(Alliance News) - CQS Natural Resources Growth & Income PLC on Monday said its net asset value increased in its latest year, but delivered a lower return than its benchmark.
The London-based investor, which provides exposure to mining and resource-focused equities, said its NAV at June 30 was 204.16 pence per share, up 1.1% from 201.94p at the same time one year prior.
Shares in CQS Natural Resources were up 0.5% at 169.40p on Monday afternoon in London.
CQS also declared a total dividend of 8.60p per share for the year ended June 30, up 54% from 5.60p the previous year. This included a 3.00p special interim dividend paid on October 16.
The company reported a positive 3.5% NAV total return for the year, compared with positive 6.3% from its composite benchmark.
CQS said it has to date assessed its performance against an approximate composite proxy comprising 80% of the EMIX Global Mining index, which ceased publication in July, and 20% of the Credit Suisse High Yield index.
Going forward, CQS said it will publish its NAV performance alongside the MSCI World Metals & Mining and MSCI World Energy Sector indexes, rather than using a formal benchmark.
"The old adage that 'this has been a year of two halves' has proved to be very true... at the start of 2023, the NAV was up 17.2% and the company was successfully navigating the tricky global economic and political environment," remarked Chair Helen Green.
"Six months later, the background is more difficult...Delivering a positive return for the year is to be commended though, as high inflation and interest rates have weighed upon global growth prospects and depressed many equity benchmarks," she added.
Looking ahead, CQS Natural Resources expects "the ongoing energy transition" to deliver long-term gains to investors, and believes it is "well placed to benefit from demand for resources" thanks to its diverse portfolio.
By Emma Curzon, Alliance News reporter
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CQS Natural Resources (CYN)