City Natural Resources High Yield Trust

Sector play with discount and yield

22 January 2015

City Natural Resources High Yield Trust (CYN) provides actively managed diversified exposure to the natural resources sector with a particular focus on income. A broad decline in commodity prices accounts for the negative performance of CYN and its peers over the last few years, although 2014 saw an easing of the downtrend despite the fall in the oil price. Signs that lower prices will feed through to lower supply raise the prospect of a more favourable balance in many commodity markets. Meanwhile, CYN offers a yield of over 5% and is trading at the top of its recent discount range. MORE »

Improving fundamentals in 2014

5 June 2014

City Natural Resources High Yield Trust (CYN) provides diversified exposure to the resources sector with a focus on income. A broad decline in commodity prices coupled with the relative underperformance of smaller-cap resources shares over the last two years has been particularly unhelpful for CYN’s performance. In contrast, the current year has started positively with a stabilisation in commodity prices and a still improving global economic outlook. The managers see positive or improving dynamics in the oil & gas, gold and palm oil sectors, which represent over 60% of the current portfolio. MORE »

Favouring producing assets

11 September 2013

City Natural Resources High Yield Trust (CYN) is focused exclusively on natural resources. The mining and natural resources sector has taken a pounding over the last two years, but valuations are now at the low end of their range and many companies are responding to investor pressure and prices by cutting capex. While still geared to the upside once prices improve, the managers have shifted CYN’s portfolio towards the dividend paying producers where they expect better returns in the medium term. MORE »

Strong dividend growth

24 September 2012

City Natural Resources High Yield Trust (CYN) is one of just three UK investment trusts to focus exclusively on natural resources. Economic growth concerns led the sector to underperform the broader market in recent months, particularly between March and May. Some mining project cost issues also became prominent. CYN has experienced a rare period of weakness against its benchmark. Favoured companies were added to and the manager believes this, an improved emphasis on shareholder returns by mining companies and QE expansion will support performance. Since New City became manager in 2003 CYN has returned 497.5% (NAV total return) and 414.0% (share price total return) vs total returns of 251.9% and 98.0% from its composite benchmark and FTSE World indices. Total dividends for the last financial year grew 14.5% and CYN has over a year of revenue reserves. The board expects continued dividend growth. MORE »

Dividend growth from natural resources

27 March 2012

City Natural Resources High Yield Trust (CYN) is one of only three UK-registered investment trusts to focus exclusively on the natural resources sector. It has a strong long-term performance record returning 605.9% (NAV total return) and 505.5% (share price total return) since 2003 vs total returns of 264.8% and 97.2% from its composite benchmark and FTSE World Indices. CYN pays quarterly dividends and, with growth in revenue reserves of 15.3% to 6.8p during the year to 31 December, we believe it is well positioned to provide double-digit dividend growth again this year (2011 dividend: 4.22p), having already doubled its dividend during the last four years. MORE »

Well diversified natural resources exposure

15 November 2011

City Natural Resources High Yield Trust (CYN) is one of only three UK-registered investment trusts to focus exclusively on the natural resources sector. It has a strong long-term performance record in a well performing sector. Returns in the sector are more focused on capital growth than yield, but CYN pays quarterly dividends and for the year ending 30 June 2011 paid a total dividend of 4.22p, which has more than doubled in the last four years. The manager remains very bullish on the long-term outlook for the natural resources sector amid slowing but continued global economic growth and, in September 2011, CYN issued £40m of convertible unsecured loan stock to provide fixed gearing, at 3.5%, to 2018. MORE »