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
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
4.3%
3.9%
3.8%
3.8%
3.8%
3.8%
3.7%
3.6%
3.6%
3.4%
Major Sector Breakdown*
Consumer Staples
22.0%
Communications
14.4%
Financials
11.4%
Consumer Discretionary
11.2%
Energy
10.1%
Government
9.3%
Maturity Buckets*
Credit Ratings*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
15.5%
13.0%
12.2%
11.3%
8.6%
6.9%
5.5%
3.8%
3.7%
3.0%
Asset Allocation
Performance History (EUR)*
YTD
4.01%
2018
-9.09%
2017*
-1.24%
1-month
-0.60%
3-month
0.55%
Inception*
-6.62%
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 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.
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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
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.
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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)*
-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
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
5.299% Petrobras 20254.3%
6.90% Yestar Healthcare 20213.9%
6.50% Global Ports 20233.8%
6.625% Tupy Overseas 20243.8%
4.95% Gazprom Capital 20223.8%
7.25% JBS 20243.8%
4.95% Veon Holdings 20243.7%
6.50% Minerva 20263.6%
8.125% Global Liman 20213.6%
6.95% Moderland 20243.4%
Top Holdings by Country*
Brazil15.5%
China13.0%
Malta (incl. cash)12.2%
Russia11.3%
Turkey8.6%
Indonesia6.9%
Mexico5.5%
United States3.8%
Netherlands3.7%
Germany3.0%
*including exposures to CIS, using look-throughMajor Sector Breakdown*
Consumer Staples
22.0%
Communications
14.4%
Financials
11.4%
Consumer Discretionary
11.2%
Energy
10.1%
Government
9.3%
*excluding exposures to CISAsset Allocation
Cash 12.2%Bonds (incl. ETFs) 85.8%Equities (incl. ETFs) 2.0%Maturity Buckets*
72.7%0-5 Years9.3%5-10 Years3.8%10 Years+*based on the Next Call DatePerformance 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 2017Currency Allocation
USD 93.9%Euro 6.1%TRY 0.0% -
Downloads
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.