REG - CQS Natural Res - Update on Portfolio Position/Rebalancing

CQS Natural Resources Growth and IncomeAnnouncement

11/03/2026 07:00

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RNS Number : 1256W  CQS Natural Resources Grwth&Inc PLC  11 March 2026

CQS Natural Resources Growth and Income PLC

(the "Company")

LEI: 549300ES8CNIK2CQR054

11 March 2026

Update on Portfolio Position/Rebalancing

Given recent market volatility caused by geopolitical tensions and uncertainty
of the impact on energy related commodities due to the Iranian war, the
Company would like to provide an update on the current portfolio position.

Since December 2025, the portfolio managers have been steadily reallocating
from precious metals to energy related equities. As a result, the current gold
and silver miner weighting in the portfolio is currently approximately 37%
(down from 49% as at end-Jan & 56% as at end-Dec), whilst the portfolio's
energy weighting (including oil and gas producers, refiners, rigs, shipping
and coal) is at approximately 34% (up from 24% as at end-Jan & 17% as at
end-Dec). The Company also maintains a further 11% in uranium miners (down
from 13% as at end-Jan 12% as at end-Dec).

While the portfolio managers continue to hold a positive outlook on the
precious metal miners, with it remaining the portfolio's single largest
weighting, they took a conscious decision to re-weight the portfolio over
recent months given the evolving geopolitical situation in the Middle East
that was felt to warrant a higher energy risk premium. As a result, profits
derived from the precious metals exposure were used to fund this reallocation
into energy.

This re-weighting has proven to have been the right decision as, year to date
(6 March 2026), the Company's net asset value has grown from 349.88 pence per
share to 420.85 pence per share at the close on 6 March 2026, a total return
uplift of 22.6%, versus 17.6% for the MSCI World Metals and Mining and 24.3%
for the MSCI World Energy indices (sterling adjusted). Events around the
Straits of Hormuz remain dynamic and as a result your Board may provide future
ad hoc updates on the portfolio positioning if deemed appropriate.

While market conditions remain highly volatile, the portfolio managers
continue to keep a close eye on developments in the Middle East and will
continue to adjust the portfolio to maximise the performance of the Company
and shareholder value. Despite a co-ordinated global release of strategic oil
reserves in an effort to calm markets, at the time of writing, Brent crude has
risen 26% in March and gained 50% higher since the beginning of the year. The
medium-term view of the portfolio managers underpinning this re-weighting is
that the fundamental backdrop for energy related equities has now improved.
Having kept a low weighting in energy for the last two years, as OPEC focused
on regaining share, it is likely that the oil market is moving from a position
of oversupply to one of balance, leaving the market exposed to supply shocks.

Despite efforts by the US Administration to talk down the duration of the war,
at this point in time there remains risk of protracted disruption in the
Strait of Hormuz, through which 20 million barrels of oil pass each day,
equivalent to 20% of global supply, alongside 25% of global LNG supplies. As
an example, Yemen Houthi rebels inflicted disrupted shipping through the Red
Sea for two years: a better equipped and organised Islamic Revolutionary Guard
Corps (IRGC) represents a significant threat to continued disruption of global
oil and gas supply, despite the presence of a western naval fleet amassing in
the area. This will likely manifest itself through a restriction in the
availability of shipping and cargo insurance thereby impacting trade flows
through the Strait. Furthermore, the Iranian response to the US attacks has
been focused on targeting energy infrastructure in recognition that a higher
oil price may be their best method of applying pressure on the US
Administration. In addition, as seen with the ongoing Russia-Ukraine war, the
use of low-tech strike drones by Iran may deplete the West's supply of defence
interceptors that are both more expensive and have a longer resupply lead
time. This suggests the planned swift resolution to conflict may become a war
of attrition, which could prolong the disruption to shipping and warrant a
more sustained energy risk premium which the manager believes is not fully
reflected in related equities.

The portfolio managers believe that precious metals and energy are likely to
fare well in this unfolding and uncertain geopolitical environment and global
economic stress, as investors seek safe haven investments. In this
macroeconomic and geopolitical environment, the portfolio managers believe
that copper exposure is less attractive given lacklustre demand from
consumers, especially in China which is the largest consumer of copper. This
rationale supports the Company's low copper and base metal exposure and the
portfolio manager's preference for a high precious metals and energy
weightings.

 

About CQS Natural Resources Growth and Income PLC

CQS Natural Resources Growth and Income plc (LSE: CYN) is an investment company focused on providing shareholders with capital growth and income from
a portfolio of mining and resource equities and mining, resource, industrial
and other fixed interest securities (including convertible securities and
bonds).

 

For further information, please contact:

 CQS Natural Resources Growth and Income PLC  cyn@tavistock.co.uk

 Christopher Casey, Chairman                  (c/o Tavistock Communications)
 Cavendish Capital Markets, Corporate Broker  +44 (0)20 7220 0500

 Robert Peel, Andrew Worne
 Frostrow Capital LLP, Company Secretary      +44 (0)203 709 2408

 Tasmin Arthurton                             cosec@frostrow.com
 Tavistock, Public Relations                  +44 20 7920 3150

 Jos Simson, Gareth Tredway                   cyn@tavistock.co.uk

 

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