Golden Prospect Precious Metals Limited

Monthly Investor Report - May 2026

The full monthly factsheet is now available on the Company's website and a summary can be found below. 

NCIM - Golden Prospect Precious Metals Ltd - Fund Page

Enquiries: 

For the Investment Manager 

Manulife | CQS Investment Management

Craig Cleland 

0207 201 5368 

For the Company Secretary and Administrator 

Apex Fund and Corporate Services (Guernsey) Limited

James Taylor

0203 530 3600

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Fund Description 

The objective of the Golden Prospect Precious Metals Fund is to provide investors with capital growth from a group of companies in the precious metals sector.

Portfolio Managers 

Diana Racanelli and Craig Bethune.

Key Advantages for the Investor 

·    Access to under-researched mid and smaller companies in the precious metals sector

·    Potential inflation protection from precious metals assets

·    Low correlation to major asset classes 

Key Fund Facts¹ 

Ordinary Share and NAV Performance² 

Commentary³ 

The Company's NAV rose 2.83% over May, in line with the VanEck Gold Miners and VanEck Junior Gold Miners ETFs, which rose 2.73% and 3.39%, respectively.

Gold ended May at $4,540/oz, down roughly 1.60% on the month, as the ongoing US-Iran conflict continued to generate a counterintuitive headwind for the metal and trade-related tensions reduced demand for risk-off assets. Rather than its traditional safe haven status, gold has become more closely tied to inflation and yield expectations. Since the conflict began, the chain of events has been selfreinforcing: war drives oil prices higher, higher oil prices drive input costs higher, and higher inflation forces the U.S. Federal Reserve to adopt a more hawkish stance. A strong dollar with elevated real yields is a headwind for non-yielding assets like precious metals. While oil price volatility continues to trend higher amid prolonged disruption in the Strait of Hormuz, the broader economic implications of elevated energy costs could prove supportive of precious metals over time.

Looking ahead, the direction of precious metals may continue to depend on the balance between inflation expectations and real interest rates. At the time of writing, a 14-point plan has been agreed on between the US and Iran, and we're assessing next steps. While sustained inflationary pressures can support demand for hard assets over time, the near-term impact on gold may lead to heightened volatility and heightened sensitivity to headline news. While gold's defensive characteristics were overshadowed this month, several structural factors kept the metal range-bound. De-dollarisation and debasement trades kept demand resilient, with central banks continuing to add to reserves in May. Continued purchases at elevated prices suggest that reserve diversification remains an important source of underlying demand, even as short-term volatility continues.

We also note that financial market participation in gold remained a mixed, but broadly softening story, through May. Managed futures positioning remained elevated, though softening, possibly reflecting short-term sentiment related to geopolitical conflict, while gold ETFs saw broad net outflows as rising global bond yields eroded the metal's appeal. Against this environment, investor positioning was mixed with fast and slow money at odds. A durable reallocation from financial investors likely requires either a moderation of real rates or a broader reassessment of risk assets across the market.

Silver remains a meaningful weight in the Company at 20.6%, reflecting its dual role as both a precious and industrial metal. Pricing was volatile but ultimately flattish as the commodity benefitted from the growing need for AI infrastructure, offset by the impact of the Middle East conflict. Further headwinds emerged for the metal as India restricted imports of high-purity silver bars and all forms of semimanufactured silver as well as more than doubled tariffs on silver and gold imports, while demand for solar infrastructure in China weakened.

Manulife | CQS Investment Management

4th Floor, One Strand, London WC2N 5HR, United Kingdom

T: +44 (0) 20 7201 6900 | F: +44 (0) 20 7201 1200

Tavistock Communications

18 St. Swithin's Lane, London EC4N 8AD

T: +44 20 7920 3150 | [email protected]

Sources: ^1,2 CQS as at the last business day of the month indicated at the top of this report. Performance is net of fees and expenses. New City Investment Managers took over the investment management function on 15 September 2008. These include historic returns and past performance is not a reliable indicator of future results. The value of investments can go down as well as up. Please read the Important Information section at the end of this document. ³ All market data is sourced from Bloomberg unless otherwise stated. The Fund may since have exited some / all the positions detailed in the commentary. ⁵ For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 7, 9 and 10 of Delegated Regulation 231/2013. ⁶ For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 8, 9, 10 and 11 of Delegated Regulation 231/2013.