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

March 2019

The first quarter of the year was a breath of fresh air for investors from the adverse market condition registered in the latter stages of 2018; markets were bolstered on the back of the dovish approach taken by both the Federal Reserve and the European Central Bank.

Economically speaking, we are seeing positive signs from the trade war talks as President Xi and President Trump have formed a common ground. This has in fact given investors a boost in confidence as assets continued to rally. Having said that, the Investment Managers erred on the cautious side, acknowledging however that global economic data was nothing to be exuberant on.

Throughout the quarter, credit spreads tightened, as benchmark yields were driven lower. Worth mentioning however, that with the sharp decline in yields, spreads ended the quarter well above historical lows, which gives room for further possible spread tightening. There was also a marginal yield curve inversion of US Treasuries at the end of March due to the estimated global growth slowdown. That being said, the soft figures from China have made a U-turn to the positive; from factory activity reaching a three-year low in February, March proved to be a better month as strong manufacturing data was seen. Without a doubt, this helped ease investor worries as markets saw a shift from risk-free assets to more risky assets.

Moreover, Brexit still remains at the forefront of investor uncertainty having ended the month of March with the Parliament not agreeing with May’s divorce plan from the EU. To make matters worse, British lawmakers had to vote on various alternatives on the first day of April only to once again have no plan.

Throughout the quarter, given that the Fed hike proved not to emerge, the Managers opted to increase exposures in credit names that also published positive credit metrics such as Selecta and Gestamp. The fund ended the month close to fully invested leaving sufficient liquidity available however for the expected distribution due at the end of the month. Heading forward, the Investment Manager is of the opinion that we could well see credit markets perform relatively well in line with the more dovish stance and there is further room for credit spreads to tighten.

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)*

34.38%

*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 (%): 3.789
Underlying Yield (%): 4.67
Distribution: 31/03 and 30/09
Total Net Assets: €46.6 m
Month and NAV in EUR: 93.15
Number of Holdings: 95
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 19.7

Performance To Date (EUR)

Top 10 Holdings

4.125% HP Pelzer 2024
2.3%
4.00% Ineos 2023
2.2%
4.00% Chemours 2026
2.2%
5.00% Nidda Bondco 2025
2.1%
6.00% Loxam 2025
2.0%
5.00% Tendam 2024
1.9%
6.50% Lecta 2023
1.8%
6.25% Synlab 2022
1.8%
5.875% Selecta 2024
1.8%
6.75% Promontoria 2023
1.7%

Major Sector Breakdown*

Financials
21.3%
Consumer Discretionary
13.6%
Consumer Staples
12.4%
Materials
11.7%
Industrials
9.6%
Asset 7
Communications
6.4%
*excluding exposures to CIS

Maturity Buckets*

52.6%
0-5 Years
15.6%
5-10 Years
0.0%
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
12.8%
Germany
9.8%
Spain
8.6%
Malta
7.8%
Brazil
6.1%
UK
5.1%
USA
5.1%
Switzerland
4.5%
Russia
3.1%
Ireland
2.7%
*including exposures to CIS

Asset Allocation

Cash 9.2%
Bonds 87.2%
CIS/ETFs 3.6%

Performance History (EUR)*

YTD

4.01%

2018

-6.44%

2017

5.31%

2016

4.97%

2015

-0.86%

Inception***

34.38%

*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 85.9%
USD 14.1%
Other 0.0%

Risk Statistics

Sharpe Ratio
1.01 (3Y)
0.55 (5Y)
Std. Deviation
2.76 (3Y)
3.45 (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

    March 2019

    The first quarter of the year was a breath of fresh air for investors from the adverse market condition registered in the latter stages of 2018; markets were bolstered on the back of the dovish approach taken by both the Federal Reserve and the European Central Bank.

    Economically speaking, we are seeing positive signs from the trade war talks as President Xi and President Trump have formed a common ground. This has in fact given investors a boost in confidence as assets continued to rally. Having said that, the Investment Managers erred on the cautious side, acknowledging however that global economic data was nothing to be exuberant on.

    Throughout the quarter, credit spreads tightened, as benchmark yields were driven lower. Worth mentioning however, that with the sharp decline in yields, spreads ended the quarter well above historical lows, which gives room for further possible spread tightening. There was also a marginal yield curve inversion of US Treasuries at the end of March due to the estimated global growth slowdown. That being said, the soft figures from China have made a U-turn to the positive; from factory activity reaching a three-year low in February, March proved to be a better month as strong manufacturing data was seen. Without a doubt, this helped ease investor worries as markets saw a shift from risk-free assets to more risky assets.

    Moreover, Brexit still remains at the forefront of investor uncertainty having ended the month of March with the Parliament not agreeing with May’s divorce plan from the EU. To make matters worse, British lawmakers had to vote on various alternatives on the first day of April only to once again have no plan.

    Throughout the quarter, given that the Fed hike proved not to emerge, the Managers opted to increase exposures in credit names that also published positive credit metrics such as Selecta and Gestamp. The fund ended the month close to fully invested leaving sufficient liquidity available however for the expected distribution due at the end of the month. Heading forward, the Investment Manager is of the opinion that we could well see credit markets perform relatively well in line with the more dovish stance and there is further room for credit spreads to tighten.

  • 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)*

    34.38%

    *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 (%): 3.789
    Underlying Yield (%): 4.67
    Distribution: 31/03 and 30/09
    Total Net Assets: €46.6 m
    Month and NAV in EUR: 93.15
    Number of Holdings: 95
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 19.7

    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% Ineos 2023
    2.2%
    4.00% Chemours 2026
    2.2%
    5.00% Nidda Bondco 2025
    2.1%
    6.00% Loxam 2025
    2.0%
    5.00% Tendam 2024
    1.9%
    6.50% Lecta 2023
    1.8%
    6.25% Synlab 2022
    1.8%
    5.875% Selecta 2024
    1.8%
    6.75% Promontoria 2023
    1.7%

    Top Holdings by Country*

    France
    12.8%
    Germany
    9.8%
    Spain
    8.6%
    Malta
    7.8%
    Brazil
    6.1%
    UK
    5.1%
    USA
    5.1%
    Switzerland
    4.5%
    Russia
    3.1%
    Ireland
    2.7%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    21.3%
    Consumer Discretionary
    13.6%
    Consumer Staples
    12.4%
    Materials
    11.7%
    Industrials
    9.6%
    Asset 7
    Communications
    6.4%
    *excluding exposures to CIS

    Asset Allocation

    Cash 9.2%
    Bonds 87.2%
    CIS/ETFs 3.6%

    Maturity Buckets*

    52.6%
    0-5 Years
    15.6%
    5-10 Years
    0.0%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    4.01%

    2018

    -6.44%

    2017

    5.31%

    2016

    4.97%

    2015

    -0.86%

    Inception***

    34.38%

    *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 85.9%
    USD 14.1%
    Other 0.0%

    Risk Statistics

    Sharpe Ratio
    1.01 (3Y)
    0.55 (5Y)
    Std. Deviation
    2.76 (3Y)
    3.45 (5Y)
  • Downloads

Designed and Developed by