CQS New City High Yield Fund Ltd on Wednesday said it had a ‘good return in a very volatile market’ in the first half of its financial year.
The investor in high yield fixed interest securities said its net asset value total return was 4.85% in the six months to the end of 2025 compared to 3.58% a year prior.
NAV per ordinary share fell 0.5% to 48.15 pence at the end of December from 48.37p at the end of June.
Chair Caroline Hitch said this ‘is a good return in a very volatile market’.
‘Ongoing demand allowed us to continue issuing shares, again something of a current rarity in the investment trust sector,’ Hitch said.
Revenue earnings per share were up 1.3% at 2.29p in the first half from 2.26p a year ago.
Chair Hitch said the revenue account is ‘fairly stable’ as portfolio income benefits from higher interest rates.
The firm has declared two dividends of 1.00p so far, unchanged from the prior year.
It said it expects to follow the same pattern of dividend payments as last year ‘and maintain or slightly increase the total level of dividends for the year’.
Chair Hitch said the company expects that revenue earnings per share for the whole year will cover the total dividend.
Looking ahead, the company said it does not expect a significant global economic downturn that could potentially materially impair the balance sheets of its issuers.
‘Taken together with the portfolio’s broad diversification across sectors and issuers, these factors give me confidence that the company can deliver a full year of attractive dividends and, potentially, a modest level of capital appreciation,’ said Chair Hitch.
Shares in CQS New City High Yield Fund were down 0.4% at 51.19p on Wednesday afternoon in London.
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