CQS New City High Yield Fund says its net asset value total return was 1.0% for the year ended 30 June 2016. The share price total return for the same period was 4.7% and the premium increased to 3.5%. The fund’s earnings per share were 4.50 pence for the year, essentially unchanged from the 4.51 pence earned the previous year. They declared three interim dividends of 0.97 pence in respect of the period, and one of 1.45 pence. The aggregate payment of 4.36 pence per share represents a 1.2% increase on the 4.31 pence paid last year.
The investment manager says that they made a number of tactical trades during the year as there were opportunities to upgrade the portfolio both in terms of quality and revenue; examples would be selling Ecclesiastical 8 5/8% perp, Santander 10 3/8% perp well above par and re investing in bonds such as Pizza Express 8 5/8% 2022, Perform Group 8 1/2% 2024, Altice 7.25% Euro denominated bonds of 2022 and more of the Altice 7 3/4% Dollar denominated bonds of 2022. Market anomalies provided a few opportunities to invest in what they considered to be grossly under-priced bonds such as Tesco Property Finance 7.6227% and Scottish Widows 7% 2043 both around or just below par.
In addition Europcar 9.375% 2018, House of Fraser 8 7/8% 2018 and AA 9.5% 2019 were redeemed early and we replaced those position with
Iceland 6 3/4% 2024 and IDH Finance 8 1/2% 2024.
NCYF : CQS New City High Yield ups dividend