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

November 2020

In years to come, when people look back on the Covid-19 crisis and what was a torrid year for the world, November will likely be marked as a turning point. The announcement of three vaccines that are effective against the virus drove a risk-on mood in markets and added fuel to the post-US election rally, eclipsing worries about the near-term economic outlook.

Joe Biden has been elected as the new US president and cabinet appointments, with Ms Yellen back on the forefront, seems to promise a return to policy-making normality, with closer coordination between fiscal and monetary policy. The first coronavirus vaccines are on track for international deployment within weeks on both sides of the Atlantic. This improves the prospects for a recovery in the global economy, and this has subsequently been reflected in asset prices worldwide.

Despite the positive undertones for 2021, the immediate picture remains strained, with record virus cases in the United States, and selectively in Europe. The resultant lockdowns and social distancing measures have upended the momentum in risk assets following the announcement of the multiple vaccines and rollout plans thereof. Additionally, President Donald Trump has refused to throw in the title and is making avail of all of his legal avenues to claw onto the presidency. Despite this, the market at large expects a smooth transition come January.

The Federal Reserve kept its main rate on hold at its lowest level between 0 per cent and 0.25 per cent and reiterated its willingness to keep it there until the pandemic hit recovery reached full employment with higher inflation. As negative interest rates have been ruled out, the minutes of the November Federal Open Market Committee signalled the central bank is ready to make changes in the pace and composition of its asset purchase programme if circumstances shifted, while not being in a hurry to make the changes.
Data has become a very sensitive element for market participants as it depicts the strength of the recovery, particularly in light of the current restrictions in place in the West. Despite economic data confirming that the pace of recovery stalled over the summer, we are nowhere near the levels experienced during the first lockdown.

The economic recovery in the U.S. has been proceeding at a good pace, but there are some signs that it is slowing. The U.S. reported an expansion in manufacturing, below expectations, with the PMI expanding to 57.5 from 59.3 in the previous month and a forecast of 58.0. Similarly, U.S. Services PMI were in expansionary territory at 55.9, lower than the 56.6 in the previous month. This gives confidence to the notion that activity has tentatively bottomed out, and we are initiating the road towards a resumption of economic activity more in line with previous norms.

Within the HY asset space, US high yield performed in line with its European counterparts, closing off a strong month at 4.10 percent. The asset class was benefitted from the Biden victory, vaccine news and subsequent risk-on mode for assets, particularly in the energy sector, which saw a steep recovery on the back of a marked increase in the price of oil.

The CC Global High income fund increased 3.12%, compared to a 4.10% increase in the benchmark, underperforming its benchmark by 98bps comparatively given its underweight position in Energy names, albeit with a much lower level of volatility.

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. To this end, the Manager believes that the fund is well positioned to navigate the current volatile environment and looks to add positions selectively to companies with suitable metrics.

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)

N/A

ASSET CLASS

Bonds

MIN. INITIAL INVESTMENT

$3000

FUND TYPE

UCITS

BASE CURRENCY

USD

RETURN (SINCE INCEPTION)*

N/A

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 (%): 5.23
Distribution: N/A
Total Net Assets: $16.87 mn
Month end NAV in USD: 131.12
Number of Holdings: 46
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 35.5

Performance To Date (USD)

Top 10 Holdings

iShares USD HY Corp
5.9%
8.00% Unicredit perp
4.0%
6.75% Societe Generale Perp
4.0%
7% KB Home 2021
3.8%
6.25% HSBC 2169
3.8%
4.75% Lennar Corp 2022
3.2%
5.625% Ineos Group 2024
3.1%
5.299% Petrobras 2025
2.7%
5.25% Sberbank 2023
2.5%
6.35% Turkey 2024
2.5%

Major Sector Breakdown*

Financials
19.5%
Asset 7
Communications
9.6%
Materials
6.8%
Industrials
6.4%
Materials
5.4%
Consumer Staples
5.2%
*excluding exposures to CIS

Maturity Buckets*

64.9%
0-5 Years
17.0%
5-10 Years
6.0%
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*

Russia
25.8%
USA
24.4%
Brazil
10.5%
UK
6.8%
Germany
5.6%
France
5.3%
Turkey
5.0%
Italy
4.0%
Switzerland
3.4%
Canada
1.1%
*including exposures to CIS

Asset Allocation

Cash 4.9%
Bonds 87.9%
CIS/ETFs 7.2%

Performance History (EUR)*

YTD

1.96%

2019

10.23%

2018

-3.22%

2017

5.71%

2016

10.01%

Annualised Since Inception*

1.40%

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

Currency Allocation

USD 100.0%
Other 0.0%

Risk Statistics

Sharpe Ratio
-0.22 (3Y)
-0.07 (5Y)
Std. Deviation
8.43% (3Y)
7.23% (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

    November 2020

    In years to come, when people look back on the Covid-19 crisis and what was a torrid year for the world, November will likely be marked as a turning point. The announcement of three vaccines that are effective against the virus drove a risk-on mood in markets and added fuel to the post-US election rally, eclipsing worries about the near-term economic outlook.

    Joe Biden has been elected as the new US president and cabinet appointments, with Ms Yellen back on the forefront, seems to promise a return to policy-making normality, with closer coordination between fiscal and monetary policy. The first coronavirus vaccines are on track for international deployment within weeks on both sides of the Atlantic. This improves the prospects for a recovery in the global economy, and this has subsequently been reflected in asset prices worldwide.

    Despite the positive undertones for 2021, the immediate picture remains strained, with record virus cases in the United States, and selectively in Europe. The resultant lockdowns and social distancing measures have upended the momentum in risk assets following the announcement of the multiple vaccines and rollout plans thereof. Additionally, President Donald Trump has refused to throw in the title and is making avail of all of his legal avenues to claw onto the presidency. Despite this, the market at large expects a smooth transition come January.

    The Federal Reserve kept its main rate on hold at its lowest level between 0 per cent and 0.25 per cent and reiterated its willingness to keep it there until the pandemic hit recovery reached full employment with higher inflation. As negative interest rates have been ruled out, the minutes of the November Federal Open Market Committee signalled the central bank is ready to make changes in the pace and composition of its asset purchase programme if circumstances shifted, while not being in a hurry to make the changes.
    Data has become a very sensitive element for market participants as it depicts the strength of the recovery, particularly in light of the current restrictions in place in the West. Despite economic data confirming that the pace of recovery stalled over the summer, we are nowhere near the levels experienced during the first lockdown.

    The economic recovery in the U.S. has been proceeding at a good pace, but there are some signs that it is slowing. The U.S. reported an expansion in manufacturing, below expectations, with the PMI expanding to 57.5 from 59.3 in the previous month and a forecast of 58.0. Similarly, U.S. Services PMI were in expansionary territory at 55.9, lower than the 56.6 in the previous month. This gives confidence to the notion that activity has tentatively bottomed out, and we are initiating the road towards a resumption of economic activity more in line with previous norms.

    Within the HY asset space, US high yield performed in line with its European counterparts, closing off a strong month at 4.10 percent. The asset class was benefitted from the Biden victory, vaccine news and subsequent risk-on mode for assets, particularly in the energy sector, which saw a steep recovery on the back of a marked increase in the price of oil.

    The CC Global High income fund increased 3.12%, compared to a 4.10% increase in the benchmark, underperforming its benchmark by 98bps comparatively given its underweight position in Energy names, albeit with a much lower level of volatility.

    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. To this end, the Manager believes that the fund is well positioned to navigate the current volatile environment and looks to add positions selectively to companies with suitable metrics.

  • 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)

    N/A

    ASSET CLASS

    Bonds

    MIN. INITIAL INVESTMENT

    $3000

    FUND TYPE

    UCITS

    BASE CURRENCY

    USD

    RETURN (SINCE INCEPTION)*

    N/A

    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 (%): 5.23
    Distribution: N/A
    Total Net Assets: $16.87 mn
    Month end NAV in USD: 131.12
    Number of Holdings: 46
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 35.5

    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
    5.9%
    8.00% Unicredit perp
    4.0%
    6.75% Societe Generale Perp
    4.0%
    7% KB Home 2021
    3.8%
    6.25% HSBC 2169
    3.8%
    4.75% Lennar Corp 2022
    3.2%
    5.625% Ineos Group 2024
    3.1%
    5.299% Petrobras 2025
    2.7%
    5.25% Sberbank 2023
    2.5%
    6.35% Turkey 2024
    2.5%

    Top Holdings by Country*

    Russia
    25.8%
    USA
    24.4%
    Brazil
    10.5%
    UK
    6.8%
    Germany
    5.6%
    France
    5.3%
    Turkey
    5.0%
    Italy
    4.0%
    Switzerland
    3.4%
    Canada
    1.1%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    19.5%
    Asset 7
    Communications
    9.6%
    Materials
    6.8%
    Industrials
    6.4%
    Materials
    5.4%
    Consumer Staples
    5.2%
    *excluding exposures to CIS

    Asset Allocation

    Cash 4.9%
    Bonds 87.9%
    CIS/ETFs 7.2%

    Maturity Buckets*

    64.9%
    0-5 Years
    17.0%
    5-10 Years
    6.0%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    1.96%

    2019

    10.23%

    2018

    -3.22%

    2017

    5.71%

    2016

    10.01%

    Annualised Since Inception*

    1.40%

    *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
    -0.22 (3Y)
    -0.07 (5Y)
    Std. Deviation
    8.43% (3Y)
    7.23% (5Y)
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