CQS New City High Yield posts 16% return – CQS New City High Yield says that its net asset value total return was 16.13% for the year ended 30 June 2017. The share price total return for the same period was stronger at 18.36%. The company declared three interim dividends of 0.98 pence in respect of the period, and one of 1.45 pence. The aggregate payment of 4.39 pence per share represents a 0.7% increase on the 4.36 pence paid last year.
There is next to no comment on the portfolio in the manager’s report except “During the year we saw a number of bonds in the portfolio being “called” by the underlying corporate entity – on occasions we were able to anticipate this ahead of the event and sell the stock at a premium to the call price. We also took advantage of market rallies to sell some of our top holdings such as Matalan at good prices. We saw a number of quality new issues over the year and participated where we saw value. An example would be One Savings Bank 9.125% Perpetual. The market background leads us to continue to keep the portfolio as diversified as possible while focussing on producing the required yield. We continue to look at situations which provide the opportunity for both income and capital much as we have in the past. We would expect these to be in sectors where we see an improving credit environment.”
NCYF : CQS New City High Yield posts 16% return