BlackRock World Mining (BRWM)

BlackRock World Mining (BRWM) has outperformed global equity indices over the past five years, despite those indices being increasingly dominated by the large cap tech stocks and the AI trade (see Performance). The miners in which BRWM invests produce materials that are absolutely essential to the buildout of AI, as well as to the energy transition, thrust back to the top of the agenda by the recent European heatwave. This has been behind much of the trust’s success, along with a sharp rally for gold and gold miners over 2025.

There was a bit of a flight to liquidity in March when war broke out, but the trust’s NAV has stabilised close to its highs and the share price remains close to NAV, with the Discount at 3.1% and the trust trading on a small premium at times, perhaps indicating that investors recognise the strength of the long-term trends which should continue notwithstanding the conflict in the Middle East.

In recent months, managers Evy Hambro and Olivia Markham have been looking to add back in to gold miners after their sell-off, in particular to some more defensive royalty and streaming companies which aren’t as affected by rising energy and labour costs. The portfolio has more in the large cap diversifieds than it did entering the year, with the managers liking them on a mixture of valuation, commodity mix and restructuring grounds (see Portfolio). Gearing remains at relatively modest levels, reflecting some near term risks surrounding the war’s economic impact.

The yield is 2.5% at the time of writing, with a barnstorming 2025 for the portfolio having an impact on the denominator. The sale of a BHP royalty last year removes a significant contributor to the income, but the managers are optimistic that the bumper year for commodity prices last year will feed through into higher dividends in the sector this year.