Annual Overview from QuotedData

CQS New City High Yield Fund Ltd

20 June 2024

 

CQS New City High Yield Fund - Annual Overview from QuotedData

19^th June 2024

Riding the wave of shifting interest rates

CQS New City High Yield Fund (NCYF) is consistently one of the highest-dividend-yielding funds in its debt - loans and bonds peer group and, over the longer term, is also one of its best-performing (see page 17). NCYF has benefitted from an uplift in capital values as the headwind of higher interest rates that weighed on bond valuations in 2022 and 2023 has turned tailwind - a trend which its manager, Ian "Franco" Francis, thinks has further to go.

NCYF looks the best-positioned of its peers to benefit from this, helped by Franco's locking in of decent yields in advance of interest rate falls (see page 7).

NCYF is conservatively managed with a strong emphasis on capital preservation. The portfolio retains its high exposure to the UK. Ian feels the economy is looking a lot healthier and the political outlook is improving. He sees some challenges ahead, but thinks the UK is better placed to manage this turbulence and that the sort of credits that NCYF focuses on will perform well in this environment.

Full Research:

https://quoteddata.com/research/cqs-new-city-high-yield-fund-riding-wave-of-shifting-interest-rates-qd/

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NB: Marten & Co was paid to produce this note on CQS New City High Yield Fund Limited, and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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