BlackRock World Mining Trust plc

Specialist

Rated fund 2016-20. Poised to profit from a recovery in the commodities sector

Investing in mining shares is not for the faint-hearted, as the performance of BlackRock World Mining shows. Several factors add to its risk profile, ranging from investing in less developed markets – which also brings currency risk – to being heavily driven by sentiment and macroeconomic events. After a torrid year in 2015 as demand for commodities collapsed due to slowing economic growth in China and elsewhere, the trust bounced back in 2016 and 2017, had a tougher year in 2018 and rallied strongly in 2019. We continue to rate it for investors who want to diversify into metals and mining, provided they can stomach the volatility.

Evy Hambro has run this trust since 2009. Olivia Markham is co-manager. They see an attractive valuation opportunity in mining. The mining sector is generating close to record free cash flow, while balance sheets are in good shape and companies remain focused on capital discipline. The pair are seen as a strong investment team, highly motivated to restore the trust to its former standing as a flagship in the sector, following a high-profile portfolio failure in 2014. They take a flexible approach to investing in the shares of base and precious metals mining companies. At the end of 2019, 38% of the portfolio was in diversified miners, 24% in gold miners and 18% in copper.

The trust yields 5.4%, with dividends paid quarterly. Its shares have traded at an average discount of 11% over the past three years.

Narrative and ratings content all as of 01 January 2020.

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Name
BlackRock World Mining Trust plc
Manager
BlackRock
Type
Closed Ended Investment Company
ISIN
GB0005774855
Sector
Sector Specialist: Commodities & Natural Resources
Launched
15/12/1993
OCF
1.02 %
Risk Rating
4
3 Year Sharpe
0.50
3 Year Alpha
8.86
Yield
5.2 %
Benchmark
EMIX Global Mining TR USD
Fund Size
£ 659.7 million
NAV
432
Gearing
110
Discount Premium
-13
The investment policy is to provide a diversified investment in mining and metal securities worldwide. While the policy is to invest principally in quoted securities, the investment policy includes investing in royalties derived from the production of metals and minerals as well as physical metals.
Holding %
BHP Billiton Ltd 9.65 %
Rio Tinto PLC 9.23 %
Anglo American PLC 6.09 %
Vale SA 5.21 %
Barrick Gold Corp 4.41 %
Newmont Corp 4.39 %
First Quantum Minerals Ltd 4.18 %
Agnico Eagle Mines Ltd 3.70 %
Wheaton Precious Metals Corp 3.64 %
Franco-Nevada Corp 2.74 %
Region %
Canada 33.13 %
Australasia 21.70 %
United Kingdom 20.71 %
Latin America 9.22 %
United States 8.24 %
Sector %
Basic materials 98.87 %
Name
BlackRock
Address
02940-8019, Providence, United States
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Olivia Markham
Joined 04/30/2015

Olivia Markham is co-manager of the BlackRock World Mining Trust and is also manager of the BlackRock Commodities Income Investment Trust plc and a member of the Natural Resources Team. Olivia covers the gold and mining sectors and is involved in the management of a number of the team’s portfolios, including an institutional energy and mining mandate. She joined BlackRock in 2011. Her previous roles included heading the European mining team at UBS and spending 5 years in the mergers and acquisitions team at BHP Billiton. Olivia has a degree with honours in finance

Evy Hambro
Joined 09/01/2000

Managing Director of BlackRock, Inc. since 2006 and Co-head of BlackRock’s Natural Resources Equity team; Portfolio Manager of Merrill Lynch Investment Managers, L.P. and its predecessor from 1994 to 2006.

Data provided by Morningstar.

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