New City Energy

Specialist energy sector play with yield

10 March 2015

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

Focusing on shale oil and gas

4 June 2014

New City Energy (NCE) provides exposure to the energy sector with a specific focus on unconventional shale oil and gas where the managers see the most attractive investment opportunities. The portfolio is focused on cash-generative companies with potentially undervalued shale assets where the managers see scope for technological advances to improve production capacity. Currency moves and non-shale investments weighed on performance in 2012 and 2013. By contrast, 2014 has seen a positive start benefiting from rising oil and gas prices and abating currency headwinds. Underpinned by fixed-income investments, dividends are paid quarterly and NCE’s 5.5% yield ranks it at the top of the peer group. MORE »

Committed to energy sector growth

13 December 2012

New City Energy (NCE) is a fund that invests globally in energy-related equities and fixed-interest securities. It provides a combination of growth and yield but primarily targets growth from the energy sector. It focuses on small- and mid-cap companies where the manager sees the strongest longer-term growth potential. Circa 67% of gross assets are in invested in oil and gas equities, 23.0% in fixed-income securities (oil and gas related), with uranium and coal largely making up the balance. NCE pays quarterly dividends and increased its total dividend for the year to 30 September 2012 by 7.27% to 1.77p. NCE has further capacity to increase the dividend and the board has indicated that it remains committed to a progressive dividend policy. Energy is fundamental to economic growth and, against a backdrop of a diminishing supply of oil and growing energy demand, particularly from emerging economies, the manager remains very bullish with regard to the long-term outlook for oil and energy in general. MORE »