NCYF Distributes Fourth Interim Dividend Amid Ongoing UK Economic Challenges
The CQS New City High Yield Fund Limited (NCYF) has released its monthly factsheet for August 2026, detailing changes to its portfolio and macroeconomic insights from investment managers Ian 'Franco' Francis and Darren Toner.
As of the end of August, the fund distributed its fourth interim dividend and reinvested capital after issuing shares at a premium to net asset value. This marks an uninterrupted record of annual dividend growth since the fund's inception in 2007, with a current dividend yield standing at 8.84% as of February 25, 2026.
New high-yield positions were initiated and existing holdings adjusted, with significant investments made in Vida Group 11.5% AT1 Perpetual bonds, among other assets. The fund's managers also reduced positions in Shamaran Petroleum 12% 2029 and Pinnacle Bidco 10% 2028.
The UK economy remains fragile, with inflation increasing to 2.9%, driven partly by higher household energy costs. Unemployment rose to 5.3% in the three months to June, up from 4.9% in the prior quarter. The Bank of England is expected to adopt a cautious approach amid these pressures.