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

Commentary

February 2020

Prior to the recent COVID-19 outbreak, the outlook for 2020 vis-à-vis economic growth, although limited, seemed positive. Economic data had started to improve whilst yields started to portray the possibility of a broad economic recovery.

The latter was indeed short-lived.

Fearing the economic damage from the fast-spreading pneumonia-like virus, investors, as a protectionist measure against economic downturn, shunned global equities, wiping out months of gains, and sought the relative safety of sovereigns, sending yields to panicky lows. Ensuing to the latter shift, and subsequent increased demand for safe assets, Europe’s mostly sought benchmark; the 10-year German Bund tumbled to -0.623 per cent, the lowest for the month of February. Similarly, the 2-year German Bund edged lower, closing off the month at -0.77 per cent, the lowest since September 2019.

From the data front, markets were also monitoring closely the direction of the European economy in order to have more clarity of any signs of improvement in economic data points.

In terms of growth figures from a European front, a second estimate, published in February showed that the Eurozone grew by only 0.1 per cent in the fourth quarter 2019, in-line with analyst’s expectations, and below the 0.3 per cent expansion reported in the previous three-month period. This, being the weakest pace of growth since a 0.4 per cent contraction in the first quarter of 2013. Similarly, Germany’s gross domestic product (GDP) unexpectedly flatlined in the fourth quarter, producing zero growth, a performance that was below analysts’ expectations and down from an upwardly revised 0.2 per cent growth in the previous quarter.

Meanwhile, the Euro Area’s Manufacturing PMI, pointing to the 13th straight month of contraction in factory activity, revised higher to 49.2 in February 2020, from a preliminary 49.1, and above January’s 47.9. Similarly, Euro Area’s services PMI edged slightly higher to 52.6 in February 2020, compared to January’s 52.5. Moreover, consumer confidence in the Euro Area remained unchanged in February at -6.6 per cent.

Within the HY asset space, yields reacted following the outbreak of the coronavirus with spreads widening in line with a risk-off mode. However, worth noting was the magnitude of spread widening which was less in Europe when compared to other counterparts, as risky assets in Europe continue to be supported by a more easing monetary policy.

The CC Euro High Income fund in line with widening in spreads following the outbreak of Covid-19 declined by 2.5 percent, however still outperforming in general HY European indices on a year-to-date basis. In line with the recent market movements, the Manger opted to raise cash levels in order to reduce downside risk. Going forward we believe that the need for fiscal stimulus is imperative and we believe that markets are awaiting anxiously the way forward in this regard.

A quick introduction to our Euro High Income Bond Fund

Watch Video

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)*

15.81%

*View Performance History below
Inception Date: 30 May 2013
ISIN: MT7000007761
Bloomberg Ticker: CALCHAR MV
Entry Charge: None
Total Expense Ratio: 1.40%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.48
Distribution: N/A
Total Net Assets: €43.2 m
Month end NAV in EUR: 124.75
Number of Holdings: 95
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

5% Nidda Bondco 2025
2.4%
2.25% Portugal Treasury 2034
2.2%
6.00% Loxam 2025
2.2%
5.00% Tendam Brands 2024
2.2%
4.00% Chemours 2026
2.1%
Ishares Euro HY Corp
2.0%
7.50% Garfunkelux 2022
1.9%
7.50% Garfunkelux 2022
1.9%
7.00% Marb Bondco 2024
1.8%
4.75% Alitce Finco SA 2028
1.7%

Major Sector Breakdown*

Financials
24.4%
Consumer Discretionary
14.4%
Consumer Staples
11.0%
Industrials
7.7%
Asset 7
Communications
7.7%
Materials
7.6%
*excluding exposures to CIS

Maturity Buckets*

61.6%
0-5 Years
20.7%
5-10 Years
5.7%
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*

Malta
12.6%
France
12.2%
Germany
9.9%
Brazil
7.3%
Spain
6.6%
Switzerland
5.8%
USA
5.5%
Russia
3.5%
UK
3.3%
Ireland
2.9%
*including exposures to CIS

Asset Allocation

Cash 5.3%
Bonds 88.0%
CIS/ETFs 6.7%

Performance History (EUR)*

YTD

-0.21%

2019

7.48%

2018

-6.45%

2017

5.32%

2016

4.96%

Inception*

15.81%

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

Currency Allocation

Euro 83.9%
USD 16.1%
Other 0.00%

Risk Statistics

Sharpe Ratio
0.79 (3Y)
0.62 (5Y)
Std. Deviation
2.77 (3Y)
3.40 (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

    February 2020

    Prior to the recent COVID-19 outbreak, the outlook for 2020 vis-à-vis economic growth, although limited, seemed positive. Economic data had started to improve whilst yields started to portray the possibility of a broad economic recovery.

    The latter was indeed short-lived.

    Fearing the economic damage from the fast-spreading pneumonia-like virus, investors, as a protectionist measure against economic downturn, shunned global equities, wiping out months of gains, and sought the relative safety of sovereigns, sending yields to panicky lows. Ensuing to the latter shift, and subsequent increased demand for safe assets, Europe’s mostly sought benchmark; the 10-year German Bund tumbled to -0.623 per cent, the lowest for the month of February. Similarly, the 2-year German Bund edged lower, closing off the month at -0.77 per cent, the lowest since September 2019.

    From the data front, markets were also monitoring closely the direction of the European economy in order to have more clarity of any signs of improvement in economic data points.

    In terms of growth figures from a European front, a second estimate, published in February showed that the Eurozone grew by only 0.1 per cent in the fourth quarter 2019, in-line with analyst’s expectations, and below the 0.3 per cent expansion reported in the previous three-month period. This, being the weakest pace of growth since a 0.4 per cent contraction in the first quarter of 2013. Similarly, Germany’s gross domestic product (GDP) unexpectedly flatlined in the fourth quarter, producing zero growth, a performance that was below analysts’ expectations and down from an upwardly revised 0.2 per cent growth in the previous quarter.

    Meanwhile, the Euro Area’s Manufacturing PMI, pointing to the 13th straight month of contraction in factory activity, revised higher to 49.2 in February 2020, from a preliminary 49.1, and above January’s 47.9. Similarly, Euro Area’s services PMI edged slightly higher to 52.6 in February 2020, compared to January’s 52.5. Moreover, consumer confidence in the Euro Area remained unchanged in February at -6.6 per cent.

    Within the HY asset space, yields reacted following the outbreak of the coronavirus with spreads widening in line with a risk-off mode. However, worth noting was the magnitude of spread widening which was less in Europe when compared to other counterparts, as risky assets in Europe continue to be supported by a more easing monetary policy.

    The CC Euro High Income fund in line with widening in spreads following the outbreak of Covid-19 declined by 2.5 percent, however still outperforming in general HY European indices on a year-to-date basis. In line with the recent market movements, the Manger opted to raise cash levels in order to reduce downside risk. Going forward we believe that the need for fiscal stimulus is imperative and we believe that markets are awaiting anxiously the way forward in this regard.

  • 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)*

    15.81%

    *View Performance History below
    Inception Date: 30 May 2013
    ISIN: MT7000007761
    Bloomberg Ticker: CALCHAR MV
    Entry Charge: None
    Total Expense Ratio: 1.40%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 4.48
    Distribution: N/A
    Total Net Assets: €43.2 m
    Month end NAV in EUR: 124.75
    Number of Holdings: 95
    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

    1
    2
    3
    4
    5
    6
    7
    Lower Risk

    Potentialy Lower Reward

    Higher Risk

    Potentialy Higher Reward

    Top 10 Holdings

    5% Nidda Bondco 2025
    2.4%
    2.25% Portugal Treasury 2034
    2.2%
    6.00% Loxam 2025
    2.2%
    5.00% Tendam Brands 2024
    2.2%
    4.00% Chemours 2026
    2.1%
    Ishares Euro HY Corp
    2.0%
    7.50% Garfunkelux 2022
    1.9%
    7.50% Garfunkelux 2022
    1.9%
    7.00% Marb Bondco 2024
    1.8%
    4.75% Alitce Finco SA 2028
    1.7%

    Top Holdings by Country*

    Malta
    12.6%
    France
    12.2%
    Germany
    9.9%
    Brazil
    7.3%
    Spain
    6.6%
    Switzerland
    5.8%
    USA
    5.5%
    Russia
    3.5%
    UK
    3.3%
    Ireland
    2.9%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    24.4%
    Consumer Discretionary
    14.4%
    Consumer Staples
    11.0%
    Industrials
    7.7%
    Asset 7
    Communications
    7.7%
    Materials
    7.6%
    *excluding exposures to CIS

    Asset Allocation

    Cash 5.3%
    Bonds 88.0%
    CIS/ETFs 6.7%

    Maturity Buckets*

    61.6%
    0-5 Years
    20.7%
    5-10 Years
    5.7%
    10 Years+
    based on the Next Call Date

    Performance History (EUR)*

    YTD

    -0.21%

    2019

    7.48%

    2018

    -6.45%

    2017

    5.32%

    2016

    4.96%

    Inception*

    15.81%

    *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 83.9%
    USD 16.1%
    Other 0.00%

    Risk Statistics

    Sharpe Ratio
    0.79 (3Y)
    0.62 (5Y)
    Std. Deviation
    2.77 (3Y)
    3.40 (5Y)
  • Downloads

Designed and Developed by