Strong year for CQS New City High Yield

CQS New City High Yield (NCYF) has reported its annual results for the year ended June 30, 2024 NAV Total return of 19.07% and a total share price return of 22.73%. The dividend The yield was 8.62% based on dividends at an annual rate of 4.50p and a share price of 52.20p as at 30 June 2024. NCYF continued to trade at a premium This allowed the company to continue to issue new shares and grow (£13,480,000 in equity was raised during the year). Sales revenue remained strong, which made it possible plank to increase the dividend slightly to 4.50 pence per share and maintain NCYF's record of uninterrupted dividend increases since 2007 (Dividend coverage of 1.00x for the year). Against the backdrop of forecast falling interest rates, albeit at a steady pace, the global economic outlook appears reasonably good and we remain optimistic that the company will deliver a healthy performance in the coming year.

Ian “Franco” Francis, manager of NCYF, said: “The prevailing higher interest rates in the financial year have allowed us to find quality investments in stocks and sectors that were previously too difficult to invest in due to lower yields.” That too The general economic environment has improved, albeit marginally, benefiting both market confidence and fixed income markets. We remain positive in our outlook as we continue to identify investment opportunities across a broad and diverse range of sectors and stocks, and we expect high yield and financial issuance to resume at the end of the third quarter and beginning of the fourth quarter of 2024. “

The announcement did not contain or have the full text of the annual results Annual report has already been published on the NCYF website at the time of writing, so we cannot comment further at this time.