Investment Objectives

The CC Global High Income Bond Fund Distributor 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 Distributor is:

  • Seeking to earn a high level of regular Income
  • Seeking an actively managed & diversified investment in high-yield bonds

Fund Rules

The Investment Manager of the CC Global High Income Bond Funds USD and EUR 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

April 2020

Risk assets have rallied throughout the month of April as the fear and panic associated with the outbreak of the COVID-19 virus, which lead to black-swan events in March were eased by government policy interventions. In our view, the propagation of the shock to financial markets due to the virus outbreak is directly linked to the evolution of the virus and the duration of the containment measures. 

Indeed the swift actions taken primarily by Federal Reserve (Fed), emerged is crucial in calming waters across the credit space. Despite that initially markets were not impressed by actions taken by major central banks, the decision taken by the Fed on the 9th of April, in which it expanded its list of eligible bonds, was a clear signal that monetary politicians will do whatever it takes. The move eased both market and corporate liquidity tensions. In fact, following the announcement we’ve saw healthier liquidity in secondary markets, while the primary market re-opened following a standstill month in March. 

The more agile approach from the U.S. was also crucial in transmitting market confidence. The U.S. launched an additional $484 billion relief package, including a $321 billion top-up of its funding for small businesses. That takes the fiscal support passed by Congress to nearly $3 trillion in the past two months. Moreover, the Federal Reserve built on its “whatever it takes“ approach to help the economy through the coronavirus shock and ensuring markets function properly. According to economists worldwide, the Fed’s balance sheet will more than double to $11 trillion by year-end. Indeed, central bank policy has moved from mostly alleviating the dysfunction of market pricing and tightening of financial conditions to ensuring credit flows to businesses and local governments. The recently announced extraordinary measures by central banks, including purchases of corporate debt provide a favourable back -drop for credit. 

From the macroeconomic front, the U.S. reported a contraction in Manufacturing, with the PMI deteriorating to 36.1 from 48.5 in March, pointing to a continued contraction in the manufacturing sector, the worst since August of 2009. Similarly, U.S. Services PMI continued its decline, with surveys expecting it to drop to 30.0 from 39.8 in the previous month. New business contracted at a record pace, with exports also falling sharply, as the coronavirus pandemic led to business closures and sharply reduced client demand. From the employment front, the number of Americans filling for unemployment benefits resumed its record breaking pace, with claims piling up in the month of April at record levels, with 5.2 million claims in the second week and 4.4 million claims in the 3rd week of April.

Yields remained hovering around record lows, the U.S. mostly sought benchmark; the 10-year Treasury yield, tightened marginally by 3.8 basis points for the month of April after tightening considerably during the third week of April, closing the month at .642 per cent. 

The CC Global High income fund continues to outperform comparatively given its underweight position in Energy names. In the month of April the fund recouped 4.8 percent and continues to outperform its internal comparative benchmark by circa 350bps. Throughout the month, the fund continued to benefit from its underweight exposure to the energy sector, which continued to experience volatile sessions which are now more aligned to the demand woes brought about by covid-19. Going forward the Manager believes that credit markets will continue to be supported by the actions taken by the Fed. To this end the Manager believes that the fund is well positioned.

A quick introduction to our Global High Income Bond Fund

Watch Video

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)*

0.56%

*View Performance History below
Inception Date: 01 Sep 2011
ISIN: MT7000003067
Bloomberg Ticker: CALCHIU MV
Entry Charge: None
Total Expense Ratio: 1.42%
Exit Charge: None
Distribution Yield (%): 4.000
Underlying Yield (%): 5.49
Distribution: 31/03 and 30/09
Total Net Assets: $15.61 m
Month end NAV in USD: 83.56
Number of Holdings: 48
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 34.5

Performance To Date (USD)

Top 10 Holdings

iShared USD HY Corp
6.1%
7% KB Home 2021
4.1%
6.75% Societe General Perp
3.6%
8.00% Unicredit perp
3.6%
4.75% Lennar Corp 2022
3.3%
5.625% Ineos Group 2024
3.2%
5.25% Sberbank 2023
2.7%
4.1% MMC Norilsk 2023
2.7%
4.00% Veon Holdings 2025
2.6%
2.25% Apple Inc. 2021
2.6%

Major Sector Breakdown*

Financials
20.8%
Materials
15.5%
Consumer Discretionary
13.3%
Asset 7
Communications
9.9%
Energy
8.7%
Consumer Staples
7.9%
*excluding exposures to CIS

Maturity Buckets*

66.1%
0-5 Years
17.9%
5-10 Years
3.4%
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
28.8%
Russia
24.4%
Brazil
11.7%
Turkey
5.0%
France
4.9%
Italy
3.6%
China
3.5%
Switzerland
3.5%
UK
3.2%
Germany
2.3%
*including exposures to CIS

Asset Allocation

Cash 5.2%
Bonds 87.4%
CIS/ETFs 7.4%

Performance History (EUR)*

YTD

-7.64%

2019

10.22%

2018

-3.22%

2017

5.70%

2016

10.02%

Inception***

0.56%

*Data in the chart does not include any dividends distributed since the Fund was launched on 1st September 2011.
**Performance figures are calculated using the Value Added Monthly Index "VAMI" principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding
***The Distributor Share Class (Class D) was launched on 01 September 2011.

Currency Allocation

USD 100.0%
Other 0.0%

Risk Statistics

Sharpe Ratio
0.03 (3Y)
0.23 (5Y)
Std. Deviation
7.75 (3Y)
6.61 (5Y)

Interested in this product?

  • Investment Objectives

    The CC Global High Income Bond Fund Distributor 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 Distributor is:

    • Seeking to earn a high level of regular Income
    • Seeking an actively managed & diversified investment in high-yield bonds
    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

    April 2020

    Risk assets have rallied throughout the month of April as the fear and panic associated with the outbreak of the COVID-19 virus, which lead to black-swan events in March were eased by government policy interventions. In our view, the propagation of the shock to financial markets due to the virus outbreak is directly linked to the evolution of the virus and the duration of the containment measures. 

    Indeed the swift actions taken primarily by Federal Reserve (Fed), emerged is crucial in calming waters across the credit space. Despite that initially markets were not impressed by actions taken by major central banks, the decision taken by the Fed on the 9th of April, in which it expanded its list of eligible bonds, was a clear signal that monetary politicians will do whatever it takes. The move eased both market and corporate liquidity tensions. In fact, following the announcement we’ve saw healthier liquidity in secondary markets, while the primary market re-opened following a standstill month in March. 

    The more agile approach from the U.S. was also crucial in transmitting market confidence. The U.S. launched an additional $484 billion relief package, including a $321 billion top-up of its funding for small businesses. That takes the fiscal support passed by Congress to nearly $3 trillion in the past two months. Moreover, the Federal Reserve built on its “whatever it takes“ approach to help the economy through the coronavirus shock and ensuring markets function properly. According to economists worldwide, the Fed’s balance sheet will more than double to $11 trillion by year-end. Indeed, central bank policy has moved from mostly alleviating the dysfunction of market pricing and tightening of financial conditions to ensuring credit flows to businesses and local governments. The recently announced extraordinary measures by central banks, including purchases of corporate debt provide a favourable back -drop for credit. 

    From the macroeconomic front, the U.S. reported a contraction in Manufacturing, with the PMI deteriorating to 36.1 from 48.5 in March, pointing to a continued contraction in the manufacturing sector, the worst since August of 2009. Similarly, U.S. Services PMI continued its decline, with surveys expecting it to drop to 30.0 from 39.8 in the previous month. New business contracted at a record pace, with exports also falling sharply, as the coronavirus pandemic led to business closures and sharply reduced client demand. From the employment front, the number of Americans filling for unemployment benefits resumed its record breaking pace, with claims piling up in the month of April at record levels, with 5.2 million claims in the second week and 4.4 million claims in the 3rd week of April.

    Yields remained hovering around record lows, the U.S. mostly sought benchmark; the 10-year Treasury yield, tightened marginally by 3.8 basis points for the month of April after tightening considerably during the third week of April, closing the month at .642 per cent. 

    The CC Global High income fund continues to outperform comparatively given its underweight position in Energy names. In the month of April the fund recouped 4.8 percent and continues to outperform its internal comparative benchmark by circa 350bps. Throughout the month, the fund continued to benefit from its underweight exposure to the energy sector, which continued to experience volatile sessions which are now more aligned to the demand woes brought about by covid-19. Going forward the Manager believes that credit markets will continue to be supported by the actions taken by the Fed. To this end the Manager believes that the fund is well positioned.

  • 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)*

    0.56%

    *View Performance History below
    Inception Date: 01 Sep 2011
    ISIN: MT7000003067
    Bloomberg Ticker: CALCHIU MV
    Entry Charge: None
    Total Expense Ratio: 1.42%
    Exit Charge: None
    Distribution Yield (%): 4.000
    Underlying Yield (%): 5.49
    Distribution: 31/03 and 30/09
    Total Net Assets: $15.61 m
    Month end NAV in USD: 83.56
    Number of Holdings: 48
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 34.5

    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

    iShared USD HY Corp
    6.1%
    7% KB Home 2021
    4.1%
    6.75% Societe General Perp
    3.6%
    8.00% Unicredit perp
    3.6%
    4.75% Lennar Corp 2022
    3.3%
    5.625% Ineos Group 2024
    3.2%
    5.25% Sberbank 2023
    2.7%
    4.1% MMC Norilsk 2023
    2.7%
    4.00% Veon Holdings 2025
    2.6%
    2.25% Apple Inc. 2021
    2.6%

    Top Holdings by Country*

    USA
    28.8%
    Russia
    24.4%
    Brazil
    11.7%
    Turkey
    5.0%
    France
    4.9%
    Italy
    3.6%
    China
    3.5%
    Switzerland
    3.5%
    UK
    3.2%
    Germany
    2.3%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    20.8%
    Materials
    15.5%
    Consumer Discretionary
    13.3%
    Asset 7
    Communications
    9.9%
    Energy
    8.7%
    Consumer Staples
    7.9%
    *excluding exposures to CIS

    Asset Allocation

    Cash 5.2%
    Bonds 87.4%
    CIS/ETFs 7.4%

    Maturity Buckets*

    66.1%
    0-5 Years
    17.9%
    5-10 Years
    3.4%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -7.64%

    2019

    10.22%

    2018

    -3.22%

    2017

    5.70%

    2016

    10.02%

    Inception***

    0.56%

    *Data in the chart does not include any dividends distributed since the Fund was launched on 1st September 2011.
    **Performance figures are calculated using the Value Added Monthly Index "VAMI" principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding
    ***The Distributor Share Class (Class D) was launched on 01 September 2011.

    Credit Ratings*

    Average Credit Rating: BB-
    *excluding exposures to CIS

    Currency Allocation

    USD 100.0%
    Other 0.0%

    Risk Statistics

    Sharpe Ratio
    0.03 (3Y)
    0.23 (5Y)
    Std. Deviation
    7.75 (3Y)
    6.61 (5Y)
  • Downloads

Designed and Developed by