Investment Objectives
The Sub-Fund aims to maximise the total level of return through investment, in a diversified portfolio of Emerging Market (“EM”) Corporate and Government fixed income securities as well as up to 15% of the Net Assets of the Sub-Fund in EM equities. In pursuing this objective, the Investment Manager shall invest primarily in a diversified portfolio of EM bonds rated at the time of investment “BBB+” to “CCC+” by S&P, or in bonds determined to be of comparable quality. The Fund can also invest up to 10% of its assets in Non-Rated bond issues and up to 30% of its assets in Non-EM issuers.
The Fund is actively managed, not managed by reference to any index.
The Fund is classified under Article 6 of the SFDR meaning that the investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.
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
A quick introduction to our Malta Government Bond Fund.
Key Facts & Performance
Fund Manager
Jordan Portelli
Jordan is CIO at CC Finance Group. He has extensive experience in research and portfolio management with various institutions. Today he is responsible of the group’s investment strategy and manages credit and multi-asset strategies.
PRICE (USD)
$
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
$3000
FUND TYPE
UCITS
BASE CURRENCY
USD
RETURN (SINCE INCEPTION)*
-10.81%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021234
Bloomberg Ticker: CCEMBFB MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.03%
Exit Charge: None
Distribution Yield (%): 4.5
Underlying Yield (%): 5.42
Distribution: 31/03 and 30/09
Total Net Assets: $10.1 mn
Month end NAV in USD: 71.7
Number of Holdings: 47
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 37.0
Performance To Date (USD)
Top 10 Holdings
5.0%
3.9%
3.9%
3.9%
3.8%
3.6%
3.5%
3.3%
3.1%
3.0%
Major Sector Breakdown*
Government
12.3%
Materials
9.5%
Financials
6.5%

Funds
5.0%
Consumer Discretionary
4.0%
Utilites
3.9%
Maturity Buckets*
Credit Ratings
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
20.5%
16.6%
11.7%
9.9%
6.0%
5.5%
5.5%
3.9%
3.9%
3.3%
Asset Allocation
Performance History (EUR)*
YTD
-0.14%
2022
-13.20%
2021
0.24%
2020
-0.70%
2019
10.40%
Annualised Since Inception****
-2.06%
Currency Allocation
Interested in this product?
-
Investment Objectives
The Sub-Fund aims to maximise the total level of return through investment, in a diversified portfolio of Emerging Market (“EM”) Corporate and Government fixed income securities as well as up to 15% of the Net Assets of the Sub-Fund in EM equities. In pursuing this objective, the Investment Manager shall invest primarily in a diversified portfolio of EM bonds rated at the time of investment “BBB+” to “CCC+” by S&P, or in bonds determined to be of comparable quality. The Fund can also invest up to 10% of its assets in Non-Rated bond issues and up to 30% of its assets in Non-EM issuers.
The Fund is actively managed, not managed by reference to any index.
The Fund is classified under Article 6 of the SFDR meaning that the investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.
-
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
-
Commentary
April 2023
Introduction
Economic data released in April confirmed China’s reopening-driven rebound is progressing notably well with services leading the recovery. Indeed, the Chinese economy advanced 4.5% year-on-year in Q1 2023, accelerating from a 2.9% growth in Q4 and exceeding market estimates of 4%. Such growth, was the strongest pace of expansion since Q1 2022, amid efforts from Beijing to spur a post-pandemic recovery. Despite an encouraging macroeconomic backdrop, concerns surrounding geopolitical tensions overshadowed, hindering emerging market credit performance.
In fixed income markets, bond yields remained largely unchanged. Emerging market corporate bonds headed lower, registering a negative performance for the month; c. -0.31%.
Market environment and performance
From the data front in the emerging market world, leading indicators, particularly PMI data in China continued to portray a more benevolent economic scenario as the abrupt shift on strict coronavirus policies filtered through. In April, China’s composite PMI reading, pointed to a 3-month low, still an expansion (53.6 v 54.5 in March). Manufacturing fell (49.5 v 50.0 in March), the first contraction in factory activity since January amid an ongoing property market downturn and fears of a global slowdown. Services, boosted by an increase in new orders and foreign sales, declined, yet remained in expansionary territory (56.4 v 57.8 in March).
Latin America’s largest economy; Brazil, private sector business activity edged marginally higher (51.8 v 50.7 in March) – a second successive expansion in business activity, aided by services (54.5 v 51.8 in March) which was the primary driver of growth. Manufacturing fell (44.3 v 47.0 in March), marking the sixth consecutive period of contraction in Brazilian factory activity. Meanwhile, India too registered an expansion in its business activity, spurred by quicker expansions at goods producers and service providers. New orders rose the most in almost 13 years, reflecting faster increases in new business, both the manufacturing and service sectors. Meanwhile, job creation across the private sector remained mild, with the rates of growth broadly similar at manufacturing firms and their services counterparts.
Price pressures in EM markets have generally continued to show signs of easing. In Brazil, annual inflation eased to 4.65% in March, the lowest since January 2021, in line with market estimates, and the first time in over two years were the data point came in within the central bank’s 1.75-4.75% target range. Similarly, Mexico saw price pressures declining to 6.85%, the lowest since end of 2021 following a fall in energy prices, food, non-alcoholic beverages, and transportation.
Fund performance
In the month of April, the CC Emerging Market Bond Fund realized a gain of 1.03%. Throughout the month, the Manager increased its exposure to sovereign bonds, namely through the Republic of Colombia and US short-term treasuries.
Market and investment outlook
Optimism in China; a result of the moves taken by Xi Jinping’s regime to alleviate the economy through easing of strict coronavirus restrictions imposed, have at the start of the year proved benevolent, leading to an encouraging macroeconomic backdrop. Such backdrop was however overshadowed as geopolitical tensions, notably between US and China, resurfaced and lack of clarity on the government’s plans to support economic growth, remain unclear. In most LatAm countries, headline inflation continued to decelerate, but core inflation still remains high and sticky, pushing central banks to stay hawkish.
In terms of bond picking, the Manager will continue to monitor the market environment and take opportunities in attractive credit stories which should continue to add value to the portfolio. The widening observed in corporate credit spreads over the previous weeks have indeed posed opportunities, presenting attractive entry points to yield capital appreciation.
-
Key facts & performance
Fund Manager
Jordan Portelli
Jordan is CIO at CC Finance Group. He has extensive experience in research and portfolio management with various institutions. Today he is responsible of the group’s investment strategy and manages credit and multi-asset strategies.
PRICE (USD)
$
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
$3000
FUND TYPE
UCITS
BASE CURRENCY
USD
RETURN (SINCE INCEPTION)*
-10.81%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021234
Bloomberg Ticker: CCEMBFB MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.03%
Exit Charge: None
Distribution Yield (%): 4.5
Underlying Yield (%): 5.42
Distribution: 31/03 and 30/09
Total Net Assets: $10.1 mn
Month end NAV in USD: 71.7
Number of Holdings: 47
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 37.0
Performance To Date (USD)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
iShares JPM USD EM Bond5.0%
5.8% Oryx Funding ltd 20313.9%
iShares JPM USD EM Corp Bond3.9%
5.45% Cemex SAB DE CV 20293.9%
4.375% Freeport-McMoran Inc 20283.8%
6.625% NBM US Holdings Inc 20293.6%
5.8% Turkcell 20283.5%
4% HSBC Holdings plc perp3.3%
4.75% Banco Santander SA perp3.1%
5.299% Petrobras Global Fin 20253.0%
Top Holdings by Country*
Malta (incl. Cash)20.5%
United States16.6%
Brazil11.7%
Mexico9.9%
Oman6.0%
India5.5%
Turkey5.5%
China3.9%
Indonesia3.9%
Great Britain3.3%
*including exposures to CISMajor Sector Breakdown*
Government
12.3%
Materials
9.5%
Financials
6.5%
Funds
5.0%
Consumer Discretionary
4.0%
Utilites
3.9%
*excluding exposures to CISAsset Allocation
Cash 8.1%Bonds (incl. ETFs) 91.9%Maturity Buckets*
48.8%0-5 Years25.7%5-10 Years8.5%10 Years+*based on the Next Call DatePerformance History (EUR)*
YTD
-0.14%
2022
-13.20%
2021
0.24%
2020
-0.70%
2019
10.40%
Annualised Since Inception****
-2.06%
* The USD Distributor Share Class (Class B) 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.*** Returns quoted net of TER. Entry and exit charges may reduce returns for investors.**** The Annualised rate is an indication of the average growth of the Fund over one year. The value of the investment and the income yield derived from the investment, if any, may go down as well as up and past performance is not necessarily indicative of future performance, nor a reliable guide to future performance. Hence returns may not be achieved and you may lose all or part of your investment in the Fund. Currency fluctuations may affect the value of investments and any derived income.Currency Allocation
USD 95.7%Euro 4.3% -
Downloads
Commentary
April 2023
Introduction
Economic data released in April confirmed China’s reopening-driven rebound is progressing notably well with services leading the recovery. Indeed, the Chinese economy advanced 4.5% year-on-year in Q1 2023, accelerating from a 2.9% growth in Q4 and exceeding market estimates of 4%. Such growth, was the strongest pace of expansion since Q1 2022, amid efforts from Beijing to spur a post-pandemic recovery. Despite an encouraging macroeconomic backdrop, concerns surrounding geopolitical tensions overshadowed, hindering emerging market credit performance.
In fixed income markets, bond yields remained largely unchanged. Emerging market corporate bonds headed lower, registering a negative performance for the month; c. -0.31%.
Market environment and performance
From the data front in the emerging market world, leading indicators, particularly PMI data in China continued to portray a more benevolent economic scenario as the abrupt shift on strict coronavirus policies filtered through. In April, China’s composite PMI reading, pointed to a 3-month low, still an expansion (53.6 v 54.5 in March). Manufacturing fell (49.5 v 50.0 in March), the first contraction in factory activity since January amid an ongoing property market downturn and fears of a global slowdown. Services, boosted by an increase in new orders and foreign sales, declined, yet remained in expansionary territory (56.4 v 57.8 in March).
Latin America’s largest economy; Brazil, private sector business activity edged marginally higher (51.8 v 50.7 in March) – a second successive expansion in business activity, aided by services (54.5 v 51.8 in March) which was the primary driver of growth. Manufacturing fell (44.3 v 47.0 in March), marking the sixth consecutive period of contraction in Brazilian factory activity. Meanwhile, India too registered an expansion in its business activity, spurred by quicker expansions at goods producers and service providers. New orders rose the most in almost 13 years, reflecting faster increases in new business, both the manufacturing and service sectors. Meanwhile, job creation across the private sector remained mild, with the rates of growth broadly similar at manufacturing firms and their services counterparts.
Price pressures in EM markets have generally continued to show signs of easing. In Brazil, annual inflation eased to 4.65% in March, the lowest since January 2021, in line with market estimates, and the first time in over two years were the data point came in within the central bank’s 1.75-4.75% target range. Similarly, Mexico saw price pressures declining to 6.85%, the lowest since end of 2021 following a fall in energy prices, food, non-alcoholic beverages, and transportation.
Fund performance
In the month of April, the CC Emerging Market Bond Fund realized a gain of 1.03%. Throughout the month, the Manager increased its exposure to sovereign bonds, namely through the Republic of Colombia and US short-term treasuries.
Market and investment outlook
Optimism in China; a result of the moves taken by Xi Jinping’s regime to alleviate the economy through easing of strict coronavirus restrictions imposed, have at the start of the year proved benevolent, leading to an encouraging macroeconomic backdrop. Such backdrop was however overshadowed as geopolitical tensions, notably between US and China, resurfaced and lack of clarity on the government’s plans to support economic growth, remain unclear. In most LatAm countries, headline inflation continued to decelerate, but core inflation still remains high and sticky, pushing central banks to stay hawkish.
In terms of bond picking, the Manager will continue to monitor the market environment and take opportunities in attractive credit stories which should continue to add value to the portfolio. The widening observed in corporate credit spreads over the previous weeks have indeed posed opportunities, presenting attractive entry points to yield capital appreciation.