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 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 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

January 2019

Emerging Market (EM) economies throughout the year were conditioned namely by the geopolitical tensions vis-à-vis the trade war; tensions which pushed investors to re-allocate their assets into safer heavens. EM currencies in 2018 were the primarily driving force of risks within the region as investors opted for safer heavens such as the Japanese Yen and the U.S. dollar. The latter continued to put pressure on EM, which were harshly beaten to levels that weren’t seen since 2013. In January, due to a weakening dollar, which was conditioned by the Fed’s U-turn, EM saw a boost in bond prices and keep outperforming other asset classes. Should no political risk or rather specific risk emerge again, EMs should continue at this pace and credit stories, which were hit harsh in 2018, should outperform other regions. That being said, weak data keeps coming out of China – lower than expected inflation and weak manufacturing data for the second time in the same month. This reflects not only the impact of the Trade War but more so a domestic economic slowdown. Other EMs, specifically Turkey, Brazil, Indonesia and Russia have seen a magnified uplift in performance.

The Investment Managers (IMs) believe that emerging market valuations are attractive and the portfolio is well positioned to benefit from a trade war solution. Indeed, the portfolio benefited from the refinancing of Alam Sutera, the Indonesian property developer, which pushed the sector higher. In addition, other regions such as Brazil and Turkey continued to move higher. The Manager still believes that there is value within the region and in this regard cash will be reduced accordingly in line with opportunities.

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)*

-3.48%

*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021234
Bloomberg Ticker: CCEMBFB MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.10%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 3.89
Distribution: 31/03 and 30/09
Total Net Assets: $10.6 m
Month and NAV in USD: 96.52
Number of Holdings: 38
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.2

Performance To Date (USD)

Top 10 Holdings

5.299% Petrobras 2025
4.2%
6.625% Tupy Overseas 2024
3.9%
7.25% JBS Investments 2024
3.9%
6.90% Yestar Healthcare 2021
3.9%
6.50% Global Ports 2023
3.9%
4.95% Gazprom Capital 2022
3.8%
6.375% Banco Santander 2167
3.7%
4.95% Veon Holdings 2024
3.7%
8.125% Global Liman 2021
3.7%
6.50% Minerva 2026
3.6%

Major Sector Breakdown*

Consumer Staples
22.4%
Financials
18.1%
Asset 7
Communications
12.8%
Consumer Discretionary
11.2%
Energy
10.0%
Government
7.7%
*excluding exposures to CIS

Maturity Buckets*

75.1%
0-5 Years
11.4%
5-10 Years
2.0%
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
13.8%
China
13.0%
Russia
11.4%
Malta (incl. cash)
9.3%
Turkey
9.1%
Indonesia
6.9%
Germany
5.8%
Mexico
5.5%
Spain
4.4%
United States
3.9%
*including exposures to CIS, using look-through

Asset Allocation

Cash 9.4%
Bonds (incl. ETFs) 88.5%
Equities (incl. ETFs) 2.1%

Performance History (EUR)*

YTD

3.08%

2018

-6.16%

2017***

-0.22%

1-month

3.08%

3-month

3.40%

Inception

-3.48%

*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 92.9%
Euro 7.1%
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 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 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

    January 2019

    Emerging Market (EM) economies throughout the year were conditioned namely by the geopolitical tensions vis-à-vis the trade war; tensions which pushed investors to re-allocate their assets into safer heavens. EM currencies in 2018 were the primarily driving force of risks within the region as investors opted for safer heavens such as the Japanese Yen and the U.S. dollar. The latter continued to put pressure on EM, which were harshly beaten to levels that weren’t seen since 2013. In January, due to a weakening dollar, which was conditioned by the Fed’s U-turn, EM saw a boost in bond prices and keep outperforming other asset classes. Should no political risk or rather specific risk emerge again, EMs should continue at this pace and credit stories, which were hit harsh in 2018, should outperform other regions. That being said, weak data keeps coming out of China – lower than expected inflation and weak manufacturing data for the second time in the same month. This reflects not only the impact of the Trade War but more so a domestic economic slowdown. Other EMs, specifically Turkey, Brazil, Indonesia and Russia have seen a magnified uplift in performance.

    The Investment Managers (IMs) believe that emerging market valuations are attractive and the portfolio is well positioned to benefit from a trade war solution. Indeed, the portfolio benefited from the refinancing of Alam Sutera, the Indonesian property developer, which pushed the sector higher. In addition, other regions such as Brazil and Turkey continued to move higher. The Manager still believes that there is value within the region and in this regard cash will be reduced accordingly in line with opportunities.

  • 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)*

    -3.48%

    *View Performance History below
    Inception Date: 02 Nov 2017
    ISIN: MT7000021234
    Bloomberg Ticker: CCEMBFB MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.10%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 3.89
    Distribution: 31/03 and 30/09
    Total Net Assets: $10.6 m
    Month and NAV in USD: 96.52
    Number of Holdings: 38
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 38.2

    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

    5.299% Petrobras 2025
    4.2%
    6.625% Tupy Overseas 2024
    3.9%
    7.25% JBS Investments 2024
    3.9%
    6.90% Yestar Healthcare 2021
    3.9%
    6.50% Global Ports 2023
    3.9%
    4.95% Gazprom Capital 2022
    3.8%
    6.375% Banco Santander 2167
    3.7%
    4.95% Veon Holdings 2024
    3.7%
    8.125% Global Liman 2021
    3.7%
    6.50% Minerva 2026
    3.6%

    Top Holdings by Country*

    Brazil
    13.8%
    China
    13.0%
    Russia
    11.4%
    Malta (incl. cash)
    9.3%
    Turkey
    9.1%
    Indonesia
    6.9%
    Germany
    5.8%
    Mexico
    5.5%
    Spain
    4.4%
    United States
    3.9%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Consumer Staples
    22.4%
    Financials
    18.1%
    Asset 7
    Communications
    12.8%
    Consumer Discretionary
    11.2%
    Energy
    10.0%
    Government
    7.7%
    *excluding exposures to CIS

    Asset Allocation

    Cash 9.4%
    Bonds (incl. ETFs) 88.5%
    Equities (incl. ETFs) 2.1%

    Maturity Buckets*

    75.1%
    0-5 Years
    11.4%
    5-10 Years
    2.0%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    3.08%

    2018

    -6.16%

    2017***

    -0.22%

    1-month

    3.08%

    3-month

    3.40%

    Inception

    -3.48%

    *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 92.9%
    Euro 7.1%
    TRY 0.0%
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