Source - PRN
All information is at 31 May 2017 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 -2.8% -11.6% -9.5% 26.6% -17.1% -7.8%
Share price -2.0% -10.5% -9.9% 24.9% -19.4% -11.6%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only: 72.28p
Net asset value cum income*: 74.00p
Share price: 72.75p
Discount to NAV (cum income): 1.7%
Net yield: 6.2%
Gearing: 8.7%
Total assets^: £105.5m
Ordinary shares in issue: 118,768,000
Gearing range (as a % of net assets): 0-20%
Ongoing charges**: 1.4%
* Includes net revenue of 1.72p.
^ 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 2016.
Sector Allocation % Total Assets Country Allocation % Total Assets 
Integrated Oil 19.9 Global 46.9
Diversified Mining 17.9 USA 17.7
Exploration & Production 17.6 Canada 10.7
Gold 10.0 Australia 4.6
Copper 8.8 Latin America 4.2
Distribution 3.5 Europe 2.5
Silver 3.1 Africa 2.2
Oil Services 3.0 Mali 1.3
Agriculture Science 2.0 Asia 0.4
Iron Ore 1.9 Net current assets  9.5
Steel 1.1 -----
Coal & Uranium 0.7 100.0
Diamonds 0.6 =====
Fertilizers 0.4
Net current assets 9.5
Ten Largest Investments
Company Region of Risk % Total Assets
First Quantum Minerals Global 7.8
Royal Dutch Shell ‘B’ Global 6.1
ExxonMobil Global 4.3
Rio Tinto Global 4.3
Glencore Global 4.2
BP Global 3.8
BHP Billiton Global 3.3
Newcrest Mining Australia 2.7
Anadarko Petroleum USA 2.6
Enbridge Income Fund Trust Canada 2.5

Commenting on the markets, Olivia Markham and Tom Holl, representing the Investment Manager noted:

The Company’s NAV fell by 2.8% during the month (in GBP terms with net income reinvested).

Macroeconomic data points were relatively mixed in May, however, broader equity markets marched ever higher, with the MSCI World Index up by +2.1% over the month. Softer data points emerged from China including signs of tighter credit conditions and the country’s manufacturing PMI falling to 49.6, below 50 for the first time since June 2016 and now indicating contraction. This data was particularly negative for the mining sector and mined commodity prices gave back some of the strong gains they have made in the last 12 months. Iron ore (62% fe) came under the most pressure, down by 14.8%. Mining company share prices were more resilient reflecting the fact that commodity prices had only moved down to consensus estimates. In addition, at current price levels, the miners are still generating very strong levels of free cash flow relative to their enterprise value.

Energy equities were held back by oil price weakness in May as Brent and WTI oil prices fell by 2.0% and 2.1% respectively. The major event for the oil market was OPEC and non-OPEC countries extending their 1.8mb/d production cut for a further 9 months starting July 1st, having had this in place since the start of the year. Despite an extension being confirmed, oil’s reaction was lacklustre, with oil giving up some of the gains we saw in the run up to the meeting. The decision was in line with our expectations but clearly some in the market had hoped for more drastic action from the oil cartel (i.e. an even longer / deeper cut). We see OPEC’s production restraint as helpful in accelerating the rebalancing of the oil market and we continue to expect compliance to remain higher than in historical cuts; so far compliance has been running at ~102%. The market remains sceptical on the integrity of the OPEC deal and continues to focus on the increasing US rig count, which has now risen for 20 consecutive weeks, and what this means for US shale production. The market also appeared to look through continued draws on US inventories, which are now down by over 20 million barrels since the end of March 2017.

All data points in US dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.
19 June 2017

Latest information is available by typing 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.