CQS Natural Resources Growth and Income plc (LON:CYN) Fact Sheet as at 30 April 2026 is now available.
Commentary
The Company’s NAV rose 3.6% over April, ahead of the MSCI World Metals & Mining and MSCI World Energy indices, which returned 2.0% and -4.7%, respectively, in sterling.
Oil remained volatile through April as the US raised the prospect of a ceasefire with Iran, weighing on prices, before rallying as it became clear talks were breaking down. Even a brief ceasefire would still lead to significant disruption to global oil flows, impacts that have not yet been fully felt. The last oil exports through the Strait of Hormuz (SoH) were still being delivered in late April, meaning the brunt of the supply loss will become more evident in May and June. At the time of writing, there is no clear off-ramp for negotiations, with Iran appearing to gain leverage as oil prices move higher. An oil price greater than $200 is justified by this current disruption, as that is the level at which a material reduction in usage would
begin to emerge, particularly in more price-sensitive emerging markets. However, even this price would likely be insufficient, given the low proportion of oil usage that is discretionary.
The Company remains weighted to energy, precious metals, and shipping over the more economically sensitive base metals, reflecting concerns that a higher oil price would hurt emerging market economies the most, which are also key drivers of base metal demand, where recycling is less prevalent.
Precious metals have been less directional, as concerns about higher oil prices and inflation expectations have lifted rates, weighing on their prices. Similarly, oil is a significant input cost for miners and could negatively impact margins. However, we believe this energy shock is materially positive for the longerterm drivers of precious metals, such as government debt levels, currency depreciation, and global economic risks. We also note that miners’ strong current margins lessen the impact of some cost creep.
The Company added to Tamboran Resources, reflecting its large Australian shale gas resource, and Teekay Tankers, a shipper focused on mid-range crude tankers, which we believe should benefit from current shipping route disruptions in the Middle East.
CQS 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.
