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 CC 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 CC 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

Commentary

May 2019

May proved to be a negative month for risky assets, the first month so far this year, and Emerging markets were no exception to that. As liquidity dried up, Global Emerging Markets were down 0.15 per cent (much lower that the negative returns European HY and U.S HY faced).

The on-going Trade War uncertainties created higher volatility in the markets once again, especially due to the threatening of higher tariffs. That being said, emerging markets were more resilient to these market conditions. The reason being that China’s economy has seen boosted economic figures unlike the U.S. Moreover, Indonesia, Turkey and Brazil performed relatively well in the midst of the volatility.

That being said, the euphoria seen in the first three months of the year seemingly dissipated in May. The depreciation in the US Dollar during the month had its fair impact on spreads. That said EM still traded relatively well when compared to its peers.

With markets now more than ever expecting a long pause in central bank activity, or even possibly rate cuts at best, this would possibly be seen as a catalyst for EM currencies. In fact, this is one of the reasons why EM, in the month of May, was more resilient. This bodes well for EM economies and credit as economic conditions are still favourable for EM corporate debt.

The Investment Managers (IMs) believe that emerging market valuations are attractive amidst ongoing uncertainties as they showed the most resilience. That being said, should a trade war agreement be reached, the portfolio is well positioned to benefit from the higher beta exposures, namely Indonesia and China.

The Manager still believes EM offers value based on fundamentals. That said, market headwinds might influence valuations negatively in the short-term.

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)*

-6.62%

*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000002124
Bloomberg Ticker: CCEMBFC MV
Entry Charge: up to 2.50%
Total Expense Ratio: 2.03%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 3.89
Distribution: N/A
Total Net Assets: $10.9 m
Month end NAV in EUR: 98.86
Number of Holdings: 38
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 37.7

Performance To Date (EUR)

Top 10 Holdings

5.299% Petrobras 2025
4.3%
6.90% Yestar Healthcare 2021
3.9%
6.50% Global Ports 2023
3.8%
6.625% Tupy Overseas 2024
3.8%
4.95% Gazprom Capital 2022
3.8%
7.25% JBS 2024
3.8%
4.95% Veon Holdings 2024
3.7%
6.50% Minerva 2026
3.6%
8.125% Global Liman 2021
3.6%
6.95% Moderland 2024
3.4%

Major Sector Breakdown*

Consumer Staples
22.0%
Asset 7
Communications
14.4%
Financials
11.4%
Consumer Discretionary
11.2%
Energy
10.1%
Government
9.3%
*excluding exposures to CIS

Maturity Buckets*

72.7%
0-5 Years
9.3%
5-10 Years
3.8%
10 Years+
*based on the Next Call Date

Credit Ratings*

Average Credit Rating: BB
*excluding exposures to CIS

Risk & Reward Profile

1
2
3
4
5
6
7
Lower Risk

Potentialy Lower Reward

Higher Risk

Potentialy Higher Reward

Top Holdings by Country*

Brazil
15.5%
China
13.0%
Malta (incl. cash)
12.2%
Russia
11.3%
Turkey
8.6%
Indonesia
6.9%
Mexico
5.5%
United States
3.8%
Netherlands
3.7%
Germany
3.0%
*including exposures to CIS, using look-through

Asset Allocation

Cash 12.2%
Bonds (incl. ETFs) 85.8%
Equities (incl. ETFs) 2.0%

Performance History (EUR)*

YTD

4.01%

2018

-9.09%

2017*

-1.24%

1-month

-0.60%

3-month

0.55%

Inception*

-6.62%

*The EUR Accumulator Share Class (Class C) was launched on 03 November 2017

Currency Allocation

USD 93.9%
Euro 6.1%
TRY 0.0%
Data for risk statistics is not available for this fund.

Interested in this product?

  • 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 CC 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 CC 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.

    Investor Profile Icon
  • 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
  • Commentary

    May 2019

    May proved to be a negative month for risky assets, the first month so far this year, and Emerging markets were no exception to that. As liquidity dried up, Global Emerging Markets were down 0.15 per cent (much lower that the negative returns European HY and U.S HY faced).

    The on-going Trade War uncertainties created higher volatility in the markets once again, especially due to the threatening of higher tariffs. That being said, emerging markets were more resilient to these market conditions. The reason being that China’s economy has seen boosted economic figures unlike the U.S. Moreover, Indonesia, Turkey and Brazil performed relatively well in the midst of the volatility.

    That being said, the euphoria seen in the first three months of the year seemingly dissipated in May. The depreciation in the US Dollar during the month had its fair impact on spreads. That said EM still traded relatively well when compared to its peers.

    With markets now more than ever expecting a long pause in central bank activity, or even possibly rate cuts at best, this would possibly be seen as a catalyst for EM currencies. In fact, this is one of the reasons why EM, in the month of May, was more resilient. This bodes well for EM economies and credit as economic conditions are still favourable for EM corporate debt.

    The Investment Managers (IMs) believe that emerging market valuations are attractive amidst ongoing uncertainties as they showed the most resilience. That being said, should a trade war agreement be reached, the portfolio is well positioned to benefit from the higher beta exposures, namely Indonesia and China.

    The Manager still believes EM offers value based on fundamentals. That said, market headwinds might influence valuations negatively in the short-term.

  • 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)*

    -6.62%

    *View Performance History below
    Inception Date: 02 Nov 2017
    ISIN: MT7000002124
    Bloomberg Ticker: CCEMBFC MV
    Entry Charge: up to 2.50%
    Total Expense Ratio: 2.03%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 3.89
    Distribution: N/A
    Total Net Assets: $10.9 m
    Month end NAV in EUR: 98.86
    Number of Holdings: 38
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 37.7

    Performance To Date (EUR)

    Risk & Reward Profile

    1
    2
    3
    4
    5
    6
    7
    Lower Risk

    Potentialy Lower Reward

    Higher Risk

    Potentialy Higher Reward

    Top 10 Holdings

    5.299% Petrobras 2025
    4.3%
    6.90% Yestar Healthcare 2021
    3.9%
    6.50% Global Ports 2023
    3.8%
    6.625% Tupy Overseas 2024
    3.8%
    4.95% Gazprom Capital 2022
    3.8%
    7.25% JBS 2024
    3.8%
    4.95% Veon Holdings 2024
    3.7%
    6.50% Minerva 2026
    3.6%
    8.125% Global Liman 2021
    3.6%
    6.95% Moderland 2024
    3.4%

    Top Holdings by Country*

    Brazil
    15.5%
    China
    13.0%
    Malta (incl. cash)
    12.2%
    Russia
    11.3%
    Turkey
    8.6%
    Indonesia
    6.9%
    Mexico
    5.5%
    United States
    3.8%
    Netherlands
    3.7%
    Germany
    3.0%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Consumer Staples
    22.0%
    Asset 7
    Communications
    14.4%
    Financials
    11.4%
    Consumer Discretionary
    11.2%
    Energy
    10.1%
    Government
    9.3%
    *excluding exposures to CIS

    Asset Allocation

    Cash 12.2%
    Bonds (incl. ETFs) 85.8%
    Equities (incl. ETFs) 2.0%

    Maturity Buckets*

    72.7%
    0-5 Years
    9.3%
    5-10 Years
    3.8%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    4.01%

    2018

    -9.09%

    2017*

    -1.24%

    1-month

    -0.60%

    3-month

    0.55%

    Inception*

    -6.62%

    *The EUR Accumulator Share Class (Class C) was launched on 03 November 2017

    Credit Ratings*

    Average Credit Rating: BB
    *excluding exposures to CIS

    Currency Allocation

    USD 93.9%
    Euro 6.1%
    TRY 0.0%
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