Investment Objectives

The CC 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 High Income 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 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

January 2019

The long awaited boost in markets occurred in January; the dovish approach taken by both the Federal Reserve (Fed) and the European Central Bank (ECB) allowed markets to have a positive retracement. Indeed, credit markets were in need of some sort of comfort being from a monetary aspect or from the geopolitical front following a negative 2018. In fact, markets applauded the dovish stance amid concerns of slow global growth and geopolitical uncertainty.

Latest data from China continued to display signs of softness specifically inflation being less than expected, while manufacturing activity contracted for the second time in January. In this regard, we should continue to see further stimulus from the fiscal and monetary front. Other regions have also showed weakness with Germany facing the consequences of the Trade War. This was witnessed in the latest industrial figures that registered its worst performance in more than 5 years.

Moreover, Brexit and Italy are other uncertainties for 2019. The latter was dragged into a recession with uncertainty increasing due to the very unpopular economic measures being implemented by the populist government, which are however seen to be very welcomed by southern Italy citizens.

A positive for credit markets in January was the Fed’s dovish tone with the market now pricing no interest rate hikes for 2019.This led to a tighter U.S. Treasury Curve and a weaker dollar. Furthermore, the ECB also softened its tone on the back of geopolitical issues.

For 2019, we are more constructive given the recent supporting monetary stance, which should be a positive trigger for HY debt. In the month of January, the fund outperformed the market as the Managers opted in dipping into credit that was harshly impacted in 2018. The Managers will continue to seek value in credit stories with attractive valuations and adjust the cash levels accordingly.

A quick introduction to our 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)*

31.67%

*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 (%): 4.39
Distribution: 31/03 and 30/09
Total Net Assets: €46.1 m
Month and NAV in EUR: 91.27
Number of Holdings: 93
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 19

Performance To Date (EUR)

Top 10 Holdings

4.125% HP Pelzer 2024
2.2%
4.00% Ineos 2023
2.2%
4.00% Chemours 2026
2.1%
5.00% Nidda Bondco 2025
2.0%
6.50% Lecta 2023
1.9%
5.00% Tendam 2024
1.9%
6.25% Sylnab 2022
1.8%
6.75% Promontoria 2023
1.7%
6.5% CMA CGM 2022
1.6%
4.00% Sappi Papier 2023
1.5%

Major Sector Breakdown*

Financials
22.2%
Consumer Discretionary
13.5%
Materials
11.6%
Consumer Staples
11.5%
Industrials
9.0%
Asset 7
Communications
6.4%
*excluding exposures to CIS

Maturity Buckets*

51.4%
0-5 Years
19.4%
5-10 Years
0.9%
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
12.0%
Germany
9.5%
Spain
8.0%
Malta
7.8%
Brazil
5.9%
UK
5.6%
USA
4.6%
Switzerland
4.0%
Russia
3.0%
Ireland
2.7%
*including exposures to CIS

Asset Allocation

Cash 10.6%
Bonds 85.8%
CIS/ETFs 3.5%

Performance History (EUR)*

YTD

1.91%

2017

5.31%

2016

4.97%

2015

-0.86%

2014

1.88%

Inception***

31.67%

*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 86.6%
USD 13.4%
Other 0.0%

Risk Statistics

Sharpe Ratio
0.86 (3Y)
0.50 (5Y)
Std. Deviation
3.19 (3Y)
3.44 (5Y)

Interested in this product?

  • Investment Objectives

    The CC 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 High Income 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

    January 2019

    The long awaited boost in markets occurred in January; the dovish approach taken by both the Federal Reserve (Fed) and the European Central Bank (ECB) allowed markets to have a positive retracement. Indeed, credit markets were in need of some sort of comfort being from a monetary aspect or from the geopolitical front following a negative 2018. In fact, markets applauded the dovish stance amid concerns of slow global growth and geopolitical uncertainty.

    Latest data from China continued to display signs of softness specifically inflation being less than expected, while manufacturing activity contracted for the second time in January. In this regard, we should continue to see further stimulus from the fiscal and monetary front. Other regions have also showed weakness with Germany facing the consequences of the Trade War. This was witnessed in the latest industrial figures that registered its worst performance in more than 5 years.

    Moreover, Brexit and Italy are other uncertainties for 2019. The latter was dragged into a recession with uncertainty increasing due to the very unpopular economic measures being implemented by the populist government, which are however seen to be very welcomed by southern Italy citizens.

    A positive for credit markets in January was the Fed’s dovish tone with the market now pricing no interest rate hikes for 2019.This led to a tighter U.S. Treasury Curve and a weaker dollar. Furthermore, the ECB also softened its tone on the back of geopolitical issues.

    For 2019, we are more constructive given the recent supporting monetary stance, which should be a positive trigger for HY debt. In the month of January, the fund outperformed the market as the Managers opted in dipping into credit that was harshly impacted in 2018. The Managers will continue to seek value in credit stories with attractive valuations and adjust the cash levels accordingly.

  • 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)*

    31.67%

    *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 (%): 4.39
    Distribution: 31/03 and 30/09
    Total Net Assets: €46.1 m
    Month and NAV in EUR: 91.27
    Number of Holdings: 93
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 19

    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
    2.2%
    4.00% Ineos 2023
    2.2%
    4.00% Chemours 2026
    2.1%
    5.00% Nidda Bondco 2025
    2.0%
    6.50% Lecta 2023
    1.9%
    5.00% Tendam 2024
    1.9%
    6.25% Sylnab 2022
    1.8%
    6.75% Promontoria 2023
    1.7%
    6.5% CMA CGM 2022
    1.6%
    4.00% Sappi Papier 2023
    1.5%

    Top Holdings by Country*

    France
    12.0%
    Germany
    9.5%
    Spain
    8.0%
    Malta
    7.8%
    Brazil
    5.9%
    UK
    5.6%
    USA
    4.6%
    Switzerland
    4.0%
    Russia
    3.0%
    Ireland
    2.7%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    22.2%
    Consumer Discretionary
    13.5%
    Materials
    11.6%
    Consumer Staples
    11.5%
    Industrials
    9.0%
    Asset 7
    Communications
    6.4%
    *excluding exposures to CIS

    Asset Allocation

    Cash 10.6%
    Bonds 85.8%
    CIS/ETFs 3.5%

    Maturity Buckets*

    51.4%
    0-5 Years
    19.4%
    5-10 Years
    0.9%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    1.91%

    2017

    5.31%

    2016

    4.97%

    2015

    -0.86%

    2014

    1.88%

    Inception***

    31.67%

    *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 86.6%
    USD 13.4%
    Other 0.0%

    Risk Statistics

    Sharpe Ratio
    0.86 (3Y)
    0.50 (5Y)
    Std. Deviation
    3.19 (3Y)
    3.44 (5Y)
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