Investment Objectives

Diversifying into alternative asset classes is becoming increasingly important. With interest rates at all-time lows and investors seeking returns, equities are looking more attractive.  The CC Euro Equity Fund aims to achieve a higher level of return for investors by investing, mainly, in a diversified portfolio of blue-chip equities (such as stocks and shares).
 
The CC Euro equity fund invests in Blue Chip companies trading on major European markets. Blue Chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

Investor Profile

A typical investor in the CC Euro Equity Funds is:

  • Seeking to achieve capital growth over time.
  • Seeking an actively managed & diversified equity portfolio in European blue-chip companies

Fund Rules

The Investment Manager of the CC Euro Equity Fund has the duty to ensure that the underlying investments of the fund is well diversified.

The investment manager has to abide by a number of investment restrictions to safeguard the value of the assets of the fund. Some of the restrictions include:

  • The fund may not invest more than 10% of its assets in securities listed by the same body
  • The fund may not keep more than 10% of its assets on deposit with any one credit institution. This limit may be increased to 30% in respect of deposits with an Approved Institution
  • The fund may not invest more than 20% of its assets in any other funds
  • The fund may not carry out uncovered sales (naked short-selling) of securities or other financial instruments

Commentary

July 2019

For much of this year, equity markets have enjoyed a healthy climb, assisted by a dovish tilt from central banks, as well as the
possibility of a trade deal between the US and China. The mixed sentiment during July, led the stock market’s performance to remain
flat month on month whereas year to date, the SX5E is up 19.91%.

Markets saw a mixed sentiment throughout the whole of July; uncertainties revolving around the Fed’s decision to cut rates along
with ECB’s Mario Draghi hinting at easing were the stars of the month. Needless to say, investors were seen to take a cautious
approach during the month after the rally of June. By the end of July, the Fed cut rates by 25bps and Mario Draghi left rates
unchanged after markets had already priced in stimulus as at end July.

Specifically in the Eurozone area, Greece’s election proved to be a positive for the country as the New Democracy party rose to
power; the party has promised tax cuts financed by spending cuts in attempt to support growth. On another note, Italy hascontinued to avoid censure from Brussels over the size of its deficit In contrast, Brexit remains a major problem for Europe given
the new Prime Minister, Boris Johnson’s target to leave the EU by end October with or without a deal.

On a more general note, the ECB kept rates on hold with the main refinancing rate remaining at 0% and the deposit rate at -0.4
percent, but changed its forward guidance to say that it expects rates to remain the same or at lower levels at least through the
first half of 2020. The bank has also pointed that is already making preparations for more quantitative easing. Since markets had
already reacted positively to Draghi hinting to a July rate cut which led to a decrease in negative yields, yields made a U-turn after
the ECB suggested otherwise. Indeed, we saw the 10-year Bund tumbling to even lower negative levels of circa 0.44 percent from
the positive 0.2 percent levels in January and the negative 0.20 percent mid-month.

There were limited developments on the Trade War front apart from a meeting at end of July where it was agreed that talks would
resume in September. That being said, macroeconomic data in the U.S improved whereas China’s deteriorated. Due to this, the
People’s Bank of China (PBOC) has finally started to ease monetary policy conditions for consumers and businesses. In order to
maintain growth following the U.S tariffs, the PBOC produced a coordinated response in the form of liquidity stimulus and fiscal
measures. To underline its easing bias, the PBOC provided another 100bps cut to its reserve requirement ratio, injecting further
liquidity.

The Investment Manager (IM) remains of the opinion that names held in the fund have further to gain as we are in earnings season.
Nonetheless, investors should remain cautious due to the uncertainties from the Trade War. The IM has built positions in high
conviction names and further aims to benefit the portfolio by adapting to the market scenario. With this in mind, the IM is confident
that the stocks in the portfolio should generate alpha for the fund and boost performance.

Key Facts & Performance

Fund Manager

Kristian Camenzuli

Kristian is the Head of the Equity Desk at Calamatta Cuschieri which manages discretionary portfolios. He is also the lead manager of the CC Euro Equity Fund. Kristian sits on various investment committees. He is a regular contributor to the local press and investment seminars as well as a visiting lecturer at the University of Malta. He is CFA qualified and graduated with Honours in Economics from the University of Malta.

PRICE (EUR)

ASSET CLASS

Equity

MIN. INITIAL INVESTMENT

€2500

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

13.55%

*View Performance History below
Inception Date: 01 Nov 2013
ISIN: MT7000009031
Bloomberg Ticker: CCFEEAE MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.25%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): N/A
Distribution: N/A
Total Net Assets: €7.2 m
Month end NAV in EUR: 113.55
Number of Holdings: 24
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 51.1

Performance To Date (EUR)

Top 10 Holdings

Lyxor ETF Eurostoxx 600 H-care
6.9%
iShares Eur600 Oil&Gas
6.0%
Allianz SE
5.1%
Renault
5.0%
BMIT Technologies plc
4.9%
Deutsche Post
4.8%
L'Oreal
4.8%
iShares Eur600 BasicResources
4.4%
Lyxor ETF Eurostoxx 600 Tech
4.0%
Lyxor DAX ETF
3.3%

Major Sector Breakdown

ETFs
24.5%
Financials
17.5%
Consumer Staples
12.5%
Consumer Discretionary
11.9%
Information Technology
9.5%
Industrials
9.2%
Data for maturity buckets is not available for this fund.
Data for credit ratings is not available for this fund.

Risk & Reward Profile

1
2
3
4
5
6
7
Lower Risk

Potentialy Lower Reward

Higher Risk

Potentialy Higher Reward

Top Holdings by Country*

Germany
39.1%
France
33.0%
Malta
14.3%
United States
6.5%
Netherlands
4.6%
*including exposures to ETFs

Asset Allocation

Cash 9.4%
Equities 90.6%

Performance History (EUR)*

YTD

17.63%

1-month

-0.26%

3-month

-1.18%

6-month

10.07%

9-month

6.88%

Inception*

13.55%

*The Euro Equity Fund was launched on 31 October 2013.

Currency Allocation

Euro 91.0%
USD 9.0%
GBP 0.0%
Data for risk statistics is not available for this fund.

Interested in this product?

  • Investment Objectives

    Diversifying into alternative asset classes is becoming increasingly important. With interest rates at all-time lows and investors seeking returns, equities are looking more attractive.  The CC Euro Equity Fund aims to achieve a higher level of return for investors by investing, mainly, in a diversified portfolio of blue-chip equities (such as stocks and shares).
     
    The CC Euro equity fund invests in Blue Chip companies trading on major European markets. Blue Chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.
  • Investor profile

    A typical investor in the CC Euro Equity Funds is:

    • Seeking to achieve capital growth over time.
    • Seeking an actively managed & diversified equity portfolio in European blue-chip companies
    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

    • The fund may not invest more than 10% of its assets in securities listed by the same body
    • The fund may not keep more than 10% of its assets on deposit with any one credit institution. This limit may be increased to 30% in respect of deposits with an Approved Institution
    • The fund may not invest more than 20% of its assets in any other funds
    • The fund may not carry out uncovered sales (naked short-selling) of securities or other financial instruments
  • Commentary

    July 2019

    For much of this year, equity markets have enjoyed a healthy climb, assisted by a dovish tilt from central banks, as well as the
    possibility of a trade deal between the US and China. The mixed sentiment during July, led the stock market’s performance to remain
    flat month on month whereas year to date, the SX5E is up 19.91%.

    Markets saw a mixed sentiment throughout the whole of July; uncertainties revolving around the Fed’s decision to cut rates along
    with ECB’s Mario Draghi hinting at easing were the stars of the month. Needless to say, investors were seen to take a cautious
    approach during the month after the rally of June. By the end of July, the Fed cut rates by 25bps and Mario Draghi left rates
    unchanged after markets had already priced in stimulus as at end July.

    Specifically in the Eurozone area, Greece’s election proved to be a positive for the country as the New Democracy party rose to
    power; the party has promised tax cuts financed by spending cuts in attempt to support growth. On another note, Italy hascontinued to avoid censure from Brussels over the size of its deficit In contrast, Brexit remains a major problem for Europe given
    the new Prime Minister, Boris Johnson’s target to leave the EU by end October with or without a deal.

    On a more general note, the ECB kept rates on hold with the main refinancing rate remaining at 0% and the deposit rate at -0.4
    percent, but changed its forward guidance to say that it expects rates to remain the same or at lower levels at least through the
    first half of 2020. The bank has also pointed that is already making preparations for more quantitative easing. Since markets had
    already reacted positively to Draghi hinting to a July rate cut which led to a decrease in negative yields, yields made a U-turn after
    the ECB suggested otherwise. Indeed, we saw the 10-year Bund tumbling to even lower negative levels of circa 0.44 percent from
    the positive 0.2 percent levels in January and the negative 0.20 percent mid-month.

    There were limited developments on the Trade War front apart from a meeting at end of July where it was agreed that talks would
    resume in September. That being said, macroeconomic data in the U.S improved whereas China’s deteriorated. Due to this, the
    People’s Bank of China (PBOC) has finally started to ease monetary policy conditions for consumers and businesses. In order to
    maintain growth following the U.S tariffs, the PBOC produced a coordinated response in the form of liquidity stimulus and fiscal
    measures. To underline its easing bias, the PBOC provided another 100bps cut to its reserve requirement ratio, injecting further
    liquidity.

    The Investment Manager (IM) remains of the opinion that names held in the fund have further to gain as we are in earnings season.
    Nonetheless, investors should remain cautious due to the uncertainties from the Trade War. The IM has built positions in high
    conviction names and further aims to benefit the portfolio by adapting to the market scenario. With this in mind, the IM is confident
    that the stocks in the portfolio should generate alpha for the fund and boost performance.

  • Key facts & performance

    Fund Manager

    Kristian Camenzuli

    Kristian is the Head of the Equity Desk at Calamatta Cuschieri which manages discretionary portfolios. He is also the lead manager of the CC Euro Equity Fund. Kristian sits on various investment committees. He is a regular contributor to the local press and investment seminars as well as a visiting lecturer at the University of Malta. He is CFA qualified and graduated with Honours in Economics from the University of Malta.

    PRICE (EUR)

    ASSET CLASS

    Equity

    MIN. INITIAL INVESTMENT

    €2500

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    13.55%

    *View Performance History below
    Inception Date: 01 Nov 2013
    ISIN: MT7000009031
    Bloomberg Ticker: CCFEEAE MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.25%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): N/A
    Distribution: N/A
    Total Net Assets: €7.2 m
    Month end NAV in EUR: 113.55
    Number of Holdings: 24
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 51.1

    Performance To Date (EUR)

    Risk & Reward Profile

    1
    2
    3
    4
    5
    6
    7
    Lower Risk

    Potentialy Lower Reward

    Higher Risk

    Potentialy Higher Reward

    Top 10 Holdings

    Lyxor ETF Eurostoxx 600 H-care
    6.9%
    iShares Eur600 Oil&Gas
    6.0%
    Allianz SE
    5.1%
    Renault
    5.0%
    BMIT Technologies plc
    4.9%
    Deutsche Post
    4.8%
    L'Oreal
    4.8%
    iShares Eur600 BasicResources
    4.4%
    Lyxor ETF Eurostoxx 600 Tech
    4.0%
    Lyxor DAX ETF
    3.3%

    Top Holdings by Country*

    Germany
    39.1%
    France
    33.0%
    Malta
    14.3%
    United States
    6.5%
    Netherlands
    4.6%
    *including exposures to ETFs

    Major Sector Breakdown

    ETFs
    24.5%
    Financials
    17.5%
    Consumer Staples
    12.5%
    Consumer Discretionary
    11.9%
    Information Technology
    9.5%
    Industrials
    9.2%

    Asset Allocation

    Cash 9.4%
    Equities 90.6%

    Performance History (EUR)*

    YTD

    17.63%

    1-month

    -0.26%

    3-month

    -1.18%

    6-month

    10.07%

    9-month

    6.88%

    Inception*

    13.55%

    *The Euro Equity Fund was launched on 31 October 2013.

    Currency Allocation

    Euro 91.0%
    USD 9.0%
    GBP 0.0%
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