In this episode of Trusts in Focus, we examine CQS New City High Yield Fund (NCYF), a specialist high-yield bond trust focused on delivering an attractive level of income while carefully managing risk.
We explore how the managers invest across specialist areas of the fixed income market, including financial debt, smaller and less liquid bond issues, and selected high-yield equities. We also discuss why the trust's closed-ended structure allows it to access opportunities that are often unavailable to larger open-ended funds.
The video covers the trust's long record of dividend growth, its positioning within financials, the role of contingent convertible bonds (CoCos), the impact of interest rates on performance, and why active credit research is central to the investment process. We also examine recent performance, the outlook for high-yield markets, and what investors should consider when investing in the trust.
00:00 Introduction
00:35 The trust's income objective and dividend record
01:05 Why specialist high-yield debt offers opportunities
01:50 The portfolio and manager transition
02:30 Currency exposure and investment approach
03:05 Performance and the impact of interest rates
03:55 Volatility, resilience and stock selection
04:50 Premium rating and outlook
05:20 Further information
05:30 Risk warning
Please note that this video was recorded in July 2026.
