Investment Objectives

Diversifying into alternative asset classes is becoming increasingly important. With interest rates at all-time lows and investors seeking returns, equities are looking more attractive.  The CC Global Opportunities Fund aims to achieve a higher level of return for investors by investing, mainly, in a diversified portfolio of blue-chip equities (such as stocks and shares).
 
The CC Global Opportunities fund invests in Blue Chip companies trading on major world markets. Blue Chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

Investor Profile

A typical investor in the CC Global Opportunities Funds is:

  • Seeking to achieve capital growth over time.
  • Seeking an actively managed & diversified equity portfolio in Global blue-chip companies

Fund Rules

The Investment Manager of the CC Global Opportunities Fund has the duty to ensure that the underlying investments of the fund is well diversified.

The investment manager has to abide by a number of investment restrictions to safeguard the value of the assets of the fund. Some of the restrictions include:

  • The fund may not invest more than 10% of its assets in securities listed by the same body
  • The fund may not keep more than 10% of its assets on deposit with any one credit institution. This limit may be increased to 30% in respect of deposits with an Approved Institution
  • The fund may not invest more than 20% of its assets in any other funds
  • The fund may not carry out uncovered sales (naked short-selling) of securities or other financial instruments

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. 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. 

In September, 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 Opportunities Fund declined by 3.80 per cent. On a year-to-date basis, the sub-fund generated a total return of 11.02 per cent. Throughout the month the Manager continued to seek pockets of value by looking into attractive equity stories.

The Investment Manager believes that equities should do well in an environment of modestly rising inflation, as rising sales tend to offset higher input prices, which can be passed onto customers when demand is strong. Looking for areas within equity markets that stand to benefit both from the cyclical rebound is imperative. Value sectors usually fit the bill in that respect. Overall, equities have had a strong start to the year, and while we wouldn’t be surprised to see a few wobbles along the way conditioned by the Delta variant, we believe the outlook remains relatively positive. We remain very mindful that certain value trades will take longer to materialise as Covid-19 cases increase, particularly as we head into the winter season. To this end, close monitoring and possible tweaks in allocation are imperative, depending on market conditions.

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

Equity

MIN. INITIAL INVESTMENT

€2500

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

35.92%

*View Performance History below
Inception Date: 01 Nov 2013
ISIN: MT7000009031
Bloomberg Ticker: CCFEEAE MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 3.01%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): N/A
Distribution: N/A
Total Net Assets: €8.1 mn
Month end NAV in EUR: 135.92
Number of Holdings: 34
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 35.41

Performance To Date (EUR)

Top 10 Holdings

iShares S&P 500 Financials
5.5%
T. Rowe Price US Blue CH-Q EUR
5.0%
BGF SUSTAIN ENRGY - D2 EUR
4.1%
Comgest Growth Euro Opp-EURZ
3.7%
MSIF Europe Opp-Z EUR
3.6%
Lyxor Stoxx600 Industrial Good&Serv
3.3%
Schroder International Climate Change
3.0%
Schroder International Great China
2.8%
Lyxor Stoxx Europe600 Banks
2.3%
iShare S&P 500 Industrials
2.1%

Major Sector Breakdown

Consumer Discretionary
19.0%
Information Technology
17.7%
Energy
10.9%
Financials
10.0%
ETFs
9.7%
Industrials
8.8%
Data for maturity buckets is not available for this fund.
Data for credit ratings is not available for this fund.

Risk & Reward Profile

1
2
3
4
5
6
7
Lower Risk

Potentialy Lower Reward

Higher Risk

Potentialy Higher Reward

Top Holdings by Country*

United States
46.2%
Europe
14.3%
China
12.3%
France
10.8%
Germany
7.1%
Netherlands
3.9%
United Kingdom
1.1%
*including exposures to ETFs. Does not adopt a look-through approach.

Asset Allocation

Cash 4.3%
Equities 45.0%
ETF 22.1%
Fund 28.7%

Performance History (EUR)*

YTD

11.02%

1-month

-3.80%

3-month

-1.76%

6-month

3.32%

12-month

14.45%

Ananualised Since Inception*

3.95%

*The Global Opportunities Fund (previously known as the Euro Equity Fund) was launched on 31 October 2013.

Currency Allocation

Euro 47.6%
USD 50.0%
GBP 2.4%
Data for risk statistics is not available for this fund.

Interested in this product?

  • Investment Objectives

    Diversifying into alternative asset classes is becoming increasingly important. With interest rates at all-time lows and investors seeking returns, equities are looking more attractive.  The CC Global Opportunities Fund aims to achieve a higher level of return for investors by investing, mainly, in a diversified portfolio of blue-chip equities (such as stocks and shares).
     
    The CC Global Opportunities fund invests in Blue Chip companies trading on major world markets. Blue Chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.
  • Investor profile

    A typical investor in the CC Global Opportunities Funds is:

    • Seeking to achieve capital growth over time.
    • Seeking an actively managed & diversified equity portfolio in Global blue-chip companies
    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

    • The fund may not invest more than 10% of its assets in securities listed by the same body
    • The fund may not keep more than 10% of its assets on deposit with any one credit institution. This limit may be increased to 30% in respect of deposits with an Approved Institution
    • The fund may not invest more than 20% of its assets in any other funds
    • The fund may not carry out uncovered sales (naked short-selling) of securities or other financial instruments
  • 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. 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. 

    In September, 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 Opportunities Fund declined by 3.80 per cent. On a year-to-date basis, the sub-fund generated a total return of 11.02 per cent. Throughout the month the Manager continued to seek pockets of value by looking into attractive equity stories.

    The Investment Manager believes that equities should do well in an environment of modestly rising inflation, as rising sales tend to offset higher input prices, which can be passed onto customers when demand is strong. Looking for areas within equity markets that stand to benefit both from the cyclical rebound is imperative. Value sectors usually fit the bill in that respect. Overall, equities have had a strong start to the year, and while we wouldn’t be surprised to see a few wobbles along the way conditioned by the Delta variant, we believe the outlook remains relatively positive. We remain very mindful that certain value trades will take longer to materialise as Covid-19 cases increase, particularly as we head into the winter season. To this end, close monitoring and possible tweaks in allocation are imperative, depending on market conditions.

  • 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

    Equity

    MIN. INITIAL INVESTMENT

    €2500

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    35.92%

    *View Performance History below
    Inception Date: 01 Nov 2013
    ISIN: MT7000009031
    Bloomberg Ticker: CCFEEAE MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 3.01%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): N/A
    Distribution: N/A
    Total Net Assets: €8.1 mn
    Month end NAV in EUR: 135.92
    Number of Holdings: 34
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 35.41

    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 S&P 500 Financials
    5.5%
    T. Rowe Price US Blue CH-Q EUR
    5.0%
    BGF SUSTAIN ENRGY - D2 EUR
    4.1%
    Comgest Growth Euro Opp-EURZ
    3.7%
    MSIF Europe Opp-Z EUR
    3.6%
    Lyxor Stoxx600 Industrial Good&Serv
    3.3%
    Schroder International Climate Change
    3.0%
    Schroder International Great China
    2.8%
    Lyxor Stoxx Europe600 Banks
    2.3%
    iShare S&P 500 Industrials
    2.1%

    Top Holdings by Country*

    United States
    46.2%
    Europe
    14.3%
    China
    12.3%
    France
    10.8%
    Germany
    7.1%
    Netherlands
    3.9%
    United Kingdom
    1.1%
    *including exposures to ETFs. Does not adopt a look-through approach.

    Major Sector Breakdown

    Consumer Discretionary
    19.0%
    Information Technology
    17.7%
    Energy
    10.9%
    Financials
    10.0%
    ETFs
    9.7%
    Industrials
    8.8%

    Asset Allocation

    Cash 4.3%
    Equities 45.0%
    ETF 22.1%
    Fund 28.7%

    Performance History (EUR)*

    YTD

    11.02%

    1-month

    -3.80%

    3-month

    -1.76%

    6-month

    3.32%

    12-month

    14.45%

    Ananualised Since Inception*

    3.95%

    *The Global Opportunities Fund (previously known as the Euro Equity Fund) was launched on 31 October 2013.

    Currency Allocation

    Euro 47.6%
    USD 50.0%
    GBP 2.4%
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