22 Nov 2023 13:58
CQS Natural Resources Growth & Income PLC
Monthly Investor Report - October 2023
The full monthly factsheet is now available on the Company's website and a summary can be found below.
https://ncim.co.uk/wp/wp-content/uploads/2023/11/CQS-New-City-CNR-10.23.pdf
Enquiries:
For the Investment Manager
CQS (UK) LLPCraig ClelandEmail: contactncim@cqsm.comTel: 0207 201 5368
For the Company Secretary and AdministratorFrostrow Capital LLPEleanor CranmerEmail: cosec@frostrow.comTel: 0203 008 4613
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Fund Description
The Fund aims to generate capital growth and income, predominantly from a portfolio of mining and resource equities, and from mining, resource and industrial fixed interest securities.
Portfolio Managers
Ian Francis, Keith Watson, and Robert Crayfourd
Key Advantages for the Investor
· Access to under-researched, mid and smaller-cap companies in the Natural Resources sector
· Quarterly dividend paid to shareholders
· Potential inflation hedge
Key Fund Facts
Total Gross Assets | £148.14m |
Reference Currency | GBP |
Ordinary Shares: | |
Net Asset Value | 200.54p |
Mid-Market Price | 166.50p |
Dividend Yield (estimated) | 3.4% |
Net gearing | 10.3% |
Discount | (16.98%) |
Ordinary Share and NAV Performance
| One Month | Three Months | Six Months | One Year | Three Years | Five Years | Since Inception |
| (%) | (%) | (%) | (%) | (%) | (%) | (%) |
NAV | -4.2 | -4.6 | 1.6 | -9.4 | 104.6 | 111.7 | 596.3 |
Share Price | -6.3 | -5.8 | -2.9 | -14.8 | 109.0 | 113.1 | 541.1 |
Commentary
The Fund NAV declined 4.2% in October, versus respective declines of 2.6% and 2.9% for the MSCI World Energy and MSCI World Mining in sterling terms.
We continue to monitor the tragic events in Israel and Gaza closely. Middle Eastern tensions have wider implications for commodities, especially if Iran are drawn into the conflict either directly or through one of their proxies like Hezbollah in Lebanon. Sanctions on Iranian crude or any threats to crude exports through the Straits of Hormuz would lift oil prices.
Commodities were generally weaker over the month with base metals, oil and gas lower. Oil is showing little "war premium" at this stage, as broader demand concerns weigh and higher rates begin to show slowing effects on the global economy.
Gold was stronger, up 7.3% over the month, trading close to all-time highs and at the highest level in most currencies other than the US dollar. Part of this was due to the Middle Eastern tensions, with physical ETF's switching from sellers to buyers in the middle of the month. The main demand driver remains central banks, with the World Gold Council reporting further strong additions through the third quarter, with 337 tonnes added. The WGC also revised up their estimates for old purchases in the second quarter of the year from 103 tonnes to 175 tonnes.
The Fund saw gains from oil and gas shippers BWLPG and Frontline, as well as Australian gold producers Ora Banda and Calidus Resources. Oil and gas drillers Transocean and Precision Drilling were detractors as the oil price pulled back.
CQS Natural Resources Growth & Income Trust (CYN)