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

May 2019

Risky assets struggled in May as trade war uncertainties emerged once again. The selloff that began in early May came as optimism over a trade agreement between the US and China turned to pessimism when negotiations hit a roadblock. In addition to, Mexico is now in the tariff loop after Trump threatened tariffs if illegal immigration is not handled.

Markets were caught by surprise as the trade-war saga seemed to be on the verge of a deal. However, the once again unpredictable Trump, triggered market volatility. Indeed, the saga extension has continued to build recession fears, which in turn triggered an exodus from risky assets into the more considered safer heavens, such as government bonds. Indeed, we’ve seen the 10-year Bund turning to negative levels of circa 0.201 percent from January’s positive 0.2 percent levels.

European High Yield suffered in the month given the risk-off mode, with spreads ticking the 434 bps levels. Liquidity has also had its weighting as we’ve experienced wider spreads, which in turn impacted valuation prices.

It must be said that the euphoria we had seen in the first three months of the year seemingly dissipated in May and was not strong to clock in another positive month. European High Yield was down 1.38% not only due to Trade War fears but also due to the ongoing uncertainty relating to Brexit and the Italian economy.

Indeed, in May, the Manager was faced with the aforementioned headwinds of volatility. Despite, the recently increased cash levels and the exposure to government bonds, this wasn’t sufficient to mitigate the volatile market. The Manager still believes that eventually the trade war saga would be resolved and in this regard, we should seem a positive sentiment. The Manager will continue to monitor the appropriate timing to deploy its current cash levels, in line with its objective.

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)*

34.11%

*View Performance History below
Inception Date: 01 Sep 2011
ISIN: MT7000003059
Bloomberg Ticker: CALCHIE MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.43%
Exit Charge: None
Distribution Yield (%): 3.9
Underlying Yield (%): 4.69
Distribution: 31/03 and 30/09
Total Net Assets: €45.1 m
Month end NAV in EUR: 91.17
Number of Holdings: 94
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 19.4

Performance To Date (EUR)

Top 10 Holdings

4.125% HP Pelzer 2024
2.3%
4.00% Chemours 2026
2.2%
5.00% Nidda Bondco 2025
2.2%
6.00% Loxam 2025
2.1%
5.00% Tendam 2024
2.0%
5.875% Selecta 2024
1.8%
6.25% Synlab 2022
1.8%
6.75% Promontoria 2023
1.7%
7.00% Marb Bondco 2024
1.6%
4.00% Sappi Papier 2023
1.6%

Major Sector Breakdown*

Financials
24.2%
Consumer Discretionary
14.6%
Consumer Staples
11.4%
Industrials
9.4%
Materials
8.5%
Asset 7
Communications
6.6%
*excluding exposures to CIS

Maturity Buckets*

50.7%
0-5 Years
16.6%
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*

France
11.2%
Malta
10.3%
Germany
10.0%
Spain
8.2%
Brazil
6.5%
USA
5.3%
Switzerland
4.7%
Russia
3.2%
UK
3.1%
Ireland
2.8%
*including exposures to CIS

Asset Allocation

Cash 10.4%
Bonds 85.9%
CIS/ETFs 3.7%

Performance History (EUR)*

YTD

3.80%

2018

-6.44%

2017

5.31%

2016

4.97%

2015

-0.86%

Inception***

34.11%

*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 85.3%
USD 14.7%
Other 0.0%

Risk Statistics

Sharpe Ratio
0.86 (3Y)
0.41 (5Y)
Std. Deviation
2.82 (3Y)
3.48 (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

    May 2019

    Risky assets struggled in May as trade war uncertainties emerged once again. The selloff that began in early May came as optimism over a trade agreement between the US and China turned to pessimism when negotiations hit a roadblock. In addition to, Mexico is now in the tariff loop after Trump threatened tariffs if illegal immigration is not handled.

    Markets were caught by surprise as the trade-war saga seemed to be on the verge of a deal. However, the once again unpredictable Trump, triggered market volatility. Indeed, the saga extension has continued to build recession fears, which in turn triggered an exodus from risky assets into the more considered safer heavens, such as government bonds. Indeed, we’ve seen the 10-year Bund turning to negative levels of circa 0.201 percent from January’s positive 0.2 percent levels.

    European High Yield suffered in the month given the risk-off mode, with spreads ticking the 434 bps levels. Liquidity has also had its weighting as we’ve experienced wider spreads, which in turn impacted valuation prices.

    It must be said that the euphoria we had seen in the first three months of the year seemingly dissipated in May and was not strong to clock in another positive month. European High Yield was down 1.38% not only due to Trade War fears but also due to the ongoing uncertainty relating to Brexit and the Italian economy.

    Indeed, in May, the Manager was faced with the aforementioned headwinds of volatility. Despite, the recently increased cash levels and the exposure to government bonds, this wasn’t sufficient to mitigate the volatile market. The Manager still believes that eventually the trade war saga would be resolved and in this regard, we should seem a positive sentiment. The Manager will continue to monitor the appropriate timing to deploy its current cash levels, in line with its objective.

  • 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)*

    34.11%

    *View Performance History below
    Inception Date: 01 Sep 2011
    ISIN: MT7000003059
    Bloomberg Ticker: CALCHIE MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 1.43%
    Exit Charge: None
    Distribution Yield (%): 3.9
    Underlying Yield (%): 4.69
    Distribution: 31/03 and 30/09
    Total Net Assets: €45.1 m
    Month end NAV in EUR: 91.17
    Number of Holdings: 94
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 19.4

    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%
    4.00% Chemours 2026
    2.2%
    5.00% Nidda Bondco 2025
    2.2%
    6.00% Loxam 2025
    2.1%
    5.00% Tendam 2024
    2.0%
    5.875% Selecta 2024
    1.8%
    6.25% Synlab 2022
    1.8%
    6.75% Promontoria 2023
    1.7%
    7.00% Marb Bondco 2024
    1.6%
    4.00% Sappi Papier 2023
    1.6%

    Top Holdings by Country*

    France
    11.2%
    Malta
    10.3%
    Germany
    10.0%
    Spain
    8.2%
    Brazil
    6.5%
    USA
    5.3%
    Switzerland
    4.7%
    Russia
    3.2%
    UK
    3.1%
    Ireland
    2.8%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    24.2%
    Consumer Discretionary
    14.6%
    Consumer Staples
    11.4%
    Industrials
    9.4%
    Materials
    8.5%
    Asset 7
    Communications
    6.6%
    *excluding exposures to CIS

    Asset Allocation

    Cash 10.4%
    Bonds 85.9%
    CIS/ETFs 3.7%

    Maturity Buckets*

    50.7%
    0-5 Years
    16.6%
    5-10 Years
    0.3%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    3.80%

    2018

    -6.44%

    2017

    5.31%

    2016

    4.97%

    2015

    -0.86%

    Inception***

    34.11%

    *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 85.3%
    USD 14.7%
    Other 0.0%

    Risk Statistics

    Sharpe Ratio
    0.86 (3Y)
    0.41 (5Y)
    Std. Deviation
    2.82 (3Y)
    3.48 (5Y)
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