Investment Objectives

The CC Euro High Income Bond Fund Distributor aims to maximise the total level of return for investors through investment in a diversified portfolio of Bonds. 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 Distributor is:

  • Seeking to earn a high level of regular income
  • Seeking an actively managed & diversified investment in high income bonds.

Fund Rules

The Investment Manager of the CC Euro High Income Bond Funds – EUR and USD has the duty to ensure that the underlying holdings 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 funds. Some of the restrictions include:

  • The fund may not invest more than 10% of its assets in securities listed by the same body
  • 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 fund
  • The fund may not carry out uncovered sales (naked short-selling) of securities or other financial instruments

Commentary

September 2019

The market performance during the month of September was primarily driven by the monetary decisions taken by the European Central Bank (ECB) and the Federal Reserve (Fed). Markets anxiously awaited their moves, in addition to the forward-looking tones on whether they hold the capacity and willingness to be more accommodative if the need arises.

Following remarkable pressures on the economic data front, the ECB announced a stimulus package, namely a fresh wave of asset purchases amounting to Eur20bn of bonds per month and a cut in the deposit rate by 10bps to -0.5 percent. The ECB’s rationale was based on expectations that risks remain tilted to the downside, triggered by the prolonged trade tensions and the rise of protectionism. The tone was also dovish due to a downward revision in inflation expectations when compared to previous projections, sighting a weaker growth environment. On the announcement, credit markets reacted positively – a move that faded away as investors continued to digest whether the new package will be enough to trigger the much-needed economic growth.

In the meantime, the economic date in the Eurozone continued to weaken, with the manufacturing PMI falling to 45.7 from the 47 level. This was also reflecting the steepest decline in Germany’s manufacturing PMI since June 2009; a decline which continued to pile pressures on the economic sentiment in the region.

European High yield closed the month relatively flat at -0.1%, due to the income returns, which mitigated the price movements seen in the month. In fact, from a price return perspective, European HY was down -0.4 percent in September, reflecting the widening in spreads on economic growth concerns.

In the month, the fund registered a positive performance of +0.3 percent, mainly reflecting the more prudent positioning of the Investment Manager which reduced the fund’s volatility. Going forward, given the already tight spreads within the HY space and an economic scenario, which is pointing to more downside risks, the Investment Manager shall be looking to maintain a prudent approach.

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)*

36.26%

*View Performance History below
Inception Date: 01 Sep 2011
ISIN: MT7000003059
Bloomberg Ticker: CALCHIE MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.44%
Exit Charge: None
Distribution Yield (%): 3.9
Underlying Yield (%): 4.53
Distribution: 31/03 and 30/09
Total Net Assets: €44.6 m
Month end NAV in EUR: 92.63
Number of Holdings: 94
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 19.9

Performance To Date (EUR)

Top 10 Holdings

4.125% HP Pelzer 2024
2.3%
5.00% Nidda Bondco 2025
2.3%
6.00% Loxam 2025
2.1%
2.25% Portugal Gov'n 203
2.1%
5.00% Tendam Brands 2024
2.1%
4.00% Chemours 2026
2.1%
5.875% Selecta 2024
1.9%
7.00% Marb Bondco 2024
1.7%
7.50% Garfunkelux 2022
1.7%
6.75% Promontoria 2023
1.7%

Major Sector Breakdown*

Financials
24.5%
Consumer Discretionary
14.7%
Consumer Staples
10.6%
Industrials
8.3%
Materials
7.9%
Asset 7
Communications
6.7%
*excluding exposures to CIS

Maturity Buckets*

49.1%
0-5 Years
17.5%
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
13.0%
France
12.3%
Germany
10.0%
Spain
7.5%
Brazil
6.9%
USA
5.3%
Switzerland
4.7%
Russia
3.4%
Ireland
2.9%
UK
2.7%
*including exposures to CIS

Asset Allocation

Cash 8.8%
Bonds 85.8%
CIS/ETFs 5.4%

Performance History (EUR)*

YTD

5.46%

2018

-6.44%

2017

5.31%

2016

4.97%

2015

-0.86%

Inception***

36.26%

*Data in the chart does not include any dividends distributed since the Fund was launched on 1st September 2011.
**Performance figures are calculated using the Value Added Monthly Index "VAMI" principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding
***The Distributor Share Class (Class D) was launched on 01 September 2011.

Currency Allocation

Euro 85.4%
USD 14.6%
Other 0.0%

Risk Statistics

Sharpe Ratio
0.95 (3Y)
0.59 (5Y)
Std. Deviation
2.68 (3Y)
3.46 (5Y)

Interested in this product?

  • Investment Objectives

    The CC Euro High Income Bond Fund Distributor aims to maximise the total level of return for investors through investment in a diversified portfolio of Bonds. 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 Distributor is:

    • Seeking to earn a high level of regular income
    • Seeking an actively managed & diversified investment in high income bonds.
    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 securities listed by the same body
    • 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 fund
    • The fund may not carry out uncovered sales (naked short-selling) of securities or other financial instruments
  • Commentary

    September 2019

    The market performance during the month of September was primarily driven by the monetary decisions taken by the European Central Bank (ECB) and the Federal Reserve (Fed). Markets anxiously awaited their moves, in addition to the forward-looking tones on whether they hold the capacity and willingness to be more accommodative if the need arises.

    Following remarkable pressures on the economic data front, the ECB announced a stimulus package, namely a fresh wave of asset purchases amounting to Eur20bn of bonds per month and a cut in the deposit rate by 10bps to -0.5 percent. The ECB’s rationale was based on expectations that risks remain tilted to the downside, triggered by the prolonged trade tensions and the rise of protectionism. The tone was also dovish due to a downward revision in inflation expectations when compared to previous projections, sighting a weaker growth environment. On the announcement, credit markets reacted positively – a move that faded away as investors continued to digest whether the new package will be enough to trigger the much-needed economic growth.

    In the meantime, the economic date in the Eurozone continued to weaken, with the manufacturing PMI falling to 45.7 from the 47 level. This was also reflecting the steepest decline in Germany’s manufacturing PMI since June 2009; a decline which continued to pile pressures on the economic sentiment in the region.

    European High yield closed the month relatively flat at -0.1%, due to the income returns, which mitigated the price movements seen in the month. In fact, from a price return perspective, European HY was down -0.4 percent in September, reflecting the widening in spreads on economic growth concerns.

    In the month, the fund registered a positive performance of +0.3 percent, mainly reflecting the more prudent positioning of the Investment Manager which reduced the fund’s volatility. Going forward, given the already tight spreads within the HY space and an economic scenario, which is pointing to more downside risks, the Investment Manager shall be looking to maintain a prudent approach.

  • 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)*

    36.26%

    *View Performance History below
    Inception Date: 01 Sep 2011
    ISIN: MT7000003059
    Bloomberg Ticker: CALCHIE MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 1.44%
    Exit Charge: None
    Distribution Yield (%): 3.9
    Underlying Yield (%): 4.53
    Distribution: 31/03 and 30/09
    Total Net Assets: €44.6 m
    Month end NAV in EUR: 92.63
    Number of Holdings: 94
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 19.9

    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

    4.125% HP Pelzer 2024
    2.3%
    5.00% Nidda Bondco 2025
    2.3%
    6.00% Loxam 2025
    2.1%
    2.25% Portugal Gov'n 203
    2.1%
    5.00% Tendam Brands 2024
    2.1%
    4.00% Chemours 2026
    2.1%
    5.875% Selecta 2024
    1.9%
    7.00% Marb Bondco 2024
    1.7%
    7.50% Garfunkelux 2022
    1.7%
    6.75% Promontoria 2023
    1.7%

    Top Holdings by Country*

    Malta
    13.0%
    France
    12.3%
    Germany
    10.0%
    Spain
    7.5%
    Brazil
    6.9%
    USA
    5.3%
    Switzerland
    4.7%
    Russia
    3.4%
    Ireland
    2.9%
    UK
    2.7%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    24.5%
    Consumer Discretionary
    14.7%
    Consumer Staples
    10.6%
    Industrials
    8.3%
    Materials
    7.9%
    Asset 7
    Communications
    6.7%
    *excluding exposures to CIS

    Asset Allocation

    Cash 8.8%
    Bonds 85.8%
    CIS/ETFs 5.4%

    Maturity Buckets*

    49.1%
    0-5 Years
    17.5%
    5-10 Years
    0.3%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    5.46%

    2018

    -6.44%

    2017

    5.31%

    2016

    4.97%

    2015

    -0.86%

    Inception***

    36.26%

    *Data in the chart does not include any dividends distributed since the Fund was launched on 1st September 2011.
    **Performance figures are calculated using the Value Added Monthly Index "VAMI" principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding
    ***The Distributor Share Class (Class D) was launched on 01 September 2011.

    Credit Ratings*

    Average Credit Rating: BB-
    *excluding exposures to CIS

    Currency Allocation

    Euro 85.4%
    USD 14.6%
    Other 0.0%

    Risk Statistics

    Sharpe Ratio
    0.95 (3Y)
    0.59 (5Y)
    Std. Deviation
    2.68 (3Y)
    3.46 (5Y)
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