BlackRock Commodities Income sticks with lower dividend – Over the year to 30 November 2017, BlackRock Commodities Income delivered a negative return on net assets of 3.2% and the share price return was -4.4%. Over the same period, the Euromoney Global Mining Index rose by 8.9% and the MSCI World Energy Index fell by 4.1% in sterling terms. The dividend fell to 4p from 5p and they intend to keep it at this level for the new accounting year despite having earned 4.84p in net revenue for the year.
The chairman said “Following the resurgence in the commodities sector in 2016, this year has been mixed, with strong performance from mining equities offset by weaker and more varied results in the energy sector. The mining sector was buoyed by strong demand and also by supply-side government reforms in China, aimed at eradicating surplus capacity in heavy industry, which has driven steel and coal prices sharply upward. By contrast, despite a 30% increase in the oil price over the year, driven by an extension to OPEC production cuts and declining inventories, energy equities have lagged behind as markets continue to take a bearish stance on the longer term outlook for the oil price.”
In the manager’s report, there isn’t a great deal of commentary on the stocks in the portfolio beyond a description of the top ten holdings.
BRCI : BlackRock Commodities Income sticks with lower dividend