Investment Objectives

The Fund aims to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of fixed-income investments.

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

June 2021

The phrase “a lot may happen in a year” seems fitting for both financial markets and economic data. Financial markets, then recovering from significant declines, have improved. Equity markets headed to all-time highs while credit markets, previously witnessing credit spreads reaching significant highs of over 1000bps, recouped. Economic data, dampened as coronavirus-inflicted restrictions weighed, improved.

Economic data, in line with expectations maintained its recent pace, proving strong. The vaccination rollout in many developed countries, being well underway, allowing for the unlocking of economies and a gradual return to normality, combined with sizeable fiscal support is facilitating a big bounce in economic activity. A scenario everyone has longed for. The pick-up in economic activity has however, been partly overshadowed by a sharp pickup in inflation and a rising concern that this could lead to central banks withdrawing some of their stimulatory policies.

Commodities continued to show persistent strength across the asset class, with natural gas and molybdenum being among the top-performing assets.  Crude oil, conditioned by the OPEC+ decisions in regards to the level of output, also witnessed notable gains for the month.

Real world data on vaccine efficacy continues to be largely positive, with hospitalisations remaining largely low in those countries where the vaccine rollout has progressed far enough to protect the most vulnerable age groups. The large divide between developed and emerging economies is now evermore apparent, as many European countries plan their summer re-opening, while the tragic health crisis in India continues, and underlining the need for a rapid rollout of vaccines on a global scale. Progress is being made, with over 350 million vaccines so far administered in India.  This progress, combined with a relatively young population, brings hope that the worst of the Indian health crisis could be over within months. The quicker a higher proportion of the world population is vaccinated, the quicker the return to normality, and thus revival of India’s economic climate.

From the data front in the emerging market world, China – the world’s second largest economy, albeit remaining in expansionary territory witnessed a decline in both manufacturing and services sector. China’s factory activity growth slowed amid the recent uptick in local coronavirus cases and supply chain difficulties. China’s Manufacturing PMI fell to 51.3 in June 2021 from 52 in the previous month, and below market estimates of 51.8. Output rose the least since March 2020, new order growth eased to a three-month low, and export sales were broadly stagnated. The degree of optimism remained unchanged from May’s four-month low. Similarly, China’s Services PMI dropped to 50.3 in June 2021, from 55.1 in the previous month, amid an outbreak of a more infectious Delta variant in Guangdong and the consequent imposition of anti-virus measures. Albeit the degree of positive sentiment dropped to a nine-month low as concerns over the epidemic situation heightened, sentiment remained strongly upbeat.

Over to Brazil, factory activity in Latin America’s largest economy rose to 56.4 in June 2021 from 53.7 in the previous month. The reading pointed to another acceleration in factory activity and the fastest pace since February 2021, driven by a solid increase in new orders and output. Moreover, the overall level of positive sentiment hit a six-month high in June, supported by hopes of greater vaccine availability and that the pandemic will retreat. Meanwhile, Services PMI jumped to 53.9 from 48.3 in the previous month. The reading which pointed to the strongest level of expansion since the beginning of 2013 came in following the easing of public health restrictions and progress in the vaccination campaign.

In June, Emerging Market high yield (more speculative bonds as determined by a credit rating agency), generated marginal returns, underperforming both the European and US counterparts.

From a technical perspective, emerging market debt is expected to keep pace with high yield credit in developed markets, as higher yielding debt remains an attractive avenue for those investors in search of a higher yield. The extremely accommodative liquidity situation is helping to maintain stability, despite the deep wounds inflicted on already fragile economies. This highlights the importance of the managers’ strategy of being selective.

In the month of June, the CC Emerging Market Bond Fund increased by 0.28%. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories in the financials, basic materials, energy, and utilities sectors.

Going forward, the Manager will continue to assess the emerging market space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s accommodative stance.

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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)*

-6.63%

*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021259
Bloomberg Ticker: CCEMBFD MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.07%
Exit Charge: None
Distribution Yield (%): 4.25
Underlying Yield (%): 4.43
Distribution: 31/03 and 30/09
Total Net Assets: $14.2 mn
Month end NAV in EUR: 81.30
Number of Holdings: 46
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.3

Performance To Date (EUR)

Top 10 Holdings

iShares JPM EM Bond Fund
5.7%
6.625% NBM Holdings 2029
4.0%
iShares China Bond
3.8%
6.5% Global Ports Finance 2023
3.1%
5.45% Cemex 2029
3.1%
5.8% Oryx Funding ltd 2031
3.0%
4.95% Veon Holdings 2024
3.0%
5.8% Turkcell 2028
3.0%
4.375% Freeport McMoran 2028
3.0%
8.125% Global Liman 2021
2.8%

Major Sector Breakdown*

Asset 7
Communications
10.5%
Government
9.5%
Real Estate
7.9%
Materials
6.4%
Industrials
6.3%
Materials
4.3%
*excluding exposures to CIS

Maturity Buckets*

42.6%
0-5 Years
28.0%
5-10 Years
8.8%
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*

Malta (incl. Cash)
22.4%
Brazil
15.0%
China
9.5%
Mexico
9.0%
Turkey
7.4%
Russia
6.1%
United States
6.0%
India
5.6%
Oman
4.6%
Netherlands
3.0%
*including exposures to CIS, using look-through

Asset Allocation

Cash 5.8%
Bonds (incl. ETFs) 94.2%
Equities (incl. ETFs) 0.0%

Performance History (EUR)*

YTD

1.70%

2020

-3.75%

2019

6.55%

1-month

0.21%

3-month

3.9%

Annualised Since Inception***

-1.86%

*Data in the chart does not include any dividends distributed since the Fund was launched on 03 November 2017.
**Performance figures are calculated using the Value Added Monthly Index "VAMI" principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding.
***The EUR Distributor Share Class (Class D) was launched on 03 November 2017.

Currency Allocation

USD 92.9%
Euro 7.1%
Other 0.0%
Data for risk statistics is not available for this fund.

Interested in this product?

  • Investment Objectives

    The Fund aims to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of fixed-income investments.

  • 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

    June 2021

    The phrase “a lot may happen in a year” seems fitting for both financial markets and economic data. Financial markets, then recovering from significant declines, have improved. Equity markets headed to all-time highs while credit markets, previously witnessing credit spreads reaching significant highs of over 1000bps, recouped. Economic data, dampened as coronavirus-inflicted restrictions weighed, improved.

    Economic data, in line with expectations maintained its recent pace, proving strong. The vaccination rollout in many developed countries, being well underway, allowing for the unlocking of economies and a gradual return to normality, combined with sizeable fiscal support is facilitating a big bounce in economic activity. A scenario everyone has longed for. The pick-up in economic activity has however, been partly overshadowed by a sharp pickup in inflation and a rising concern that this could lead to central banks withdrawing some of their stimulatory policies.

    Commodities continued to show persistent strength across the asset class, with natural gas and molybdenum being among the top-performing assets.  Crude oil, conditioned by the OPEC+ decisions in regards to the level of output, also witnessed notable gains for the month.

    Real world data on vaccine efficacy continues to be largely positive, with hospitalisations remaining largely low in those countries where the vaccine rollout has progressed far enough to protect the most vulnerable age groups. The large divide between developed and emerging economies is now evermore apparent, as many European countries plan their summer re-opening, while the tragic health crisis in India continues, and underlining the need for a rapid rollout of vaccines on a global scale. Progress is being made, with over 350 million vaccines so far administered in India.  This progress, combined with a relatively young population, brings hope that the worst of the Indian health crisis could be over within months. The quicker a higher proportion of the world population is vaccinated, the quicker the return to normality, and thus revival of India’s economic climate.

    From the data front in the emerging market world, China – the world’s second largest economy, albeit remaining in expansionary territory witnessed a decline in both manufacturing and services sector. China’s factory activity growth slowed amid the recent uptick in local coronavirus cases and supply chain difficulties. China’s Manufacturing PMI fell to 51.3 in June 2021 from 52 in the previous month, and below market estimates of 51.8. Output rose the least since March 2020, new order growth eased to a three-month low, and export sales were broadly stagnated. The degree of optimism remained unchanged from May’s four-month low. Similarly, China’s Services PMI dropped to 50.3 in June 2021, from 55.1 in the previous month, amid an outbreak of a more infectious Delta variant in Guangdong and the consequent imposition of anti-virus measures. Albeit the degree of positive sentiment dropped to a nine-month low as concerns over the epidemic situation heightened, sentiment remained strongly upbeat.

    Over to Brazil, factory activity in Latin America’s largest economy rose to 56.4 in June 2021 from 53.7 in the previous month. The reading pointed to another acceleration in factory activity and the fastest pace since February 2021, driven by a solid increase in new orders and output. Moreover, the overall level of positive sentiment hit a six-month high in June, supported by hopes of greater vaccine availability and that the pandemic will retreat. Meanwhile, Services PMI jumped to 53.9 from 48.3 in the previous month. The reading which pointed to the strongest level of expansion since the beginning of 2013 came in following the easing of public health restrictions and progress in the vaccination campaign.

    In June, Emerging Market high yield (more speculative bonds as determined by a credit rating agency), generated marginal returns, underperforming both the European and US counterparts.

    From a technical perspective, emerging market debt is expected to keep pace with high yield credit in developed markets, as higher yielding debt remains an attractive avenue for those investors in search of a higher yield. The extremely accommodative liquidity situation is helping to maintain stability, despite the deep wounds inflicted on already fragile economies. This highlights the importance of the managers’ strategy of being selective.

    In the month of June, the CC Emerging Market Bond Fund increased by 0.28%. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories in the financials, basic materials, energy, and utilities sectors.

    Going forward, the Manager will continue to assess the emerging market space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s accommodative stance.

  • 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)*

    -6.63%

    *View Performance History below
    Inception Date: 02 Nov 2017
    ISIN: MT7000021259
    Bloomberg Ticker: CCEMBFD MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.07%
    Exit Charge: None
    Distribution Yield (%): 4.25
    Underlying Yield (%): 4.43
    Distribution: 31/03 and 30/09
    Total Net Assets: $14.2 mn
    Month end NAV in EUR: 81.30
    Number of Holdings: 46
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 36.3

    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
    5.7%
    6.625% NBM Holdings 2029
    4.0%
    iShares China Bond
    3.8%
    6.5% Global Ports Finance 2023
    3.1%
    5.45% Cemex 2029
    3.1%
    5.8% Oryx Funding ltd 2031
    3.0%
    4.95% Veon Holdings 2024
    3.0%
    5.8% Turkcell 2028
    3.0%
    4.375% Freeport McMoran 2028
    3.0%
    8.125% Global Liman 2021
    2.8%

    Top Holdings by Country*

    Malta (incl. Cash)
    22.4%
    Brazil
    15.0%
    China
    9.5%
    Mexico
    9.0%
    Turkey
    7.4%
    Russia
    6.1%
    United States
    6.0%
    India
    5.6%
    Oman
    4.6%
    Netherlands
    3.0%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Asset 7
    Communications
    10.5%
    Government
    9.5%
    Real Estate
    7.9%
    Materials
    6.4%
    Industrials
    6.3%
    Materials
    4.3%
    *excluding exposures to CIS

    Asset Allocation

    Cash 5.8%
    Bonds (incl. ETFs) 94.2%
    Equities (incl. ETFs) 0.0%

    Maturity Buckets*

    42.6%
    0-5 Years
    28.0%
    5-10 Years
    8.8%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    1.70%

    2020

    -3.75%

    2019

    6.55%

    1-month

    0.21%

    3-month

    3.9%

    Annualised Since Inception***

    -1.86%

    *Data in the chart does not include any dividends distributed since the Fund was launched on 03 November 2017.
    **Performance figures are calculated using the Value Added Monthly Index "VAMI" principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding.
    ***The EUR Distributor Share Class (Class D) was launched on 03 November 2017.

    Credit Ratings*

    Average Credit Rating: BB-
    *excluding exposures to CIS

    Currency Allocation

    USD 92.9%
    Euro 7.1%
    Other 0.0%
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