CQS New City High Yield’s net asset value fell by 3.0% to 56.9 pence per share during the six months ended 31 December 2015. Adjusted for the payment of dividends totalling 1.94 pence per share for the period the net asset value total return was essentially flat at -0.1%. The share price total return for the same period was substantially the same at -0.3%, the small premium to net asset value at which the shares traded at 30 June 2015 becoming a small discount at 31 December 2015.
They declared two dividends of 0.97 pence in respect of the period, an increase of 0.1% on those declared in respect of the same period last year. Based on an annualised rate of 4.34 pence and a share price of 54.25 pence at the time of writing, this represents a yield of 8.0%.
Within the portfolio, they continued to take profits on Phoenix 7 1/4%, General Accident 8 7/8% preferred and British Airways 6 3/4% preferred with the proceeds being recycled into Perform Group 8.5% 2020 and Old Mutual 7 .875% 2025. Five bonds were called during the period including Europcar 9.375% 2018, AA 9.5% 2019 and House of Fraser 8 7/8% 2018; the proceeds were mostly invested into IDH finance 8 1/2% 2019 (Europe’s largest Dental chain), Co-op Bank 8 1/2% 2025, Iceland 6 3/4% 2024 and Barclays 7.875% perpetual.
NCYF : New City High Yield NAV return flat in H2 2015