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 at a Glance

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

August 2020

August continued to build on the previous month’s strong performance across most asset classes, with earnings season and vaccine hopes influencing market activity. However, much of the momentum originated from policy makers in both the US and Europe committing to further monetary and fiscal stimulus, reverberating positively throughout global markets.

Emerging markets were also further aided by the rally in commodities, including gold, which surged to a new all-time high of USD 2,068 per troy ounce during the month, before settling down at USD 1,974 at the end of the month. The precious metal has risen by more than 30 per cent in 2020, fuelled by safe haven demand amidst the pandemic and escalating US-Sino tensions, ultra-low or negative interest rates around the world and the weakening of the US Dollar – the dollar index has fallen to its lowest level since mid-2018.

In Asia, the number of daily new Covid cases rose in India, Indonesia, the Philippines and South Korea but declined in most other countries. In Latin America, the number of new cases remained high although the pace of increase slowed in Brazil, Mexico and Chile, while in the Middle-East and Africa, the number of reported new cases continued to decrease across most of the region. The more encouraging economic indicators outweighed virus concerns.

From the data front in the emerging market world, China reported stronger results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions earlier in the year. China’s Manufacturing PMI remained largely stable at 51.0 in August from July’s 51.1.

From the Latin America region, published economic data in Brazil marked a continued major improvement in activity. Notably, Manufacturing PMIs increased to 64.7 from 58.2 in July and similarly increasing to 49.5 from 42.5 for services, albeit being below expansion territory. TSouth American countries are considered further back in the recovery cycle, given that the emergence of the virus kicked-off late when compared to their North American and European counterparts.

In the month of July, the CC EMBF continued its resurgence, up 1.90% as credit spreads tightened in line with the wider risk-on approach by market participants. 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)*

-3.20%

*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021234
Bloomberg Ticker: CCEMBFB MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.17%
Exit Charge: None
Distribution Yield (%): 4.50
Underlying Yield (%): 4.92
Distribution: 31/03 and 30/09
Total Net Assets: $12.1 m
Month end NAV in USD: 90.07
Number of Holdings: 40
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 35.7

Performance To Date (USD)

Top 10 Holdings

iShares JPM EM Bond Fund
6.7%
6.50% Global Ports 2023
3.7%
4.95% Veon Holdings 2024
3.6%
4.95% Gazprom 2022
3.5%
5.45% Cemex 2029
3.4%
6.625% Tupy Overseas 2024
3.4%
5.8% Turkcell 202
3.3%
6.625% NBM 2029
2.7%
5.299% Petrobras 2025
2.7%
3% Republic of Poland 2023
2.6%

Major Sector Breakdown*

Consumer Staples
14.6%
Asset 7
Communications
12.1%
Industrials
9.5%
Real Estate
8.9%
Utilites
6.8%
Health Care
5.6%
*excluding exposures to CIS

Maturity Buckets*

55.7%
0-5 Years
16.9%
5-10 Years
6.9%
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)
20.5%
Brazil
19.1%
China
12.0%
Russia
10.6%
Mexico
7.4%
Turkey
7.3%
Germany
4.9%
Netherlands
3.6%
Indonesia
3.1%
India
3.0%
*including exposures to CIS, using look-through

Asset Allocation

Cash 13.8%
Bonds (incl. ETFs) 86.2%
Equities (incl. ETFs) 0.00%

Performance History (EUR)*

YTD

-4.58%

2019

10.40%

2018

-6.16%

1-month

1.90%

3-month

5.50%

Inception

-1.37%

*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 USD Distributor Share Class (Class B) was launched on 03 November 2017.

Currency Allocation

USD 92.6%
Euro 7.4%
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

    August 2020

    August continued to build on the previous month’s strong performance across most asset classes, with earnings season and vaccine hopes influencing market activity. However, much of the momentum originated from policy makers in both the US and Europe committing to further monetary and fiscal stimulus, reverberating positively throughout global markets.

    Emerging markets were also further aided by the rally in commodities, including gold, which surged to a new all-time high of USD 2,068 per troy ounce during the month, before settling down at USD 1,974 at the end of the month. The precious metal has risen by more than 30 per cent in 2020, fuelled by safe haven demand amidst the pandemic and escalating US-Sino tensions, ultra-low or negative interest rates around the world and the weakening of the US Dollar – the dollar index has fallen to its lowest level since mid-2018.

    In Asia, the number of daily new Covid cases rose in India, Indonesia, the Philippines and South Korea but declined in most other countries. In Latin America, the number of new cases remained high although the pace of increase slowed in Brazil, Mexico and Chile, while in the Middle-East and Africa, the number of reported new cases continued to decrease across most of the region. The more encouraging economic indicators outweighed virus concerns.

    From the data front in the emerging market world, China reported stronger results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions earlier in the year. China’s Manufacturing PMI remained largely stable at 51.0 in August from July’s 51.1.

    From the Latin America region, published economic data in Brazil marked a continued major improvement in activity. Notably, Manufacturing PMIs increased to 64.7 from 58.2 in July and similarly increasing to 49.5 from 42.5 for services, albeit being below expansion territory. TSouth American countries are considered further back in the recovery cycle, given that the emergence of the virus kicked-off late when compared to their North American and European counterparts.

    In the month of July, the CC EMBF continued its resurgence, up 1.90% as credit spreads tightened in line with the wider risk-on approach by market participants. 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)*

    -3.20%

    *View Performance History below
    Inception Date: 02 Nov 2017
    ISIN: MT7000021234
    Bloomberg Ticker: CCEMBFB MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.17%
    Exit Charge: None
    Distribution Yield (%): 4.50
    Underlying Yield (%): 4.92
    Distribution: 31/03 and 30/09
    Total Net Assets: $12.1 m
    Month end NAV in USD: 90.07
    Number of Holdings: 40
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 35.7

    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
    6.7%
    6.50% Global Ports 2023
    3.7%
    4.95% Veon Holdings 2024
    3.6%
    4.95% Gazprom 2022
    3.5%
    5.45% Cemex 2029
    3.4%
    6.625% Tupy Overseas 2024
    3.4%
    5.8% Turkcell 202
    3.3%
    6.625% NBM 2029
    2.7%
    5.299% Petrobras 2025
    2.7%
    3% Republic of Poland 2023
    2.6%

    Top Holdings by Country*

    Malta (incl. cash)
    20.5%
    Brazil
    19.1%
    China
    12.0%
    Russia
    10.6%
    Mexico
    7.4%
    Turkey
    7.3%
    Germany
    4.9%
    Netherlands
    3.6%
    Indonesia
    3.1%
    India
    3.0%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Consumer Staples
    14.6%
    Asset 7
    Communications
    12.1%
    Industrials
    9.5%
    Real Estate
    8.9%
    Utilites
    6.8%
    Health Care
    5.6%
    *excluding exposures to CIS

    Asset Allocation

    Cash 13.8%
    Bonds (incl. ETFs) 86.2%
    Equities (incl. ETFs) 0.00%

    Maturity Buckets*

    55.7%
    0-5 Years
    16.9%
    5-10 Years
    6.9%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -4.58%

    2019

    10.40%

    2018

    -6.16%

    1-month

    1.90%

    3-month

    5.50%

    Inception

    -1.37%

    *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 USD Distributor Share Class (Class B) was launched on 03 November 2017.

    Credit Ratings*

    Average Credit Rating: BB
    *excluding exposures to CIS

    Currency Allocation

    USD 92.6%
    Euro 7.4%
    TRY 0.0%
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