BlackRock World Mining Trust plc

Specialist

Rated Fund 2016-2018. Profits from recovery in commodities

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 2015 as demand for commodities collapsed due to slowing economic growth in China and elsewhere. However, January 2016 marked the bottom for the mining sector. It has since performed strongly, driven by commodity prices recovering from multi-year lows.

Evy Hambro has run this trust since 2009, with Olivia Markham becoming his co-manager in 2015. They point to the mining sector having among the highest free cash flow yields of any global sector and, given a significant improvement in mining companies' balance sheets, they expect lower earnings volatility than the previous three years to drive a continued recovery in share prices. While the sector has performed strongly, it is only back at 2014 levels and a long way below the 2011 peak.Hambro's 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, the pair are 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, 47 per cent of the portfolio was in diversified miners, with 22 per cent in copper and 17 per cent in gold miners. The trust yields 4.3 per cent, with dividends paid quarterly, and its shares have traded at a modest double-digit discount for most of the past three years.

Narrative and ratings content all as of 01 January 2018.

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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
0.98 %
Risk Rating
5
3 Year Sharpe
1.00
3 Year Alpha
-12.93
Yield
3.7 %
Benchmark
EMIX Global Mining TR USD
Fund Size
£ 618.43 million
NAV
416
Gearing
114
Discount Premium
-15
The Company’s 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 Company’s investment policy includes investing in royalties derived from the production of metals and minerals as well as physical metals.
Holding %
Rio Tinto PLC 12.28 %
BHP Billiton PLC 11.49 %
Glencore PLC 9.30 %
Vale SA ADR 8.64 %
Teck Resources Ltd Class B 6.52 %
First Quantum Minerals Ltd 5.67 %
Sociedad Minera Cerro Verde SAA 3.63 %
Oz Minerals Ltd 2.57 %
Newcrest Mining Ltd 2.48 %
Avanco Resou 4% 31/12/49 2.43 %
Region %
United Kingdom 36.48 %
Canada 28.06 %
Australasia 13.54 %
Latin America 13.21 %
Sector %
Basic materials 99.52 %
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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