New City High Yield makes 10% for year

CQS New City High Yield steady in face of Brexit worries

NCYF : New City High Yield makes 10% for year

New City High Yield generated a total return on net assets of 10.3% for the year that ended on 30 June 2014. The shareholder return was 13.7% as the shares moved to trade on a 4.6% premium. The dividend was raised to 4.21p.

The manager’s report says they added to core holdings of Phoenix 7.25% 2021, British Airways 6.75% preferred, General Accident 8.875% preferred, Domestic and General 7.875% 2021, and Odeon 9.5% 2019. It says they participated in tap issues from Antares Energy 10% 2023 and Tizir 9% 2017, the majority of the funds invested coming from the on-going tap issue along with money received from the call by Skipton building society of its 10% bonds 2018 in early December 2013, and Ocean Rig of its 9.5% bond 2016.
In March 2014, they sold the position in Coop Bank equity at a price of 530p/share which was the high for the shares which were issued as part of the restructuring in quarter four of 2013 at 375p/share enabling the company to exit its position flat from its original purchase in April 2013.

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