Monthly Investor Report – October 2023

CQS Natural Resources Grwth&Inc PLC
22 November 2023
 

 

 

 

 

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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) LLP
Craig Cleland
Email:
contactncim@cqsm.com
Tel: 0207 201 5368

 

For the Company Secretary and Administrator
Frostrow Capital LLP
Eleanor Cranmer
Email:
cosec@frostrow.com
Tel: 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.

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