Portfolio Update

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

All information is at 31 August 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

-5.8%

-4.5%

10.1%

11.6%

60.5%

4.1%

Share price

-5.4%

-2.5%

3.3%

12.7%

53.6%

-0.9%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

82.05p

Net asset value cum income*:

83.33p

Share price:

78.20p

Discount to NAV (cum income):

6.2%

Net yield:

5.1%

Gearing - cum income:

11.0%

Total assets^:

£107.3m

Ordinary shares in issue:

116,229,000

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.4%

* Includes net revenue of 1.28p. ^ 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

30.1

Global

59.0

Integrated Oil

25.7

Canada

16.3

Exploration & Production

16.3

USA

11.2

Copper

8.4

Latin America

5.2

Gold

8.2

Australia

3.9

Industrial Minerals

4.0

Africa

3.5

Diamonds

2.2

Asia

1.1

Silver

2.0

Net current liabilities

(0.2)

Steel

1.3

-----

Distribution

1.1

100.0

Oil Services

0.9

=====

Net Current Liabilities

(0.2)

----- 100.0 =====

Ten Largest Investments

Company

Region of Risk

% Total Assets

BHP

Global

8.8

Royal Dutch Shell ‘B’

Global

6.4

First Quantum Minerals*

Global

6.1

Rio Tinto

Global

5.9

Glencore

Global

4.9

Exxon Mobil

Global

4.5

Chevron

Global

4.3

Teck Resources

Canada

4.3

BP

Global

4.1

Vale - ADS

Latin America

4.0

* 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 5.8% during the month of August (in Sterling terms). At a macroeconomic level, continued noise around trade wars, weakening data out of China and Emerging Markets volatility weighed on the commodity complex generally. During the month, the US announced sanctions on Turkey, with the country experiencing currency weakness and accelerating inflation levels. This weakness rippled through global currency markets, spilling into other Emerging Markets, including Argentina and Brazil.  Mined commodity prices were impacted largely on the back of continued US Dollar strength, reiterating that the inverse relationship between metals and the US Dollar remains true. However, the commodity price movements seemed to be disproportionate given that we are in an environment of very few supply additions and physical markets remain reasonably tight.  Within the base metals, copper, nickel and zinc prices fell by 5.0%, 8.8% and 8.0% respectively. For the precious metals, gold, silver and platinum prices declined by 2.0%, 6.7% and 4.7% respectively. The fact that gold declined during the month points to the movements also being very US Dollar related, as mining and precious metals both selling off doesn’t signal a true risk-off trade. (Commodity price returns are stated in US Dollars). In the energy sector, the oil price was relatively robust, reflecting constructive underlying fundamentals; Brent increased by 3.4%, whilst WTI (West Texas Intermediate) was broadly flat during August. Further evidence of market tightness was visible as the Brent forward curve returned into backwardation during the month, signalling a market that already feels the effects of declining Iranian exports. Within the energy equities, we saw further consolidation as the industry appeared to take advantage of equity valuations below the expected asset value. Elsewhere, the Permian basin is experiencing pipeline bottlenecks, meaning that whilst oil production has increased, there is a lack of pipeline capacity. This has impacted shale producers by forcing them to accept lower prices for their oil. Within the Company’s portfolio, our higher beta mining names underperformed in a down market.  In addition, our positions in Anadarko and Noble Energy were among the largest detractors. Both companies have exposure to the Denver-Julesburg basin in Colorado, which is currently in the spotlight due to a ballot initiative referred to as Initiative 97.  Initiative 97 calls for a significant widening of the distance that oil wells are required to be from occupied buildings and water sources. The initiative, should it make the ballot and be voted into law in November, could reduce the rig count by 80% across the basin. Noble was also negatively impacted as it reported Q2 results which were lower than analyst expectations. All data points in US Dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.

24 September 2018

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.