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

June 2021

The phrase “a lot may happen in a year” seems fitting for both financial markets and economic data. Financial markets, then recovering from significant declines, have improved. Equity markets headed to all-time highs while credit markets, previously witnessing credit spreads reaching significant highs of over 1000bps, recouped. Economic data, dampened as coronavirus-inflicted restrictions weighed, improved.

In June, economic data, in line with expectations maintained its recent pace, proving strong. The vaccination rollout in many developed countries, being well underway, allowing for the unlocking of economies and a gradual return to normality, combined with sizeable fiscal support is facilitating a big bounce in economic activity. A scenario everyone has longed for. The pick-up in economic activity has however, been partly overshadowed by a sharp pickup in inflation and a rising concern that this could lead to central banks withdrawing some of their stimulatory policies.

Real world data on vaccine efficacy continues to be largely positive, with hospitalisations remaining largely low in those countries where the vaccine rollout has progressed far enough to protect the most vulnerable age groups. The large divide between developed and emerging economies is now evermore apparent, as many European countries plan their summer re-opening, while the tragic health crisis in India continues, and underlining the need for a rapid rollout of vaccines on a global scale.

From the data front, the Euro area economic activity showed signs of a recovery. The long awaited pick-up in services across Europe continued to transpire, while factory activity maintained its upward trajectory.

In June, the Eurozone Manufacturing PMI was revised higher to a new record high of 63.4, from a preliminary estimate of 63.1. The rise marked the twelfth successive month of expansion within the manufacturing sector. Meanwhile, services – previously posing a drag on the Euro area’s economic recovery, rose to 58.3, from a preliminary estimate of 58.0, signalling the steepest pace of expansion in the services sector since July 2007. This, largely due to the easing of coronavirus-induced measures in many member states. Business confidence on the Euro area’s future direction was the best since August 2000.

From the data front, US nonfarm payrolls posted the strongest job growth in 10 months, totalling 850k, a figure well above market forecasts of 700k. Labour shortages continued to weigh on capacity production as many companies struggle to increase their workforce as enhanced unemployment benefits, ongoing child care responsibilities, and health concerns continue to discourage some workers to seek employment. Meanwhile, Annual inflation rate in the U.S. soared to 5.4 per cent in June, from 5.0 per cent in the previous month and well above market forecasts of 4.9 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. Meanwhile, high commodity prices, supply disruptions, and higher wages as companies grapple with a labour shortage, continue to weigh on the Consumer Price Index (CPI).

Yields on Europe’s most sought after benchmark; the 10-year German Bund, closed lower than the previous month at -0.209% compared to -0.188% the previous month. Similarly, Italy’s 10-year sovereign yield closed the month lower at 0.818% compared to 0.908% in May. The Spanish 10-year closed marginally wider at 0.411%.

Albeit underperforming US corporate credit, European credit generated positive returns in June. For the month, European Investment grade (the highest quality bonds as determined by a credit rating agency), aided by falling yields, generated positive returns, while high yield corporate credit (more speculative bonds as determined by a credit rating agency) continued to benefit from the economic recovery and improving credit fundamentals.

On the equity side, US equities gained 2.22% on expectation of stronger economic growth. Meanwhile in Europe, the EuroStoxx 50 and the DAX rose 0.61% and 0.71%, respectively, as vaccination campaigns continued to accelerate. The coronavirus vaccination programmes in Europe have seemingly gained track, and is now catching up with the US and the UK, the latter being among the first to initiate its vaccination programme.

In the month of June, the CC Global Balanced Income Fund increased by 0.99%. Throughout the month the Manager continued to seek pockets of value by looking into attractive equity and credit stories.

Going forward, the Manager will continue to assess the emerging market space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s accommodative stance.

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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)*

25.09%

*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: 11.83
Number of Holdings: 39
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 37.3

Performance To Date (EUR)

Top 10 Holdings

iShares Core S&P 500
4.6%
BMIT Technologies plc
4.6%
ASML Holding NV
4.4%
L'Oreal
3.7%
6% Raiffeisen Bank perp
3.5%
6.75% Garfunkelux HoldCo 2025
3.3%
4.75% Banco Santander SA perp
3.3%
SAP SE
3.3%
Volkswagen AG
3.3%
4% Chemours Co 2026
3.3%

Major Sector Breakdown

Financials
18.9%
ETFs
16.1%
Information Technology
14.8%
Materials
8.5%
Consumer Discretionary
7.1%
Funds
6.9%

Maturity Buckets

17.4%
0-5 Years
12.7%
5-10 Years
6.8%
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
23.1%
United States
15.3%
Malta
13.0%
Luxembourg
7.8%
Brazil
6.0%
Netherlands
6.0%
China
5.8%
France
3.7%
Austria
3.5%
Spain
3.3%
*including exposures to ETFs

Asset Allocation*

Cash 6.3%
Bonds 38.6%
Equities 55.1%
*including exposures to ETFs

Performance History (EUR)*

YTD

10.46%

2020

2.52%

2019

14.90%

1-month

1.02%

3-month

3.68%

Annualised Since Inception*

8.96%

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

Currency Allocation

Euro 70.4%
USD 27.6%
GBP 2.0%
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

    June 2021

    The phrase “a lot may happen in a year” seems fitting for both financial markets and economic data. Financial markets, then recovering from significant declines, have improved. Equity markets headed to all-time highs while credit markets, previously witnessing credit spreads reaching significant highs of over 1000bps, recouped. Economic data, dampened as coronavirus-inflicted restrictions weighed, improved.

    In June, economic data, in line with expectations maintained its recent pace, proving strong. The vaccination rollout in many developed countries, being well underway, allowing for the unlocking of economies and a gradual return to normality, combined with sizeable fiscal support is facilitating a big bounce in economic activity. A scenario everyone has longed for. The pick-up in economic activity has however, been partly overshadowed by a sharp pickup in inflation and a rising concern that this could lead to central banks withdrawing some of their stimulatory policies.

    Real world data on vaccine efficacy continues to be largely positive, with hospitalisations remaining largely low in those countries where the vaccine rollout has progressed far enough to protect the most vulnerable age groups. The large divide between developed and emerging economies is now evermore apparent, as many European countries plan their summer re-opening, while the tragic health crisis in India continues, and underlining the need for a rapid rollout of vaccines on a global scale.

    From the data front, the Euro area economic activity showed signs of a recovery. The long awaited pick-up in services across Europe continued to transpire, while factory activity maintained its upward trajectory.

    In June, the Eurozone Manufacturing PMI was revised higher to a new record high of 63.4, from a preliminary estimate of 63.1. The rise marked the twelfth successive month of expansion within the manufacturing sector. Meanwhile, services – previously posing a drag on the Euro area’s economic recovery, rose to 58.3, from a preliminary estimate of 58.0, signalling the steepest pace of expansion in the services sector since July 2007. This, largely due to the easing of coronavirus-induced measures in many member states. Business confidence on the Euro area’s future direction was the best since August 2000.

    From the data front, US nonfarm payrolls posted the strongest job growth in 10 months, totalling 850k, a figure well above market forecasts of 700k. Labour shortages continued to weigh on capacity production as many companies struggle to increase their workforce as enhanced unemployment benefits, ongoing child care responsibilities, and health concerns continue to discourage some workers to seek employment. Meanwhile, Annual inflation rate in the U.S. soared to 5.4 per cent in June, from 5.0 per cent in the previous month and well above market forecasts of 4.9 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. Meanwhile, high commodity prices, supply disruptions, and higher wages as companies grapple with a labour shortage, continue to weigh on the Consumer Price Index (CPI).

    Yields on Europe’s most sought after benchmark; the 10-year German Bund, closed lower than the previous month at -0.209% compared to -0.188% the previous month. Similarly, Italy’s 10-year sovereign yield closed the month lower at 0.818% compared to 0.908% in May. The Spanish 10-year closed marginally wider at 0.411%.

    Albeit underperforming US corporate credit, European credit generated positive returns in June. For the month, European Investment grade (the highest quality bonds as determined by a credit rating agency), aided by falling yields, generated positive returns, while high yield corporate credit (more speculative bonds as determined by a credit rating agency) continued to benefit from the economic recovery and improving credit fundamentals.

    On the equity side, US equities gained 2.22% on expectation of stronger economic growth. Meanwhile in Europe, the EuroStoxx 50 and the DAX rose 0.61% and 0.71%, respectively, as vaccination campaigns continued to accelerate. The coronavirus vaccination programmes in Europe have seemingly gained track, and is now catching up with the US and the UK, the latter being among the first to initiate its vaccination programme.

    In the month of June, the CC Global Balanced Income Fund increased by 0.99%. Throughout the month the Manager continued to seek pockets of value by looking into attractive equity and credit stories.

    Going forward, the Manager will continue to assess the emerging market space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s accommodative stance.

  • 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)*

    25.09%

    *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: 11.83
    Number of Holdings: 39
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 37.3

    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

    iShares Core S&P 500
    4.6%
    BMIT Technologies plc
    4.6%
    ASML Holding NV
    4.4%
    L'Oreal
    3.7%
    6% Raiffeisen Bank perp
    3.5%
    6.75% Garfunkelux HoldCo 2025
    3.3%
    4.75% Banco Santander SA perp
    3.3%
    SAP SE
    3.3%
    Volkswagen AG
    3.3%
    4% Chemours Co 2026
    3.3%

    Top Holdings by Country*

    Germany
    23.1%
    United States
    15.3%
    Malta
    13.0%
    Luxembourg
    7.8%
    Brazil
    6.0%
    Netherlands
    6.0%
    China
    5.8%
    France
    3.7%
    Austria
    3.5%
    Spain
    3.3%
    *including exposures to ETFs

    Major Sector Breakdown

    Financials
    18.9%
    ETFs
    16.1%
    Information Technology
    14.8%
    Materials
    8.5%
    Consumer Discretionary
    7.1%
    Funds
    6.9%

    Asset Allocation*

    Cash 6.3%
    Bonds 38.6%
    Equities 55.1%
    *including exposures to ETFs

    Maturity Buckets

    17.4%
    0-5 Years
    12.7%
    5-10 Years
    6.8%
    10 Years+

    Performance History (EUR)*

    YTD

    10.46%

    2020

    2.52%

    2019

    14.90%

    1-month

    1.02%

    3-month

    3.68%

    Annualised Since Inception*

    8.96%

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

    Credit Ratings*

    *excluding exposures to ETFs

    Currency Allocation

    Euro 70.4%
    USD 27.6%
    GBP 2.0%
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