REG - CQS New City HighYld - Monthly Factsheet as at 30 September 2024

CQS New City High Yield FundAnnouncement

28/10/2024 07:00

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RNS Number : 7412J  CQS New City High Yield Fund Ltd  28 October 2024

28 October 2024

CQS New City High Yield Fund Limited

("NCYF" or the "Company")

Monthly Factsheet as at 30 September 2024

The Company's Fact Sheet as at 30 September 2024 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/) .

The investment manager updates on the wider macro-economic environment and on
key changes to the portfolio positions as at 30 September 2024.

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

"September in the UK saw some positive news on the economy, with inflationary
stresses calming further and the private sector showing growth, although not
as strong as in August. Employment in the private sector was not quite as
rosy, as manufacturing was still cutting jobs, while the more buoyant service
sector showed only a slight increase in hiring.

Manufacturing was sending signals of a more significant underlying problem:
declining pre-production inventories and finished goods stocks, weaker demand
for goods, and increased supply chain delivery times. Subject to the effects
of the Budget at the end of this month, it appears highly likely that the Bank
of England will decrease rates again before the end of the year.

Regarding the Budget, the markets have not yet reacted to various rumours and
counter rumours about what will be taxed and to what extent. As we have
mentioned before, this could be the most impactful budget since the Thatcher
era and will set out how markets view the Labour-run UK economy and how hard
individual investors are hit. Most importantly, the question will be which
areas will genuinely benefit?

The Eurozone is in a much worse position than either the US or the UK. The
temporary boost seen in France over the Olympics is in the rear-view mirror
with the French HCOB Flash Composite Output index falling to 47.7 against
August's robust 53.1. Manufacturing continued to be weak and, unsurprisingly,
Services fell to a six-month low. The only real upside in data across the
Eurozone was that the fall in input and output inflation could encourage the
European Central Bank (ECB) to cut rates further. Manufacturing needs a boost
as the sector has been in recession for 27 months and is shedding jobs at the
fastest rate since August 2020. It is looking likely that the Eurozone is
heading for stagnation.

The US economy remains in expansion mode and relies on the services sector for
growth. The September PMI figures imply a GDP growth of 2.2% in the third
quarter. However, looking forward to the fourth quarter, the uncertainty
caused by the forthcoming presidential election is causing concern for much of
the private sector, in both manufacturing and services. Inflation is still not
under control, and wage inflation is still a particular worry in services,
where wage increases are at their fastest rate for 12 months.

The Company's main purchases during the month were Investec 10.5% perpetual;
Aston Martin 10.375% 2029; Travelodge 10.25% 2028; 3 t Global 11.25% 2028;
Bluewater Holdings 12% 2026; and Tullow Oil 10.25% 2026. Due to continuing
market demand, the liquidity for these purchases came from issuing shares."

-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

 TB Cardew                               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@tbcardew.com (mailto:ncyf@tbcardew.com)

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

 Company Secretary and Administrator     T: 01534 813 967

 BNP Paribas S.A., Jersey Branch

 Edward KAZIBWE

 

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 2023, the Fund's dividend yield
is 9.13%. 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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