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

September 2021

Policy action by the respective central bankers, sustainability in economic momentum, and inflation proposition – stemming from a reopening of economies, supply chain disruptions, and a commodity super-cycle, were undoubtedly the key themes in Q3 2021.

The role of central bankers and governments, have since the coronavirus pandemic broke, been crucial. In response to the ensuing economic disruptions, policy makers intervened, introducing from a monetary policy perspective; interest rate cuts and bond purchasing programmes. Governments, albeit generally constrained in terms of fiscal space, swiftly reacted, introducing fiscal stimulus. Monetary intervention allowed corporates to tap the primary market at low favourable rates while fiscal intervention allowed corporates to maintain their cash buffers and ultimately survive. The latter at the expense of increased debt levels, and thus rise in the ‘Debt-to-GDP’ metric. Central bankers were also clear on allowing the economy to turn hot, allowing inflation to temporarily persist.

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, giving rise to doubts about the sustainability of economic growth. While a slight deceleration in the pace of expansion is to be expected as economies normalise after the pandemic, the extent of such normalisation and sustainability in economic momentum remains in question.

In September, Eurozone Manufacturing PMI stood at 58.6, largely unchanged from a preliminary estimate of 58.7 yet notably lower from the previous month’s reading of 61.4, as rates of expansion in output, new orders, and employment, cooled. Albeit being the lowest since February 2021, September’s reading pointed to another month of strong improvement in operating conditions. Meanwhile, Eurozone Services PMI stood at 56.4 in September 2021, slightly higher when compared to preliminary expectations of 56.3 and lower than the previous month’s reading of 59.8.

Eurozone inflation was estimated at 3.4 per cent in September 2021, higher than August’s actual 3.0 per cent and above economist expectations of 3.3 per cent. September’s flash reading is the highest since November 2011. The rate of expansion would match the highest rate of inflation since before the global financial crisis in September 2008, raising concerns about the ECB’s narrative that recent price spikes are seen as temporary and that the economy requires low borrowing costs. Month-on-month, inflation increased by 0.50 per cent.

From the U.S., manufacturing PMI stood at 60.7 in September, upwardly revised from a preliminary estimate of 60.5, but down from 61.1 in the previous month. The reading marked an improvement in the health of the manufacturing sector, despite being the slowest since April. Despite rising markedly, production was often hampered by severe material and labour shortages, as supply bottlenecks worsened. Demand conditions softened from the peaks seen earlier in the year, but both domestic and foreign client orders rose at historically elevated rates. Albeit still portraying robust growth in services, the pullback in the rate of expansion observed in August eased into September. In the month, services PMI was revised higher to 54.9, from 54.4 in the previous month, yet lower from August’s 55.1. September’s reading pointed to the slowest growth in the services sector so far this year.

Annual inflation rate in the U.S. edged higher to 5.4 per cent in September. 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 194,000 jobs in September of 2021, the lowest this year and significantly below forecasts of 500,000. Job gains occurred in leisure and hospitality, professional and business services, retail trade, and transportation and warehousing. Meanwhile, employment declined sharply in public education and in health care.

In September the Federal Reserve (Fed) became increasingly hawkish suggesting that stimulus, notably asset purchases could start being reduced as early as November and possibly be wound up by mid-2022, earlier than initially anticipated. Following such signal, yields on the benchmark 10-year Treasury note soared to the 1.50 per cent levels. 

During the period under review, Investment grade bonds (the highest quality bonds as determined by a credit rating agency) were little changed, while European and U.S. high yield corporate credit generated total positive returns albeit reversing some of the gains witnessed. European investment grade saw a return of 0.07 per cent, while U.S. investment grade lost 0.06 per cent. In the more speculative segment, U.S. corporate credit outperformed its European counterparts, registering a return of 0.94 per cent against a 0.69 per cent gain. Emerging Market high yield, the worst performer for the third quarter of 2021, lost 2.29 per cent. 

On the equity side, both European and U.S. equities ended the month significantly lower, erasing the previous months gains – aided by the Fed’s dovish stance, signalling continued economic support. Sustainability in growth momentum and inflation concerns steered equity markets downwards. The S&P 500 lost 4.65 per cent while the NASDAQ – having a larger tilt towards the technology sector, saw a loss of 5.27 per cent. Meanwhile in Europe, the EuroStoxx 50 and the DAX declined 3.37 and 3.63 per cent, respectively, amid worries over supply chain disruptions and increasing energy prices.

In the month of September, the CC Global Balanced Income Fund dropped by 1.20 per cent. On a year-to-date basis the sub-fund is up 11.04 per cent, 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

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 (EUR)

ASSET CLASS

Mixed

MIN. INITIAL INVESTMENT

€2500

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

21.22%

*View Performance History below
Inception Date: 19 Nov 2018
ISIN: MT7000023891
Bloomberg Ticker: CCGBIFB MV
Entry Charge: From 0% up to 2.5%
Total Expense Ratio: 2.13%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): N/A
Distribution: 30/11
Total Net Assets: €6.3 mn
Month end NAV in EUR: 11.94
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
5.4%
iShares Core S&P 500
4.9%
BMIT Technologies plc
4.6%
6% Raiffeisen Bank perp
3.6%
L'Oreal
3.5%
6.75% Garfunkelux HoldCo 2025
3.4%
SAP SE
3.4%
4.75% Banco Santander perp
3.3%
4% Chemours Co 2026
3.3%
Volkswagen AG
3.2%

Major Sector Breakdown

Financials
18.9%
Information Technology
16.2%
ETFs
15.9%
Materials
8.7%
Funds
6.9%
Funds
6.3%

Maturity Buckets

16.8%
0-5 Years
12.8%
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
23.4%
United States
15.2%
Malta
13.2%
Luxembourg
8.0%
Netherlands
7.0%
Brazil
6.0%
China
5.0%
Austria
3.6%
France
3.5%
Spain
3.3%
*including exposures to ETFs

Asset Allocation*

Cash 5.8%
Bonds 38.3%
Equities 56.0%
*including exposures to ETFs

Performance History (EUR)*

YTD

7.03%

2020

2.52%

2019

14.90%

1-month

-1.24%

3-month

0.93%

Annualised Since Inception*

6.97%

*The Global Balanced Income Fund (Share Class B) was launched on 19 November 2018.

Currency Allocation

Euro 71.8%
USD 26.4%
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

    September 2021

    Policy action by the respective central bankers, sustainability in economic momentum, and inflation proposition – stemming from a reopening of economies, supply chain disruptions, and a commodity super-cycle, were undoubtedly the key themes in Q3 2021.

    The role of central bankers and governments, have since the coronavirus pandemic broke, been crucial. In response to the ensuing economic disruptions, policy makers intervened, introducing from a monetary policy perspective; interest rate cuts and bond purchasing programmes. Governments, albeit generally constrained in terms of fiscal space, swiftly reacted, introducing fiscal stimulus. Monetary intervention allowed corporates to tap the primary market at low favourable rates while fiscal intervention allowed corporates to maintain their cash buffers and ultimately survive. The latter at the expense of increased debt levels, and thus rise in the ‘Debt-to-GDP’ metric. Central bankers were also clear on allowing the economy to turn hot, allowing inflation to temporarily persist.

    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, giving rise to doubts about the sustainability of economic growth. While a slight deceleration in the pace of expansion is to be expected as economies normalise after the pandemic, the extent of such normalisation and sustainability in economic momentum remains in question.

    In September, Eurozone Manufacturing PMI stood at 58.6, largely unchanged from a preliminary estimate of 58.7 yet notably lower from the previous month’s reading of 61.4, as rates of expansion in output, new orders, and employment, cooled. Albeit being the lowest since February 2021, September’s reading pointed to another month of strong improvement in operating conditions. Meanwhile, Eurozone Services PMI stood at 56.4 in September 2021, slightly higher when compared to preliminary expectations of 56.3 and lower than the previous month’s reading of 59.8.

    Eurozone inflation was estimated at 3.4 per cent in September 2021, higher than August’s actual 3.0 per cent and above economist expectations of 3.3 per cent. September’s flash reading is the highest since November 2011. The rate of expansion would match the highest rate of inflation since before the global financial crisis in September 2008, raising concerns about the ECB’s narrative that recent price spikes are seen as temporary and that the economy requires low borrowing costs. Month-on-month, inflation increased by 0.50 per cent.

    From the U.S., manufacturing PMI stood at 60.7 in September, upwardly revised from a preliminary estimate of 60.5, but down from 61.1 in the previous month. The reading marked an improvement in the health of the manufacturing sector, despite being the slowest since April. Despite rising markedly, production was often hampered by severe material and labour shortages, as supply bottlenecks worsened. Demand conditions softened from the peaks seen earlier in the year, but both domestic and foreign client orders rose at historically elevated rates. Albeit still portraying robust growth in services, the pullback in the rate of expansion observed in August eased into September. In the month, services PMI was revised higher to 54.9, from 54.4 in the previous month, yet lower from August’s 55.1. September’s reading pointed to the slowest growth in the services sector so far this year.

    Annual inflation rate in the U.S. edged higher to 5.4 per cent in September. 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 194,000 jobs in September of 2021, the lowest this year and significantly below forecasts of 500,000. Job gains occurred in leisure and hospitality, professional and business services, retail trade, and transportation and warehousing. Meanwhile, employment declined sharply in public education and in health care.

    In September the Federal Reserve (Fed) became increasingly hawkish suggesting that stimulus, notably asset purchases could start being reduced as early as November and possibly be wound up by mid-2022, earlier than initially anticipated. Following such signal, yields on the benchmark 10-year Treasury note soared to the 1.50 per cent levels. 

    During the period under review, Investment grade bonds (the highest quality bonds as determined by a credit rating agency) were little changed, while European and U.S. high yield corporate credit generated total positive returns albeit reversing some of the gains witnessed. European investment grade saw a return of 0.07 per cent, while U.S. investment grade lost 0.06 per cent. In the more speculative segment, U.S. corporate credit outperformed its European counterparts, registering a return of 0.94 per cent against a 0.69 per cent gain. Emerging Market high yield, the worst performer for the third quarter of 2021, lost 2.29 per cent. 

    On the equity side, both European and U.S. equities ended the month significantly lower, erasing the previous months gains – aided by the Fed’s dovish stance, signalling continued economic support. Sustainability in growth momentum and inflation concerns steered equity markets downwards. The S&P 500 lost 4.65 per cent while the NASDAQ – having a larger tilt towards the technology sector, saw a loss of 5.27 per cent. Meanwhile in Europe, the EuroStoxx 50 and the DAX declined 3.37 and 3.63 per cent, respectively, amid worries over supply chain disruptions and increasing energy prices.

    In the month of September, the CC Global Balanced Income Fund dropped by 1.20 per cent. On a year-to-date basis the sub-fund is up 11.04 per cent, 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

    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 (EUR)

    ASSET CLASS

    Mixed

    MIN. INITIAL INVESTMENT

    €2500

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    21.22%

    *View Performance History below
    Inception Date: 19 Nov 2018
    ISIN: MT7000023891
    Bloomberg Ticker: CCGBIFB MV
    Entry Charge: From 0% up to 2.5%
    Total Expense Ratio: 2.13%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): N/A
    Distribution: 30/11
    Total Net Assets: €6.3 mn
    Month end NAV in EUR: 11.94
    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
    5.4%
    iShares Core S&P 500
    4.9%
    BMIT Technologies plc
    4.6%
    6% Raiffeisen Bank perp
    3.6%
    L'Oreal
    3.5%
    6.75% Garfunkelux HoldCo 2025
    3.4%
    SAP SE
    3.4%
    4.75% Banco Santander perp
    3.3%
    4% Chemours Co 2026
    3.3%
    Volkswagen AG
    3.2%

    Top Holdings by Country*

    Germany
    23.4%
    United States
    15.2%
    Malta
    13.2%
    Luxembourg
    8.0%
    Netherlands
    7.0%
    Brazil
    6.0%
    China
    5.0%
    Austria
    3.6%
    France
    3.5%
    Spain
    3.3%
    *including exposures to ETFs

    Major Sector Breakdown

    Financials
    18.9%
    Information Technology
    16.2%
    ETFs
    15.9%
    Materials
    8.7%
    Funds
    6.9%
    Funds
    6.3%

    Asset Allocation*

    Cash 5.8%
    Bonds 38.3%
    Equities 56.0%
    *including exposures to ETFs

    Maturity Buckets

    16.8%
    0-5 Years
    12.8%
    5-10 Years
    6.9%
    10 Years+

    Performance History (EUR)*

    YTD

    7.03%

    2020

    2.52%

    2019

    14.90%

    1-month

    -1.24%

    3-month

    0.93%

    Annualised Since Inception*

    6.97%

    *The Global Balanced Income Fund (Share Class B) was launched on 19 November 2018.

    Credit Ratings*

    *excluding exposures to ETFs

    Currency Allocation

    Euro 71.8%
    USD 26.4%
    GBP 1.8%
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