CQS
NEW CITY
HIGH YIELD FUND LIMITED
ANNUAL REPORT & FINANCIAL STATEMENTS
30 JUNE 2022

CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Purpose and Strategy
The purpose of the Company is to provide Shareholders with a high dividend yield and the potential for capital growth by investing predominantly
in high yielding fixed interest securities. To achieve this, the strategy of the Company is to follow the investment policy outlined on page 13 of this
report and to utilise the benefits of being a closed-ended investment vehicle.
Dividends Declared in Respect of Each Financial Year
3.5
3.6
3.7
3.8
3.9
4.0
4.1
4.2
4.3
4.4
4.5
4.6
2021/222020/212019/202018/192017/182016/172015/162014/152013/142012/132011/122010/11
Dividend per ordinary share (pence)
Source: Bloomberg
Net Asset Value Total Return and Share Price Total Return
Index restated to 100 from 30 June 2010
Source: BNP Paribas Securities Services S.C.A., Jersey Branch
Bloomberg and Morningstar
80
100
120
140
160
180
200
220
240
260
Net asset value total return (dividends reinvested)
Share price total return (dividends reinvested)
June
2022
June
2021
June
2020
June
2019
June
2018
June
2017
June
2016
June
2015
June
2014
June
2013
June
2012
June
2011
June
2010
Total return index

1
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
CQS New City High Yield Fund Ltd
Contents
Financial Highlights
2 Financial Highlights
Strategic Report
3 Statement from the Chair
5 Investment Manager’s Review
6 Classification of Investment Portfolio
7 Investment Portfolio
9 Ten Largest Holdings
10 Principal Risks and Uncertainties and Risk Mitigation
12 Stakeholders – Section 172 Statement and Principal Decisions
13 Strategic Review
Directors’ Reports and Governance Reports
16 Statement of Directors’ Responsibilities
in respect of the Annual Report and Financial Statements
17 Board of Directors and Investment Manager
20 Directors’ Report
22 The Board and Committees
24 Statement of Compliance with the AIC Code
25 ESG statement of the Company
28 Report of the Audit and Risk Committee
30 Directors’ Remuneration Report
Independent Auditor’s Report
31 Independent Auditor’s Report to the members
of CQS New City High Yield Fund Limited
Financial Statements
36 Statement of Comprehensive Income
37 Statement of Financial Position
38 Statement of Changes in Equity
39 Cash Flow Statement
40 Notes to the Financial Statements
Supplemental Information and
Annual General Meeting
55 Glossary of Terms and Definitions
56 Alternative Performance Measures
59 Explanation of Annual General Meeting resolutions
60 Notice of Annual General Meeting
62 Report of the Investment Manager relating to Matters under the
Alternative Investment Fund Managers’ Directive (unaudited)
63 Corporate Information

2
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Strategic Report Financial Highlights
Financial Highlights
NAV and share price total return
**
Year to
30 June 2022
Year to
30 June 2021
Net asset value
*
(NAV) 2.04% 21.38%
Ordinary share price 1.21% 26.31%
Capital Values 30 June 2022 30 June 2021 % change
Total assets less current liabilities (with the exception of the bank loan facility) £268.0m £267.2m 0.30%
NAV per ordinary share
*
49.30p 52.62p (6.31%)
Share price (bid)
1
51.20p 54.80p (6.57%)
Revenue and Dividends 30 June 2022 30 June 2021 % change
Revenue earnings per ordinary share
**
4.16p 4.18p (0.48%)
Annual dividends per ordinary share
**
4.48p 4.47p 0.22%
Dividend cover
**
0.93x 0.94x (1.06%)
Revenue reserve per ordinary share (after recognition of annual dividends)
**
3.26p 3.78p
Dividend yield
**
8.75% 8.16%
Premium
**
3.86% 4.14%
Gearing
**
12.35% 9.21%
Ongoing charges ratio
**
1.19% 1.25%
Dividend History Rate xd date Record date Payment date
First interim 2022 1.00p 28 October 2021 29 October 2021 30 November 2021
Second interim 2022 1.00p 27 January 2022 28 January 2022 25 February 2022
Third interim 2022 1.00p 28 April 2022 29 April 2022 27 May 2022
Fourth interim 2022 1.48p 28 July 2022 29 July 2022 26 August 2022
Annual dividend per ordinary share 4.48p
First interim 2021 1.00p 22 October 2020 23 October 2020 30 November 2020
Second interim 2021 1.00p 28 January 2021 29 January 2021 26 February 2021
Third interim 2021 1.00p 29 April 2021 30 April 2021 28 May 2021
Fourth interim 2021 1.47p 29 July 2021 30 July 2021 31 August 2021
Annual dividend per ordinary share 4.47p
1
Source: Bloomberg
* The definition of the terms used can be found in the glossary on page 55.
** A description of the Alternative Performance Measures used above and information on how they are calculated can be found on pages 56 to 58.

3
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Statement from the Chair Strategic Report
Statement from the Chair
Highlights
• Net asset value total return of 2.04%
• Ordinary share price total return of 1.21%
• Dividend yield of 8.75%, based on dividends at an annualised rate of
4.48 pence and a share price of 51.20 pence as at 30 June 2022
• Ordinary share price trading at a premium of 3.86% as at
30 June 2022
• £17.2m of equity raised during the year to 30 June 2022
Investment and Share Price Performance
When I last wrote to Shareholders in February of this year, I reported on
steady progress for the Company in terms of NAV and share price but
noted there were worrying signs of increasing inflation and to mitigate
this effect, central banks had begun to increase interest rates. The
second half of the Company’s financial year has indeed been much more
difficult as the terrible invasion of Ukraine by Russia has unfolded.
Markets have been rattled by this situation and the rising energy costs
which followed. However, the full year performance numbers show
that the net asset value of the Company managed a small positive total
return of 2.04% and 1.21% from the total share price return.
The premium stood at 3.86% as at 30 June 2022, close to the previous
year-end figure of 4.14%.
The economic and geopolitical backdrop to your Company’s financial
year, particularly the second half, has been exceptionally difficult. The
ongoing COVID-19 pandemic is still causing issues across the world,
notably with supply chains, to which rising inflation and interest rates
and the geopolitical events in the Ukraine have been added. In terms of
direct impact, the Company experienced a 3.1% portfolio loss following
the write-down of Raven Property Group Ltd and Raven Russia 12%
09-31/12/2059, investments connected to Russia. Your Investment
Manager, Ian (“Franco”) Francis, has many years of experience working
in volatile markets utilising his underlying philosophy and stock
selection to construct a diverse portfolio and this has been put to good
use in the current environment. In my opinion, your Company’s portfolio
results this year against this backdrop of negative news are
commendable and come on the back of the net asset value total return
of over 21% last year. The Investment Manager’s review on page 5
provides more details.
Earnings and Dividends
The Company’s revenue earnings per ordinary share were 4.16 pence
for the financial year, 0.5% lower than the 4.18 pence earned last year.
Earnings were impacted by the passing of coupons from Raven Property,
as detailed above. In my report last year, I noted that the Board was
monitoring the potential reduction in investment opportunities
available to the Company because of declining yields. This trend looks
to be reversing because of recent rises in interest rates from central
Governments which means that the Investment Manager is finding a
greater range of suitable securities to invest in. This bodes well for
future earnings.
The Company declared three interim dividends of 1.00 pence in respect
of the period and one interim dividend of 1.48 pence since the year end.
The aggregate payment of 4.48 pence per ordinary share represents a
0.22% increase on the 4.47 pence paid last year. The Board recognises
the importance of the relatively high dividend to Shareholders and as
flagged in previous reports, decided to utilise 0.32 pence per ordinary
share of our 3.78 pence per ordinary share revenue reserves to cover
the shortfall of earnings. The Board also decided to increase this
year’s dividend, albeit marginally, to maintain the Company’s record of
annual increases which has been unbroken since 2007.
Looking forward, the Board expects to pay similar dividends in the
current financial year to last, possibly drawing modestly on our
reserves but anticipating some increase in earnings per ordinary
share. As I wrote in last year’s report, the Board believes that this
policy is supported by our Shareholders whom we consult regularly
and we envisage continuing in this way in the near future, utilising one
of the advantages of being a closed-ended fund.
Gearing
In December 2021, the Company replaced its existing loan facility with
Scotiabank with a two year £45m facility at a current all-in rate of
1.45% plus a daily non-cumulative RFR rate with the same bank. Of
this facility, £33m was drawn down at 30 June 2022 and the Company
had an effective gearing rate of 12.35%. As I have shared in previous
reports, the Board believes that a modest but meaningful amount of
gearing (another notable advantage of closed-ended funds compared
to open-ended) is desirable and expects to maintain approximately this
level of gearing during the next financial year.
Share Issuance
For most of the year to 30 June 2022, the market attached a premium
rating to your Company’s shares, allowing us to issue new shares in
a gradual manner and only when your Investment Manager was
confident he could invest the additional funds favourably. £17.2m was
raised from new and existing Shareholders during the review period,
with 31.6m ordinary shares issued from the block listing facility. As
well as a modest increase in net asset value from any issue of shares,
the Board believes that over time existing Shareholders will benefit
from lower ongoing charges and greater liquidity in the Company’s
shares, all other things being equal.
Environmental, Social and Governance
(“ESG”) Statement
The Board’s intention is to invest responsibly and to consider the
Company’s broader impact on society and the environment. We believe
the integration of ESG factors in the investment process is consistent
with delivering sustainable attractive returns for Shareholders through
deeper, more informed investment decisions. The Board has reviewed
and agreed the ESG approach adopted by the Company and a summary
of this is set out on pages 25 to 27.

4
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Strategic Report Statement from the Chair
Statement from the Chair
Notice of Annual General Meeting
The notice of the Annual General Meeting to be held at 11.00 a.m. at
IFC1, The Esplanade, St. Helier, Jersey, JE1 4BP on 1 December 2022,
including the proposed resolutions, can be found on page 59. The
Board considers that the passing of the resolutions to be proposed at
the Annual General Meeting is in the best interests of the Company
and its Shareholders as a whole and is most likely to promote the
success of the Company for the benefit of the Shareholders as a whole.
The Board unanimously recommends that all Shareholders vote in
favour of these resolutions.
Outlook
The environment is particularly uncertain at present and unlikely to
become less so in the immediate future. We can be pretty sure we will
see further interest rate rises but how this translates into the inflation
trajectory and impact on economic growth is not clear. However, I believe
that your Company’s portfolio has the attributes to weather the current
storm. I have written before that the short remaining life of the majority
of our fixed interest investments gives us some protection from rising
yields and I expect that the rigorous credit analysis carried out by the
team of your Investment Manager on the bond issuers reduces our
default risk. Finally, the portfolio is well diversified including some
exposure to currencies other than sterling and small but significant
holdings in equities. All these factors add up to a robust portfolio and
overall, I believe we are in good shape to continue delivering attractive
returns to our shareholders.
Caroline Hitch
Chair
15 September 2022

5
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Investment Manager’s Review Strategic Report
Investment Manager’s Review
Introduction
After a quiet six-month period to the end of December 2021, the second
half of our financial year has seen major political and economic
upheavals. As the restrictions from the latest COVID-19 Omicron
variant began to recede, markets began to focus more on inflation
concerns and what central Governments could do to rein in rampant
inflation levels. Then came the dreadful Russian invasion of Ukraine in
February 2022 which brought the spectre of an all-out war to Europe
and caused commodities prices, particularly in energy, to increase
substantially and exacerbate the worries over inflation. Equity and
Bond markets in the first six months of 2022 have fallen sharply as
investors have become concerned about inflation and the potential for
economic recessions. The Company’s portfolio has been affected by a
Russia connected investment of which further details are provided
below; nevertheless, the diverse nature of our portfolio holdings has
meant that the overall net asset value total return for the 12 months to
30 June 2022 is a positive one at a modest 2.04%.
Market and economic review
The first half of our financial year saw economists and market
commentators begin to realise that the spectre of inflation was more
permanent than they had previously thought. At the end of June 2021,
the UK CPI reading was an annual increase of 2.4%; by the end of
December 2021 this had reached 5.4% and at our year-end in June
2022 consumer inflation was a massive 9.1%. A similar pattern
emerged in the US and Europe. Up until the start of December 2021
equity stock markets seemed to shrug off worries over inflation and
COVID-19 restrictions and were generally positive with major indices
at near all-time highs in many markets. Markets started to come off
their highs late in 2021 and fell sharply in January 2022 as economies
stalled as supply chains were under pressure from rising inflation and
ongoing COVID-19 restrictions.
As we started February, concerns were raised about the developing
mobilisation of a considerable Russian force on the border of Ukraine.
Despite warnings from western governments, on 24 February 2022 we
saw the terrible full-on attack on various areas of Ukraine, from which
point western sanctions have been massively increased. The continuing
Russian invasion of Ukraine has increased the pressures on supply
chains and inflated prices for oil, gas, and many hard and soft
commodities. The net effect is the slowing of economic growth and
post-pandemic recovery globally. Government largesse is constrained
as the concerted stimulus to protect economies during the early
COVID-19 era is largely at an end. Generally, the major tool available to
central banks to curb inflation is interest rates and we have started to
see a wave of interest rate rises around the world.
Markets have fallen sharply in 2022 as investors worry about inflation
and slowing growth with the spectre of “stagflation” becoming apparent.
In the UK, the FTSE All-Share Index fell by 6.6% over the six months to
the end of June 2022 as the high weighting to commodity stocks help
mitigate the fall whereas the Euro Stoxx 600 fell by 16% and the S&P
500 fell by 20.6% over the same period. High yield bond markets were
also weak falling by around 14%.
Portfolio Review
We have continued to maintain a diversified portfolio across a range of
sectors and during the year we have increased the proportion of the
portfolio held in non-sterling currencies to help protect against
sterling weakness.
The Company’s portfolio was negatively affected by the Ukraine conflict
as we held investments in a Guernsey domiciled company called Raven
Property Group which has direct exposure to Russia. Its main business
is operating warehouses for Western companies in St. Petersburg and
Moscow. At the end of January, we had 2.9% of the Company’s portfolio
in the Raven Property 12% preference shares and 0.2% in its ordinary
shares. Following the invasion, Raven suspended its shares and
advised it was unlikely to be able to continue maintaining normal
operations. It has since been delisted from the stock exchange, coupon
payments on the preference shares have ceased and the price of both
securities has been written down to zero in the Company’s portfolio.
We are monitoring the position and will wait to see what happens to
Raven Property when hopefully the situation stabilises.
Three of the new holdings in the top ten over the year are positions that
we have held for some time and have made their way into the top ten
more recently, namely REA Finance, Stonegate Pub Group and
Diversified Energy. There are two other new holdings in the top ten;
Mangrove Luxco 7.775% 2025 which is a holding company for a German
heat exchange manufacturer and Hawk Debtco 10.5% 2024 which is a
financing company for an Aberdeen based energy services firm.
The revenue account has seen earnings per ordinary share of 4.16p
come in below our total dividend of 4.48p for the year. In past years we
have been able to put significant sums into the revenue reserves and
we have again modestly utilised these this year to ensure that this
dividend is paid to shareholders. In my regular discussions with
shareholders the revenue and dividends are topics of crucial
importance and the ability of any portfolio company to pay its coupon
or expected dividend is one of the major indicators we follow.
Outlook
The background for the short to medium term is hardly a positive one.
There is the prospect of stagflation in the UK, increasing interest rates,
double digit inflation, increasing unrest from major unions in the UK
promising an autumn and winter of discontent. We have a new prime
Minister in the UK and she has an onerous task ahead of her in trying
to change existing policies in order to tackle the cost-of-living crisis.
There are also a host of external factors out of the control of the UK
government such as the ongoing war in Ukraine and continuing
lockdowns in China.
For the Company, whilst all the above put stresses and strains on the
markets, we have a diverse portfolio across sectors and currencies and
imperfect markets should create opportunities for prudent investment.
We have seen these types of market before and will continue to work
hard for you.
Ian “Franco” Francis
New City Investment Managers
15 September 2022

6
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Strategic Report Classification of Investment Portfolio
Classification of Investment Portfolio
As at 30 June
By Currency
2022 Total
investments
%
2021 Total
investments
%
Sterling 62 68
US Dollar 23 22
Euro 12 9
Swedish Krona 2 –
Norwegian Krone 1 1
Total investments 100 100
By Asset Class
2022 Total
investments
%
2021 Total
investments
%
Bonds 81 84
Equity shares 19 15
Convertible Bonds – 1
Total investments 100 100
Classification of Investment Portfolio by Sector
As at 30 June
2022 Total
investments
%
2021 Total
investments
%
Financials 36.9 45.0
Energy 21.8 16.5
Industrials 10.8 10.4
Consumer Discretionary 10.1 6.0
Consumer Staples 9.0 8.2
Information Technology 4.9 2.9
Real Estate 4.3 6.9
Materials 2.2 4.1
Total Investments 100.0 100.0

7
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Investment Portfolio Strategic Report
Investment Portfolio
As at 30 June 2022
Company Sector
Valuation
£’000
Total
Investments %
Galaxy Finco Ltd 9.25% 31/07/2027 Financials 12,774 4.9
Shawbrook Group 31/12/2059 FRN Financials 12,409 4.7
Virgin Money FRN PERP Financials 12,188 4.6
Aggregated Micro 8% 17/10/2036 Energy 10,900 4.1
Co-Operative Fin 25/04/2029 FRN Financials 8,616 3.3
REA Finance 8.75% 31/08/2025 Consumer Staples 8,592 3.3
Stonegate Pub 8.25% 31/07/2025 Consumer Discretionary 8,308 3.2
Mangrove Luxco Ltd 7.775% 19-09/10/2025 Financials 7,637 2.9
Hawk Debtco Ltd 10.5% 22/12/2024 Industrials 7,507 2.8
Diversified Energy Co Plc Energy 7,490 2.8
Top ten investments 96,421 36.6
Albion Financing 8.75% 21-15/04/2027 Industrials 7,221 2.7
Boparan Finance 7.625% 30/11/2025 Consumer Staples 7,192 2.7
Arrow Bidco LLC 9.5% 15/03/2024 Consumer Discretionary 6,858 2.6
American Tanker 7.75% 02/07/2025 Energy 6,489 2.5
Euronav NV Energy 6,026 2.3
Garfunkelux Hold 7.75% 20-01/11/2025 Financials 5,708 2.2
VPC Specialty Lending Invest Financials 5,004 1.9
Just Group Plc 31/12/2059 FRN Financials 4,583 1.7
Inspired Enterta 7.875% 21-01/06/2026 Information Technology 4,537 1.7
Azerion Holdings 7.25% 28/04/2024 Information Technology 4,344 1.7
Top twenty investments 154,383 58.6
M&G Plc Financials 4,281 1.7
REA Holdings Plc PREF Consumer Staples 4,215 1.6
Ithaca Energy N 9% 21-15/07/2026 Energy 4,208 1.6
Matalan Finance 9.5% 18-31/01/2024 Consumer Discretionary 3,845 1.5
Enquest Plc 7% 15/10/2023 Energy 3,689 1.4
Shamaran 12% 05/07/2023 Energy 3,550 1.3
Phoenix Group Holdings Plc Financials 3,542 1.3
Euronav Lux 6.25% 21-14/09/2026 Energy 3,508 1.3
Barclays Plc 29/12/2049 FRN Financials 3,481 1.3
Deutsche Bank AG 30/05/2049 FRN Financials 3,370 1.3
Top thirty investments 192,072 72.9
Stonegrate Pub 8% 20-13/07/2025 Consumer Discretionary 3,311 1.2
TVL Finance 9% 20-15/01/2025 Consumer Discretionary 3,228 1.2
Welltec A/S 9.5% 01/12/2022 Energy 3,200 1.2
Bombardier Inc 7.5% 15/03/2025 Industrials 3,175 1.2
Channel Island Property Fund Real Estate 3,060 1.2
Coburn Resources 12% 20/03/2026 Materials 3,041 1.2
RM Secured Direct Lending Plc Financials 2,864 1.1
Siccar Point Energy 9% 04/03/2026 Energy 2,783 1.1
Petrotal Corp 12% 16/02/2024 Energy 2,774 1.0
First Quantum 7.5% 01/04/2025 Materials 2,640 1.0
Top forty investments 222,148 84.3
Summer BC Holdco 9.25% 19-31/10/2027 Industrials 2,377 0.9
HDL Debenture 10.375% 93-31/07/2023 Real Estate 2,270 0.9
Tufton Oceanic Assets Ltd Financials 2,261 0.9
Doric Nimrod Air Three Ltd Industrials 2,177 0.8
Oaknorth Bank 01/06/2028 FRN Financials 2,020 0.8
Lloyds Banking 29/12/2049 FRN Financials 1,948 0.7

8
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Strategic Report Investment Portfolio
Company Sector
Valuation
£’000
Total
Investments %
AEW UK REIT Plc Real Estate 1,929 0.7
Gaming Innovation 11/06/2024 FRN Information Technology 1,893 0.7
Independent Oil 20/09/2024 FRN Energy 1,752 0.7
Lloyds Banking 29/12/2049 FRN Financials 1,746 0.7
Top fifty investments 242,521 92.1
NewRiver REIT plc Real Estate 1,642 0.6
Greenfood AB 21-04/11/2025 FRN Consumer Staples 1,639 0.6
Kent Global Plc 10% 28/06/2026 Energy 1,440 0.5
Palace Capital Plc Real Estate 1,260 0.5
Navig Topco Holding 12% 03/05/2023 Industrials 1,254 0.5
Regional REIT Ltd Real Estate 1,072 0.4
Nor5ke Viking 21-03/05/2024 FRN Information Technology 1,037 0.4
House Of HR 7.5% 15/01/2027 Industrials 1,002 0.4
Harbour Energy Plc Energy 868 0.3
Navigator Holdings 8% 10/09/2025 Energy 818 0.3
Top sixty investments 254,553 96.6
REA Holdings Plc 7.5% 30/06/2026 Consumer Staples 764 0.3
Casino Guichard 31/01/2049 FRN Consumer Staples 757 0.3
REA Trading 9.5% 21-30/06/2024 Consumer Discretionary 650 0.3
Shamaran 12% 21-30/07/2025 Energy 631 0.3
Croma Security Solutions Group Information Technology 625 0.2
Marex Group 22-30/12/2170 FRN Financials 619 0.2
Hoist Finance AB 31/12/2060 FRN Financials 573 0.2
West Bromwich BS 11% 18-12/04/2038 Financials 524 0.2
Cabonline GR 22-19/04/2026 FRN Information Technology 482 0.2
R.E.A. Holdings Plc CW 15/07/2025 Consumer Staples 453 0.2
Top seventy investments 260,631 99.0
Other investments (36) 2,762 1.0
Total investments 263,393 100.0
Notes:
CV – Convertible Bond
FRN – Floating Rate Note
PERP – Perpetual
PREF – Preference Shares
REIT – Real Estate Investment Trust

9
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Ten Largest Holdings Strategic Report
Ten Largest Holdings
Valuation
30 June 2021
£’000
Purchases
£’000
Sales
£’000
Revaluation
gain/(loss)
£’000
Valuation
30 June 2022
£’000
Galaxy Finco Ltd 9.25%
31/07/2027 12,133 1,905 – (1,264) 12,774
A specialist provider of warranties
for consumer electric products.
Shawbrook Group 7.875%
FRN PERP 10,793 2,074 – (458) 12,409
A British multinational banking
and financial services company.
Virgin Money FRN PERP – 12,895 – (707) 12,188
A British banking company
concentrating on UK Retail and
SME regional banking services.
Aggregated Micro 8%
17/10/2036 8,838 2,281 – (219) 10,900
A British company using small
scale, established technologies to
convert wood and waste into
energy in the form of heat and
electricity.
Co-Operative Finance
25/04/2029 FRN 8,466 1,058 – (908) 8,616
A retail and commercial bank in the
United Kingdom.
REA Finance 8.75%
15-31/08/2025 6,318 1,881 – 393 8,592
Cultivator of oil palms in the
Indonesian province of East
Kalimantan and producer of crude
palm oil and palm products from
fruit harvested from oil palms.
Stonegate Pub 8.25%
20-31/07/2025 6,271 3,208 – (1,171) 8,308
Operator of various formats
ranging from high-street pubs
and traditional country inns to
local community pubs, student
pubs, and late-night bars and
venues in the United Kingdom.
Mangrove Luxco 7.775%
19-09/10/2025 – 8,142 – (505) 7,637
Holding company for a German
heat exchange manufacturer.
Hawk Debtco Ltd 10.5%
20-22/12/2024 3,494 3,539 – 474 7,507
A financing company for an
Aberdeen-based energy services
firm.
Diversified Energy Co Plc 3,205 3,861 – 424 7,490
Energy Company focusing on
US natural gas.
59,518 40,844 – (3,941) 96,421

10
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Strategic Report Principal Risks and Uncertainties and Risk Mitigation
Principal Risks and Uncertainties and Risk Mitigation
Risks are inherent in the investment process, but it is important that their nature and magnitude are understood so that risks can be identified
and either avoided or controlled. The Board has established a detailed framework to manage the key risks that the business is exposed to, with
associated policies and processes devised to mitigate or control those risks.
Principal risks and mitigations are discussed regularly at Board and Audit Committee meetings. At the meeting held in June 2022 the Board
discussed risk appetite and considered whether principal risks were increasing, decreasing or static during the course of the year including any
ongoing impact of COVID-19 and the conflict in Ukraine. The Board also considered any new or emerging risks.
The principal risks and mitigating factors faced by the Company are set out below.
Risk Description Controls
Dividend and
earnings risk

The earnings that underpin the amount of dividends
declared and future dividend growth are generated by
the Company’s underlying portfolio.
One or more of the following factors could adversely affect
the Company’s earnings and, thereby, its ability to declare
a dividend:
• The persistence of lower interest rates.
• A contraction of available investment opportunities
suitable for the Company, given its investment objective
and its policy.
• The persistence of adverse market conditions or
government intervention during a macro-economic
crisis resulting in cuts to dividend income.
• Adverse changes to the tax treatments applicable to the
Company’s stream of investment and dividend income.
Although the COVID-19 crisis has abated, at least for now,
there is still heightened economic uncertainty that could
impact the value of our Company’s earnings.
The Board has engaged with CQS (UK) LLP, the Investment
Manager, to manage the Company’s portfolio and therefore
depends upon the Investment Manager to construct an
appropriate portfolio that will produce income allowing the
Company to meet its dividend target.
The Board monitors the implementation of the investment
strategy, reviewing the performance of the Investment
Manager on an ongoing basis and receiving a formal
presentation from the Investment Manager on a quarterly
basis.
The Board receives and reviews detailed income forecasts
prepared by the Investment Manager and Administrator
at each Board meeting and when the quarterly dividends
are declared.
The Company holds revenue reserves, as at 30 June 2022,
of £15,595,000, which could be used for the maintenance of
the Company’s dividend target in adverse market conditions.
Market risk
leading to a loss
of share value

The Company’s assets consist principally of listed fixed
interest securities and equities. Its greatest risks are
consequently market related, with exposure to movements
in the prices of the Company’s investments and the loss
that the Company might suffer through holding
investments in the face of negative market movements.
A downturn in capital markets could lead to a loss in value
of the Company’s shares, eroding the premium and
causing the shares to trade at a discount. This risk is
heightened by the impact of Brexit and ongoing COVID-19,
supply chain issues, rising costs particularly energy costs,
the conflict in Ukraine and Russian sanctions.
The Board relies upon the research capabilities of the
Investment Manager and the people it employs that can
use their expertise to build a portfolio, utilising
diversification, to mitigate market risk to the extent
possible.
The Board monitors the implementation of the investment
strategy and reviews the performance of the Investment
Manager on an ongoing basis and receives a formal
presentation from the Investment Manager on a quarterly
basis. At this time, the Board reviews the performance of
the Company’s investments, including both realised and
unrealised gains and losses.
The Company has generally traded at a premium to NAV.
Any reduction in the premium or move to a discount is
discussed with the Investment Manager and Brokers, with
a view to taking action if considered appropriate. The
Investment Manager and Broker hold regular shareholder
meetings through which investor sentiment can be
gauged.
Key person risk

Performance of the Company may be negatively affected
by a change in the fund management team within the
Investment Manager.
Whilst the lead fund manager is responsible for day to day
portfolio management, an Investment Committee at the
Investment Manager also decides key stock selection.
The Board monitors and reviews the performance of the
Investment Manager on an ongoing basis and receives a
formal presentation from the Investment Manager on a
quarterly basis.
The Management Engagement Committee of the Company
formally reviews the performance of the Investment
Manager annually.

11
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Principal Risks and Uncertainties and Risk Mitigation Strategic Report
Risk Description Controls
Gearing risk

A fall in the value of the underlying investments could
adversely affect the Company’s level of gearing and
exacerbate the decline in value. It could also result in
a breach of loan covenants.
Gearing levels and compliance with loan covenants are
monitored by the Administrator and the Investment
Manager on a monthly basis.
The Board reviews compliance with the gearing levels and
loan covenant compliance at regular Board meetings.
The Board sets the gearing limits. Gearing will not exceed
25% of Shareholders’ funds at the time of borrowing.
Geopolitical risk

The Russian invasion of Ukraine has negatively impacted
supply chains and increased prices, critically in energy
and food, and inflation is increasing across Europe.
Ongoing tension caused by the conflict has heightened
market uncertainty and increased investment risk.
The Investment Manager has reviewed the portfolio to
understand the susceptibility of investments to market
disruption and the results of this review has been
discussed with the Board. The robustness of corporate
business models during this period of heightened
uncertainty is considered both in relation to the current
portfolio and as part of investment decision-making.
Operational risk

The Company relies upon the services provided by
third parties and is reliant on the control systems of
the Investment Manager and the Company’s other service
providers.
Failures at these third parties could adversely impact the
security and/or maintenance of, inter alia, the Company’s
assets, dealing and settlement procedures, and accounting
records depend on the effective operation of these systems.
The operating effectiveness of third party service providers
is regularly tested and monitored and reported on at each
Board meeting. The Audit and Risk Committee receives an
ISAE 3402 report (report on the description of controls
placed in operation, their design and operating
effectiveness) on Fund Administration.
The Investment Manager delivers a risk based internal
audit plan which covers different areas of its operations
that are subject to internal audit, including front, middle
and infrastructure audits. Any areas of concern relevant
to the Company are discussed with the Audit and Risk
Committee when it meets.
Regulatory risk

The breach of existing regulatory rules, or failing to adopt
changes in regulatory rules in a timely manner, which
could lead to a suspension of the Company’s stock
exchange listing or financial penalties.
The Company Secretary monitors the Company’s
compliance with the Listing Rules of the United Kingdom
(UK) Listing Authority and the Company’s Compliance
Officer with the regulatory rules applicable to Jersey
funds. Compliance with the Listing Rules is reviewed and
the Board receives a quarterly report from the Company’s
Compliance Officer.
The Administrator is regulated by the Jersey Financial
Services Commission.
 Increase in risk for the year ended 30 June 2022 in comparison to previous year.
Risk remains static from previous reporting period.
 Decrease in risk for the year ended 30 June 2022 in comparison to previous year.
Emerging risks
During Board discussions on principal risks and uncertainties, the Board considered any risks that were not an immediate threat but could arise
in the longer term and have significant impact on the ability of the Company to continue to meet its objectives. Areas discussed include longer term
impacts of climate change on the Company’s portfolio and returns, Geopolitical risk due to the conflict in Ukraine and any prolonged economic
impact of COVID-19 on different sectors of the economy. The Board regularly discusses these with the Investment Manager, and receives feedback
based on the Investment Manager’s research, and discussions with Shareholders and Brokers. The Investment Manager’s ESG policy was
reviewed and critiqued during the year, and the Board will continue to assess these emerging risks on a regular basis and continue to monitor and
assess the requirements of impending mandatory regulations for TCFD and EU SFDR.

12
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Strategic Report Stakeholders – Section 172 Statement and Principal Decisions
Stakeholders – Section 172 Statement and Principal Decisions
Through adopting the AIC Code, the Board acknowledges its duty to comply with section 172 of the UK Companies Act 2006 to act in a way that
promotes the success of the Company for the benefit of its members as a whole, having regard to (amongst other things):
a) consequences of any decision in the long-term;
b) the interests of the Company’s employees;
c) need to foster business relationships with suppliers, customers and others;
d) impact on community and environment;
e) maintaining reputation; and
f) act fairly as between members of the Company.
Information on how the Board has engaged with its stakeholders and promoted the success of the Company, through the decisions it has taken
during the year, whilst having regard to the above, is outlined below. The Company has no employees.
Stakeholder How the Board engages
Shareholders Shareholders provide the capital to allow the Company to be in existence and to pursue its purpose and strategy.
Accordingly, Shareholder support is essential to the continued survival and success of the Company.
The Board recognises that it is important to maintain appropriate contact with major Shareholders to understand
their issues and concerns.
The Board engages with its Shareholders by:
1) Publishing daily NAV announcements
2) Publishing monthly fact sheets
3) Publishing half yearly and annual reports and accounts
4) Making themselves available to meet major Shareholders as requested
5) Obtaining Shareholder feedback received via the Investment Manager and Corporate Broker
6) Making themselves available to questions from Shareholders at the Annual General Meeting
Service providers As a Company with no employees the Board is reliant on third party service providers to help the Company operate
in a compliant and efficient manner.
The Board engages with its service providers by:
1) Receiving detailed written and verbal reports at board meetings
2) Regular communication with representatives via telephone and email to discuss ad hoc matters
3) Undertaking an annual review via the Management Engagement Committee
The wider
community
and the
environment
As a responsible corporate citizen the Company recognises that its operations have an environmental footprint and
impact on wider society.
The Board fully supports the growing importance placed on ESG factors when asking the Company’s Investment
Manager to deliver against the Company’s objectives. The Board has requested that the Investment Manager take
into account the broader social, ethical and environmental issues of companies within the Company’s portfolio,
acknowledging that companies failing to manage these issues adequately run a long term risk to the sustainability of
their businesses. The Investment Manager has stated that they view ESG factors as a key driver of financing costs,
valuations and performance, while also being capable of acting as a lever to shape and influence the world for
generations to come. The integration and assessment of ESG factors is a crucial part of this commitment, and a key
factor in the Investment Manager’s decision-making. Through embedding ESG into its investment process the
Investment Manager seeks to enhance its ability to identify value, investment opportunities and, critically, to
generate the best possible returns for its stakeholders. The Investment Manager is a signatory to the United Nations
PRI, fully supporting all Principles for Responsible Investment.
Principal decision
Review of dividend policy:
The Board recognises the importance Shareholders place on the Company’s dividend policy and is cognisant of the need to ensure the viability of
the dividend.
It was agreed it was in the best interests of the Company and Shareholders to marginally increase the dividend for the year under review.

13
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Strategic Review Strategic Report
Strategic Review
Introduction
This review is part of a Strategic Report being presented by the Company
and is designed to provide information primarily about the Company’s
business and results for the year ended 30 June 2022. It should be read
in conjunction with the Statement from the Chair on pages 3 to 4 and
the Investment Manager’s Review on page 5, which give a detailed
review of the investment activities for the year and look to the future.
Principal Activity and Status
The Company is a closed-ended investment company and was
incorporated with limited liability in Jersey under the Companies
(Jersey) Law 1991 on 17 January 2007, with registered number 95691.
In addition, the Company constitutes and is regulated as a collective
investment fund under the Collective Investment Funds (Jersey) Law
1988 (“the Law”).
The Company’s ordinary shares are listed on the Official List of the UK
Listing Authority and admitted to trading on the Main Market of the
London Stock Exchange.
Purpose and Strategy
The Company’s purpose is stated on the inside front cover of this report.
Investment Policy
The Company invests predominantly in fixed income securities,
including, but not limited to, preference shares, loan stocks, corporate
bonds (convertible and/or redeemable) and government stocks. The
Company also invests in equities and other income yielding securities.
Exposure to higher yielding securities may also be obtained by investing
in other closed-ended investment companies and open-ended collective
investment schemes.
There are no defined limits on securities and accordingly the Company
may invest up to 100% of total assets in any particular type of security.
There are no defined limits on countries, size or sectors, therefore the
Company may invest in companies regardless of country, size or sector
and, accordingly, the Company’s portfolio is constructed without
reference to the composition of any stock market index or benchmark.
The Company may, but is not obliged to, invest in derivatives, financial
instruments, money market instruments and currencies for the
purpose of efficient portfolio management. The Company may acquire
securities that are unlisted or unquoted at the time of investment but
which are about to be convertible, at the option of the Company, into
securities which are listed or traded on a stock exchange. The Company
may continue to hold securities that cease to be listed or traded if the
Investment Manager considers this appropriate. The Board has
established a maximum investment limit in this regard of 10%
(calculated at the time of any relevant investment) of the Company’s
total assets. In addition, the Company may invest up to 10% (calculated
at the time of any relevant investment) of its total assets in other
securities that are neither listed nor traded at the time of investment.
The Company will not invest more than 10% (calculated at the time of
any relevant investment) of its total assets in other collective investment
undertakings (open-ended or closed-ended).
The Company may not invest more than 7.5% of its total investments in
the same investee company and that this be limited to no more than 3
investee companies with a maximum investment limit of 5% thereafter.
In addition, there is a maximum investment limit whereby, at the time
of investment, the Company may not invest more than 5% of its total
investments in any one security.
The Company uses gearing and the Board has set a current limit that
gearing will not exceed 25% of Shareholders’ funds at the time of
borrowing. This limit is reviewed from time to time by the Board.
The Investment Manager expects that the Company’s assets will
normally be fully invested. However, during periods in which changes
in economic circumstances, market conditions or other factors so
warrant, the Company may reduce its exposure to securities and
increase its positions in cash, money market instruments and
derivative instruments in order to seek protection from stock market
falls or volatility.
Investment Approach
Investments are typically made in securities which the Investment
Manager has identified as undervalued by the market and which it
believes will generate above average income returns relative to their
risk, thereby also generating the scope for capital appreciation. In
particular, the Investment Manager seeks to generate capital growth
by exploiting the opportunities presented by the fluctuating yield base
of the market and from redemptions, conversions, reconstructions
and take-overs.
Performance Measurement and Key Performance
Indicators (KPIs)
The Board uses a number of performance measures to monitor and
assess the Company’s success in meeting its objectives and to measure
its progress and performance. The key performance indicators are
as follows:
• Dividend Yield and Dividend Cover
It is intended that the Company will pay four quarterly dividends
each year and accordingly the Board reviews the Company’s
dividend yield and dividend cover on a quarterly basis. For the
year ended 30 June 2022, the Company’s dividend yield was
8.75% (30June 2021: 8.16%) based upon a share price of 51.20
pence (bid price) as at 30June 2022 (30June 2021: 54.80 pence)
and its dividend cover was 0.93x (30June 2021: 0.94x).
• Revenue Earnings and Dividends per ordinary share
The Company has opted to follow the AIC’s Statement of
Recommended Practice: Financial Statements of Investment
Trusts and Venture Capital Trusts (the “AIC SORP”) and, in
accordance with the provisions of the AIC SORP, distinguishes
its profits derived from revenue and capital items. The Company
declares and pays its dividend out of only the revenue profits
of the Company. The revenue earnings, whether generated this
year or in previous years and held in revenue reserves, represent
the total available funds that the Directors are able to make a
dividend payment from. The Board reviews revenue forecasts on
a quarterly basis in order to determine the quarterly dividend.
In respect of the current financial year, the Company declared
dividends of 4.48 pence per ordinary share out of revenue
earnings per ordinary share of 4.16 pence per ordinary share.

14
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Strategic Report Strategic Review
• Ongoing Charges
The ongoing charges ratio represents the Company’s management
fee and all other operating expenses incurred by the Company
expressed as a percentage of the average Shareholders’ funds
over the year. The Board regularly reviews the ongoing charges
and monitors all Company expenses. The ongoing charges ratio
for the year ended 30June 2022 was 1.19% (2021: 1.25%).
The Board measures the Company’s performance by reviewing the
KPIs against their expectations of performance from their knowledge
of the industry sector.
These KPIs fall within the definition of ‘Alternative Performance
Measures’ (APMs) under guidance issued by the European Securities
and Markets Authority. Additional information explaining how these
are calculated is set out in the Alternative Performance Measures
section on pages 56 to 58.
Going Concern
The Company does not have a fixed winding-up date and, therefore,
unless Shareholders vote to wind-up the Company, Shareholders will
only be able to realise their investment through the secondary market.
At each Annual General Meeting of the Company, Shareholders are
given the opportunity to vote on an ordinary resolution to continue the
Company as an investment company. If any such resolution is not
passed, the Board will put forward proposals at an extraordinary
general meeting to liquidate or otherwise reconstruct or reorganise
the Company. Given the performance of the Company, input from the
Company’s major Shareholders and its broker, the Board considers it
likely that Shareholders will vote in favour of continuation at the
forthcoming Annual General Meeting.
The Company’s existing loan facility as detailed on page 46 is due to
expire on 17 December 2023 after which it is anticipated the Company
will take out a new facility on comparable terms. After making
enquiries of the Investment Manager, and having considered the
Company’s investment objective, nature of the investment portfolio,
loan facility, expenditure projections and impact that the Russia-
Ukraine conflict has on the Company, the Directors consider that the
Company has adequate resources to continue in operational existence
for the foreseeable future. For this reason the Directors continue to
adopt the going concern basis in preparing the Financial Statements,
notwithstanding that the Company is subject to an annual continuation
vote as described above.
Viability Statement
In accordance with the provisions of the AIC Code, the Directors have
assessed the viability of the Company over a period longer than the 12
months required by the ‘Going Concern’ provision. The Board
conducted this viability review for a period of three years. The Board
continues to consider that this period reflects the long term objectives
of the Company, being a Company with no fixed life, whilst taking into
account the impact of uncertainties in the markets.
Whilst the Directors do not expect there to be any significant changes
to the current principal and emerging risks facing the Company,
certain risks have increased due to the Russia-Ukraine conflict and
global rise in inflation. Despite these increased risks, the Directors
believe that the Company has sufficient controls in place to mitigate
those risks. Furthermore, the Directors do not envisage any change in
strategy which would prevent the Company from operating over the
three year period. This is based on the assumption that there are no
significant changes in market conditions or the tax and regulatory
environment that could not reasonably have been foreseen. The Board
also considers the annual continuation vote should not be a factor to
affect the three year period given the strong demand seen for the
Company’s shares.
In making this statement the Board: (i) considered the continuation vote
to be proposed at the Annual General Meeting which the Board
considers will be voted in favour of by Shareholders; and (ii) carried out
a robust assessment of the principal and emerging risks facing the
Company. These risks and their mitigations are set out on
pages 10 to 11.
The principal risks identified as most relevant to the assessment of the
viability of the Company were those relating to potential under-
performance of the portfolio and its effect on the ability to pay
dividends. When assessing these risks the Directors have considered
the risks and uncertainties facing the Company in severe but
reasonable scenarios, taking into account the controls in place and
mitigating actions that could be taken.
When considering the risk of under-performance, a series of stress
tests was carried out including in particular the effects of any
substantial future falls in investment value on the ability to re-pay and
re-negotiate borrowings, potential breaches of loan covenants and the
maintenance of dividend payments.
The Board considered the Company’s portfolio and concluded that the
diverse nature of investments held contributes to the stability and
liquidity along with flexibility to be able to react positively to market and
political forces beyond the Board’s control.
The Board also considered the impact of potential regulatory changes
and the control environment of significant third party providers,
including the Investment Manager.
The Scotiabank loan facility is due to expire on 17 December 2023. It is
anticipated a new facility on comparable terms will be negotiated prior to
this date.
Based on the Company’s processes for monitoring revenue and costs,
with the use of frequent revenue forecasts, and the Investment
Manager’s compliance with the investment objective and policies, the
Directors have concluded that there is a reasonable expectation that
the Company will be able to continue in operation and meet its
liabilities as they fall due for a period of three years from the date of
approval of this Report.
Social, Community, Human Rights, Employee
Responsibilities and Environmental Policy
The Directors recognise that their first duty is to act in the best financial
interests of the Company’s Shareholders and to achieve good financial
returns against acceptable levels of risk, in accordance with the
objectives of the Company. In asking the Company’s Investment Manager
to deliver against these objectives, they have also requested that the
Investment Manager take into account the broader social, ethical and
environmental issues of companies within the Company’s portfolio,
acknowledging that companies failing to manage these issues
adequately run a long term risk to the sustainability of their businesses.

15
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Strategic Review Strategic Report
Greenhouse Gas Emissions
The Board recognises its impact on the environment, including
greenhouse gas emissions, through the underlying portfolio companies
which it invests in. The Board requested that ESG factors be
incorporated into the Company’s investment strategy and further
details on ESG can be found on pages 25 to 27.
Modern slavery
The Company would not fall into the scope of the UK Modern Slavery
Act 2015 (as the Company does not have any turnover derived from
goods and services) if it was incorporated in the UK. Furthermore, as a
closed-ended investment company, the Company has a non-complex
structure, no employees and its supply chain is considered to be low
risk given that suppliers are typically professional advisers based in
either the Channel Islands or the UK. Based on these factors, the
Board determined that it is not necessary for the Company to make
a slavery and human trafficking statement.
By Order of the Board
Caroline Hitch
Chair
15 September 2022

16
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Directors’ Report and Governance Reports Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements
Statement of Directors’ Responsibilities in respect of the
Annual Report and Financial Statements
The Directors are responsible for preparing the Annual Report and
Financial Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements
for each financial year. Under that law they have elected to prepare the
Financial Statements in accordance with International Financial
Reporting Standards as adopted by the European Union (EU) and
applicable law.
Under company law the Directors must not approve the Financial
Statements unless they are satisfied that they give a true and fair view
of the state of affairs of the Company and of its profit or loss for that
period. In preparing these Financial Statements, the Directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and estimates that are reasonable, relevant
and reliable;
• state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the Financial Statements;
• assess the Company’s ability to continue as a going concern,
disclosing, as applicable, matters relating to going concern; and
• use the going concern basis of accounting unless they either
intend to liquidate the Company or to cease operations, or have no
realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records
that are sufficient to show and explain the Company’s transactions and
disclose with reasonable accuracy at any time the financial position of
the Company and enable them to ensure that the Financial Statements
comply with Companies (Jersey) Law, 1991. They are responsible for
such internal control as they determine is necessary to enable the
preparation of financial statements that are free from material
misstatement, whether due to fraud or error, and have general
responsibility for taking such steps as are reasonably open to them to
safeguard the assets of the Company and to prevent and detect fraud
and other irregularities.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
The Financial Statements are published on the www.ncim.co.uk
website, which is a website maintained by the Company’s Investment
Manager. Legislation in Jersey governing the preparation and
dissemination of Financial Statements may differ from legislation in
other jurisdictions.
Responsibility statement of the Directors in respect of the annual
financial report
We confirm that to the best of our knowledge:
• the Financial Statements, prepared in accordance with the
International Financial Reporting Standards (IFRS) as adopted by
the EU, give a true and fair and balanced view of the assets,
liabilities, financial position and profit or loss of the Company; and
• the Strategic Report and Directors’ report include a fair review of
the development and performance of the business and the
position of the Company, together with a description of the
principal risks and uncertainties that the Company faces.
We consider the Annual Report and Financial Statements, taken
as a whole, is fair, balanced and understandable and provides the
information necessary for Shareholders to assess the Company’s
position and performance, business model and strategy.
On behalf of the Board
Caroline
Hitch
Chair
15 September 2022

17
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Board of Directors and Investment Manager Directors’ Report and Governance Reports
Board of Directors and Investment Manager
Caroline Hitch
Independent Non-Executive Chair
Appointed: March 2018
Skills: Caroline has extensive fund management skills
including specialist fixed income portfolios. She has
a deep understanding of investment risk and risk
management both as it applies to individual assets
and to overall portfolio construction. She developed
her skills of investment trust board governance
through many years of managing regulated funds,
reporting to their boards and then becoming a board
member (and now chair) herself.
Experience: Caroline joined the board after working
in the financial services industry since the early
1980s, mostly with the HSBC group. Her experience
includes Head of Wealth Portfolio Management at
HSBC Global Asset Management (UK) Ltd. with
investment responsibility for their flagship multi asset
retail funds. Prior roles included specialisation in
institutional fixed income portfolio management.
She has worked in London, Jersey, Monaco and Hong
Kong.
Committee membership: Audit and Risk Committee;
Management Engagement Committee; Nomination
Committee; Remuneration Committee
Remuneration: £42,500 per annum
Public company directorships:
Schroder Asian Total Return Investment Company plc
abrdn Equity Income Trust plc
Shared Directorships with any other Fund Directors:
None
Duncan Baxter
Senior Independent Non-Executive Director and Chair of the Management Engagement
Committee
Appointed: July 2015
Skills: Duncan has a broad knowledge of the finance
sector gained from holding senior leadership positions
across a number of International Banks and Trust
companies. Having also worked on investment
company boards, some of which in the position of
Chair, Duncan has had exposure to equity raises,
discount management.
Experience: Duncan is a retired senior banker with
over 25 years’ experience of international banking,
latterly as Managing Director of Swiss Bank
Corporation/UBS in Jersey. Since leaving Swiss
Bank/UBS in the late 1990s, Duncan has undertaken
a number of consultancy projects for international
banks, trust and investment management companies,
plus acted on a number of investment company
boards. He has experience of stewardship and
investment in several investment companies over
twenty years and in addition as a non-executive
director of a number of operating public companies.
Duncan is a Jersey resident.
Committee membership: Audit & Risk Committee;
Management Engagement Committee; Nomination
Committee; Remuneration Committee
Remuneration: £30,000 per annum
Public company directorships: None
Shared Directorships with any other Fund Directors:
None
Wendy Dorman
Independent Non-Executive Director and Chair of the Audit and Risk Committee
Appointed: March 2016
Skills: Wendy is a Chartered Accountant with skills
in tax, audit and commercial mainly focused on the
investment fund sector. Her extensive experience
chairing audit committees of public listed entities
gives her the requisite leadership skills in addition to
those of accounting and governance.
Experience: Wendy began her career in audit and
assurance before specialising in taxation. She has 25
years’ experience in tax within the financial services
industry. Wendy’s career encompassed time in
practice and in industry, based initially in London and
later in Jersey. She retired as partner in charge of the
PwC Channel Islands tax practice in June 2015.
Wendy served as President of the Jersey Society of
Chartered and Certified Accountants from 2008 to
2010 and as Chair of the Jersey branch of the
Institute of Directors from 2014 to 2016. Wendy is a
Jersey resident.
Committee membership: Audit and Risk Committee;
Management Engagement Committee; Nomination
Committee; Remuneration Committee
Remuneration: £36,500 per annum
Public company directorships:
3i Infrastructure plc
Jersey Electricity Plc
Shared Directorships with any other Fund Directors:
None

18
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Directors’ Report and Governance Reports Board of Directors and Investment Manager
John Newlands
Independent Non-Executive Director and Chair of the Remuneration Committee
Appointed: October 2017
Skills: John’s 20-plus years career as an investment
company analyst, with a particular focus upon the UK
wealth management sector, gives the Board an
important insight into the investment requirements
and processes of the types of investor, whether
private or institutional, most likely to consider the
Company for inclusion in their portfolios. He is also
skilled in the assessment of potential peer group
funds, both in terms of relative performance and
other quantitative data and in the increasing focus
upon governance and stewardship matters as pre-
requisites for investment.
Experience: John joined the Board shortly after
working in the managed funds sector since the mid-
1990s, the last ten years being spent as Head of
Investment Companies Research at Brewin Dolphin
Limited. He was a member of the Association of
Investment Companies Statistics’ Committee from
2000 to 2017 and is a member of the Citywire
Investment Trust Awards Panel. He has an MBA from
Edinburgh University Business School and is
a Chartered Electrical Engineer dating to his prior
career as a Weapon Engineer Officer in the UK Royal
Navy. John is a member of the Investment Committee
of Durham Cathedral. He has written four books
about financial history, the most recent charting the
history of Dunedin Income Growth Investment Trust.
Committee membership: Audit and Risk Committee;
Management Engagement Committee; Nomination
Committee; Remuneration Committee
Remuneration: £30,000 per annum
Public company directorships:
TOC Property Backed Lending Trust plc,
Gabelli Merger Plus Trust plc
Shared Directorships with any other Fund Directors:
None
Ian Cadby
Independent Non-Executive Director and Chair of the Nomination Committee
Appointed: January 2017
Skills: Ian is a Chartered Fellow of the Chartered
Institute for Securities & Investment. His extensive
governance experience on public and private company
boards as well as a long career as a regulated person
(CF3, CF2 and CF1 controlled functions) in the asset
management industry gives him a broad and relevant
skill set for the Board.
Experience: Ian has over 30 years’ experience within
the financial services industry in London, Hong Kong
and Jersey with a strong career emphasis on equity
and equity derivative trading, risk management,
corporate governance and board strategy. Ian is a
Jersey resident.
Committee membership: Audit and Risk Committee;
Management Engagement Committee; Nomination
Committee; Remuneration Committee
Remuneration: £30,000 per annum
Public company directorships:
abrdn Asian Income Fund Limited
Shared Directorships with any other Fund Directors:
None

19
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Board of Directors and Investment Manager Directors’ Report and Governance Reports
Investment Manager
The Company appointed New City Investment Managers (“NCIM”) as
its Investment Manager with effect from launch. On 1 October 2007,
NCIM joined the CQS Group, a global diversified asset manager running
multiple strategies with, as at 30 June 2022, US$17.7 billion assets
under management (including mandates with discretionary
management, sub-investment discretionary management, investment
advice, collateral management and intermediation). In 2014, NCIM’s
rights and obligations under the Investment Management Agreement
between the Company and NCIM were then transferred to CQS Cayman
Limited Partnership (“CQS”). Consequently, CQS became the Company’s
Investment Manager but, with the agreement of the Board, delegated
that function to CQS (UK) LLP Trading Limited as NCIM.
With effect from 18 September 2019 the Company entered into a new
Investment Management Agreement to appoint CQS (UK) LLP as its
Investment Manager. The previous Investment Management Agreement
with CQS was terminated.
Ian Francis has day to day responsibility for managing the Company’s
portfolio and is supported by the CQS team.
He joined the NCIM team in 2007. He has over 40 years’ investment
experience, primarily in the fixed interest and convertible spheres, and
his career has included Collins Stewart, West LB Panmure, James
Capel and Hoare Govett.
Alternative Investment Fund Managers
Directive (“AIFMD”)
The Company has appointed CQS (UK) LLP, a subsidiary of CQS, as the
Company’s alternative investment fund manager (“AIFM”). The AIFM
has received its approval from the FCA to act as AIFM of the Company,
your Company is therefore fully compliant. An additional requirement
of the AIFMD is for the Company to appoint a depositary, which will
oversee the custody and cash arrangements and other AIFMD required
depositary responsibilities. The Board has appointed BNP Paribas
Securities Services S.C.A. Jersey Branch to act as the Company’s
depositary.
As part of the process the Investment Management Agreement has
been updated and builds in the regulatory requirements arising as a
result of the appointment of the AIFM.
Further AIFMD disclosures are shown on page 62.

20
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Directors’ Report and Governance Reports Directors’ Report
Directors’ Report
The Directors present their report and the audited Financial Statements
for the year ended 30 June 2022.
Results and Dividends
Details of the Company’s results and dividends are shown on page 2 of
this report.
Dividend Policy
Subject to market conditions and the Company’s performance, financial
position and financial outlook, it is the Directors’ intention to pay an
attractive level of dividend income to Shareholders on a quarterly
basis. The Company intends to continue to pay all dividends as interim
dividends. A resolution to approve this dividend policy will be proposed
at the Annual General Meeting.
Bank Facilities
The Company has a short term unsecured loan facility with Scotiabank
Europe Plc (“Scotiabank”). As at the year end the unsecured loan
facility had a limit of £45 million of which £33 million was drawn down.
The Company’s existing loan facility is due to expire on 17 December
2023 after which it is anticipated the Company will take out a new
facility on comparable terms.
Share Capital
As at 1 July 2021, there were 445,051,858 ordinary shares in issue. The
Company issued a further 31,600,000 ordinary shares in the year to
30 June 2022. Full details of these transactions are shown in note 13
on page 47 of this report.
Following these allotments there are now 476,651,858 ordinary shares
in issue as at 30 June 2022. A further 4,350,000 shares have been
issued since the year end.
Acquisition of own shares
At the 2021 AGM, held on 2 December 2021, the Directors were granted
authority to repurchase 65,401,649 ordinary shares (being equal to
14.99% of the aggregate number of ordinary shares in issue at the date
of the AGM) for cancellation, or to be held as treasury shares. This
authority, which has not been used, will expire at the upcoming AGM.
The Directors intend to seek annual renewal of this authority from
Shareholders.
Directors’ shareholdings
The Directors who held office at the year end and their interests in the
ordinary shares of the Company were as follows:
At 30 June 2022 At 30 June 2021
D A H Baxter 195,127 195,127
I Cadby 25,000 25,000
W Dorman 112,000 112,000
C Hitch
*
170,000 170,000
J Newlands 10,000 10,000
* inclusive of 40,000 shares held by Ms Hitch’s mother
On 2 December 2021, Wendy Dorman transferred 48,000 shares from a
joint broker account held with her husband, into a private self-managed
pension company, of which she is the sole beneficial owner.
There were no other changes in the ordinary share holdings of the
Directors between 1 July 2022 and 15 September 2022.
Substantial Interests in Share Capital
As at 30 June 2022, the Company had been notified in accordance with
Chapter 5 of the UK Listing Authority’s Disclosure Guidance and
Transparency Rules (which covers the acquisition and disposal of major
shareholdings and voting rights), of the following Shareholders that had
an interest of greater than 5% in the Company’s issued share capital.
Shareholder
Number of voting
rights notified to
the Company on
11 September
2019
Percentage of
total voting
rights as
per notification
(%)
Brewin Dolphin Limited 42,104,109 9.92%
Between 1 July 2022 and 15 September 2022, the Company received
no further notifications. As at 30 June 2022, the percentage of total
voting rights was 8.83%, being the number of voting rights notified to
the Company on 11 September 2019 divided by 476,651,858, the total
number of ordinary shares of the Company as at 30 June 2022.
Investment Management
As part of its strategy for achieving its objectives, the Board has
delegated the management of the investment portfolio to CQS (UK) LLP
with Ian Francis as the lead fund manager. Further details are provided
on note 23 to the Financial Statements.
At each Board meeting, the Board receives a presentation from the
Investment Manager which includes a review of investment performance,
portfolio activity and market outlook. The stock selection emphasis
adopted by the Investment Manager is on each holding’s unique
characteristics rather than any benchmark weightings.
Appointment of the Investment Manager
The Board considers the arrangements for the provision of investment
management and other services to the Company on an ongoing basis
and a formal review is conducted annually by the Management
Engagement Committee. As part of the annual review the Management
Engagement Committee considers the continuity of the team, the
investment process and the results achieved to date.
The Board believes that the continuing appointment of CQS as AIFM
and Investment Manager as set out on page 43 is in the interests of
Shareholders as a whole.
Administration Services
BNP Paribas Securities Services S.C.A., Jersey Branch (“BNPP”) were
appointed as the Company Secretary and Administrator on
28 November 2019, in place of R&H Fund Services (Jersey) Limited
and Maitland Administration Services (Scotland) Limited; and
appointed as the Company’s custodian, bankers and depositary in
place of HSBC Bank PLC (“HSBC”).

21
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Directors’ Report Directors’ Report and Governance Reports
Independent Auditor
KPMG LLP was appointed as auditor to the Company in 2007. Following
a tender process in 2016, KPMG LLP was subsequently reappointed
and remained in office until 17 June 2019. Following the resignation of
KPMG LLP on 17 June 2019, KPMG Channel Islands Limited was
appointed as the Company’s auditor effective 17 June 2019.
A resolution to re-appoint KPMG Channel Islands Limited as the
Company’s auditor will be proposed at the Company’s 2022 Annual
General Meeting.
Delegation of Responsibilities and Matters Reserved
for the Board
The Board has delegated the exercise of voting rights attaching to the
Company’s investments to the Investment Manager. All other matters
are reserved for the approval of the Board.
The Board has a schedule of matters reserved to it for decision and the
requirement for Board approval on these matters is communicated
directly to the Investment Manager. Such matters include strategy,
borrowings, treasury and dividend policy. Full and timely information is
provided to the Board to enable the Directors to function effectively and
to discharge their responsibilities. The Board also reviews the Financial
Statements, performance and revenue budgets.
Exercise of Voting Powers
The Investment Manager, in the absence of explicit instruction from the
Board, is empowered to exercise discretion in the use of the Company’s
voting rights in respect of investee companies. The underlying aim of
exercising such voting rights is to protect the return from an investment.
Disclosures required under LR 9.8.4R
The Financial Conduct Authority’s Listing Rule 9.8.4R requires that the
Company includes certain information relating to arrangements made
between a controlling shareholder and the Company, waivers of
Directors’ fees, and long-term incentive schemes in force. The Directors
confirm that there are no disclosures to be made in this regard.
Events after reporting date
The Board has evaluated material subsequent events for the Company
and their effect on the annual financial report for the period from
1 July 2022 through to 15 September 2022. A list of these events is
disclosed in note 24.
Disclosure of Information to the Auditor
The Directors confirm that, so far as each of them is aware, there is no
relevant audit information of which the Company’s auditor is unaware
and the Directors have taken all the steps that they might have taken
as Directors in order to make themselves aware of any relevant audit
information and to establish that the Company’s auditor is aware of
that information.
Statement Regarding Annual Report and
Financial Statements
Following a detailed review of the Annual Report and Financial
Statements by the Audit and Risk Committee, the Directors consider
that taken as a whole it is fair, balanced and understandable and
provides the information necessary for Shareholders to assess the
Company’s performance, business model and strategy. In reaching
this conclusion, the Directors have assumed that the reader of the
Annual Report and Financial Statements would have a reasonable level
of knowledge of the investment industry in general and investment
companies in particular.
By Order of the Board
Caroline Hitch
Chair
15 September 2022

22
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Directors’ Report and Governance Reports The Board and Committees
The Board and Committees
Values and Culture
The Board conducts itself with the core values of integrity, transparency,
acceptance of challenge and accountability. It achieves this through a
collaborative culture and a sense of shared endeavour. The Board is
focused on meeting objectives for investors and all other stakeholders
of the Company in a sustainable and responsible way.
The Board
The Board currently consists of a non-executive Chair and four non-
executive Directors. The Board considers all of the Directors as
independent of the Investment Manager and free from any business or
other relationship that could materially interfere with the exercise of
their independent judgement.
The dates on which Directors were appointed are contained within
their biographies shown on pages 17 to 18. In accordance with the AIC
Code all Directors submit themselves for re-election on an annual
basis.
New Directors receive an induction from the Company Secretary on
joining the Board, and all Directors receive other relevant training as
necessary. Directors’ and Officers’ liability insurance cover is maintained
by the Company on behalf of the Directors. There is no notice period and
no provision for compensation upon early termination of appointment.
The Company has no executive Directors or employees. A management
agreement between the Company and its Investment Manager sets
out the matters over which the Investment Manager has authority and
the limits beyond which Board approval must be sought. All other
matters, including strategy, investment and dividend policies, gearing
and corporate governance procedures, are reserved for the approval of
the Board.
Duncan Baxter is the Company’s Senior Independent Director. He is
available to Shareholders if they have concerns where contact through
the normal channels of the Chair or the Investment Manager is
inappropriate.
All committee terms of reference, the schedule of matters reserved for
the Board, the roles and responsibilities of the Chair and the roles and
responsibilities of the Senior Independent Director are available on the
Company’s website.
Nomination Committee
The Nomination Committee, which is chaired by Ian Cadby, operates
within clearly defined terms of reference, comprises the full Board and
is convened for the purpose of considering the appointment of
additional Directors as and when considered appropriate. In considering
appointments to the Board, the Nomination Committee takes into
account the ongoing requirements of the Company and the need to
have a balance of skills and experience within the Board.
Board Evaluation
During the year the Directors completed a web-based Board evaluation
questionnaire which covered the Board’s composition and skills,
strategy setting, workings, oversight of risk and performance, and its
stakeholder management. The Board scored highly in all areas although
noted that despite being 40% female, including the Chair, there is
potential to improve other areas of diversity. Both the Nomination
Committee and the Board recognise the importance of diversity and
will consider this in respect of any new appointments.
Diversity and inclusion
As noted above the Board believes in the benefits of having a diverse
range of skills and backgrounds, and the need to have a balance of
experience, independence, diversity (including gender), and knowledge
of the Company on its Board of Directors.
Tenure
The tenure policy which has been adopted by the Board provides that
(other than in exceptional circumstances) no Director will serve on the
Board for longer than nine years from the date of their first appointment.
Succession planning
A key duty of the Nomination Committee is to ensure plans are in place
for orderly succession to the Board. The Board has adopted a formal
succession plan scheduled to allow for an orderly refreshment of the
board, with the intention that no director serves longer than nine years.
Director Attendance
Directors have attended Board and Committee meetings during the year ended 30 June 2022 as follows:
Quarterly
Board
meetings
Ad Hoc
Board
meetings
1
Audit
and Risk
Committee
meetings
Management
Engagement
Committee
meetings
Nomination
Committee
meetings
Remuneration
Committee
meetings
Committee
– Loan
Renewal
C Hitch (Chair) 4/4 4/4 3/3 1/1 2/2 1/1 N/A
*
D A H Baxter 4/4 3/4 3/3 1/1 2/2 1/1 N/A
*
W Dorman 4/4 3/4 3/3 1/1 2/2 1/1 1/1
I Cadby 4/4 4/4 3/3 1/1 2/2 1/1 1/1
J E Newlands 4/4 4/4 3/3 1/1 2/2 1/1 1/1
* Committee consisting of any two directors.
1
Ad hoc board meetings are often called a short notice and only require the attendance of Jersey based directors, where possible the UK based
directors attend via telephone but do not count towards the quorum.

23
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
The Board and Committees Directors’ Report and Governance Reports
Management Engagement Committee
The Management Engagement Committee, which is chaired by Duncan
Baxter, operates within clearly defined terms of reference, comprises
the full Board, and reviews the appropriateness of the Investment
Manager’s continuing appointment together with the terms and
conditions thereof, and to review the terms and quality of service
received from other service providers.
The Board ensures the Company adheres to independent requirements
in all agreements and service contracts.
Remuneration Committee
The Remuneration Committee determines and agrees with the
Board the policy for the remuneration of all Directors. It is chaired by
John Newlands.
Audit and Risk Committee
The composition and role of the audit and risk committee is described
on page 28.
Relations with Shareholders
The Directors place a great deal of importance on communication with
Shareholders. The Annual Report and Financial Statements are widely
distributed to other parties who have an interest in the Company’s
performance. Shareholders and investors may obtain up to date
information on the Company through the Investment Manager’s
website. The Company responds to letters from Shareholders on a
wide range of issues.
A regular dialogue is maintained with the Company’s institutional
Shareholders. The Company Secretary is available to answer general
Shareholder queries at any time throughout the year.
By Order of the Board
Caroline Hitch
Chair
15 September 2022

24
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Directors’ Report and Governance Reports Statement of Compliance with the AIC Code
Statement of Compliance with the AIC Code
Introduction
The Company has a premium listing on the London Stock Exchange and is therefore required to report on how the principles of the UK Corporate
Governance Code (the “UK Code”) have been applied. Being an investment company, a number of the provisions of the UK Code are not applicable
as the Company has no executive directors or internal operations.
The Board has considered the principles and provisions of the AIC Code. The AIC Code addresses all the principles and provisions set out in the UK
Code, as well as setting out additional provisions on issues that are of specific relevance to the Company.
The Board considers that reporting against the principles and provisions of the AIC Code provides more relevant information to stakeholders. The
AIC Code is available on the AIC website www.theaic.co.uk.
The Company has complied with all the principles and provisions of the AIC Code during the year ended 30 June 2022.
Set out below is where stakeholders can find further information within the Annual Report about how the Company has complied with the various
Principles and Provisions of the AIC Code.
Section page
1. Board Leadership and Purpose
Purpose 13
Strategy 13
Values and culture 22
Shareholder Engagement 12
Stakeholder Engagement 12
2. Division of Responsibilities
Director Independence 22
Board meetings 22
Relationship with Investment Manager 23
Management Engagement Committee 23
3. Composition, Succession and Evaluation
Nomination Committee 22
Director re-election 22
Use of an external search agency
1
n/a
Board evaluation 22
4. Audit, Risk and Internal Control
Audit Committee 28
Emerging and principal risks 10-11
Risk management and internal control systems 29
Going concern statement 14
Viability statement 14
5. Remuneration
Directors’ Remuneration Report 30
1
The Company did not appoint any new Directors during the year.

25
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
ESG statement of the Company Directors’ Report and Governance Reports
ESG statement of the Company
CQS New City High Yield Fund Limited (“the Company”) is a Jersey domiciled and UK LSE listed investment company whose
objective to provide investors with a high gross dividend yield and the potential for capital growth by mainly investing in high
yielding fixed interest securities. The Company has appointed CQS (UK) LLP (“CQS”) as its investment manager. The Board of
Directors confirms that ESG factors are integral to the execution of the Company’s investment strategy. The Board’s intention is to
invest responsibly and to consider the Company’s broader impact on society and the environment. The Board believes the
integration of ESG factors in the investment process is consistent with delivering sustainable attractive returns for Shareholders
through deeper, more informed investment decisions. The Board has reviewed and agreed the ESG approach adopted by CQS and
a summary of this, shown in red, is set out below.
CQS Responsible Investment Policy incorporating our ESG Statement
CQS is committed to operating in a responsible manner embedding strong and clear governance, and conducting our business in a sustainable
way. In our role as an investment manager, we view ESG factors as key drivers influencing financing costs, risk assessment valuations and
performance, while also acting as a lever to shape and influence the world for generations to come.
The assessment, integration and engagement of ESG factors is a crucial part of the Responsible Investment commitment across the CQS
investment platform, both in public and privately held companies, and a key factor in our decision-making. By embedding Responsible Investment
into our investment process we enhance our ability to identify value, investment opportunity, risk and, critically, to generate the best possible
returns and outcomes for our clients.
Our ESG process specifically looks at ESG factors through integration in our sector research process, including modelling and internal ratings with
ESG methodologies applied to both public and private debt. Methodologies include analysing the relative importance and risk posed by any identified
ESG issue. Research notes are stored in accessible form and available for use across the Front Office. Discussion and debate is encouraged during
the ESG internal analysis, both within the CQS Research team and with Portfolio Managers.
This is followed by an evaluation. Portfolio Managers are required to consider (to an appropriate degree having regard to their investment strategy)
ESG risks as part of their investment decision making. This includes, but is not limited to:
• Environmental: Climate Change, Water Stress, Biodiversity and Land Use, Toxic Emissions and Waste and Environment Opportunities and
other relevant sustainability risks or opportunities
• Social: Labour management, Health and Safety, Privacy and Data Security, Stakeholder Opposition and Social Opportunities, Diversity and
relevant sustainability risks.
• Governance: Corporate Governance and Corporate Behaviour including Ethics, Corruption, Instability, Diversity and Remuneration
Please see below a diagram depicting our five-stage process:
Five-Stage ESG Investment Process
Environmental, Social and Governance (ESG) Policy applies to all strategies across the CQS platform
1 2 3 4 5
Incorporate Evaluate Decide Engage Monitor
Incorporation of third-
party ESG metrics and
data into CQS’ systems
Evaluation of ESG
factors in our sector
research process
includes modelling,
analysis, internal
ratings and deployment
into our front office
systems. We
demonstrate to
companies whom we
research that CQS is
serious about ESG
Portfolio Manages
consider research
analysis as part of
investment decision
making
Changing corporate
behaviour towards
identified ESG risks and
issues may involve proxy
voting, influence or
control positions, and
ultimately making a
decision to not trade,
change exposure or exit
a position altogether
Periodic research
re-assessments
A watching brief across
news wires for developing
ESG considerations
Weekly proprietary
fund-level ESG risk
reporting for our portfolio
management and
research teams

26
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Directors’ Report and Governance Reports ESG statement of the Company
Standards and Codes
CQS is a signatory and/or supporter to the following:
• United Nations: Principles for Responsible Investment (“UN PRI”)
• Task Force on Climate-Related Financial Disclosures (“TCFD”)
• CDP (“CDP”, formerly Carbon Disclosure Project)
• Standards Board for Alternative Investments (“SBAI”, formerly HFSB)
• Climate Action 100+
• UK Stewardship Code
Specific Statement from the CQS Investment Managers with regard to the Company
It is our responsibility to analyse and monitor investee companies’ financial and non-financial (ESG) performance effectively. ESG integration is as an
important consideration when analysing investment opportunities and we are committed to evolving our approach in support of our ESG principles.
We follow the CQS firm-wide five-stage ESG investment integration process but are also guided by the following principals which have been
agreed with the Board of the Company.
• to engage directly in dialogue with companies to understand their ESG approach, their ambition and disclosure, and to table questions or
concerns;
• to use internal and third party data and ratings providers;
• where possible, to vote at Shareholder meetings; and
• only as a last resort, exclude companies from our investment universe.
At the time of writing, 29% (2021: 30%) of the Company’s portfolio is covered by MSCI for their ESG rating service. MSCI have a minimum 65%
threshold before we are able to provide a meaningful MSCI ESG rating for the portfolio. We monitor this closely and engage to try and further
increase the percentage of the portfolio covered.
It is not unusual for portfolios in the credit universe to have a low level of ESG ratings and CQS (UK) LLP have been monitoring alternative
measurements. One metric we have been evaluating is “Weighted average carbon intensity” or “WACI” which is a measure of the portfolio’s
exposure to carbon-intensive companies, expressed in tonnes of CO2 per million USD of revenue.
It follows the MSCI methodology taking the carbon intensity of a company where available and where carbon intensity is not available for a given
company, a proxy estimate based on comparative data from MSCI is used. For proxy estimates, we apply a waterfall approach which requires a
minimum of 10 issuers within the proxy estimate group. If there are not 10 issuers in the proxy estimate group, it changes to a broader category
group to increase the number of comparable issuers and continues moving to a broader group until a minimum group size of 10 issuers is obtained
or ‘sector’ level is reached. The order is sub-industry first, then industry, then industry group, then finally sector. The WACI measure for the portfolio
is currently 319 (2021: 238) compared to the broader credit universe which is 274 (2021: 250). We will continue to monitor this and other metrics as
they become available.
Company Specific Example: In the next section, we highlight one of our recent engagements that we have had with a portfolio company to give you
a flavour of how active engagement can create positive outcomes.

27
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
ESG statement of the Company Directors’ Report and Governance Reports
Portfolio Example
A Global Copper Company
MSCI ESG Rating BBB
The investment manager believes that copper is the preferred metal of the green economy. The Fund has an investment in a company that owns
and operates a global portfolio of copper assets. Together with CQS’s ESG team the investment manager identified a number of issues that they
addressed with company management over a number of meetings. The details of the engagement are set out below and we believe that the
implementation of proposed changes will allow the company to improve its MSCI ESG rating and attract new shareholders.
Identified Issues Engagement Objectives E, S or G Progress
A Coal Fired Power Plant as the
main source of power at a new
major operation.
Better understand management’s
decision-making process during
planning of construction.
E
The company provided additional disclosure that
gave context to acquisition of the asset, decisions
made by prior ownership, and suitability of other
power sources at the time of construction.
The Company has now outlined plans to convert half
the power to renewables by 2025 and fully convert to
a mixture of natural gas and renewables by 2030.
The conversion is expected to be funded by cash flow.
All future brownfield projects will be 100% powered
by renewable energy.
While environmental measures
such as emissions, energy
usage, and water stress are
tracked annually, there are no
set targets to reduce them from
current or historical levels.
Requesting the company set TCFD-
aligned emissions targets, as well
as energy usage, and water stress
which are standardized to output to
allow for growing production
volumes.
E
In January 2022, the Company formally published
absolute emissions reduction targets of 30%
reduction by 2025 and 50% by 2030. Their plans for
all future brownfield projects to use renewable energy,
as well as initiatives within mining operations such
as trolley assist to reduce fuel usage, will help them
to achieve this.
They now send their head of ESG to investor
conferences, another sign that they are taking this
very seriously.
Company does not incorporate
ESG objectives into incentive
based compensation for
management.
Using the targets mentioned in
point (2) as a first step in
incorporating ESG goals into
incentive compensation.
G
Now decarbonisation targets have been set, a next
step is to incorporate these targets into executive
remuneration.
Structure has been highlighted
by MSCI as needing additional
independence.
Conduct additional diligence of the
board concerns with MSCI, and if
needed suggesting the company
consider adding board seats for
independent directors and
consideration of term limits.
G
Conversations with MSCI led us to believe that Board
concerns were formulaic regarding age and tenor,
and did not warrant a request to the company to
change board composition. We have the company
to MSCI’s standards, so they can better consider
future board decisions.

28
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Directors’ Report and Governance Reports Report of the Audit and Risk Committee
Report of the Audit and Risk Committee
Composition of the Audit and Risk Committee
The Audit and Risk Committee is chaired by Wendy Dorman and
comprises the full Board. The Audit and Risk Committee members
have recent and relevant financial experience. The terms of reference
of the Audit and Risk Committee are reviewed and re-assessed for
their adequacy on an annual basis.
The AIC Code of Corporate Governance requires Audit committees who
include the Chair of the Board as a member of the Committee to
explain why this is felt to be appropriate. The Chair, Caroline Hitch, is a
member of the Committee. Caroline was considered independent of
the Company on her appointment to the Board in March 2018 and the
Committee are satisfied that she remains independent and objective.
Her membership of the Committee is deemed appropriate given the size
and nature of the Company. The Audit and Risk Committee does not
believe it compromises the integrity of the Committee or the Board.
Role of the Audit & Risk Committee
A summary of the Committee’s main audit review functions is
shown below:
• to review and monitor the internal control systems and risk
management systems on which the Company is reliant;
• to consider annually whether there is a need for the Company to
have its own internal audit function;
• to monitor the integrity of the half-yearly and annual Financial
Statements of the Company by reviewing, and challenging where
necessary, the actions and judgements of the Investment
Manager, the Company Secretary and the Administrator;
• to advise the Board on whether the annual report and accounts,
taken as a whole, is fair, balanced and understandable, and
provides the information necessary for Shareholders to assess
the Company’s strategy, business model, position and
performance;
• to meet with the external Auditor, KPMG Channel Islands Limited
(“KPMG”) to review their proposed audit programme of work and
their findings. The Board shall also use this as an opportunity to
assess the effectiveness of the audit process;
• to make recommendations in relation to the appointment of the
external Auditor and to approve the remuneration and terms of
engagement of the external Auditor;
• to monitor and review annually the external Auditor’s
independence, objectivity, effectiveness, resources and
qualification; and
• to consider and approve all non-audit services. No non-audit
services are pre-approved.
Annual Report and Financial Statements
The Board is responsible for preparing the Annual Report and Financial
Statements. The Audit and Risk Committee advises the Board on the
form and content of the Annual Report and Financial Statements, any
issues which may arise and any specific areas which require
judgement.
The Company has adopted and reports against the AIC Code published
in February 2019. The Audit and Risk Committee oversaw the work
performed by the Company Secretary in ensuring that the Company
is in compliance with the principles and provisions of the AIC Code,
which is reported on in the Statement of Compliance with the AIC Code
of Corporate Governance section on page 24.
The valuation of investments was a key area of focus given their
significance to the Financial Statements as a whole. Following
discussion with the Investment Manager, the Audit and Risk Committee
gained comfort over the valuation as included in the Annual Report and
Financial Statements.
The Committee reviewed and considered the Annual Report and
Accounts to be fair, balanced and understandable and recommended
the Board’s approval.
Auditor
As part of its review of the scope and results of the audit, during the
year the Audit and Risk Committee considered and approved KPMG
Channel Islands Limited’s (“KPMG”) plan for the audit of the Financial
Statements for the year ended 30 June 2022. At the conclusion of
the audit, KPMG did not highlight any issues to the Audit and Risk
Committee which would cause it to qualify its audit report. KPMG
issued an unmodified audit report which is included on pages 31 to 35.
As part of the review of auditor independence and effectiveness, KPMG
has confirmed that it is independent of the Company and has complied
with relevant auditing standards. In evaluating KPMG, the Audit and
Risk Committee has taken into consideration the standing, skills and
experience of the firm and the audit team. The Audit and Risk Committee,
from direct observation and enquiry of the Investment Manager and
the Administrator, remains satisfied that KPMG continues to provide
effective independent challenge in carrying out its responsibilities.
No non-audit services were provided to the Company by KPMG during
the year.
Following professional guidelines, the audit engagement partner
rotates after a maximum of five years. The current audit engagement
partner is James Le Bailly and it is his second year as audit engagement
partner for the Company. KPMG LLP were auditors of the Company
since the first year end 30 June 2008. In the interests of good governance,
the Audit and Risk Committee carried out a tender process in 2016 and
KPMG LLP were successfully re-appointed. KPMG LLP subsequently
resigned as the Company’s auditors on 17 June 2019 and was replaced,
with effect from 17 June 2019, by KPMG Channel Islands Limited.
The Company also receives regular reporting on internal controls (as
detailed below).
Significant risks related to the Financial Statements
The main area of accounting risk considered by the Committee during
the year in relation to the Company’s Financial Statements was the
valuation of investments held by the Company.
The valuation of investments is undertaken in accordance with the
accounting policies as set out in note 1. Details of the fair value hierarchy
are set out in note 22.
In order to address this risk, the Company has appointed an Investment
Manager and Custodian with clearly defined contracts and any
breaches of these, or any law or regulation which the Company is
required to comply with, are reported to the Board. The portfolio
holdings and their pricing is reviewed on a daily basis and verified by
the Investment Manager.
A full portfolio is prepared for each Board meeting, including a detailed
movement of the top 60 holdings, which is actively commented on and
discussed by the Directors.

29
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Report of the Audit and Risk Committee Directors’ Report and Governance Reports
Internal Controls
The Committee, on behalf of the Board, is responsible for the Company’s
system of internal control and for reviewing its effectiveness. There is
an ongoing process for identifying, evaluating and managing the
significant risks faced by the Company. This process has been in place
for the year under review and up to the date of approval of this Annual
Report and is regularly reviewed by the Board and accords with FRC
Guidance.
The significant risks faced by the Company are as follows:
• financial;
• operational; and
• compliance.
The key components designed to provide effective internal control are
outlined below:
• the Administrator together with the Investment Manager prepare
forecasts and management accounts which allow the Board to
assess the Company’s activities and review its performance;
• the Board and Investment Manager have agreed clearly defined
investment criteria, specified levels of authority and exposure
limits. Reports on these issues, including performance statistics
and investment valuations, are regularly submitted to the Board
and there are meetings with the Investment Manager as
appropriate;
• as a matter of course the Investment Manager’s compliance
department continually reviews the Investment Manager’s
operations and reports to the Board on an annual basis and by
exception;
• written agreements are in place which specifically define the
roles and responsibilities of the Investment Manager, Company
Secretary, Administrator and other third party service providers;
• the Board has considered the need for an internal audit function
but, because of the compliance and internal control systems in
place at the Investment Manager, the Company Secretary and the
Administrator, has decided to place reliance on the Investment
Manager’s, the Company Secretary’s and the Administrator’s
systems and internal audit procedures.
The Directors have reviewed BNP Paribas Securities Services’ ISAE
3402 report for the period from 1 April 2021 to 31 March 2022 (report
on the description of controls placed in operation, their design and
operating effectiveness) on Fund Administration and are pleased to
note that no significant issues were identified. The Administrator has
confirmed there has been no change to their internal controls as
described in the aforementioned report for the period 1 April 2022
through 30 June 2022, which would materially affect the Company’s
internal control environment.
In November 2021, the Board held a strategy and due diligence meeting
at the offices of the Investment Manager. This provided an opportunity
to discuss the portfolio and strategy in depth, as well as focussing on
ESG matters, particularly climate change and sustainability, and risk
and compliance. We met various members of the Investment Manager
team including General Counsel, The Risk Manager, Head of
Infrastructure Controls and Head of Information Technology. Details of
the research and investment process were discussed, as well as ESG
policies and procedures.
During the year, the Committee carried out an annual assessment
of internal controls for the year ended 30 June 2022 by considering
documentation from the Investment Manager, the Company Secretary
and Administrator, including the internal audit and compliance functions.
The results of the assessment were then reported to the Board.
Internal control systems are designed to meet the Company’s
particular needs and the risks to which it is exposed. Accordingly, the
internal control systems are designed to manage rather than eliminate
the risk of failure to achieve business objectives and by their nature
can only provide reasonable and not absolute assurance against
misstatement and loss.
During the year, the Committee monitored the effectiveness of the
internal control framework in place at key third party service providers.
The Committee assessed the control environment as sufficiently
robust to mitigate any ongoing impact of COVID-19 on the Company,
together with heightened risks arising from Russian sanctions and
cyber security.
The principal and emerging risks affecting the Company, a description
of those risk and controls mitigating those risks are disclosed on
pages 10 to 11.
Wendy Dorman
Chair of the Audit and Risk Committee
15 September 2022

30
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Directors’ Report and Governance Reports Directors’ Remuneration Report
Directors’ Remuneration Report
Remuneration Committee
The Remuneration Committee, which is chaired by John Newlands,
operates within clearly defined terms of reference. The Committee
comprises the full Board.
The remuneration of the Directors has been set in order to attract
individuals of a calibre appropriate to the future development of the
Company. The Company’s policy on Directors’ remuneration, together
with details of the remuneration of each Director, is shown below.
Policy on Directors’ Remuneration
The Company’s Articles of Association limit the aggregate fees payable
to the Board of Directors to a total of £250,000 per annum. Subject to
this overall limit, it is the Company’s policy that the remuneration of
non-executive Directors should reflect the experience of the Board as
a whole, be fair and comparable to that of other relevant investment
companies that are similar in size and have similar investment
objectives and structures. Furthermore, the level of remuneration
should be sufficient to attract and retain the Directors needed to
oversee properly the Company and to reflect the specific circumstances
of the Company, the duties and responsibilities of the Directors and the
value and amount of time committed to the Company’s affairs. It is
intended that this policy will continue for the year ending 30 June 2023
and subsequent years.
On 3 June 2021, the Board approved an increased level of remuneration
for the Directors with effect from 1 July 2021 as follows:
Chair £42,500 (2021: £40,000)
Audit Chair £36,500 (2021: £34,000)
Other £30,000 (2021: £27,500)
No element of the Directors’ remuneration is performance related.
No Director past or present has any entitlement to pensions and the
Company has not awarded any share options or long-term performance
incentives to any of the Directors.
It is the Board’s policy that Directors do not have service contracts, but
new Directors are provided with a letter of appointment.
Directors’ Emoluments
The Directors who served in the year received the following fees:
2022
£
2021
£
C Hitch (Chair) 42,500 40,000
D A H Baxter 30,000 27,500
I Cadby 30,000 27,500
W Dorman
(Audit and Risk
Committee Chair) 36,500 34,000
J E Newlands 30,000 27,500
Totals 169,000 156,500
The amounts paid by the Company to the Directors were for services as
non-executive Directors.
Voting at Annual General Meeting
An ordinary resolution for the approval of this Directors’ Remuneration
Report will be put to an advisory shareholder vote at the forthcoming
Annual General Meeting.
Approval
The Directors’ Remuneration Report on page 30 was approved by the
Board of Directors and signed on its behalf on 15 September 2022.
On behalf of the Board
Caroline Hitch
Chair
15 September 2022

31
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Independent Auditor’s Report to the members of CQS New City High Yield Fund Limited Independent Auditor’s Report
Our opinion is unmodified
We have audited the financial statements of CQS New City High Yield
Fund Limited (the “Company”), which comprise the statement of
financial position as at 30 June 2022, the statements of comprehensive
income, changes in equity and the cash flow statement for the year
then ended, and notes, comprising significant accounting policies and
other explanatory information.
In our opinion, the accompanying financial statements:
• give a true and fair view of the financial position of the Company as
at 30 June 2022, and of the Company’s financial performance and
cash flows for the year then ended;
• are prepared in accordance with International Financial Reporting
Standards as adopted by the EU; and
• have been properly prepared in accordance with the Companies
(Jersey) Law, 1991.
Basis for opinion
We conducted our audit in accordance with International Standards on
Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are
described below. We have fulfilled our ethical responsibilities under,
and are independent of the Company in accordance with, UK ethical
requirements including the FRC Ethical Standard as required by the
Crown Dependencies’ Audit Rules and Guidance. We believe that the
audit evidence we have obtained is a sufficient and appropriate basis
for our opinion.
Independent
auditor’s report
to the Members of CQS New City High Yield Fund
Limited

32
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Independent Auditor’s Report Independent Auditor’s Report to the members of CQS New City High Yield Fund Limited
Key audit matters: our assessment of the risks of material misstatement
Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements and include
the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest
effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. In arriving at our audit opinion above, the key audit matter was as follows (unchanged from 2021):
The risk Our response
Valuation of investments
£263m; (2021: £257m)
Refer to page 28 (Report of
the Audit and Risk
Committee), note 1(a) and
1(b) (accounting policy),
note 9 (financial assets
designated at fair value
through profit or loss) and
notes 16 (financial
instruments) and 22 (fair
value hierarchy).
Basis:
The Company’s portfolio of investments makes up
97.1% of the Company’s total assets (by value). 92.2%
of the investments comprise investments where the
fair values are readily available from a number of
independent pricing sources (such as stock
exchanges or multiple brokers) and therefore we do
not consider these investments to be at a high risk of
misstatement.
The fair value of the Company’s remaining
investments holdings of £20.5m, which represent
7.8% of the investments, are not readily available
from a number of independent pricing sources and
are valued by the Company using valuation
techniques taking into account, where appropriate,
latest dealing prices, broker statements, and other
relevant factors or information.
Risk:
The valuation of the Company’s investments is a
significant area of our audit, given that it represents a
significant portion of the total assets of the Company.
The valuation risk of the investments also relates to
those investments where the fair values are not
readily available from a number of independent
pricing sources given the estimation and judgements
that may be involved in the determination of their fair
values.
Our audit procedures included:
Internal Controls:
We assessed the design and implementation of
controls over the valuation of investments where the
fair values are not readily available from a number of
independent pricing sources given the estimation and
judgements that may be involved in the determination
of their fair values.
Use of KPMG Specialists:
We engaged our valuation specialist to:
- Independently price investments to a third party
pricing source and compare the price to that
used by the Company, where prices are readily
available; and
- Derive independent valuations for the remaining
investments (where fair value not readily
available from a number of independent pricing
sources) by using a model-based valuation (like
discounted cash flow model) to calculate a price
and compared it to the price used by the
Company.
Assessing disclosures:
We also considered the Company’s disclosures (see
note 1 – critical accounting estimates and judgements)
in relation to the use of estimates and judgements
regarding the valuation of investments and the
Company’s investment valuation policies adopted in
note 16 and fair value disclosures in note 22 for
compliance with IFRS as adopted by the EU.
Our application of materiality and an overview of the scope of our
audit
Materiality for the financial statements as a whole was set at
£2,790,000, determined with reference to a benchmark of total assets
of £271,197,000, of which it represents approximately 1.0% (2021:
1.0%).
In line with our audit methodology, our procedures on individual
account balances and disclosures were performed to a lower threshold,
performance materiality, so as to reduce to an acceptable level the risk
that individually immaterial misstatements in individual account
balances add up to a material amount across the financial statements
as a whole. Performance materiality for the Company was set at 75%
(2021: 75%) of materiality for the financial statements as a whole,
which equates to £2,092,000. We applied this percentage in our
determination of performance materiality because we did not identify
any factors indicating an elevated level of risk.
We reported to the Audit Committee any corrected or uncorrected
identified misstatements exceeding £139,000, in addition to other
identified misstatements that warranted reporting on qualitative
grounds.
In addition, we applied a lower materiality of £1,680,000, to the
investment income balance (£22.4m) for which we believe
misstatements of a lesser amount than materiality for the financial
statements as a whole could be reasonably expected to influence the
Company’s members’ assessment of the financial performance of the
Company.
Our audit of the Company was undertaken to the materiality level
specified above, which has informed our identification of significant
risks of material misstatement and the associated audit procedures
performed in those areas as detailed above.

33
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Independent Auditor’s Report to the members of CQS New City High Yield Fund Limited Independent Auditor’s Report
Going concern
The directors have prepared the financial statements on the going
concern basis as they do not intend to liquidate the Company or to
cease its operations, and as they have concluded that the Company’s
financial position means that this is realistic. They have also concluded
that there are no material uncertainties that could have cast significant
doubt over its ability to continue as a going concern for at least a year
from the date of approval of the financial statements (the “going
concern period”).
In our evaluation of the directors’ conclusions, we considered the
inherent risks to the Company’s business model and analysed how
those risks might affect the Company’s financial resources or ability to
continue operations over the going concern period. The risks that we
considered most likely to affect the Company’s financial resources or
ability to continue operations over this period were:
• Availability of capital to meet operating costs and other financial
commitments;
• The outcome of the upcoming continuation vote at the forthcoming
Annual General Meeting of the Company;
• The ability to successfully refinance or repay debt which is due to
mature by end of 2023; and
• The ability of the Company to comply with debt covenants.
We considered whether these risks could plausibly affect the liquidity
in the going concern period by comparing severe, but plausible
downside scenarios that could arise from these risks individually and
collectively against the level of available financial resources indicated
by the Company’s financial forecasts.
We also considered the risk that the outcome of the continuation vote
could affect the Company over the going concern period, by considering
outcomes of previous votes held by the Company, reviewing
correspondence from the brokers that they have no concerns regarding
the outcome of the continuation vote, and considering key financial
metrics including discount/premium of the Company’s share price
against its reported net asset value per share, over the past 12 months.
We considered whether the going concern disclosure in note 1(a) to the
financial statements gives a full and accurate description of the
directors’ assessment of going concern.
Our conclusions based on this work:
• we consider that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is
appropriate;
• we have not identified, and concur with the directors’ assessment
that there is not, a material uncertainty related to events or
conditions that, individually or collectively, may cast significant
doubt on the the Company’s ability to continue as a going concern
for the going concern period; and
• we have nothing material to add or draw attention to in relation to
the directors’ statement in the notes to the financial statements on
the use of the going concern basis of accounting with no material
uncertainties that may cast significant doubt over the Company’s
use of that basis for the going concern period, and that statement is
materially consistent with the financial statements and our audit
knowledge.
However, as we cannot predict all future events or conditions and as
subsequent events may result in outcomes that are inconsistent with
judgements that were reasonable at the time they were made, the
above conclusions are not a guarantee that the Company will continue
in operation.
Fraud and breaches of laws and regulations – ability
to detect
Identifying and responding to risks of material misstatement due
to fraud
To identify risks of material misstatement due to fraud (“fraud risks”)
we assessed events or conditions that could indicate an incentive or
pressure to commit fraud or provide an opportunity to commit fraud.
Our risk assessment procedures included:
• enquiring of management as to the Company’s policies and
procedures to prevent and detect fraud as well as enquiring whether
management have knowledge of any actual, suspected or alleged
fraud;
• reading minutes of meetings of those charged with governance; and
• using analytical procedures to identify any unusual or unexpected
relationships.
As required by auditing standards, we perform procedures to address
the risk of management override of controls, in particular the risk that
management may be in a position to make inappropriate accounting
entries. On this audit we do not believe there is a fraud risk related to
revenue recognition because the Company’s revenue streams are
simple in nature with respect to accounting policy choice, and are
easily verifiable to external data sources or agreements with little or
no requirement for estimation from management. We did not identify
any additional fraud risks.
We performed procedures including
• Identifying journal entries and other adjustments to test based on
risk criteria and comparing any identified entries to supporting
documentation; and
• incorporating an element of unpredictability in our audit procedures.
Identifying and responding to risks of material misstatement due
to non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be
expected to have a material effect on the financial statements from our
sector experience and through discussion with management (as
required by auditing standards), and from inspection of the Company’s
regulatory and legal correspondence, if any, and discussed with
management the policies and procedures regarding compliance with
laws and regulations. As the Company is regulated, our assessment of
risks involved gaining an understanding of the control environment
including the entity’s procedures for complying with regulatory
requirements.
The Company is subject to laws and regulations that directly affect the
financial statements including financial reporting legislation and
taxation legislation and we assessed the extent of compliance with
these laws and regulations as part of our procedures on the related
financial statement items.
The Company is subject to other laws and regulations where the
consequences of non-compliance could have a material effect on
amounts or disclosures in the financial statements, for instance
through the imposition of fines or litigation or impacts on the
Company’s ability to operate. We identified financial services regulation

34
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Independent Auditor’s Report Independent Auditor’s Report to the members of CQS New City High Yield Fund Limited
as being the area most likely to have such an effect, recognising the
regulated nature of the Company’s activities and its legal form.
Auditing standards limit the required audit procedures to identify non-
compliance with these laws and regulations to enquiry of management
and inspection of regulatory and legal correspondence, if any.
Therefore if a breach of operational regulations is not disclosed to us
or evident from relevant correspondence, an audit will not detect that
breach.
Context of the ability of the audit to detect fraud or breaches of law
or regulation
Owing to the inherent limitations of an audit, there is an unavoidable
risk that we may not have detected some material misstatements in
the financial statements, even though we have properly planned and
performed our audit in accordance with auditing standards. For
example, the further removed non-compliance with laws and
regulations is from the events and transactions reflected in the
financial statements, the less likely the inherently limited procedures
required by auditing standards would identify it.
In addition, as with any audit, there remains a higher risk of non-
detection of fraud, as this may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal controls.
Our audit procedures are designed to detect material misstatement.
We are not responsible for preventing non-compliance or fraud and
cannot be expected to detect non-compliance with all laws and
regulations.
Other information
The directors are responsible for the other information. The other
information comprises the information included in the annual report
but does not include the financial statements and our auditor’s report
thereon. Our opinion on the financial statements does not cover the
other information and we do not express an audit opinion or any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have
nothing to report in this regard.
Disclosures of emerging and principal risks and
longer term viability
We are required to perform procedures to identify whether there is a
material inconsistency between the directors’ disclosures in respect of
emerging and principal risks and the viability statement, and the
financial statements and our audit knowledge. we have nothing
material to add or draw attention to in relation to:
• the directors’ confirmation within the Viability Statement (page 14)
that they have carried out a robust assessment of the emerging and
principal risks facing the Company, including those that would
threaten its business model, future performance, solvency or
liquidity;
• the emerging and principal risks disclosures describing these risks
and explaining how they are being managed or mitigated;
• the directors’ explanation in the Viability Statement (page 14) as to
how they have assessed the prospects of the Company, over what
period they have done so and why they consider that period to be
appropriate, and their statement as to whether they have a
reasonable expectation that the Company will be able to continue in
operation and meet its liabilities as they fall due over the period of
their assessment, including any related disclosures drawing
attention to any necessary qualifications or assumptions.
We are also required to review the Viability Statement, set out on
page 14 under the Listing Rules. Based on the above procedures, we
have concluded that the above disclosures are materially consistent
with the financial statements and our audit knowledge.
Corporate governance disclosures
We are required to perform procedures to identify whether there is a
material inconsistency between the directors’ corporate governance
disclosures and the financial statements and our audit knowledge.
Based on those procedures, we have concluded that each of the
following is materially consistent with the financial statements and our
audit knowledge:
• the directors’ statement that they consider that the annual report
and financial statements taken as a whole is fair, balanced and
understandable, and provides the information necessary for
shareholders to assess the Company’s position and performance,
business model and strategy;
• the section of the annual report describing the work of the Audit
Committee, including the significant issues that the audit committee
considered in relation to the financial statements, and how these
issues were addressed; and
• the section of the annual report that describes the review of the
effectiveness of the Company’s risk management and internal
control systems.
We are required to review the part of Corporate Governance Statement
relating to the Company’s compliance with the provisions of the UK
Corporate Governance Code specified by the Listing Rules for our
review. We have nothing to report in this respect.
We have nothing to report on other matters on which
we are required to report by exception
We have nothing to report in respect of the following matters where the
Companies (Jersey) Law 1991 requires us to report to you if, in our
opinion:
• adequate accounting records have not been kept by the Company; or
• the Company’s financial statements are not in agreement with the
accounting records; or
• we have not received all the information and explanations we require
for our audit.
Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 16, the
directors are responsible for: the preparation of the financial
statements including being satisfied that they give a true and fair view;
such internal control as they determine is necessary to enable the

35
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Independent Auditor’s Report to the members of CQS New City High Yield Fund Limited Independent Auditor’s Report
preparation of financial statements that are free from material
misstatement, whether due to fraud or error; assessing the Company’s
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern; and using the going concern basis of
accounting unless they either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue our opinion in an auditor’s
report. Reasonable assurance is a high level of assurance, but does
not guarantee that an audit conducted in accordance with ISAs (UK)
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the
basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s
website at www.frc.org.uk/auditorsresponsibilities.
The purpose of this report and restrictions on its use by persons
other than the Company’s members as a body
This report is made solely to the Company’s members, as a body, in
accordance with Article 113A of the Companies (Jersey) Law 1991. Our
audit work has been undertaken so that we might state to the
Company’s members those matters we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members, as a body, for
our audit work, for this report, or for the opinions we have formed.
James Le Bailly
For and on behalf of KPMG Channel Islands Limited
Chartered Accountants and Recognized Auditors
Jersey
15 September 2022

36
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Statement of Comprehensive Income
Statement of Comprehensive Income
For the year ended 30 June 2022
Year ended
30 June 2022
Year ended
30 June 2021
Notes
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Net capital gains/(losses)
(Losses)/gains on financial assets
designated at fair value 9 – (14,459) (14,459) – 23,913 23,913
Foreign exchange gain/(loss)
*
– 61 61 – (36) (36)
Revenue
Investment income 2 22,362 – 22,362 21,151 – 21,151
Total Income 22,362 (14,398) 7,964 21,151 23,877 45,028
Expenses
Investment management fee 3 (1,595) (531) (2,126) (1,456) (485) (1,941)
Other expenses 4 (772) (75) (847) (800) (14) (814)
Total expenses (2,367) (606) (2,973) (2,256) (499) (2,755)
Profit/(loss) before finance costs
and taxation 19,995 (15,004) 4,991 18,895 23,378 42,273
Finance income/(costs)
Interest income 1 – 1 – – –
Interest expense 5 (456) (152) (608) (326) (107) (433)
Profit/(loss) before taxation 19,540 (15,156) 4,384 18,569 23,271 41,840
Irrecoverable withholding tax 6 (377) – (377) (267) – (267)
Profit/(loss) after taxation and
total comprehensive income/(loss) 19,163 (15,156) 4,007 18,302 23,271 41,573
Basic and diluted earnings/(losses)
per ordinary share (pence) 8 4.16 (3.29) 0.87 4.18 5.32 9.50
* Excludes foreign exchange gains and losses on financial assets designated through profit and loss which are presented within (losses)/gains on
financial assets designated at fair value.
The total column of this statement represents the Company’s Statement of Comprehensive Income, prepared in accordance with IFRS as adopted
by the EU (refer to note 1). The supplementary revenue return and capital return columns are both prepared under guidance published by the
Association of Investment Companies.
There is no other comprehensive income as all income is recorded in the Statement of Comprehensive Income above.
All revenue and capital items in the above statement are derived from continuing operations.
No operations were acquired or discontinued in the year.
The accompanying notes on pages 40 to 54 are an integral part of these Financial Statements.
36
Financial Statements Statement of Comprehensive Income

37
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Statement of Financial Position Financial Statements
Statement of Financial Position
As at 30 June 2022
Notes
As at 30 June 2022
£’000
As at 30 June 2021
£’000
Non-current assets
Financial assets designated at fair value through profit or loss 9 263,393 257,467
Current assets
Debtors and other receivables 10 3,819 3,585
Cash and cash equivalents 3,985 11,427
7,804 15,012
Total assets 271,197 272,479
Non-current liabilities
Bank loan 11 (33,000) –
Current liabilities
Bank loan 11 – (33,000)
Creditors and other payables 12 (3,211) (5,301)
Total liabilities (36,211) (38,301)
Net asset value 234,986 234,178
Stated capital and reserves
Stated capital account 13 220,649 203,416
Special distributable reserve 50,385 50,385
Capital reserve (51,610) (36,454)
Revenue reserve 15,562 16,831
Equity Shareholders’ funds 234,986 234,178
Net asset value per ordinary share (pence) 15 49.30p 52.62p
The Financial Statements on pages 36 to 54 were approved by the Board of Directors and authorised for issue on 15 September 2022 and were
signed on its behalf by:
Caroline Hitch
Chair
15 September 2022
The accompanying notes on pages 40 to 54 are an integral part of these Financial Statements.

38
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Statement of Changes in Equity
Statement of Changes in Equity
For the year ended 30 June 2022
Notes
Stated
capital
account
*
£’000
Special
distributable
reserve
‡
£’000
Capital
reserve
*
£’000
Revenue
reserve
†
£’000
Total
£’000
At 1 July 2021 203,416 50,385 (36,454) 16,831 234,178
Total comprehensive income for the year:
Profit/(loss) for the year – – (15,156) 19,163 4,007
Transactions with owners recognised directly in equity:
Dividends paid 7 – – – (20,432) (20,432)
Net proceeds from issue of shares 13 17,233 – – – 17,233
At 30 June 2022 220,649 50,385 (51,610) 15,562 234,986
For the year ended 30 June 2021
Notes
Stated
capital
account
*
£’000
Special
distributable
reserve
‡
£’000
Capital
reserve
*
£’000
Revenue
reserve
†
£’000
Total
£’000
At 1 July 2020 197,037 50,385 (59,725) 17,982 205,679
Total comprehensive income for the year:
Profit for the year – – 23,271 18,302 41,573
Transactions with owners recognised directly in equity:
Dividends paid 7 – – – (19,453) (19,453)
Net proceeds from issue of shares 13 6,379 – – – 6,379
At 30 June 2021 203,416 50,385 (36,454) 16,831 234,178
* Following a change in Jersey Company Law effective 27 June 2008, dividends can be paid out of any capital account of the Company subject to
certain solvency restrictions. However, it is the Company’s policy to account for revenue items and pay dividends, drawing where necessary from
a separate revenue reserve.
‡ The balance on the special distributable reserve of £50,385,000 (2021: £50,385,000) is treated as distributable profits available to be used for all
purposes permitted by Jersey Company Law including the buying back of ordinary shares, the payment of dividends and the payment of preliminary
expenses.
† The balance on the revenue reserve of £15,562,000 (2021: £16,831,000) is available for paying dividends.
The accompanying notes on pages 40 to 54 are an integral part of these Financial Statements.

39
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Cash Flow Statement Financial Statements
Cash Flow Statement
For the year ended 30 June 2022
Notes
Year ended
30 June
2022
£’000
Year ended
30 June
2021
£’000
Operating activities
Profit before finance income/(cost) and taxation
1
4,991 42,273
Adjustments to reconcile profit before tax to net cash flows:
Realised (gains)/losses on financial assets designated at fair value through profit or loss 9 (3,631) 11,575
Unrealised losses/(gains) on financial assets designated at fair value through profit or loss 9 18,090 (35,489)
Effective interest adjustment 9 (154) (232)
Foreign exchange (gain)/loss (61) 36
Purchase of financial assets designated at fair value through profit or loss
2
(110,433) (70,415)
Proceeds from sale of financial assets designated at fair value through profit or loss
3
85,833 73,280
Changes in working capital
(Increase)/decrease in other receivables (508) 51
Increase/(decrease) in other payables 2,266 (422)
Irrecoverable withholding tax paid (377) (267)
Net cash (used in)/generated from operating activities (3,984) 20,390
Financing activities
Dividends paid 7 (20,432) (19,453)
Drawdown of bank loan 11 – 2,000
Finance costs (595) (431)
Proceeds from issuance of ordinary shares
4
13 17,508 6,104
Net cash used in financing activities (3,519) (11,780)
(Decrease)/increase in cash and cash equivalents (7,503) 8,610
Cash and cash equivalents at the start of the year 11,427 2,853
Exchange gain/(loss) 61 (36)
Cash and cash equivalents at the end of the year 3,985 11,427
1
Included within profit before finance income/(cost) and taxation is dividend income of £3,684,000 (30 June 2021: £2,934,000) and interest income
of £18,678,000 (30 June 2021: £18,217,000).
2
Amounts due to brokers as at 30 June 2022 relating to purchases of financial assets designated at fair value through profit amounted to £613,000
(30 June 2021: £4,980,000).
3
Amounts due from brokers as at 30 June 2022 relating to sales of financial assets designated at fair value through profit amounted to £nil
(30 June 2021: £nil).
4
Amounts due on new share issuance not yet received as at 30 June 2022 amounted to £nil (30 June 2021: £275,000).
The accompanying notes on pages 40 to 54 are an integral part of these Financial Statements.

40
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Notes to the Financial Statements
Notes to the Financial Statements
1 Accounting Policies
(a) Basis of accounting
These Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European
Union and in accordance with the guidance set out in the Statement of Recommended Practice (“SORP”): Financial Statements of Investment
Trust Companies and Venture Capital Trusts issued by the AIC in November 2014 and updated most recently in April 2021 with consequential
amendments. Notwithstanding that CQS New City High Yield Fund Limited (the “Company”) is not an investment trust company, given the purpose
of the Company and certain similar characteristics, the Company has chosen to follow the guidance set out in the SORP where it is consistent with
the requirements of IFRS.
The functional and reporting currency of the Company is pound sterling because that is the primary economic environment in which the Company
operates. The notes and Financial Statements are presented in pound sterling and are rounded to the nearest thousand except where otherwise
indicated.
The Financial Statements have been prepared on the historical cost basis, except that investments are stated at fair value and categorised as
financial assets at fair value through profit or loss.
Going concern
At each Annual General Meeting of the Company, Shareholders are given the opportunity to vote on an ordinary resolution to continue the Company
as an investment company. If any such resolution is not passed, the Board will put forward proposals at an extraordinary general meeting to
liquidate or otherwise reconstruct or reorganise the Company. Given the performance of the Company, input from the Company’s major Shareholders
and its broker, the Board considers it likely that Shareholders will vote in favour of continuation at the forthcoming Annual General Meeting.
The Company’s existing loan facility as detailed on page 46 has been renewed for an amount of up to £45 million and is due to mature on
17 December 2023 after which it is anticipated the Company will take out a new facility on comparable terms. After making enquiries of the
Investment Manager, and having considered the Company’s investment objective, nature of the investment portfolio, loan facility, expenditure
projections, impact of COVID-19 and the impact of the Russia-Ukraine conflict on the Company, the Directors consider that the Company has
adequate resources to continue in operational existence for the foreseeable future. For this reason the Directors continue to adopt the going concern
basis in preparing the Financial Statements, notwithstanding that the Company is subject to an annual continuation vote as described above.
Accounting Developments
Standards and amendments to existing standards effective in current year:
Interest Rate Benchmark Reform – Phase 2
These amendments address issues that might affect financial reporting as a result of the reform of an interest rate benchmark, including the
effects of changes to contractual cash flows or hedging relationships arising from the replacement of an interest rate benchmark with an
alternative benchmark rate. The amendments provide practical relief from certain requirements in IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
relating to changes in the basis for determining contractual cash flows of financial assets, financial liabilities and lease liabilities; and hedge
accounting (no impact).
Change in basis for determining cash flows
The amendments require an entity to account for a change in the basis for determining the contractual cash flows of a financial asset or financial
liability that is required by interest rate benchmark reform by updating the effective interest rate of the financial asset or financial liability.
At the beginning of the period, the Company had an unsecured loan facility with Scotiabank Europe Plc that had a limit of £35 million of which £33
million was drawn down at an interest rate of 1.35% + LIBOR. Pursuant to a Seventh Amendment Agreement with effective date 17 December 2021,
the loan facility was increased to a committed limit of £45 million (with an option to increase by a further £5 million) of which £33 million was still
drawn down as at the year end. The interest rate was changed to 1.45% plus a compounded reference rate. As from 17 September 2021, the
Company had replaced LIBOR by SONIA for the calculation of interest on the loan facility.
The Company held floating rate investments securities which were subject to the IBOR reform during the period given that their interest rates
referenced LIBOR. All of those positions have replaced LIBOR by SONIA as from 1 July 2021, for the determination of the interest amounts due to
the Company.
Standards and amendments becoming effective in future periods:
A number of amendments and interpretations to existing standards have been issued, but are not yet effective, that are not relevant to the
Company’s operations. The Directors believe that the application of these amendments and interpretations will not impact the Company’s
Financial Statements when they become effective.

41
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Notes to the Financial Statements Financial Statements
Critical accounting estimates and judgements
The preparation of the Financial Statements necessarily requires the exercise of judgement both in application of accounting policies which are set
out below and in the selection of assumptions used in the calculation of estimates. These estimates and judgements are reviewed on an ongoing
basis and are continually evaluated based on historical experience and other factors. However, actual results may differ from these estimates.
The valuation of financial assets involves estimation and judgements. The major part of the Company’s financial assets is its financial assets held
at fair value through profit or loss which is valued by reference to listed and quoted bid prices, however some of these financial assets are thinly
traded. Such financial assets are best valued by reference to current market price quotes provided by independent brokers. The Directors may
overlay such prices with situation specific adjustments including (a) taking a second independent opinion on a specific investment, or (ii) reducing
the value to a net present value, to reflect the likely time to be taken to realise a stock which the Company is actively looking to sell. The outturn
is reflected in the valuations of investments as set out in note 22 to the Financial Statements.
Financial assets which are not listed or where trading in the securities of an investee company is suspended are valued at the Board’s estimate
of fair value in accordance with International Private Equity and Venture Capital (IPEV) valuation guidance. Unquoted financial assets are valued
by the Directors on the basis of all the information available to them at the time of valuation. This includes a review of the financial and trading
information of the investee company, covenant compliance, ability to pay the interest due and cash held. For convertible bonds this also includes
consideration of their discounted cash flows and underlying equity value based on information provided by the Investment Manager.
In respect of two of the Company’s investments in particular, Raven Property Group Ltd and Raven Russia 12% 09-31/12/2059, the Investment
Manager marked the positions to a fair value of nil as at 30 June 2022, following the Russian/Ukraine conflict. Raven suspended its shares during
the year and advised it was unlikely to be able to continue maintaining normal operations. It has since been delisted from the stock exchange,
coupon payments on the preference shares have ceased and the price of both securities has been written down to zero in the Company’s portfolio.
There were no other significant accounting estimates or significant judgements in the current or previous year.
A summary of the principal accounting policies which have been applied to all periods presented in these Financial Statements is set out below.
(b) Financial assets
Financial assets which comprise equity shares, convertible bonds and fixed income securities, are classified as held at fair value through profit or
loss as the Company’s business model is not to hold these financial assets for the sole purposes of collecting contractual cash flows. In making
this assessment, the Directors have given regard to the investment strategy of the Company, the fact that the performance of the portfolio is
evaluated on a fair value basis and the fact that the Investment Manager is remunerated on a percentage of total assets.
Purchases or sales of financial assets are recognised/derecognised on the date the Company trades the investments. On initial recognition
investments are measured at fair value and classified as fair value through profit or loss with any subsequent gain or loss, including any gain or
loss arising from a change in exchange rates, recognised in the Statement of Comprehensive Income.
Financial assets held at fair value through profit or loss are valued in accordance with the policies described in the critical accounting estimates
and judgements section above.
Financial assets also include the Company’s cash and cash equivalents (comprising of cash held in current accounts and overdraft balances) and
debtors and other receivables which are held at amortised cost using effective interest rate, less any impairment.
(c) Financial liabilities
Financial liabilities include amounts due to brokers, bank loan, interest on bank loan and other creditors which are held at amortised cost using
the effective interest rate method. Financial liabilities are recognised initially at fair value, net of transaction costs incurred and are subsequently
carried at amortised cost using the effective interest rate method. Financial liabilities are derecognised when the obligation specified in the contract
is discharged, cancelled or expires.
(d) Income
Dividends receivable on equity shares (including preference shares) are recognised as income on the date that the related investments are marked
ex-dividend. Dividends receivable on equity shares where no ex-dividend date is quoted are recognised as income when the Company’s right to
receive payment is established.
Dividends from overseas companies are shown gross of any non-recoverable withholding taxes which are disclosed separately in the Statement
of Comprehensive Income.
Fixed returns on non-equity shares and debt securities (including preference shares) are recognised on a time apportioned basis so as to reflect
the effective interest rate on those instruments. Other returns on non-equity shares are recognised when the right to the return is established.
Where the Company has elected to receive its dividends in the form of additional shares rather than cash, an amount equal to the cash dividend is
recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in the capital reserve.

42
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Notes to the Financial Statements
(e) Expenses, including finance charges
All expenses are accounted for on an accruals basis. Expenses are charged through the revenue account except as follows:
– expenses which are incidental to the acquisition of an investment are charged to the capital account;
– expenses which are incidental to the disposal of an investment charged to the capital account;
– the Company charges 25% of investment management fees and interest costs to capital, in line with the Board’s expected long term return
in the form of capital gains and income respectively from the investment portfolio of the Company. For further details refer to notes 3 and 5;
and
– expenses incurred in connection with the maintenance or enhancement of the value of the investments or for the long term benefit of the
Company are charged to capital.
(f) Foreign currencies
Transactions denominated in foreign currencies are recorded in the functional currency at actual exchange rates at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the period end are reported in sterling at the rates of exchange prevailing at
the period end. Exchange gains and losses on investments held at fair value through profit or loss are included in ‘Gains or losses on investments
held at fair value through profit or loss’. Exchange gains and losses on other balances are disclosed separately in the Statement of Comprehensive
Income.
(g) Reserves
(a) Capital reserve. Following a change in Jersey Company law effective 27 June 2008, dividends can be paid out of any capital account of the
Company subject to certain solvency restrictions. It is the Company’s policy however to account for revenue items and pay dividends through
a separate revenue reserve. The following are accounted for in the capital reserve:
– gains and losses on the realisation of investments;
– realised and unrealised exchange differences of a capital nature;
– expenses and finance costs charged in accordance with the policies above; and
– increases and decreases in the valuation of investments held at the period end.
(b) Special distributable reserve. This reserve is treated as distributable profits available to be used for all purposes permitted by Jersey company
law including the buying back of ordinary shares, the payment of dividends (see note 7) and the payment of preliminary expenses.
(c) Revenue reserve. The net profit/(loss) and total comprehensive income/(loss) arising in the revenue column of the Statement of Comprehensive
Income is added to or deducted from this reserve and is available for paying dividends.
(h) Share capital
Ordinary shares
The Company’s ordinary shares are classified as equity based on the substance of the contractual arrangements and in accordance with the definition
of equity instruments under IAS 32. The proceeds from the issue of ordinary shares are recognised in the Statement of Changes in Equity, net of
issue costs.
Treasury shares
When the Company purchases its ordinary shares to be held in treasury, the amount of the consideration paid, which includes directly attributable
costs is recognised as a deduction from the stated capital account. When these shares are sold subsequently, the amount received is recognised
as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to or from the stated capital account.
(i) Segmental information
The Company, holds a wide variety of different investments in a wide range of issues locating in different geographies and operating in different
sectors. However, resources are allocated and the business is managed by the chief operating decision-makers, the directors, on an aggregated
basis. Strategic and financial management decisions are determined centrally by the Directors and, on this basis, the Company operates as a
single investment management business and no segmental reporting is provided.
2 Income
2022
£’000
2021
£’000
Income from investments
*
Dividend income 3,684 2,934
Interest on fixed income securities
†
18,678 18,217
Total income 22,362 21,151
* All investment income arises on financial assets valued at fair value through profit or loss.
† Fixed income securities include fixed and floating rate securities, convertible securities and preference shares.

43
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Notes to the Financial Statements Financial Statements
3 Investment management fee
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
2021
Revenue
£’000
2021
Capital
£’000
2021
Total
£’000
Investment management fee 1,595 531 2,126 1,456 485 1,941
The Company’s investment manager is CQS (UK) LLP (“CQS”).
As per the Investment Management Agreement dated 18 September 2019, the management fee is charged at a rate of 0.80% per annum on the
Company’s total assets (being total assets less current liabilities (other than bank borrowings and ignoring any taxation which is or may be payable
by the Company)) up to £200 million, 0.70% per annum of total assets in excess of £200 million and up to and including £300 million and 0.60%
per annum thereafter. The management fee is paid monthly in arrears.
The contract between the Company and CQS (UK) LLP may be terminated by either party giving not less than 12 months’ notice of termination.
During the year ended 30 June 2022, investment management fees of £2,126,000 were incurred (year ended 30 June 2021: £1,941,000), of which
£173,000 was payable at the period end (year ended 30 June 2021: £168,000). Investment management fees have been allocated 75% to revenue
and 25% to capital.
4 Other Expenses
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
2021
Revenue
£’000
2021
Capital
£’000
2021
Total
£’000
Secretarial and administration fees 207 – 207 202 – 202
Directors’ fees 169 – 169 157 – 157
Auditors’ remuneration for:
– audit services 48 – 48 40 – 40
Broker fees 30 – 30 30 – 30
Printing 8 – 8 20 – 20
Bank and custody charges 110 – 110 84 – 84
Registrars’ fees 37 – 37 34 – 34
Depositary fees 45 – 45 45 – 45
Legal and professional fees 40 – 40 43 – 43
Other 78 75 153 145 14 159
772 75 847 800 14 814
Directors’ fees
On 3 June 2021, the Board approved an increased level of remuneration for the Directors from £156,500 (Chair: £40,000; Audit Chair: £34,000 and
other directors: £27,500) to £169,000 with annual effect from 1 July 2021 as follows:
Chair £42,500
Audit Chair £36,500
Other £30,000
Directors’ fees of £7,500 were accrued as at 30 June 2022.
Further details are provided in the Directors’ Remuneration Report on page 30.
No pension contributions were payable in respect of any of the Directors and the Company does not have any employees.
Non-audit fees paid to the auditor
There were no non-audit fees paid to the auditor during the year ended 30 June 2022 (year ended 30 June 2021: £nil).

44
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Notes to the Financial Statements
5 Interest expense
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
2021
Revenue
£’000
2021
Capital
£’000
2021
Total
£’000
Interest expense 456 152 608 326 107 433
Interest expense and similar charges have been allocated 25% to capital and 75% to revenue as explained in note 1(e).
6 Taxation
The taxation charge for the year is comprised of:
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
2021
Revenue
£’000
2021
Capital
£’000
2021
Total
£’000
Irrecoverable withholding tax suffered 377 – 377 267 – 267
The taxation on profit differs from the theoretical expense that would apply on the Company’s profit before taxation using the applicable tax rate
in Jersey of 0% (2021: 0%) as follows:
2022
£’000
2021
£’000
Profit on ordinary activities before taxation 4,384 41,840
Theoretical tax expense at 0% (2021: 0%) – –
Effects of:
Foreign withholding tax 377 267
Current year revenue tax charge 377 267
7 Dividends
2022
£’000
2021
£’000
Amounts recognised as distributions to equity holders in the year:
Dividends in respect of the year ended 30 June 2021
– Fourth interim dividend of 1.47p (2020: 1.46p) per ordinary share 6,557 6,319
Dividends in respect of the year ended 30 June 2022
– First interim dividend of 1.00p (2021: 1.00p) per ordinary share 4,552 4,359
– Second interim dividend of 1.00p (2021: 1.00p) per ordinary share 4,636 4,383
– Third interim dividend of 1.00p (2021: 1.00p) per ordinary share 4,687 4,392
20,432 19,453
A fourth interim dividend in respect of the year ended 30 June 2022 of 1.48p per ordinary share was paid on 26 August 2022 to Shareholders on
the register on 29 July 2022, having an ex-dividend date of 28 July 2022.
In accordance with IFRS, dividends paid to the Company’s Shareholders are recognised when they become payable on the ex-dividend date,
consequently the fourth interim dividend has not been included as a liability in these Financial Statements and will be recognised in the period in
which it becomes payable.

45
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Notes to the Financial Statements Financial Statements
8 Basic and diluted earnings per Ordinary Share
2022
Revenue
pence
2022
Capital
pence
2022
Total
pence
2021
Revenue
pence
2021
Capital
pence
2021
Total
pence
Basic and diluted earnings/(loss) per ordinary share 4.16p (3.29p) 0.87p 4.18p 5.32p 9.50p
The revenue earnings per ordinary share is based on the net profit after taxation of £19,163,000 (year ended 30 June 2021: £18,302,000) and the
capital return per ordinary share is based on a net capital loss of £15,156,000 (year ended 30 June 2021: net capital gain of £23,271,000). Both the
revenue and capital earnings per ordinary share is based on a weighted average of 460,845,694 (year ended 30 June 2021: 437,519,666) ordinary
shares in issue throughout the year.
Total earnings per ordinary share reflects both revenue earnings and capital returns per ordinary share. The Company has not issued any
instruments that could potentially dilute basic earnings per ordinary share in the future. Therefore, the Company’s basic earnings per ordinary
share is equivalent to its diluted earnings per ordinary share.
There have been no transactions involving the Company’s ordinary shares between 1 July 2022 and 15 September 2022 other than those disclosed
in note 24, which were issued at a premium to the 30 June 2022 NAV.
9 Financial assets designated at fair value through profit or loss
All financial assets are valued at fair value through profit or loss. Gains or losses arising from changes in the fair value of investments are included
in the Statement of Comprehensive Income.
2022
£’000
2021
£’000
Equity shares 49,687 39,090
Fixed income securities
*
213,706 218,377
263,393 257,467
* Fixed income securities include fixed and floating rate securities, convertible securities and preference shares.
2022
£’000
2021
£’000
Opening valuation 257,467 230,741
Purchases at cost 106,064 80,009
Sales proceeds (85,833) (77,428)
Realised gains/(losses) on sales 3,631 (11,575)
Effective interest adjustment 154 232
Unrealised (losses)/gains (18,090) 35,488
Closing valuation 263,393 257,467
Losses on investments
2022
£’000
2021
£’000
Realised gains/(losses)
1
3,631 (11,575)
Unrealised (losses)/gains
2
(18,090) 35,488
Gains/(losses) on investments (14,459) 23,913
1
Realised gains/(losses) on financial assets designated at fair value through profit or loss is made up of gains of £5,680,000 (2021: 2,755,000) and
losses of £2,049,000 (2021: 14,330,000).
2
Unrealised (losses)/gains on financial assets designated at fair value through profit or loss is made up of gains of £14,225,000 (2021: 47,622,000)
and losses of £32,315,000 (2021: 12,133,000).

46
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Notes to the Financial Statements
10 Debtors and Other Receivables
2022
£’000
2021
£’000
Amounts due on new share issuance – 275
Accrued income 3,807 3,302
Prepayments and other debtors 12 8
3,819 3,585
11 Bank Loan
2022
£’000
2021
£’000
Bank loan facility – opening balance 33,000 31,000
Drawdowns – 2,000
Bank loan facility – closing balance 33,000 33,000
The Company had a short term unsecured loan facility of £35 million with Scotiabank Europe Plc (“Scotiabank”) at the start of the year.
On 17 December 2021, the Company entered into a Seventh Amendment Agreement with Scotiabank on the following terms:
• the committed loan facility has been increased to £45 million;
• the Agreement contains an option to increase the facility by a further £5 million – no commitment fees are payable on the £5 million until this
option is exercised.
• the tenor of the facility would be 2 years from the renewal date;
• the interest on the loan would be a margin of 1.45% p.a plus a daily non-cumulative compounded RFR rate.
• the commitment fees would be 0.375% p.a on the daily Available Commitment if the utilised Commitment exceeds 50 per cent of the Commitment
and 0.425% on the daily Available Commitment if the utilised Commitment is less than or equal to 50 per cent of the Commitment.
As at 30 June 2022, an amount of £33 million (30 June 2021: £33 million) was drawn down from the facility.
The following are the covenants for the facility held as at 30 June 2022:
• the borrower shall not permit the adjusted asset coverage to be less than 4 to 1
• the borrower shall not permit the net asset value to be less than £95,000,000 at any time
• the borrower shall maintain an additional adjusted asset coverage of at least 1.5 to 1 at all times
For the year ended 30 June 2022 and up until the date of this report, the Company has complied with all covenants of the loan facility.
The bank loan facility is a financial liability held at amortised cost.
12 Creditors and Other Payables
2022
£’000
2021
£’000
Amounts due to brokers 613 4,980
Interest on bank loan facility 28 16
Other creditors
*
2,570 305
3,211 5,301
* Included in other creditors is an amount of £2,196,000 which relates to an overpayment of dividend by one of the Company’s equity investments,
Aggregated Micro 8PCT 16-171036. The excess dividend was paid back to Aggregated Micro 8PCT 16-171036 on 5 July 2022.

47
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Notes to the Financial Statements Financial Statements
13 Stated Capital Account
Authorised
The authorised share capital of the Company is represented by an unlimited number of ordinary shares of no par value.
Allotted, called up and fully-paid
Number of
ordinary
shares
Amount
received
£’000
Share Issue
Costs
£’000
Share
capital
£’000
Total as at 1 July 2021 445,051,858 203,416
1,000,000 ordinary shares of no par value allotted on 1 July 2021 at 55.30p 1,000,000 553 (4) 549
2,100,000 ordinary shares of no par value allotted on 4 August 2021 at 54.80p 2,100,000 1,151 (9) 1,142
500,000 ordinary shares of no par value allotted on 10 August 2021 at 54.80p 500,000 274 (2) 272
500,000 ordinary shares of no par value allotted on 13 August 2021 at 54.40p 500,000 272 (2) 270
500,000 ordinary shares of no par value allotted on 19 August 2021 at 54.40p 500,000 272 (2) 270
5,500,000 ordinary shares of no par value allotted on 9 September 2021 at 54.90p 5,500,000 3,020 (23) 2,997
1,000,000 ordinary shares of no par value allotted on 1 November 2021 at 55.50p 1,000,000 555 (4) 551
500,000 ordinary shares of no par value allotted on 2 November 2021 at 55.50p 500,000 278 (3) 275
500,000 ordinary shares of no par value allotted on 6 December 2021 at 55.50p 500,000 278 (2) 276
600,000 ordinary shares of no par value allotted on 15 December 2021 at 56.00p 600,000 336 (3) 333
1,750,000 ordinary shares of no par value allotted on 23 December 2021 at 55.90p 1,750,000 978 (7) 971
1,400,000 ordinary shares of no par value allotted on 24 December 2021 at 55.90p 1,400,000 783 (6) 777
2,750,000 ordinary shares of no par value allotted on 29 December 2021 at 55.90p 2,750,000 1,537 (11) 1,526
1,100,000 ordinary shares of no par value allotted on 1 February 2022 at 55.50p 1,100,000 611 (6) 605
900,000 ordinary shares of no par value allotted on 11 February 2022 at 55.30p 900,000 498 (4) 494
850,000 ordinary shares of no par value allotted on 21 February 2022 at 55.60p 850,000 473 (3) 470
650,000 ordinary shares of no par value allotted on 22 February 2022 at 55.40p 650,000 360 (3) 357
650,000 ordinary shares of no par value allotted on 23 February 2022 at 55.40p 650,000 360 (3) 357
500,000 ordinary shares of no par value allotted on 15 March 2022 at 53.40p 500,000 267 (2) 265
400,000 ordinary shares of no par value allotted on 24 March 2022 at 53.60p 400,000 214 (2) 212
2,250,000 ordinary shares of no par value allotted on 4 May 2022 at 54.70p 2,250,000 1,231 (8) 1,223
500,000 ordinary shares of no par value allotted on 16 May 2022 at 53.80p 500,000 269 (2) 267
500,000 ordinary shares of no par value allotted on 27 May 2022 at 53.90p 500,000 267 (2) 265
1,000,000 ordinary shares of no par value allotted on 31 May 2022 at 53.80p 1,000,000 538 (4) 534
600,000 ordinary shares of no par value allotted on 6 June 2022 at 53.80p 600,000 323 (2) 321
600,000 ordinary shares of no par value allotted on 15 June 2022 at 54.00p 600,000 324 (2) 322
1,500,000 ordinary shares of no par value allotted on 21 June 2022 at 53.60p 1,500,000 804 (5) 799
1,000,000 ordinary shares of no par value allotted on 22 June 2022 at 53.80p 1,000,000 537 (4) 533
Total as at 30 June 2022 476,651,858 17,363 (130) 220,649
The balance of shares left in Treasury at the year-end was nil (2021: nil shares).
On 13 July 2022, a block listing facility for 45,600,000 new shares was approved by the UK Listing Authority. This facility is used for the purposes
of satisfying market demand.
Since 30 June 2022, a further 4,350,000 ordinary shares have been issued for consideration of £2,273,000.
Because the criteria in paragraphs 16c and 16d of IAS 32 Financial Instruments: Presentation have been met, the stated capital of the Company
is classified as equity even though there is an annual continuation vote.
Ordinary shares issued are accounted for based on the associated trade date.
14 Reserves
The capital of the Company is managed in accordance with its investment policy, in pursuit of its investment objective, which is detailed on page 13.
On 24 May 2007, the Royal Court of the Island of Jersey confirmed that the amount standing to the credit of the Company’s stated capital account
be reduced by 75% and was used to create the special distributable reserve in the Company’s accounts. This reserve is treated as distributable
profits available to be used for all purposes permitted by Jersey company law including the buying back of ordinary shares, the payment of dividends
and the payment of preliminary expenses.
Capital management policies and procedures
The Board defines capital as financial resources available to the Company. The Company’s capital as at 30 June 2022 comprises its stated capital,
special distributable reserve, capital reserve and revenue reserve at a total of £234,986,000 (2021: £234,178,000).

48
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Notes to the Financial Statements
The Company’s capital management objectives are:
– to ensure that the Company will be able to continue as a going concern; and
– to maximise the capital return to its equity Shareholders through an appropriate balance of equity capital and debt.
The Board normally seeks to limit gearing to 25% of Shareholders’ funds at any given time. The Board monitors and reviews the broad structure
of the Company’s capital on an ongoing basis. This review includes the nature and planned level of gearing, which takes account of the Investment
Manager’s views on the market, and the extent to which revenue in excess of that which is required to be distributed should be retained. The Company
has no externally imposed capital requirements.
The capital of the Company is managed in accordance with its investment policy detailed in the Strategic Review on page 13.
15 Net Asset Value per Ordinary Share
The net asset value per ordinary share and the net asset value attributable to the ordinary shares at the year-end calculated in accordance with
their entitlements in the Articles of Association were as follows:
2022 2021
Net Asset Value (£'000) 234,986 234,178
Net Asset per ordinary share (pence) 49.30p 52.62p
NAV per ordinary share has been calculated based on the share capital in issue as at year end. The issued share capital as at 30 June 2022
comprised of 476,651,858 ordinary shares (30 June 2021: 445,051,858).
16 Financial Instruments
The Company’s financial instruments comprise its investment portfolio, cash balances, bank loan and debtors and creditors that arise directly from
its operations. As an investment company, the Company holds a portfolio of financial assets and financial liabilities in pursuit of its investment
objective. The Company uses flexible borrowings for short term purposes, and to seek to enhance the returns to Shareholders, when considered
appropriate by the Investment Manager.
Financial assets designated at fair value through profit or loss (see note 9) are held at fair value. For listed securities trading actively, fair value is
considered to be equivalent to the most available recent bid price. Where listed securities are not trading actively, independent broker quotes are
referenced to estimate fair value. For unlisted securities, fair value is determined by the Board using valuation techniques based on unobservable
inputs, mainly using broker quotes. The fair value of other receivables, cash and cash equivalents and other payables is represented by their
carrying value in the Statement of Financial Position shown on page 37. These are short term financial assets and liabilities whose carrying value
approximate fair value.
The main risks that the Company faces arising from its financial instruments are:
(i) market price risk, being the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices and comprises currency risk, interest rate risk and other price risk;
(ii) interest rate risk, being the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates;
(iii) foreign currency risk, being the risk that the value of investment holdings, investment purchases, investment sales and income will fluctuate
because of movements in currency exchange rates;
(iv) credit risk, being the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered
into with the Company; and
(v) liquidity risk, being the risk that the bank may demand repayment of the loan and/or that the Company may not be able to liquidate quickly its
investments.
The Company held the following categories of financial instruments as at 30 June 2022 all of which are held at amortised cost, other than financial
assets designated at fair value through profit or loss, which are held at fair value. The Directors are of the opinion that for the financial instruments
held at amortised cost, the carrying value approximates their fair value.

49
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Notes to the Financial Statements Financial Statements
2022
£’000
2021
£’000
Financial assets
Financial assets designated at fair value through profit or loss 263,393 257,467
Cash and cash equivalents 3,985 11,427
Amounts due on new share issuance – 275
Accrued income 3,807 3,302
Financial liabilities
Amount due to brokers 613 4,980
Bank loan 33,000 33,000
Interest on bank loan facility 28 16
Other creditors 2,570 305
17 Market Price Risk
Market price risk (including other price risk) arises mainly from uncertainty about future prices of financial instruments held. It represents the
potential loss the Company might suffer through holding market positions in the face of price movements. To mitigate the risk the Board’s
investment strategy is to select investments for their fundamental value. Stock selection is therefore based on disciplined accounting, market and
sector analysis, with the emphasis on long term investments. An appropriate spread of investments is held in the portfolio in order to reduce both
the statistical risk and the risk arising from factors specific to a country or sector. The Investment Manager actively monitors market prices
throughout the year and reports to the Board, which meets regularly in order to consider investment strategy.
Investment and portfolio performance are discussed in the Investment Manager’s Review and further information on the investment portfolio is
set out on pages 7 to 8. These pages do not form part of the audited Financial Statements.
If the investment portfolio valuation fell 7.5% at 30 June 2022, the impact on the profit or loss and the net asset value would have been negative
£19.8 million (2021: a fall of 7.5% would have impacted the profit or loss and the net asset value by negative £19.4 million). Due to the effect of
gearing, the impact on the net asset value per ordinary share would have been a decrease of 8.4% (2021: decrease of 8.3%). If the investment
portfolio valuation rose by the same amount, the effect would have been equal and opposite. The calculations are based on the portfolio valuation
at the Statement of Financial Position date and is not representative of the period as a whole, and may not be reflective of future market conditions.
The Directors believe 7.5% is a relevant percentage based on average market volatility in recent years.
18 Interest Rate Risk
The Company’s financial assets and liabilities, with the exception of cash and cash equivalents (see below), that are subject to interest rate risk
are detailed below.
2022
£’000
2022
Weighted
average
interest
rate
(%)
2022
Weighted
average
period for
which the
rate is fixed
(years)
2021
£’000
2021
Weighted
average
interest
rate
(%)
2021
Weighted
average
period for
which the
rate is fixed
(years)
Financial assets:
Fixed rate instruments & convertible securities 158,941 7.12 4.31 130,814 7.10 4.31
Floating rate notes 54,531 4.08 n/a 78,591 5.97 n/a
Preference shares 234 11.90 n/a 8,972 11.89 n/a
Financial liabilities:
Bank Loan 33,000 2.64 n/a 33,000 1.43 n/a

50
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Notes to the Financial Statements
Financial assets
Fixed, floating rate and preference share yields, and their prices, are determined by market perception as to the appropriate level of yields given
the economic background. Key determinants include economic growth prospects, inflation, the Government’s fiscal position, short term interest
rates and international market comparisons. The Investment Manager takes all these factors into account when making any investment decisions
as well as considering the financial standing of the potential investee company.
Interest rates on fixed income instruments are fixed at the time of purchase, as the fixed coupon payments are known, as are the final redemption
proceeds. Consequentially, if a fixed income instrument is held until its redemption date, the total return achieved is unaltered from its purchase
date. However, over the life of a fixed income instrument the market price at any given time will depend on the market environment at that time.
Therefore, a fixed income instrument sold before its redemption date is likely to have a different price to its purchase level and a profit or loss may
be incurred.
Interest rates on floating rate instruments vary throughout the life of the instrument based on movements in the applicable underlying base rate.
Consequentially, the total return achieved on these positions changes throughout the life of position. In addition, over the life of the financial
instrument, the market price of such instruments will depend on the market environment at that time. Therefore, a floating rate instrument sold
before its redemption date is likely to have a different price to its purchase level and a profit or loss may be incurred.
Cash and cash equivalents
When the Company retains cash balances they are held in floating rate deposit accounts. As at 30 June 2022, cash and cash equivalents included
cash amount of £4,088,000 held in sterling (2021: £10,335,000) and an immaterial amount of cash overdraft of £103,000 in a range of other currencies
(2021: positive cash balance of £1,092,000). The benchmark rate which determines the interest payments received on sterling interest bearing
cash balances is the UK bank base rate, which was 1.25% at 30 June 2022 (2021: 0.10%).
Financial liabilities
The Company has borrowed in sterling at a variable rate of interest based on the UK bank base rate. If the bank base rate increased by 1.00%, the
impact on the net assets would have been a loss of £330,000 (2021: £330,000). If the bank base rate had decreased by 1.00%, the impact on the
profit or loss would have been equal and opposite. The calculations are based on borrowings as at the respective Statement of Financial Position
dates and are not representative of the year as a whole.
The Directors believe 1.00% is relevant based on observed interest rate adjustments in recent years.
At year end, the Company held bank loans of £33 million from Scotiabank, details of which are contained in note 11 on page 46.
19 Foreign Currency Risk
The Company invests in overseas securities and may hold foreign currency cash balances which give rise to currency risks. It is not the Company’s
policy to hedge this risk on a continuing basis but it may do so from time to time.
Foreign currency exposure at 30 June 2022 was as follows:
2022
Investments
£’000
2022
Cash
£’000
2022
Accrued Income
£’000
2022
Total
£’000
2021
Investments
£’000
2021
Cash
£’000
2021
Accrued Income
£’000
2021
Total
£’000
Euro 31,977 (22) 237 32,192 22,083 817 202 23,102
Australian dollar 191 – – 191 587 2 – 589
US dollar 61,126 (315) 1,418 63,229 56,403 238 1,310 57,951
Norwegian krone 1,064 – 15 1,079 1,454 16 34 1,504
Canadian dollar 314 191 – 505 686 18 4 708
Swedish Krona 4,015 43 38 4,096 1,110 0 5 1,115
99,687 (103) 1,708 101,292 82,323 1,091 1,555 84,969
If the value of sterling had weakened against each of the currencies in the portfolio by 5% (2021: 5%), the impact on the profit or loss and the net
asset value would have been positive £5.3 million (2021: positive £4.4 million).
If the value of sterling had strengthened by the same amount the impact on the profit or loss and the net asset value would have been negative
£4.8 million (2021: negative £3.9 million).
The calculations are based on the portfolio valuation and accrued income balances at the balance sheet date and are not representative of the
period as a whole and may not be reflective of future market conditions.
The Directors believe 5% is relevant based on the average market volatility in exchange rates in recent years.

51
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Notes to the Financial Statements Financial Statements
20 Credit Risk
Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with
the Company. The Investment Manager has in place a monitoring procedure in respect of counterparty risk which is reviewed on an ongoing basis.
The carrying amounts of financial assets best represents the maximum risk exposure at the balance sheet date.
At the reporting date, the Company’s financial assets exposed to credit risk amounted to the following:
2022
£’000
2021
£’000
Fixed income securities
*
213,706 218,377
Cash and cash equivalents 3,985 11,427
Amounts due on new share issuance – 275
Accrued income 3,807 3,302
221,498 233,381
* Fixed income securities include fixed and floating rate securities, convertible securities and preference shares.
Credit risk on fixed income securities and convertible bonds instruments is considered to be part of market price. The credit ratings for the fixed
income securities held by the Company as at 30 June have been listed below:
Rating of fixed income securities
2022
%
2021
%
BB- 5.3 4.0
B+ 4.0 2.7
B 4.0 6.7
B- 1.3 2.7
CC 1.3 –
CCC 2.7 4.0
CCC+ 6.7 4.0
CCC- 1.3 1.3
Not rated 73.4 74.6
100.0 100.0
Source: 2022: S&P, 2021: S&P
The percentage above represents the value of fixed income securities of £213,706,000 (2021: £218,377,000) included in the Statement of Financial
Position which are exposed to credit and counterparty risk by credit rating.
Credit risk arising on transactions with brokers relates to transactions awaiting settlement. Risk relating to unsettled transactions is considered
to be small due to the short settlement period involved and the acceptable credit quality of the brokers used. The Board monitors the quality of
service provided by the brokers used to further mitigate this risk.
The Company’s cash and most of the assets are held by BNP Paribas Securities Services S.C.A. The Company holds a residual cash balance with
HSBC of £11,000 (2021: £11,000). The rating agency Moody’s assigns a rating of A1 to HSBC and A2 to BNPP.
Should the credit quality or the financial position of BNPP or HSBC deteriorate significantly the Investment Manager will move the cash holdings
to another bank.
There were no contingencies or guarantees outstanding at the balance sheet date.

52
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Notes to the Financial Statements
21 Liquidity Risk
Market liquidity risk
The Company’s financial instruments include investments which are not traded in an organised public market and which generally may be illiquid.
As a result, the Company may not be able to liquidate these investments within a short time frame.
The Company’s listed securities are considered to be readily realisable.
Funding liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted and
include contractual interest payments.
30 June 2022
Contractual cash flows
Carrying
amount
£000
0-1 year
£000
1-2 years
£000
Bank loan 33,000 (318) (33,318)
Creditors and other payables 3,211 (3,211) –
36,211 (6,388) (36,177)
30 June 2021
Contractual cash flows
Carrying
amount
£000
0-1 year
£000
1-2 years
£000
Bank loan 33,000 (33,172)
Creditors and other payables 5,301 (5,301) –
38,501 (38,473) –
The table above illustrates the contractual undiscounted cash flows relating to the financial liabilities of the Company.
As disclosed in Note 11, the Company has availed of a secured bank loan facility of £45 million with Scotiabank, out of which, £33 million has been
drawn-down and is outstanding as at 30 June 2022. In addition to this, the Company maintains sufficient cash and readily realisable securities to
pay accounts payable, accrued expenses and any repayment on its bank facility.
The interest payments on the bank loan in the table above reflect market forward interest rates available at the reporting date and these amounts
may change as market interest rates change.
The Company’s liquidity risk is managed on an ongoing basis by the Investment Manager in accordance with policies and procedures in place as
described in the Directors’ Report. The Company’s overall liquidity risks are monitored on a quarterly basis by the Board.
22 Fair Value Hierarchy
International Financial Reporting Standard (“IFRS”) 13 Fair Value Measurement requires an analysis of investments valued at fair value based on
the reliability and significance of information used to measure their fair value. The level is determined by the lowest (that is the least reliable or
independently observable) level of input that is significant to the fair value measurement for the individual investment in its entirety as follows:
• Level 1 – investments quoted in an active market;
• Level 2 – investments whose fair value is based directly on observable current market prices or indirectly being derived from market prices;
• Level 3 – investments whose fair value is determined using a valuation technique based on assumptions that are not supported by observable
current market prices or based on observable market data.
Transfers in and out of the levels are deemed to have occurred at the start of the reporting period.
Investments valued using stock market active prices are disclosed as Level 1 and this is the case for the quoted equity investments that the Company
holds. Securities in Level 2 are priced using evaluated prices from a third party vendor, together with a price comparison made to evaluated
secondary and tertiary third party sources, including broker quotes and benchmarks. As a result, these investments are disclosed as Level 2 -
recognising that the fair values of these investments are not as visible as quoted investments and their higher inherent pricing risk.

53
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Notes to the Financial Statements Financial Statements
Investments included as Level 3 are priced by the investment manager using a valuation technique reviewed by the Board taking into account,
where appropriate, latest dealing prices, broker statements, valuation information and other relevant factors.
Financial assets at fair value
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Fixed income securities
*
234 209,627 3,845 213,706
Equity shares 45,195 4,038 454 49,687
As at 30 June 2022 45,429 213,665 4,299 263,393
Financial assets at fair value
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Fixed income securities
*
8,972 208,783 622 218,377
Equity shares 33,578 5,498 14 39,090
As at 30 June 2021 42,550 214,281 636 257,467
* Fixed income securities include fixed and floating rate securities, convertible securities and preference shares.
Transfers between level 1 and level 2:
SQN Secured Income Fund Plc £353,000 (2021: £1,283,000) and Croma Security Solutions Gro £625,000 (2021: £700,000) were transferred out of
level 1 to level 2 because they were not traded on active markets.
If the market value of the Level 3 investments fell by 5% (2021: 5%), the impact on the profit or loss and the net asset value would have been
negative £0.21 million (2021: negative £0.03 million). If the value of the Level 3 investments rose by the same amount, the effect would have been
equal and opposite.
IFRS 13 requires disclosure, by class of financial instrument, if the effect of changing one or more input to reasonably possible alternative
assumptions would result in a significant change to the fair value measurement. The information used in determination of the fair value of Level
3 investments is chosen with reference to the specific underlying circumstances and position of the investee company. On that basis the Board
believes that the impact of changing one or more of the inputs to reasonably possible alternative assumptions would not change the fair value
significantly. The following shows a reconciliation from the beginning to the end of the year for fair value measurements in Level 3 of the fair value
hierarchy.
Level 3 Financial Assets
2022
£’000
2021
£’000
Opening valuation 636 8,864
Additions 374 –
Sales (88) (942)
Unrealised (losses)/gains (9,954) 9,973
Realised gains/(losses) 198 (10,436)
Transfers out of Level 3 (623) (7,775)
Transfers into Level 3 13,756 952
Closing valuation 4,299 636
Transfers in and out of level 3:
Raven Russia 12% 09-31/12/2059 £nil (2021: £8,757,000) and Raven Property Group Ltd £nil (2021: £455,000) were transferred out of level 1 to
level 3 because they were delisted during the year.
Matalan Finance 9.5% 18-31/01/2024 £3,845,000 (2021: £4,543,000) was transferred out of level 2 to level 3 because of the significant impact of
unobservable inputs in determining its fair value as at the year end.
Brighthouse Fin 9% 18-15/05/2023 £nil (2021: £nil) was transferred out of level 2 to level 3 because it has been categorized as default/zero value
PIK.
REA Holdings plc 7.5% 30/06/2022 £764,000 (2021: £622,000) and Oro Negro Drilli 7.5% 24/01/2023 £41,000 (2021: £nil) were transferred out of
level 3 to level 2 since they have been priced through broker quotes.

54
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Financial Statements Notes to the Financial Statements
Quantitative information of significant unobservable inputs – Level 3
The following tables summarise the significant unobservable inputs the Company used to value its significant investments categorised within
Level 3 as at 30 June 2022 and 30 June 2021:
30 June 2022
Description
Fair value
as at
30 June 2022
£000
Valuation
technique
Significant
Unobservable
inputs Range/input
Weighted
Average
Matalan Finance 9.5% 18-31/01/2024 3,845 Vendor Pricing Unadjusted Broker Quote 1 N/A
R.E.A Holdings Plc CW 15/07/2025 454 Black Scholes model Volatility 57.1 N/A
Total 4,299
30 June 2021
Description
Fair value
as at
30 June 2021
£000
Valuation
technique
Significant
Unobservable
inputs Range/input
Weighted
Average
REA Holdings Plc 7.5% 30/06/2022 622 Vendor Pricing Unadjusted Broker Quote 1 N/A
R.E.A Holdings Plc CW 15/07/2025 14 Black Scholes model Volatility 57.1 N/A
Total 636
The remaining 22 investments (2021: 20) classified as Level 3 have not been included in the above analysis as they have fair value of nil as at
30 June 2022 and 30 June 2021.
23 Transaction with the Investment Manager and Related Parties
All transactions with related parties are carried out at an arm’s length basis.
There are no transactions with the Board other than aggregated remuneration for services as Directors as disclosed in the Directors’ Remuneration
Report on page 30 and as set out in note 4 to the Financial Statements. The beneficial interests of the Directors in the shares of the Company are
disclosed on page 20. There are no outstanding balances to the Directors at the year end.
Details of the fee arrangement with the Investment Manager are disclosed in note 3.
24 Subsequent Events
The Board has evaluated subsequent events for the Company through to 15 September 2022, the date the Financial Statements were available to
be issued, and has concluded that the material events listed below do not require adjustment of the Financial Statements.
Share Issues
Following the year end the Company undertook further issues of shares issuing, in total, an additional 4,350,000 ordinary shares of no par value
for total consideration of £2,273,000. As at the date of this report, the total number of ordinary shares by the Company was 481,001,858.
Dividend declaration
The fourth interim dividend of 1.48 pence per ordinary share was announced on 21 July 2022 and paid on 26 August 2022 to Shareholders on the
register on 29 July 2022, having an ex-dividend date of 28 July 2022.
Block listing facility
On 13 July 2022, a block listing facility for 45,600,000 new shares was approved by the UK Listing Authority. This facility is used for the purposes
of satisfying market demand.

55
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Glossary of Terms and Definitions Supplemental Information and Annual General Meeting
Supplemental Information and Annual General Meeting
Glossary of Terms and Definitions
AIC Code Association of Investment Companies Code of Corporate Governance published in February 2019.
Alternative Performance
Measures (“APMs”)
Alternative performance measures are numerical measures of the Company’s current, historical or future
performance, financial position or cash flows, other than financial measures defined or specified in the
applicable financial framework. The Company’s applicable financial framework includes IFRS and the
AIC SORP.
Company CQS New City High Yield Fund Limited
ESG Environmental, Social and Governance.
FCA Financial Conduct Authority.
FRN Floating Rate Note.
ISAE International Standard for Assurance Engagements.
Net Asset Value or NAV and
NAV per ordinary share
The value of total assets less total liabilities. Liabilities for this purpose include current and long–term
liabilities. To calculate the net asset value per ordinary share, the net asset value divided by the number of
shares in issue.
PIK Payment in kind.
Reference rate (RFR) The SONIA (Sterling Overnight Index Average) reference rate displayed in the relevant screen of any authorised
distributor of that reference rate.
SME Small and medium–sized enterprises.
United Nations PRI United Nations Principles for Responsible Investment

56
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Supplemental Information and Annual General Meeting Alternative Performance Measures
In accordance with European Securities and Markets Authority (“ESMA”) Guidelines on APMs the Board has considered what APMs are included
in the Annual Financial Report and Financial Statements which require further clarification.
The Company uses the following APMs (as described below) to present a measure of profitability which is aligned with the requirements of our
investors and potential investors, to draw out meaningful data around revenues and earnings, and to provide additional information not required
for disclosure under accounting standards:
• Net Asset Value total return
• Ordinary share price total return
• Revenue earnings per ordinary share
• Annual dividends per ordinary share
• Dividend cover
• Revenue reserve per ordinary share
• Dividend yield
• Premium
• Gearing
• Ongoing charges ratio
All APMs relate to past performance. The following tables detail the methodology of the Company’s APMs.
NAV and ordinary share price total return
The return to Shareholders is calculated on a per ordinary share basis by adding dividends paid and declared in the period to the increase or decrease
in the share price (bid) or net asset value. The dividends are assumed to have been reinvested in the form of ordinary shares or net assets.
2022
Annual
dividend per
ordinary
share NAV
Share
price
(bid)
30 June 2021 4.47p 52.62 54.80
30 June 2022 4.48p 49.30 51.20
Capital return (6.31%) (6.57%)
Effect of dividend reinvestment 8.35% 7.78%
Total return 2.04% 1.21%
2021
Annual
dividend per
ordinary
share NAV
Share
price
(bid)
30 June 2020 4.46p 47.52 47.40
30 June 2021 4.47p 52.62 54.80
Capital return 10.73% 15.61%
Effect of dividend reinvestment 10.65% 10.70%
Total return 21.38% 26.31%
Revenue earnings per ordinary share
Revenue earnings (which includes dividends paid out during the year) divided by the weighted average number of ordinary shares in issue during
the financial year.
2022 2021
Revenue earnings a £19,164,000 £18,302,000
Weighted average number of ordinary shares in issue b 460,845,694 437,519,666
Revenue earnings per ordinary share (a/b)
*
100 4.16p 4.18p
Alternative Performance Measures

57
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Alternative Performance Measures Supplemental Information and Annual General Meeting
Annual dividend per ordinary share
The total amount of dividends declared for every issued ordinary share over the Company’s financial year.
Dividend History Rate xd date Record date Payment date
First interim 2022 1.00p 28 October 2021 29 October 2021 30 November 2021
Second interim 2022 1.00p 27 January 2022 28 January 2022 25 February 2022
Third interim 2022 1.00p 28 April 2022 29 April 2022 27 May 2022
Fourth interim 2022 1.48p 28 July 2022 29 July 2022 26 August 2022
Annual dividend per ordinary share 4.48p
First interim 2021 1.00p 22 October 2020 23 October 2020 30 November 2020
Second interim 2021 1.00p 28 January 2021 29 January 2021 26 February 2021
Third interim 2021 1.00p 29 April 2021 30 April 2021 28 May 2021
Fourth interim 2021 1.47p 29 July 2021 30 July 2021 31 August 2021
Annual dividend per ordinary share 4.47p
Dividend cover
Earnings per ordinary share divided by the annual dividend per ordinary share expressed as a ratio.
2022 2021
Earnings per ordinary share a 4.16p 4.18p
Annual dividend per ordinary share b 4.48p 4.47p
Dividend cover a/b 0.93x 0.94x
Revenue reserves per ordinary share
Revenue reserve (which includes dividends paid out during the year) divided by the number of ordinary shares at the balance sheet date.
2022 2021
Revenue reserve a £15,562,000 £16,830,543
Ordinary shares in issue b 476,651,858 445,051,858
Revenue reserves per ordinary share (a/b)
*
100 3.26p 3.78p
Dividend yield
The annual dividend per ordinary share expressed as a percentage of the share price (bid price).
2022 2021
Annual dividend per ordinary share a 4.48p 4.47p
Share price (bid price) b 51.20p 54.80p
Dividend yield a/b 8.75% 8.16%

58
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Supplemental Information and Annual General Meeting Alternative Performance Measures
Premium
The amount by which the market price per ordinary share of an investment company is higher or lower than the net asset value per ordinary
share. The discount or premium is expressed as a percentage of the net asset value per ordinary share.
2022 2021
Share price (bid price) a 51.20p 54.80p
NAV per ordinary share b 49.30p 52.62p
Premium (a-b)/b 3.86% 4.14%
Gearing
The level of borrowing that the Company has undertaken. Represented by total assets (being total assets less current liabilities (excluding
borrowings)) less all cash, expressed as a percentage of Shareholders’ funds (being the Net Asset Value of the Company) minus 100.
2022
£’000
2021
£’000
Total assets 271,197 272,479
Current liabilities (excluding borrowings) (3,211) (5,301)
Cash and cash equivalents (3,985) (11,427)
Total a 264,001 255,751
Net Asset Value b 234,980 234,178
Gearing ((a/b)-1)
*
100 12.35% 9.21%
Ongoing charges ratio
A measure of all operating costs incurred in the reporting period, calculated as a percentage of average net assets in that year. Operating costs
exclude costs suffered within underlying investee funds, costs of buying and selling investments, interest costs, taxation and the costs of buying
back or issuing ordinary shares.
2022
£
2021
£
Average NAV a 239,974,073 214,507,033
Operating expenses per Statement of Comprehensive Income 2,972,763 2,754,644
Ineligible expenses (124,839) (64,535)
Operating expenses b 2,847,924 2,690,109
Ongoing charges figure (calculated using the AIC methodology) b/a 1.19% 1.25%

59
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Explanation of Annual General Meeting resolutions Supplemental Information and Annual General Meeting
Explanation of Annual General Meeting resolutions
Resolution 1: Annual Financial Statements and Directors’ and Auditor’s Reports
The Directors are required to lay before the AGM copies of the Company’s most recent Annual Financial Statements and the Directors’ Report and
Auditor’s Report in respect of the financial year. Shareholders will be given an opportunity at the meeting to ask questions on these items before
being invited to receive them.
Resolution 2: Remuneration Report
As a Jersey domiciled Company, the Directors are not required to present the Company’s remuneration policy to shareholders at the AGM. In line
with best practice, however, the Directors present the Board’s remuneration report as contained in the Company’s Annual Financial Statements
to shareholders for approval.
Resolution 3: Dividend Policy
To approve the Company’s dividend policy as detailed on page 20.
Resolutions 4 to 8: Re-election, and appointment of Directors
In accordance with the recommendations of the AIC Code of Corporate Governance (the “AIC Code”), all Directors submit themselves for annual
re-election at the AGM.
Resolution 9: Re-appointment and remuneration of the Auditor
Shareholders are requested to approve the reappointment of the Company’s Auditor, KPMG Channel Islands Limited, each year and are asked to
give Directors the authority to determine the Auditor’s remuneration. KPMG Channel Islands Limited has expressed its willingness to continue as
Auditor of the Company.
Resolution 10:Continuation Vote
In accordance with the Articles of Association this resolution proposes to continue the Company as an investment company. In the event that the
resolution is not passed the Board would put forward further proposals at an extraordinary general meeting to liquidate or reconstruct the
Company.
Resolution 11: Directors’ Authority to Allot Shares
Under the Articles the Directors are required to seek a disapplication of pre-emption rights from shareholders before issuing new shares on a non
pre-emptive basis. In order to continue with its programme of new share issues, your Board is therefore also proposing that the annual
disapplication of preemption rights authority is given to the Directors so that they may continue to issue shares as and when appropriate is
renewed. Accordingly, Resolution 11 proposes a renewal of the disapplication of the pre-emption rights in respect of 10% of the ordinary shares
in issue, set to expire on the earlier of eighteen months from the date of the resolution or at the conclusion of the Annual General Meeting to be
held in 2023.
New ordinary shares will not be issued at a price less than the prevailing net asset value per ordinary share, after taking into account any costs
incurred by the Company in connection with such issue. Any issues of new ordinary shares will be carried out in accordance with the Listing Rules.
Resolution 12: Directors’ Authority to Buy Back Shares
The current authority of the Company to make purchases of up to approximately 14.99% of its issued capital expires at the end of the Annual
General Meeting and Resolution 12 seeks renewal of such authority until the next Annual General Meeting (or the expiry of fifteen months from
the date of the passing of the resolution, if earlier). The maximum and minimum prices to be paid for shares are set out in Resolution 12. This
power will be exercised only if, in the opinion of the Directors, a repurchase would result in an increase in net asset value per ordinary share and
would be in the best interests of shareholders as a whole. Any shares purchased under this authority will either be held in treasury or cancelled.

60
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Supplemental Information and Annual General Meeting Notice of Annual General Meeting
Notice of Annual General Meeting
Notice is hereby given that the fifteenth Annual General Meeting of
CQS New City High Yield Fund Limited will be held at 11.00 a.m. at
IFC1, The Esplanade, St. Helier, Jersey, JE1 4BP on 1 December 2022
for the following purposes:
To consider and, if thought fit, pass resolutions 1 to 10 as ordinary
resolutions and resolutions 11 and 12 as special resolutions:
Ordinary Business
1. To receive the Annual Financial Statements of the Company
and the reports of the Directors and Auditor for the year ended
30 June 2022.
2. To approve the Directors’ Remuneration Report for the year ended
30 June 2022.
3. To approve the Company’s Dividend Policy.
4. That Caroline Hitch be re-elected as a Director of the Company.
5. That Duncan Baxter be re-elected as a Director of the Company.
6. That Wendy Dorman be re-elected as a Director of the Company.
7. That John Newlands be re-elected as a Director of the Company.
8. That Ian Cadby be re-elected as a Director of the Company.
9. To re-appoint KPMG Channel Islands Limited as Independent
Auditor and that the Directors be authorised to determine
their remuneration.
10. That, pursuant to Article 164 of the Company’s Articles of Association,
the Company shall continue as an investment Company until the
conclusion of the next Annual General Meeting of the Company.
Special Business
11. That, the Company be authorised to issue equity securities for cash,
including by way of a sale of ordinary shares held by the Company
as treasury shares, in such amount as represents up to 10% of the
Company’s issued share capital as at the date of the passing of this
resolution, provided that such authorisation shall expire (unless
and to the extent previously revoked, varied or renewed by the
Company in general meeting by Ordinary Resolution) at the earlier
of the conclusion of the annual general meeting of the Company to
be held in 2022 or eighteen months from the date of this resolution
but so that this power shall enable the Company to make offers or
agreements before such expiry which would or might require
equity securities to be issued after such expiry and the directors of
the Company may issue equity securities in pursuance of any such
offer or agreement as if such expiry had not occurred.
12. That, pursuant to Article 57 of the Companies (Jersey) Law 1991,
the Company be generally and unconditionally authorised to make
one or more market purchases of ordinary shares of no par value
in the capital of the Company (ordinary shares) provided that:
(i) the maximum aggregate number of ordinary shares
authorised to be purchased shall be equal to 14.99% of the
total issued share capital of the Company on the date at which
the resolution is passed;
(ii) the minimum price which may be paid for an ordinary share is
1p;
(iii) the maximum price which may be paid for an ordinary share is
an amount equal to the higher of:
(a) 105% of the average of the middle market quotations for
an ordinary share as derived from the Daily Official List of
the London Stock Exchange for the five business days
immediately preceding the day on which the ordinary
share is purchased; and
(b) the higher of (1) the price of the last independent trade in
ordinary shares and (2) the highest current independent
bid for ordinary shares on the London Stock Exchange’s
Main Market;
(iv) any ordinary shares to be purchased may be cancelled or held
as treasury shares in accordance with the Companies (Jersey)
Law, 1991, provided that the Company shall not hold as
treasury shares more than 10% of the aggregate number of
ordinary shares in issue at any one time;
(v) this authority expires at the conclusion of the next Annual
General Meeting of the Company after the passing of this
resolution or fifteen months from the date of the passing of
this resolution, whichever is earlier;
(vi) the Company may make a contract to purchase ordinary
shares under this authority before the expiry of the authority
which will or may be executed wholly or partly after the expiry
of the authority, and may make a purchase of ordinary shares
in pursuance of any such contract; and
(vii) the Directors provide a statement of solvency in accordance
with Articles 55 and 57 of the Companies (Jersey) Law, 1991.
The Company requests that any shareholders wishing to attend the
Annual General Meeting to advise the Company Secretary by email or
in writing as detailed in note 3 below.
By Order of the Board
BNP Paribas Securities Services
Company Secretary
15 September 2022

61
ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Notice of Annual General Meeting Supplemental Information and Annual General Meeting
Notes:
1. Information about this meeting is available from the Company’s
website; www.ncim.co.uk
2. As a member who is entitled to attend and vote at this meeting you
are entitled to appoint one or more proxies to exercise all or any of
your rights to attend, speak and vote on your behalf. Such a proxy
need not also be a member of the Company. You may appoint more
than one proxy provided each proxy is appointed to exercise rights
attached to different shares. You may not appoint more than one
proxy to exercise the rights attached to any one share.
3. Any shareholder wishing to attend the Annual General Meeting
can advise the company of their intention to do so by writing to the
Compnay Secretary at BNP Paribas, IFC 1, The Esplanade,
St Helier, Jersey, JE1 4BP or by email at jersey.bp2s.ncyf.cosec@
bnpparibas.com, any attendance at the meeting is subject to the
local COVID-19 restrictions in place.
4. A form of proxy is enclosed for use at the meeting. To be valid,
the proxy card and any power of attorney or other authority, if any,
under which it is signed, or a certified copy thereof must be lodged
with the Company’s registrar, Computershare Investor Services
(Jersey) Limited, c/o The Pavilions, Bridgewater Road, Bristol
BS99 6ZY at least 48 hours before the meeting.
5. Completion of the proxy card will not prevent a shareholder from
attending the meeting and voting in person.
6. Pursuant to Article 40 of the Companies (Uncertificated Securities)
(Jersey) Order 1999, the Company has specified that only those
shareholders registered on the register of members of the
Company as at 6.00 pm on 28 November 2022, or in the event that
the meeting is adjourned, on the register of members 48 hours
before the time of the meeting, shall be entitled to attend and vote
at the meeting in respect of the number of shares registered in
their name at that relevant time. Changes to entries on the register
of members after 6.00 pm on 28 November 2022, or in the event
that the meeting is adjourned to a later time, on the register of
members 48 hours before the time of any adjourned meeting,
shall be disregarded in determining the rights of any person to
attend and vote at the meeting.
Electronic receipt of proxies
7. To appoint one or more proxies or give an instruction to a proxy
(whether previously appointed or otherwise) via the CREST system,
CREST messages must be received by the Company’s agent
(ID number 3RA50) no later than the 30 November 2022 at 11am.
For this purpose, the time of receipt will be taken to be the time (as
determined by the timestamp generated by the CREST system)
from which the issuer’s agent is able to retrieve the message.
The Company may treat as invalid a proxy appointment sent by
CREST in the circumstances set out in Regulation 35(5)(a) of the
Uncertificated Securities Regulations 2001 or the relevant
provisions of the Companies (Uncertificated Securities) (Jersey)
Order 1999. Instructions on how to vote through CREST can be
found on the website www.euroclear.com

62
CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Supplemental Information and Annual General Meeting Report of the Investment Manager
Report of the Investment Manager relating to Matters under the
Alternative Investment Fund Managers’ Directive (unaudited)
Risk management systems
The Company’s Annual Report and Pre-investment Disclosure Document sets out the risks to which the Company is exposed. The UK Investment
Manager employs risk management disciplines which monitor the Company’s portfolio and to quantify and manage the associated market and
other risks. A permanent independent department has been established by the UK Investment Manager to perform the risk management function.
The risk management and performance analysis team (“RMPA”) is led by the Chief Risk Officer and is functionally and hierarchically separate from
the operating units of the portfolio managers of the Company.
RMPA is a dedicated control function over the operating units of the Investment Manager and is not involved in the performance activities of the
Company. RMPA has designed, documented and implemented effective risk management policies, processes and procedures in order to identify,
quantify, analyse, monitor, report on and manage all material risks relevant to the Company’s investment strategy. The systems include third party
vendor applications such as Tradar, Sungard Front Arena and MSCI Risk Metrics, complemented with a number of proprietary applications.
Material changes to information required to be made available to investors of the Company
No material changes.
Assets of the Company subject to special arrangements arising from their illiquid nature
There are no assets of the Company which are subject to special arrangements arising from their illiquid nature.
Remuneration
The AIFM has adopted a remuneration policy which meets the requirements of the Directive and has been in place for the current financial year
of the Company. The variable remuneration period of the AIFM ended on 31 December 2021.
The remuneration process is overseen by the remuneration committee (comprised predominately of independent non-executive parties). An
internal working group encompassing senior management is responsible for gathering relevant information (both quantitative and qualitative) to
evaluate the performance (both short and long term) of individuals, teams and the AIFM as a whole, against external market benchmarks and to
utilise this to develop proposals for fixed and variable remuneration for all staff. The remuneration committee receives these proposals and the
supporting information and is responsible for independently reviewing and scrutinising the proposals and evidence provided in line with the
AIFM’s stated objectives and developing its final recommendations for delivery to the governing body of the AIFM and other entities associated
with the AIFM.
The variable remuneration of all staff in excess of a threshold, which includes those individuals categorised as remuneration code staff (“code
staff”), is subject to the following:
• deferred payment of up to 50% of the variable remuneration for a period of 3 years,
• deferred remuneration is linked to funds managed by the AIFM,
• the breaching of certain covenants may lead to forfeiture of deferred remuneration, and
• a claw-back provision of deferred remuneration in certain circumstances including future performance issues by the individuals.
The below information provides the total remuneration paid by the AIFM (and any delegates) for the year ending, December 31, 2021 This has been
presented in line with the information available to the Company. There is no allocation made by the AIFM to each AIF and as such the disclosure
reflects the remuneration paid to individuals who are partly or fully involved in the AIF, as well as staff of any delegate to which the firm has
delegated portfolio management and/or risk management responsibilities in relation to the AIF.
Of the total AIFM remuneration paid of $92.9m for the year ending December 31, 2021 to 248 individuals (full time equivalent), $34.5m has been
paid as fixed remuneration determined based upon the FCA guidance with the remainder being paid as variable remuneration.
The AIFM has assessed the members of staff whom it determines to be code staff in line with AIFMD as reflected in SYSC 19b.3.4R. Senior
management and staff engaged in the control functions are identified based upon their roles and responsibilities within the AIFM and the
delegates. With respect to investment professionals, in determining whether such staff are code staff, due consideration is taken of the allocated
capital and trading limits that apply to the funds managed and whether the individuals report into and seek consent for investment decisions from
others who are themselves code staff. There are 16.6 individuals (full time equivalent) who meet this definition and these individuals have
collectively been compensated $45.1m.
Not all individuals are directly remunerated by the AIFM due to the structure of the AIFM entity, however in the interests of meeting the underlying
requirement of this disclosure all staff involved have been assessed as if directly remunerated by the AIFM.

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ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Report of the Investment Manager Supplemental Information and Annual General Meeting
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CQS NEW CITY HIGH YIELD FUND LIMITED ANNUAL REPORT 30 JUNE 2022
Supplemental Information and Annual General Meeting Report of the Investment Manager
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ANNUAL REPORT 30 JUNE 2022 CQS NEW CITY HIGH YIELD FUND LIMITED
Corporate Information Supplemental Information and Annual General Meeting
Corporate Information
Registered Number
95691
Registered Office
CQS New City High Yield Fund Limited
IFC1
The Esplanade
St Helier
Jersey JE1 4BP
Directors
Caroline Hitch (Chair)
Duncan A H Baxter
Ian Cadby
Wendy Dorman
John E Newlands
Investment Manager
CQS (UK) LLP
1 Strand
London
WC2N 5HR
AIFM
CQS (UK) LLP
1 Strand
London
WC2N 5HR
Company Secretary and Administrator
Custodian Bankers and Depositary
BNP Paribas Securities Services S.C.A. Jersey Branch
IFC1
The Esplanade
St Helier
Jersey JE1 4BP
Registrars
Computershare Investor Services (Jersey) Limited
13 Castle Street
St. Helier, Jersey JE1 1ES
Channel Islands
Financial Adviser and Corporate Broker
Singer Capital Markets
1 Bartholomew Lane
London
EC2N 2AX
Independent Auditor
KPMG Channel Islands Limited
37 Esplanade
St Helier
Jersey JE4 8WQ
Jersey Legal Advisors
Ogier
Ogier House, The Esplanade
St. Helier
Jersey, JE4 9WG
Channel Islands
UK Legal Advisors
Dentons LLP
One Fleet Place,
London EC4M 7WS
Website
www.ncim.co.uk
ISIN
JE 00B1LZS514
Shareholder Information
Net Asset Value/Share Price
The net asset value of the Company’s ordinary shares may be
obtained by contacting CQS on 0207 201 6900 or by email at
clientservice@cqsm.com or alternatively by visiting the Company’s
web site at www.ncim.co.uk.

CQS
NEW CITY
HIGH YIELD FUND LIMITED