IC Top 100 Fund City Natural Resources High Yield Trust (CYN) has reported a difficult year in its annual results to 30 June, with a fall in its net asset value (NAV) of 32 per cent and in its share price of 35.9 per cent, in contrast to a fall of 14.3 per cent for its benchmark. This is in contrast to its longer history with a share price return of nearly 245 per cent over the last ten years against 198 per cent for its composite benchmark, two thirds HSBC Global Mining Index and one third Credit Suisse High Yield Index.
- Dividend growth
- Discount to NAV
- Exposure to cheap shares
- Rerating potential
- Short term volatility
- Debt
Performance has been hindered by a difficult couple of years for commodity markets, and the trust's underperformance of its benchmark is largely attributable to its exposure to smaller mining and resource stocks, some of which are not in these indices. While in other sectors small caps have tended to outperform this has not been the case for smaller, less liquid resource stocks.