Rated Fund 2016-2017. A highly rated team steering the trust to recovery
With its focus on investing predominantly in the shares of mining companies worldwide, BlackRock World Mining had a torrid time for several years up to the end of 2015 as demand for commodities collapsed due to slowing economic growth in China and elsewhere.
However, after this extended down-cycle, January 2016 marked the bottom for the mining sector, which performed strongly last year, primarily driven by commodity prices recovering from multi-year lows.
Although the sector's performance may remain volatile, this trust has the advantage of being managed by the highly experienced Evy Hambro with co-manager Olivia Markham.
Their reputation was impacted in 2014 by an ill-fated holding in the London Mining Marampa royalty contract, which had to be written off due to the fall in demand for iron ore. Nevertheless, they continue to be seen as a strong investment team, who are highly motivated to restore the trust to its former standing as a flagship in the sector.
They adopt a flexible approach to investing across base and precious metals sectors. At the end of 2016, 48 per cent of the portfolio was invested in diversified miners, with another 40 per cent split between copper and gold miners.
One of the trust's attractions in recent years has been its artificially high yield, which was just over 5 per cent at the end of 2016. But dividends are expected to be cut to more sustainable levels in 2017, with the yield expected to be around 3.5 per cent, paid quarterly.