Mining fund managers Keith Watson and Robert Crayfourd have resigned from Manulife-owned CQS with Golden Prospect (GPM), the top-performing £108m precious metals investment company they run, serving protective notice against the investment group.
Shares in GPM and CQS Natural Resources Growth and Income (CYN) and Geiger Counter (GCL), the two other London-listed closed-end funds they also run, sank up to nearly 10% in response to the news.
The three companies said Watson and Crayfourd would serve their three-month notice periods and continue to manage the portfolios during the period.
GPM indicated it may be looking to follow the pair to their new employer. It said: “The board will be discussing the impact of the resignations on GPM with CQS and is actively considering its options regarding the future management arrangements for GPM.
“The board has therefore resolved to serve protective notice of termination on CQS in respect of the investment management agreement forthwith, whilst those discussions and such review are ongoing. The investment management agreement between GPM and CQS has a notice period of 12 months.”
Its shares fell 7.9p to 92.1p.
CYN, the £144m mining investment trust, said it was “considering a number of options at its disposal to ensure a smooth and sustainable transition in the best interests of our shareholders. A further update will be provided in due course.” Its shares slid 6.4%, or 24.4p, to 353.6p.
Geiger Counter (GCL), a £79m uranium mining fund, plunged 9.6%, or 6.9p, to 65.1p after confirming the resignation. Its board did not expect any “immediate disruption to its investment process or operations” and said it was also considering its options for future portfolio management arrangements.
News of their departure comes nearly two years after Canadian financial services group Manulife bought CQS Investment Management and follows a banner year for Watson and Crayfourd, who have been with the group for 12 and 15 years respectively. Golden Prospect was the best-performing UK-listed investment company in 2025, generating a sparkling 165% total shareholder return as gold and shares in gold miners soared. CYN was the fourth best with a 102% return.
Our view
Matthew Read, senior analyst at QuotedData, said: “The announcement of the manager resignations comes at a time when both CYN and GPM have had incredible runs of performance as precious metals prices have surged on the back of higher inflation and uncertainty. On top of this, we now have the additional uncertainty of a war in the Middle East and so shareholders in all the funds affected will be looking for clarity about each fund’s plans. The good news is that Watson and Crayfourd will continue to manage the portfolios for the next three months and, given that this is an evolving situation, we would suggest shareholders sit tight and see what happens.”
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