BLACKROCK ENERGY AND RES. INC.
BLACKROCK COMMODITIES INCOME INVESTMENT TRUST plc
All information is at 31 December 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 3.0% 12.9% 22.9% 68.0% -0.2% -7.3%
Share price 7.2% 16.9% 38.4% 71.7% -1.5% -2.8%
Sources: Datastream, BlackRock
At month end
Net asset value - capital only: 84.60p
Net asset value cum income*: 85.21p
Share price: 87.75p
Premium to NAV (cum income): 3.0%
Net yield: 5.7%
Gearing - cum income: 5.9%
Total assets^^: £113.1m
Ordinary shares in issue: 118,768,000
Gearing range (as a % of net assets): 0-20%
Ongoing charges**: 1.4%
* Includes net revenue of 0.61p.
^^ 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 2015.
Sector Analysis % Total Assets Country Analysis % Total Assets
Integrated Oil 22.4 Global 48.6
Diversified Mining 17.8 USA 23.7
Exploration & Production 16.8 Canada 8.0
Gold 12.4 Latin America 4.4
Copper 7.2 Africa 3.6
Distribution 3.5 Europe 3.4
Silver 3.4 Australia 2.6
Nickel 3.0 Asia 0.4
Oil Services 2.5 Net current assets 5.3
Fertilizers 1.9 -----
Diamonds 1.6 100.0
Agriculture Science 1.2 =====
Steel 1.1
Industrial Minerals (0.1)
Net current assets 5.3
-----
100.0
=====
Ten Largest Investments (in %
of Total Assets order)
Company Region of Risk % Total Assets
Royal Dutch Shell 'B' Global 6.6
First Quantum Minerals Global 6.5
ExxonMobil Global 6.0
Rio Tinto Global 4.9
BHP Billiton Global 3.5
Norilsk Nickel USA 3.0
Vale Latin America 2.9
ConocoPhillips USA 2.9
Anadarko Petroleum USA 2.8
Barrick Gold Global 2.7
Commenting on the markets, Tom Holl, representing the Investment Manager noted:
The Company's NAV rose by 3.0% during the month, bringing the full year 2016
performance to +68.0% (both in GBP terms with net income reinvested).
Performance was mixed across the natural resources sector during the month,
with energy displaying positive returns, whilst the mining sector proved to be
the laggard.
Data from China was largely positive during the month, with November's official
industrial production rising by 6.2% year-on-year, above the 6.1% that markets
had expected. Retail sales reported a 10.8% year-on-year gain, ahead of the
10.2% increase anticipated, whilst fixed-asset investment was in-line with
market hopes, rising by 8.3%. One dark spot amongst the data was property sales
growth; at 7.9% year-on-year in November it hit its lowest point since December
2015. Despite this supportive economic data, the base metals came under
pressure with nickel, copper and zinc declining by -11.0%, -5.0% and -4.9%
respectively. This appeared to be driven by continued US dollar strength as the
10-year US Treasury yield extended its climb higher, fuelled by Trump's pledged
stimulus measures.
Elsewhere, gold bullion declined by -1.4%, finishing the month at a price of
$1,157/oz. Whilst moves in the underlying gold price continued to be weak, gold
equities recovered some of the losses they experienced in November. Within the
bulk commodities, coking coal was not immune to the price sell-off as it
finished the month -28.9% lower (the coking coal price remains +146.2% higher
than it started the year). Those companies more exposed to this came under
pressure during the month.
The energy sector was supported by continued positive performance from oil
prices in December, as Brent and WTI oil prices gained +12.6% and +8.8% to
finish the year at $55/bbl and $54/bbl. By the end of the month, the sector (as
measured by the MSCI World Energy Index) had gained +27.8% over 2016, strongly
outperforming broader equity markets, whilst Brent and WTI oil prices had risen
+51.6% and +44.8% respectively. The sector entered December with positive
momentum on the back of OPEC's announcement at the end of November that it had
agreed to adjust production by 1.2 million barrels per day (mbpd), down to a
targeted level of 32.5mbpd effective from the 1st January 2017. Following this,
OPEC ministers and ministers from 10 other major oil producing countries met in
Vienna on the 10th December to discuss non-OPEC production cuts. Oil prices
surged as it was announced that non-OPEC countries had agreed to a combined cut
of 558kbpd allaying one of the concerns the market had after the deal was
initially announced.
Other sector news during December included Donald Trump confirming current
chief executive of ExxonMobil, Rex Tillerson, as his choice for US Secretary of
State (a man who is perceived as supportive for US oil and gas producers) and M
&A activity for UK integrated oil and gas company BP. During a busy month for
the company, BP announced it had signed agreements with Kosmos Energy to
acquire a 62% stake in Kosmos' exploration blocks in Mauritania and a 32.5%
stake in Kosmos' exploration blocks off Senegal. The company also announced the
acquisition of Woolworths Ltd's network of Australian gas stations and the
approval of its Mad Dog Phase 2 project in the Deepwater Gulf of Mexico.
All data points are in US dollar terms unless otherwise specified.
18 January 2016
BlackRock Comms Income Inv Tst : COMMODITIES INCOME INVESTMENT TRUST PLC - Portfolio Update
January 18, 2017 at 11:48 am
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