Portfolio Update

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

All information is at 28 February 2018 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

-4.8%

2.2%

1.4%

-3.6%

8.3%

-13.3%

Share price

-3.4%

4.8%

9.1%

-0.5%

6.9%

-11.7%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

76.81p

Net asset value cum income*:

77.62p

Share price:

77.60p

Discount to NAV (cum income):

0.0%

Net yield:

5.2%

Gearing - cum income:

11.0%

Total assets^:

£101.8m

Ordinary shares in issue:

118,716,000

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.4%

* Includes net revenue of 0.81p. ^ 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

34.6

Global

61.8

Integrated Oil

22.4

Canada

12.0

Exploration & Production

12.9

USA

11.3

Gold

8.4

Latin America

4.7

Copper

8.3

Australia

4.4

Industrial Minerals

2.9

Europe

3.4

Diamonds

2.2

Africa

1.8

Oil Sands

1.7

Mali

1.1

Silver

1.7

Net current liabilities

(0.5)

Oil Services

1.7

-----

Steel

1.5

100.0

Distribution

1.1

=====

Industrial Resources

1.1

Net current liabilities

(0.5)

-----

100.0

=====

Ten Largest Investments

Company

Region of Risk

% Total Assets

Rio Tinto

Global

8.6

BHP

Global

7.6

First Quantum Minerals*

Global

7.5

Glencore

Global

6.5

Royal Dutch Shell ‘B’

Global

6.1

Teck Resources

Canada

4.3

Chevron

Global

4.1

BP

Global

3.8

Exxon Mobil

Global

3.5

Vale – ADS

Latin America

3.2

*The holding in First Quantum Minerals includes both an equity holding and a holding in several bonds. Commenting on the markets, Olivia Markham and Tom Holl, representing the Investment Manager noted:

The Company’s NAV declined by 4.8% during the month of February (in GBP terms). The broader equity market sell-off contributed to the portfolio posting negative returns over the month. The return of volatility dominated global equity markets in February, with the MSCI World Index (total return) falling by 4.1% during the month.  Whilst technical selling appeared to be the primary driver, natural resources equities were not immune, with the mining and energy sector, as displayed by the Euromoney Global Mining Index and the MSCI World Energy Index, declining by 4.8% and 9.2% respectively during the month. In the US, increasing inflation expectations raised investor’s concerns that US interest rates may rise more quickly than anticipated. The newly appointed US Federal Reserve Chairman stoked these concerns in his first Federal Open Market Committee meeting as his hawkish tone opened the door to the possibility of four rate hikes in 2018. The mining sector released 2017 full year results in February, with the mining companies enjoying a strong reporting season where we have been encouraged to see management teams consistent in their focus on balance sheet repair with little new capital expenditure announced, and a strong focus of returning cash to shareholders. Whilst companies have noted modest cost inflation, partly linked to the stronger oil prices, profit margins remain strong with commodity prices also increasing. The US announced a review of the impact from steel and aluminium imports with recommendations for new import tariffs to be implemented of 25% on steel and 10% on aluminium. The US imports approximately 30% of its steel consumption, and 90% of its aluminium consumption. We see relatively limited impact on iron ore as the majority of US steel production uses recycled steel. In the base metals space, zinc and copper prices fell by 3.3% and 2.6% respectively, whilst nickel rose by 1.4%. Gold and silver prices fell by 1.7% and 4.6% respectively whilst in bulk commodities the iron ore and coking coal prices rose 10%. Oil prices were also affected by the recent market turmoil, with Brent and WTI (West Texas International) oil prices declining by 2.5% and 5.2%, respectively, finishing the month at $66/bbl and $61/bbl. The physical market, however, continues to look tight. The first quarter in the year is seasonally a period when inventories increase, yet global crude inventories were down by c.1.0% year to date. OPEC oil production fell to a 10-month low in February, as a result of a significant fall in Venezuelan production and strong compliance to the agreed cuts among other OPEC members. In addition, current expectations of US shale production growth may also be overstated. US shale companies posted below consensus 2018 production guidance with increases in shale capital expenditure mainly driven by cost inflation rather than higher activity levels. This tightness in the market was also reflected by the term structure of oil, which remained in backwardation throughout the month, despite the fall in the oil price.  Turning to energy equities, the MSCI World Energy index fell by 9.2% during the month, primarily driven by the recent volatility in equity markets and by the decline in oil prices. Despite these short-term headwinds, we continue to believe that once market confidence is restored, we can see a ‘catch-up’ trade for energy equities, given the underperformance of energy equities relative to the oil price over the last 12 months. All data points in US dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.

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.