CQS New City High Yield Fund Raises Dividend As Net Asset Value Grows

26th Mar 2018 16:09

LONDON (Alliance News) - CQS New City High Yield Fund Ltd on Monday lifted its dividend as net asset value per share rose year-on-year, but it warned about world politics unsettling the market.

Net asset value per share grew to 58.58 pence as at December 31 from 57.47p as a year prior. NAV per share fell slightly, however, compared with 58.77p as at June 30.

The stock was down 0.8% at 59.71p per share on Monday.

NAV total return was 3.9% for the six months to the end of December.

Share price total return was 2.7% after the share price premium to NAV narrowed to 5.8% from 6.8% as at June 30.

The fixed income investment company declared two dividends of 0.99p in respect of the period, up 1.0% from 0.98p paid in the first half of the prior year. CQS also said it intends to pay an annualised dividend of 4.42p.

The firm had effective gearing of 12% and during the half year it raised GBP9.0 million through share issue. Since the period end, an additional GBP3.1 million has been raised via share issue.

CQS Chairman James West said: "Markets have digested a considerable amount of political change, but it is politics that continue to give us most cause for concern. Since the period end, equity markets which had looked to a robust United States economy and a eurozone that continues to recover strongly have begun to see increased volatility in the face of talk of a trade war. Bond markets, too, reflect some of the risks, with global bond yields and spreads rising."

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