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

January 2021

After a strong start to the month, most equity markets gave up their gains as the month came to a close. Developed market equities ended the month down 1%, although emerging markets significantly outperformed, ending January up about 3%. Initially, the global roll out of vaccinations and the promise of further fiscal and monetary stimulus helped the market to overlook concerns about virus driven restrictions. Stimulus expectations rose after the surprise Democratic sweep in the run-off election for the two Senate seats in Georgia, which completed Biden’s blue wave.

Over the month though concerns about delays to the supply of vaccines to Europe increased, raising the possibility that the “bridge over troubled waters” might have to be longer than expected. A group of relatively small and heavily shorted stocks also rallied strongly as a group of retail investors coordinated a short squeeze, forcing some hedge funds to close out their shorts while also selling some of their long positions.

This technically driven sell-off helps explain the slump in equities towards the end of the month and, in our opinion, is not a reason for concern for long term investors given the likely strong rebound in growth that will accompany the rollout of vaccines. Despite delays in Europe the vaccine rollout is progressing well in the UK and US and there was positive news from both the Novavax and Johnson & Johnson vaccine trials, particularly in relation to preventing hospitalisation.

Within the HY asset space, U.S. high yield performed better than its European counterparts, returning 0.383 per cent. The asset class continued to benefit from the stimulus package and fed commitment to maintain rates low for the foreseeable future.

Robust economic data and a moderate winter wave of Covid infections continued to support risky assets in north Asia. Strong returns from Greater China contributed to the outperformance of emerging market equities.

The fund’s positioning continues to be more skewed towards equities, in line with the normalisation proposition for 2021. Selective sectors are still feeling the pinch from the pandemic, and will possibly offer an opportunity in the very near future on a clearer visibility of vaccine roll-out. The Manager will continue to seek opportunities in selective sectors which offer upside value and reduce exposures in sectors which have recovered strongly in 2020.

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)*

15.15%

*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: €6.4 mn
Month end NAV in EUR: 10.89
Number of Holdings: 43
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.3

Performance To Date (EUR)

Top 10 Holdings

ASML Holding NV
4.5%
BMIT Technologies plc
4.4%
Lyxor STX600 Ind Good & Serv
4.2%
iShares Core S&P 500
4.0%
6% Raiffeisen Bank 2169
3.4%
6.75% Garfunkelux 2025
3.3%
6.5% CMA CGM SA 2022
3.2%
4% Chemours 2026
3.2%
4.75% Banco Santander 2169
3.1%
Alibaba Group Holding
3.1%

Major Sector Breakdown

Financials
19.7%
ETFs
14.6%
Information Technology
14.0%
Industrials
8.3%
Materials
8.0%
Funds
7.6%

Maturity Buckets

16.6%
0-5 Years
14.7%
5-10 Years
7.6%
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
22.2%
Malta
14.7%
United States
11.7%
Luxembourg
8.5%
France
7.9%
Netherlands
6.0%
China
5.9%
Brazil
5.7%
Austria
3.4%
*including exposures to ETFs

Asset Allocation*

Cash 5.2%
Bonds 41.9%
Equities 52.9%
*including exposures to ETFs

Performance History (EUR)*

YTD

1.68%

2020

2.52%

2019

14.90%

1-month

1.68%

3-month

7.89%

Annualised Since Inception*

6.67%

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

Currency Allocation

Euro 72.7%
USD 25.6%
GBP 1.7%
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

    January 2021

    After a strong start to the month, most equity markets gave up their gains as the month came to a close. Developed market equities ended the month down 1%, although emerging markets significantly outperformed, ending January up about 3%. Initially, the global roll out of vaccinations and the promise of further fiscal and monetary stimulus helped the market to overlook concerns about virus driven restrictions. Stimulus expectations rose after the surprise Democratic sweep in the run-off election for the two Senate seats in Georgia, which completed Biden’s blue wave.

    Over the month though concerns about delays to the supply of vaccines to Europe increased, raising the possibility that the “bridge over troubled waters” might have to be longer than expected. A group of relatively small and heavily shorted stocks also rallied strongly as a group of retail investors coordinated a short squeeze, forcing some hedge funds to close out their shorts while also selling some of their long positions.

    This technically driven sell-off helps explain the slump in equities towards the end of the month and, in our opinion, is not a reason for concern for long term investors given the likely strong rebound in growth that will accompany the rollout of vaccines. Despite delays in Europe the vaccine rollout is progressing well in the UK and US and there was positive news from both the Novavax and Johnson & Johnson vaccine trials, particularly in relation to preventing hospitalisation.

    Within the HY asset space, U.S. high yield performed better than its European counterparts, returning 0.383 per cent. The asset class continued to benefit from the stimulus package and fed commitment to maintain rates low for the foreseeable future.

    Robust economic data and a moderate winter wave of Covid infections continued to support risky assets in north Asia. Strong returns from Greater China contributed to the outperformance of emerging market equities.

    The fund’s positioning continues to be more skewed towards equities, in line with the normalisation proposition for 2021. Selective sectors are still feeling the pinch from the pandemic, and will possibly offer an opportunity in the very near future on a clearer visibility of vaccine roll-out. The Manager will continue to seek opportunities in selective sectors which offer upside value and reduce exposures in sectors which have recovered strongly in 2020.

  • 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)*

    15.15%

    *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: €6.4 mn
    Month end NAV in EUR: 10.89
    Number of Holdings: 43
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 36.3

    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

    ASML Holding NV
    4.5%
    BMIT Technologies plc
    4.4%
    Lyxor STX600 Ind Good & Serv
    4.2%
    iShares Core S&P 500
    4.0%
    6% Raiffeisen Bank 2169
    3.4%
    6.75% Garfunkelux 2025
    3.3%
    6.5% CMA CGM SA 2022
    3.2%
    4% Chemours 2026
    3.2%
    4.75% Banco Santander 2169
    3.1%
    Alibaba Group Holding
    3.1%

    Top Holdings by Country*

    Germany
    22.2%
    Malta
    14.7%
    United States
    11.7%
    Luxembourg
    8.5%
    France
    7.9%
    Netherlands
    6.0%
    China
    5.9%
    Brazil
    5.7%
    Austria
    3.4%
    *including exposures to ETFs

    Major Sector Breakdown

    Financials
    19.7%
    ETFs
    14.6%
    Information Technology
    14.0%
    Industrials
    8.3%
    Materials
    8.0%
    Funds
    7.6%

    Asset Allocation*

    Cash 5.2%
    Bonds 41.9%
    Equities 52.9%
    *including exposures to ETFs

    Maturity Buckets

    16.6%
    0-5 Years
    14.7%
    5-10 Years
    7.6%
    10 Years+

    Performance History (EUR)*

    YTD

    1.68%

    2020

    2.52%

    2019

    14.90%

    1-month

    1.68%

    3-month

    7.89%

    Annualised Since Inception*

    6.67%

    *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 25.6%
    GBP 1.7%
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