CQS New City High Yield Fund

The CQS New City High Yield Fund consistently appears alongside UK-focused dividend trusts like City of London Investment Trust and diverse income vehicles such as Henderson Far East Income and CT Private Equity. These portfolios frequently integrate US energy MLPs like MLPP and preferred stock funds like PFFA to boost yield. By pairing NCYF with these assets, investors aim to balance the fund's fixed-income-like credit exposure with the growth potential of private equity and regional dividend plays, typically maintaining a modest allocation between 3 and 10 percent to manage overall portfolio volatility.

EuroFolio members utilize NCYF primarily as a tactical income enhancer within broader multi-asset strategies rather than as a core holding. The data shows that when NCYF is capped at lower weightings of 3 to 5 percent, portfolios achieve higher Sharpe ratios and lower maximum drawdowns, suggesting it functions best as a yield-kicker that complements larger, more stable positions. While some long-term strategies hold up to 8 percent, the most successful variations demonstrate that limiting NCYF exposure helps mitigate the volatility inherent in its high-yield credit focus while still contributing to a robust total return profile.