Hambro rules out action as World Mining trust discount hits 14%

BlackRock's Evy Hambro has ruled out the introduction of a discount control mechanism (DCM) to rein in the discount on his £1.6bn BlackRock World Mining trust.

The trust’s discount is 14%, higher than the 9.1% average for the entire investment trust universe at the end of February. Alliance Trust is one example of a trust under pressure to control its discount. It is facing calls from activist investor Laxey Partners to buy back shares if the trust’s discount to net asset value exceeds 10%. Hambro says he is not facing a similar decision. The manager adds the board has quizzed shareholders about the prospect but they are not in favour as they fear the trust’s share price would be damaged. “The board has spoken to shareholders about the pr...