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

May 2019

Risky assets struggled in May as trade war uncertainties emerged once again. The selloff that began in early May came as optimism over a trade agreement between the US and China turned to pessimism when negotiations hit a roadblock. In addition to, Mexico is now in the tariff loop after Trump threatened tariffs if illegal immigration is not handled.

Markets were caught by surprise as the trade-war saga seemed to be on the verge of a deal. However, the once again unpredictable Trump, triggered market volatility. Indeed, the saga extension has continued to build recession fears, which in turn triggered an exodus from risky assets into the more considered safer heavens, such as government bonds. Indeed, we’ve seen the 10-year Bund turning to negative levels of circa 0.201 percent from January’s positive 0.2 percent levels.

Furthermore, despite the U.S. economy growing 3.2 percent in Q1, the inversion in the U.S. yield curve continued to strengthen, stirring fears of recession. While the current backdrop of economic strength seems like an unlikely environment for additional monetary stimulus, markets feared a Fed rate cut.

Indeed, the less risky bonds, in particular, demonstrated a flight to safety, as the 10-Year U.S. Treasury yield hit a twenty-month low, closing the month at 2.13 percent, while U.S. High yield suffered a 1.03 percent loss.

For three consecutive months, the fund outperformed its internal comparable benchmark on a net basis, by circa 40bps following the more volatile markets as opposed to January and February. The Manager believes that the fund is well positioned, especially in current markets, both in terms of capital appreciation, based on its EM exposure which to date lacked its U.S. peers, but also from a volatility perspective, given its active management.

A quick introduction to our Global High Income Bond Fund

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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)*

17.10%

*View Performance History below
Inception Date: 30 May 2013
ISIN: MT7000007753
Bloomberg Ticker: CALCHIA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.47%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 5.06
Distribution: N/A
Total Net Assets: $17.7 m
Month end NAV in USD: 122.70
Number of Holdings: 48
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 28.8

Performance To Date (USD)

Top 10 Holdings

iShared USD HY Corp
3.9%
5.625% Ineos 2024
3.9%
7.00% KB Home 2021
3.6%
5.375% Petrobras 2021
2.9%
4.75% Lennar 2022
2.9%
5.299% Petrobras 2025
2.3%
6.25% IGT 2022
2.3%
7.25% JBS 2024
2.3%
5.25% Sberbank 2023
2.3%
6.25% GTH Finance 2020
2.3%

Major Sector Breakdown*

Financials
25.8%
Consumer Discretionary
14.7%
Materials
13.9%
Asset 7
Communications
10.6%
Energy
8.8%
Consumer Staples
7.9%
*excluding exposures to CIS

Maturity Buckets*

70.9%
0-5 Years
13.3%
5-10 Years
2.7%
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
23.5%
Russia
15.0%
Brazil
13.0%
UK
9.5%
Indonesia
4.2%
Turkey
4.1%
China
3.8%
Switzerland
3.0%
France
2.2%
Italy
2.0%
*including exposures to CIS

Asset Allocation

Cash 8.1%
Bonds 88.0%
CIS/ETFs 3.9%

Performance History (EUR)*

YTD

5.17%

2018

-3.22%

2017

-2.59%

2016

1.00%

2015

-2.59%

Inception*

17.10%

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

Currency Allocation

USD 100.0%
Other 0.0%

Risk Statistics

Sharpe Ratio
0.78 (3Y)
0.01 (5Y)
Std. Deviation
2.74 (3Y)
3.55 (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

    May 2019

    Risky assets struggled in May as trade war uncertainties emerged once again. The selloff that began in early May came as optimism over a trade agreement between the US and China turned to pessimism when negotiations hit a roadblock. In addition to, Mexico is now in the tariff loop after Trump threatened tariffs if illegal immigration is not handled.

    Markets were caught by surprise as the trade-war saga seemed to be on the verge of a deal. However, the once again unpredictable Trump, triggered market volatility. Indeed, the saga extension has continued to build recession fears, which in turn triggered an exodus from risky assets into the more considered safer heavens, such as government bonds. Indeed, we’ve seen the 10-year Bund turning to negative levels of circa 0.201 percent from January’s positive 0.2 percent levels.

    Furthermore, despite the U.S. economy growing 3.2 percent in Q1, the inversion in the U.S. yield curve continued to strengthen, stirring fears of recession. While the current backdrop of economic strength seems like an unlikely environment for additional monetary stimulus, markets feared a Fed rate cut.

    Indeed, the less risky bonds, in particular, demonstrated a flight to safety, as the 10-Year U.S. Treasury yield hit a twenty-month low, closing the month at 2.13 percent, while U.S. High yield suffered a 1.03 percent loss.

    For three consecutive months, the fund outperformed its internal comparable benchmark on a net basis, by circa 40bps following the more volatile markets as opposed to January and February. The Manager believes that the fund is well positioned, especially in current markets, both in terms of capital appreciation, based on its EM exposure which to date lacked its U.S. peers, but also from a volatility perspective, given its active management.

  • 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)*

    17.10%

    *View Performance History below
    Inception Date: 30 May 2013
    ISIN: MT7000007753
    Bloomberg Ticker: CALCHIA MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 1.47%
    Exit Charge: None
    Distribution Yield (%): N/A
    Underlying Yield (%): 5.06
    Distribution: N/A
    Total Net Assets: $17.7 m
    Month end NAV in USD: 122.70
    Number of Holdings: 48
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 28.8

    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
    3.9%
    5.625% Ineos 2024
    3.9%
    7.00% KB Home 2021
    3.6%
    5.375% Petrobras 2021
    2.9%
    4.75% Lennar 2022
    2.9%
    5.299% Petrobras 2025
    2.3%
    6.25% IGT 2022
    2.3%
    7.25% JBS 2024
    2.3%
    5.25% Sberbank 2023
    2.3%
    6.25% GTH Finance 2020
    2.3%

    Top Holdings by Country*

    USA
    23.5%
    Russia
    15.0%
    Brazil
    13.0%
    UK
    9.5%
    Indonesia
    4.2%
    Turkey
    4.1%
    China
    3.8%
    Switzerland
    3.0%
    France
    2.2%
    Italy
    2.0%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    25.8%
    Consumer Discretionary
    14.7%
    Materials
    13.9%
    Asset 7
    Communications
    10.6%
    Energy
    8.8%
    Consumer Staples
    7.9%
    *excluding exposures to CIS

    Asset Allocation

    Cash 8.1%
    Bonds 88.0%
    CIS/ETFs 3.9%

    Maturity Buckets*

    70.9%
    0-5 Years
    13.3%
    5-10 Years
    2.7%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    5.17%

    2018

    -3.22%

    2017

    -2.59%

    2016

    1.00%

    2015

    -2.59%

    Inception*

    17.10%

    *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
    0.78 (3Y)
    0.01 (5Y)
    Std. Deviation
    2.74 (3Y)
    3.55 (5Y)
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