Portfolio Update

BLACKROCK COMMODITIES INCOME INVESTMENT TRUST plc

All information is at 31 December 2016 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

3.0%

12.9%

22.9%

68.0%

-0.2%

-7.3%

Share price

7.2%

16.9%

38.4%

71.7%

-1.5%

-2.8%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

84.60p

Net asset value cum income*:

85.21p

Share price:

87.75p

Premium to NAV (cum income):

3.0%

Net yield:

5.7%

Gearing - cum income:

5.9%

Total assets^^:

£113.1m

Ordinary shares in issue:

118,768,000

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.4%

* Includes net revenue of 0.61p. ^^ 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 2015.

Sector Analysis

% Total Assets

Country Analysis

% Total Assets

Integrated Oil

22.4

Global

48.6

Diversified Mining

17.8

USA

23.7

Exploration & Production

16.8

Canada

8.0

Gold

12.4

Latin America

4.4

Copper

7.2

Africa

3.6

Distribution

3.5

Europe

3.4

Silver

3.4

Australia

2.6

Nickel

3.0

Asia

0.4

Oil Services

2.5

Net current assets

5.3

Fertilizers

1.9

-----

Diamonds

1.6

100.0

Agriculture Science

1.2

=====

Steel

1.1

Industrial Minerals

(0.1)

Net current assets

5.3

-----

100.0

=====

Ten Largest Investments (in % of Total Assets order)

Company

Region of Risk

% Total Assets

Royal Dutch Shell ‘B’

Global

6.6

First Quantum Minerals

Global

6.5

ExxonMobil

Global

6.0

Rio Tinto

Global

4.9

BHP Billiton

Global

3.5

Norilsk Nickel

USA

3.0

Vale

Latin America

2.9

ConocoPhillips

USA

2.9

Anadarko Petroleum

USA

2.8

Barrick Gold

Global

2.7

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

The Company’s NAV rose by 3.0% during the month, bringing the full year 2016 performance to +68.0% (both in GBP terms with net income reinvested).

Performance was mixed across the natural resources sector during the month, with energy displaying positive returns, whilst the mining sector proved to be the laggard.

Data from China was largely positive during the month, with November’s official industrial production rising by 6.2% year-on-year, above the 6.1% that markets had expected. Retail sales reported a 10.8% year-on-year gain, ahead of the 10.2% increase anticipated, whilst fixed-asset investment was in-line with market hopes, rising by 8.3%. One dark spot amongst the data was property sales growth; at 7.9% year-on-year in November it hit its lowest point since December 2015. Despite this supportive economic data, the base metals came under pressure with nickel, copper and zinc declining by -11.0%, -5.0% and -4.9% respectively. This appeared to be driven by continued US dollar strength as the 10-year US Treasury yield extended its climb higher, fuelled by Trump’s pledged stimulus measures.

Elsewhere, gold bullion declined by -1.4%, finishing the month at a price of $1,157/oz. Whilst moves in the underlying gold price continued to be weak, gold equities recovered some of the losses they experienced in November. Within the bulk commodities, coking coal was not immune to the price sell-off as it finished the month -28.9% lower (the coking coal price remains +146.2% higher than it started the year). Those companies more exposed to this came under pressure during the month.

The energy sector was supported by continued positive performance from oil prices in December, as Brent and WTI oil prices gained +12.6% and +8.8% to finish the year at $55/bbl and $54/bbl. By the end of the month, the sector (as measured by the MSCI World Energy Index) had gained +27.8% over 2016, strongly outperforming broader equity markets, whilst Brent and WTI oil prices had risen +51.6% and +44.8% respectively. The sector entered December with positive momentum on the back of OPEC’s announcement at the end of November that it had agreed to adjust production by 1.2 million barrels per day (mbpd), down to a targeted level of 32.5mbpd effective from the 1st January 2017. Following this, OPEC ministers and ministers from 10 other major oil producing countries met in Vienna on the 10th December to discuss non-OPEC production cuts. Oil prices surged as it was announced that non-OPEC countries had agreed to a combined cut of 558kbpd allaying one of the concerns the market had after the deal was initially announced.

Other sector news during December included Donald Trump confirming current chief executive of ExxonMobil, Rex Tillerson, as his choice for US Secretary of State (a man who is perceived as supportive for US oil and gas producers) and M&A activity for UK integrated oil and gas company BP. During a busy month for the company, BP announced it had signed agreements with Kosmos Energy to acquire a 62% stake in Kosmos’ exploration blocks in Mauritania and a 32.5% stake in Kosmos’ exploration blocks off Senegal. The company also announced the acquisition of Woolworths Ltd’s network of Australian gas stations and the approval of its Mad Dog Phase 2 project in the Deepwater Gulf of Mexico.

All data points are in US dollar terms unless otherwise specified.

18 January 2016