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

November 2021

Our realization that the Covid-19 pandemic has past its prime as a market mover, has so far been tainted by the Omicron variant saga, whereby the initial market shock waves have been faded away with markets re-marching higher. Now the wall of worries for market participants’ are the potential mistakes by central bankers in regard their initial stance on inflationary pressures and consequently the potential errors ahead on how they will tackle possible persistent inflation. As the general consensus shifts from “transitory inflation” to the highest inflation numbers seen by this generation, there is now a more realistic concern on the long-term global impact of such economic reality. Although pressures from the supply side seem to have eased, recent labour market macro indicators point to diminishing returns from the very large fiscal and monetary stimuli thrown at the market since 2020. In China, restrictive measures taken by authorities against local technology and retail champions, coupled with a “laissez-faire” approach as regards financial-troubled real estate developers portrays an uneasy scenario for 2022 in order to achieve satisfactory economic growth, unless a tangible combination of fiscal and monetary stimulus takes pace Finally, rising geopolitical tensions at the Ukraine border are for now passed on as a potential black swan for the next year, however a re-emergence can triggered serious consequences on Russia due to the probable imposed sanctions.

From the monetary front, the FED dropping its “transitory” label for the current inflationary bout looks like a game-changer, even under the occasional rise in new SARS-CoV-2 infections in developed economies. The decisiveness in shifting tone from FED Chair Powell comes after new inflation numbers confirming that such pressures have spread from seasonal sectors to other parts of the economy. Also, continuing Sino-American tensions which translates into structural global supply chains shifts, could add on to inflationary forces in the year ahead. Now it’s all about managing monetary policy normalization without spooking markets or pushing the economy into stagflation.

In the month of November equity markets seem to have taken on the holidays’ spirit and offered investors a nice mini Christmas rally. Nonetheless, the remarkable increase in volatility triggered by the more retail participants continues to shadow the market’s fragility. Undoubtedly, 2022 will continue to portray a similar scenario with market participants being conditioned by the ongoing market dynamics.  

Market Environment and Performance

Business activity in the Euro economic area, previously appearing to have just past the peak rate of growth, headed higher in November amid an increased demand for services, which masked the second-softest increase in manufacturing production since the recovery began in July 2020. In November, Eurozone Composite Purchasing Managers Index (PMI) was revised slightly lower to 55.4 from a preliminary estimate of 55.8 and higher than the previous month’s reading of 54.2.

Eurozone inflation was estimated at 4.9 per cent in November 2021, higher than October’s actual 4.1 per cent and above economists’ expectations of 4.5 per cent. November’s flash reading is the highest since July 1991, further raising concerns about ECB’s narrative that recent price spikes are seen as temporary and that the economy requires low borrowing costs. The rate inflation sits well above the European Central bank (ECB) target of 2.0 per cent, despite the Bank’s view that these levels are still seen as transitory. Month-on-month, inflation increased by 0.5 per cent, preliminary estimates showed.

Aggregate business activity in the US, as measured by the Composite PMI, was revised higher to 57.2 in November, from a preliminary estimate of 56.5. November’s reading, supported by a sharper service sector upturn as factories were hampered by supply chain disruptions, pointed to a second-fastest pace of expansion in private sector activity since July.

Annual inflation rate in the U.S. surged to 6.8 per cent in November, from 6.2 per cent in the previous month, marking the 9th consecutive month when inflation is above the FED’s 2 per cent target and the highest in almost three decades. In 2021, inflation has largely been on the rise amid low base effects from an unprecedented 2020.

Equities markets were jittery on the announcement of Omicron variant which triggered volatility and ended the euphoria seen during October. This time however we have seen a clear decoupling between the US and other markets on the back of yet another strong performance from the large cap technology names and resilience in the consumer discretionary sector. Another factor that contributed to the market performance differential was a strong US dollar performance in the month. Overall, developed market equities ended the month on par with EM equities as the latter were yet again impaired by underwhelming macro indicators in China. The S&P 500 closed the month lower, witnessing a loss of 0.70%. Albeit heading lower, the dent was by far lower than that witnessed in Europe, as a clear economic divergence remains. Also, investors remained confident that the FEDs expected tightening course will not dent its path towards recovery. From a sector perspective, technology and consumer discretionary sector gains offset losses in financials and communications. In Europe, the EuroStoxx50 and the DAX lost 4.41% and 3.75% respectively, conditioned by their dominant value sector weightings which performed poorly in the month.

Fund Performance

In the month of November, the Global Opportunities Fund registered a 1.81 per cent loss. On a year-to-date basis the fund’s performance closed with a 15.56 per cent gain. Following recent excess market volatility and underwhelming macro indicators, the Manager decided to tactically cut its exposure to the Chinese market until more clarity will become apparent as regards the current economic and regulatory pressures on local equities. Therefore, it decided trimming its exposures to Alibaba and the iShares MSCI EM Asia. As well, the Manager continued applying its risk management framework as regards the Fund’s allocation, thus further mitigating potential underlying idiosyncratic risk. As such, it decided on reducing the Fund’s exposure to Microsoft, while at the same time keeping intact the US exposure through initiating a position in one of its fundamental conviction names, namely Alphabet.  

Market and Investment Outlook

Going forward, the Manager is of the view that the economic growth momentum shall remain positive, however on rising expectations of a step up in tapering momentum from the FED as a response to continuing inflationary pressures. Nevertheless, bar a negative surprise from monetary authorities translated into sudden rate hikes should the inflation expectations spread on the demand side, the general macro environment is expected to remain supportive. As per current scientific data available, the Manager deems the Omicron variant impact on global economic landscape as rather mild and expects that next year the pandemic should ultimately be contained for good. In the emerging world, easing measures expected from the PBOC should alleviate recent worries on the Chinese economic deceleration. In the developed world, price stabilisation on global oil markets and expected diminishing pressures on world supply chains should together sustain the positive economic momentum well into the next year. The Manager is cautiously optimistic on the global economy for 2022 given the current market dynamics, however prudence remains imperative. 

Moreover, the Manager believes that in the current financial repression landscape equities remain by far the asset class of choice given the as yet the very low yielding environment. However, since mid this year it is more evident that the benevolent economic recovery that pushed for a strong equity performance across the board, might be now lower in terms of magnitude. Current US market breath indicators point to a more unbalanced performance structure where the heavy lifting has been recently done by fewer mega caps and once again emerging markets have failed to reach their promised potential. Recent spikes in volatility picture a market stance divided between the realization of interest rates hikes ahead and no reasonable alternative to holding equities. This lays the ground for 2022 as a year when value stocks might regain investors’ interests, with stock selection possibly becoming the real differentiator. This validates the Manager’s stance of cautiousness regarding sector and stock selection going forward. As regards the year-end, the Manager considers the current fund allocation as being aligned to market expectations.

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)*

41.48%

*View Performance History below
Inception Date: 01 Nov 2013
ISIN: MT7000009031
Bloomberg Ticker: CCFEEAE MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.89%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): N/A
Distribution: N/A
Total Net Assets: €8.3 mn
Month end NAV in EUR: 142.78
Number of Holdings: 34
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 43.89

Performance To Date (EUR)

Top 10 Holdings

iShares S&P 500 Financials
6.1%
T. Rowe Price US Blue CH-Q EUR
5.8%
JP Morgan US Value
5.5%
BGF Sustain Energy USD
4.8%
JP Morgan US Growth
4.7%
MSIF Europe Opp
4.1%
Comgest Growth Euro Opp
4.0%
Schroder International Climate Change
3.4%
Schroder International Great China
3.1%
Lyxor Euro Stoxx600 Banks
2.4%

Major Sector Breakdown

ETFs
17.6%
Information Technology
13.6%
Consumer Discretionary
13.2%
Energy
11.1%
Financials
10.9%
ETFs
8.1%
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
47.9%
China
18.4%
Europe
13.9%
France
11.2%
Germany
3.7%
Netherlands
2.7%
United Kingdom
1.3%
*including exposures to ETFs. Does not adopt a look-through approach.

Asset Allocation

Cash 0.9%
Equities 37.7%
ETF 22.4%
Fund 39.0%

Performance History (EUR)*

YTD

15.56%

1-month

-1.81%

3-month

0.21%

6-month

4.65%

12-month

17.06%

Ananualised Since Inception*

4.38%

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

Currency Allocation

Euro 39.5%
USD 57.6%
GBP 2.9%
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

    November 2021

    Our realization that the Covid-19 pandemic has past its prime as a market mover, has so far been tainted by the Omicron variant saga, whereby the initial market shock waves have been faded away with markets re-marching higher. Now the wall of worries for market participants’ are the potential mistakes by central bankers in regard their initial stance on inflationary pressures and consequently the potential errors ahead on how they will tackle possible persistent inflation. As the general consensus shifts from “transitory inflation” to the highest inflation numbers seen by this generation, there is now a more realistic concern on the long-term global impact of such economic reality. Although pressures from the supply side seem to have eased, recent labour market macro indicators point to diminishing returns from the very large fiscal and monetary stimuli thrown at the market since 2020. In China, restrictive measures taken by authorities against local technology and retail champions, coupled with a “laissez-faire” approach as regards financial-troubled real estate developers portrays an uneasy scenario for 2022 in order to achieve satisfactory economic growth, unless a tangible combination of fiscal and monetary stimulus takes pace Finally, rising geopolitical tensions at the Ukraine border are for now passed on as a potential black swan for the next year, however a re-emergence can triggered serious consequences on Russia due to the probable imposed sanctions.

    From the monetary front, the FED dropping its “transitory” label for the current inflationary bout looks like a game-changer, even under the occasional rise in new SARS-CoV-2 infections in developed economies. The decisiveness in shifting tone from FED Chair Powell comes after new inflation numbers confirming that such pressures have spread from seasonal sectors to other parts of the economy. Also, continuing Sino-American tensions which translates into structural global supply chains shifts, could add on to inflationary forces in the year ahead. Now it’s all about managing monetary policy normalization without spooking markets or pushing the economy into stagflation.

    In the month of November equity markets seem to have taken on the holidays’ spirit and offered investors a nice mini Christmas rally. Nonetheless, the remarkable increase in volatility triggered by the more retail participants continues to shadow the market’s fragility. Undoubtedly, 2022 will continue to portray a similar scenario with market participants being conditioned by the ongoing market dynamics.  

    Market Environment and Performance

    Business activity in the Euro economic area, previously appearing to have just past the peak rate of growth, headed higher in November amid an increased demand for services, which masked the second-softest increase in manufacturing production since the recovery began in July 2020. In November, Eurozone Composite Purchasing Managers Index (PMI) was revised slightly lower to 55.4 from a preliminary estimate of 55.8 and higher than the previous month’s reading of 54.2.

    Eurozone inflation was estimated at 4.9 per cent in November 2021, higher than October’s actual 4.1 per cent and above economists’ expectations of 4.5 per cent. November’s flash reading is the highest since July 1991, further raising concerns about ECB’s narrative that recent price spikes are seen as temporary and that the economy requires low borrowing costs. The rate inflation sits well above the European Central bank (ECB) target of 2.0 per cent, despite the Bank’s view that these levels are still seen as transitory. Month-on-month, inflation increased by 0.5 per cent, preliminary estimates showed.

    Aggregate business activity in the US, as measured by the Composite PMI, was revised higher to 57.2 in November, from a preliminary estimate of 56.5. November’s reading, supported by a sharper service sector upturn as factories were hampered by supply chain disruptions, pointed to a second-fastest pace of expansion in private sector activity since July.

    Annual inflation rate in the U.S. surged to 6.8 per cent in November, from 6.2 per cent in the previous month, marking the 9th consecutive month when inflation is above the FED’s 2 per cent target and the highest in almost three decades. In 2021, inflation has largely been on the rise amid low base effects from an unprecedented 2020.

    Equities markets were jittery on the announcement of Omicron variant which triggered volatility and ended the euphoria seen during October. This time however we have seen a clear decoupling between the US and other markets on the back of yet another strong performance from the large cap technology names and resilience in the consumer discretionary sector. Another factor that contributed to the market performance differential was a strong US dollar performance in the month. Overall, developed market equities ended the month on par with EM equities as the latter were yet again impaired by underwhelming macro indicators in China. The S&P 500 closed the month lower, witnessing a loss of 0.70%. Albeit heading lower, the dent was by far lower than that witnessed in Europe, as a clear economic divergence remains. Also, investors remained confident that the FEDs expected tightening course will not dent its path towards recovery. From a sector perspective, technology and consumer discretionary sector gains offset losses in financials and communications. In Europe, the EuroStoxx50 and the DAX lost 4.41% and 3.75% respectively, conditioned by their dominant value sector weightings which performed poorly in the month.

    Fund Performance

    In the month of November, the Global Opportunities Fund registered a 1.81 per cent loss. On a year-to-date basis the fund’s performance closed with a 15.56 per cent gain. Following recent excess market volatility and underwhelming macro indicators, the Manager decided to tactically cut its exposure to the Chinese market until more clarity will become apparent as regards the current economic and regulatory pressures on local equities. Therefore, it decided trimming its exposures to Alibaba and the iShares MSCI EM Asia. As well, the Manager continued applying its risk management framework as regards the Fund’s allocation, thus further mitigating potential underlying idiosyncratic risk. As such, it decided on reducing the Fund’s exposure to Microsoft, while at the same time keeping intact the US exposure through initiating a position in one of its fundamental conviction names, namely Alphabet.  

    Market and Investment Outlook

    Going forward, the Manager is of the view that the economic growth momentum shall remain positive, however on rising expectations of a step up in tapering momentum from the FED as a response to continuing inflationary pressures. Nevertheless, bar a negative surprise from monetary authorities translated into sudden rate hikes should the inflation expectations spread on the demand side, the general macro environment is expected to remain supportive. As per current scientific data available, the Manager deems the Omicron variant impact on global economic landscape as rather mild and expects that next year the pandemic should ultimately be contained for good. In the emerging world, easing measures expected from the PBOC should alleviate recent worries on the Chinese economic deceleration. In the developed world, price stabilisation on global oil markets and expected diminishing pressures on world supply chains should together sustain the positive economic momentum well into the next year. The Manager is cautiously optimistic on the global economy for 2022 given the current market dynamics, however prudence remains imperative. 

    Moreover, the Manager believes that in the current financial repression landscape equities remain by far the asset class of choice given the as yet the very low yielding environment. However, since mid this year it is more evident that the benevolent economic recovery that pushed for a strong equity performance across the board, might be now lower in terms of magnitude. Current US market breath indicators point to a more unbalanced performance structure where the heavy lifting has been recently done by fewer mega caps and once again emerging markets have failed to reach their promised potential. Recent spikes in volatility picture a market stance divided between the realization of interest rates hikes ahead and no reasonable alternative to holding equities. This lays the ground for 2022 as a year when value stocks might regain investors’ interests, with stock selection possibly becoming the real differentiator. This validates the Manager’s stance of cautiousness regarding sector and stock selection going forward. As regards the year-end, the Manager considers the current fund allocation as being aligned to market expectations.

  • 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)*

    41.48%

    *View Performance History below
    Inception Date: 01 Nov 2013
    ISIN: MT7000009031
    Bloomberg Ticker: CCFEEAE MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.89%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): N/A
    Distribution: N/A
    Total Net Assets: €8.3 mn
    Month end NAV in EUR: 142.78
    Number of Holdings: 34
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 43.89

    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
    6.1%
    T. Rowe Price US Blue CH-Q EUR
    5.8%
    JP Morgan US Value
    5.5%
    BGF Sustain Energy USD
    4.8%
    JP Morgan US Growth
    4.7%
    MSIF Europe Opp
    4.1%
    Comgest Growth Euro Opp
    4.0%
    Schroder International Climate Change
    3.4%
    Schroder International Great China
    3.1%
    Lyxor Euro Stoxx600 Banks
    2.4%

    Top Holdings by Country*

    United States
    47.9%
    China
    18.4%
    Europe
    13.9%
    France
    11.2%
    Germany
    3.7%
    Netherlands
    2.7%
    United Kingdom
    1.3%
    *including exposures to ETFs. Does not adopt a look-through approach.

    Major Sector Breakdown

    ETFs
    17.6%
    Information Technology
    13.6%
    Consumer Discretionary
    13.2%
    Energy
    11.1%
    Financials
    10.9%
    ETFs
    8.1%

    Asset Allocation

    Cash 0.9%
    Equities 37.7%
    ETF 22.4%
    Fund 39.0%

    Performance History (EUR)*

    YTD

    15.56%

    1-month

    -1.81%

    3-month

    0.21%

    6-month

    4.65%

    12-month

    17.06%

    Ananualised Since Inception*

    4.38%

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

    Currency Allocation

    Euro 39.5%
    USD 57.6%
    GBP 2.9%
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