BlackRock World Mining Trust aims to maximise total returns from investing in a globally diversified portfolio of mining and metal assets.
BlackRock World Mining Trust (BRWM) aims to maximise total returns from investing in a globally diversified portfolio of mining and metal assets. Its report for the year to 31 December 2018 shows shareholders’ assets of £685 million.
Evy Hambro has managed BRWM since 2009, with Olivia Markham as co-manager since March 2015. They focus on long-term growth opportunities, taking into account trends such at the growing demand for batteries to power everything from iPads to electric vehicles, coupled with an increasing emphasis on sustainability and high environmental, social and governance standards.
Although up to 20% of BRWM’s gross assets can be invested in unquoted securities and up to 10% in physical metals, quoted securities dominate its portfolio. At end-2018, holdings in diversified mining companies accounted for nearly 50% of the portfolio, copper producers for nearly 20%, gold producers for 15%, industrial minerals for 6%, and silver and diamond producers for another 6%.
Dividends from its equity holdings accounted for half BRWM’s revenue in 2018 . Gearing detracted from returns in 2018, due largely to the fourth quarter sell-off in mining shares. The manager considered this overdone, so started 2019 with gearing of 13.5% in hopes of a recovery. Net asset value per share total returns for the year were -11.5%, compared to a -6.2% total return from the EMIX Global Mining index. Share price total returns were -10.7%. With earnings per share up 14% to 18.15p, total dividends were 15.4% higher at 18p. Dividends are paid quarterly. Ongoing charges were 0.93%
BlackRock World Mining