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/.
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-
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For
Further Information
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CQS
New City High Yield Fund Limited
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T: +44 (0) 20 7201 6900
E: contactncim@cqsm.com
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Singer Capital Markets
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T: +44 (0) 20 7496 3000
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TB
Cardew
Tania Wild
Henry Crane
Liam Kline
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T: +44 (0) 20 7930 0777
M: +44 (0) 7425 536 903
M: +44 (0) 7918 207 157
M :+44 (0) 7827
130429
E: ncyf@tbcardew.com
https://www.tbcardew.com/
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Company Secretary and Administrator
BNP Paribas S.A., Jersey
Branch
Edward KAZIBWE
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T: 01534 813 967
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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/
