CQS New City High Yield Fund (NCYF) has appointed Darren Toner as its co-portfolio manager as Ian “Franco” Francis prepares to step back from the trust.
Darren is a senior portfolio manager at Manulife | CQS Investment Management and is responsible for managing high yield, investment grade and financial strategies within its multi asset credit business. He is already co-portfolio manager of the CQS Dynamic Credit Multi Asset Fund and assistant portfolio manager of the CQS Credit Multi Asset Fund, plus some bespoke multi asset credit mandates. Before joining CQS in 2010, Darren worked at GE Capital in London within the leveraged finance business, where he joined the graduate scheme in 2005.
Darren and Franco have worked closely together for 15 years. Darren has been closely involved in supporting Franco’s management of the NCYF portfolio: identifying and assessing potential investments and in portfolio construction, particularly over the past two-years.
Franco is planning to step back from managing the NCYF portfolio after a transition period of 12 months. During this transition period, Darren and Franco, supported by CQS’s 40 strong team of asset class specialists and analysts, will work closely to ensure continuity in the management of the portfolio and a smooth handover of responsibilities. When the transition period ends in May 2027, Franco will remain available to the company as a consultant to advise and guide Darren and his team for a period of approximately three years.
The trust’s chair Caroline Hitch said: “I am very pleased to welcome Darren as co-portfolio manager to NCYF. Darren has been making a positive contribution to the company for many years and over the transition period we will all work closely to ensure continuity in the investment process, while maintaining our focus on delivering attractive returns. I remain confident in the strength of the manager’s investment approach and that shareholders will continue to benefit from a well-resourced and disciplined, opportunity-led strategy.”
Franco described this as a natural next chapter for the company, saying Darren’s extensive experience across the corporate high yield and broader credit markets combined with his deep knowledge of the portfolio, means he is very well positioned to support the continued success of the strategy.
QuotedData’s Matthew Read said “While shareholders might naturally feel some concern at the prospect of Ian “Franco” Francis stepping back after such a long and successful tenure at CQS New City High Yield, it is fair to say that, when Ian departs, the fund will be left in very safe hands. Darren Toner is not a new face being introduced to the strategy, but someone who has worked with Franco for 15 years and is already very familiar with the portfolio, the underlying credits and the investment process. Importantly, Darren will also continue to have access to the broader resources of the Manulife | CQS credit platform, including the extensive analyst and specialist credit team that has long supported Franco himself. Combined with the lengthy handover period and Franco’s ongoing involvement as a consultant thereafter, we think shareholders should view this more as an evolution that preserves continuity, rather than a disruption.”
