CQS New City High Yield Fund Ltd GBP · LSE:NCYF
CQS New City High Yield Fund Ltd GBP — CQS New City High Yield Fund — Shareholder Meeting (December 2021)
17 slides from CQS New City High Yield Fund Ltd GBP's shareholder meeting presentation, December 2021
Slide 1: CQS New City High Yield Fund Limited AGM December 2021
AGM December 2021 CQS New City High Yield Fund Limited LONDON NEW YORK HONG KONG All Investors should ensure that they have received and read the latest Offering Documentation and www.cqs.com Pre-Investment Disclosure which is available from CQS at clientservice@cqsm.com
Slide 2: CQS in Numbers
CQS in Numbers 20+ $21.4bn ~200 70+ Years AUM Employees Investment Professionals Delivering fundamental, Credit specialist asset Headquartered in London Including specialist research, research-driven investment management across long-only with investment offices in with sectoral, macro-economic acro
Slide 3: Fund Summary
Fund Summary CQS New City High Yield Fund Limited (NCHYF) Fund Aims Focus Jersey-domiciled, London-listed To provide investors with a high Investing in high yielding fixed closed-end fund gross dividend yield and the interest securities. 1 potential for capital growth. 1 AUM: c. £272.8m Yield: c. 8.
Slide 4: Dividends – Rising Payout Profile
Dividends – Rising Payout Profile Progressive Dividends1 Dividends Per Share2 5.0 8.1% Yield Paid gross quarterly 4.4 4.4 4.4 4.5 4.5 4.5 4.5 4.3 4.2 4.1 Extensive track record of rising distributions 3.9 4.0 4.0 3.8 3.7 0.87x revenue reserves (YE 30 June 2021) 3.6 3.5 Diversified income stream 3.0
Slide 5: Share Price and Dividends Total Return Performance
Share Price and Dividends Total Return Performance Since 2007 (rebased to 100) 350 Share Price Dividends Total Return Performance 300 (Rebased to 100 Aug 2007) 250 200 150 100 50 0 Aug 2007 Aug 2010 Aug 2013 Aug 2016 Aug 2019 Nov 2021 CQS New City High Yield Fund Invesco Bond Income Plus Ltd Fund FT
Slide 6: Investment Process
Investment Process Implementation Portfolio Idea Individual Screening & Portfolio Monitoring & Generation Security Analysis Construction Risk Management Daily monitoring of the Initial yield screen: Fundamental research, Seeking optimal portfolio Ongoing portfolio bond, convertible bond, r
Slide 7: Sector Positioning
Sector Positioning September 2019 September 2020 June 2021 (%) (%) (%) Financials 47.4 48.6 45.0 Energy 11.5 14.6 16.5 Industrials 12.9 9.4 10.4 Consumer Discretionary 11.5 7.5 6.0 Consumer Staples 4.5 7.1 8.2 Real Estate 3.2 6.2 6.9 Materials 3.4 4.4 4.1 Information Technology 5.6 2.2 2.9 Total Inv
Slide 8: Investment Themes and Positioning
Investment Themes and Positioning Portfolio is currently 84% fixed income, and 16% Monitoring Risks convertible/equities/preference1 Brexit European Elections Euro 9% Covid-19 Interest Rates Lower for longer US dollar Inflation, how long is transitory 22% Currencies We seek to actively m
Slide 9: Focus on Yield
Focus on Yield Gross Assets1 (%) Current Yield2 (%) CYBG PLC 16-31/12/2049 FRN 5.72 7.7 Shawbrook Group Perp 5.25 8.0 Galaxy Finco LTD 9.25% 19-31/07/2027 5.02 8.8 Onesavings Bank 9 1/8 Perp 4.36 8.7 Boparan Finance 7.625% 20-30/11/2025 3.81 9.4 Aggregated Micro 8% 16-17/10/2036 3.67 8.0 Raven Prope
Slide 10: Discount Premium (%)
Rating Average premium of 5.6% over period 30 March 2007 to 30 November 2021 20 10 0 Discount Premium (%) -10 -20 -30 -40 -50 Aug 2007 Aug 2010 Aug 2013 Aug 2016 Aug 2019 Nov 2021 Source: Bloomberg as at 30 November 2021. 10
Slide 11: Sector Themes
Sector Themes Banks and Financials Portfolio Diversity REITs & Retail Biggest sector 45% of portfolio as at Shipping stocks – Euronav (Equity & REITS have had NAV recovery and 30 June 2021 Debt), American Tanker (US Jones Act share price rises – we believe these will Shipper) continue to recov
Slide 12: Appendix
Appendix
Slide 13: New City Investment Managers
New City Investment Managers* Name Background Experience Ian “Franco” Francis 45 years Variety of senior roles in convertible bond trading Senior Portfolio Manager (Collins Stewart, West LB Panmure, and sales including Head of Convertibles, CQS New City High Yield Fund Ltd James Capel & Co and H
Slide 14: Current Funds Under Management
Current Funds Under Management Fund Structure Objective Total assets CQS New City High Yield Jersey closed-end To provide investors with a high gross dividend yield and the Fund Limited (‘NCHYF’) investment company potential for capital growth by mainly investing in high yielding c. £273m fixed inte
Slide 15: Biographies
Biographies Ian Francis Keith Watson Craig Cleland Robert Crayfourd Ian ‘Franco’ Francis is CIO New City, and a Keith is joint Portfolio Manager for Golden Craig is Head of Corporate Development: Robert is joint Portfolio Manager for Golden Senior Portfolio Manager for CQS’ New City Prospect Preciou
Slide 16: Global Offices
Global Offices London New York Hong Kong CQS (UK) LLP CQS (US), LLC CQS (Hong Kong) Limited 4th Floor, One Strand, London 152 West 57th Street, 40th Floor, New York. 1308 One Exchange Square, WC2N 5HR, United Kingdom NY 10019, US 8 Connaught Place, Central, Hong Kong T: +44 (0) 20 7201 6900 T: +1 21
Slide 17: Important Information
Important Information This document has been issued by CQS (UK) LLP which is authorised and regulated by the made may be adversely affected. CQS is not liable for any decisions made or action taken by you UK Financial Conduct Authority, CQS (US), LLC which is a registered investment adviser with or
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