Title: Document Title URL Source: https://is.gd/0vdYSX Published Time: Wed, 25 Jun 2025 10:13:54 GMT Markdown Content: 1 # Investor # Report CQS New City High Yield Fund Limited # (“the Company”) 31 March 202 5 Key Facts 1 > Portfolio Manager Ian ‘Franco’ Francis > Launch Date October 2004 > Total Gross Assets £321 .3m > Reference Currency GBP > Ordinary Shares Net Asset Value: > 48. 39 p > Bid -Market Price: > 50.80 p > Dividend Yield (est .)8.82 % > Gearing 12.00 % > Premium ( Discount )4.98 % > Ordinary Shares in Issue 591 ,65 1,858 > Ongoing Charge Ratio 1.18% > Annual Management > Fee > 0.8% p.a. on assets up to > £200 million > 0.7% p.a. on assets over > £200 million and up to > £300 million > 0.6% p.a. on assets > greater than £300 million > Bloomberg NCYF LN > Reuters NCYF.L > Sedol B1LZS51 GB > Year End 30 June > Contact Information CQSClientServices@ > cqsm.com > Company Broker Singer Capital Markets > +44 (0) 207 496 3000 > AGM December > Dividend Information > 202 4/2 5 > 1.00p paid > 29 November 202 4 > 1.00p paid > 21 February 2025 > Fiscal Year -End 30 June > Previous Dividend > Information > 2007/08 Total 3.57p > 2008/09 Total 3.65p > 2009/10 Total 3.75p > 2010/11 Total 3.87p > 2011/12 Total 4.01p > 2012/13 Total 4.10p > 2013/14 Total 4.21p > 2014/15 Total 4.31p > 2015/16 Total 4.36p > 2016/17 Total 4.39p > 2017/18 Total 4.42p > 2018/19 Total 4.45p > 2019/20 Total 4.46p > 2020/21 Total 4.47p > 2021/22 Total 4.48p > 2022/23 Total 4.49p > 2023/24 Total 4.50p > Investor Report Monthly Factsheet > Annual Report & Accounts Published October Description The objective of CQS New City High Yield Fund Limited is to provide investors with a high dividend yield and the potential for capital growth by investing mainly in high -yielding fixed interest securities Key Advantages for the Investor ▪ Access to a high -income asset class and a well -diversified portfolio ▪ Low duration to help mitigate interest rate risk ▪ Quarterly dividends paid to shareholders Ordinary Share and NAV Performance 2 1 Month (%) 3 Months (%) 1 Year (%) 3 Years (%) 5 Years (%) 10 Years (%) NAV (0.35) 1.17 8.60 24.49 75.56 89.36 Share Price (0.39 ) 1.15 6.92 23.42 93.11 83.54 Ian Francis Portfolio Manager Commentary 3 Please Note: This report covers March 2025, pre the “Liberation Day” tariffs from President Trump and subsequent market gyrations. Market focus in the UK in March centred around the Chancellor’s Spring Statement. It included welfare cuts and large cuts to be made from all government departments with the hope of saving 15% in administration costs by 2030, including a reduction in the h eadcount by 10,000 jobs. Also included was a major increase to the defence budget as a result of the increased Russian threat and lessening support of the US to its NATO allies. The latter element is to be funded by the decrease in the overseas aid budget from 0.5% to 0.3% of gross national income by 2027. What rang the most alarm bells was the Office for Budget Responsibility (OBR) cutting 2025 growth forecasts from 2% to 1% and forecasting 3.2% average inflation for 2025. These forecast cuts point to the danger of possible stagflation unless the private sector can increase efficiency over and above the inflation -busting rises in minimum wages, National Insurance and business rates arriving in April. This is not likely to be an easy task with President Trum p announcing 25% tariffs on all imported vehicles from the 2nd April, coming soon after Rachel Reeves Spring Statement , which could put a potential ly large dent in UK exports just when export earnings are needed the most. At the time of writing, the raft of tariffs expected on 2nd April had not been announced. Further comments from the OBR suggested a close -to -even chance of the spending targets being met. They put the chances of the UK keeping within the spendings target at 54% and the other rule for minim ising public debt at 51%. 4 The European economy appeared to witness the first green shoots of recovery in early to mid - March. The standout element was the manufacturing sector which grew for the first time in nearly 3 years. Meanwhile, the services sector hit a seven month high and, as a result, the period of rising unemployment dating back to August 2024 seemed to be coming to an end. This is when measured across the whole zone, although France and Germany were still experiencing reductions in staff levels. European inflation was st ill falling, down to 2.2% in March from 2.3% in February. European economies are increasing defence spending across the board as the US is seen to be stepping back from its support of European allies. This will have an ongoing positive effect on their defe nce industries. On the 26th March, President Trump announced a 25% tariff on all autos and auto parts being imported into the US. This will likely have a large negative effect on Germany, France, Sweden, Slovakia and Italy, and comes on top of the large de nt being made on European auto manufacturers by the influx of cheap and efficient electric vehicles (EV’s) from China. Source s: 1 BNP Paribas Securities Services F.C.A., as at the last business day of the month indicated at the top of this report . 2 BNP Paribas Securities Services F.C.A., total return performance net of fees and expense based on bid prices. These include historic returns and past performance is not a reliable indicator of future results. The value of investments can go down as well as up. Please read the important legal notice at the end of this document. 3 All market data sourced from Bloomberg unless otherwise stated. Returns quoted in local currencies unless otherwise stated. The Company may have since exited some/all of the positions detailed in this commentary. 4 Source: Office for Budget Responsibility, ‘Economic and fiscal outlook’, March 2025. 2 # Monthly Investor Report – CQS New City High Yield Fund Limited – March 2025 Portfolio Analysis 1,6 Breakdown by Asset Class Sources: 1 BNP Paribas Securities Services F.C.A., as at the last business day of the month indicated at the top of this report. 4 Manulife | C QS Investment Management as at the last business day of the month indicated at the top of this report . For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 7, 9 and 10 of Delegated Regulation 231/2013. 5 QS as at the last business day of the month indicated at the top of this report . For methodology details see Article 4(3) of Directive 2011/61/EU (AIFMD) and Articles 6, 8, 9, 10 and 11 of Delegated Regulation 231/2013. 6 All holdings data are rounded to two decimal places. Total may differ to sum of constituents due to rounding. The Company is regulated by the Jersey Financial Services Commission. Top 10 Holdings (%) 1,6 Name (% of NAV) SHAWBROOK GROUP 22 -08/06/2171 FRN 5.02 VIRGIN MONEY 22 -08/12/2170 FRN 4.74 RL FINANCE NO6 23 -25/11/2171 FRN 4.20 TVL FINANCE 10.25% 23 -28/04/2028 4.03 GALAXY BIDCO LTD 8.125% 24 -19/12/2029 3.97 AGGREGATED MICRO 8% 16 -17/10/2036 3.62 REA FINANCE 8.75% 15 -31/08/2025 3.32 STONEGATE PUB 10.75% 24 -31/07/2029 3.30 BARCLAYS PLC 22 -15/12/2170 FRN 3.28 INSPIRED ENTERTA 7.875% 21 -01/06/2026 2.60 Top 10 Holdings Represent 38.08 87.05% 12.95% Fixed Income Convertibles/Equities/Preference AIFMD Leverage Limit Report (% NAV) Gross Leverage (%) 4 Commitment Leverage (%) 5 CQS New City High Yield Fund Limited 11 1 11 1 Commentary 3 The economy in the US appeared to fall back to a two -speed mode. It is still showing good strength overall , but manufacturing fell back into decline as the front running of potential tariffs increased output in January and February. Overall business confidence has fallen to one of the gloomiest for the last three years due to the spectre of future tariffs, major Federal spending cuts and possible inflation as a result of these tariffs. Manufacturing has seen its cost base increase at the fastest rate for two years and has been passing on these inflated costs to their customer base. Fortunately, the service secto r remains at subdued levels, which will please the Federal Reserve when they look to keep on track for future rate cuts. The main swathe of tariffs is being announced on the 2nd April, and their extent and effects will be covered in next month’s factsheet . In March, 25% tariffs were imposed on Canada and Mexico with a lesser 10% rate being applied to energy and potash. For China, a further 10% was add ed on top of the 10% levied in February. For the Company’s portfolio, we continued to downsize the holding of Co -Op Bank 11 3,4% 2034, with the proceeds being reinvested into Aareal Bank 9.875% perpetual. We increased h oldings of SP Cruises 11.5% 2030 and reduced exposure to Selecta Group 8% as a result of our change in view of the group’s prospect s.3 # Monthly Investor Report – CQS New City High Yield Fund Limited – March 202 5 > Important Information Manulife | CQS Investment Management is a trading name of CQS (UK) LLP which is authorised and regulated by the Financial Conduct Authority. This document has been issued by CQS (UK) LLP and/or CQS (US), LLC which is a registered investment adviser with th e US Securities and Exchange Commission, The term “CQS” or “Manulife | CQS Investment Management” as used herein may include one or more of CQS (UK) LLP, CQS (US), LLC or any other affiliated entity. The information is intended solely for sophisticated inv estors who are (a) professional investors as defined in Article 4 of the European Directive 2011/61/EU or (b) accredited investors (within the meaning given to such term in Regulation D under the U.S. Securities Act of 1933, as amended) and qualified purch asers (within the meaning given to such term in Section 2(a)(51) of the U.S Investment Company Act 1940, as amended). This document is not intended for distribution to, or use by, the public or any person or entity in any jurisdiction where such use is pro hibited by law or regulation. Manulife | CQS Investment Management is a wholly owned subsidiary of Manulife Investment Management (Europe) Limited. This document is a marketing communication prepared for general information purposes only and has not been delivered for registration in any jurisdiction nor has its content been reviewed by any regulatory authority in any jurisdiction. The information con tained herein does not constitute: (i) a binding legal agreement; (ii) legal, regulatory, tax, accounting or other advice; (iii) an offer, recommendation or solicitation to buy or sell shares or interests in any fund or investment vehicle managed or advise d by CQS (a “CQS Fund”) or any other security, commodity, financial instrument, or derivative; or (iv) an offer to enter into any other transaction whatsoever (each a “Transaction”). Any decision to enter into a Transaction should be based on your own inde pendent investigation of the Transaction and appraisal of the risks, benefits and appropriateness of such Transaction in light of your circumstances. Any decision to enter into any Transaction should be based on the terms described in the relevant offering memorandum, prospectus or similar offering document, subscription document, key investor information document (where applicable), and constitutional documents and/or any other relevant document as appropriate (together, the “Offering Documents”). Any Tran saction will be subject to the terms set out in the Offering Documents and all applicable laws and regulations. The Offering Documents supersede this document and any information contained herein. The Offering Documents for CQS UCITS range of funds is avai lable here (https://www.cqs.com/ucits -funds#global -convertibles ) in English (US persons will not be eligible to invest in CQS managed UCITS funds save to the extent set out in the relevant Offering Document). A copy of CQS’ Complaints Policy, which sets out a summary of investors’ rights, is available here (www.cqs.com/site -services/regulatory -disclosures) in English. CQS may terminate the arrangements for marketing or distribution of any CQS Fund at any time. Nothing contained herein shall give rise to a partnership, joint venture or any fiduciary or equitable duties. The information contained herein is provided on a non -reliance basis, not warranted as to completeness or accuracy, and is subject to change with out notice. Any information contained herein relating to any non -affiliated third party is the sole responsibility of such third party and has not been independently verified by CQS. The accuracy of data from third party vendors is not guaranteed. If such information is not accurate, some of the conclusions reached or statements made may be adversely affected. CQS is not liable for any decisions made or action taken by you or others based on the contents of this document and neither CQS nor any of its directors, officers, employees or representatives accept any liabilit y whatsoever for any errors or omissions or any loss howsoever arising from the use of this document. Information contained in this document should not be viewed as indicative of future results as past performance of any Transaction is not indicative of future results. Any investment in a CQS Fund or any of its affiliates involves a high degree of risk, i ncluding the risk of loss of the entire amount invested. The value of investments can go down as well as up. Don’t invest unless you’re prepared to lose all the money you invest. This is a high -risk investment and you are unlikely to be protected if something goes wrong. Future performance is subject to taxation which depends on the personal situation of each investor and which may change in the future. Investments may lead to a financial loss if no guarantee on the capital is in place. An investment in any CQS Fund will involve a number of material risks which include, without limitation, risks associated with ad verse market developments, currency and exchange rate risks, risk of counterparty or issuer default, and risk of illiquidity. Any assumptions, assessments, targets (including target returns and volatility targets), statements or other such views expressed herein (collectively “Statements”) regarding future events and circumstances or that are forward looking in nature constitute CQS’ subjective views or beliefs and involve inherent risk and uncertainties beyond CQS’ control. Any indices included in this doc ument are for illustrative purposes only and are not representative of CQS Funds in terms of either composition or risk (including volatility and other risk related factors). Unless stated to the contrary CQS Funds are not managed to a specific index. The information contained herein is confidential and may be legally privileged and is intended for the exclusive use of the intended recipient(s) to which the document has been provided. In accepting receipt of the information transmitted you agree that yo u and/or your affiliates, partners, directors, officers and employees, as applicable, will keep all information strictly confidential. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information is prohibited. Any distribution or reproduction of this document is not authorized and prohibited without the express written consent of CQS, or any of its affiliates. Unless otherwise stated to the contrary herein, CQS owns all intellectual property rights i n this document. PRI Note: PRI is an investor initiative in partnership with UNEP Finance and the UN Globa l Compact. GMv1 2. > G1334081 /04.25 London 4th Floor, One Strand, London WC2N 5HR, United Kingdom T: +44 (0) 20 7201 6900 | F: +44 (0) 20 7201 1200 New York 152 West 57 th Street, 40th Floor, New York, NY 10019, US T: +1 212 259 2900 | F: +1 212 259 2699 CQSClientServices@cqsm.com www.cqs.com Follow us DISCLOSURE INSIGHT ACTION