CQS Natural Resources Growth and Income plc

 ("the Company")

LEI: 549300ES8CNIK2CQR054

First Half 2022/23 Financial Report

The Board of the Company announces the release of the Interim Results for the six months ending 31 December 2022.

Highlights:

·      Strong performance over the first half of the financial year.

o  +17.2% Net asset value Total return.

o  +13.9% Share price Total return.

o  +13.9% Composite benchmark Total return*.

·      2.8% dividend yield based on an annualised dividend of 5.60p per share.

·      Investment Week's 2022 award for Investment Company of the Year (Commodities and Natural Resources).

* The Company's investment benchmark is 80 per cent EMIX Global Mining Index (sterling adjusted) and 20 per cent Credit Suisse High Yield Index (sterling adjusted).

The Company provides shareholders with access to a portfolio of mining and resource equities and of mining, resource and industrial fixed interest securities, to generate capital growth and income. The Company adopts a long term investment approach, with a bias towards undervalued, less liquid mid and smaller capitalisation natural resources companies that are often overlooked by open ended funds. The aim is to outperform the benchmark index (which is comprised of 80 per cent EMIX Global Mining Index (sterling adjusted) and 20 per cent Credit Suisse High Yield Index (sterling adjusted) over the medium term.

Helen Green, Chairman of the Company, commented: "Firstly, I would like to congratulate the team on being awarded Investment Week's award for Investment Company of the Year in the Commodities and Natural Resources category during the period under review, recognising the consistently strong performance delivered by the Fund's managers. This is well deserved recognition given the continued high level of volatility in global equity and bond markets over the last six months to 31 December 2022.

Your Fund is well positioned for a prolonged high commodities price environment supported by constrained supply which is expected to be reflected in enhanced producers' returns over the next decade."

Rob Crayfourd and Keith Watson, Portfolio Managers of the Company, commented: "The Fund saw strong performance over the second half of 2022, gaining 17.2%, supported by mining, a rotation to energy and shipping. This momentum has so far continued into 2023 as China reopening from its zero covid policy provides a supportive back drop.

We remain positive on the resource sector overall primarily due to the continued lack of investment in new supply, but also due to the commodity intensive nature of the energy transition. Supply remains constrained across energy, mining and shipping, in part due to an increased ESG focus, as shareholders pressure corporates to reduce emissions rather than add supply. In addition, previous boom and bust cycles have led to shareholder pressure for conservatism from corporate management teams, who are now focused on dividends and buybacks.

In these times of uncertainty, investing in unencumbered real assets through the equities that hold them, we believe is good protection. The Fund's allocation and weighting is expected to benefit from an eventual global reopening of economies, and the longer-term energy transition."

Top Holdings at 31 December 2022:

Classification of Investment Portfolio:

The full report and accounts are attached to this release and can be accessed on the Company's website: www.ncim.co.uk/city-natural-resources-high-yield/.

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