Investment Objectives
The Fund aims to maximise the total level of return for investors by investing, mainly in a diversified portfolio of bonds and other similar debt securities. In pursuing this objective, the Investment Manager shall invest primarily in a diversified portfolio of corporate & government bonds maturing in the medium term, with an average credit quality of “Ba3” by Moody’s or “BB-” by S&P, although individual bond holdings may have higher or lower ratings. The Fund can also invest up to 10% of its assets in Non-Rated bond issues.
The Fund is actively managed, not managed by reference to any index.
Investor Profile
A typical investor in the CC 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 Fund Accumulator – EUR 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)*
8.01%
*View Performance History below
Inception Date: 30 May 2013
ISIN: MT7000007761
Bloomberg Ticker: CALCHAR MV
Entry Charge: None
Total Expense Ratio: 1.49%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.53
Distribution: N/A
Total Net Assets: €41.04 mn
Month end NAV in EUR: 117.75
Number of Holdings: 79
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 23.9
Performance To Date (EUR)
Top 10 Holdings
3.3%
3.2%
2.6%
2.3%
2.2%
2.2%
2.2%
2.0%
1.9%
1.9%
Major Sector Breakdown*
Financials
12.1%
Communications
11.3%

Funds
9.4%
Industrials
7.3%
Consumer Discretionary
5.4%
Consumer Discretionary
4.9%
Maturity Buckets*
Credit Ratings*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
12.1%
9.7%
9.1%
8.2%
5.5%
4.2%
4.1%
4.1%
3.6%
3.6%
Asset Allocation
Performance History (EUR)*
YTD
-8.14%
2021
1.46%
2020
-0.14%
2019
7.48%
2018
-6.45%
Annualised Since Inception*
0.87%
Currency Allocation
Risk Statistics
-0.16 (3Y)
-0.07 (5Y)
8.95% (3Y)
7.16% (5Y)
Interested in this product?
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Investment Objectives
The Fund aims to maximise the total level of return for investors by investing, mainly in a diversified portfolio of bonds and other similar debt securities. In pursuing this objective, the Investment Manager shall invest primarily in a diversified portfolio of corporate & government bonds maturing in the medium term, with an average credit quality of “Ba3” by Moody’s or “BB-” by S&P, although individual bond holdings may have higher or lower ratings. The Fund can also invest up to 10% of its assets in Non-Rated bond issues.
The Fund is actively managed, not managed by reference to any index.
-
Investor profile
A typical investor in the CC 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
April 2022
Introduction
April, along the same route of the preceding three months and first quarter of the year proved negative for financial markets. Russia’s invasion in Ukraine, stringent Covid-19 policies in China once more prompting demand concerns and supply-chain disruptions, and expectations of a swift tightening in US monetary policy all weighed on sentiment. Credit markets came under pressure with investment grade and high-yield corporate credit delivering negative returns as treasury yields – pricing in the Fed’s hawkish stance – maintained the upward trajectory. Also, the positive correlation to US paper led European sovereign yields higher.Market environment and performance
The eurozone economy advanced by 0.2 per cent on quarter in the first three months of 2022, the least since the bloc exited a recession last year and below market expectations of a 0.3 per cent growth. Growth readings in Spain and Germany of 0.3 and 0.2 per cent respectively more than offset a contraction in Italy. Meanwhile the French economy stalled.Forward looking indicators, notably Purchasing Managers Index (PMI) data painted a somewhat mixed picture as services – benefiting from loosened coronavirus restrictions – expanded while manufacturing contracted. Owing to such uptick in services, which offset the slowdown across the manufacturing sector, remaining susceptible to supply constraints and a slowdown in growth for new orders, the Eurozone Composite PMI increased to 55.8 from the previous months reading of 54.9.
In April, energy and food prices continued to contribute to a rise in annual inflation – a fresh record high at 7.5 per cent, in-line with expectations and marginally higher than the previous month reading of 7.4 per cent. Core inflation, which excludes transitory or temporary price volatility, rose to 3.5 per cent – the highest since available records began in January of 1997. The rate of inflation remains well above the European Central Bank (ECB) target of 2.0 per cent. Month-on-month, inflation increased by 0.6 per cent.
European sovereign yields furthered on the strong upward trajectory witnessed in March, heading to the highest in years on expectations of more aggressive interest rate increases by major central banks in spite of worsening sentiment due to China’s strict coronavirus curbs. Also, ECB president Christine Lagarde repeated the message that asset purchases will end early in Q3 and rates could rise this year, but affirmed that the governing council will maintain “optionality”. Meanwhile, incumbent French President Macron was re-elected with over 58 per cent of the votes against rival Marine Le Pen.
The yield on the 10-year German Bund, closed the month at 0.94 per cent, 39bps higher than the previous month end. Bond yields of sovereigns within the bloc’s periphery, those which offer a premium over Germany’s negative yielding debt, moved in tandem, albeit rising at somewhat faster pace.
While outperforming their US counterparts, European investment grade and high yield credit closed the month negative registering a 2.81 and 2.78 per cent loss, respectively.
Fund performance
In the month of March, the CC Euro High Income Bond Fund lost 2.40 per cent, in line with the widening in spreads within European high yield corporate credit. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories while maintaining adequate cash levels as yields continued to widen and keeping a low portfolio duration, this to reduce the funds sensitivity to changes in interest rates. During the month the fund reduced its exposure to financials, namely Unicredit SpA, while opening a position in the British multinational chemicals company Ineos Group on attractive valuations.Market and investment outlook
Going forward the Manager believes that credit markets will largely remain conditioned by monetary decisions taken, thus far proving more hawkish than the economic outlook possibly warrants, altering benchmark yields, now revolving at notable highs. Such upward shift in yields, particularly at the longer-end of the yield curve – influenced by market participants – weighed on the performance of credit markets which on a year-to-date basis stand substantially negative. A prudent approach to tackling price pressures in the Euro area is more-than-ever imperative not to hinder growth, and thus worsen the economic situation of the bloc.In terms of bond picking, the Manager will continue to monitor the current unprecedented environment and take opportunities in attractive credit stories which should continue to add value to the portfolio. The recent widening in corporate credit spreads may indeed pose an opportunity, presenting attractive entry points.
-
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)*
8.01%
*View Performance History below
Inception Date: 30 May 2013
ISIN: MT7000007761
Bloomberg Ticker: CALCHAR MV
Entry Charge: None
Total Expense Ratio: 1.49%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.53
Distribution: N/A
Total Net Assets: €41.04 mn
Month end NAV in EUR: 117.75
Number of Holdings: 79
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 23.9
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
iShares Fallen Angels HY Corp3.3%
iShares Euro High Yield Corp3.2%
Lyxor ESG Euro High Yield2.6%
4% Chemours Co 20262.3%
5% Tendam Brands SAU 20242.2%
5.25% HSBC Holdings plc perop2.2%
4.25% Encore Capital Group 20282.2%
2.5% Hapag Lloyd AG 20282.0%
4% JP Morgan Chase & Co perp1.9%
3.5% Eircom Finance DAC 20261.9%
Top Holdings by Country*
United States12.1%
Germany9.7%
France9.1%
Spain8.2%
Netherlands5.5%
United Kingdom4.2%
Malta4.1%
Luxembourg4.1%
Czech Republic3.6%
Brazil3.6%
*including exposures to CISMajor Sector Breakdown*
Financials
12.1%
Communications
11.3%
Funds
9.4%
Industrials
7.3%
Consumer Discretionary
5.4%
Consumer Discretionary
4.9%
*excluding exposures to CISAsset Allocation
Cash 9.6%Bonds 81.0%CIS/ETFs 1.2%Maturity Buckets*
66.3%0-5 Years11.5%5-10 Years3.2%10 Years+* based on the Next Call DatePerformance History (EUR)*
YTD
-8.14%
2021
1.46%
2020
-0.14%
2019
7.48%
2018
-6.45%
Annualised Since Inception*
0.87%
* The Accumulator Share Class (Class A) was launched on 29 May 2013. The Annualised rate is an indication of the average growth of the Fund over one year. The value of the investment and the income yield derived from the investment, if any, may go down as well as up and past performance is not necessarily indicative of future performance, nor a reliable guide to future performance. Hence returns may not be achieved and you may lose all or part of your investment in the Fund. Currency fluctuations may affect the value of investments and any derived income.**Returns quoted net of TER. Entry and exit charges may reduce returns for investors.Currency Allocation
Euro 84.1%USD 15.9%Other 0.0%Risk Statistics
Sharpe Ratio-0.16 (3Y)
-0.07 (5Y)
Std. Deviation8.95% (3Y)
7.16% (5Y)
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Downloads
Commentary
April 2022
Introduction
April, along the same route of the preceding three months and first quarter of the year proved negative for financial markets. Russia’s invasion in Ukraine, stringent Covid-19 policies in China once more prompting demand concerns and supply-chain disruptions, and expectations of a swift tightening in US monetary policy all weighed on sentiment. Credit markets came under pressure with investment grade and high-yield corporate credit delivering negative returns as treasury yields – pricing in the Fed’s hawkish stance – maintained the upward trajectory. Also, the positive correlation to US paper led European sovereign yields higher.
Market environment and performance
The eurozone economy advanced by 0.2 per cent on quarter in the first three months of 2022, the least since the bloc exited a recession last year and below market expectations of a 0.3 per cent growth. Growth readings in Spain and Germany of 0.3 and 0.2 per cent respectively more than offset a contraction in Italy. Meanwhile the French economy stalled.
Forward looking indicators, notably Purchasing Managers Index (PMI) data painted a somewhat mixed picture as services – benefiting from loosened coronavirus restrictions – expanded while manufacturing contracted. Owing to such uptick in services, which offset the slowdown across the manufacturing sector, remaining susceptible to supply constraints and a slowdown in growth for new orders, the Eurozone Composite PMI increased to 55.8 from the previous months reading of 54.9.
In April, energy and food prices continued to contribute to a rise in annual inflation – a fresh record high at 7.5 per cent, in-line with expectations and marginally higher than the previous month reading of 7.4 per cent. Core inflation, which excludes transitory or temporary price volatility, rose to 3.5 per cent – the highest since available records began in January of 1997. The rate of inflation remains well above the European Central Bank (ECB) target of 2.0 per cent. Month-on-month, inflation increased by 0.6 per cent.
European sovereign yields furthered on the strong upward trajectory witnessed in March, heading to the highest in years on expectations of more aggressive interest rate increases by major central banks in spite of worsening sentiment due to China’s strict coronavirus curbs. Also, ECB president Christine Lagarde repeated the message that asset purchases will end early in Q3 and rates could rise this year, but affirmed that the governing council will maintain “optionality”. Meanwhile, incumbent French President Macron was re-elected with over 58 per cent of the votes against rival Marine Le Pen.
The yield on the 10-year German Bund, closed the month at 0.94 per cent, 39bps higher than the previous month end. Bond yields of sovereigns within the bloc’s periphery, those which offer a premium over Germany’s negative yielding debt, moved in tandem, albeit rising at somewhat faster pace.
While outperforming their US counterparts, European investment grade and high yield credit closed the month negative registering a 2.81 and 2.78 per cent loss, respectively.
Fund performance
In the month of March, the CC Euro High Income Bond Fund lost 2.40 per cent, in line with the widening in spreads within European high yield corporate credit. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories while maintaining adequate cash levels as yields continued to widen and keeping a low portfolio duration, this to reduce the funds sensitivity to changes in interest rates. During the month the fund reduced its exposure to financials, namely Unicredit SpA, while opening a position in the British multinational chemicals company Ineos Group on attractive valuations.
Market and investment outlook
Going forward the Manager believes that credit markets will largely remain conditioned by monetary decisions taken, thus far proving more hawkish than the economic outlook possibly warrants, altering benchmark yields, now revolving at notable highs. Such upward shift in yields, particularly at the longer-end of the yield curve – influenced by market participants – weighed on the performance of credit markets which on a year-to-date basis stand substantially negative. A prudent approach to tackling price pressures in the Euro area is more-than-ever imperative not to hinder growth, and thus worsen the economic situation of the bloc.
In terms of bond picking, the Manager will continue to monitor the current unprecedented environment and take opportunities in attractive credit stories which should continue to add value to the portfolio. The recent widening in corporate credit spreads may indeed pose an opportunity, presenting attractive entry points.