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 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

Commentary

April 2021

In April, expectations for spectacular economic growth turned from forecast to fact, as the reopening of economies lifted developed market economic data and risk assets to boot. Investors had been positioned for the recovery for a number of months now and it came as little surprise that the re-opening of economies would bring about. The rotation trade from growth to value took a breather in April, with Treasury yields also falling back from their March peak of 1.75% to end the month at 1.63%.

Investor sentiment was supported by the continued economic recovery, with numerous indicators showing incredibly strong growth, as well as reassurance from the Fed that they were in no hurry to withdraw monetary stimulus anytime soon. The biggest story in April was a major rise in commodity prices across the board, with agricultural prices in particular seeing an astonishing surge. Copper topped the leader board with a 12.1% increase, which takes the metal to its highest level in a decade. The move has been aided by continued hopes for the global economic recovery as the vaccine rollout proceeds, as well as the fact that copper stands to benefit from a wave of fiscal support that’s set to see fresh spending on infrastructure and clean energy goals.

Covid-19 vaccine worldwide continued to proceed well, with countries such as the US and UK reporting the majority of their citizens now having received at least one dose, allowing for what looks like the start of a sustained reopening of their economies. In continental Europe, after a difficult start to the vaccine campaign it’s been encouraging to see that the pace of vaccination has accelerated significantly. Prospects for vaccine supply have improved, and by the end of April, the daily rate of vaccinations in major euro area member states had reached between 0.6% and 0.8% of the total population. European countries have struggled to varying degrees to get on top of recent Covid-19 outbreaks, but cases in the region are heading in the right direction.

From the data front, Europe’s largest economy, Germany reported strong PMI data for manufacturing at 66.2. Services were still subdued at 49.9, a shy below breakeven level. The stage is set for robust growth in factory activity, amid further gains in output and new orders going forward.

Eurozone’s manufacturing PMI also remained strong at 62.9. Meanwhile, services PMI of the single currency expanded to 50.5 compared to 49.6 in the previous month. Consumer confidence – a metric that the level of consumer confidence in economic activity in the euro area, increased to -8.1 points in April from -10.8 points a month earlier consolidating an upward trend.

We continue to believe that the pace of economic recovery in Europe will be different to that in the US, therefore we will continue to tactfully time the exiting from European sovereigns with caution.

Yields on Europe’s most sought after benchmark; the 10-year German Bund, closed marginally lower than the previous month at -0.206% compared to -0.292% the previous month. Conversely, Italy’s 10-year sovereign yield closed the month wider at 0.858% compared to 0.663% in March, and the Spanish 10-year closed 1 bps wider at 0.475%.

The CC Euro High Income Bond Fund increased by 0.52 per cent throughout the month. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories, primarily within the financials, shipping, automotive and metals segments.

Going forward the Managers believe that credit markets will continue to be aided by the support of primarily monetary politicians, creating a positive technical environment. In terms of bond picking, the Managers will continue to monitor the current environment and take opportunities in attractive credit stories which should continue to add value to the portfolio.

A quick introduction to our Euro High Income Bond 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

Bonds

MIN. INITIAL INVESTMENT

€2500

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

16.81%

*View Performance History below
Inception Date: 30 May 2013
ISIN: MT7000007761
Bloomberg Ticker: CALCHAR MV
Entry Charge: None
Total Expense Ratio: 1.63%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.43
Distribution: N/A
Total Net Assets: € 42.28 mn
Month end NAV in EUR: 127.35
Number of Holdings: 81
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 24.2

Performance To Date (EUR)

Top 10 Holdings

iShares Euro Corp Large Cap
3.1%
iShares Euro HY Corp
3.0%
iShares Falling Angels HY Corp
2.6%
4% Chemours Co. 2026
2.4%
5% Nidda Bondco GMBH 2025
2.4%
5.25% HSBC Holdings plc perp
2.3%
6% Loxam SAS 2025
2.2%
4.625% Volkswagen perp
2.2%
4.375% Cheplapharm 2028
2.0%
3.5% Eircom Finance 2026
2.0%

Major Sector Breakdown*

Financials
13.5%
Asset 7
Communications
11.4%
Funds
9.7%
Consumer Discretionary
6.8%
Consumer Discretionary
5.7%
Materials
4.9%
*excluding exposures to CIS

Maturity Buckets*

38.2%
0-5 Years
19.9%
5-10 Years
25.4%
10 Years+
based on the Next Call Date

Credit Ratings*

Average Credit Rating: BB-
*excluding exposures to CIS

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
10.2%
France
9.0%
Spain
6.6%
Italy
4.9%
Malta
4.0%
Brazil
3.9%
Netherlands
3.7%
Ireland
3.4%
Turkey
3.3%
India
1.7%
*including exposures to CIS

Asset Allocation

Cash 6.8%
Bonds 83.5%
CIS/ETFs 9.7%

Performance History (EUR)*

YTD

0.80%

2020

-0.14%

2019

7.48%

2018

-6.45%

2017

5.32%

Annualised Since Inception*

1.98%

*The Accumulator Share Class (Class A) was launched on 29 May 2013

Currency Allocation

Euro 84.0%
USD 16.0%
Other 0.0%

Risk Statistics

Sharpe Ratio
0.14 (3Y)
0.37 (5Y)
Std. Deviation
8.89% (3Y)
7.06% (5Y)

Interested in this product?

  • 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.
    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 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 2021

    In April, expectations for spectacular economic growth turned from forecast to fact, as the reopening of economies lifted developed market economic data and risk assets to boot. Investors had been positioned for the recovery for a number of months now and it came as little surprise that the re-opening of economies would bring about. The rotation trade from growth to value took a breather in April, with Treasury yields also falling back from their March peak of 1.75% to end the month at 1.63%.

    Investor sentiment was supported by the continued economic recovery, with numerous indicators showing incredibly strong growth, as well as reassurance from the Fed that they were in no hurry to withdraw monetary stimulus anytime soon. The biggest story in April was a major rise in commodity prices across the board, with agricultural prices in particular seeing an astonishing surge. Copper topped the leader board with a 12.1% increase, which takes the metal to its highest level in a decade. The move has been aided by continued hopes for the global economic recovery as the vaccine rollout proceeds, as well as the fact that copper stands to benefit from a wave of fiscal support that’s set to see fresh spending on infrastructure and clean energy goals.

    Covid-19 vaccine worldwide continued to proceed well, with countries such as the US and UK reporting the majority of their citizens now having received at least one dose, allowing for what looks like the start of a sustained reopening of their economies. In continental Europe, after a difficult start to the vaccine campaign it’s been encouraging to see that the pace of vaccination has accelerated significantly. Prospects for vaccine supply have improved, and by the end of April, the daily rate of vaccinations in major euro area member states had reached between 0.6% and 0.8% of the total population. European countries have struggled to varying degrees to get on top of recent Covid-19 outbreaks, but cases in the region are heading in the right direction.

    From the data front, Europe’s largest economy, Germany reported strong PMI data for manufacturing at 66.2. Services were still subdued at 49.9, a shy below breakeven level. The stage is set for robust growth in factory activity, amid further gains in output and new orders going forward.

    Eurozone’s manufacturing PMI also remained strong at 62.9. Meanwhile, services PMI of the single currency expanded to 50.5 compared to 49.6 in the previous month. Consumer confidence – a metric that the level of consumer confidence in economic activity in the euro area, increased to -8.1 points in April from -10.8 points a month earlier consolidating an upward trend.

    We continue to believe that the pace of economic recovery in Europe will be different to that in the US, therefore we will continue to tactfully time the exiting from European sovereigns with caution.

    Yields on Europe’s most sought after benchmark; the 10-year German Bund, closed marginally lower than the previous month at -0.206% compared to -0.292% the previous month. Conversely, Italy’s 10-year sovereign yield closed the month wider at 0.858% compared to 0.663% in March, and the Spanish 10-year closed 1 bps wider at 0.475%.

    The CC Euro High Income Bond Fund increased by 0.52 per cent throughout the month. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories, primarily within the financials, shipping, automotive and metals segments.

    Going forward the Managers believe that credit markets will continue to be aided by the support of primarily monetary politicians, creating a positive technical environment. In terms of bond picking, the Managers will continue to monitor the current environment and take opportunities in attractive credit stories which should continue to add value to the portfolio.

  • 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)*

    16.81%

    *View Performance History below
    Inception Date: 30 May 2013
    ISIN: MT7000007761
    Bloomberg Ticker: CALCHAR MV
    Entry Charge: None
    Total Expense Ratio: 1.63%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 4.43
    Distribution: N/A
    Total Net Assets: € 42.28 mn
    Month end NAV in EUR: 127.35
    Number of Holdings: 81
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 24.2

    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 Euro Corp Large Cap
    3.1%
    iShares Euro HY Corp
    3.0%
    iShares Falling Angels HY Corp
    2.6%
    4% Chemours Co. 2026
    2.4%
    5% Nidda Bondco GMBH 2025
    2.4%
    5.25% HSBC Holdings plc perp
    2.3%
    6% Loxam SAS 2025
    2.2%
    4.625% Volkswagen perp
    2.2%
    4.375% Cheplapharm 2028
    2.0%
    3.5% Eircom Finance 2026
    2.0%

    Top Holdings by Country*

    Germany
    10.2%
    France
    9.0%
    Spain
    6.6%
    Italy
    4.9%
    Malta
    4.0%
    Brazil
    3.9%
    Netherlands
    3.7%
    Ireland
    3.4%
    Turkey
    3.3%
    India
    1.7%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    13.5%
    Asset 7
    Communications
    11.4%
    Funds
    9.7%
    Consumer Discretionary
    6.8%
    Consumer Discretionary
    5.7%
    Materials
    4.9%
    *excluding exposures to CIS

    Asset Allocation

    Cash 6.8%
    Bonds 83.5%
    CIS/ETFs 9.7%

    Maturity Buckets*

    38.2%
    0-5 Years
    19.9%
    5-10 Years
    25.4%
    10 Years+
    based on the Next Call Date

    Performance History (EUR)*

    YTD

    0.80%

    2020

    -0.14%

    2019

    7.48%

    2018

    -6.45%

    2017

    5.32%

    Annualised Since Inception*

    1.98%

    *The Accumulator Share Class (Class A) was launched on 29 May 2013

    Credit Ratings*

    Average Credit Rating: BB-
    *excluding exposures to CIS

    Currency Allocation

    Euro 84.0%
    USD 16.0%
    Other 0.0%

    Risk Statistics

    Sharpe Ratio
    0.14 (3Y)
    0.37 (5Y)
    Std. Deviation
    8.89% (3Y)
    7.06% (5Y)
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