LONDON (Alliance News) - BlackRock Commodities Income Investment Trust PLC on Tuesday lamented a challenging year for commodities amid weak Chinese demand, production oversupply and US dollar strength.
The trust's net asset value per share returned negative 29.4% in the year ended November 30, while the share price returned negative 34.8%.
Over the same period, the Euromoney Global Mining Index and MSCI World Energy Index returned negative 38.9% and negative 12.1% respectively.
Since its launch in December 2005, the trust's NAV has returned positive 0.5% and the share price negative 2.1%, with all percentages calculated in sterling terms with income reinvested.
Since the year end and up to the close of business on Monday this week, the trust's NAV has returned negative 15.1% and the share price has returned negative 12.1%.
The trust maintained its total dividend for its last financial year at 6.0 pence per share.
"Over the past 12 months the sector has significantly reduced capital expenditure, cut costs, reduced its work force and is now beginning to lower production. Despite this, commodity prices continue to be driven down by China fears, oversupply and US dollar strength," Chairman Ed Warner said.
"2016 is shaping up to be another tough year for the natural resources sector. Whether we have experienced the worst remains to be seen but one has to believe that the industry is now better positioned for any recovery. In this context dividends, however, remain under pressure as revenues fall and the cost of debt servicing rises," Warner added.
Shares in the trust closed down 4.2% at 50.31 pence on Tuesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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