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
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
0.93 %
Risk Rating
4
3 Year Sharpe
0.93
3 Year Alpha
2.40
Yield
4.9 %
Fund Size
£ 629.5 million
NAV
417
Gearing
110
Discount Premium
-14
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 %
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 Resou 4% 31/12/49 3.24 %
Nevsun Resources Ltd 3.18 %
Region %
Canada 27.83 %
United Kingdom 25.24 %
Latin America 16.08 %
Australasia 14.08 %
Europe - ex Euro 9.93 %
Sector %
Basic materials 99.49 %
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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