BlackRock World Mining Trust plc
Specialist
Rated fund 2016-19. Profits from recovery in commodities
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. After strong years in 2016 and 2017, 2018 was again a more challenging for the mining sector and, therefore, this trust.
Sentiment deteriorated on trade tensions and mined commodity prices fell across the board as a result. However, the fact that financially traded commodities (such as copper, zinc and aluminium) underperformed physically-traded ones (iron ore and steel), where investors are unable to speculate as much, suggests that underlying fundamentals remain strong and weakness has been mainly driven by speculation.
Evy Hambro has run this trust since 2009, with Olivia Markham becoming his co-manager in 2015. They point to underlying demand in China appearing stable and mining shares trading on attractive multiples versus history and relative to broader equities.
The pair is seen as a strong investment team, who are highly motivated to restore the trust to its former standing as a flagship in the sector following a high-profile failure in the portfolio in 2014.
They adopt a flexible approach to investing in the shares of base and precious metals mining companies worldwide. At the end of 2018, 47% of the portfolio was in diversified miners, 18% in copper and 14% in gold miners.
The trust yields 4.4%, 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 2019.
See all Money Observer rated funds| Holding | % |
|---|---|
| Bnymloan Usd | 14.38 % |
| BHP Group PLC | 13.32 % |
| Rio Tinto PLC | 12.73 % |
| Vale SA ADR | 12.45 % |
| Glencore PLC | 10.99 % |
| Teck Resources Ltd Class B | 6.52 % |
| First Quantum Minerals Ltd | 4.99 % |
| Sociedad Minera Cerro Verde SAA | 4.09 % |
| Avanco Cap ([Wts/Rts]) 0% | 3.24 % |
| Nevsun Resources Ltd | 3.18 % |
| Region | % |
|---|---|
| Canada | 29.78 % |
| United Kingdom | 24.56 % |
| Latin America | 15.64 % |
| Australasia | 13.70 % |
| Europe - ex Euro | 9.67 % |
| Sector | % |
|---|---|
| Basic materials | 99.49 % |
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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