Top Stock Fund Wagers BHP, Rio Tinto Will Weather Iron-Ore Slump
- Low costs, China exposure aid Australian miners: First Sentier
- Fund has gained 10% this year, beating more than 90% of peers
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A top equities fund manager is backing BHP Group Ltd. and Rio Tinto Ltd., betting they can withstand softer iron-ore prices and will benefit as China’s reopening boosts demand for the commodity.
Australian producers are attractive as they have relatively low operating costs and high exposure to the mainland, the world’s largest consumer of the steel-making ingredient, according to David Wilson, who oversees the equivalent of $5.3 billion at Australia-focused First Sentier Wholesale Geared Share Fund. The fund has returned 10% this year, beating more than 90% of its peers.