CQS Natural Resources Growth and Income (CYN) has decided to follow portfolio managers Keith Watson and Robert Crayfourd to Tufton Investment Management, appointing the latter as its new fund manager in place of Manulife where the pair handed in their notice in March.
Having conducted a beauty parade of Tufton, Manulife and other investment groups, Christopher Casey, chair of the £137m investment company, said sticking with the managers provided continuity for shareholders who have enjoyed their strong track record of performance. CYN shares have returned 112% over one year and 595% over a decade.
“The combination of appointing Tufton as investment manager and the continued involvement of Keith Watson and Robert Crayfourd ensures continuity for the portfolio and preserves the company’s established investment strategy. Keith and Robert have an enviable track record of performance and we look forward to continuing to work with them to create further value for shareholders,” said Casey.
The contract will start on 14 September and will be terminable by either side at 12 months’ notice. Tufton will be paid an annual management fee of 1% of net asset value in line with the reduced fee introduced last year.
CYN’s decision moves the spotlight to Geiger Counter (GCL) and Golden Prospect Precious Metals (GPM), the managers of the two other investment companies. Like CYN, they had also served protective notice against Manulife while they considered their options.
Our view
Matthew Read, senior analyst at QuotedData, said: “The announcement that CQS Natural Resources will be moving its management contract to Tufton draws a line under the period of uncertainty created by Keith Watson and Robert Crayfourd’s resignations from CQS. We think that shareholders will be reassured that this trust is retaining the team and process behind CYN’s recent strong performance, and that there will be no disruption to the trust’s strategy, risk profile, its enhanced 8% of NAV dividend policy, or the management fee, which remains in line with the reduced level introduced in 2025.”
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