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BlackRock World Mining boosts income

IC Top 100 Funds update: BlackRock World Mining is exploiting difficulties in the mining sector to generate an attractive income.

The mining sector has significantly lagged the general equity market in recent years and, as a result, funds focused on this area have also suffered, including IC Top 100 Fund BlackRock World Mining (BRWM) investment trust. But its managers are more optimistic on the prospects going ahead, while the trust has fared relatively better than many in this area: it has beaten its benchmark, Euromoney Global Mining index and its sector average over one, three and five years, albeit with negative returns over one and three years.

"Recently the trust's shareholders have been insulated to a certain extent from the poor performance of the mining sector by a significant narrowing of the fund's discount, which now stands at 3.76 per cent," add analysts at Winterflood.

This is partly due to the trust's dividend increasing over recent years so that the yield is 4.52 per cent. The trust increased its dividend considerably in 2012 (read our tip on this), and maintaining a good level of payout remains a focus.

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