CQS NATURAL RES GROWTH & INCOME PLC

Fund Information / Factsheet • Mar 27, 2025

Investor Report

Key Facts¹

Portfolio Managers	Ian 'Franco' Francis Keith Watson
	Robert Crayfourd
Launch Date	August 2003
Total Gross Assets	£137.8m
Reference Currency	GBP
Ordinary Shares	Net Asset Value:
	194.52p
	Mid-Market Price: 181.00p
Dividend Yield (est.)	3.6%
Net gearing4	8.2%
Discount	(6.9%)
Ordinary Shares in Issue	64,157,838
Ongoing Charge Ratio	2.00%
	Annual Management Fee 1.2% p.a. on net assets up to £150 million
	1.1% p.a. on net assets over £150 million and up
	to £200 million 1.0% p.a. on net assets
	over £200 million and up to £250 million
	0.9% p.a. on net assets
	greater than £250 million
Bloomberg	CYN LN
Reuters	CYN.L
Sedol	0035392
Year End	30 June
Contact Information	CQSClientServices @cqsm.com
Company Broker	Cavendish Capital Markets Limited 020 7220 0500
AGM	December
Dividend Information 2024/25	1.26p interim paid 22 Nov 2024
	1.26p interim payable 28 February 2025
Fiscal Year-End	30 June
Previous Dividend	2012/13 Total 5.50p
Information	2013/14 Total 5.60p
	2014/15 Total 5.60p 2015/16 Total 5.60p
	2016/17 Total 5.60p
	2017/18 Total 5.60p
	2018/19 Total 5.60p
	2019/20 Total 5.60p
	2020/21 Total 5.60p
	2021/22 Total 5.60p
	2022/23 Total 8.60p 2023/24 Total 6.60p
Investor Report	Monthly Factsheet
Annual Report & Accounts Published: October
Results Announced	Finals: October
	Interims: March

28 February 2025

CQS Natural Resources Growth and Income PLC (the "Company")

Portfolio Managers

Ian Francis, Keith Watson and Robert Crayfourd

Description The Company 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.

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

Ordinary Share and NAV Performance²

	1 Month (%)	3 Months (%)	6 Months (%)	1 Year (%)	3 Year (%)	5 Year (%)	Since Inception (%)
NAV	(6.6)	(6.2)	(1.8)	7.9	3.4	150.2	601.5
Share Price	(1.9)	(9.8)	3.3	23.4	17.1	211.3	627.7
MSCI World Energy Sector Index3	1.6	(1.6)	3.5	8.7	46.2	113.1	546.2
MSCI World Metals & Mining Index3	(0.3)	(3.4)	(1.4)	5.4	3.7	98.4	457.7

Commentary⁴

The escalation in the US-led application of trade tariffs, as Canada and Mexico implemented retaliatory measures, weighed on broader investor sentiment over the month. Equity markets reacted negatively to the proposals, which are seen as exacerbating uncertainty and deterring corporate investment, whilst also acting as a drag on growth by raising goods prices in the US. Whilst the effects have been reflected in the widening regional price premiums paid for steel and aluminium in the US, the disruption also affected the price of copper in the US. The country imports significant quantities of copper and the risk of tariffs being applied prompted COMEX futures to open up a 10% premium to London Metal Exchange (LME) benchmark price. Though the widening price spread saw some trader arbitrage activity, which acted to lift LME copper futures around 4% over the month, copper mining equities were largely unaffected and ended the month little changed. Elsewhere, iron ore prices closed February unchanged with well flagged steel tariffs having little impact on benchmark prices in China and little news emerging on possible economic stimulus from the government.

Against the backdrop of increasing stagflation risks, the Company retains a healthy exposure to "safe haven" precious metal equities which represents the portfolio's largest allocation currently. Despite the gold price ending February with a 2.1% gain, having reached a new all-time high of \$2,956/oz intramonth, precious metal mining stocks pulled back into February-end, consolidating from their strong prior month gains. We believe the tariff-led uncertainty remains a supportive consideration for investor diversification and further allocation into defensive assets such as gold. This is evident with the pick-up in buying by physically-backed ETFs. Mining equities have not reflected the operational leverage to the strong gold price momentum and in our opinion continue to look attractively valued, trading at some of the lowest earnings multiples on record at the current spot price.

Energy prices softened over the month with benchmark prices slipping nearly 5% ahead of the scheduled OPEC+ gathering in early March. This was in anticipation that the petroleum-producing countries could commence the unwinding of their voluntary production quotas. In addition, news that US President Trump and Russian President Putin could meet in Saudi Arabia raised the possibility of an end to conflict in the Ukraine and that sanctions against Russian energy exports could be lifted. Partially offsetting this, the US Treasury outlined intentions to reduce Iran's oil exports by more than 90%, equivalent to the potential rise in OPEC+ output of around 2Mbopd, with Trump seeking to exert "maximum economic pressure" on the Tehran government. While 'exploration, development and production' equities declined modestly, crude shippers and offshore drillers, which could in fact benefit from increased OPEC+ activity and rising export volumes, also declined a similar amount. The possibility of energy tariffs on imports of natural gas from Canada affected sentiment in this market. This came against a backdrop of a cold snap and lower-than-normal regional gas inventories. Henry Hub prices consequently gained nearly 25%. This contrasted with declines in Europe, which fell 25%, again potentially reflecting the possibility of a loosening of Russian gas exports while Asian liquefied natural gas (LNG) prices declined by a more modest 5%. Uranium equities came under considerable pressure as concerns over a possible reversal in the ban on importation of Russian supply weighed, though U3O8 (Uranium) prices did not react to the news.

Sources: 1 Manulife | CQS Investment Management and Frostrow LLP as at the last business day of the month indicated at the top of this investor report. 2 Total return performance net of fees and expenses as at the last business day of the month indicated at the top of this investor report. 3 Source: MSCI is total return. 4 All market data sourced from Bloomberg unless otherwise stated. All returns quoted in local currency unless otherwise stated. The Company may since have exited some or all of the positions detailed in the commentary.

Overall, the Company NAV declined 6.6% with the uranium exposure acting as a drag to performance. The share price of Nexgen fell nearly 20% over the month, similar to share price declines across the wider uranium mining sector. After strong prior month gains, gold equities retreated, while sterling also strengthened nearly 1.5% against the US dollar reference currency, which both weighed on performance.

Portfolio Analysis1,2

North America 32.2% Africa 17.2% Australia 16.1% Latam 12.2% Global 10.5% Asia 9.2% Europe 2.7%

Top 20 Holdings (% of MV) 1,2

Name	(% of MV)
NEXGEN ENERGY NPV	6.1
EMERALD RESOURCES NPV	5.7
ORA BANDA MINING NPV	5.7
WEST AFRICAN RESOURCES NPV	4.4
TAMBORAN RESOURCES CORP CDI NPV	4.1
CALIBRE MINING CORP NPV	3.4
REA HLDGS 9% CUM PREF GBP1	3.3
BW LPG LTD USD 0.0100	2.6
UR ENERGY NPV	2.6
GREATLAND GOLD GBP0.001	2.5
Top 10 Holdings Represent	40.4

Name	(% of MV)
DIAMONDBACK ENERGY USD0.01	2.3
VERMILION ENERGY COM NPV	2.3
TRANSOCEAN USD0.01	2.3
WHEATON PRECIOUS METALS CORP	2.0
WESTGOLD RESOURCES NPV	1.9
FRONTLINE USD1.0000	1.9
LYNAS RARE EARTHS NPV	1.8
EQUINOX GOLD CORP NPV	1.8
FORAN MINING CORP NPV	1.7
EOG RESOURCES USD0.01	1.6
Top 20 Holdings Represent	60.0

AIFMD Leverage Limit Report (% of NAV)

	Gross Leverage (%)3	Commitment Leverage (%)3
CQS Natural Resources Growth and Income	109	109

Sources: 1 Manulife | CQS Investment Management and Frostrow LLP as at the last business day of the month indicated at the top of this investor report. 2 All holdings data are rounded to one decimal place. Totals may therefore differ to sum of constituents. 3 Manulife | CQS Investment Management, as at the last business day of the month indicated at the top of this investor report. For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 7, 9 and 10 of Delegated Regulation 231/2013. 5 Manulife | CQS Investment Management as at the last business day of the month indicated at the top of this investor report. For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 8, 9, 10 and 11 of Delegated Regulation 231/2013.These include historic returns and past performance is not a reliable indicator of future results. The value of investments can go down as well as up. Please read the important legal notice at the end of this document.

Important Information

Manulife | CQS Investment Management is a trading name of CQS (UK) LLP which is authorised and regulated by the Financial Conduct Authority. This document has been issued by CQS (UK) LLP and/or CQS (US), LLC which is a registered investment adviser with the US Securities and Exchange Commission, The term "CQS" or "Manulife | CQS Investment Management" as used herein may include one or more of CQS (UK) LLP, CQS (US), LLC or any other affiliated entity. The information is intended solely for sophisticated investors who are (a) professional investors as defined in Article 4 of the European Directive 2011/61/EU or (b) accredited investors (within the meaning given to such term in Regulation D under the U.S. Securities Act of 1933, as amended) and qualified purchasers (within the meaning given to such term in Section 2(a)(51) of the U.S Investment Company Act 1940, as amended). This document is not intended for distribution to, or use by, the public or any person or entity in any jurisdiction where such use is prohibited by law or regulation.

Manulife | CQS Investment Management is a wholly owned subsidiary of Manulife Investment Management (Europe) Limited.

This document is a marketing communication prepared for general information purposes only and has not been delivered for registration in any jurisdiction nor has its content been reviewed by any regulatory authority in any jurisdiction. The information contained herein does not constitute: (i) a binding legal agreement; (ii) legal, regulatory, tax, accounting or other advice; (iii) an offer, recommendation or solicitation to buy or sell shares or interests in any fund or investment vehicle managed or advised by CQS (a "CQS Fund") or any other security, commodity, financial instrument, or derivative; or (iv) an offer to enter into any other transaction whatsoever (each a "Transaction"). Any decision to enter into a Transaction should be based on your own independent investigation of the Transaction and appraisal of the risks, benefits and appropriateness of such Transaction in light of your circumstances. Any decision to enter into any Transaction should be based on the terms described in the relevant offering memorandum, prospectus or similar offering document, subscription document, key investor information document (where applicable), and constitutional documents and/or any other relevant document as appropriate (together, the "Offering Documents"). Any Transaction will be subject to the terms set out in the Offering Documents and all applicable laws and regulations. The Offering Documents supersede this document and any information contained herein. The Offering Documents for CQS UCITS range of funds is available here (https://www.cqs.com/ucits-funds#global-convertibles) in English (US persons will not be eligible to invest in CQS managed UCITS funds save to the extent set out in the relevant Offering Document). A copy of CQS' Complaints Policy, which sets out a summary of investors' rights, is available here (www.cqs.com/site-services/regulatory-disclosures) in English. CQS may terminate the arrangements for marketing or distribution of any CQS Fund at any time.

Nothing contained herein shall give rise to a partnership, joint venture or any fiduciary or equitable duties. The information contained herein is provided on a non-reliance basis, not warranted as to completeness or accuracy, and is subject to change without notice. Any information contained herein relating to any non-affiliated third party is the sole responsibility of such third party and has not been independently verified by CQS. The accuracy of data from third party vendors is not guaranteed. If such information is not accurate, some of the conclusions reached or statements made may be adversely affected. CQS is not liable for any decisions made or action taken by you or others based on the contents of this document and neither CQS nor any of its directors, officers, employees or representatives accept any liability whatsoever for any errors or omissions or any loss howsoever arising from the use of this document.

Information contained in this document should not be viewed as indicative of future results as past performance of any Transaction is not indicative of future results. Any investment in a CQS Fund or any of its affiliates involves a high degree of risk, including the risk of loss of the entire amount invested. The value of investments can go down as well as up. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Future performance is subject to taxation which depends on the personal situation of each investor and which may change in the future. Investments may lead to a financial loss if no guarantee on the capital is in place. An investment in any CQS Fund will involve a number of material risks which include, without limitation, risks associated with adverse market developments, currency and exchange rate risks, risk of counterparty or issuer default, and risk of illiquidity. Any assumptions, assessments, targets (including target returns and volatility targets), statements or other such views expressed herein (collectively "Statements") regarding future events and circumstances or that are forward looking in nature constitute CQS' subjective views or beliefs and involve inherent risk and uncertainties beyond CQS' control. Any indices included in this document are for illustrative purposes only and are not representative of CQS Funds in terms of either composition or risk (including volatility and other risk related factors). Unless stated to the contrary CQS Funds are not managed to a specific index.

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