CQS NATURAL RES GROWTH & INCOME PLC

Fund Information / Factsheet • May 20, 2025

Investor Report

Key Facts¹

Portfolio Managers	Ian 'Franco' Francis
	Keith Watson
	Robert Crayfourd
Launch Date	August 2003
Total Gross Assets	£141.8m
Reference Currency	GBP
Ordinary Shares	Net Asset Value:
	200.84p Mid-Market Price:
	192.00p
Dividend Yield (est.)	3.4%
Net gearing4	8.1%
Discount	(4.4%)
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	CQSClientService@cqsm.
	com
Company Broker	Cavendish Capital Markets
	Limited
	020 7220 0500
AGM	December
Dividend Information	1.26p interim paid
2024/25	22 Nov 2024
	1.26p interim paid
	28 February 2025
	1.26 interim payable on
	30 May 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

30 April 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	(0.8)	(3.6)	(5.7)	(3.6)	(6.3)	179.9	624.3
Share Price	2.7	4.1	(0.2)	6.8	(2.9)	236.6	672.0
MSCI World Energy Sector Index3	(14.1)	(10.8)	(8.2)	(13.7)	13.4	124.4	467.1
MSCI World Metals & Mining Index3	(1.5)	(2.5)	(6.8)	(9.6)	(5.5)	82.0	445.2

Commentary⁴

Market sentiment remains extremely sensitive to news headlines regarding US President Trump's trade policies. In this regard, April was marked by continued high volatility following a slew of new tariffs announced early in the month. Despite this, and a 3% strengthening of sterling versus the dollar, the Company NAV ended the month largely unchanged. The Company's large weighting to precious metals helped defend against softness in more economically-led commodities. We continue to have a high conviction on the gold miners given US trade uncertainty will likely drive further flows from Central Banks into gold. The mining companies remain attractively valued versus historic earnings multiples and free cash flow, which was further evidenced by sector company reporting. We believe generalists continue to have limited exposure to the sector, either via physical or the mining equities. Inflows from generalist funds remains a key catalyst we look for to drive further gains and a catch up from the mining companies. Q1 reporting has supported our belief that cost inflation pressures remain limited and thus the sector can continue to sustain the current high margins even before any further upside in gold pricing.

Tariffs will likely deter investment following a period of elevated activity supporting our low weighting to economically sensitive copper and oil, although for oil at least valuations are approaching a level that may be close to pricing this in and see us begin to reallocate back. However, because industries worldwide sought to mitigate the effects of tariffs with pre-emptive inventory building, their impact is only just starting to feed through to fundamental economic data. Consumer purchases have begun to slow and businesses are reassessing discretionary capex as they wait and see where tariff levels settle. In the US, Q1 GDP dipped into contraction following a rise in its trade deficit during March, while China's manufacturing PMI slipped back into contraction in April. The slowdown is filtering into global growth estimates; after downgrading US GDP growth forecasts, from 2.1% to 1.7% for 2025, the US Fed's April commentary attested to the risks from stagflation and rising unemployment. We see further downside risks to economic data and thus continue to believe the large precious metal weighting remains the best exposure over the next few months.

The US administration's policies look to be inhibiting growth, straining international relations, complicating central bank monetary policy and undermining confidence in the President. How long these self-inflicted pressures can persist also remains uncertain as more pain may need to show in data in order to bring about an easing of the current hardline framework. Furthermore, the manner in which US policies have been implemented may have longer lasting effects, both on the speed and extent with which the new equilibrium is restored after this jolt. Of note, the shake out has prompted a reappraisal of risks and US treasuries are no longer seen as the "risk free" assets they were. In such an environment, central banks may continue adding gold to reserves and an allocation to "safe haven" assets remains preferred in the Company. Indeed, the gold price rose over 5% in April and the outlook for robust earnings continues to highlight attractive valuations of related equities. This environment contributed positively to the Company's returns over the month, notably from Greatland Gold and Emerald Resources.

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)

During April, crude oil markets felt the brunt of GDP downgrades, but thankfully didn't weigh too heavily on NAV given the reduced energy weighting and greater exposure to gas over oil. This hastened a Saudi Arabia-led shift in OPEC strategy away from defending the oil price to gaining market share. This combined effect meant benchmark crude prices dropped over 15% during the month. For the Company, the positive precious metal contribution was largely offset by weaker performance from energy names, including E&P's Diamondback and Vermilion. Proposed US fees on Chinese built ships entering US ports were watered down, but uncertainty continues to disrupt trade flows into the US. The progress on fees has supported the Very Large Crude Carrier (VLCC) day rates despite demand fears that are weighing on oil. Frontline's share price rose over 12% in the month as a result.

London Metal Exchange (LME) copper prices declined a moderate 6% over the month, with the prospect of some Chinese fiscal stimulus providing relative support versus crude prices. Having mandated an increase in borrowing capacity, the People's Bank of China (PBOC) appears well positioned to deliver stimulus this year, although we continue to believe its actions will be selective. It will likely target investment in infrastructure such as nuclear power generation, with less emphasis placed on property like has been witnessed previously. The Company continues to avoid iron ore markets which have been the beneficiaries of pre-emptive steel stockpiling. Iron ore face challenges from Chinese steel capacity restrictions and rising seaborne supplies from large scale development projects such as Simandou in Guinea. Uranium equities recovered markedly after their recent drop and Nexgen made a useful contribution to returns over the month. We believe this critical industry remains a focus of investment around the world and should continue to see secular improvement.

Portfolio Analysis1,2

Top 20 Holdings (% of MV) 1,2

Name	(% of MV)
NEXGEN ENERGY NPV	6.5
EMERALD RESOURCES NPV	6.0
WEST AFRICAN RESOURCES NPV	5.3
ORA BANDA MINING NPV	4.6
GREATLAND GOLD GBP0.001	4.5
POLYMETALS RESOURCES NPV	4.4
CALIBRE MINING CORP NPV	3.7
REA HLDGS 9% CUM PREF GBP1	3.4
TAMBORAN RESOURCES CORP CDI NPV	3.1
SOUTHERN CROSS GOLD CONS-CDI NPV	2.7
Top 10 Holdings Represent	44.2

Name	(% of MV)
FRONTLINE USD1.0000	2.3
WHEATON PRECIOUS METALS CORP	2.2
LYNAS RARE EARTHS NPV	2.2
WESTGOLD RESOURCES NPV	2.2
UR ENERGY NPV	2.1
ROBEX RESOURCES NPV	2.1
BW LPG LTD USD 0.0100	2.1
TRANSOCEAN USD0.01	1.9
G MINING VENTURE CORP 0.000001	1.9
DIAMONDBACK ENERGY USD0.01	1.7
Top 20 Holdings Represent	64.9

AIFMD Leverage Limit Report (% of NAV)

	Gross Leverage (%)3	Commitment Leverage (%)3
CQS Natural Resources Growth and Income	110	110

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.

4 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.

Sources:

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.

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.

The information contained herein is confidential and may be legally privileged and is intended for the exclusive use of the intended recipient(s) to which the document has been provided. In accepting receipt of the information transmitted you agree that you and/or your affiliates, partners, directors, officers and employees, as applicable, will keep all information strictly confidential. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information is prohibited. Any distribution or reproduction of this document is not authorized and prohibited without the express written consent of CQS, or any of its affiliates. Unless otherwise stated to the contrary herein, CQS owns all intellectual property rights in this document.

MSCI Disclaimer: Certain information contained herein (the "Information") is sourced from/copyright of MSCI Inc., MSCI ESG Research LLC, or their affiliates ("MSCI"), or information providers (together the "MSCI Parties") and may have been used to calculate scores, signals, or other indicators. The Information is for internal use only and may not be reproduced or disseminated in whole or part without prior written permission. The Information may not be used for, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product, trading strategy, or index, nor should it be taken as an indication or guarantee of any future performance. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund's assets under management or other measures. MSCI has established an information barrier between index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided "as is" and the user assumes the entire risk of any use it may make or permit to be made of the Information. No MSCI Party warrants or guarantees the originality, accuracy and/or completeness of the Information and each expressly disclaims all express or implied warranties. No MSCI Party shall have any liability for any errors or omissions in connection with any Information herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

PRI Note: PRI is an investor initiative in partnership with UNEP Finance and the UN Global Compact.

G1347909 / 05.25

GMv12.

CQSClientService@cqsm.com | www.cqs.com

London 4th Floor, One Strand, London WC2N 5HR, United Kingdom T: +44 (0) 20 7201 6900 F: +44 (0) 20 7201 1200

New York 152 West 57th Street, 40th Floor, New York, NY 10019, US T: +1 212 259 2900 F: +1 212 259 2699