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 – 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

February 2020

With growth settling back to the roughly 2% pace prevailed during the decade-old economic expansion, fears of a global recession lessening, and the manufacturing cycle seemingly heading for a turnaround following a ‘phase one’ agreement between US and China, outlook for 2020 vis-à-vis economic growth seemed positive. Economic data had started to improve whilst yields started to portray the possibility of a broad economic recovery.

Albeit the initial uptick in January, treasury yields traded downwards, as investors; worried about the potential impact on global economic growth and corporate earnings, as a protectionist measure against economic downturn, shunned global equities, wiping out months of gains, and sought the relative safety of sovereigns.

Subsequent to the increased demand for safer assets, and reflecting expectations of a possible rate cut, the U.S. mostly sought benchmark; the 10-year Treasury Yield tumbled by 37.8 basis points, for the month of February and headed downwards to the 1 per cent levels, closing the month at 1.126 per cent.

Notably, due to the latter shift towards less risky assets, Global HY bond spreads over treasuries significantly widened, closing-off the month on a much weaker note.

From the macroeconomic front, the U.S. reported a slightly lower Manufacturing PMI to 50.7 from 51.90 in January, pointing to the slowest expansion in factory activity in six months, amid historically subdued gains in output and new orders. Similarly, U.S. Services PMI dropped to 49.4 from 53.2 in the previous month, and well below market expectations of 53, shown in a preliminary estimate.

The CC Global High income fund continued to preserve its capital with monthly loss of 0.03 percent despite the notable widening in spreads. Internal comparable indices were down 1.8 percent as volatility prevailed. In line with the downward trend in yields, the Manager opted to go long the UST curve and benefit from the yield tightening in sovereigns, while limiting downside risk by raising cash levels in the more risky bit of the asset class.

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)*

40.76%

*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 (%): 4.500
Underlying Yield (%): 4.63
Distribution: 31/03 and 30/09
Total Net Assets: $17.4 m
Month end NAV in USD: 92.48
Number of Holdings: 46
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 30.5

Performance To Date (USD)

Top 10 Holdings

iShared USD HY Corp
4.1%
6.75% Societe Generale Perp
3.9%
7% KB Home 2021
3.7%
4.75% Lennar 2022
3.0%
Ishares USD Treasury 20+ yrs
3.0%
5.625% Ineos Group 2024
2.9%
5.299% Petrobras 2025
2.5%
8% Unicredit Spa Perp
2.5%
5.25% Sberbank 2023
2.5%
6.35% Republic of Turkey 2024
2.4%

Major Sector Breakdown*

Financials
20.9%
Materials
15.9%
Consumer Discretionary
13.8%
Energy
8.4%
Consumer Staples
7.7%
Asset 7
Communications
6.8%
*excluding exposures to CIS

Maturity Buckets*

61.2%
0-5 Years
16.8%
5-10 Years
4.0%
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*

USA
25.5%
Russia
19.3%
Brazil
11.8%
France
5.1%
Turkey
4.8%
Switzerland
3.1%
China
3.1%
UK
2.9%
Italy
2.5%
Germany
2.4%
*including exposures to CIS

Asset Allocation

Cash 11.1%
Bonds 81.9%
CIS/ETFs 7.1%

Performance History (EUR)*

YTD

0.79%

2019

10.22%

2018

-3.22%

2017

5.70%

2016

10.02%

Inception***

40.76%

*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
1.14 (3Y)
0.75 (5Y)
Std. Deviation
2.31 (3Y)
3.28 (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

    February 2020

    With growth settling back to the roughly 2% pace prevailed during the decade-old economic expansion, fears of a global recession lessening, and the manufacturing cycle seemingly heading for a turnaround following a ‘phase one’ agreement between US and China, outlook for 2020 vis-à-vis economic growth seemed positive. Economic data had started to improve whilst yields started to portray the possibility of a broad economic recovery.

    Albeit the initial uptick in January, treasury yields traded downwards, as investors; worried about the potential impact on global economic growth and corporate earnings, as a protectionist measure against economic downturn, shunned global equities, wiping out months of gains, and sought the relative safety of sovereigns.

    Subsequent to the increased demand for safer assets, and reflecting expectations of a possible rate cut, the U.S. mostly sought benchmark; the 10-year Treasury Yield tumbled by 37.8 basis points, for the month of February and headed downwards to the 1 per cent levels, closing the month at 1.126 per cent.

    Notably, due to the latter shift towards less risky assets, Global HY bond spreads over treasuries significantly widened, closing-off the month on a much weaker note.

    From the macroeconomic front, the U.S. reported a slightly lower Manufacturing PMI to 50.7 from 51.90 in January, pointing to the slowest expansion in factory activity in six months, amid historically subdued gains in output and new orders. Similarly, U.S. Services PMI dropped to 49.4 from 53.2 in the previous month, and well below market expectations of 53, shown in a preliminary estimate.

    The CC Global High income fund continued to preserve its capital with monthly loss of 0.03 percent despite the notable widening in spreads. Internal comparable indices were down 1.8 percent as volatility prevailed. In line with the downward trend in yields, the Manager opted to go long the UST curve and benefit from the yield tightening in sovereigns, while limiting downside risk by raising cash levels in the more risky bit of the asset class.

  • 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)*

    40.76%

    *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 (%): 4.500
    Underlying Yield (%): 4.63
    Distribution: 31/03 and 30/09
    Total Net Assets: $17.4 m
    Month end NAV in USD: 92.48
    Number of Holdings: 46
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 30.5

    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
    4.1%
    6.75% Societe Generale Perp
    3.9%
    7% KB Home 2021
    3.7%
    4.75% Lennar 2022
    3.0%
    Ishares USD Treasury 20+ yrs
    3.0%
    5.625% Ineos Group 2024
    2.9%
    5.299% Petrobras 2025
    2.5%
    8% Unicredit Spa Perp
    2.5%
    5.25% Sberbank 2023
    2.5%
    6.35% Republic of Turkey 2024
    2.4%

    Top Holdings by Country*

    USA
    25.5%
    Russia
    19.3%
    Brazil
    11.8%
    France
    5.1%
    Turkey
    4.8%
    Switzerland
    3.1%
    China
    3.1%
    UK
    2.9%
    Italy
    2.5%
    Germany
    2.4%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    20.9%
    Materials
    15.9%
    Consumer Discretionary
    13.8%
    Energy
    8.4%
    Consumer Staples
    7.7%
    Asset 7
    Communications
    6.8%
    *excluding exposures to CIS

    Asset Allocation

    Cash 11.1%
    Bonds 81.9%
    CIS/ETFs 7.1%

    Maturity Buckets*

    61.2%
    0-5 Years
    16.8%
    5-10 Years
    4.0%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    0.79%

    2019

    10.22%

    2018

    -3.22%

    2017

    5.70%

    2016

    10.02%

    Inception***

    40.76%

    *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
    1.14 (3Y)
    0.75 (5Y)
    Std. Deviation
    2.31 (3Y)
    3.28 (5Y)
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