Portfolio Update

BLACKROCK ENERGY AND RESOURCES INCOME INVESTMENT TRUST PLC (LEI:54930040ALEAVPMMDC31)

All information is at 31 May 2019 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

-4.4%

-0.8%

3.6%

-8.8%

45.2%

-5.0%

Share price

-7.8%

-5.7%

1.9%

-9.2%

33.7%

-13.6%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

75.63p

Net asset value cum income*:

76.62p

Share price:

70.00p

Discount to NAV (cum income):

8.6%

Net yield:

5.7%

Gearing - cum income:

6.4%

Total assets:

£98.5m

Ordinary shares in issue:

115,580,243

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.4%

* Includes net revenue of 0.99p. ^ 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 2018.

Sector Analysis

% Total^ Assets

Country Analysis

% Total^ Assets

Integrated Oil

29.3

Global

63.1

Diversified Mining

22.8

USA

11.7

Gold

11.0

Canada

10.4

Copper

9.6

Latin America

4.4

Exploration & Production

8.3

Australia

4.2

Industrial Minerals

4.4

Asia

1.2

Silver

3.1

Africa

0.7

Diamonds

2.4

Net current assets

4.3

Distribution

2.3

-----

Electricity

2.0

100.0

Steel

0.7

=====

Basic Materials

-0.2

Net current assets

4.3

----- 100.0 =====

^ Total Assets for the purposes of these calculations exclude bank overdrafts, and the net current assets figure shown in the tables above therefore excludes bank overdrafts equivalent to 6.4% of the Company’s net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

BHP

Global

7.2

First Quantum Minerals

Global

6.9

Royal Dutch Shell ‘B’

Global

6.8

BP Group

Global

5.4

Rio Tinto

Global

4.7

Chevron

Global

4.7

Exxon Mobil

Global

4.5

Barrick Gold

Global

3.8

Newmont Mining

Global

3.6

Vale - ADS

Latin America

3.0

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

The Company’s NAV decreased by 4.4% during the month of May (in GBP terms). Global equity markets declined in May, putting a halt to the strong start to the year, as the MSCI World Index declined by 5.8%. Protectionist policy from the Trump administration led to escalating trade tensions between the US and China and also Mexico which affected global growth estimates. In addition, the US imposed sanctions on Chinese firm Huawei, placing it on its ‘Entity List’ which restricts its ability to buy and sell hardware, software and services to and from US suppliers. Many are fearing that the currently inverted US treasuries yield curve points to an imminent recession and economic data releases also came out weaker than expected as US and China PMIs (Purchasing Managers Index), which provide insight on the direction of their respective manufacturing sectors fell on the month, with the former reaching its lowest level for almost a decade. Against this macroeconomic backdrop, concerns around demand led to the price of Brent and WTI (West Texas Intermediate) coming under pressure, falling by 8.0% and 16.2%, to finish the month at $66/bbl and $53/bbl respectively. Despite this negativity, OPEC held a pre-meeting ahead of the full meeting occurring in June.  The group stated that they are maintaining production cuts and aiming to drive inventories lower, which was a small positive for the oil price. Most mined commodity prices retreated, with the base metals, which are typically more economically sensitive, particularly weak. The copper price was off 9.7%, for example, but this appeared to be driven more by speculation in the futures market than by supply and demand fundamentals in our view. Iron ore, however, continued to perform strongly with the iron ore (62% fe) price rising 9.3% over the month, to a near 5-year high of $101/tonne. Production stoppages at some of Vale’s assets in Brazil following the Brumadinho dam rupture, cyclone activity impacting production in Western Australia and falling iron ore inventories in China have contributed to the 42.6% rise in the iron ore (62% fe) price year-to-date. All data points in US dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.

18 June 2019

ENDS