The spike in inflation has led to renewed interest in commodity assets , with the
BlackRock World Mining Trust one of the biggest beneficiaries in the UK – it has gone from a doubledigit discount in late 2020 to a slight premium today . This has helped super-charge its recent returns , and although an extended commodities bear market meant it went nowhere between 2012 and 2020 , it is now up 119.8 % over the past 10 years . Emma Bird , an analyst at Winterflood , said that like all commodities vehicles , the trust has benefited from the war in Ukraine and pre-existing supply chain issues , which have driven up the price of natural resources . However , she said these are not the main themes that will drive future returns . “ The positive backdrop is forecasted to persist over the medium term , with further demand growth anticipated from increased global fiscal infrastructure spending and ongoing supply constraints following a prolonged period of underinvestment by mining companies .” Olivia Markham , who manages the trust alongside Evy Hambro , is particularly excited about the mining investment cycle linked to decarbonisation , which she said could end up lasting for decades . This is focused on key metals needed for the electrification of the economy – copper , cobalt , lithium , nickel and rare earths . “ Commodity prices need to stay
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