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
A quick introduction to our Global High Income Bond Fund
Key Facts & Performance
Fund Manager
Mark Vella
Mark Vella is an Investment Manager at Calamatta Cuschieri with over 10 years' experience. He specialises in Fixed Income where his main responsibilities include co-managing the fixed income segment of discretionary portfolios. He is a member on a number of Investment Committees. He is a regular contributor to the Times of Malta Online. He graduated with honours in Banking & Finance from the University of Malta.
PRICE (USD)
$
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
$3000
FUND TYPE
UCITS
BASE CURRENCY
USD
RETURN (SINCE INCEPTION)*
19.89%
*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 (%): 4.89
Distribution: N/A
Total Net Assets: $18.1 m
Month end NAV in USD: 125.62
Number of Holdings: 48
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 27.6
Performance To Date (USD)
Top 10 Holdings
4.0%
3.6%
2.9%
2.9%
2.8%
2.4%
2.3%
2.3%
2.3%
2.3%
Major Sector Breakdown*
Financials
23.6%
Materials
13.9%
Consumer Discretionary
13.4%
Energy
8.7%
Communications
8.7%
Consumer Staples
7.7%
Maturity Buckets*
Credit Ratings*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
21.1%
15.0%
14.1%
8.3%
4.4%
4.2%
3.5%
3.0%
2.2%
2.2%
Asset Allocation
Performance History (EUR)*
YTD
7.67%
2018
-3.22%
2017
-2.59%
2016
1.00%
2015
-2.59%
Inception*
19.89%
Currency Allocation
Risk Statistics
0.92 (3Y)
0.23 (5Y)
2.45 (3Y)
3.57 (5Y)
Interested in this product?
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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 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
July 2019
Markets saw a mixed sentiment throughout the whole of July; uncertainties revolving around the Fed’s decision to a rate cut along with ECB’s Mario Draghi hinting at easing were the stars of the month. Needless to say, investors were seen to take a cautious approach during the month after the rally seen in the month of June. By the end of July, the Fed cut rates by 25bps, a move which was not digested positively by markets that expected a more aggressive stance. On the other hand, Mario Draghi left rates unchanged, however indicated that the downward trend in data will be monitored and easing actions will be taken if deemed necessary.
Apart from the Fed and the ECB’s statement at the end of the month, markets saw top U.S and Chinese trade officials meet in Shanghai for talks in a bid to end a yearlong trade war, despite low expectations for progress and combative remarks from the US President. The next round of talks are scheduled for September.
Indeed, due to the mixed sentiment in markets throughout July, the 10-Year U.S. Treasury yield traded in the range of 1.97% – 2.02%, while U.S. High Yield only gained 0.51 percent. In spread terms, U.S. High Yield tightened from 407bps in June to 393 bps as at end of July.
During July, the Manager opted to de-risk the portfolio by trimming from positions that reported weak results. On the contrary, the Manager opted in opening a position in CSN, the Brazilian steel company, in anticipation of its second quarter results based on a spike in iron ore prices, another segment in their revenue stream. Going forward, the Manager will continue to seek risk-reward positions, in addition to the protection of the year-to-date performance.
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Key facts & performance
Fund Manager
Mark Vella
Mark Vella is an Investment Manager at Calamatta Cuschieri with over 10 years' experience. He specialises in Fixed Income where his main responsibilities include co-managing the fixed income segment of discretionary portfolios. He is a member on a number of Investment Committees. He is a regular contributor to the Times of Malta Online. He graduated with honours in Banking & Finance from the University of Malta.
PRICE (USD)
$
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
$3000
FUND TYPE
UCITS
BASE CURRENCY
USD
RETURN (SINCE INCEPTION)*
19.89%
*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 (%): 4.89
Distribution: N/A
Total Net Assets: $18.1 m
Month end NAV in USD: 125.62
Number of Holdings: 48
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 27.6
Performance To Date (USD)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
iShared USD HY Corp4.0%
7.00% KB Home 20213.6%
5.375% Petrobras 20212.9%
4.75% Lennar 20222.9%
5.625% Ineos 20242.8%
5.299% Petrobras 20252.4%
6.25% IGT 20222.3%
5.25% Sberbank 20232.3%
7.25% JBS 20242.3%
4.375% Ford Motors 20232.3%
Top Holdings by Country*
USA21.1%
Russia15.0%
Brazil14.1%
UK8.3%
Turkey4.4%
Indonesia4.2%
China3.5%
Switzerland3.0%
France2.2%
Italy2.2%
*including exposures to CISMajor Sector Breakdown*
Financials
23.6%
Materials
13.9%
Consumer Discretionary
13.4%
Energy
8.7%
Communications
8.7%
Consumer Staples
7.7%
*excluding exposures to CISAsset Allocation
Cash 12.0%Bonds 84.0%CIS/ETFs 4.0%Maturity Buckets*
68.5%0-5 Years11.6%5-10 Years2.8%10 Years+*based on the Next Call DatePerformance History (EUR)*
YTD
7.67%
2018
-3.22%
2017
-2.59%
2016
1.00%
2015
-2.59%
Inception*
19.89%
*The Accumulator Share Class (Class A) was launched on 29 May 2013Currency Allocation
USD 100.0%Other 0.0%Risk Statistics
Sharpe Ratio0.92 (3Y)
0.23 (5Y)
Std. Deviation2.45 (3Y)
3.57 (5Y)
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Downloads
Commentary
July 2019
Markets saw a mixed sentiment throughout the whole of July; uncertainties revolving around the Fed’s decision to a rate cut along with ECB’s Mario Draghi hinting at easing were the stars of the month. Needless to say, investors were seen to take a cautious approach during the month after the rally seen in the month of June. By the end of July, the Fed cut rates by 25bps, a move which was not digested positively by markets that expected a more aggressive stance. On the other hand, Mario Draghi left rates unchanged, however indicated that the downward trend in data will be monitored and easing actions will be taken if deemed necessary.
Apart from the Fed and the ECB’s statement at the end of the month, markets saw top U.S and Chinese trade officials meet in Shanghai for talks in a bid to end a yearlong trade war, despite low expectations for progress and combative remarks from the US President. The next round of talks are scheduled for September.
Indeed, due to the mixed sentiment in markets throughout July, the 10-Year U.S. Treasury yield traded in the range of 1.97% – 2.02%, while U.S. High Yield only gained 0.51 percent. In spread terms, U.S. High Yield tightened from 407bps in June to 393 bps as at end of July.
During July, the Manager opted to de-risk the portfolio by trimming from positions that reported weak results. On the contrary, the Manager opted in opening a position in CSN, the Brazilian steel company, in anticipation of its second quarter results based on a spike in iron ore prices, another segment in their revenue stream. Going forward, the Manager will continue to seek risk-reward positions, in addition to the protection of the year-to-date performance.