Investment Objectives

The Fund seeks to provide stable, long-term capital appreciation by investing in a diversified portfolio of local and international bonds, equities and other income-generating assets. The Investment Manager shall diversify the assets of the Fund among different asset classes. The manager may invest in both Investment Grade and High Yield bonds rated at the time of investment at least “B-” by S&P, or in bonds determined to be of comparable quality, provided that the Fund may invest up 10% in non-rated bonds, whilst maintain an exposure to direct rated bonds of at least 25% of the value of the Fund. Investments in equities may include but are not limited to dividend-paying securities, equities, exchange traded funds as well as through the use of Collective Investment Schemes.

 

Investor Profile

A typical investor in the CC Global  Balanced Income Fund is:

  • Seeking to achieve stable, long-term capital appreciation
  • Seeking an actively managed & diversified investment in equities and bonds as well as other income-generating assets of local and international issuers
  • Planning to hold their investment for the medium-to-long term

Fund Rules at a Glance

The Investment Manager (“We”) will adopt a flexible investment strategy which, amongst other things, will allow us to modify the asset allocation in line with our macroeconomic, investment and technical outlook.

  • We shall invest primarily in a diversified portfolio of listed transferable securities across a wide spectrum of industries and sectors primarily via bonds, equities and eligible ETFs. We may invest in these asset classes either directly or indirectly through UCITS Funds and/ or eligible non UCITS Funds
  • We intend to diversify the assets of the Sub-Fund broadly among countries, industries and sectors, but reserve the right to invest a substantial portion of the Sub-Fund’s assets in one or more countries (or regions) if economic and business conditions warrant such investments
  • Investments in equity securities may include, but are not limited to, dividend-paying securities, equities, ETFs and preferred shares of global issuers. At our discretion, we may also invest indirectly in equities and equity-related instruments through the use of collective investment schemes. The Sub-Fund will generally, but not exclusively, invest in blue chip issuers listed on Approved Regulated Markets, including equities listed on the Malta Stock Exchange, where applicable
  • We shall manage the credit risk and will aim to manage interest rate risk through credit analysis and credit diversity. We may invest in both investment grade (corporate and sovereign) and high yield bonds that have a credit rating of at least “B-” by S&P (or rating equivalent issued by other reputable rating agencies) at the time of investment, provided that the Sub-Fund may invest a maximum of 10% of its assets in non-rated debt securities, including those listed on the Malta Stock Exchange. We will, at all times, maintain an exposure to direct rated bonds, whether investment grade or high yield, of at least 25% of the value of the Sub-Fund
  • For temporary or defensive purposes, the Sub-Fund may invest in short-term fixed income instruments, money market funds, cash and cash equivalents. The Sub-Fund may also hold cash and cash equivalents on an ancillary basis or cash management purposes, pending investment in accordance with its Investment Policy and to meet operating expenses and redemption requests.The Sub-Fund may invest in Real Estate Investment Trusts (“REITs”) via UCITS-eligible ETFs and/or CIS and securities related to real assets (including but not limited to real estate, agriculture, and precious metals-related securities) such as equities, bonds, and ETFs as well as CISs as long as these constitute eligible assets under the UCITS Directive
  • The Sub-Fund may invest in options, futures and forwards for risk management and hedging purposes only (“Hedging Instruments”)
  • Other than any margins required for these Hedging Instruments, the Sub-Fund will not employ leverage

Commentary

August 2021

Since first detected in January 2020, the coronavirus pandemic and ensuing global response have dictated economic activity and markets way forward. Markets initially headed significantly lower as the economic landscape, following the imposition of movement restrictions, deteriorated. However, a concerted effort by both Central banks and governments led to what we are witnessing today – a robust economic recovery and upward trajectory in financial markets. 

From an economic viewpoint, the path towards a full recovery, proved bumpier than previously anticipated. A vaccination drive taking long to pick-up speed along with a more severe wave of infections, lessened the pace of the recovery. The outlook, albeit currently faced with a slowdown in growth and a rapid increase in infections, seems benevolent.

The Delta variant, first originated in India and considered to be significantly more transmissible than previous strains, is said to be behind the recent rapid rise in infections. Countries witnessing a rise in infection rate, led their authorities to re-think their way forward, with some resorting to a re-introduction of restrictive measures. Some, also announced booster programmes to deliver third doses to their population.

The Federal Reserve’s (Fed) annual Jackson Hole symposium was highly anticipated. Jerome Powell struck a cautious note in his statement, stating that while the US economy had made progress on some important targets, particularly on inflation, tapering too aggressively may derail progress at a sensitive time, reiterating a desire to see further progress in the labour market. Although broadly perceived as dovish (supporting low-interest rates and an expansionary monetary policy), Powell’s comments were in-line with expectations that tapering could begin this year. The boost to sentiment overshadowed worries over Hurricane Ida and the Delta variant.

Although the developed market world appears to be at or just past the peak rate of growth, economic data has largely remained positive.

From the data front, the Eurozone manufacturing PMI stood at 61.4, little-changed from a preliminary estimate of 61.5, but down from 62.8 in July. The reading marked the second successive month in which growth has slowed in the manufacturing segment, since June’s survey’s record expansion, amid signs of strong capacity constraints. Despite edging lower from the previous month’s 15-year high, services – previously posing a drag on the Euro area’s economic recovery, also remained in expansionary territory. Eurozone Services PMI dropped to 59.0, from July’s 59.8.

Eurozone inflation was estimated at 3 per cent in August of 2021, higher than July’s actual 2.2 per cent and above economist expectations of 2.7 per cent. July’s flash reading is the highest since November 2011. Month-on-month, inflation increased by 0.40 per cent, preliminary estimates showed.

Aggregate business activity in the U.S., as measured by the Composite Purchasing Managers Index (PMI), was confirmed at 55.4, down from July’s 59.9. The rate of expansion was the softest in 2021 amid a slower overall upturn stemmed from weaker expansions in the manufacturing and service sectors.

Annual inflation rate in the U.S. remained steady at 5.4 per cent. In 2021, inflation has largely been on the rise amid low base effects from an unprecedented 2020 and as the economic recovery picks up, restrictions ease, and demand surges amid widespread vaccination programmes and fiscal support. In regards to the labour market, the US economy added 235,000 jobs in August of 2021, the lowest in 7 months and significantly below forecasts of 750,000. A surge in Coronavirus infections is said to may have discouraged companies from hiring and workers from actively seeking employment. August’s jobs report saw wages rise by 0.6% month over month.

Albeit concerns over the Delta variant and signs of global growth momentum possibly easing in developed world, corporate credit largely performed well in August. European high yield outperformed its higher-rated counterparts, generating total positive returns as sovereign yields reversed some of the recent downward moves. Indeed, the 10-year German Bund and U.S. 10-year Treasury, closed the month higher at -0.39 and 1.31 per cent, 7 and 9bps higher, respectively. Earlier in the month, the yield on Europe’s most sought-after benchmark had touched six-month lows of -0.52 per cent amid concerns over a weaker global economic outlook due to coronavirus outbreaks and prospects of early tapering by the U.S. Federal Reserve. It is worth noting that the benchmark U.S. 10-year Treasury yield closed the month at a figure which remains significantly below high’s witnessed earlier this year, revolving above the 1.70 per cent levels.

In August, European and U.S. corporate credit moved relatively in tandem. High yield corporate credit, outperformed, generating total positive returns as European sovereign yields and Treasury yields reversed some of the recent downward moves. Over the stated period, European and U.S. investment grade lost 0.42 and 0.20 per cent, respectively, while, high yield names ended the month on a positive.

On the equity side, both European and U.S. equities ended the month higher, albeit witnessing some volatility. Jerome Powell’s cautious approach at the annual Jackson Hole symposium, pointing towards continued economic support, steered markets higher. The S&P 500 gained 3.04 per cent while the NASDAQ – having a larger tilt towards the technology sector, generated a 4.09 per cent total return. Meanwhile in Europe, the EuroStoxx 50 and the DAX rose 2.63 and 1.87 per cent, respectively, as vaccination campaigns and easing of coronavirus vaccinations continued to accelerate. The coronavirus vaccination programmes in Europe have seemingly gained track. Generally, vaccination rates across Europe have surpassed the US and the UK, the latter being among the first to initiate its vaccination programme.

In the month of August, the CC Global Balanced Income Fund increased by 1.87 per cent. On a year-to-date basis the sub-fund is performing strongly against its internal comparable benchmark, namely given its overweight position in equities and overweight positions within the HY space which contributed to an over 10 percent return in the first seven months of the year.

A Quick Introduction to Our Euro Equity Fund.

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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

Mixed

MIN. INITIAL INVESTMENT

€2500

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

25.20%

*View Performance History below
Inception Date: 30 Aug 2015
ISIN: MT7000014445
Bloomberg Ticker: CCGBIFA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.13%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): N/A
Distribution: N/A
Total Net Assets: €6.4 mn
Month end NAV in EUR: 12.52
Number of Holdings: 39
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.6

Performance To Date (EUR)

Top 10 Holdings

ASML Holding NV
5.3%
iShares Core S&P 500
4.8%
BMIT Technologies plc
4.6%
L'Oreal
3.7%
6% Raiffeisen Bank perp
3.6%
SAP SE
3.5%
6.75% Garfunkelux HoldCo 2025
3.3%
Volkswagen AG
3.3%
4.75% Banco Santander perp
3.3%
4% Chemours Co 2026
3.2%

Major Sector Breakdown

Financials
18.7%
Information Technology
16.2%
ETFs
15.8%
Materials
8.6%
Consumer Discretionary
7.1%
Funds
6.7%

Maturity Buckets

17.3%
0-5 Years
12.7%
5-10 Years
6.9%
10 Years+

Credit Ratings*

*excluding exposures to ETFs

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
23.7%
United States
15.8%
Malta
13.1%
Luxembourg
7.8%
Netherlands
6.8%
Brazil
5.9%
China
5.0%
France
3.7%
Austria
3.6%
Spain
3.3%
*including exposures to ETFs

Asset Allocation*

Cash 5.4%
Bonds 38.5%
Equities 56.1%
*including exposures to ETFs

Performance History (EUR)*

YTD

12.39%

2020

2.48%

2019

14.78%

1-month

1.87%

3-month

3.13%

Annualised Since Inception*

3.81%

*The Global Balanced Income Fund was launched on 30 August 2015.

Currency Allocation

Euro 71.9%
USD 26.3%
GBP 1.8%
Data for risk statistics is not available for this fund.

Interested in this product?

  • Investment Objectives

    The Fund seeks to provide stable, long-term capital appreciation by investing in a diversified portfolio of local and international bonds, equities and other income-generating assets. The Investment Manager shall diversify the assets of the Fund among different asset classes. The manager may invest in both Investment Grade and High Yield bonds rated at the time of investment at least “B-” by S&P, or in bonds determined to be of comparable quality, provided that the Fund may invest up 10% in non-rated bonds, whilst maintain an exposure to direct rated bonds of at least 25% of the value of the Fund. Investments in equities may include but are not limited to dividend-paying securities, equities, exchange traded funds as well as through the use of Collective Investment Schemes.

     

  • Investor profile

    A typical investor in the CC Global  Balanced Income Fund is:

    • Seeking to achieve stable, long-term capital appreciation
    • Seeking an actively managed & diversified investment in equities and bonds as well as other income-generating assets of local and international issuers
    • Planning to hold their investment for the medium-to-long term
    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

    • We shall invest primarily in a diversified portfolio of listed transferable securities across a wide spectrum of industries and sectors primarily via bonds, equities and eligible ETFs. We may invest in these asset classes either directly or indirectly through UCITS Funds and/ or eligible non UCITS Funds
    • We intend to diversify the assets of the Sub-Fund broadly among countries, industries and sectors, but reserve the right to invest a substantial portion of the Sub-Fund’s assets in one or more countries (or regions) if economic and business conditions warrant such investments
    • Investments in equity securities may include, but are not limited to, dividend-paying securities, equities, ETFs and preferred shares of global issuers. At our discretion, we may also invest indirectly in equities and equity-related instruments through the use of collective investment schemes. The Sub-Fund will generally, but not exclusively, invest in blue chip issuers listed on Approved Regulated Markets, including equities listed on the Malta Stock Exchange, where applicable
    • We shall manage the credit risk and will aim to manage interest rate risk through credit analysis and credit diversity. We may invest in both investment grade (corporate and sovereign) and high yield bonds that have a credit rating of at least “B-” by S&P (or rating equivalent issued by other reputable rating agencies) at the time of investment, provided that the Sub-Fund may invest a maximum of 10% of its assets in non-rated debt securities, including those listed on the Malta Stock Exchange. We will, at all times, maintain an exposure to direct rated bonds, whether investment grade or high yield, of at least 25% of the value of the Sub-Fund
    • For temporary or defensive purposes, the Sub-Fund may invest in short-term fixed income instruments, money market funds, cash and cash equivalents. The Sub-Fund may also hold cash and cash equivalents on an ancillary basis or cash management purposes, pending investment in accordance with its Investment Policy and to meet operating expenses and redemption requests.The Sub-Fund may invest in Real Estate Investment Trusts (“REITs”) via UCITS-eligible ETFs and/or CIS and securities related to real assets (including but not limited to real estate, agriculture, and precious metals-related securities) such as equities, bonds, and ETFs as well as CISs as long as these constitute eligible assets under the UCITS Directive
    • The Sub-Fund may invest in options, futures and forwards for risk management and hedging purposes only (“Hedging Instruments”)
    • Other than any margins required for these Hedging Instruments, the Sub-Fund will not employ leverage
  • Commentary

    August 2021

    Since first detected in January 2020, the coronavirus pandemic and ensuing global response have dictated economic activity and markets way forward. Markets initially headed significantly lower as the economic landscape, following the imposition of movement restrictions, deteriorated. However, a concerted effort by both Central banks and governments led to what we are witnessing today – a robust economic recovery and upward trajectory in financial markets. 

    From an economic viewpoint, the path towards a full recovery, proved bumpier than previously anticipated. A vaccination drive taking long to pick-up speed along with a more severe wave of infections, lessened the pace of the recovery. The outlook, albeit currently faced with a slowdown in growth and a rapid increase in infections, seems benevolent.

    The Delta variant, first originated in India and considered to be significantly more transmissible than previous strains, is said to be behind the recent rapid rise in infections. Countries witnessing a rise in infection rate, led their authorities to re-think their way forward, with some resorting to a re-introduction of restrictive measures. Some, also announced booster programmes to deliver third doses to their population.

    The Federal Reserve’s (Fed) annual Jackson Hole symposium was highly anticipated. Jerome Powell struck a cautious note in his statement, stating that while the US economy had made progress on some important targets, particularly on inflation, tapering too aggressively may derail progress at a sensitive time, reiterating a desire to see further progress in the labour market. Although broadly perceived as dovish (supporting low-interest rates and an expansionary monetary policy), Powell’s comments were in-line with expectations that tapering could begin this year. The boost to sentiment overshadowed worries over Hurricane Ida and the Delta variant.

    Although the developed market world appears to be at or just past the peak rate of growth, economic data has largely remained positive.

    From the data front, the Eurozone manufacturing PMI stood at 61.4, little-changed from a preliminary estimate of 61.5, but down from 62.8 in July. The reading marked the second successive month in which growth has slowed in the manufacturing segment, since June’s survey’s record expansion, amid signs of strong capacity constraints. Despite edging lower from the previous month’s 15-year high, services – previously posing a drag on the Euro area’s economic recovery, also remained in expansionary territory. Eurozone Services PMI dropped to 59.0, from July’s 59.8.

    Eurozone inflation was estimated at 3 per cent in August of 2021, higher than July’s actual 2.2 per cent and above economist expectations of 2.7 per cent. July’s flash reading is the highest since November 2011. Month-on-month, inflation increased by 0.40 per cent, preliminary estimates showed.

    Aggregate business activity in the U.S., as measured by the Composite Purchasing Managers Index (PMI), was confirmed at 55.4, down from July’s 59.9. The rate of expansion was the softest in 2021 amid a slower overall upturn stemmed from weaker expansions in the manufacturing and service sectors.

    Annual inflation rate in the U.S. remained steady at 5.4 per cent. In 2021, inflation has largely been on the rise amid low base effects from an unprecedented 2020 and as the economic recovery picks up, restrictions ease, and demand surges amid widespread vaccination programmes and fiscal support. In regards to the labour market, the US economy added 235,000 jobs in August of 2021, the lowest in 7 months and significantly below forecasts of 750,000. A surge in Coronavirus infections is said to may have discouraged companies from hiring and workers from actively seeking employment. August’s jobs report saw wages rise by 0.6% month over month.

    Albeit concerns over the Delta variant and signs of global growth momentum possibly easing in developed world, corporate credit largely performed well in August. European high yield outperformed its higher-rated counterparts, generating total positive returns as sovereign yields reversed some of the recent downward moves. Indeed, the 10-year German Bund and U.S. 10-year Treasury, closed the month higher at -0.39 and 1.31 per cent, 7 and 9bps higher, respectively. Earlier in the month, the yield on Europe’s most sought-after benchmark had touched six-month lows of -0.52 per cent amid concerns over a weaker global economic outlook due to coronavirus outbreaks and prospects of early tapering by the U.S. Federal Reserve. It is worth noting that the benchmark U.S. 10-year Treasury yield closed the month at a figure which remains significantly below high’s witnessed earlier this year, revolving above the 1.70 per cent levels.

    In August, European and U.S. corporate credit moved relatively in tandem. High yield corporate credit, outperformed, generating total positive returns as European sovereign yields and Treasury yields reversed some of the recent downward moves. Over the stated period, European and U.S. investment grade lost 0.42 and 0.20 per cent, respectively, while, high yield names ended the month on a positive.

    On the equity side, both European and U.S. equities ended the month higher, albeit witnessing some volatility. Jerome Powell’s cautious approach at the annual Jackson Hole symposium, pointing towards continued economic support, steered markets higher. The S&P 500 gained 3.04 per cent while the NASDAQ – having a larger tilt towards the technology sector, generated a 4.09 per cent total return. Meanwhile in Europe, the EuroStoxx 50 and the DAX rose 2.63 and 1.87 per cent, respectively, as vaccination campaigns and easing of coronavirus vaccinations continued to accelerate. The coronavirus vaccination programmes in Europe have seemingly gained track. Generally, vaccination rates across Europe have surpassed the US and the UK, the latter being among the first to initiate its vaccination programme.

    In the month of August, the CC Global Balanced Income Fund increased by 1.87 per cent. On a year-to-date basis the sub-fund is performing strongly against its internal comparable benchmark, namely given its overweight position in equities and overweight positions within the HY space which contributed to an over 10 percent return in the first seven months of the year.

  • 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

    Mixed

    MIN. INITIAL INVESTMENT

    €2500

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    25.20%

    *View Performance History below
    Inception Date: 30 Aug 2015
    ISIN: MT7000014445
    Bloomberg Ticker: CCGBIFA MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.13%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): N/A
    Distribution: N/A
    Total Net Assets: €6.4 mn
    Month end NAV in EUR: 12.52
    Number of Holdings: 39
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 38.6

    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

    ASML Holding NV
    5.3%
    iShares Core S&P 500
    4.8%
    BMIT Technologies plc
    4.6%
    L'Oreal
    3.7%
    6% Raiffeisen Bank perp
    3.6%
    SAP SE
    3.5%
    6.75% Garfunkelux HoldCo 2025
    3.3%
    Volkswagen AG
    3.3%
    4.75% Banco Santander perp
    3.3%
    4% Chemours Co 2026
    3.2%

    Top Holdings by Country*

    Germany
    23.7%
    United States
    15.8%
    Malta
    13.1%
    Luxembourg
    7.8%
    Netherlands
    6.8%
    Brazil
    5.9%
    China
    5.0%
    France
    3.7%
    Austria
    3.6%
    Spain
    3.3%
    *including exposures to ETFs

    Major Sector Breakdown

    Financials
    18.7%
    Information Technology
    16.2%
    ETFs
    15.8%
    Materials
    8.6%
    Consumer Discretionary
    7.1%
    Funds
    6.7%

    Asset Allocation*

    Cash 5.4%
    Bonds 38.5%
    Equities 56.1%
    *including exposures to ETFs

    Maturity Buckets

    17.3%
    0-5 Years
    12.7%
    5-10 Years
    6.9%
    10 Years+

    Performance History (EUR)*

    YTD

    12.39%

    2020

    2.48%

    2019

    14.78%

    1-month

    1.87%

    3-month

    3.13%

    Annualised Since Inception*

    3.81%

    *The Global Balanced Income Fund was launched on 30 August 2015.

    Credit Ratings*

    *excluding exposures to ETFs

    Currency Allocation

    Euro 71.9%
    USD 26.3%
    GBP 1.8%
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