imports. Whilst the rig count in the US has begun to rise, we are of the view that the imports currently coming through are a result of ships that set sail before the OPEC agreement came into play and as a result, we expect these to decline in the coming weeks and the oil market to tighten into the second quarter. All data points are in US dollar terms unless otherwise specified.

17 March 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.