Report

Review: Specialist energy sector play with yield

New City Energy (NCE) is a specialist, actively-managed closed-ended fund investing in the energy sector. Performance has been weak with 2014 suffering from the sharp fall in the oil price (see page 5). The manager has increased the focus on dividend-paying, cash-generative companies with strong balance sheets and growth potential within the shale oil and gas sub-sector. This profile should allow NCE both to weather low oil prices and to capitalise on a potential recovery hinted at by trends in capex and drilling rates (see page 3). NCE’s 10.1% yield could well underplay the portfolio’s income generation prospects.
Underlying
New City Energy Ltd

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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