Investment Objectives
The objective of the Sub-Fund is to endeavour to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of debt securities and other fixed-income or interest bearing securities.
Investor Profile
A typical investor in the Emerging Market Bond Fund would be one who is seeking to gain exposure to the Emerging Bond Market via corporate and/or sovereign bonds whilst seeking to accumulate wealth and save over time in a product that re-invests coupons received on a gross basis. Furthermore, investors in the Emerging Market Bond Fund are those with a medium to high tolerance to risk and who are planning to hold on to their investment for the medium-to-long term so as to benefit from the compound interest effect whilst also participating in the interest rate cycle as well as the investment cycle commensurate with an investment in Emerging Markets.
Fund Rules
The Investment Manager shall invest primarily but not solely in a diversified portfolio of Emerging Market Corporate fixed income securities and Emerging Market Government fixed income securities with maturities of 10 years or less, rated at the time of investment “Baa1” to “Caa1” by Moody’s or “BBB+” to “CCC+” by S&P, or in bonds determined to be of comparable quality by the Investment Manager. The Investment Manager may also invest up to 10% of the Net Assets of the Sub-Fund in unrated fixed income securities.
- Minimum Credit Rating CCC+ (or equivalent)
- Up to 10% in Non-Rated Bonds
- Average Credit Quality of B- (or equivalent)
- Emerging Market Issuers as per MSCI Emerging and Frontier
- Up to 15% in Emerging Market Equities
- Use of FDIs for hedging purposes only
- No limit on exposure to CIS
- Up to 30% in Non Emerging Market Issuers
Key Facts & Performance
Fund Manager
Jordan Portelli
Jordan is an Investment Manager at Calamatta Cuschieri and is the Head of the Fixed Income desk. Jordan has over 10 years’ experience in High Yield debt. He is a member on a number of Investment Committees and is also a member on the House View Committee of Calamatta Cuschieri. He obtained a Diploma in Business and Management from Cambridge College in the U.K. He also obtained his BSc (Hons) in Economics from the London School of Economics.
PRICE (EUR)
€
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
RETURN (SINCE INCEPTION)*
-7.77%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000002124
Bloomberg Ticker: CCEMBFC MV
Entry Charge: up to 2.50%
Total Expense Ratio: 2.10%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 3.89
Distribution: N/A
Total Net Assets: $10.6 m
Month and NAV in EUR: 93.52
Number of Holdings: 38
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.2
Performance To Date (EUR)
Top 10 Holdings
4.2%
3.9%
3.9%
3.9%
3.9%
3.8%
3.7%
3.7%
3.7%
3.6%
Major Sector Breakdown*
Consumer Staples
22.4%
Financials
18.1%
Communications
12.8%
Consumer Discretionary
11.2%
Energy
10.0%
Government
7.7%
Maturity Buckets*
Credit Ratings*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
13.8%
13.0%
11.4%
9.3%
9.1%
6.9%
5.8%
5.5%
4.4%
3.9%
Asset Allocation
Performance History (EUR)*
YTD
2.73%
2018
-9.09%
2017*
-1.24%
1-month
2.73%
3-month
2.39%
Inception*
-7.77%
Currency Allocation
Interested in this product?
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Investment Objectives
The objective of the Sub-Fund is to endeavour to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of debt securities and other fixed-income or interest bearing securities.
-
Investor profile
A typical investor in the Emerging Market Bond Fund would be one who is seeking to gain exposure to the Emerging Bond Market via corporate and/or sovereign bonds whilst seeking to accumulate wealth and save over time in a product that re-invests coupons received on a gross basis. Furthermore, investors in the Emerging Market Bond Fund are those with a medium to high tolerance to risk and who are planning to hold on to their investment for the medium-to-long term so as to benefit from the compound interest effect whilst also participating in the interest rate cycle as well as the investment cycle commensurate with an investment in Emerging Markets.
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Fund Rules
The Investment Manager of the CC High Income Bond Funds – EUR and USD has the duty to ensure that the underlying investments of the funds are well diversified. According to the prospectus, the investment manager has to abide by a number of investment restrictions to safeguard the value of the assets
- Minimum Credit Rating CCC+ (or equivalent)
- Up to 10% in Non-Rated Bonds
- Average Credit Quality of B- (or equivalent)
- Emerging Market Issuers as per MSCI Emerging and Frontier
- Up to 15% in Emerging Market Equities
- Use of FDIs for hedging purposes only
- No limit on exposure to CIS
- Up to 30% in Non Emerging Market Issuers
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Commentary
December 2018
Emerging Market (EM) economies throughout the year were conditioned namely by the geopolitical tensions vis-à-vis the trade war; tensions which pushed investors to re-allocate their assets into safer heavens. EM currencies in 2018 were the primarily driving force of risks within the region as investors opted for safer heavens such as the Japanese Yen and the U.S. dollar. The latter continued to put pressure on EM, which were harshly beaten to levels that weren’t seen since 2013. In January, due to a weakening dollar, which was conditioned by the Fed’s U-turn, EM saw a boost in bond prices and keep outperforming other asset classes. Should no political risk or rather specific risk emerge again, EMs should continue at this pace and credit stories, which were hit harsh in 2018, should outperform other regions. That being said, weak data keeps coming out of China – lower than expected inflation and weak manufacturing data for the second time in the same month. This reflects not only the impact of the Trade War but more so a domestic economic slowdown. Other EMs, specifically Turkey, Brazil, Indonesia and Russia have seen a magnified uplift in performance.
The Investment Managers (IMs) believe that emerging market valuations are attractive and the portfolio is well positioned to benefit from a trade war solution. Indeed, the portfolio benefited from the refinancing of Alam Sutera, the Indonesian property developer, which pushed the sector higher. In addition, other regions such as Brazil and Turkey continued to move higher. The Manager still believes that there is value within the region and in this regard cash will be reduced accordingly in line with opportunities.
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Key facts & performance
Fund Manager
Jordan Portelli
Jordan is an Investment Manager at Calamatta Cuschieri and is the Head of the Fixed Income desk. Jordan has over 10 years’ experience in High Yield debt. He is a member on a number of Investment Committees and is also a member on the House View Committee of Calamatta Cuschieri. He obtained a Diploma in Business and Management from Cambridge College in the U.K. He also obtained his BSc (Hons) in Economics from the London School of Economics.
PRICE (EUR)
€
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
RETURN (SINCE INCEPTION)*
-7.77%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000002124
Bloomberg Ticker: CCEMBFC MV
Entry Charge: up to 2.50%
Total Expense Ratio: 2.10%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 3.89
Distribution: N/A
Total Net Assets: $10.6 m
Month and NAV in EUR: 93.52
Number of Holdings: 38
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.2
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
5.299% Petrobras 20254.2%
6.625% Tupy Overseas 20243.9%
7.25% JBS Investments 20243.9%
6.90% Yestar Healthcare 20213.9%
6.50% Global Ports 20233.9%
4.95% Gazprom Capital 20223.8%
6.375% Banco Santander 21673.7%
4.95% Veon Holdings 20243.7%
8.125% Global Liman 20213.7%
6.50% Minerva 20263.6%
Top Holdings by Country*
Brazil13.8%
China13.0%
Russia11.4%
Malta (incl. cash)9.3%
Turkey9.1%
Indonesia6.9%
Germany5.8%
Mexico5.5%
Spain4.4%
United States3.9%
*including exposures to CIS, using look-throughMajor Sector Breakdown*
Consumer Staples
22.4%
Financials
18.1%
Communications
12.8%
Consumer Discretionary
11.2%
Energy
10.0%
Government
7.7%
*excluding exposures to CISAsset Allocation
Cash 9.4%Bonds (incl. ETFs) 88.5%Equities (incl. ETFs) 2.1%Maturity Buckets*
75.1%0-5 Years11.4%5-10 Years2.0%10 Years+*based on the Next Call DatePerformance History (EUR)*
YTD
2.73%
2018
-9.09%
2017*
-1.24%
1-month
2.73%
3-month
2.39%
Inception*
-7.77%
*The EUR Accumulator Share Class (Class C) was launched on 03 November 2017Currency Allocation
USD 92.9%Euro 7.1%TRY 0.0% -
Downloads
Commentary
December 2018
Emerging Market (EM) economies throughout the year were conditioned namely by the geopolitical tensions vis-à-vis the trade war; tensions which pushed investors to re-allocate their assets into safer heavens. EM currencies in 2018 were the primarily driving force of risks within the region as investors opted for safer heavens such as the Japanese Yen and the U.S. dollar. The latter continued to put pressure on EM, which were harshly beaten to levels that weren’t seen since 2013. In January, due to a weakening dollar, which was conditioned by the Fed’s U-turn, EM saw a boost in bond prices and keep outperforming other asset classes. Should no political risk or rather specific risk emerge again, EMs should continue at this pace and credit stories, which were hit harsh in 2018, should outperform other regions. That being said, weak data keeps coming out of China – lower than expected inflation and weak manufacturing data for the second time in the same month. This reflects not only the impact of the Trade War but more so a domestic economic slowdown. Other EMs, specifically Turkey, Brazil, Indonesia and Russia have seen a magnified uplift in performance.
The Investment Managers (IMs) believe that emerging market valuations are attractive and the portfolio is well positioned to benefit from a trade war solution. Indeed, the portfolio benefited from the refinancing of Alam Sutera, the Indonesian property developer, which pushed the sector higher. In addition, other regions such as Brazil and Turkey continued to move higher. The Manager still believes that there is value within the region and in this regard cash will be reduced accordingly in line with opportunities.