The managers of CQS Natural Resources Growth Income Trust (CYN) say that the covid-19 pandemic has delayed, rather than ended, the recovery they were seeing in the mining sector. After sharp falls in March, share prices have recouped some of their losses, but the managers believe there is much more to go for… Read more
China and the rest of Asia is tentatively emerging from lockdown. While a ‘V’-shaped recovery for the economy looks unlikely, the market is looking through this shock already, whilst the long-term fundamentals that support commodities remain intact. The managers say that real demand for commodities has been growing and a reduction in capital expenditure has seen capacity removed from the market. This has been exacerbated by the pandemic. The managers believe that, as we move beyond this phase, commodities and mining companies could see their share prices move up quickly, as demand recovers. If they are correct, now may be a good entry point for investors who are prepared to be patient and are able to look through the volatility.
Capital growth and income from mining & resources
CYN aims to provide investors with capital growth and income by investing in a portfolio that predominantly comprises mining and resource equities, as well as mining, resource and industrial fixed interest securities. The fixed income securities include, but are not limited to, preference shares, loan stocks, corporate bonds (convertible and/or redeemable) and government bonds.
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