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 2020

Risk assets have continued to rally throughout the month of May as the gradual re-opening of economies increased optimism for a V-shaped economic recovery from the virus induced turmoil. The strength of the asset price recovery continues to be buoyed by ongoing strong government policy and central bank interventions. That said, in our view, the propagation of the shock to financial markets due to the virus outbreak remains directly linked to the evolution of the virus and the dynamics of the containment measures.

Credit markets have seen healthier liquidity in secondary markets, as continued central bank support measures played their part coupled with stronger participation from market participants. The primary market increased pace throughout the month of May following a standstill month in March, as many corporates were comforted by central banks intervention which kept volatility low, while appetite in the primary re-emerged.

Emerging markets were also conditioned by the oil price collapse earlier in March, partly caused by the ongoing drop in demand caused by the economic contraction, in addition to supply cut disruptions brought about by OPEC members From the data front in the emerging market world, China reported mixed results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions in February. China’s Manufacturing PMI declined to 50.6 in May from April’s 50.8.

From Latin America, published economic data in Brazil marked a slight improvement in activity. Notably, Manufacturing PMIs increased to 38.3 from 36.0 in April and similarly increasing to 27.6 from 27.4 for services, highlighting a slight increase in activity, however not to the extent of other continents as the country continues to struggle with the spread of the virus. Together with other countries such as Mexico, Brazil continue to report increasing daily deaths, therefore are considered further back in the cycle, behind their peak.

In the month of May, the CC EMBF continued its resurgence, up 3.86% as credit spreads tightened in line with the wider risk-on approach by market participants. Going forward, the Manager will continue to assess the EM space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s easing stance, primarily by cutting interest rates.

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)*

-14.74%

*View Performance History below
Inception Date: 03 Nov 2017
ISIN: MT7000002124
Bloomberg Ticker: CCEMBFC MV
Entry Charge: up to 2.50%
Total Expense Ratio: 2.17%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 5.59
Distribution: N/A
Total Net Assets: $11.3 m
Month end NAV in EUR: 93.49
Number of Holdings: 39
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.9

Performance To Date (EUR)

Top 10 Holdings

iShares JPM EM Bond Fund
6.8%
6.50% Global Ports 2023
3.8%
4.95% Veon Holdings 20
3.8%
4.95% Gazprom 2022
3.8%
6.625% Tupy Overseas 2024
3.5%
5.8% Turkcell 2028
3.4%
5.45% Cemex 2029
3.3%
5% Nidda BondCo 2025
2.9%
3% Republic of Poland 2023
2.8%
6.9% Yestar Healthcare 2021
2.7%

Major Sector Breakdown*

Consumer Staples
19.5%
Asset 7
Communications
12.6%
Financials
10.2%
Government
10.1%
Energy
8.9%
Consumer Discretionary
7.8%
*excluding exposures to CIS

Maturity Buckets*

58.2%
0-5 Years
16.0%
5-10 Years
7.5%
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*

Malta (incl. cash)
21.2%
Brazil
18.7%
China
12.4%
Russia
11.1%
Turkey
9.1%
Mexico
7.5%
Indonesia
3.9%
Netherlands
3.8%
Germany
2.9%
Poland
2.8%
*including exposures to CIS, using look-through

Asset Allocation

Cash 12.7%
Bonds (incl. ETFs) 87.3%
Equities (incl. ETFs) 0.0%

Performance History (EUR)*

YTD

-10.89%

2019

6.57%

2018

-9.09%

1-month

3.77%

3-month

-9.22%

Inception*

-14.74%

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

Currency Allocation

USD 89.8%
Euro 10.2%
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 2020

    Risk assets have continued to rally throughout the month of May as the gradual re-opening of economies increased optimism for a V-shaped economic recovery from the virus induced turmoil. The strength of the asset price recovery continues to be buoyed by ongoing strong government policy and central bank interventions. That said, in our view, the propagation of the shock to financial markets due to the virus outbreak remains directly linked to the evolution of the virus and the dynamics of the containment measures.

    Credit markets have seen healthier liquidity in secondary markets, as continued central bank support measures played their part coupled with stronger participation from market participants. The primary market increased pace throughout the month of May following a standstill month in March, as many corporates were comforted by central banks intervention which kept volatility low, while appetite in the primary re-emerged.

    Emerging markets were also conditioned by the oil price collapse earlier in March, partly caused by the ongoing drop in demand caused by the economic contraction, in addition to supply cut disruptions brought about by OPEC members From the data front in the emerging market world, China reported mixed results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions in February. China’s Manufacturing PMI declined to 50.6 in May from April’s 50.8.

    From Latin America, published economic data in Brazil marked a slight improvement in activity. Notably, Manufacturing PMIs increased to 38.3 from 36.0 in April and similarly increasing to 27.6 from 27.4 for services, highlighting a slight increase in activity, however not to the extent of other continents as the country continues to struggle with the spread of the virus. Together with other countries such as Mexico, Brazil continue to report increasing daily deaths, therefore are considered further back in the cycle, behind their peak.

    In the month of May, the CC EMBF continued its resurgence, up 3.86% as credit spreads tightened in line with the wider risk-on approach by market participants. Going forward, the Manager will continue to assess the EM space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s easing stance, primarily by cutting interest rates.

  • 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)*

    -14.74%

    *View Performance History below
    Inception Date: 03 Nov 2017
    ISIN: MT7000002124
    Bloomberg Ticker: CCEMBFC MV
    Entry Charge: up to 2.50%
    Total Expense Ratio: 2.17%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 5.59
    Distribution: N/A
    Total Net Assets: $11.3 m
    Month end NAV in EUR: 93.49
    Number of Holdings: 39
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 36.9

    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

    iShares JPM EM Bond Fund
    6.8%
    6.50% Global Ports 2023
    3.8%
    4.95% Veon Holdings 20
    3.8%
    4.95% Gazprom 2022
    3.8%
    6.625% Tupy Overseas 2024
    3.5%
    5.8% Turkcell 2028
    3.4%
    5.45% Cemex 2029
    3.3%
    5% Nidda BondCo 2025
    2.9%
    3% Republic of Poland 2023
    2.8%
    6.9% Yestar Healthcare 2021
    2.7%

    Top Holdings by Country*

    Malta (incl. cash)
    21.2%
    Brazil
    18.7%
    China
    12.4%
    Russia
    11.1%
    Turkey
    9.1%
    Mexico
    7.5%
    Indonesia
    3.9%
    Netherlands
    3.8%
    Germany
    2.9%
    Poland
    2.8%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Consumer Staples
    19.5%
    Asset 7
    Communications
    12.6%
    Financials
    10.2%
    Government
    10.1%
    Energy
    8.9%
    Consumer Discretionary
    7.8%
    *excluding exposures to CIS

    Asset Allocation

    Cash 12.7%
    Bonds (incl. ETFs) 87.3%
    Equities (incl. ETFs) 0.0%

    Maturity Buckets*

    58.2%
    0-5 Years
    16.0%
    5-10 Years
    7.5%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -10.89%

    2019

    6.57%

    2018

    -9.09%

    1-month

    3.77%

    3-month

    -9.22%

    Inception*

    -14.74%

    *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 89.8%
    Euro 10.2%
    TRY 0.0%
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