REG - CQS New City HighYld - Monthly Fact Sheet as at 31 May 2025

CQS New City High Yield FundAnnouncement

20/06/2025 07:00

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RNS Number : 6440N  CQS New City High Yield Fund Ltd  20 June 2025

20 June 2025

CQS New City High Yield Fund Limited
(NCYF or the Company)

Monthly Factsheet as at 31 May 2025

The Company's Fact Sheet as at 31 May 2025 has been submitted and is available
for inspection on the Company's
website, https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd/
(https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd/) .

Ian 'Franco' Francis, Investment Manager at New City High Yield Fund comments:

After an abysmal April for the UK, business moved into a moderate May.
Although, the S&P Flash UK Composite Output index was still in negative
territory at 49.4 against 48.5 in April. More positive news on tariffs and
trade deals certainly helped the UK economy, but the negative sentiment from
increasing costs of National Insurance, minimum wages and business rates is
still subduing confidence and currently having negative effects on more
manufacturing-focused employment. The recent strength of Sterling will
certainly have a positive effect on inflation figures for now, which may allow
the Bank of England to cut rates further in the coming months. But there is
still the danger of wage inflation in the public sector running higher as
unions flex their muscles again. Towards the end of the month, the media
increased the speculation of substantial tax rises to come in the Autumn
budget statement, which does not help sentiment or encourage investment in UK
businesses. Growth in the economy still seems a distant dream.

 

In Europe, the 90-day delay in US tariffs had a positive effect on
manufacturers. For the third month in a row, good news came out of Germany and
France. Interest rates and oil prices in Germany are also starting to benefit
from the expansionary fiscal policy implemented by the new coalition
government. Weaker domestic demand in the Services sector saw business
activity shrink for the first time this year. This has had a positive knock-on
effect on inflation as output prices cool. Input prices in the form of wages
are still growing, but are being mitigated to some extent by the lower energy
costs. Forecasts that the ECB will continue with rate cuts over the rest of
this year seem to be baked into most economists' calculations.

 

The figures for the US economy showed that both output growth and business
sentiment improved from a weak April (although still in growth territory) and
some of the positivity linked to the front running of orders after the 90-day
delay in tariffs. This has led to a large increase in input inventories since
it was first measured 18 years ago. Output prices have pushed higher as
companies pass on tariff costs to end users. It was interesting to note that
President Trump chastised Walmart for passing on these tariff-related rises to
consumers.  Again, the higher level of inflation will make it very difficult
for the Federal Reserve Bank to cut rates in the near term.

 

The delay in tariff implementation in the hope of trade deals coming pre
implementation is setting markets up for a potentially volatile period when
markets are less liquid in July and August. The ongoing wars in Ukraine and
Gaza could also move markets, as President Trump appears to be losing patience
with President Putin and many western governments are worried about potential
genocide in Gaza.

 

For the Company we paid the third interim dividend of 1penny per share at the
end of the month.

 

A busier month for the portfolio as we had Aggreko 8.75% 2027 called and a
partial call on Bluewater 12% 2026, Shamaran Petroleum 12% 2029 and Tullow oil
10.25% 2026. To replace both yield and currency exposure we added to Cruise
Yacht 11.875% 2028. In the Sterling element, we added to Boparan 9.375% 2029,
Asda 8.125% 2030 and opened a holding in the niche bank Zopa 12.875% perpetual
at new issue.

 

 

 

-ENDS-

 

 

 For Further Information

 CQS New City High Yield Fund Limited    T: +44 (0) 20 7201 6900

                                         E: contactncim@cqsm.com

 Singer Capital Markets                  T: +44 (0) 20 7496 3000

 Cardew Group                            T: +44 (0) 20 7930 0777

 Tania Wild                              M: +44 (0) 7425 536 903

 Henry Crane                             M: +44 (0) 7918 207 157

 Liam Kline                              M :+44 (0) 7827 130429

                                         E: ncyf@cardewgroup.com (mailto:ncyf@cardewgroup.com)

                                         https://www.cardewgroup.com/ (https://www.cardewgroup.com/)

 Company Secretary and Administrator     T: 01534 813 959

 BNP Paribas S.A., Jersey Branch

 Guerhardt Lamprecht

 

About CQS New City High Yield Fund Limited

 

CQS New City High Yield Fund Limited aims to provide investors with a high
dividend yield and the potential for capital growth by investing in
high-yielding, fixed interest securities. These include, but are not limited
to, preference shares, loan stocks, corporate bonds (convertible and/or
redeemable) and government stocks. The Company also invests in equities and
other income-yielding securities.

Since the Fund's launch in 2007, the Board has increased the level of
dividends paid every year. As at 31 December 2024, the Company's dividend
yield was 8.79%. In addition to quarterly dividend payments, the Fund seeks to
deliver investors access to a high-income asset class across a
well-diversified portfolio with low duration to help mitigate interest rate
risk.

Further information can be found on the Company's website
at https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd/
(https://ncim.co.uk/cqs-new-city-high-yield-fund-ltd/)

 

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