Escalators do not go to the sky!
Ian “Franco” Francis, the manager of CQS New City High Yield (NCYF), says that although markets seem buoyant, investors should be warier than they are. He sums this up with a quote from his former boss, who cautioned him by saying “Escalators do not go to the sky”. This is not to say that there aren’t any opportunities in the market (for example, currently he sees these in the financials and discount consumer retail sectors), but investors must be selective and position themselves appropriately.
In this regard, NCYF’s portfolio has a relatively short duration, to protect against rising interest rates, and to allow the manager to take
advantage of opportunities in a market downturn. In the meantime, NCYF offers an attractive dividend yield and low volatility returns that have beaten (UK inflation) the consumer price index, Libor and the MSCI UK Index by significant margins over the last 10 years.
CQS New City High Yield Fund is a closed-end investment company. Co. invests predominantly in fixed income securities, including, but not limited to, preference shares, loan stocks, corporate bonds (convertible and/or redeemable) and government stocks. Co. also invests in equities and other income yielding securities. Co. has appointed CQS (UK) LLP, a subsidiary of CQS Cayman Limited Partnership, as Co.'s alternative investment fund manager.
QuotedData you with provides access to research on Investment Companies, Investment Trusts and Mining companies. Our aim is to provide you all the information you might need to make your own investment decisions. We cannot offer you advice on your investments.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.