Portfolio Update

BLACKROCK COMMODITIES INCOME INVESTMENT TRUST plc (LEI:54930040ALEAVPMMDC31)
All information is at 31 October 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		-7.3%	-9.1%	-1.4%		6.8%	52.6%		-1.6%
Share price		-8.3%	-10.1%	-5.5%		4.0%	37.5%		-9.3%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only:					78.48p
Net asset value cum income*:					79.49p
Share price:					73.40p
Discount to NAV (cum income):					7.7%
Net yield:					5.4%
Gearing - cum income:					11.2%
Total assets^:					£102.3m
Ordinary shares in issue:					116,126,515
Gearing range (as a % of net assets):					0-20%
Ongoing charges**:					1.4%
* Includes net revenue of 1.01p. ^ 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	30.4		Global	58.3
Integrated Oil	26.3		Canada	14.3
Exploration & Production	13.0		USA	10.3
Copper	9.8		Latin America	5.9
Gold	8.5		Australia	5.9
Industrial Minerals	4.3		Africa	4.3
Diamonds	2.3		Asia	1.3
Steel	1.9		Net current liabilities	(0.3)
Silver	1.8			-----
Distribution	1.0			100.0
Aluminium	1.0			=====
Net current liabilities	(0.3)
	-----
	100.0
	=====

Ten Largest Investments

Company	Region of Risk	% Total Assets
BHP	Global	8.8
First Quantum Minerals*	Global	6.8
Royal Dutch Shell ‘B’	Global	6.7
Rio Tinto	Global	6.4
Vale - ADS	Latin America	4.9
Exxon Mobil	Global	4.8
BP Group	Global	4.5
Chevron	Global	4.3
Teck Resources	Canada	4.1
Glencore	Global	3.8
* 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 decreased by 7.3% during the month of October (in GBP terms).
October was a very challenging month for broader equity markets, with the MSCI World Index down by 7.3% and the VIX volatility index doubling, as concerns around rising interest rates, inflation and tariffs weighed on markets.  Economic data was mixed whilst expectations of future growth were downgraded. US third quarter GDP (Gross Domestic Product) beat expectations at an annualised 3.5% growth rate versus the 3.3% that had been expected. China’s manufacturing PMI (Purchasing Managers’ Index) increased to 50.1, up from 50.0 in September, whilst the Eurozone composite PMI fell to 52.7, the lowest level in 2 years. The IMF (International Monetary Fund) downgraded economic growth expectations for 2018 and 2019 on US-China trade concerns and tightening financial conditions. Geopolitical risk was also elevated based on the aforementioned trade tensions between the US and China, and as concerns over US-Saudi Arabia relations intensified.
Against this macroeconomic backdrop, the oil market became less tight, with WTI (West Texas Intermediate) entering into contango after a period of being in backwardation. This was based on concerns that Iranian sanctions would be less severe than first thought and as Libya oil production reached a year’s high. In addition, the International Energy Agency (IEA) downgraded their global oil demand outlook by 110,000 barrels per day for both 2018 and 2019. On the back of this, the price of Brent and WTI subsequently fell by 11.9% and 13.4%, to finish the month at $75/bbl and $65/bbl respectively. The energy equities followed suit, underperforming world markets during October.
Within the mined commodities, we continued to see physically-traded commodities outperform more financially-traded commodities. The iron ore (62% fe) price finished the month up by 8.6% and the copper price ended down by 3.6% for example. This is a trend we have commented on for several months now and one that suggests to us that physical supply and demand in most mined commodities remains tight. This is also backed up by the declining inventory levels we have seen for most mined commodities. Elsewhere, with the rise in volatility and broader market sell-off, the gold price benefitted from ‘safe-haven’ buying, increasing by 2.0%.
All data points in US dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.
ENDS
26 November 2018
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.