CQS NATURAL RES GROWTH & INCOME PLC

Fund Information / Factsheet • Apr 16, 2025

Investor Report

Key Facts¹

Portfolio Managers	Ian 'Franco' Francis
	Keith Watson Robert Crayfourd
Launch Date	August 2003
Total Gross Assets	£142.9m
Reference Currency	GBP
Ordinary Shares	Net Asset Value:
	202.43p
	Mid-Market Price: 187.00p
Dividend Yield (est.)	3.5%
Net gearing4	8.2%
Discount	(7.6%)
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 paid 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

31 March 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	4.1	6.5	1.5	4.1	(6.1)	251.4	630.0
Share Price	3.3	1.4	3.6	13.0	2.1	329.0	651.9
MSCI World Energy Sector Index3	2.1	7.1	11.6	1.7	35.8	199.0	559.9
MSCI World Metals & Mining Index3	(0.7)	4.5	(8.8)	(4.6)	(9.1)	119.2	453.5

Commentary⁴

The Company NAV gained 4.1% in March, ahead of the MSCI World Energy Sector Index and the MSCI World Metals & Mining Index which gained 2.1% and fell by 0.7% respectively.

Precious metals were the standout performer in March, helping to support the Company's large precious metal miner weighting. Gold and Silver gained 9.3% and 9.4% to \$3,123/oz & \$34.09/oz respectively. The miners have begun to show some of the operating leverage one would normally expect, with NYSE gold bugs gaining 12.5% (in GBP), but they still trade at a notable valuation discount to average historic earnings multiples.

The geopolitical backdrop remains supportive, with the US-led trade war via tariffs increasingly pointing to "stagflation" (stagnating growth and inflation), which historically has been the best backdrop for precious metal pricing. This is less favourable for broader markets, which adds to the appeal of the "insurance" properties of precious metals as an asset class. Whilst we do not believe conflicts are currently a strong driver of gold price, it is worth noting that March also saw a lower chance of a Russian/Ukrainian ceasefire, a return to Israeli/Hamas fighting and an escalation of tensions with Iran.

General flows into the miners are still limited as indicated by equity ETF shares on issue declining into this stronger gold price market. This is an important driver of share valuations as resource specialists are already broadly favourable to the miners. It's new capital into resource funds, ETF's and the miners directly that is required for the miners to catch up to the underlying gold price moves.

Physical gold ETF's are now seeing additions, with March witnessing an increase of 2.5Moz (2.9%), similar levels to February. This is an important driver of gold balances, as financial market participants have had little impact on the rise in the gold price so far; Central Banks along with retail bar and coin are the main drivers of demand.

Oil gained during the month, as crude prices rose as supply concerns impacted sentiment. This followed President Trump threatening 25% tariffs on any country buying Venezuelan crude while also stepping up sanctions on Iranian entities. We remain cautious on oil given weak demand fundamentals, instead preferring gas exposure. Geopolitcal tensions also supported oil.

The Copper price was supported by tariff threats and accelerating US demand ahead of these tariffs, with US prices trading up to \$1,000/t premium. We remain cautious on copper miners, given demand concerns and premium valuations, instead preferring exposure via development assets. These trade at a discount and would come online in 4-6 years when we will have a higher conviction of tighter market fundamentals.

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.

Commentary (continued)

Over the month, the Company took more profits on Ora Banda following good performance and its position sizing remained large. We added to Greatland Gold, believing the proposed Australian listing will be a key catalyst late in Q2 25. We also added to Uranium exposure via Nexgen, Isoenergy and Dension believing the sell off appeared overdone.

Sterling gained 2.7% over the month providing a performance headwind, given the Company does not hedge the currency and most assets are foreign denominated.

Portfolio Analysis1,2

Sector Region

Top 20 Holdings (% of MV) 1,2

Name	(% of MV)
NEXGEN ENERGY NPV	5.7
ORA BANDA MINING NPV	5.7
WEST AFRICAN RESOURCES NPV	5.2
EMERALD RESOURCES NPV	5.0
GREATLAND GOLD GBP0.001	3.9
CALIBRE MINING CORP NPV	3.6
TAMBORAN RESOURCES CORP CDI NPV	3.5
REA HLDGS 9% CUM PREF GBP1	3.3
BW LPG LTD USD 0.0100	2.3
TRANSOCEAN USD0.01	2.3
Top 10 Holdings Represent	40.5

Name	(% of MV)
DIAMONDBACK ENERGY USD0.01	2.2
WHEATON PRECIOUS METALS CORP	2.1
WESTGOLD RESOURCES NPV	2.1
FRONTLINE USD1.0000	2.1
VERMILION ENERGY COM NPV	2.0
UR ENERGY NPV	1.9
G MINING VENTURE CORP 0.000001	1.8
LYNAS RARE EARTHS NPV	1.8
PEYTO EXPLORATION & DEV CORP COM NPV	1.7
EOG RESOURCES USD0.01	1.5
Top 20 Holdings Represent	59.7

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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