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

March 2019

The first quarter of the year was a breath of fresh air for investors from the adverse market condition registered in the latter stages of 2018; markets were bolstered on the back of the dovish approach taken by both the Federal Reserve and the European Central Bank.

Economically speaking, we are seeing positive signs from the trade war talks as President Xi and President Trump have formed a common ground. This has in fact given investors a boost in confidence as assets continued to rally. Having said that, the Investment Managers erred on the cautious side, acknowledging however that global economic data was nothing to be exuberant on.

Throughout the quarter, credit spreads tightened, as benchmark yields were driven lower. Worth mentioning however, that with the sharp decline in yields, spreads ended the quarter well above historical lows, which gives room for further possible spread tightening. There was also a marginal yield curve inversion of US Treasuries at the end of March due to the estimated global growth slowdown. That being said, the soft figures from China have made a U-turn to the positive; from factory activity reaching a three-year low in February, March proved to be a better month as strong manufacturing data was seen. Without a doubt, this helped ease investor worries as markets saw a shift from risk-free assets to more risky assets.

Moreover, Brexit still remains at the forefront of investor uncertainty having ended the month of March with the Parliament not agreeing with May’s divorce plan from the EU. To make matters worse, British lawmakers had to vote on various alternatives on the first day of April only to once again have no plan.

For the first quarter of the year, the Manager opted to increase exposure in the telecommunications and logistic sector due to the Fed’s accommodative stance and hence a tighter U.S. Treasury Curve. In line with the upbeat sentiment surrounding global credit, the manager sought to remain close to fully invested in an attempt to participate in the rally whilst seeking to deploy residual liquidity in US HY names, at the same time as also riding the wave of spread tightening within the US Investment Grade space. Moving forward, the Managers will continue to seek value in the High Yield sector as yields remain in favour of credit.

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)*

32.61%

*View Performance History below
Inception Date: 01 Sep 2011
ISIN: MT7000003067
Bloomberg Ticker: CALCHIU MV
Entry Charge: None
Total Expense Ratio: 1.47%
Exit Charge: None
Distribution Yield (%): 4.808
Underlying Yield (%): 5.33
Distribution: 31/03 and 30/09
Total Net Assets: $18.2 m
Month and NAV in USD: 91.64
Number of Holdings: 51
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 28.4

Performance To Date (USD)

Top 10 Holdings

iShared USD HY Corp
4.0%
5.625% Ineos 2024
3.8%
7.00% KB Home 2021
3.5%
5.375% Petrobras 2021
2.8%
4.75% Lennar 2022
2.8%
6.25% IGT 2022
2.3%
7.25% JBS 2024
2.3%
6.25% GTH Finance 2020
2.2%
5.299% Petrobras 2025
2.2%
6.00% Icahn Enterprises 2020
2.2%

Major Sector Breakdown*

Financials
27.8%
Consumer Discretionary
14.3%
Materials
13.9%
Asset 7
Communications
10.7%
Energy
10.2%
Consumer Staples
8.8%
*excluding exposures to CIS

Maturity Buckets*

72.9%
0-5 Years
14.9%
5-10 Years
2.6%
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
23.4%
Russia
16.2%
Brazil
13.8%
UK
9.4%
Indonesia
4.3%
Turkey
4.0%
China
3.7%
Switzerland
2.9%
Spain
2.2%
France
2.1%
*including exposures to CIS

Asset Allocation

Cash 4.1%
Bonds 91.9%
CIS/ETFs 4.0%

Performance History (EUR)*

YTD

4.66%

2018

-3.22%

2017

5.70%

2016

10.02%

2015

-2.59%

Inception***

32.61%

*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
1.00 (3Y)
0.08 (5Y)
Std. Deviation
2.77 (3Y)
3.55 (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

    March 2019

    The first quarter of the year was a breath of fresh air for investors from the adverse market condition registered in the latter stages of 2018; markets were bolstered on the back of the dovish approach taken by both the Federal Reserve and the European Central Bank.

    Economically speaking, we are seeing positive signs from the trade war talks as President Xi and President Trump have formed a common ground. This has in fact given investors a boost in confidence as assets continued to rally. Having said that, the Investment Managers erred on the cautious side, acknowledging however that global economic data was nothing to be exuberant on.

    Throughout the quarter, credit spreads tightened, as benchmark yields were driven lower. Worth mentioning however, that with the sharp decline in yields, spreads ended the quarter well above historical lows, which gives room for further possible spread tightening. There was also a marginal yield curve inversion of US Treasuries at the end of March due to the estimated global growth slowdown. That being said, the soft figures from China have made a U-turn to the positive; from factory activity reaching a three-year low in February, March proved to be a better month as strong manufacturing data was seen. Without a doubt, this helped ease investor worries as markets saw a shift from risk-free assets to more risky assets.

    Moreover, Brexit still remains at the forefront of investor uncertainty having ended the month of March with the Parliament not agreeing with May’s divorce plan from the EU. To make matters worse, British lawmakers had to vote on various alternatives on the first day of April only to once again have no plan.

    For the first quarter of the year, the Manager opted to increase exposure in the telecommunications and logistic sector due to the Fed’s accommodative stance and hence a tighter U.S. Treasury Curve. In line with the upbeat sentiment surrounding global credit, the manager sought to remain close to fully invested in an attempt to participate in the rally whilst seeking to deploy residual liquidity in US HY names, at the same time as also riding the wave of spread tightening within the US Investment Grade space. Moving forward, the Managers will continue to seek value in the High Yield sector as yields remain in favour of credit.

  • 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)*

    32.61%

    *View Performance History below
    Inception Date: 01 Sep 2011
    ISIN: MT7000003067
    Bloomberg Ticker: CALCHIU MV
    Entry Charge: None
    Total Expense Ratio: 1.47%
    Exit Charge: None
    Distribution Yield (%): 4.808
    Underlying Yield (%): 5.33
    Distribution: 31/03 and 30/09
    Total Net Assets: $18.2 m
    Month and NAV in USD: 91.64
    Number of Holdings: 51
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 28.4

    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
    4.0%
    5.625% Ineos 2024
    3.8%
    7.00% KB Home 2021
    3.5%
    5.375% Petrobras 2021
    2.8%
    4.75% Lennar 2022
    2.8%
    6.25% IGT 2022
    2.3%
    7.25% JBS 2024
    2.3%
    6.25% GTH Finance 2020
    2.2%
    5.299% Petrobras 2025
    2.2%
    6.00% Icahn Enterprises 2020
    2.2%

    Top Holdings by Country*

    USA
    23.4%
    Russia
    16.2%
    Brazil
    13.8%
    UK
    9.4%
    Indonesia
    4.3%
    Turkey
    4.0%
    China
    3.7%
    Switzerland
    2.9%
    Spain
    2.2%
    France
    2.1%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    27.8%
    Consumer Discretionary
    14.3%
    Materials
    13.9%
    Asset 7
    Communications
    10.7%
    Energy
    10.2%
    Consumer Staples
    8.8%
    *excluding exposures to CIS

    Asset Allocation

    Cash 4.1%
    Bonds 91.9%
    CIS/ETFs 4.0%

    Maturity Buckets*

    72.9%
    0-5 Years
    14.9%
    5-10 Years
    2.6%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    4.66%

    2018

    -3.22%

    2017

    5.70%

    2016

    10.02%

    2015

    -2.59%

    Inception***

    32.61%

    *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
    1.00 (3Y)
    0.08 (5Y)
    Std. Deviation
    2.77 (3Y)
    3.55 (5Y)
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