Will Rio Tinto PLC’s Top Institutional Shareholders Like Playing It Safe?

As the volatile short-term environment continues, Rio Tinto PLC (NYSE:RIO) has intentions to continue its cost reductions, mainly regarding operating, evaluation, and sustaining capital costs across the entire business. The company’s drive for the reduction of service and support costs has currently saved $500 million a year. The total annual capital expenditure on projects that have already been approved will likely peak in 2012, but the short-term macroeconomic outlook continues to be volatile. Chinese economic growth continues to be robust but moderating and is slow and uneven in developed economies. Rio Tinto believes that China’s stimulus packages will be effective progressively following the Chinese leadership change, influencing it to reduce its estimates for Chinese GDP growth for the year to being slightly shy of eight percent. Iron ore prices saw a recovery to some extend following a period of sharp decline, but the firm believes that they will continue to be volatile in the near future. Rio Tinto’s copper production will likely rise from 2013 due to better grades and investments at Kennecott and Escondida along with the beginning of production from the Oyu Tolgoi mine in Mongolia. From 2011 to 2015, Rio Tinto believes it will achieve a cumulative annual growth rate reaching 13 percent for copper.

Will Rio Tinto’s largest shareholders increase their holdings?  These institutional firms indicated owning shares of Rio Tinto Plc (NYSE:RIO) in Q3 2012. They reported owning a total of 384,592 shares on 09/30/2012. The shares closed at $46.76 on 09/30/2012.

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Here are the ten largest positions in Rio Tinto Plc at the end of September 30th, 2012.

Neville Rodie & Shaw Inc held 157,420 shares on 09/30/2012 worth $7,360,959. This brought the portfolio total to 0.89%.

Kempner Capital Management Inc. held 98,605 shares on 09/30/2012 worth $4,610,770. This brought the portfolio total to 1.82%.

Galaxy Capital Trading Ltd held 51,500 shares on 09/30/2012 worth $2,408,140. This brought the portfolio total to 1.64%.

BB&T Corp held 29,253 shares on 09/30/2012 worth $1,367,870. This brought the portfolio total to 0.06%.

Connable Office Inc held 25,388 shares on 09/30/2012 worth $1,187,143. This brought the portfolio total to 0.37%.

Fulton Bank N.A. held 9,232 shares on 09/30/2012 worth $431,688. This brought the portfolio total to 0.06%.

Navellier & Associates Inc held 6,925 shares on 09/30/2012 worth $323,813. This brought the portfolio total to 0.01%.

First Republic Investment Management Inc. held 6,269 shares on 09/30/2012 worth $293,138. This brought the portfolio total to 0.01%.

1st Global Advisors Inc. held 0 shares on 09/30/2012 worth $0. This brought the portfolio total to %.

State Farm Mutual Automobile Insurance Co held 13,544,820 shares on 06/30/2012 worth $647,577,863. This brought the portfolio total to 1.34%.

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