Cqs New City High Yield Share Discussion Threads

[ramellous] 19/8/2020 12:47

Had a mention on interactive investor.



A more intriguing option is CQS New City High Yield (LSE:NCYF), a £233 million trust run by equally seasoned bond investor Ian Francis. This high-income specialist yields an eye-watering 9.3%, which indicates that it is not for the nervous. Nevertheless, the shares trade on a premium of around 3%, which is far lower than many other specialist income-producing trusts. But what adds to the attractions of this trust are its revenue reserves: at £17.3 million and rising this equates to almost a year’s worth of the previous year’s total dividend, which is a handy cushion.

[nice_bloke] 17/7/2020 16:48

A bit long but worth a read
hxxps://quoteddata.com/research/cqs-city-high-yield-sitting-pretty/

[hutch421] 16/7/2020 17:35

Today's (improved) dividend announcement should calm a few nerves imho.

[cc2014] 10/7/2020 15:41

Sad to say I think all these types of funds should be trading at a discout. By definition if the fund manager is taking say 1% and the coupons of the investments are say 6% then the return can only ever be 5%. You might as well go and by the underling istruments yourself.

Of course many we can't buy as they are out of reach at minimum 200k but I think my point still stands.


Sadly I think alot of the recent inflows are from income hunters who do not fully appreciate the risks involved it the underlying investments. I suspect they will sell and move back to their regular dividend payers once dividends start coming back. I also suspect they are going to find they don't have a very strong market to sell into.

So, I think I'll be waiting a year to buy back into this one..

I don't think the dividend is sustainable at its current rate. It never has been looking at the capital depreciation since 2012

[my retirement fund] 10/7/2020 13:42

Frankly stunned to see it trading at alleged NAV. I would expect a 15 to 20% discount to NAV. Still the market knows best as always! Lol.

[cc2014] 10/7/2020 13:06

Large sellers seem to be striking through bid and selling below market, which appear to be being moved on to retail PI's at prices just above bid.

I.e. buyers are paying less than mid and trades getting reported as sells.



I read the research piece at length and it was good to see so much detail. The market didn't seem too excited and we've seen a bit of selling pressure but nothing significant. I expect there will be some pain somewhere down the line. It's a high yield debt fund and some of it will go wrong.

I'm hoping for a spike down for an entry but market doesn't seem in the mood. Plenty of retail buyers still coming.

[zac0_4] 05/7/2020 22:20

see link below for research piece from Quoted Data. Some points of interest - no defaults to date on debt payments - not clear as to whether share price / nav has been permanently damaged - final dividend payment is likely to be in line with final payment last year - not clear whether continued year on year dividend increases is sustainable - have cash on hand around 87% of value of yearly dividend payments to use as support if needed. Here's link:

[cc2014] 29/6/2020 11:27

The challenge of course is that over the 9 year period, high yield debt firms should have had a good run. Corporate balance sheets have been rebuilt, we've seen significant central bank intervention and defaults have been very low.

I would imagine we now enter a phase where defaults are going to increase. Indeed the share price has already gapped down to reflect this. The question is whether is has gapped down enough and looking at bond prices generally right now I'd say not. Borrowing rates are still far too low for the underlying risks.

[vacendak] 29/6/2020 11:21

Good point, this takes care of the drawdown automatically.
People can save on fees to sell every six months! :)

[rahosi] 29/6/2020 11:14

In such retiree investments, where the dividends are high but the capital declines, they still outperform annuities!

[andyj] 24/6/2020 15:28

Totally agree. Whilst they pay a good income, the price has fallen 35% in the last nine years. Effectively reducing the income by 4% a year. Very rarely do income funds manage to beat quality investment trusts, where the dividend might be lower, but the total returns higher. That said, if I was retired I might happily invest here.

[zac0_4] 20/6/2020 11:06

A market downturn is the acid test of which investments are most resilient. All my income paying investments have performed terribly over the past 6 months - HHI -18%, MRCH -25%, NCYF -15%. All figures include capital and dividends. Alternatively I have a number of investment funds which have clearly outperformed - L&G Global Tech +20%, Rathbone Global Opps +15%, Blue Whale Growth +14%. My mind is now made up! I'll move away from income paying investments and investments that are linked with the UK stock market and move entirely, over a period of time, to Investment Funds. Less worry and better returns!!

[hutch421] 08/6/2020 22:16

Looks like a Covid graph to me.

[irkin] 08/6/2020 05:28

How about this:

[hutch421] 07/6/2020 22:35

This dog poo is presently offering a 10 percent annual dividend so tell me where else you can find a similar return?

[tim 3] 06/6/2020 11:07

With you andy if there is one thing I have learnt from the crash its to stay away from dog poo stuff like this!

[neilyb675] 06/6/2020 08:53

The Net Asset Value (NAV) at 04/06/2020 was:

Per Ordinary share (bid price) - including 46.10p
unaudited current period revenue

Per Ordinary share (bid price) - excluding 45.39p
current period revenue

[panshanger1] 04/6/2020 13:15

Cheer up !!Fed might come to the rescue

[andyj] 03/6/2020 14:19

With much of the market recovering, NCYF plods along waiting for the next fall. Still waiting to exit my last ever income fund.

[neilyb675] 16/4/2020 12:22

The Company announces its third interim dividend of 1.00 pence per share (2019 - 1.00 pence) payable on 29 May 2020 to shareholders on the register on 24 April 2020, having an ex-dividend date of 23 April 2020.

[tim 3] 09/4/2020 16:26

Andy j
Sod it just got offered 49.2 so took it the wild moves were not what I opted for when buying this.Thanks for your input confirmed what I was thinking anyway.

[andyj] 09/4/2020 16:11

I agree, I am hanging on for 50p which, after dividends will represent break even/minor profits. A poor return really for a holding of several years. I find these supposed income funds habitually disappointing. They tend to go nowhere in bull markets and crash the moment markets wobble, erasing years of dividends! I am moving increasingly towards funds that pay a lesser dividend but provide long term capital appreciation such as...HMWO BRNAHGTFEVMTUJAGI I mainly use preference shares for income.

[tim 3] 09/4/2020 15:57

Thanks andyj good input thank good was not spooked into selling below 30!Tempted to sell here considering my options at present although I think the virus will pass in time nobody really knows what the repercussions will be especially with Trump throwing everything including the kitchen sink at the market to keep it up.

[andyj] 09/4/2020 15:21

I should add my reasons are:Premium of 11%The likelihood of lockdowns being extended indefinitely The prospect of Europe falling apart The US earnings season due imminently Recriminations against China that will eventually follow the end of the virus.But the virus has not shown any signs of going away yet. Please don't sell on account of my reasoning, DYOR.

[andyj] 09/4/2020 15:14

Yes it seems that the world is quickly dismissing the threat of the virus after worrying that it was the end of the world last month! I think reality is somewhere between the two and at an 11% premium, I'm happy taking a loss here and conserving cash for the falls ahead.