REG - CQS New City HighYld - PUBLICATION OF MONTHLY REPORT

CQS New City High Yield FundAnnouncement

24/04/2026 11:15

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RNS Number : 8612B  CQS New City High Yield Fund Ltd  24 April 2026

24 April 2026

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

Monthly Factsheet as at 31 March 2026

The Company's Fact Sheet as at 31 March 2026 has been issued 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:

 

"Market conditions in March were dominated by a sharp escalation in
geopolitical risk following the outbreak of hostilities involving Iran, which
led to a pronounced increase in volatility across global asset classes. The
impact was most immediately felt in energy markets, though the effects
subsequently broadened to rates, credit, equities and currencies.

Oil prices rose sharply over the month, with Brent crude increasing from
$72.29 per barrel to $103.95 per barrel. Price action was highly volatile,
reflecting concerns around potential supply disruptions, particularly
following the closure of the Strait of Hormuz, through which a significant
proportion of global oil supply is transported. Market sentiment was further
unsettled by mixed and frequently shifting policy signals from the United
States, heightening uncertainty.

Bond and equity markets weakened globally. In the UK, government gilt prices
declined, as witnessed by the UK 10 year benchmark gilt, falling by 4% over
the month, with losses briefly exceeding 5% around mid March. Credit markets
also repriced meaningfully, with the iTraxx Europe Crossover Index widening
from 259.23 basis points to 353.15 basis points, equivalent to an increase in
yields of close to 1%.

Equity markets were similarly affected. The FTSE All Share Index fell by 7.2%,
declining from 5,851.48 to 5,430.69, while the FTSE 100 Index decreased by
6.84% over the same period. Sterling weakened against the US dollar, falling
1.3% from $1.3482 to $1.3227. Gold prices also declined, dropping 11.57% from
$5,278.95 to $4,668.06 per troy ounce, highlighting the absence of traditional
safe haven behaviour during the month.

It is important to note that there was no safe haven asset class in
conventional markets in March, which can be explained by the disruption to
global trade, the production of oil, and the knock-on effect of longer-term
disruption to supply and inflation increasing globally. As the United States
is energy self-sufficient, although they will suffer a price shock, they are
unlikely to see any supply shortage which in theory means that their economy
will not be as badly impacted as those in Europe or Asia. 10-year treasuries
fell from 101.16 to 98.14 at the end of March, a drop of just under 3%, which
indicates increased fears of persistent inflation for the US economy.

For the Company, the net asset value declined from 48.77p per share to 47.45p
per share over the month, representing a 2.7% fall.

Within the portfolio, we added to our equity position in Ithaca Energy and
initiated a new holding in Legal & General equity. We reduced the holding
in Galaxy Bidco to 8.125%, reallocated proceeds to Virgin Media 7.875% 2032,
and opened a new position in Deutsche Pfandbriefbank 8.474% perpetual.

Given the ongoing conflict and heightened market volatility, our focus remains
on assessing the medium to long-term implications of a potential extended
disruption to energy infrastructure in the Middle East and its impact on
global growth and inflation. As developments continue to evolve rapidly, we
expect volatility to remain elevated and are positioned accordingly."

-- 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

 Claudia De Michiel                      M: +44 (0) 7471 357 190

                                         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 the Company

 

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 25 February 2026, the Company's dividend
yield was 8.84%. 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/)

LEI: 549300KMGN75B0PTWT07

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