NCYF performed well in 2024 (+12.8% TR). Ian ‘Franco’ Francis (the portfolio manager) remains comfortable about the fund prospects despite weak UK macro prospects highlighting that the portfolio yield (c9.6%) and the niche nature of many of the positions provides a high degree of insulation from the wider market environment. Over the last three years, NCYF has delivered a 22% NAV TR versus a sector average of c10.6%, maintained its progressive dividend and its status as an AIC dividend hero. NCYF currently trades on a 5.3% premium to NAV (5.9%, 12m average) and the wider sector. Given its superior performance, dividend yield (8.8%) and disciplined approach to raising equity (£22.5m in 2024), we view the premium as warranted.
