Fact sheet: BlackRock World Mining IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
SPECIALIST
Sector
IT Commodities & Nat Resources
Fund type
Investment Trust
Primary aim
GROWTH
Why Money Observer Rates BlackRock World Mining IT

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.

3 Year Performance
Fund Performance-9.4%
Average of Rated Funds Group59.2%
Sector Performance-16.8%
Fund information
Fund name
BlackRock World Mining IT
Fund manager company
BlackRock Investment Managemen
Fund type
Investment Trust
Fund managers
  • Evy Hambrosince 30/04/2009
  • Olivia Markhamsince 30/04/2015
Accolades
Fund objective
To provide a diversified investment in mining and metal assets worldwide, actively managed with the objective of maximising total returns. While the policy is to invest principally in quoted securities, the Company’s investment policy includes investing in royalties derived from the production of metals and minerals as well as physical metals. Up to 10% of gross assets may be held in physical metals and up to 20% may be invested in unquoted investments.
Benchmark
  • Euromoney Global Mining
Investment style
No data available.
Investment method
Shares
Quick stats
1 Year return
25%
1 Year rank in sector
4/9
Sector
IT Commodities & Nat Resources
Yield
4.1%
Fund size
£645m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
236
Mid price
365.25
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
412.3
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
-11.41
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
113
Top in this sector
Fund name1 Year
RDP Gbl Res IT PLC Ord 1P90.4%
Riverstone Energy Ltd Ord NPV32.8%
El Oro26.2%
BlackRock World Mining IT25%
Baker Steel Res Tst24.1%
...more in IT Commodities & Nat Resources

Performance snapshot

Holdings snapshot

  • International64.6%
    Latin America13%
    Australasia11%
    Africa6.4%
    Canada4.2%
  • Others44.9%
    Other Metals20.3%
    Gold18.6%
    Precious Metals & Stones9.6%
    Mineral Extraction6.9%
  • Commodity & Energy101%
    Money Market-1%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund3.4%10.3%-4.3%25%-9.4%-14%
Sector-1%1.6%-11%11.9%-16.8%-44.7%
Rank within sector2 / 91 / 94 / 94 / 95 / 91 / 7
Quartile1st1st2nd2nd3rd1st
Calendar performance
 YTD - 20172016201520142013
Fund13.2%100.6%-37%-30.4%-17.5%
Sector7.1%61.8%-39%-21.5%-32.7%
Rank within sector3 / 91 / 96 / 97 / 83 / 7
Quartile2nd1st3rd4th2nd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
5.88
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.31
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
-0.02
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
33.2
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
16.87
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.12
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.78
Price movement
52 week high403
52 week low271.5
Current bid price365
Current offer price366
Current mid price365.25
Region
1International64.6%
2Latin America13%
3Australasia11%
4Africa6.4%
5Canada4.2%
6South Africa1%
7Russia0.4%
8Kazakhstan0.3%
9European Emerging Markets0.1%
Industry sector
1Others44.9%
2Other Metals20.3%
3Gold18.6%
4Precious Metals & Stones9.6%
5Mineral Extraction6.9%
6Industrial Commodities0.7%
7Net Current Liabilities-1%
Asset type
1Commodity & Energy101%
2Money Market-1%
Individual holdings
1RIO TINTO PLC11.2%
2FIRST QUANTUM MINERALS8.2%
3GLENCORE PLC7.7%
4BHP BILLITON PLC7%
5VALE SA6.5%
6LUNDIN MINING CORP4.2%
7SOCIEDAD MINERA CERRO VERDE SA3.3%
8TECK RESOURCES LTD3.3%
9NEWMONT MINING CORP3.2%
Management
Fund manager group
BlackRock
Fund manager company
BlackRock Investment Managemen
Fund type
Investment Trust
Fund objective
To provide a diversified investment in mining and metal assets worldwide, actively managed with the objective of maximising total returns. While the policy is to invest principally in quoted securities, the Company’s investment policy includes investing in royalties derived from the production of metals and minerals as well as physical metals. Up to 10% of gross assets may be held in physical metals and up to 20% may be invested in unquoted investments.
Benchmark
  • Euromoney Global Mining
Investment style
No data available.
Investment method
Shares
Fund managers
NameSinceBiography
Evy Hambro30/04/2009Evy Hambro, Managing Director, is the joint Chief Investment Officer of the Natural Resources Equity team within BlackRock's EMEA Fundamental Equity Portfolio Management Group. He is responsible for the management of BGF World Mining, BGF World Gold, BlackRock Gold and General Fund and BlackRock World Mining Trust. He is also co-manager of BlackRock's Natural Resources Hedge Fund and manger of a number of segregated portfolios. Mr. Hambro's service with the firm dates back to 1994, including his years with Mercury Asset Management & Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. Mr. Hambro earned a BSc degree, with honours, in Agricultural Food marketing, from Newcastle University in 1994.
Olivia Markham30/04/2015Olivia Markham, CFA, Director and portfolio manager, is a member of the Natural Resources Equity team within the Fundamental Equity division of BlackRock's Alpha Strategies Group. She co-manages the BlackRock World Mining Trust, the BGF World Mining Fund, the Commodities Income Investment Trust and a number of the team’s segregated portfolios. Ms. Markham joined BlackRock in 2011. Previously, she was head of the European Mining team at UBS with lead coverage of the UK diversified miners. Before moving to London in 2009, Ms. Markham worked for Merrill Lynch in Sydney covering the Australian miners. She also spent four years working within the Mergers and Acquisition team at BHP Billiton. Ms. Markham earned a BComm degree in finance from the University of Western Australia in 2003.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
BlackRock World Mining IT
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price412.3
CurrencyGBX
Price updated18/08/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNJGU
BlackRock World Mining IT NAV
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price407.7221
CurrencyGBX
Price updated18/08/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeM555
Data provided by

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