City Natural Resources High Yield Trust Forum

Now has been trading below 90p. In the words of Lance-Corporal Jones:- "Don't panic, Don't panic". Top holdings are Vermilion energy trust (P/E ratio 28.82 and Div yield 5.78%), Greencoat UK Wind (P/E ratio 13.5 and Div yield 5.50%), APA Group (P/E ratio 11.33 and Div yield 3.51%) and Central Asia Metals PLC (P/E ratio 3.81 and Div yield 8.47%). Assuming PlantImpact (AIM) and Sirius Resources are in the portfolio as growth opportunities. This trust has the option to invest in fixed securities and so lets hope the managers can rebalance with fixed securities if needed in the short term while oil and copper prices hitting lows again.

I looked further into this trust and feel it is very well managed and decided to invest a small stake in it today (not a recommendation). The outlook for commodities is not great and so there may well be more volatility and so this is definitely a long term holding and not one for the get rich quick investor. My thinking is that the demand for commodities will expand over time as the world population grows. I considered BRWM and CYN and decided on CYN as it has a more diversified portfolio of holdings i.e. not just miners. Some considerations: (i) the trust holds smaller companies i.e. not your Rio or BHP (ii) Independent Group has launched a bid for Sirius Resources which is one of the biggest holdings in the trust and (iii) Raven Russia a property investment company specialising in commercial real estate in Russia. I like the fact that the trust holds alternative energy and agricultural shares (although not sure Plant Impact pays a dividend yet). BRWM seems to pay a bigger dividend yield and is at a very low attractive price. CYN has a history of growing the dividend and also holds preference shares and bonds.

Price gone up again. Listed on the Fledgeling Index and seems to hold Raven Russian securities.

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