Investment Objectives

The CC Global 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 Global 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 Global 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 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

August 2020

Policymakers hoped that the Covid-19 pandemic would recede during the hotter summer months, instigating policymakers to gradually lift restrictions at the start of summer season in the northern hemisphere. However, even though record temperatures were registered in August, the virus has unfortunately continued to spread. There have now been over 25 million cases globally, up from 10 million at the start of July.

Even though the number of new daily cases in the US has started to decline, some regions, including Europe, are now facing a second wave where the daily increase in cases is back close to the levels seen at the height of the crisis in March and April. So far, better testing and tracing capacity has allowed European policymakers to treat this second wave with targeted measures, including travel restrictions or the requirement to wear a face mask in public, instead of national lockdowns. This was done in an effort to better balance public health policies with economic policies.

The negotiations relating to a new coronavirus relief bill have continued to stall in Washington. For millions of Americans, the delay in passing another stimulus package could have painful consequences. Thanks to the CARES Act, passed in March, an extra $600 per week of unemployment benefit was provided to workers who qualified for unemployment insurance but this extra financial support expired on 31 July. Since the beginning of August, those who have lost their jobs are back on normal, much less generous, unemployment benefits. Moving forward, without further fiscal stimulus or a vaccine, the jobless are likely to struggle in the face of a potential prolonged period of inactivity due to the pandemic.

From the political arena, the presidential campaign has continued to gather steam with the nomination of Kamala Harris as Joe Biden’s running mate and the official nomination of Donald Trump as the Republican nominee. So far, the most recent polls continue to point to a victory for the Democrats.

From the macroeconomic data front, the U.S. reported a continued improvement in manufacturing, with the PMI expanding to 56.0 from 54.2 in the previous month. Similarly, U.S. Services PMI bounced, with surveys expecting it to increase to 54.8 from 50.0 in the previous month; however, the reported figure was at the expansionary level of 55.0. This gives confidence to the notion that activity has bottomed out, and we are initiating the road towards a resumption of economic activity more in line with previous norms.

The CC Global High income fund advanced 1.4%, lagging its benchmark by circa 200bps comparatively given its underweight position in Energy names, albeit with a much lower level of volatility. US high yield spreads narrowed on a more positive outlook. Going forward the Manager believes that credit markets will continue to be supported by the actions taken by the Fed as well as the uplift from the sequential easing of Covid-19 restrictions. The outlook for the energy sector remains mixed as the US rig count remains at record lows due to persistently low price of crude oil. To this end, the Manager believes that the fund is well positioned to navigate the current volatile environment.

A quick introduction to our Global 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 (USD)

$

ASSET CLASS

Bonds

MIN. INITIAL INVESTMENT

$3000

FUND TYPE

UCITS

BASE CURRENCY

USD

RETURN (SINCE INCEPTION)*

8.13%

*View Performance History below
Inception Date: 29 May 2013
ISIN: MT7000007753
Bloomberg Ticker: CALCHIA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.42%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 5.04
Distribution: N/A
Total Net Assets: $16.86 m
Month end NAV in USD: 127.72
Number of Holdings: 46
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 35.3

Performance To Date (USD)

Top 10 Holdings

iShares USD HY Corp
7.5%
8.00% Unicredit perp
3.9%
7% KB Home 2021
3.8%
6.75% Societe Generale perp
3.8%
4.75% Lennar Corp 2022
3.2%
5.625% Ineos Group 2024
3.0%
5.299% Petrobras 2025
2.6%
5.25% Sberbank 2023
2.6%
4.1% MMC Norilsk 2023
2.5%
4.00% Veon Holdings 2025
2.5%

Major Sector Breakdown*

Financials
20.6%
Materials
16.4%
Consumer Discretionary
12.8%
Asset 7
Communications
9.4%
Consumer Staples
9.0%
Energy
8.6%
*excluding exposures to CIS

Maturity Buckets*

61.6%
0-5 Years
17.9%
5-10 Years
4.4%
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*

USA
25.8%
Russia
25.1%
Brazil
12.2%
UK
5.5%
France
5.0%
Turkey
4.8%
Italy
3.9%
Switzerland
3.3%
Germany
2.3%
China
1.3%
*including exposures to CIS

Asset Allocation

Cash 7.3%
Bonds 83.9%
CIS/ETFs 8.8%

Performance History (EUR)*

YTD

-0.68%

2019

10.23%

2018

-3.22%

2017

5.71%

2016

10.01%

Inception*

8.13%

*The Accumulator Share Class (Class A) was launched on 29 May 2013

Currency Allocation

USD 100.0%
Other 0.0%

Risk Statistics

Sharpe Ratio
0.27 (3Y)
0.52 (5Y)
Std. Deviation
8.11% (3Y)
6.80% (5Y)

Interested in this product?

  • Investment Objectives

    The CC Global 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 Global 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

    August 2020

    Policymakers hoped that the Covid-19 pandemic would recede during the hotter summer months, instigating policymakers to gradually lift restrictions at the start of summer season in the northern hemisphere. However, even though record temperatures were registered in August, the virus has unfortunately continued to spread. There have now been over 25 million cases globally, up from 10 million at the start of July.

    Even though the number of new daily cases in the US has started to decline, some regions, including Europe, are now facing a second wave where the daily increase in cases is back close to the levels seen at the height of the crisis in March and April. So far, better testing and tracing capacity has allowed European policymakers to treat this second wave with targeted measures, including travel restrictions or the requirement to wear a face mask in public, instead of national lockdowns. This was done in an effort to better balance public health policies with economic policies.

    The negotiations relating to a new coronavirus relief bill have continued to stall in Washington. For millions of Americans, the delay in passing another stimulus package could have painful consequences. Thanks to the CARES Act, passed in March, an extra $600 per week of unemployment benefit was provided to workers who qualified for unemployment insurance but this extra financial support expired on 31 July. Since the beginning of August, those who have lost their jobs are back on normal, much less generous, unemployment benefits. Moving forward, without further fiscal stimulus or a vaccine, the jobless are likely to struggle in the face of a potential prolonged period of inactivity due to the pandemic.

    From the political arena, the presidential campaign has continued to gather steam with the nomination of Kamala Harris as Joe Biden’s running mate and the official nomination of Donald Trump as the Republican nominee. So far, the most recent polls continue to point to a victory for the Democrats.

    From the macroeconomic data front, the U.S. reported a continued improvement in manufacturing, with the PMI expanding to 56.0 from 54.2 in the previous month. Similarly, U.S. Services PMI bounced, with surveys expecting it to increase to 54.8 from 50.0 in the previous month; however, the reported figure was at the expansionary level of 55.0. This gives confidence to the notion that activity has bottomed out, and we are initiating the road towards a resumption of economic activity more in line with previous norms.

    The CC Global High income fund advanced 1.4%, lagging its benchmark by circa 200bps comparatively given its underweight position in Energy names, albeit with a much lower level of volatility. US high yield spreads narrowed on a more positive outlook. Going forward the Manager believes that credit markets will continue to be supported by the actions taken by the Fed as well as the uplift from the sequential easing of Covid-19 restrictions. The outlook for the energy sector remains mixed as the US rig count remains at record lows due to persistently low price of crude oil. To this end, the Manager believes that the fund is well positioned to navigate the current volatile environment.

  • 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 (USD)

    $

    ASSET CLASS

    Bonds

    MIN. INITIAL INVESTMENT

    $3000

    FUND TYPE

    UCITS

    BASE CURRENCY

    USD

    RETURN (SINCE INCEPTION)*

    8.13%

    *View Performance History below
    Inception Date: 29 May 2013
    ISIN: MT7000007753
    Bloomberg Ticker: CALCHIA MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 1.42%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 5.04
    Distribution: N/A
    Total Net Assets: $16.86 m
    Month end NAV in USD: 127.72
    Number of Holdings: 46
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 35.3

    Performance To Date (USD)

    Risk & Reward Profile

    1
    2
    3
    4
    5
    6
    7
    Lower Risk

    Potentialy Lower Reward

    Higher Risk

    Potentialy Higher Reward

    Top 10 Holdings

    iShares USD HY Corp
    7.5%
    8.00% Unicredit perp
    3.9%
    7% KB Home 2021
    3.8%
    6.75% Societe Generale perp
    3.8%
    4.75% Lennar Corp 2022
    3.2%
    5.625% Ineos Group 2024
    3.0%
    5.299% Petrobras 2025
    2.6%
    5.25% Sberbank 2023
    2.6%
    4.1% MMC Norilsk 2023
    2.5%
    4.00% Veon Holdings 2025
    2.5%

    Top Holdings by Country*

    USA
    25.8%
    Russia
    25.1%
    Brazil
    12.2%
    UK
    5.5%
    France
    5.0%
    Turkey
    4.8%
    Italy
    3.9%
    Switzerland
    3.3%
    Germany
    2.3%
    China
    1.3%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    20.6%
    Materials
    16.4%
    Consumer Discretionary
    12.8%
    Asset 7
    Communications
    9.4%
    Consumer Staples
    9.0%
    Energy
    8.6%
    *excluding exposures to CIS

    Asset Allocation

    Cash 7.3%
    Bonds 83.9%
    CIS/ETFs 8.8%

    Maturity Buckets*

    61.6%
    0-5 Years
    17.9%
    5-10 Years
    4.4%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -0.68%

    2019

    10.23%

    2018

    -3.22%

    2017

    5.71%

    2016

    10.01%

    Inception*

    8.13%

    *The Accumulator Share Class (Class A) was launched on 29 May 2013

    Credit Ratings*

    Average Credit Rating: BB-
    *excluding exposures to CIS

    Currency Allocation

    USD 100.0%
    Other 0.0%

    Risk Statistics

    Sharpe Ratio
    0.27 (3Y)
    0.52 (5Y)
    Std. Deviation
    8.11% (3Y)
    6.80% (5Y)
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