BLACKROCK COMMODITIES INCOME INVESTMENT TRUST PLC
All information is at 31 July 2013 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 6.1% 0.7% -7.6% 1.9% 5.6% -2.2%
Share price 8.1% -1.7% -7.9% 3.1% 4.9% 3.8%
Sources: Datastream, BlackRock
At month end
Net asset value - capital only: 110.66p
Net asset value - cum income**: 111.22p
Share price: 112.38p
Premium to NAV (cum income): 1.0%
Net yield: 5.3%
Gearing - cum income: 8.1%
Gearing range (as a % of net assets) 0-20%
Total assets^^: £113.9m
Ordinary shares in issue: 94,758,000
**Includes net revenue of 0.56p.
^^includes current year revenue.
Sector % Total Country % Total
Analysis Cap Assets Analysis Cap Assets
Integrated Oil 31.9 Global 32.9
Exploration & Production 17.9 USA 21.4
Diversified 16.2 Canada 21.1
Gold 7.0 Latin America 9.8
Copper 6.4 Europe 8.1
Oil Services 5.9 Asia 3.8
Oil Sands 3.1 Australia 1.1
Distribution 2.1 South Africa 0.9
Iron Ore 1.8 China 0.8
Aluminium 1.6 Russia 0.8
Fertilizer 1.4 Africa 0.4
Nickel 1.4 Current liabilities (1.1)
Silver 1.0 -----
Uranium 1.0 100.0
Coal 0.8 =====
Tin 0.6
Zinc 0.5
Platinum 0.5
Current liabilities (1.1)
-----
100.0
=====
Ten Largest Equity Investments(in alphabetical order)
Company Region of Risk
Anadarko Petroleum USA
Antofagasta Latin America
BHP Billiton Global
BP Global
Chevron Global
Eni Europe
ExxonMobil Global
Glencore Global
Occidental USA
Total Global
Commenting on the markets, Richard Davis, representing the Investment Manager
noted:
Economic data was generally positive during the month, providing the impetus
for some decent returns in commodity markets. Gold bullion recovered some of
its recent losses in July, partly based on the belief that the US Federal
Reserve will maintain its current monetary policy for longer than comments
from Ben Bernanke initially suggested. The gold price increased by 7.8%,
ending the month at $1,310/oz. Holdings in gold ETFs continued to decline and
the speculative net length in gold futures remains near a 10 year low. Other
precious metals had positive returns in July with silver returning 5.7% and
platinum 8.8%. Bulk commodities also rallied in July. Iron ore gained 14%
driven by a replenishment of inventories at Chinese steel mills. Iron ore ended
the month at US$134/t (source: CSLA, 63.5% Fe). Base metals prices were
relatively muted throughout the month with copper and aluminium posting returns
of 2.1% and 1.6% respectively.
The potash fertiliser industry was shaken during the month by the announcement
that Russian potash producer Uralkali was breaking away from the Belorussian
Potash Company "marketing organisation". The company plans to increase supply
and commented that potash prices could fall significantly in the coming months as a
result. This caused potash equities to drop by 10-30% on the day of the
announcement. Mining equities rose by 6.7% in July (in Sterling terms).
In the energy sector, Brent crude appreciated by 5.3% to finish the month at
US$107.9/Bbl. OPEC crude production fell by 370kb/d in June, according to the
International Energy Agency, owing to supply disruptions in Libya, Nigeria and
Iraq. Libyan oil fields and export terminals have been shut-in following worker
disputes and unrest. Iraqi output has suffered from pipeline damage and
inclement weather. South Sudan is also reportedly reducing oil production after
an agreement between Sudan and South Sudan was reached for oil exports. Landlocked
South Sudan possesses the oil, but is beholden to Sudan for its export terminals.
Tensions between the two have resulted in oil production from the area falling short
of its ~300kb/d normal operating capacity.
West Texas Intermediate (WTI) crude outpaced Brent, gaining 9.1%, further
narrowing the spread between the benchmark prices. At the end of the month, WTI
stood at US$105.1/Bbl, just US$2.8/Bbl below Brent. At the start of the year,
WTI traded at a discount of approximately US$20/Bbl. The steady momentum in the
US economy, an increase in refinery activity post a maintenance period, and
flooding in Canada which reduced the oil flow from the country into
America, have all contributed to the narrowing. Energy equities closed the
month up by 5.4% (in Sterling terms).
All data sourced from Datastream and quoted in US Dollars unless otherwise
stated.
16 August 2013
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.
