The CQS Natural Resources Growth and Income trust (CYN) has appointed Tufton Investment Management to run its portfolio, following the news that its portfolio managers will join the team.
At the beginning of March, CYN’s board launched a review of its investment management company CQS, after trust co-managers Keith Watson and Robert Crayfourd handed in their resignations from the firm.
On 25 March, Tufton announced Watson and Crayfourd would be joining the company as soon as they were able, based on contractual arrangements with CQS.
After weighing up the options, which included CQS and Tufton among other investment managers, the board concluded that “the appointment of Tufton as investment manager, and the ongoing stewardship of the portfolio by Keith and Robert, are in the best interests of shareholders”.
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Tufton will formally become the trust’s investment manager from 14 September this year. Until then, CQS will continue to run the trust, with managers Diana Racanelli and Craig Bethune taking over the helm in the interim. Crayfourd and Watson’s notice period will expire on 2 June.
According to CYN’s board, the trust’s investment approach will remain unchanged, continuing to aim for long-term capital growth through natural resources assets. It will also still target an 8% dividend yield of net asset value per annum.
From 16 September, CYN will pay Tufton a management fee of 1% per annum of company NAV, which will be paid monthly in arrears. Frostrow Capital will remain the trust’s secretary and administrator.
Christopher Casey, chair of CYN, said: “Following the announced departure of our named portfolio managers, the board undertook a thorough review of options available to us to ensure we had the best possible investment management group to support the future success of the company.
“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.”
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Commenting on the update, 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.”
