CQS New City High Yield Fund Limited (NCYF:LSE) delivered a resilient investor update highlighting strong company performance, disciplined portfolio management, and an attractive income proposition despite ongoing volatility in global credit markets. Chair Caroline Hitch emphasized a solid financial track record, including a 7.5% share price total return for the year to June 2025 and a further 4.5% since the new financial year began, supported by continued strong demand and a current yield of 8.8%. Investment Manager Ian Francis reiterated the trust’s focus on delivering high income and capital preservation through diversified exposure to fixed income (85%+), selectively complemented by high-yielding equity opportunities. The fund continues to maintain a premium to NAV and has issued more than 33 million new shares since the year-end to meet investor demand. Francis detailed a robust research-led credit strategy underpinned by Manulife’s global alternative credit platform, targeting strong risk-adjusted yields across financials, energy, hospitality, and specialty lending, with ongoing monitoring of gearing and currency positioning. Key holdings, including Shawbrook, Barclays, Travelodge, and Stonegate, contribute compelling revenue streams, while proactive stewardship supports dividend sustainability and long-term capital growth. Despite macro headwinds—including UK fiscal policy concerns, pressure on hospitality margins, and wider sector weakness in alternatives—the portfolio remains well-positioned with disciplined risk controls, deep management experience, and active engagement with underlying companies ahead of refinancing cycles. Overall, management reaffirmed confidence in the trust’s income strategy, ongoing premium rating, and growth outlook, positioning NCYF as a stable, investor-focused high-yield vehicle.