Why mining shares could matter even if you never bought one

You may already be invested in mining shares without even realising it. If you have a retirement fund or Top 40 investment, this is worth a read.

South African fund managers have increased their exposure to mining shares to the highest level in five years, according to the latest Bank of America Global Research survey reported by Reuters.

If you work in an office, contribute to a retirement fund every month or invest in a Top 40 exchange-traded fund (ETF), the news could affect you even if you have never bought a mining share.

Many retirement funds, pension products and local equity funds invest in some of the biggest companies listed on the Johannesburg Stock Exchange (JSE). That often includes mining companies. If those shares perform well, the value of your investment may also benefit. If the mining sector comes under pressure, your investment could also be affected.

That does not mean you should rush out and buy or sell anything. It simply means it is worth knowing what your retirement or investment fund already owns.

If you contribute to a pension or provident fund through your employer, start by asking your human resources department or fund administrator which investment fund your money is invested in. If you invest through a bank, investment platform or financial adviser, you can usually find the latest fund factsheet by logging into your online account or visiting the provider's website. The factsheet will show the fund's largest investments, including whether it has exposure to mining companies.

The renewed interest in mining shares is a reminder that your money may already be linked to the sector without you ever buying a single mining share yourself. Understanding where your retirement savings or investments are placed is often the first step towards making informed financial decisions.