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

September 2019

In September investors were primarily focused on the Fed’s statement, rather than the rate cut, which was already being priced-in by market participants. As a matter of formality, the Fed cut the federal fund rate by 25bps sighting increased pressures on the macro-economic front. In its statement, the Fed sounded more dovish despite the fact that job gains remained solid, while the unemployment rate remained at low levels, however it sighted the weakness in business fixed investment and exports.

From the data front, the U.S. experienced weakness in both leading and lagging indicators – possibly a sign of coolness in the economy as the trade-war saga continues to put pressure on investors’ sentiment. In fact, the ISM non-manufacturing PMI slumped to 52.6, the lowest level since August 2016. Likewise, the ISM manufacturing PMI dropped to 47.8 levels, missing expectations of 50.1. This was the steepest contraction in the manufacturing sector since 2009. In addition, as sentiment continues to be damped by the trade-war saga, the ‘economic optimism index’ fell to 50.8, the lowest since February.

In the month of September, Global HY recorded a total return of +0.46 percent, with gains being solely locked from the carry trade, as investors continue to be wary of the geopolitical tensions which are also being reflected in economic data. Given that Global HY holds weighting in EM debt, the latter mitigated the downside experienced in U.S. HY.

The fund continues to outperform its internal benchmark with a monthly gain of +0.54 percent, while it continues to preserve its strong risk-adjusted metrics. Going forward, the Investment Manager will continue to manage its risk-adjusted metrics in line with the dynamic macro environment that is being negatively impacted by geopolitical tensions.

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)*

20.89%

*View Performance History below
Inception Date: 30 May 2013
ISIN: MT7000007753
Bloomberg Ticker: CALCHIA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.48%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 4.50
Distribution: N/A
Total Net Assets: $17.9 m
Month end NAV in USD: 126.67
Number of Holdings: 45
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 30.1

Performance To Date (USD)

Top 10 Holdings

iShared USD HY Corp
6.1%
7.00% KB Home 2021
3.6%
4.75% Lennar 2022
2.9%
5.375% Petrobras 2021
2.9%
5.625% Ineos 2024
2.9%
5.299% Petrobras 2025
2.4%
6.25% IGT 2022
2.4%
5.25% Sberbank 2023
2.4%
8.00% Unicredit Perp
2.3%
4.10% MMC Norilsk 2023
2.3%

Major Sector Breakdown*

Financials
20.1%
Materials
14.1%
Consumer Discretionary
13.6%
Asset 7
Communications
9.0%
Energy
8.9%
Consumer Staples
5.6%
*excluding exposures to CIS

Maturity Buckets*

65.6%
0-5 Years
9.5%
5-10 Years
2.9%
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*

USA
25.3%
Russia
15.3%
Brazil
12.1%
UK
8.5%
Turkey
4.5%
Indonesia
4.2%
Switzerland
3.0%
China
3.0%
Italy
2.3%
France
2.3%
*including exposures to CIS

Asset Allocation

Cash 12.7%
Bonds 79.3%
CIS/ETFs 8.0%

Performance History (EUR)*

YTD

8.57%

2018

-3.22%

2017

-2.59%

2016

1.00%

2015

-2.59%

Inception*

20.89%

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

Currency Allocation

USD 100.0%
Other 0.0%

Risk Statistics

Sharpe Ratio
1.07 (3Y)
0.36 (5Y)
Std. Deviation
2.37 (3Y)
3.53 (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

    September 2019

    In September investors were primarily focused on the Fed’s statement, rather than the rate cut, which was already being priced-in by market participants. As a matter of formality, the Fed cut the federal fund rate by 25bps sighting increased pressures on the macro-economic front. In its statement, the Fed sounded more dovish despite the fact that job gains remained solid, while the unemployment rate remained at low levels, however it sighted the weakness in business fixed investment and exports.

    From the data front, the U.S. experienced weakness in both leading and lagging indicators – possibly a sign of coolness in the economy as the trade-war saga continues to put pressure on investors’ sentiment. In fact, the ISM non-manufacturing PMI slumped to 52.6, the lowest level since August 2016. Likewise, the ISM manufacturing PMI dropped to 47.8 levels, missing expectations of 50.1. This was the steepest contraction in the manufacturing sector since 2009. In addition, as sentiment continues to be damped by the trade-war saga, the ‘economic optimism index’ fell to 50.8, the lowest since February.

    In the month of September, Global HY recorded a total return of +0.46 percent, with gains being solely locked from the carry trade, as investors continue to be wary of the geopolitical tensions which are also being reflected in economic data. Given that Global HY holds weighting in EM debt, the latter mitigated the downside experienced in U.S. HY.

    The fund continues to outperform its internal benchmark with a monthly gain of +0.54 percent, while it continues to preserve its strong risk-adjusted metrics. Going forward, the Investment Manager will continue to manage its risk-adjusted metrics in line with the dynamic macro environment that is being negatively impacted by geopolitical tensions.

  • 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)*

    20.89%

    *View Performance History below
    Inception Date: 30 May 2013
    ISIN: MT7000007753
    Bloomberg Ticker: CALCHIA MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 1.48%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 4.50
    Distribution: N/A
    Total Net Assets: $17.9 m
    Month end NAV in USD: 126.67
    Number of Holdings: 45
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 30.1

    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

    iShared USD HY Corp
    6.1%
    7.00% KB Home 2021
    3.6%
    4.75% Lennar 2022
    2.9%
    5.375% Petrobras 2021
    2.9%
    5.625% Ineos 2024
    2.9%
    5.299% Petrobras 2025
    2.4%
    6.25% IGT 2022
    2.4%
    5.25% Sberbank 2023
    2.4%
    8.00% Unicredit Perp
    2.3%
    4.10% MMC Norilsk 2023
    2.3%

    Top Holdings by Country*

    USA
    25.3%
    Russia
    15.3%
    Brazil
    12.1%
    UK
    8.5%
    Turkey
    4.5%
    Indonesia
    4.2%
    Switzerland
    3.0%
    China
    3.0%
    Italy
    2.3%
    France
    2.3%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    20.1%
    Materials
    14.1%
    Consumer Discretionary
    13.6%
    Asset 7
    Communications
    9.0%
    Energy
    8.9%
    Consumer Staples
    5.6%
    *excluding exposures to CIS

    Asset Allocation

    Cash 12.7%
    Bonds 79.3%
    CIS/ETFs 8.0%

    Maturity Buckets*

    65.6%
    0-5 Years
    9.5%
    5-10 Years
    2.9%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    8.57%

    2018

    -3.22%

    2017

    -2.59%

    2016

    1.00%

    2015

    -2.59%

    Inception*

    20.89%

    *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
    1.07 (3Y)
    0.36 (5Y)
    Std. Deviation
    2.37 (3Y)
    3.53 (5Y)
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