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

July 2019

Markets saw a mixed sentiment throughout the whole of July; uncertainties revolving around the Fed’s decision to a rate cut along with ECB’s Mario Draghi hinting at easing were the stars of the month. Needless to say, investors were seen to take a cautious approach during the month after the rally seen in the month of June. By the end of July, the Fed cut rates by 25bps, a move which was not digested positively by markets that expected a more aggressive stance. On the other hand, Mario Draghi left rates unchanged, however indicated that the downward trend in data will be monitored and easing actions will be taken if deemed necessary.

Apart from the Fed and the ECB’s statement at the end of the month, markets saw top U.S and Chinese trade officials meet in Shanghai for talks in a bid to end a yearlong trade war, despite low expectations for progress and combative remarks from the US President. The next round of talks are scheduled for September.

Indeed, due to the mixed sentiment in markets throughout July, the 10-Year U.S. Treasury yield traded in the range of 1.97% – 2.02%, while U.S. High Yield only gained 0.51 percent. In spread terms, U.S. High Yield tightened from 407bps in June to 393 bps as at end of July.

During July, the Manager opted to de-risk the portfolio by trimming from positions that reported weak results. On the contrary, the Manager opted in opening a position in CSN, the Brazilian steel company, in anticipation of its second quarter results based on a spike in iron ore prices, another segment in their revenue stream. Going forward, the Manager will continue to seek risk-reward positions, in addition to the protection of the year-to-date performance.

A quick introduction to our Global High Income Bond Fund

Watch Video

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)*

36.42%

*View Performance History below
Inception Date: 01 Sep 2011
ISIN: MT7000003067
Bloomberg Ticker: CALCHIU MV
Entry Charge: None
Total Expense Ratio: 1.48%
Exit Charge: None
Distribution Yield (%): 4.900
Underlying Yield (%): 4.89
Distribution: 31/03 and 30/09
Total Net Assets: $18.1 m
Month end NAV in USD: 91.98
Number of Holdings: 48
Auditors: Deloitte Malta
Legal Advisor: Ganado & Associates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 27.6

Performance To Date (USD)

Top 10 Holdings

iShared USD HY Corp
4.0%
7.00% KB Home 2021
3.6%
5.375% Petrobras 2021
2.9%
4.75% Lennar 2022
2.9%
5.625% Ineos 2024
2.8%
5.299% Petrobras 2025
2.4%
6.25% IGT 2022
2.3%
5.25% Sberbank 2023
2.3%
7.25% JBS 2024
2.3%
4.375% Ford Motors 2023
2.3%

Major Sector Breakdown*

Financials
23.6%
Materials
13.9%
Consumer Discretionary
13.4%
Energy
8.7%
Asset 7
Communications
8.7%
Consumer Staples
7.7%
*excluding exposures to CIS

Maturity Buckets*

68.5%
0-5 Years
11.6%
5-10 Years
2.8%
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
21.1%
Russia
15.0%
Brazil
14.1%
UK
8.3%
Turkey
4.4%
Indonesia
4.2%
China
3.5%
Switzerland
3.0%
France
2.2%
Italy
2.2%
*including exposures to CIS

Asset Allocation

Cash 12.0%
Bonds 84.0%
CIS/ETFs 4.0%

Performance History (EUR)*

YTD

7.67%

2018

-3.22%

2017

5.70%

2016

10.02%

2015

-2.59%

Inception***

36.42%

*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
0.92 (3Y)
0.23 (5Y)
Std. Deviation
2.45 (3Y)
3.57 (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

    July 2019

    Markets saw a mixed sentiment throughout the whole of July; uncertainties revolving around the Fed’s decision to a rate cut along with ECB’s Mario Draghi hinting at easing were the stars of the month. Needless to say, investors were seen to take a cautious approach during the month after the rally seen in the month of June. By the end of July, the Fed cut rates by 25bps, a move which was not digested positively by markets that expected a more aggressive stance. On the other hand, Mario Draghi left rates unchanged, however indicated that the downward trend in data will be monitored and easing actions will be taken if deemed necessary.

    Apart from the Fed and the ECB’s statement at the end of the month, markets saw top U.S and Chinese trade officials meet in Shanghai for talks in a bid to end a yearlong trade war, despite low expectations for progress and combative remarks from the US President. The next round of talks are scheduled for September.

    Indeed, due to the mixed sentiment in markets throughout July, the 10-Year U.S. Treasury yield traded in the range of 1.97% – 2.02%, while U.S. High Yield only gained 0.51 percent. In spread terms, U.S. High Yield tightened from 407bps in June to 393 bps as at end of July.

    During July, the Manager opted to de-risk the portfolio by trimming from positions that reported weak results. On the contrary, the Manager opted in opening a position in CSN, the Brazilian steel company, in anticipation of its second quarter results based on a spike in iron ore prices, another segment in their revenue stream. Going forward, the Manager will continue to seek risk-reward positions, in addition to the protection of the year-to-date performance.

  • 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)*

    36.42%

    *View Performance History below
    Inception Date: 01 Sep 2011
    ISIN: MT7000003067
    Bloomberg Ticker: CALCHIU MV
    Entry Charge: None
    Total Expense Ratio: 1.48%
    Exit Charge: None
    Distribution Yield (%): 4.900
    Underlying Yield (%): 4.89
    Distribution: 31/03 and 30/09
    Total Net Assets: $18.1 m
    Month end NAV in USD: 91.98
    Number of Holdings: 48
    Auditors: Deloitte Malta
    Legal Advisor: Ganado & Associates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 27.6

    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%
    7.00% KB Home 2021
    3.6%
    5.375% Petrobras 2021
    2.9%
    4.75% Lennar 2022
    2.9%
    5.625% Ineos 2024
    2.8%
    5.299% Petrobras 2025
    2.4%
    6.25% IGT 2022
    2.3%
    5.25% Sberbank 2023
    2.3%
    7.25% JBS 2024
    2.3%
    4.375% Ford Motors 2023
    2.3%

    Top Holdings by Country*

    USA
    21.1%
    Russia
    15.0%
    Brazil
    14.1%
    UK
    8.3%
    Turkey
    4.4%
    Indonesia
    4.2%
    China
    3.5%
    Switzerland
    3.0%
    France
    2.2%
    Italy
    2.2%
    *including exposures to CIS

    Major Sector Breakdown*

    Financials
    23.6%
    Materials
    13.9%
    Consumer Discretionary
    13.4%
    Energy
    8.7%
    Asset 7
    Communications
    8.7%
    Consumer Staples
    7.7%
    *excluding exposures to CIS

    Asset Allocation

    Cash 12.0%
    Bonds 84.0%
    CIS/ETFs 4.0%

    Maturity Buckets*

    68.5%
    0-5 Years
    11.6%
    5-10 Years
    2.8%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    7.67%

    2018

    -3.22%

    2017

    5.70%

    2016

    10.02%

    2015

    -2.59%

    Inception***

    36.42%

    *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
    0.92 (3Y)
    0.23 (5Y)
    Std. Deviation
    2.45 (3Y)
    3.57 (5Y)
  • Downloads

Designed and Developed by