City Natural Resources Growth and Income PLC GBP · LSE:CYN
City Natural Resources Growth and Income PLC GBP — CQS Natural Resources Growth and Income — Shareholder Meeting (December 2020)
18 slides from City Natural Resources Growth and Income PLC GBP's shareholder meeting presentation, December 2020
Slide 1: CQS Natural Resources Growth and Income PLC
AGM December 2020 CQS Natural Resources Growth and Income PLC LONDON NEW YORK HONG KONG All Investors should ensure that they have received and read the latest Offering Documentation and Pre-Investment Disclosure which is available from CQS at www.cqs.com CQSClientService@cqsm.com
Slide 2: CQS in Numbers
CQS in Numbers 20+ $18.8bn ~210 70+ Years AUM Employees Investment Professionals Delivering fundamental, Multi-strategy asset management Headquartered in London Including specialist research, research-driven investment in both traditional (long-only) with investment offices in with sectoral, macro-e
Slide 3: Portfolio Exposure
Portfolio Exposure Precious Metals Energy Fixed Interest Base Metals Shipping Securities Companies Overweight Underweight Overweight Overweight Overweight 1,2 1,2 1,2 1,2 28.6% 5.8% 16.1% 27.5% 10.3%1,2 The Fund is over weight in Caution on US production Primarily funded through the Years of under i
Slide 4: CQS Natural Resources vs Peers and Indexes
CQS Natural Resources vs Peers and Indexes (GBP, normalised to 100) 60 40 20 0 -20 -40 -60 Feb 2019 Jun 2019 Oct 2019 Feb 2020 Jun 2020 Oct 2020 JPMorgan Fund ICVC - JPM Natural Resources Fund BlackRock World Mining Trust PLC (NAV) Ninety One Global Strategy Fund - Global Natural Resources Fund CQS
Slide 5: Discount to NAV
Discount to NAV 0 -5 -10 -15 -20 -25 -30 Dec 2018 Apr 2019 Aug 2019 Dec 2019 Apr 2020 Aug 2020 Source: Bloomberg as at 11 November 2020. 5
Slide 6: Commodities – Key Drivers
Commodities – Key Drivers Positive outlook for Commodities Central bank policy supportive, targeting unemployment, supportive for demand – low rates to remain Covid fears should dissipate with Vaccine in 2021 Restocking of the industrial supply chains following COVID-19 supply disruptions Ch
Slide 7: Most Commodities (Ex Oil) Above Pre COVID Levels
Most Commodities (Ex Oil) Above Pre COVID Levels Copper $/t Zinc $/t WTI Oil $/bbl Gold Iron Ore Source: Bloomberg as at 3 November 2020. 7
Slide 8: Base Metals
Base Metals Reasons for optimism COVID-19, stimulus focusing on jobs is supportive for demand through infrastructure build out and end consumer demand Environmental themes accelerated through Government spending – EV’s, Renewable power and electrification. Industrial restock cycle - led by Chi
Slide 9: Base Metals Stocks Already Tight
Base Metals Stocks Already Tight Inventories Copper (Cu) and Zinc (Zn) notable LME Pinch Diagram (Copper) Global Market Pinch Diagram (Copper) LME Pinch Diagram (Zinc) Global Market Pinch Diagram (Zinc) Source: LME, Bloomberg, WBMS, MS Research as at 30 September 2020. 9
Slide 10: Precious Metals
Precious Metals Global economic policy uncertainty highest on record1 Geopolitical/systemic risks Synchronised government spending – rates to remain low– ballooning government debt – how will this be repaid? US election – parties seeking to outspend each other? Possible currency debasement fav
Slide 11: Junior golds at discount to sector
Junior golds at discount to sector Valuations have lagged the current Gold Price1 Summary Junior end of sector at a discount – with specific names even more discounted – do not need a higher gold price Many funds can’t own pre production – our heavy weight to developers has benefitted from this
Slide 12: Rationale to Own Gold is Still Valid
Rationale to Own Gold is Still Valid Negative Yielding Debt1 Summary 18 Sovereign debt issues not Global Debt With Negativ e Y ield $Trn 16 resolved 14 Many nations approaching 12 dangerous levels of Debt/GDP by 10 historic standards 8 Currency debasement (pace has 6 quickened) 4 2 $16trn. n
Slide 13: Tariffs Reroute Trade
Tariffs Reroute Trade US-China Trade Dispute Disrupts Commodity Trade Flows Summary Even under a Biden win – Trade war to have lasting impact on trade routes Manufacturing rerouted to the likes of Vietnam, Indonesia & Thailand China increasingly looking to stimulate to support the economy Fu
Slide 14: Real Demand for Commodities Increasing
Real Demand for Commodities Increasing Chinese Copper Imports (Thousands of Tonnes Ore Per Month)1 Summary Global stimulus and infrastructure 800 may drive a sharp rebound Urbanisation trend still continues 700 Base metal demand growing Chinese Copper Imports (Millions tons/month) 600 Global
Slide 15: Oil
Oil US Production and OPEC production (k bbls/day)1 Summary Oil demand collapsed ~8% post COVID-19, unclear when we get back to pre COVID demand levels OPEC’s 7.7M bbls of quota cuts will return at $50/bbl US shale consolidated through mergers – will reduce costs and activity Oil price tied
Slide 16: Global Offices
Global Offices London New York Hong Kong CQS (UK) LLP CQS (US) LLP CQS (Hong Kong) Limited 4th Floor, One Strand, London 152 West 57th Street, 40th Floor, New York. 1308 One Exchange Square, WC2N 5HR, United Kingdom NY 10019, US 8 Connaught Place, Central, Hong Kong T: +44 (0) 20 7201 6900 T: +1 212
Slide 17: Important Information
Important Information This document has been issued by CQS (UK) LLP (FRN 400496) which is authorised and Any Transaction will be subject to the terms set out in its Offering Document and all applicable regulated by the UK Financial Conduct Authority and/or (as the case may be) CQS (US), LLC laws and
Slide 18: Important Information
Important Information Any assumptions, assessments, intended targets, statements or other such views expressed AIFMD and Distribution in the European Economic Area: CQS (UK) LLP is an Alternative herein (collectively “Statements”) regarding future events and circumstances or that are forward Investm
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