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

February 2019

In the first quarter of 2019, the Euro Stoxx 50 experienced a high positive retracement of 12.43% year to date, for multiple reasons.

On trade, progress seems to have been made this quarter between the US and China, a main contributor to the rally in the equity markets. We are of the view that an agreement will be signed.

On interest rates, there is some reason for optimism. The Fed Reserve has made a U-turn when it comes to interest rate hikes. The ECB on the other hand have introduced further expansionary policies.

On growth, the Chinese authorities are now stimulating domestic demand with a package of tax cuts, infrastructure investment and measures designed to support bank credit growth.

Easier monetary policy and less disruptive trade policies could continue to support markets in Q2 2019. Moreover, Brexit still remains the star of uncertainty having ended the month of March with the Parliament not agreeing with May’s divorce plan from the EU.

The quarter ended on a good note and the Investment Manager remains of the view that a Trade War agreement will be reached. In addition to, a strong manufacturing figure for China and the US for March reduced fears of a global recession. Also, the Fed and ECB being accommodative to the market remains to be of a benefit for equities.

For credit markets, the first quarter of 2019 boosted bond prices. US High Yield markets increased by 7.26%; European High Yield markets increased by 5.12%; Global Emerging Markets increased by 5.89%. The major contributors that kept bonds at an uptrend are the Feb and ECB announcing a dovish stance, news of President Trump and President Xi working on reading a Trade War agreement and China’s strong manufacturing data.

High Yield Bonds remain attractive due to current macro events and EMs remain to perform well.

The Investment Managers (IMs) have built positions in high conviction names in both credit and equities and further aims to include exposures that will benefit the portfolio from a Trade War agreement. 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

Mixed

MIN. INITIAL INVESTMENT

€2500

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

2.74%

*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: 1.99%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): N/A
Distribution: 30/11
Total Net Assets: €6.7 m
Month and NAV in EUR: 10.16
Number of Holdings: 45
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 35.8

Performance To Date (EUR)

Top 10 Holdings

ASML Holdings NV
5.5%
BMIT Technologies
4.8%
iShares MSCI EM Asia
4.7%
iShares EUR HY ETF
3.1%
4.00% Chemours 2026
3.0%
4.00% Ineos 2023
3.0%
Renault SA
2.9%
iShares USD HY ETF
2.9%
Lyxor EurStx600 Tech
2.9%
iShares Core S&P500
2.9%

Major Sector Breakdown

ETFs
27.4%
Financials
14.0%
Consumer Discretionary
12.9%
Information Technology
12.5%
Materials
11.2%
Consumer Staples
5.8%

Maturity Buckets

12.3%
0-5 Years
17.8%
5-10 Years
0.0%
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
24.3%
United States
12.5%
France
11.0%
Luxembourg
8.8%
Global
7.6%
Netherlands
7.0%
China
3.8%
Spain
2.8%
Brazil
2.7%
*including exposures to ETFs

Asset Allocation*

Cash 5.1%
Bonds 36.0%
Equities 59.3%
*including exposures to ETFs

Performance History (EUR)*

YTD

6.86%

2018

-3.86%

1-month

-0.39%

3-month

6.86%

6-month

N/A%

Inception*

2.74%

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

Currency Allocation

Euro 72.7%
USD 27.6%
GBP 0.1%
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

    February 2019

    In the first quarter of 2019, the Euro Stoxx 50 experienced a high positive retracement of 12.43% year to date, for multiple reasons.

    On trade, progress seems to have been made this quarter between the US and China, a main contributor to the rally in the equity markets. We are of the view that an agreement will be signed.

    On interest rates, there is some reason for optimism. The Fed Reserve has made a U-turn when it comes to interest rate hikes. The ECB on the other hand have introduced further expansionary policies.

    On growth, the Chinese authorities are now stimulating domestic demand with a package of tax cuts, infrastructure investment and measures designed to support bank credit growth.

    Easier monetary policy and less disruptive trade policies could continue to support markets in Q2 2019. Moreover, Brexit still remains the star of uncertainty having ended the month of March with the Parliament not agreeing with May’s divorce plan from the EU.

    The quarter ended on a good note and the Investment Manager remains of the view that a Trade War agreement will be reached. In addition to, a strong manufacturing figure for China and the US for March reduced fears of a global recession. Also, the Fed and ECB being accommodative to the market remains to be of a benefit for equities.

    For credit markets, the first quarter of 2019 boosted bond prices. US High Yield markets increased by 7.26%; European High Yield markets increased by 5.12%; Global Emerging Markets increased by 5.89%. The major contributors that kept bonds at an uptrend are the Feb and ECB announcing a dovish stance, news of President Trump and President Xi working on reading a Trade War agreement and China’s strong manufacturing data.

    High Yield Bonds remain attractive due to current macro events and EMs remain to perform well.

    The Investment Managers (IMs) have built positions in high conviction names in both credit and equities and further aims to include exposures that will benefit the portfolio from a Trade War agreement. 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

    Mixed

    MIN. INITIAL INVESTMENT

    €2500

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    2.74%

    *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: 1.99%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): N/A
    Distribution: 30/11
    Total Net Assets: €6.7 m
    Month and NAV in EUR: 10.16
    Number of Holdings: 45
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 35.8

    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 Holdings NV
    5.5%
    BMIT Technologies
    4.8%
    iShares MSCI EM Asia
    4.7%
    iShares EUR HY ETF
    3.1%
    4.00% Chemours 2026
    3.0%
    4.00% Ineos 2023
    3.0%
    Renault SA
    2.9%
    iShares USD HY ETF
    2.9%
    Lyxor EurStx600 Tech
    2.9%
    iShares Core S&P500
    2.9%

    Top Holdings by Country*

    Germany
    24.3%
    United States
    12.5%
    France
    11.0%
    Luxembourg
    8.8%
    Global
    7.6%
    Netherlands
    7.0%
    China
    3.8%
    Spain
    2.8%
    Brazil
    2.7%
    *including exposures to ETFs

    Major Sector Breakdown

    ETFs
    27.4%
    Financials
    14.0%
    Consumer Discretionary
    12.9%
    Information Technology
    12.5%
    Materials
    11.2%
    Consumer Staples
    5.8%

    Asset Allocation*

    Cash 5.1%
    Bonds 36.0%
    Equities 59.3%
    *including exposures to ETFs

    Maturity Buckets

    12.3%
    0-5 Years
    17.8%
    5-10 Years
    0.0%
    10 Years+

    Performance History (EUR)*

    YTD

    6.86%

    2018

    -3.86%

    1-month

    -0.39%

    3-month

    6.86%

    6-month

    N/A%

    Inception*

    2.74%

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

    Credit Ratings*

    *excluding exposures to ETFs

    Currency Allocation

    Euro 72.7%
    USD 27.6%
    GBP 0.1%
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