REG - CQS New City HighYld - Publication of Monthly Report

CQS New City High Yield FundAnnouncement

25/03/2026 11:15

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RNS Number : 1008Y  CQS New City High Yield Fund Ltd  25 March 2026

25 March 2026

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

Monthly Factsheet as at 28 February 2026

The Company's Fact Sheet as at 28 February 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:

 

"Economic conditions in the UK showed signs of improvement in February. Growth
in new orders strengthened across both the manufacturing and services sectors,
although service‑sector employment declined for the seventeenth consecutive
month as firms maintained a focus on productivity and cost‑efficiency
measures. The upcoming increases to age‑related minimum wages on 1 April may
place additional pressure on employers, particularly in labour‑intensive
industries. Inflation remains above the Bank of England's 2% target, tempering
expectations of near‑term interest rate cuts."

"In Europe, business activity continued to expand across both services and
manufacturing, with Germany recording its fastest growth in four months. New
orders improved modestly, particularly within the manufacturing sector.
Employment was broadly stable in Germany and France, but softened elsewhere in
the eurozone. Inflation continued to ease gradually, though not at a pace
expected to prompt any imminent change to the ECB's current policy stance. In
the United States, growth slowed, with overall output expanding at the weakest
rate in ten months. Companies cited subdued demand alongside elevated price
pressures as key factors behind the moderation. Tariff‑related cost
increases remain a concern, contributing to uncertainty around the inflation
outlook and weighing on customer spending across both manufacturing and
services."

"Geopolitical tensions in the Middle East intensified on 28 February after
reports of coordinated strikes involving the United States and Israel against
targets in Iran, including assassinations in Tehran of the supreme leader
Ayatollah Khamenei and members of his immediate family. The situation swiftly
escalated as Iran launched drone and ballistic missile attacks on Israel.
These were followed by strikes on neighbouring Arab states-Saudi Arabia, the
UAE, Kuwait, Qatar, and Bahrain-and the closure of the Strait of Hormuz,
through which over 20% of the world's oil supplies are shipped from the Arab
Gulf to the rest of the world."

"These developments had an immediate impact on markets, most notably in oil
and gas, where Brent crude, which was trading at $70 a barrel on 27 February,
hit $80 on 2 March. In gas, LNG prices rose by 50% after Qatar temporarily
closed the world's largest LNG plant following a drone attack. The medium to
longer-term implications for global growth, trade and inflation will depend on
the duration of the conflict, the extent of any damage to regional energy
infrastructure, and the speed at which production and transport capacity can
be restored."

"While President Trump has suggested the conflict could conclude within a
month, such timelines remain uncertain. As with prior periods of geopolitical
stress, the outlook remains fluid, and further developments will be key to
assessing the impact on markets. For the Company, a dividend of 1p per share
was paid on 28 February. Within the Company's portfolio, we added 9% 2036 to
Saturn Holdings and 8⅞% 2030 to PRA Group. We reduced the holding in
Frontline following a period of strong performance, reallocating part of the
proceeds into a new equity position in Ithaca Energy. We also continued to
trim the position in CO‑OP Bank 11.75% 2034 ahead of the November 2028 call
date, given the potential impact on capital value, though the bond continues
to offer an attractive running yield. We expect continued near‑term
volatility across markets, which may provide selective opportunities within
the bond universe."

-- 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) 07471 357189

                                         E: ncyf@cardewgroup.com (mailto:ncyf@cardewgroup.com)

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

 Company Secretary and Administrator     T: 01534 815216

 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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