CQS New City High Yield Fund Limited
(“NCYF” or the “Company”)
Interim Report for the six months ended 31 December 2025
CQS NEW CITY HIGH YIELD FUND LIMITED has published its interim report for the period ended 31 December 2025. A copy can shortly be found on the Company’s website NCIM – CQS New City High Yield Fund LTD – Fund Page, on the National Storage Mechanism (National Storage Mechanism | FCA), and will also be provided to those shareholders who have requested a printed or electronic copy.
Highlights:
- NAV total return of 4.85% for the six months ended 31 December 2025
- Ordinary share price total return of 4.61% for the six months ended 31 December 2025
- Dividend yield of 8.81%, based on dividends at an annualised rate of 4.51 pence and an ordinary share price of 51.20 pence as at 31 December 2025
- Ordinary share price at a premium of 6.33% as at 31 December 2025
- £22,545,000 of equity issued during the six months to 31 December 2025
Caroline Hitch, Chair of New City High Yield Fund, commented: “I am pleased with the strong results in the first half of the year, where NAV total return was 4.85%, delivered against a backdrop of continued volatility in bond markets. The share price also performed well, delivering a total return of 4.61% while the Company continues to offer an attractive dividend yield of 8.81%. I believe NCYF is well positioned for a steady journey, despite some on-going turbulence, partly due to the portfolio’s relatively short duration of between three and four years, which should help to moderate any impact of interest rate and yield movements. The credit quality of our holdings is critical, and, in this regard, we do not anticipate a significant global economic downturn that might materially impair the balance sheets of corporations, including possibly our issuers. Taken together with the portfolio’s broad diversification across sectors and issuers, these factors give me confidence that the Company can deliver a full year of attractive dividends and, potentially, a modest level of capital appreciation.”
Ian “Franco” Francis, Portfolio Manager at New City High Yield Fund, commented: “Amid elevated long-term bond yields and ongoing uncertainty, we have maintained a short portfolio duration of just over three years. The UK economy seems to be in a better place with both sentiment and growth improving while globally, inflation is starting to cool. This will enable Central Banks to cut rates further to boost economies, which should also be a positive for bond markets. We maintain our focus on remaining diversified and continue to see attractive opportunities across UK, European, and Scandinavian corporate bonds. While near-term market volatility may persist, we remain confident in the medium-term prospects for high-yield investors.”