Portfolio Update

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

All information is at 31 March 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

-1.5%

-2.0%

10.6%

47.8%

-4.3%

-9.7%

Share price

-6.4%

-12.1%

2.8%

30.7%

-13.3%

-19.2%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

81.57p

Net asset value cum income*:

82.48p

Share price:

76.13p

Discount to NAV (cum income):

7.7%

Net yield:

5.9%

Gearing - cum income:

7.5%

Total assets^:

£112.3m

Ordinary shares in issue:

118,768,000

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.4%

* Includes net revenue of 0.91p. ^ 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

20.4

Global

47.9

Exploration & Production

18.9

USA

20.6

Diversified Mining

18.3

Canada

10.8

Gold

11.0

Latin America

4.6

Copper

8.3

Australia

4.1

Distribution

3.4

Africa

2.9

Oil Services

3.0

Europe

2.4

Silver

3.0

Asia

0.4

Agriculture Science

1.8

Net current assets

6.3

Iron Ore

1.3

-----

Diamonds

1.3

100.0

Fertilizers

1.1

=====

Nickel

0.8

Coal & Uranium

0.8

Steel

0.3

Net current assets

6.3

-----

100.0

=====

Ten Largest Investments

Company

Region of Risk

% Total Assets

First Quantum Minerals

Global

7.0

Royal Dutch Shell ‘B’

Global

6.1

ExxonMobil

Global

5.5

Rio Tinto

Global

4.5

Glencore

Global

3.6

BHP Billiton

Global

3.5

ConocoPhillips

USA

2.8

Newcrest Mining

Australia

2.8

Anadarko Petroleum

USA

2.6

Enbridge Income Fund Trust

Canada

2.5

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

The Company’s NAV fell -1.5% during the month (in GBP terms with dividends reinvested).

Whilst global economic data remained relatively supportive, commodity price performance was lacklustre in general and both of the underlying natural resources sectors posted modestly negative returns.

The mining sector came under pressure in March as mined commodities gave back some of their recent gains. Concern appeared to grow around the potential for monetary tightening in China but economic data from the country continued to be robust. China’s official manufacturing PMI rose to 51.8 in March, for example, up from 51.6 in February and indicating continued expansion. Iron ore (62% fe) fared the worst of the mined commodities, falling by 12.5% to $79.8/tonne on reports of a significant increase in China’s domestic production and inventory increases at the country’s ports. It is worth noting that the iron ore spot price remains meaningfully above analyst consensus for 2017 which remains below $60/tonne. The nickel price also came under pressure, declining by 8.8% to $9,962/tonne. The nickel price has seen considerably volatility this year after Indonesia partially lifted its nickel ore export ban in January and the Philippines ordered the closure of 23 (mostly nickel) mines in February. However, in March, there were encouraging signs that the situation in the Philippines was moving closer to a resolution, which sent the nickel price lower. The gold price was relatively flat on the month, edging down only by 0.8%, despite the US Federal Reserve confirming an interest rate hike. This reflected that a hike had been widely expected and that the commentary surrounding the announcement regarding further hikes in 2017 was interpreted as dovish.

Oil prices were weak in March with Brent declining by 3.5% and WTI falling by 6.4%, to finish the month at $52/bbl and $50/bbl respectively. This appeared to be driven by negative sentiment due to the rising rig count in the US and the subsequent expectations for an increase in US production. We remain confident in our view that the oil market is close to balance and believe that investors have been overly focussed on short-term, and often inaccurate, data out of the US. This view is supported by data from the Energy Information Administration (EIA) that reported a seasonally unusual crude and product inventory draw in the US in March. This suggests that the OPEC coordinated supply cuts are beginning to impact the market.

We saw a number of transactions occur across the energy sector during the month, continuing the theme of asset deals in the market being favoured over corporate level M&A.  Canadian Natural announced it would buy Shell's 60% stake in the Athabasca Oil Sands Project and related infrastructure. Separately, Marathon Oil will sell its 20% stake in the same project to Shell and Canadian Natural. Canadian Natural investors welcomed the deal as it is thought to boost the company’s medium-term cash flow generation. Elsewhere, ConocoPhillips announced a sale of its higher cost Canadian assets to Cenovus. The company will sell its 50% interest in the Foster Creek Christina Lake oil sands partnership, which Cenovus already operates, as well as the majority of its western Canada Deep Basin conventional gas assets.

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

19 April 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.