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
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)*
-5.96%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021259
Bloomberg Ticker: CCEMBFD MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.02%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 5.020
Distribution: 31/03 and 30/09
Total Net Assets: $10.7 m
Month end NAV in EUR: 101.04
Number of Holdings: 39
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.8
Performance To Date (EUR)
Top 10 Holdings
4.5%
4.0%
3.9%
3.9%
3.8%
3.6%
3.5%
3.4%
3.1%
2.9%
Major Sector Breakdown*
Consumer Staples
16.3%
Communications
13.6%
Government
13.4%
Financials
11.5%
Energy
11.2%
Consumer Discretionary
7.7%
Maturity Buckets*
Credit Ratings*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
16.2%
15.0%
12.7%
11.8%
9.2%
7.1%
3.9%
3.8%
3.1%
3.0%
Asset Allocation
Performance History (EUR)*
YTD
5.04%
2018
-9.25%
2017***
-1.34%
1-month
0.27%
3-month
-0.88%
Inception***
-5.96%
Currency Allocation
Interested in this product?
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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.
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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
September 2019
In the emerging market world, investors continued to monitor the ongoing trade-war saga. As opposed to Europe and the U.S., EM debt outperformed its peers, as investors digested positively the decisions taken by monetary politicians and their more dovish stance. The compression in yields was also brought about by EM central banks following the Fed in cutting interest rates. China cut its 1 year loan prime rate to 4.2 percent, an all-time record low, while rate cuts were also seen in Brazil, Russia and Indonesia to name a few.
Leading indicators are showing signs of weakness, while capital spending and business confidence are falling sharply. That said, consumer spending, namely in the U.S., which accounts for more than two-thirds of GDP, continue to show remarkable strength and endurance. Thus, as long as the latter maintains its pace, we should continue to see some form of stabilization in economic data, while one should nevertheless be mindful of the possible prolonged trade war saga. The latter will undoubtedly be a drag globally, with EM also suffering the consequences. This will ultimately be reflected in global growth, given that today EM growth contributes to over 50 percent in weightings towards global growth.
In the month, EM debt recorded a +1.4 percent gain, while the Fund was up +0.4 percent reflecting the very cautious approach taken by the Investment Manager, given the current global uncertainties. The Investment Manager will continue to seek value, while being mindful of the market’s pressures currently being experienced due to the prolonged trade-war saga.
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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)*
-5.96%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021259
Bloomberg Ticker: CCEMBFD MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.02%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 5.020
Distribution: 31/03 and 30/09
Total Net Assets: $10.7 m
Month end NAV in EUR: 101.04
Number of Holdings: 39
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.8
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
5.299% Petrobras 20254.5%
6.50% Global Ports 20234.0%
4.95% Veon Holdings 20243.9%
4.95% Gazprom Capital 20223.9%
6.625% Tupy Overseas 20243.8%
8.125% Global Liman 20213.6%
6.90% Yestar Healthcare 20213.5%
6.95% Moderland 20243.4%
5.00% Nidda 20253.1%
iShares JPM USD EM2.9%
Top Holdings by Country*
Brazil16.2%
Malta (incl. cash)15.0%
China12.7%
Russia11.8%
Turkey9.2%
Indonesia7.1%
Netherlands3.9%
Mexico3.8%
Germany3.1%
Argentina3.0%
*including exposures to CIS, using look-throughMajor Sector Breakdown*
Consumer Staples
16.3%
Communications
13.6%
Government
13.4%
Financials
11.5%
Energy
11.2%
Consumer Discretionary
7.7%
*excluding exposures to CISAsset Allocation
Cash 12.0%Bonds (incl. ETFs) 85.9%Equities (incl. ETFs) 2.1%Maturity Buckets*
66.3%0-5 Years10.8%5-10 Years5.8%10 Years+*based on the Next Call DatePerformance History (EUR)*
YTD
5.04%
2018
-9.25%
2017***
-1.34%
1-month
0.27%
3-month
-0.88%
Inception***
-5.96%
*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 91.7%Euro 8.3%TRY 0.0% -
Downloads
Commentary
September 2019
In the emerging market world, investors continued to monitor the ongoing trade-war saga. As opposed to Europe and the U.S., EM debt outperformed its peers, as investors digested positively the decisions taken by monetary politicians and their more dovish stance. The compression in yields was also brought about by EM central banks following the Fed in cutting interest rates. China cut its 1 year loan prime rate to 4.2 percent, an all-time record low, while rate cuts were also seen in Brazil, Russia and Indonesia to name a few.
Leading indicators are showing signs of weakness, while capital spending and business confidence are falling sharply. That said, consumer spending, namely in the U.S., which accounts for more than two-thirds of GDP, continue to show remarkable strength and endurance. Thus, as long as the latter maintains its pace, we should continue to see some form of stabilization in economic data, while one should nevertheless be mindful of the possible prolonged trade war saga. The latter will undoubtedly be a drag globally, with EM also suffering the consequences. This will ultimately be reflected in global growth, given that today EM growth contributes to over 50 percent in weightings towards global growth.
In the month, EM debt recorded a +1.4 percent gain, while the Fund was up +0.4 percent reflecting the very cautious approach taken by the Investment Manager, given the current global uncertainties. The Investment Manager will continue to seek value, while being mindful of the market’s pressures currently being experienced due to the prolonged trade-war saga.