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

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.

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)*

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

5.00% Nidda Bondco 2025
2.4%
4.125% HP Pelzer 2024
2.3%
2.25% Portugal Gov'n 2034
2.1%
5.00% Tendam Brands 2024
2.1%
4.00% Chemours 2026
2.1%
6.00% Loxam 2025
2.1%
5.875% Selecta 2024
1.9%
7.50% Garfunkelux 2022
1.8%
7.00% Marb Bondco 2024
1.7%
6.75% Promontoria 2023
1.7%

Major Sector Breakdown*

Financials
25.4%
Consumer Discretionary
14.8%
Consumer Staples
10.7%
Industrials
8.5%
Materials
8.0%
Asset 7
Communications
6.7%
*excluding exposures to CIS

Maturity Buckets*

49.9%
0-5 Years
18.7%
5-10 Years
0.3%
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
13.3%
France
12.5%
Germany
10.0%
Spain
8.2%
Brazil
7.0%
USA
5.4%
Switzerland
4.8%
Russia
3.4%
Ireland
2.9%
UK
2.8%
*including exposures to CIS

Asset Allocation

Cash 7.0%
Bonds 87.4%
CIS/ETFs 5.6%

Performance 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 2013

Currency Allocation

Euro 84.0%
USD 16.0%
Other 0.00%

Risk Statistics

Sharpe Ratio
0.47 (3Y)
0.47 (5Y)
Std. Deviation
2.97 (3Y)
3.56 (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

    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.

  • 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

    1
    2
    3
    4
    5
    6
    7
    Lower Risk

    Potentialy Lower Reward

    Higher Risk

    Potentialy Higher Reward

    Top 10 Holdings

    5.00% Nidda Bondco 2025
    2.4%
    4.125% HP Pelzer 2024
    2.3%
    2.25% Portugal Gov'n 2034
    2.1%
    5.00% Tendam Brands 2024
    2.1%
    4.00% Chemours 2026
    2.1%
    6.00% Loxam 2025
    2.1%
    5.875% Selecta 2024
    1.9%
    7.50% Garfunkelux 2022
    1.8%
    7.00% Marb Bondco 2024
    1.7%
    6.75% Promontoria 2023
    1.7%

    Top Holdings by Country*

    Malta
    13.3%
    France
    12.5%
    Germany
    10.0%
    Spain
    8.2%
    Brazil
    7.0%
    USA
    5.4%
    Switzerland
    4.8%
    Russia
    3.4%
    Ireland
    2.9%
    UK
    2.8%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    25.4%
    Consumer Discretionary
    14.8%
    Consumer Staples
    10.7%
    Industrials
    8.5%
    Materials
    8.0%
    Asset 7
    Communications
    6.7%
    *excluding exposures to CIS

    Asset Allocation

    Cash 7.0%
    Bonds 87.4%
    CIS/ETFs 5.6%

    Maturity Buckets*

    49.9%
    0-5 Years
    18.7%
    5-10 Years
    0.3%
    10 Years+
    based on the Next Call Date

    Performance 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 2013

    Credit Ratings*

    Average Credit Rating: BB-
    *excluding exposures to CIS

    Currency Allocation

    Euro 84.0%
    USD 16.0%
    Other 0.00%

    Risk Statistics

    Sharpe Ratio
    0.47 (3Y)
    0.47 (5Y)
    Std. Deviation
    2.97 (3Y)
    3.56 (5Y)
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