BLACKROCK COMMODITIES INCOME INVESTMENT TRUST plc | |||||||||||||||||||
All information is at 29 February 2016 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 | 8.0% | -3.8% | -6.7% | -30.7% | -44.5% | -51.7% | |||||||||||||
Share price | 11.5% | -0.3% | -2.3% | -29.8% | -41.9% | -51.2% | |||||||||||||
Sources: Datastream, BlackRock | |||||||||||||||||||
At month end | |||||||||||||||||||
Net asset value – capital only: | 55.11p | ||||||||||||||||||
Net asset value cum income*: | 56.28p | ||||||||||||||||||
Share price: | 58.00p | ||||||||||||||||||
Premium to NAV (cum income): | 3.1% | ||||||||||||||||||
Net yield: | 10.3% | ||||||||||||||||||
Cash - cum income: | 0.4% | ||||||||||||||||||
Total assets^^: | £69.2m | ||||||||||||||||||
Ordinary shares in issue: | 117,468,000 | ||||||||||||||||||
Gearing range (as a % of net assets): | 0-20% | ||||||||||||||||||
Ongoing charges**: | 1.4% | ||||||||||||||||||
* Includes net revenue of 1.17p. ^^ Includes current year revenue. ** Calculated as a percentage of average net assets and using expenses, excluding interest costs and taxation for the year ended 30 November 2015. |
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Sector Analysis | % Total Assets | Country Analysis | % Total Assets | ||||||||||||||||
Integrated Oil | 30.4 | Global | 50.8 | ||||||||||||||||
Diversified Mining | 14.4 | USA | 12.6 | ||||||||||||||||
Gold | 13.6 | Canada | 11.2 | ||||||||||||||||
Copper | 8.4 | Africa | 5.5 | ||||||||||||||||
Exploration & Production | 6.5 | Europe | 5.0 | ||||||||||||||||
Distribution | 4.9 | Latin America | 3.8 | ||||||||||||||||
Nickel | 3.8 | Australia | 3.3 | ||||||||||||||||
Silver | 3.2 | Sweden | 1.0 | ||||||||||||||||
Fertilizers | 2.8 | China | 1.0 | ||||||||||||||||
Refining & Marketing | 1.8 | Asia | 0.8 | ||||||||||||||||
Diamonds | 1.7 | Philippines | 0.2 | ||||||||||||||||
Zinc | 1.0 | Net current assets | 4.8 | ||||||||||||||||
Mining | 1.0 | ----- | |||||||||||||||||
Coal | 0.9 | 100.0 | |||||||||||||||||
Oil services | 0.8 | ===== | |||||||||||||||||
Net Current assets | 4.8 | ||||||||||||||||||
----- | |||||||||||||||||||
100.0 | |||||||||||||||||||
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Ten Largest Equity Investments (in % of Total Assets order) | |||||||||||||||||||
Company | Region of Risk | % Total Assets | |||||||||||||||||
ExxonMobil | Global | 7.1 | |||||||||||||||||
Royal Dutch Shell ‘B’ | Global | 6.2 | |||||||||||||||||
Rio Tinto | Global | 5.4 | |||||||||||||||||
First Quantum Minerals | Global | 5.3 | |||||||||||||||||
BHP Billiton | Global | 5.2 | |||||||||||||||||
Enbridge Income Fund Trust | Canada | 4.9 | |||||||||||||||||
Chevron | Global | 4.3 | |||||||||||||||||
BP | Global | 3.7 | |||||||||||||||||
Eni | Europe | 2.9 | |||||||||||||||||
ConocoPhillips | USA | 2.8 | |||||||||||||||||
Commenting on the markets, Olivia Markham and Tom Holl, representing the Investment Manager noted: |
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The performance of the underlying natural resources sectors (mining and energy) diverged in February. The mining sector significantly outperformed on the back of some price strength amongst the mined commodities, a rally in the gold equity space, investor short covering and a better than expected reporting season. For reference, the Euromoney Global Mining Index rose by 20.4% over the month. Iron ore (62% fe) was the best-performing mined commodity, up by 14.0% over the month, reflecting seasonal demand strength, restocking in China and some supply disruption as a consequence of the Samarco Brazilian dam disaster. | |||||||||||||||||||
The majority of the base metals were also up over the month, with zinc, aluminium and copper prices rising by 8.0%, 5.1% and 3.0% respectively. Whilst being one of the mining sector’s strongest ever months relative to broader equity markets (the MSCI World TR Index finished down by 0.7%), there appeared to be limited improvement in underlying fundamentals. Economic data from China was mixed, with manufacturing data below expectations but bank lending coming in at a record high. | |||||||||||||||||||
The energy sector was the worst performing of the underlying sectors, with the MSCI World Energy TR Index declining by 0.4%. A meeting of oil ministers from Saudi Arabia, Venezuela, Qatar and Russia took place during the month which led to the announcement of a co-ordinated oil output freeze, subject to the agreement of other oil producing nations. It is important to highlight that Saudi Arabia and Russia (the largest producers of the four) are likely already producing at close to full capacity. Whilst we see relatively limited impact on physical markets in the near-term, for sentiment this could be viewed as a positive step as it is the first sign of a more open dialogue across the oil producing nations. This news combined with stubbornly high inventories in the US led to oil prices diverging as the Brent oil price finished the month 7.9% higher, whilst the WTI oil price declined by 2.7%. | |||||||||||||||||||
During the month, the portfolio increased its exposure to the mining sector, specifically the gold names, and reduced its higher cost energy exposure. | |||||||||||||||||||
15 March 2016 | |||||||||||||||||||
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. |