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About this investment trust

The Company aims to provide a diversified investment in mining and metal  assets worldwide, actively managed with the objective of maximising  total returns. 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. Up to 10% of gross assets may be held in physical  metals and up to 20% may be invested in unquoted investments.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Why choose it?

BlackRock’s experienced natural resources team looks across the globe to build a diversified portfolio of mining stocks, exposed to a range of compelling long-term themes – decarbonisation, digitalisation or the development of renewable energy sources. This is balanced with investment in more traditional areas such as gold and precious metals, designed to provide long-term capital growth and a diversifying income stream.

Suited to…

Investors looking for a specialist mining Trust to provide long-term diversification of income and capital, geared to the changing dynamics of the global economy. These companies can be volatile, so some tolerance for market uncertainty is important.

kelper      AJ Bell Award: As at 3 September 2021.    

Kepler Rating: As at 20 January 2021.
AJ Bell Award: As at 3 September 2021.

Past performance is not a reliable indicator of future results and should not be the sole factor of consideration when selecting a product or strategy.

What are the risks?

  • Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
  • Overseas investment will be affected by movements in currency exchange rates.
  • Emerging market investments are usually associated with higher investment risk than developed market investments. Therefore the value of these investments may be unpredictable and subject to greater variation.
  • Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall.
  • Mining shares typically experience above average volatility when compared to other investments. Trends which occur within the general equity market may not be mirrored within mining securities.

Useful information

Fees & Charges

Annual expenses as at Date: 31/12/20

Ongoing charges (including any performance fee): 0.99%

Management Fee Summary: BlackRock receives an annual management fee of 0.8% of the Company's net assets. However, in the event that the NAV per share increases on a quarter-on-quarter basis, the fee will be paid on gross assets for the quarter.

  • ISIN: GB0005774855

    Sedol: 0577485

    Bloomberg: BRWM LN

    Reuters: BRWM.L

    LSE code: BRWM

  • Name of Company: BlackRock Fund Managers Limited

    Telephone: 020 7743 3000

    Email: cosec@blackrock.com

    Website: www.blackrock.com/uk

    Correspondence Address: Investor Services

    BlackRock Investment Management (UK) Limited

    12 Throgmorton Avenue

    London

    EC2N 2DL

    Name of Registrar: Computershare PLC

    Registered Office: 12 Throgmorton Avenue

    London

    EC2N 2DL

    Registrar Telephone: +44 (0)370 707 1187

    Place of Registration: England

    Registered Number: 2868209

  • Year End: 31 December

    Results Announced: August (half yearly), February (final)

    AGM: April/May

    Dividends Paid: May (final), June, September, December

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The Board’s approach to ESG

Environmental, social and governance (ESG) issues can present both opportunities and threats to long-term investment performance. The Company’s investment universe comprises sectors that are likely to be highly impacted by increasing regulation as a result of climate change and other social and governance factors. These ethical and sustainability issues cannot be ignored, and your Board has appointed a Manager that applies the highest standards of ESG practice. Effective engagement with management is, in most cases, the most constructive way of driving meaningful change in the behaviour of investee company management. However, as a general approach the Company will not invest in companies which have high ESG risks and no plans to address existing deficiencies. Where the Board is not satisfied that an investee company is taking steps to address matters of an ESG nature, it may discuss with the Manager how this situation might be resolved, including potentially by a full disposal of shares.

Sustainable investing: BlackRock’s approach

Sustainability is BlackRock’s standard for investing, based on the investment conviction that integrating sustainability can help investors build more resilient portfolios and achieve better long term, risk-adjusted returns. BlackRock believes that climate change is a defining factor in companies’ long-term prospects and that it will have a significant and lasting impact on economic growth and prosperity. BlackRock believes that climate risk equates to investment risk and this will drive a profound reassessment of risk and asset values as investors seek to react to the impact of climate policy changes.

Environmental, Social and Governance: integration into BlackRock’s investment management process

Environmental, Social and Governance (ESG) investing is often used interchangeably with the term “sustainable investing.” BlackRock has identified sustainable investing as being the overall framework and ESG as a data toolkit for identifying and informing our solutions. BlackRock has defined ESG Integration as the practice of incorporating material ESG information and consideration of sustainability risks into investment decisions in order to enhance risk-adjusted returns. BlackRock recognises the relevance of material ESG information across all asset classes and styles of portfolio management. ESG information and sustainability risks are included as a consideration in investment research, portfolio construction, portfolio review and investment stewardship processes. The Investment Manager considers ESG insights and data, including sustainability risks, within the total set of information in its research process and makes a determination as to the materiality of such information in its investment process. ESG insights are not the sole consideration when making investment decisions. The Investment Manager’s evaluation of ESG data may be subjective and could change over time in light of emerging sustainability risks or changing market conditions. This approach is consistent with the Investment Manager’s regulatory duty to manage the Company in accordance with its investment objective and policy and in the best interests of the Company’s investors. The Investment Manager’s Risk and Quantitative Analysis group will review portfolios to ensure that sustainability risks are considered regularly alongside traditional financial risks, that investment decisions are taken in light of relevant sustainability risks and that decisions exposing portfolios to sustainability risks are deliberate, and the risks diversified and scaled according to the investment objectives of the Company.

BlackRock’s approach to ESG integration is to broaden the total amount of information the Investment Manager considers with the aim of improving investment analysis and understanding the likely impact of sustainability risks on the Company’s investments. The Investment Manager assesses a variety of economic and financial indicators, which may include ESG data and insights, to make investment decisions appropriate for the Company objectives. This can include relevant third-party insights or data, internal research or engagement commentary and input from BlackRock Investment Stewardship.

ESG integration does not change the Company’s investment objective or constrain the Investment Manager’s investable universe and does not mean that an ESG investment strategy or exclusionary screens has been or will be adopted by the Company. Similarly, ESG integration does not determine the extent to which the Company may be impacted by sustainability risks.

Investment stewardship

BlackRock undertakes investment stewardship engagements and proxy voting with the goal of protecting and enhancing the long-term value of clients’ investments for relevant asset classes. In our experience, sustainable financial performance and value creation are enhanced by sound governance practices, including risk management oversight, board accountability, and compliance with regulations. We focus on board composition, effectiveness and accountability as a top priority. In our experience, high standards of corporate governance are the foundations of board leadership and oversight. We engage to better understand how boards assess their effectiveness and performance, as well as their position on director responsibilities and commitments, turnover and succession planning, crisis management and diversity.  For further details regarding BlackRock’s work on investment stewardship please refer to the website here.

Fund manager commentary

30 November 2021

Please note that the commentary below includes historic information in respect of performance data in respect of portfolio investments, index performance data and the Company’s NAV performance.

The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results

Performance

The Company’s NAV returned +0.5% in November, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which fell by 0.1% (Figures in GBP).

Global equity markets came under pressure in November after the emergence of a new COVID-19 variant, Omicron, feared to be more transmissible and more resistant to vaccines than previous strains. Federal Reserve Chairman, Jerome Powell, added to investor fears when he indicated the committee would be discussing potentially accelerating its tapering program at the upcoming December meeting. In terms of key macro data for the mining sector, China’s year-on-year industrial production growth was relatively soft at 3.5%, whilst the country’s steel production continued to decline. Bulk commodity prices were weak, with the iron ore (62% fe.) price falling a further 6.6% over the month, ending at $106/tonne. Meanwhile, energy market shortages eased, causing thermal coal prices to decline along with some of the more energy-intensive commodities, such as aluminium. Elsewhere in the base metal space, the copper price was down by 3.0% but the physical market remained very tight, with copper for immediate delivery trading at a significant premium.

Strategy and Outlook

We believe the outlook for mined commodity prices remains robust, whilst mining shares offer attractive value. Recovering global economic growth, accommodative monetary policy, rising government spending and increased focused on green capital investment all point towards strong demand. Meanwhile, supply is constrained following years of capital discipline from the producers, and we are seeing no signs that this is set to change.

We are encouraged by what we are hearing from management teams in terms of maintaining their focus on capital discipline. Longer-term, ill-discipline remains a risk but, regardless, increases in capital expenditure would take some time to feed through into new supply given the time-lags associated with mining projects. We are also seeing inflationary data increase and commodities have traditionally been a core way for investors to both protect themselves from this but also benefit from such trends.

We believe the best risk-adjusted opportunity today is in the shares of mining companies in robust financial positions with strong balance sheets and high levels of free cash flow. Mining companies are continuing to return capital to shareholders through dividends and buybacks.

All data points are in USD terms unless stated otherwise.

Unless otherwise stated all data is sourced from BlackRock as at 30 November 2021. 

Information correct as at 20 December 2021.

Any opinions, forecasts represent an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. 

This information should not be relied upon by the reader as research, investment advice or a recommendation.

Risk: Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies.

Portfolio manager biographies

Evy Hambro is co-manager of the BlackRock World Mining Trust plc, and is Global Head of Thematic and Sector Investing, as well as the Head of the Natural Resources Equity Team. He sits on the BlackRock Global Operating Committee and is a member of the Alpha Strategies Partner Group. He is also manager of a number of the team's portfolios covering the mining, gold and circular economy strategies. His service with the firm dates back to 1994, including his years with Mercury Asset Management and Merrill Lynch Investment Managers which merged with BlackRock in 2006. Evy has a degree in agricultural food marketing.

Olivia Markham is co-manager of the BlackRock World Mining Trust plc. As a member of the Natural Resources team, Olivia is responsible for coverage of the gold, mining and circular economy strategies and is involved in the management of a number of the team's portfolios. She joined BlackRock in 2011. Previously, she was head of the European Mining team at UBS with lead coverage of the UK diversified miners. She also spent four years working within the mergers and acquisitions team at BHP Billiton. Olivia has a degree in finance.

Evy Hambro profile photo
Evy Hambro
Portfolio Manager
Olivia Markham profile photo
Olivia Markham
Portfolio Manager

Board of directors

All the Directors are non-executive. The Board as a whole constitutes the Audit & Management Engagement Committee.

David Cheyne (appointed 1 June 2012) (Chairman since 2 May 2019) is a Senior Adviser to Akira Partners LLP and a Trustee of the RAF Benevolent Fund and Stowe School Foundation. He retired as a consultant at Linklaters on 31 July 2015 where he was Senior Partner from 2006 to 2011 and a Partner from 1980. Throughout his career at Linklaters he played a central role in a wide range of corporate transactions, including M&A deals, joint ventures, flotations and general corporate finance work. In particular, he advised on a number of large mining transactions. He was also Vice Chairman of EMEA (Europe, Middle East and Africa) Investment Banking at Moelis & Company from 2011 to 2015.

Russell Edey (appointed 8 May 2014) (Chairman of the Audit & Management Engagement Committee and Senior Independent Director) is a Non-Executive Director of Genesis Emerging Markets Fund Limited and a Trustee of the Essex Community Foundation. He retired as Chairman of Avocet Mining PLC in March 2018 having been on the board since 2010, served as a Non-Executive Director of Old Mutual PLC from June 2004 to May 2013, and retired as Chairman of AngloGold Ashanti Limited in May 2010 having been a member of that company's board since 1998. In June 2014, he retired as a Non-Executive Director of several companies in the Rothschild Group which he joined in 1977. Prior to that, he worked for Anglo American Corporation of South Africa Limited in South Africa and Australia.

Judith Mosely (appointed 19 August 2014) is a Non-Executive Director of Galiano Gold Inc. and Eldorado Gold Corp. and a Non-Executive Director of Women in Mining (UK) which promotes the role of women in the mining industry. She is also trustee of the Camborne School of Mines Trust and a Liveryman of the Worshipful Company of Fan Makers and a consultant with Northcott Capital, a financial advisory company that specialises principally in debt finance in the mining and power sectors. At the end of 2019, she retired as Business Development Director for Rand Merchant Bank with responsibility for developing the bank’s African business with international mining and metals companies. She was previously Head of the Mining Finance Team at Société Générale London branch and, in her early career, worked for National Westminster Bank’s International Division and Hambros Bank.

Jane Lewis (appointed 28 April 2016) is an investment trust specialist who, until August 2013, was a Director of Corporate Finance and Broking at Winterflood Investment Trusts. Prior to this, she worked at Henderson Global Investors and Gartmore Investment Management Limited in investment trust business development and at West LB Panmure as an investment trust broker. She is Chairman of Invesco Perpetual UK Smaller Companies Investment Trust plc and a Non-Executive Director of BMO Capital and Income Investment Trust plc, The Scottish Investment Trust plc and Majedie Investments PLC.

Srinivasan Venkatakrishnan (appointed 1 August 2021) brings a wealth of mining and financial experience to the Board gained through his vast experience of leading global mining businesses, in a career that spans across six continents and several metals, notably gold. He served as CEO of Vedanta Resources plc from 2018 to 2020 and was CEO of AngloGold Ashanti Limited between 2013 to 2018, having previously been Chief Financial Officer of the business from 2005, and of Ashanti Goldfields Limited from 2000. His earlier career was as an accountant and restructuring specialist with Deloitte & Touche in India and the UK. He is currently a Non-Executive Director of The Weir Group PLC and Roscan Gold Corporation.

Investment strategies targeting growth and income
Investment strategies targeting growth and income
Over 28 years of proven experience running investment trusts (Dec 2020)
Over 28 years of proven experience running investment trusts (Dec 2020)
Unparalleled research capabilities
Unparalleled research capabilities and experienced stock pickers
Contact
To get in touch contact us on:
Telephone: 020 7743 3000
Email: cosec@blackrock.com

MKTGM0821E/S-1755894