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 (USD)
$
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
$3000
FUND TYPE
UCITS
BASE CURRENCY
USD
RETURN (SINCE INCEPTION)*
1.98%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021226
Bloomberg Ticker: CCEMBFA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.07%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.80
Distribution: N/A
Total Net Assets: $13.54 mn
Month end NAV in USD: 101.98
Number of Holdings: 45
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.9
Performance To Date (USD)
Top 10 Holdings
5.9%
5.6%
4.1%
3.3%
3.3%
3.2%
3.2%
3.0%
2.6%
2.6%
Major Sector Breakdown*
Government
11.9%
Communications
11.3%
Industrials
6.8%
Consumer Staples
5.7%
Materials
5.2%
Consumer Discretionary
4.6%
Maturity Buckets*
Credit Ratings*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
19.3%
17.4%
11.0%
7.5%
7.4%
6.5%
5.2%
4.6%
4.0%
3.2%
Asset Allocation
Performance History (EUR)*
YTD
-0.64%
2020
-0.71%
2019
10.40%
1-month
-0.28%
3-month
0.94%
Annualised SinceInception*
0.59%
Currency Allocation
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.
-
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
February 2021
A small rise in new cases in China had led to some mobility restrictions during the New Lunar Year holidays that could moderate but not derail the strong V-shaped recovery. Markets were more concerned about the prospect of a dampening of stimulus measures to curb the risk from rising house prices.
The People’s Bank of China confirmed its intention to maintain a prudent but flexible policy stance. The renminbi continued its appreciation, supported by the increased growth gap between China and the rest of the world, and greater global interest in Chinese assets.
The resources driven emerging markets were aided by higher commodity prices which have also contributed to higher inflation expectations. Oil prices have risen back close to pre Covid-19 levels, boosted by hopes of a return to normal demand and supply constraints, and by the cold temperatures that forced Texas, which is responsible for 40% of total US oil production, to reduce refining capacity. Many industrial metals also rose. Copper registered a bounce that is partly related to rising demand related to its use in various parts of the infrastructure required for the green energy transition.
From the data front in the emerging market world, China – the world’s second largest economy and one of the few to register growth for 2020, witnessed softness in its data in January, which spilt over into February. China reported a drop for both manufacturing and services sector.
China’s February manufacturing PMI fell to of 50.6 from 51.3 in January, and lower than market expectations of 51.1. Both output and new orders rose at softer paces, while export sales remained under pressure due to a resurgence in coronavirus infections globally and ensuing movement restrictions. Meanwhile, services PMI also dropped to 51.5 from 52.0 in the January.
From the Latin American region, the Brazilian president removed Petrobras CEO over fuel price hikes and appointed General Joaquim Silva e Luna as new CEO. The rules in the bylaws force the replacement (or re-election) of seven other board members which the market interpreted negatively after a seemingly overly interventionist activity by Bolsonaro.
Brazil reported stronger PMI data for February after a virus induced drop off in January. Manufacturing PMI’s came in at 58.4 compared to 56.5 in January. Momentum in retail sales continued to slow, increasing by 1.2% compared to a strong forecast of 6.0%, as consumer confidence was shaken by Covid induced restrictions.
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.
In the month of February, the CC Emerging Market Bond Fund fell by -0.28 per cent .Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories, primarily within consumer staples and sovereigns.
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 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 (USD)
$
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
$3000
FUND TYPE
UCITS
BASE CURRENCY
USD
RETURN (SINCE INCEPTION)*
1.98%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021226
Bloomberg Ticker: CCEMBFA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.07%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.80
Distribution: N/A
Total Net Assets: $13.54 mn
Month end NAV in USD: 101.98
Number of Holdings: 45
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.9
Performance To Date (USD)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
iShares JPM USD EM Bond Fund5.9%
iShares JPM USD EM Corp Bond5.6%
6.625% NBM Holdings 20294.1%
6.5% Global Ports Finance 20233.3%
5.45% Cemex 20293.3%
5.8% Turkcell 20283.2%
4.95% Veon Holdings 20243.2%
6.625% TUPY Overseas SA 20243.0%
5.4% Republic of Paraguay 20502.6%
8.125% Global Liman 20212.6%
Top Holdings by Country*
Brazil19.3%
Malta (incl. Cash)17.4%
China11.0%
Mexico7.5%
Turkey7.4%
Russia6.5%
India5.2%
Germany4.6%
Oman4.0%
Netherlands3.2%
*including exposures to CIS, using look-throughMajor Sector Breakdown*
Government
11.9%
Communications
11.3%
Industrials
6.8%
Consumer Staples
5.7%
Materials
5.2%
Consumer Discretionary
4.6%
*excluding exposures to CISAsset Allocation
Cash 6.0%Bonds (incl. ETFs) 94.0%Equities (incl. ETFs) 0.0%Maturity Buckets*
45.7%0-5 Years27.7%5-10 Years9.2%10 Years+*based on the Next Call DatePerformance History (EUR)*
YTD
-0.64%
2020
-0.71%
2019
10.40%
1-month
-0.28%
3-month
0.94%
Annualised SinceInception*
0.59%
*The USD Accumulator Share Class (Class A) was launched on 03 November 2017.Currency Allocation
USD 90.6%Euro 9.4%Other 0.0% -
Downloads
Commentary
February 2021
A small rise in new cases in China had led to some mobility restrictions during the New Lunar Year holidays that could moderate but not derail the strong V-shaped recovery. Markets were more concerned about the prospect of a dampening of stimulus measures to curb the risk from rising house prices.
The People’s Bank of China confirmed its intention to maintain a prudent but flexible policy stance. The renminbi continued its appreciation, supported by the increased growth gap between China and the rest of the world, and greater global interest in Chinese assets.
The resources driven emerging markets were aided by higher commodity prices which have also contributed to higher inflation expectations. Oil prices have risen back close to pre Covid-19 levels, boosted by hopes of a return to normal demand and supply constraints, and by the cold temperatures that forced Texas, which is responsible for 40% of total US oil production, to reduce refining capacity. Many industrial metals also rose. Copper registered a bounce that is partly related to rising demand related to its use in various parts of the infrastructure required for the green energy transition.
From the data front in the emerging market world, China – the world’s second largest economy and one of the few to register growth for 2020, witnessed softness in its data in January, which spilt over into February. China reported a drop for both manufacturing and services sector.
China’s February manufacturing PMI fell to of 50.6 from 51.3 in January, and lower than market expectations of 51.1. Both output and new orders rose at softer paces, while export sales remained under pressure due to a resurgence in coronavirus infections globally and ensuing movement restrictions. Meanwhile, services PMI also dropped to 51.5 from 52.0 in the January.
From the Latin American region, the Brazilian president removed Petrobras CEO over fuel price hikes and appointed General Joaquim Silva e Luna as new CEO. The rules in the bylaws force the replacement (or re-election) of seven other board members which the market interpreted negatively after a seemingly overly interventionist activity by Bolsonaro.
Brazil reported stronger PMI data for February after a virus induced drop off in January. Manufacturing PMI’s came in at 58.4 compared to 56.5 in January. Momentum in retail sales continued to slow, increasing by 1.2% compared to a strong forecast of 6.0%, as consumer confidence was shaken by Covid induced restrictions.
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.
In the month of February, the CC Emerging Market Bond Fund fell by -0.28 per cent .Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories, primarily within consumer staples and sovereigns.
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 accommodative stance.