City Natural Resources Growth & Income PLC (LSE: CYN) reported an 87.0% share price total return and a 76.6% net asset value (NAV) total return for the year ended 30 June 2026, outperforming its mining and energy comparators.
The investment trust benefited from its exposure to precious metals during the year before managers reallocated profits towards energy companies as geopolitical conditions changed.
The NAV total return of 76.6% compared with returns of 63.5% from the MSCI World Metals and Mining Index and 34.1% from the MSCI World Energy Index. The share price total return was 87.0%, including reinvested dividends.
The portfolio initially benefited from holdings in gold and silver miners as geopolitical uncertainty increased demand for precious metals. During the second half of the financial year, managers reduced some of these positions and increased exposure to oil, gas and related energy companies.
The change reflected expectations of a higher energy risk premium as tensions in the Middle East affected the outlook for supply and commodity prices.
At 30 June 2026, the trust’s NAV per share stood at 347.19p, compared with 212.56p a year earlier. The share price increased from 199.50p to 343.00p over the same period.
The trust also increased its annual dividend to 28.30p per share, compared with 8.03p in the previous year, representing a dividend yield of 8.3% at the year end. The dividend policy links quarterly distributions to approximately 8% of NAV, meaning payments can fluctuate as the portfolio value changes.
During the year, the discount to NAV narrowed from 6.1% to 1.2%, while net gearing increased from 4.8% to 10.9%.
A change in investment management followed the departure of portfolio managers Keith Watson and Robert Crayfourd from CQS in early 2026. Both subsequently joined Tufton Investment Management, which was appointed as the trust’s investment manager on 14 September 2026. The trust also changed its name from CQS Natural Resources Growth & Income PLC to City Natural Resources Growth & Income PLC.
The management fee remains at 1% of NAV per annum, in line with the reduced rate introduced in May 2025.
At the end of September, the portfolio was weighted towards gold miners and oil and gas companies, with additional exposure to uranium, shipping, silver, base metals, copper and coal.
The managers remain positive on most areas of the portfolio, although they are more selective towards copper and base metals. Their outlook is supported by potential oil supply disruption, increasing energy and critical materials demand from AI data centres, and continued interest in real assets amid inflation and geopolitical uncertainty.
City Natural Resources Growth and Income plc (LON:CYN) is a closed end UK investment trust providing shareholders with capital growth and income from a portfolio of mining and resource equities and mining, resource, industrial and other fixed interest securities.
