NCYF performed well in 2025 (+8.3% TR). Ian ‘Franco’ Francis (the portfolio manager) remains comfortable about the fund’s prospects despite weak UK macro prospects. He highlights that the portfolio yield (c.9.3%) and the niche nature of many of the positions combines to provide a high degree of insulation from the wider market environment. Over the last three years, NCYF has delivered a 32.2% NAV TR versus our peers’ average of c28.5%, maintained its progressive dividend and its status as an AIC dividend hero. NCYF currently trades on a 5.9% premium to NAV (6.4%, 12m average) and the wider sector. Given its superior performance, dividend yield (8.8%) and disciplined approach to raising equity (£42.9m in 2025), we view the premium as sustainable.
