City Merchants High Yield has announced results for the year ended 31 December 2015. The fund produced a total return on net assets of 2.7% and a return to shareholders of 0.9%. The dividend was maintained at 10p.
According to data from Merrill Lynch, European currency high yield bonds had a total return for the year of 1.6% (the combination of a 5.4% income return and a -3.8% price return). Within this euro high yield returned 0.8% and sterling high yield, where prices were more stable, returned 5.4%. The aggregate yield for European currency high yield rose from 4.88% to 5.90%. This return compares to 0.5% for sterling investment grade bonds, 0.5% for UK Gilts and 0.3% for German Bunds.
CMHY : City Merchants High Yield reports 2.7% return for 2015