BlackRock World Mining Trust: (BRWM.L, FTSE 250 Index, Market Cap £1006m, 523p, 5.0% of JIC Portfolio (target 5.0%) and 5.0% of JIC Funds Portfolio (target 5.0%).
On Friday, this trust closed at a 12-month low and below my Falling Review Price of 533p.
The Chinese economy is performing poorly, and commodity prices have gotten off to a poor start in 2024. I have a large exposure to commodity companies and need this weakness to reverse. At some stage, it will, but the risk is it takes longer than I would like. In the meantime, there are plenty of opportunities elsewhere, especially in, for instance, UK smaller and mid-cap companies.
In short, it’s time to grasp the nettle again and reduce my high commodity exposure in both Portfolios. I’m not abandoning my view that commodities will eventually perform well due to the move to a “green” economy – I do not need such a large position at this stage when there are other attractive uses for the cash.
I have just reduced BlackRock World Mining to 5.0 per cent in both Portfolios. I may be reducing my position at the bottom - I do hope so!
In the JIC Portfolio, I sold 2129 shares at 522.68p, realising £11,117 and a profit on the trade of £1,791. Cash goes up to 1.9 per cent.
In the Funds’ Portfolio, I sold 321 shares at 522.7p, raising £1,669 and realising a profit of £398.61. cash goes up to 1.7 per cent.
