Buying by general investment funds Artemis Income Fund and Old Mutual UK Alpha Fund.
The most significant change has been in the management of the mining companies. The CEOs of Rio Tinto, Anglo American and BHP Billiton have all stepped down. Efforts are being made to bring costs under control and some companies have increased the amount they are returning to shareholders through dividends and share buybacks.
Following their recent poor performance, valuations are also starting to look attractive and this is gaining the attention of investors...........................................
We are encouraged by the fact that the forecasts and outlook for miners already incorporate falling commodity prices yet the resultant cash flows and dividend potential still looks attractive.
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