BGF World Mining versus BlackRock World Mining

You wouldn't consider buying BGF World Mining fund for your individual savings account (Isa) because it is a Luxembourg fund, but a comparison to its closest UK-based equivalent, BlackRock World Mining investment trust, suggests you wouldn't want to anyway.

Over 10 years, the investment trust has outperformed this open-ended fund by 2.7 per cent in terms of annualised net asset value total return, helped by its annual management charge (AMC) of 1.3 per cent against 1.75 per cent for BGF World Mining.

"Despite this outstanding track record, the average 10-year discount is 13 per cent," says Mr Brierley. Meanwhile, over the same period, the open-ended fund has grown from $23m to $17bn."

The investment trust's current discount of more than 14 per cent means it could be a good moment to buy.

The investment trust is also cheaper than UK domiciled fund BlackRock Gold & General fund, which also has an AMC of 1.75 per cent. This open-ended fund is run by the same manager as BlackRock World Mining investment trust, Evy Hambro, though it cannot be compared to the investment trust for performance because its portfolio is less similar than the Luxembourg fund.

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