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

September 2019

In the emerging market world, investors continued to monitor the ongoing trade-war saga. As opposed to Europe and the U.S., EM debt outperformed its peers, as investors digested positively the decisions taken by monetary politicians and their more dovish stance. The compression in yields was also brought about by EM central banks following the Fed in cutting interest rates. China cut its 1 year loan prime rate to 4.2 percent, an all-time record low, while rate cuts were also seen in Brazil, Russia and Indonesia to name a few.

Leading indicators are showing signs of weakness, while capital spending and business confidence are falling sharply. That said, consumer spending, namely in the U.S., which accounts for more than two-thirds of GDP, continue to show remarkable strength and endurance. Thus, as long as the latter maintains its pace, we should continue to see some form of stabilization in economic data, while one should nevertheless be mindful of the possible prolonged trade war saga. The latter will undoubtedly be a drag globally, with EM also suffering the consequences. This will ultimately be reflected in global growth, given that today EM growth contributes to over 50 percent in weightings towards global growth.

In the month, EM debt recorded a +1.4 percent gain, while the Fund was up +0.4 percent reflecting the very cautious approach taken by the Investment Manager, given the current global uncertainties. The Investment Manager will continue to seek value, while being mindful of the market’s pressures currently being experienced due to the prolonged trade-war saga.

In the emerging market world, investors monitored closely the ongoing developments surrounding the trade war saga, and in line with the hunger for yield, we have seen sovereign emerging market debt tighten, following the compression experienced in U.S. Treasuries.

Specifically in Argentina, contrary to the polls, we saw a huge victory for the party challenging the current President Macri, pointing to a victory in the October elections. This victory punished the country’s currency, while triggering abnormal volatility in financial assets. Investors believe that a win for Fernandez could potentially put an end to free-market economic reforms and an IMF backed austerity plan. Due to this, Argentina was downgraded to CCC and caused a ripple effect in other EMs. Later in the month, Fernandez claimed that Argentina will find it hard to pay back the IMF loan and tried to renegotiate. A statement that continued to trigger volatility and more distress on assets, with the country once again approaching a default trigger.

In the month, Emerging markets gained 0.25 percent. Overall, Emerging markets continued to report a positive performance on a year to date basis, also coupled with the fact that yield is more attractive, while selectively fundamentals remain stronger.

The Investment Managers (IMs) believe that emerging market valuations possibly still offer value. In this regard, the Manager continues to opt for a bottom-up approach in order to seek attractive returns, while being mindful of the current volatile markets.

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)*

0.98%

*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021234
Bloomberg Ticker: CCEMBFB MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.02%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 5.020
Distribution: 31/03 and 30/09
Total Net Assets: $10.7 m
Month end NAV in USD: 101.
Number of Holdings: 38
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.4

Performance To Date (USD)

Top 10 Holdings

5.299% Petrobras 2025
4.5%
6.50% Global Ports 2023
4.0%
4.95% Veon Holdings 2024
3.9%
4.95% Gazprom Capital 2022
3.9%
6.625% Tupy Overseas 2024
3.8%
8.125% Global Liman 2021
3.6%
6.90% Yestar Healthcare 2021
3.5%
6.95% Moderland 2024
3.4%
5.00% Nidda 2025
3.1%
iShares JPM USD EM
2.9%

Major Sector Breakdown*

Consumer Staples
16.3%
Asset 7
Communications
13.6%
Government
13.4%
Financials
11.5%
Energy
11.2%
Consumer Discretionary
7.7%
*excluding exposures to CIS

Maturity Buckets*

66.3%
0-5 Years
10.8%
5-10 Years
5.8%
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
16.2%
Malta (incl. cash)
15.0%
China
12.7%
Russia
11.8%
Turkey
9.2%
Indonesia
7.1%
Netherlands
3.9%
Mexico
3.8%
Germany
3.1%
Argentina
3.0%
*including exposures to CIS, using look-through

Asset Allocation

Cash 12.0%
Bonds (incl. ETFs) 85.9%
Equities (incl. ETFs) 2.1%

Performance History (EUR)*

YTD

7.85%

2018

-6.16%

2017***

-0.22%

1-month

0.41%

3-month

-0.10%

Inception

0.98%

*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 91.7%
Euro 8.3%
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

    September 2019

    In the emerging market world, investors continued to monitor the ongoing trade-war saga. As opposed to Europe and the U.S., EM debt outperformed its peers, as investors digested positively the decisions taken by monetary politicians and their more dovish stance. The compression in yields was also brought about by EM central banks following the Fed in cutting interest rates. China cut its 1 year loan prime rate to 4.2 percent, an all-time record low, while rate cuts were also seen in Brazil, Russia and Indonesia to name a few.

    Leading indicators are showing signs of weakness, while capital spending and business confidence are falling sharply. That said, consumer spending, namely in the U.S., which accounts for more than two-thirds of GDP, continue to show remarkable strength and endurance. Thus, as long as the latter maintains its pace, we should continue to see some form of stabilization in economic data, while one should nevertheless be mindful of the possible prolonged trade war saga. The latter will undoubtedly be a drag globally, with EM also suffering the consequences. This will ultimately be reflected in global growth, given that today EM growth contributes to over 50 percent in weightings towards global growth.

    In the month, EM debt recorded a +1.4 percent gain, while the Fund was up +0.4 percent reflecting the very cautious approach taken by the Investment Manager, given the current global uncertainties. The Investment Manager will continue to seek value, while being mindful of the market’s pressures currently being experienced due to the prolonged trade-war saga.

    In the emerging market world, investors monitored closely the ongoing developments surrounding the trade war saga, and in line with the hunger for yield, we have seen sovereign emerging market debt tighten, following the compression experienced in U.S. Treasuries.

    Specifically in Argentina, contrary to the polls, we saw a huge victory for the party challenging the current President Macri, pointing to a victory in the October elections. This victory punished the country’s currency, while triggering abnormal volatility in financial assets. Investors believe that a win for Fernandez could potentially put an end to free-market economic reforms and an IMF backed austerity plan. Due to this, Argentina was downgraded to CCC and caused a ripple effect in other EMs. Later in the month, Fernandez claimed that Argentina will find it hard to pay back the IMF loan and tried to renegotiate. A statement that continued to trigger volatility and more distress on assets, with the country once again approaching a default trigger.

    In the month, Emerging markets gained 0.25 percent. Overall, Emerging markets continued to report a positive performance on a year to date basis, also coupled with the fact that yield is more attractive, while selectively fundamentals remain stronger.

    The Investment Managers (IMs) believe that emerging market valuations possibly still offer value. In this regard, the Manager continues to opt for a bottom-up approach in order to seek attractive returns, while being mindful of the current volatile markets.

  • 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)*

    0.98%

    *View Performance History below
    Inception Date: 02 Nov 2017
    ISIN: MT7000021234
    Bloomberg Ticker: CCEMBFB MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.02%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 5.020
    Distribution: 31/03 and 30/09
    Total Net Assets: $10.7 m
    Month end NAV in USD: 101.
    Number of Holdings: 38
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 36.4

    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
    4.5%
    6.50% Global Ports 2023
    4.0%
    4.95% Veon Holdings 2024
    3.9%
    4.95% Gazprom Capital 2022
    3.9%
    6.625% Tupy Overseas 2024
    3.8%
    8.125% Global Liman 2021
    3.6%
    6.90% Yestar Healthcare 2021
    3.5%
    6.95% Moderland 2024
    3.4%
    5.00% Nidda 2025
    3.1%
    iShares JPM USD EM
    2.9%

    Top Holdings by Country*

    Brazil
    16.2%
    Malta (incl. cash)
    15.0%
    China
    12.7%
    Russia
    11.8%
    Turkey
    9.2%
    Indonesia
    7.1%
    Netherlands
    3.9%
    Mexico
    3.8%
    Germany
    3.1%
    Argentina
    3.0%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Consumer Staples
    16.3%
    Asset 7
    Communications
    13.6%
    Government
    13.4%
    Financials
    11.5%
    Energy
    11.2%
    Consumer Discretionary
    7.7%
    *excluding exposures to CIS

    Asset Allocation

    Cash 12.0%
    Bonds (incl. ETFs) 85.9%
    Equities (incl. ETFs) 2.1%

    Maturity Buckets*

    66.3%
    0-5 Years
    10.8%
    5-10 Years
    5.8%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    7.85%

    2018

    -6.16%

    2017***

    -0.22%

    1-month

    0.41%

    3-month

    -0.10%

    Inception

    0.98%

    *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 91.7%
    Euro 8.3%
    TRY 0.0%
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