New Rating
TM Hearthstone UK Residential Fund - New rating
- Home
- Investment Research
- Fund rating changes and launches
- Blackrock World Mining Trust - Downgraded
Rating downgraded
Newton Global Income - Downgraded
New Rating
Fundsmith Equity - New rating
New Rating
CC Japan Income & Growth Trust (CCJI) - New rating
New Rating
Legg Mason IF Japan Equity - New rating
New Rating
Old Mutual North American Equity - New rating
New Rating
AXA Framlington Japan - New rating
New Rating
T Rowe Price US Smaller Companies Equity - New rating
Suspended
City Natural Resources High Yield Trust - Rating suspended
New Rating
Vanguard FTSE Developed Europe ex-UK Equity Index - New rating
New Rating
Vanguard FTSE Developed World ex-UK Equity Index - New rating
New Rating
Vanguard FTSE UK Equity Income Index - New rating
New Rating
Vanguard UK Government Bond Index - New rating
New Rating
Vanguard UK Inflation-Linked Gilt Index - New rating
New Rating
Vanguard US Equity Index - New rating
New Rating
Fidelity Index Pacific ex Japan - New rating
New Rating
Fidelity Index Japan - New rating
New Rating
Fidelity Index Emerging Markets - New rating
New Rating
Insight Strategic Bond - New rating
New Rating
Henderson Fixed Interest Monthly Income - New rating
New Rating
Fulcrum Diversified Core Absolute Return - New rating
New Rating
JPM Multi-Asset Macro - New rating
New Rating
F&C Responsible Global Equity - New rating
Rating downgraded
Aberdeen Ethical World Equity - Downgraded
New Rating
Standard Life Investments Property Income Trust - New rating
New Rating
ETFS Physical Gold GBP - New Rating
Rating upgraded
BlackRock Gold & General - Upgraded
New Rating
JPM Emerging Markets Income - New rating
New Rating
Loomis Sayles US Equity Leaders - New Rating
New Rating
Old Mutual Global Equity - New rating
New Rating
Jo Hambro CM Global Opportunities - New rating
New Rating
Fidelity Global Enhanced Income - New rating
New Rating
Ardevora Global Long Only Equity - New rating
Rating downgraded
British Empire IT - Downgraded
New Rating
F&C Real Estate Securities - New rating
Rating downgraded
Morgan Stanley Diversified Alpha Plus - Downgraded
New Rating
Ardevora UK Income - New rating
New Rating
Old Mutual UK Equity Income - New rating
New Rating
Newton Global Emerging Markets W - New rating
New Rating
RobecoSAM Smart Materials Fund - New rating
Rating downgraded
Blackrock World Mining Trust - Downgraded
Rating downgraded
Aberdeen Global Indian Equity - Downgraded
Rating downgraded
Aberdeen Asian Income Fund - Downgraded
Rating downgraded
Aberdeen Global Asian Smaller Companies - Downgraded
Rating downgraded
Aberdeen Asian Smaller Companies IT - Downgraded
Rating downgraded
Edinburgh Dragon IT - Downgraded
Rating downgraded
Aberdeen New Dawn IT - Downgraded
Rating downgraded
Aberdeen Asia Pacific & Japan Equity - Downgraded
Rating downgraded
Aberdeen Asia Pacific Equity - Downgraded
Rating downgraded
Aberdeen Global Asia Pacific Equity - Downgraded
New launch
P2P Global Investments C-share issue
Rating downgraded
Murray International - Downgraded
Rating downgraded
Aberdeen World Equity Income - Downgraded
Rating downgraded
Aberdeen World Equity - Downgraded
Rating upgraded
Artemis Global Income - Rating upgraded
New Rating
Threadneedle Dynamic Real Return - New rating
Suspended
BlackRock UK Special Situations - Rating suspended
Rating downgraded
Templeton Emerging Markets Trust (TEM) - Downgraded
Rating downgraded
iShares S&P SmallCap 600 UCITS ETF - New rating
New Rating
SSGA SPDR Barclays 1-5 year Gilt UCITS ETF - New rating
Rating downgraded
Standard Life UK Smaller Companies IT - Downgraded
Rating downgraded
Standard Life UK Smaller Companies - Downgraded
Rating downgraded
Schroder UK 250 Mid Cap - Downgraded
Rating downgraded
Montanaro UK Smaller Companies - Downgraded
Rating downgraded
Artemis UK Smaller Companies - Downgraded
Rating downgraded
Old Mutual UK Smaller Companies - Downgraded
Rating upgraded
Franklin UK Smaller Companies - Rating upgraded
Rating downgraded
Newton Asian Income - Downgraded
New Rating
F&C UK Property fund - New rating
Rating downgraded
Lazard Emerging Markets - Downgraded
New Rating
Fidelity Emerging Markets - New rating
New Rating
F&C European Small Cap ex UK Fund - New rating
Rating downgraded
Templeton Emerging Markets Investment Trust - Downgraded
New Rating
Fidelity UK Smaller Companies - New rating
New Rating
AXA Framlington UK Smaller Companies - New rating
New Rating
Tritax Big Box - New rating
New Rating
Woodford Patient Capital Trust - New rating
New Rating
Artemis Global Income - New rating
New Rating
Empiric Student Property - New rating
Rating downgraded
TM Sanditon European fund - New rating
Suspended
UK Commercial Property Trust - Rating suspended
Rating downgraded
BlueCrest BlueTrend (BBTS) - Downgraded
Rating downgraded
Blackrock World Mining Trust - Downgraded
Since 2011 Blackrock World Mining Trust (BRWM) has emphasised yield as a way of limiting the trust’s discount to net asset value (NAV).
In order to boost income, it has developed three unconventional revenue streams, to complement the dividends from the underlying equity portfolio: direct investment in mining royalty contracts, a portfolio of high yield bonds and a policy of writing options to harvest the premium.
Since then, NAV performance has been generally disappointing, although it has, to a degree, been offset by a narrowing of the discount to the NAV on which the shares trade.
The recent setback in commodity prices is placing extra pressure upon the mining sector, which had been collectively hoping for an improvement in its fortunes in the second half of the year.
This situation highlights the prospect that BRWM’s historic dividend which is likely to be uncovered this year and beyond. In its recent interim results statement BRWM acknowledged the dilemma it faces in this respect: “the Company is prepared to use revenue reserves to maintain the current dividend level in 2015. Future use of reserves will depend on the Board’s confidence in returning to a fully covered position in the near term”. Recent events also draw attention to the high underlying capital risk profile implied by the exposure implicit in BRWM’s three unconventional income sources. This combination of factors and the current modest discount to NAV, suggests that the shares are increasingly vulnerable to a potential derating, via a widening of the discount.
Holders may therefore consider reviewing the merits of retaining the shares.
The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This article does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers. Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest. You should make yourself aware of these specific risks prior to investing.