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

April 2020

Risk assets have rallied throughout the month of April as the fear and panic associated with the outbreak of the COVID-19 virus, which lead to black-swan events in March were eased by government policy interventions. In our view, the propagation of the shock to financial markets due to the virus outbreak is directly linked to the evolution of the virus and the duration of the containment measures. 

Indeed the swift actions taken primarily by Federal Reserve (Fed), emerged is crucial in calming waters across the credit space. Despite that initially markets were not impressed by actions taken by major central banks, the decision taken by the Fed on the 9th of April, in which it expanded its list of eligible bonds, was a clear signal that monetary politicians will do whatever it takes. The move eased both market and corporate liquidity tensions. In fact, following the announcement we’ve saw healthier liquidity in secondary markets, while the primary market re-opened following a standstill month in March.

Emerging markets were also conditioned by the oil price collapse earlier in the month, partly caused by the ongoing drop in demand caused by the economic contraction. The oil price crash highlighted the steep imbalance currently present in consumer and industrial markets, with plunging demand and surging demand for oil storage extenuating the dislocation in the marketplace, and dragging down other risk assets. To this end EM countries sensitive to commodity moves were impacted negative, despite credit markets within the region have managed to gather some pace in line with their U.S. counterparts. 

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 49.4 in April from March’s 50.1, 

From Latin America, published economic data in Brazil marked a significant deterioration in activity. Notably, Manufacturing PMIs dropped to 36.0 from 48.4 in March and 27.4 from 34.5 for services, clearly highlighting the abrupt halt in the Brazilian economy. In addition , in the largest latam economy, Brazil, political instability re-emerged as Bolsanaro was faced with the resignation of justice minister which accused him of meddling in justice issues. This triggered noticeable moves across the Brazilian sovereign curve and other corporate names.  

In the month of April, the CC EMBF  re-gained 3.61% following a torrid March as credit spreads tightened in line with measures put forward by the Fed. 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 (USD)

$

ASSET CLASS

Bonds

MIN. INITIAL INVESTMENT

$3000

FUND TYPE

UCITS

BASE CURRENCY

USD

RETURN (SINCE INCEPTION)*

-9.85%

*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021226
Bloomberg Ticker: CCEMBFA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.17%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 5.59
Distribution: N/A
Total Net Assets: $10.4 m
Month end NAV in USD: 88.94
Number of Holdings: 40
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.8

Performance To Date (USD)

Top 10 Holdings

iShares JPM EM Bond Fund
6.9%
6.50% Global Ports 2023
4.1%
4.95% Veon Holdings 2024
4.0%
4.95% Gazprom 2022
4.0%
5.8% Turkcell 2028
3.6%
6.625% Tupy Overseas 2024
3.5%
6.9% Yestar Healthcare 2021
3.5%
5.45% Cemex 2029
3.2%
5% Nidda BondCo 2025
3.0%
3% Republic of Poland 2023
3.0%

Major Sector Breakdown*

Consumer Staples
20.4%
Asset 7
Communications
13.0%
Financials
10.9%
Government
10.5%
Energy
9.1%
Consumer Discretionary
8.2%
*excluding exposures to CIS

Maturity Buckets*

63.5%
0-5 Years
15.1%
5-10 Years
6.6%
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*

Brazil
19.1%
Malta (incl. cash)
16.5%
China
13.8%
Russia
11.9%
Turkey
9.6%
Mexico
7.8%
Indonesia
4.4%
Netherlands
4.0%
Germany
3.0%
Poland
3.0%
*including exposures to CIS, using look-through

Asset Allocation

Cash 9.4%
Bonds (incl. ETFs) 90.6%
Equities (incl. ETFs) 0.0%

Performance History (EUR)*

YTD

-12.79%

2019

10.40%

2018

-6.17%

1-month

4.23%

3-month

-13.23%

Inception*

-9.85%

*The USD Accumulator Share Class (Class A) was launched on 03 November 2017.

Currency Allocation

USD 89.9%
Euro 10.1%
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

    April 2020

    Risk assets have rallied throughout the month of April as the fear and panic associated with the outbreak of the COVID-19 virus, which lead to black-swan events in March were eased by government policy interventions. In our view, the propagation of the shock to financial markets due to the virus outbreak is directly linked to the evolution of the virus and the duration of the containment measures. 

    Indeed the swift actions taken primarily by Federal Reserve (Fed), emerged is crucial in calming waters across the credit space. Despite that initially markets were not impressed by actions taken by major central banks, the decision taken by the Fed on the 9th of April, in which it expanded its list of eligible bonds, was a clear signal that monetary politicians will do whatever it takes. The move eased both market and corporate liquidity tensions. In fact, following the announcement we’ve saw healthier liquidity in secondary markets, while the primary market re-opened following a standstill month in March.

    Emerging markets were also conditioned by the oil price collapse earlier in the month, partly caused by the ongoing drop in demand caused by the economic contraction. The oil price crash highlighted the steep imbalance currently present in consumer and industrial markets, with plunging demand and surging demand for oil storage extenuating the dislocation in the marketplace, and dragging down other risk assets. To this end EM countries sensitive to commodity moves were impacted negative, despite credit markets within the region have managed to gather some pace in line with their U.S. counterparts. 

    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 49.4 in April from March’s 50.1, 

    From Latin America, published economic data in Brazil marked a significant deterioration in activity. Notably, Manufacturing PMIs dropped to 36.0 from 48.4 in March and 27.4 from 34.5 for services, clearly highlighting the abrupt halt in the Brazilian economy. In addition , in the largest latam economy, Brazil, political instability re-emerged as Bolsanaro was faced with the resignation of justice minister which accused him of meddling in justice issues. This triggered noticeable moves across the Brazilian sovereign curve and other corporate names.  

    In the month of April, the CC EMBF  re-gained 3.61% following a torrid March as credit spreads tightened in line with measures put forward by the Fed. 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 (USD)

    $

    ASSET CLASS

    Bonds

    MIN. INITIAL INVESTMENT

    $3000

    FUND TYPE

    UCITS

    BASE CURRENCY

    USD

    RETURN (SINCE INCEPTION)*

    -9.85%

    *View Performance History below
    Inception Date: 02 Nov 2017
    ISIN: MT7000021226
    Bloomberg Ticker: CCEMBFA MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.17%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 5.59
    Distribution: N/A
    Total Net Assets: $10.4 m
    Month end NAV in USD: 88.94
    Number of Holdings: 40
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 38.8

    Performance To Date (USD)

    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
    6.9%
    6.50% Global Ports 2023
    4.1%
    4.95% Veon Holdings 2024
    4.0%
    4.95% Gazprom 2022
    4.0%
    5.8% Turkcell 2028
    3.6%
    6.625% Tupy Overseas 2024
    3.5%
    6.9% Yestar Healthcare 2021
    3.5%
    5.45% Cemex 2029
    3.2%
    5% Nidda BondCo 2025
    3.0%
    3% Republic of Poland 2023
    3.0%

    Top Holdings by Country*

    Brazil
    19.1%
    Malta (incl. cash)
    16.5%
    China
    13.8%
    Russia
    11.9%
    Turkey
    9.6%
    Mexico
    7.8%
    Indonesia
    4.4%
    Netherlands
    4.0%
    Germany
    3.0%
    Poland
    3.0%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Consumer Staples
    20.4%
    Asset 7
    Communications
    13.0%
    Financials
    10.9%
    Government
    10.5%
    Energy
    9.1%
    Consumer Discretionary
    8.2%
    *excluding exposures to CIS

    Asset Allocation

    Cash 9.4%
    Bonds (incl. ETFs) 90.6%
    Equities (incl. ETFs) 0.0%

    Maturity Buckets*

    63.5%
    0-5 Years
    15.1%
    5-10 Years
    6.6%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -12.79%

    2019

    10.40%

    2018

    -6.17%

    1-month

    4.23%

    3-month

    -13.23%

    Inception*

    -9.85%

    *The USD Accumulator Share Class (Class A) was launched on 03 November 2017.

    Credit Ratings*

    Average Credit Rating: BB
    *excluding exposures to CIS

    Currency Allocation

    USD 89.9%
    Euro 10.1%
    TRY 0.0%
  • Downloads

Designed and Developed by