REG - CQS New City HighYld - MONTHLY FACTSHEET AS AT 31 JULY 2025

CQS New City High Yield FundAnnouncement

22/08/2025 11:45

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RNS Number : 4502W  CQS New City High Yield Fund Ltd  22 August 2025

22 August 2025

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

Monthly Factsheet as at 31 July 2025

The Company's Fact Sheet as at 31 July 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:

 

"Despite the higher inflation level in June at 3.6%, the UK economy is still
weakening with the S&P Global Flash UK PMI Composite Output Index at 51,
down from 52 in June. Most of the fall was accounted for by a weaker service
sector, whilst the manufacturing output improved to a 9-month high. This
continued subdued business confidence, because of the last budget that
resulted in increasing staff costs, was reflected in the sharply reduced
headcounts in July.

The weakness in the jobs market and the lack of significant growth in the
economy will add pressure on the Bank of England to cut rates further in their
August meeting. The continued pressure on the UK Government's well-publicised
black hole, which is approaching £50 billion, will no doubt heap pressure on
Chancellor Rachel Reeves to raise taxes again in October, without even taking
into account inflation. This is because of the Government's given promise of
not hitting the "Working Person"; these are likely to include an increase in
Capital Gains tax and a further attack on private sector pensions.

The pushback from the Labour Party's back benches on cutting benefits or
reigning back public sector pay and pensions are unlikely to feature. We
believe that the country can no longer afford to fund such a large public
sector with the large pension liability going forward. It is only a matter of
time before markets take this into account and, as a result, there will likely
be higher rates of Government borrowing and a weaker currency.

More positively, Europe looks to be finally turning the corner and regaining
some momentum. Manufacturing continues to claw its way out of recession, as
the service sector increased its growth rate to the fastest in six months.
Looking a little deeper, Germany's manufacturing sector is leading the
recovery, giving the whole German economy a push back into overall growth.
Meanwhile, France is still seeing contraction. A recovery in the French
economy will be key to the long-term growth across the eurozone.

As for the Trade agreement with the US, 15% Tariffs for the European Union are
not as good as the UK managed with 10% so hopefully a benefit for the UK
manufacturers. The Flash PMI results from the US indicate that the economy is
growing at an annual rate of 2.3%, which is 1% higher than the previous
quarter. Sustainability is a question as this is still service sector-led. US
manufacturing decelerated as orders decreased as the front running of tariffs
faded alongside decreased Federal Government spending. Inflation is still a
factor, with tariffs and labor shortages causing increasing costs. Many
economists are forecasting increased inflation in July above the 3% annualised
seen in June. Whilst President Trump may rage at the Federal Reserve for not
cutting interest rates, conventional wisdom would be "higher for longer" to
keep in control of inflation.

July for the Company marked the announcement of the fourth interim dividend of
1.51p/share payable at the end of August.

For the Company's portfolio, it was a quiet month with the sale of its
remaining holding of Croma security equity and the opening of a new holding in
Chesnara 8.5% perpetual a life and pension consolidator in Europe.

-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 709 108

 BNP Paribas S.A., Jersey Branch

 Jeremy Hamon

 

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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