#387221
Postby tjh290633 » February 16th, 2021, 4:25 pm
Natural Resources have been cyclical over the years. I have held JP Morgan Natural Resources and its predecessors since 1970, over which time there has been a steady, but not uninterropted, rise in unit value. There are dips in 1974, 1981, 1999, 2009 and in 2020. It's not all miners, of course, but much of it is.
I have held BHP since 2010 and RIO since 2016. BHP has been topped up 5 times, first bought at £19.94, then topped up twice in 2013 at £17.98 and £17.89, again twice in 2015 at £14.46 and £13.12, and finally in 2019 at £17.30. South32 was also demerged in 2015. £22.28 at last night's close. IRR 8%.
RIO, on the other hand, was bought in 2016 in two tranches, at £22.09 and £20.29, the trimmed back when overweight in 2016 at £31.97, again in 2019 at £47.26 but topped up later in 2019 at £41.18 and trimmed back yet again in 2020 at £46.38. £61.86 at last night's close. IRR 36%.
There is a big difference in their performance.
South32 has had its ups and downs since the demerger 2015, initially at £1.16. I have added to what I received at £1.02, soon after demerger, in 2018 at £1.88, twice in 2019 at £1.86 and £1.56, and again that same year at £1.36. £1.48 at last night's close, IRR 3.7%, but a single share would have given 8.1% since the demerger.
It does not look as if splitting off S32 has had any big effect on BHP.
RIO has had much bigger rises in dividend so far, from 134.36p in 2016 to 297.21p from the last two dividends and they report their final tomorrow. BHP cut its dividend in 2016, to 30cents, from 124cents in 2015, now 156cents with the last two declared, which rather shows it up.
Always an interesting ride.
TJH