Investment Objectives
The CC Euro High Income Bond Fund Accumulator aims to maximise the total level of return for investors through investment in a diversified portfolio of Bonds. To achieve this objective, the Investment Manager invests primarily in a diversified portfolio of over 65 intermediate term, corporate & government bonds with maturities of 10 years and less.
Investor Profile
A typical investor in the CC Euro High Income Bond Fund Accumulator is:
- Seeking to accumulate wealth and save over time in a product that re-invests gross dividends automatically.
- Planning to hold their investment for the medium-to-long term so as to benefit from the compound interest effect.
Fund Rules
The Investment Manager of the CC Euro High Income Bond Fund Accumulator – 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 of the fund. Some of the restrictions include:
- The fund may not invest more than 10% of its assets in the same company
- 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 other fund
- The fund may not carry out uncovered sales (naked short-selling) of securities or other financial instruments
A quick introduction to our Euro High Income Bond Fund
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
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
RETURN (SINCE INCEPTION)*
13.36%
*View Performance History below
Inception Date: 30 May 2013
ISIN: MT7000007761
Bloomberg Ticker: CALCHAR MV
Entry Charge: None
Total Expense Ratio: 1.44%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.50
Distribution: N/A
Total Net Assets: €43.4 m
Month end NAV in EUR: 123.58
Number of Holdings: 92
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 20.1
Performance To Date (EUR)
Top 10 Holdings
2.4%
2.3%
2.1%
2.1%
2.1%
2.1%
1.9%
1.8%
1.7%
1.7%
Major Sector Breakdown*
Financials
25.4%
Consumer Discretionary
14.8%
Consumer Staples
10.7%
Industrials
8.5%
Materials
8.0%
Communications
6.7%
Maturity Buckets*
Credit Ratings*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
13.3%
12.5%
10.0%
8.2%
7.0%
5.4%
4.8%
3.4%
2.9%
2.8%
Asset Allocation
Performance History (EUR)*
YTD
4.98%
2018
-6.45%
2017
5.32%
2016
4.96%
2015
-0.89%
Inception*
13.36%
Currency Allocation
Risk Statistics
0.47 (3Y)
0.47 (5Y)
2.97 (3Y)
3.56 (5Y)
Interested in this product?
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Investment Objectives
The CC Euro High Income Bond Fund Accumulator aims to maximise the total level of return for investors through investment in a diversified portfolio of Bonds. To achieve this objective, the Investment Manager invests primarily in a diversified portfolio of over 65 intermediate term, corporate & government bonds with maturities of 10 years and less.
-
Investor profile
A typical investor in the CC Euro High Income Bond Fund Accumulator is:
- Seeking to accumulate wealth and save over time in a product that re-invests gross dividends automatically.
- Planning to hold their investment for the medium-to-long term so as to benefit from the compound interest effect.
-
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 the same company
- 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 other fund
- The fund may not carry out uncovered sales (naked short-selling) of securities or other financial instruments
-
Commentary
October 2019
In the month of October, markets welcomed signs of easing tensions between the U.S. and China, with a remarkable progress in terms of signing phase one of a trade deal. From a monetary perspective, Central Banks maintained their dovish stance in line with the yet soft inflation figures, while the Federal Reserve cut interest rates for the third time in 2019. The more benevolent news was reflected in an upward movement in core government bond yields as opposed to the record tightening experienced in the precious months.
In Europe, economic data continues to pile pressures for fiscal stimulus with manufacturing PMI remaining flat at 45.7, while services PMI ticked slightly upwards. Likewise, consumer confidence continued to be impacted by negative economic data with a reading of negative 7.6 percent, the lowest since December last year. In this regard, looking at the struggling economic data, markets are hoping that the incoming ECB President, Christine Lagarde, will further ease monetary policies, if possible. With the latter being questioned, her challenge revolves around whether she will manage to convince politicians to implement a fiscal plan.
In addition to, to the surprise of markets, Prime Minister Boris Johnson was able to agree a new Brexit deal with the European Union. The new deal gained more support in the House of Commons; however, members of parliament refused to approve rushing through the legislation process in order to leave the EU on the 31 October deadline. This meant an extension to the departure deadline was agreed to 31 January 2019. A general election will now be held on 12 December, as the prime minister seeks a new parliamentary majority to pass his deal.
Looking at the fixed income asset class per se, despite the upward movements in the last week of October, government bond yields closed the month on a positive note following strong gains in the first weeks of the month. Thus topping their impressive run on a year-to-date basis. European High Yield traded relatively flat on a total return basis given the supportive income stream, while from a price return perspective, throughout the month spreads widened as weakness in economic data persisted.
The CC Euro High Income fund closed the month flat in line with core HY benchmarks. Throughout the month, the Manager continued to seek value in a very difficult yielding market, as companies continue to take an opportunistic approach and re-finance at lower yields. In this regard, the Manager increased its exposure to Banco Santander on an attractive valuation level, while it continued to manage the fund’s volatility.
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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
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
RETURN (SINCE INCEPTION)*
13.36%
*View Performance History below
Inception Date: 30 May 2013
ISIN: MT7000007761
Bloomberg Ticker: CALCHAR MV
Entry Charge: None
Total Expense Ratio: 1.44%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.50
Distribution: N/A
Total Net Assets: €43.4 m
Month end NAV in EUR: 123.58
Number of Holdings: 92
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 20.1
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
5.00% Nidda Bondco 20252.4%
4.125% HP Pelzer 20242.3%
2.25% Portugal Gov'n 20342.1%
5.00% Tendam Brands 20242.1%
4.00% Chemours 20262.1%
6.00% Loxam 20252.1%
5.875% Selecta 20241.9%
7.50% Garfunkelux 20221.8%
7.00% Marb Bondco 20241.7%
6.75% Promontoria 20231.7%
Top Holdings by Country*
Malta13.3%
France12.5%
Germany10.0%
Spain8.2%
Brazil7.0%
USA5.4%
Switzerland4.8%
Russia3.4%
Ireland2.9%
UK2.8%
*including exposures to CISMajor Sector Breakdown*
Financials
25.4%
Consumer Discretionary
14.8%
Consumer Staples
10.7%
Industrials
8.5%
Materials
8.0%
Communications
6.7%
*excluding exposures to CISAsset Allocation
Cash 7.0%Bonds 87.4%CIS/ETFs 5.6%Maturity Buckets*
49.9%0-5 Years18.7%5-10 Years0.3%10 Years+based on the Next Call DatePerformance History (EUR)*
YTD
4.98%
2018
-6.45%
2017
5.32%
2016
4.96%
2015
-0.89%
Inception*
13.36%
*The Accumulator Share Class (Class A) was launched on 29 May 2013Currency Allocation
Euro 84.0%USD 16.0%Other 0.00%Risk Statistics
Sharpe Ratio0.47 (3Y)
0.47 (5Y)
Std. Deviation2.97 (3Y)
3.56 (5Y)
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Downloads
Commentary
October 2019
In the month of October, markets welcomed signs of easing tensions between the U.S. and China, with a remarkable progress in terms of signing phase one of a trade deal. From a monetary perspective, Central Banks maintained their dovish stance in line with the yet soft inflation figures, while the Federal Reserve cut interest rates for the third time in 2019. The more benevolent news was reflected in an upward movement in core government bond yields as opposed to the record tightening experienced in the precious months.
In Europe, economic data continues to pile pressures for fiscal stimulus with manufacturing PMI remaining flat at 45.7, while services PMI ticked slightly upwards. Likewise, consumer confidence continued to be impacted by negative economic data with a reading of negative 7.6 percent, the lowest since December last year. In this regard, looking at the struggling economic data, markets are hoping that the incoming ECB President, Christine Lagarde, will further ease monetary policies, if possible. With the latter being questioned, her challenge revolves around whether she will manage to convince politicians to implement a fiscal plan.
In addition to, to the surprise of markets, Prime Minister Boris Johnson was able to agree a new Brexit deal with the European Union. The new deal gained more support in the House of Commons; however, members of parliament refused to approve rushing through the legislation process in order to leave the EU on the 31 October deadline. This meant an extension to the departure deadline was agreed to 31 January 2019. A general election will now be held on 12 December, as the prime minister seeks a new parliamentary majority to pass his deal.
Looking at the fixed income asset class per se, despite the upward movements in the last week of October, government bond yields closed the month on a positive note following strong gains in the first weeks of the month. Thus topping their impressive run on a year-to-date basis. European High Yield traded relatively flat on a total return basis given the supportive income stream, while from a price return perspective, throughout the month spreads widened as weakness in economic data persisted.
The CC Euro High Income fund closed the month flat in line with core HY benchmarks. Throughout the month, the Manager continued to seek value in a very difficult yielding market, as companies continue to take an opportunistic approach and re-finance at lower yields. In this regard, the Manager increased its exposure to Banco Santander on an attractive valuation level, while it continued to manage the fund’s volatility.