Investment Objectives

The Fund aims to achieve long-term capital growth by investing in a diversified portfolio of collective investment schemes.

The Investment Manager (“We”) invest in collective investment schemes (“CIS”) (including UCITS, exchange-traded funds and other collective investment undertakings) that invest in a broad range of assets, including debt and equity securities. In instances, this may involve investing in CISs that are managed by the Investment Manager.

The Investment Manager (“We”) aims to build a diversified portfolio spread across several industries and sectors.

The Fund is actively managed, not managed by reference to any index.

The Fund is classified under Article 6 of the SFDR meaning that the investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.

Investor Profile

A typical investor in the CC Balanced Strategy Fund is:

  • Seeking to achieve stable, long-term capital appreciation
  • Seeking an actively managed & diversified investment in equity funds and bond funds
  • Planning to hold their investment for at least 3-5 years 

Fund Rules

  1. The fund may invest up to 40% of its assets in CISs that are permitted to invest 65% or more of their assets in money market instruments.
  2. The fund may invest up to 40% of its assets in CISs that are permitted to invest 65% or more of their assets in investment-grade bonds.
  3. The fund may invest up to 60% of its assets in CISs that are permitted to invest 65% or more of their assets in high yield bonds.
  4. The fund may invest up to 60% of its assets in CISs that are permitted to invest 65% or more of their assets in equity securities.

Commentary

April 2023

Introduction

April brought more calm into markets as earnings season expectations managed to divert the attention focused recently on US banks. This did not equate with the recent turmoil when First Republic Bank ended up being purchased by JP Morgan. Clearly the stress has been insulated within the smaller regional banks as these are more suspicious to losing deposits and consequently higher future funding costs. Major banks as well as the other corporates have been protected by an earnings season, being not impressive, but clearly better than what was feared. Whether this is the last shine from the corporate sector before an economic slowdown remains to be seen, but for the time being market participants still show faith in equity markets. The real economy remained on a strong foothold in developed markets, although some GDP numbers for the first quarter of the year have disappointed. The Chinese economy rebound continued to be subdued while there is a clear U-turn on behalf of Communist authorities as regards the attitude towards private capital. Energy prices have continued their recent down trend which spreads confusion regarding where the global economy is heading. Overall it feels like a no man’s land in terms of macro fundamentals whereby optimism equates with an economic soft landing or a shallow recession. Market opinion is clearly divided in this regard and consequently markets remain jittery.

From the monetary front, monetary authorities have not changed tack in terms of market signalling, as FED and the ECB continued pointing out to increasing rate hikes expected for the near future. Although inflation pressures have recently abated and the trend clearly points downward monthly core levels still remain elevated for central bankers’ taste, therefore market participants hints toward expectations on fast-approaching monetary easing measures continue looking far-fetched. It is rather the credit tightening from financial institutions which became recently apparent which is expected to do the trick in terms of cooling off labour markets and services pricing pressures.

Equity markets are still evolving in a world of their own whereby on very thin breath market indexes continued trending marginally higher. Mega caps were the main growth drivers for markets year to date on both sides of the Atlantic and as such these have gotten even bigger weight in indexes, which distorts the overall market’s performance. Speaking of mega caps’ earnings, although managing to beat market expectations, on a nominal basis most of them do show decreasing profits compared to last year, which make current valuations looking even more expensive than at the height of the covid19 pandemic rally in 2021. In the banking sector, one significant change is European institutions outperforming their US peers, which in itself is a novelty for the post-GCF world. This is but one of the many twists 2023 has brought up front, which makes it one of the most challenging years for asset managers worldwide.

Market Environment and Performance

Forward looking indicators expanded in Europe at the fastest pace in 11 months, driven solely by the services sector. Euro-area manufacturing PMI reading (45.8 v a previous month of 47.3) remained in contractionary territory, while the services PMI (reading 56.2 v previous reading of 55.0) advanced, with Italy and Spain being the main drivers, aided by the tourism industry and the travel boom. Inflationary pressures have disappointed validating the hawkish ECB stance, as core inflation which excludes transitory or temporary price volatility edged marginally lower in April to 5.6% from 5.7% level in the previous month.

In the U.S. aggregate business activity continue to rebound for a third consecutive month. Notably, composite PMI rose sharply from March’s reading (to 53.4 from 52.3) following a solid upturn in private sector business activity. Manufacturing PMI (reading of 50.2) pointed to a first marginal expansion in factory activity. Services PMI reading increased to 53.6 from 52.6 last month, the biggest expansion in service output in a year. Annual inflation rate in the US slowed to 4.9%, well down from its 9.1% peak in June 2022. Month-on-month, core consumer prices remained stable.

Equity markets had a balanced performance during the month torn between the corporate earnings which overall managed to exceed expectations and the macro indicators which continued showing an economic growth slowdown. Marginal signs of sector rotation from growth to value have been seen pointing to a certain uneasiness form market participant as regards the sustainability of the year to date market rally. US markets edged higher helped by resilient earnings from mega caps and still healthy labour markets and consumer sentiment. Their European peers continued their unexpected good performance as the economy continues outperforming analysts’ expectations, while emerging markets were conditioned by the less than impressive recovery in the Chinese

economy. The S&P 500 index gained 1.75% helped by strong earnings reports from major components of the index, such as Microsoft and Alphabet. In Europe, the EuroStoxx50 and the DAX gained 1.72% and 2.58% respectively, driven by strong first quarter sales reports and yearly dividend payouts approaching.

The fixed-income asset class continues to be highly conditioned by the pronounced higher rates which continued to trigger remarkable volatility. European and US investment grade posted positive returns, returning c. 0.69% and 0.82% respectively. The more speculative segment too headed higher.

Fund performance

Performance for the month of April proved positive, noting a 1.07% gain for the CC Balanced Strategy Fund – in line with the moves witnessed across both equity and credit markets at large during such period.

Market and Investment Outlook

Going forward, the Manager is of the view that material decreases in inflation levels globally and the messaging tone from central bankers do point to a fast approaching end of the monetary tightening cycle. From a credit point the Manger believes that the current underlying fixed income exposures within the fund reflect the long-term view and thus the recent volatility is a short-term pain rather than long term. Contrary the Manager believes that a recovery pace is in course as experienced in the initial days of May.

From the equity front, the Manager believes that the gap between fundamentals and equity markets continues to widen as we see the same changing sentiment towards a more bullish stance. Although this comes at odds with its own convictions, the Manager is slowly building a more benevolent approach on equity returns expectations, although coming from a very low base. The same attitude of higher focus to cyclical sectors should be expected while cash levels are deemed appropriate at the prevailing market valuation metrics.

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Key Facts & Performance

Fund Manager

Jordan Portelli

Jordan is CIO at CC Finance Group. He has extensive experience in research and portfolio management with various institutions. Today he is responsible of the group’s investment strategy and manages credit and multi-asset strategies.

PRICE (EUR)

ASSET CLASS

Mixed

MIN. INITIAL INVESTMENT

€5000

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

-11.35%

*View Performance History below
Inception Date: 03 Nov 2021
ISIN: MT7000030664
Bloomberg Ticker: CCPBSCA MV
Entry Charge: Up to 2.50%
Total Expense Ratio: 2.50%
Exit Charge: None
Distribution Yield (%): -
Underlying Yield (%): -
Distribution: Nil
Total Net Assets: €4.71 mn
Month end NAV in EUR: 88.65
Number of Holdings: 23
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 63.5

Performance To Date (EUR)

Top 10 Holdings

UBS (Lux) Bond Fund - Euro High Yield
11.3%
CC Funds SICAV plc - High Income Bond Fund
10.0%
Fundsmith SICAV - Equity Fund
7.8%
Invesco Pan European Equity Fund
6.6%
Nordea 1 - European High Yield Bond Fund
6.1%
FTGF CleaeBridge US Large Cap Equities
5.9%
Robeco BP US Large Cap Equities
4.6%
Comgest Growth plc - Europe Opportunities
4.2%
UBS Lux Equity Fund - European Shares
3.5%
BlackRock Global High Yield Bond Fund
3.5%
Data for major sector breakdown is not available for this fund.
Data for maturity buckets is not available for this fund.
Data for credit ratings is not available for this fund.

Risk & Reward Profile

1
2
3
4
5
6
7
Lower Risk

Potentialy Lower Reward

Higher Risk

Potentialy Higher Reward

Top Holdings by Country

European Region
39.90%
Global
23.60%
International
15.60%
U.S.
11.90%
China
1.40%

Asset Allocation

Fund 87.20%
Cash 7.70%
ETF 5.10%

Performance History (EUR)*

YTD

2.73%

2022

-13.13%

2021

-0.67%

1-month

1.07%

6-month

4.75%

12-month

-2.88%

* The Accumulator Share Class (Class A) was launched on 3 November 2021
** Returns quoted net of TER. Entry and exit charges may reduce returns for investors.

Currency Allocation

Euro 95.40%
USD 4.60%
GBP 0.00%
Data for risk statistics is not available for this fund.

Interested in this product?

  • Investment Objectives

    The Fund aims to achieve long-term capital growth by investing in a diversified portfolio of collective investment schemes.

    The Investment Manager (“We”) invest in collective investment schemes (“CIS”) (including UCITS, exchange-traded funds and other collective investment undertakings) that invest in a broad range of assets, including debt and equity securities. In instances, this may involve investing in CISs that are managed by the Investment Manager.

    The Investment Manager (“We”) aims to build a diversified portfolio spread across several industries and sectors.

    The Fund is actively managed, not managed by reference to any index.

    The Fund is classified under Article 6 of the SFDR meaning that the investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.

  • Investor profile

    A typical investor in the CC Balanced Strategy Fund is:

    • Seeking to achieve stable, long-term capital appreciation
    • Seeking an actively managed & diversified investment in equity funds and bond funds
    • Planning to hold their investment for at least 3-5 years 
    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

  • Commentary

    April 2023

    Introduction

    April brought more calm into markets as earnings season expectations managed to divert the attention focused recently on US banks. This did not equate with the recent turmoil when First Republic Bank ended up being purchased by JP Morgan. Clearly the stress has been insulated within the smaller regional banks as these are more suspicious to losing deposits and consequently higher future funding costs. Major banks as well as the other corporates have been protected by an earnings season, being not impressive, but clearly better than what was feared. Whether this is the last shine from the corporate sector before an economic slowdown remains to be seen, but for the time being market participants still show faith in equity markets. The real economy remained on a strong foothold in developed markets, although some GDP numbers for the first quarter of the year have disappointed. The Chinese economy rebound continued to be subdued while there is a clear U-turn on behalf of Communist authorities as regards the attitude towards private capital. Energy prices have continued their recent down trend which spreads confusion regarding where the global economy is heading. Overall it feels like a no man’s land in terms of macro fundamentals whereby optimism equates with an economic soft landing or a shallow recession. Market opinion is clearly divided in this regard and consequently markets remain jittery.

    From the monetary front, monetary authorities have not changed tack in terms of market signalling, as FED and the ECB continued pointing out to increasing rate hikes expected for the near future. Although inflation pressures have recently abated and the trend clearly points downward monthly core levels still remain elevated for central bankers’ taste, therefore market participants hints toward expectations on fast-approaching monetary easing measures continue looking far-fetched. It is rather the credit tightening from financial institutions which became recently apparent which is expected to do the trick in terms of cooling off labour markets and services pricing pressures.

    Equity markets are still evolving in a world of their own whereby on very thin breath market indexes continued trending marginally higher. Mega caps were the main growth drivers for markets year to date on both sides of the Atlantic and as such these have gotten even bigger weight in indexes, which distorts the overall market’s performance. Speaking of mega caps’ earnings, although managing to beat market expectations, on a nominal basis most of them do show decreasing profits compared to last year, which make current valuations looking even more expensive than at the height of the covid19 pandemic rally in 2021. In the banking sector, one significant change is European institutions outperforming their US peers, which in itself is a novelty for the post-GCF world. This is but one of the many twists 2023 has brought up front, which makes it one of the most challenging years for asset managers worldwide.

    Market Environment and Performance

    Forward looking indicators expanded in Europe at the fastest pace in 11 months, driven solely by the services sector. Euro-area manufacturing PMI reading (45.8 v a previous month of 47.3) remained in contractionary territory, while the services PMI (reading 56.2 v previous reading of 55.0) advanced, with Italy and Spain being the main drivers, aided by the tourism industry and the travel boom. Inflationary pressures have disappointed validating the hawkish ECB stance, as core inflation which excludes transitory or temporary price volatility edged marginally lower in April to 5.6% from 5.7% level in the previous month.

    In the U.S. aggregate business activity continue to rebound for a third consecutive month. Notably, composite PMI rose sharply from March’s reading (to 53.4 from 52.3) following a solid upturn in private sector business activity. Manufacturing PMI (reading of 50.2) pointed to a first marginal expansion in factory activity. Services PMI reading increased to 53.6 from 52.6 last month, the biggest expansion in service output in a year. Annual inflation rate in the US slowed to 4.9%, well down from its 9.1% peak in June 2022. Month-on-month, core consumer prices remained stable.

    Equity markets had a balanced performance during the month torn between the corporate earnings which overall managed to exceed expectations and the macro indicators which continued showing an economic growth slowdown. Marginal signs of sector rotation from growth to value have been seen pointing to a certain uneasiness form market participant as regards the sustainability of the year to date market rally. US markets edged higher helped by resilient earnings from mega caps and still healthy labour markets and consumer sentiment. Their European peers continued their unexpected good performance as the economy continues outperforming analysts’ expectations, while emerging markets were conditioned by the less than impressive recovery in the Chinese

    economy. The S&P 500 index gained 1.75% helped by strong earnings reports from major components of the index, such as Microsoft and Alphabet. In Europe, the EuroStoxx50 and the DAX gained 1.72% and 2.58% respectively, driven by strong first quarter sales reports and yearly dividend payouts approaching.

    The fixed-income asset class continues to be highly conditioned by the pronounced higher rates which continued to trigger remarkable volatility. European and US investment grade posted positive returns, returning c. 0.69% and 0.82% respectively. The more speculative segment too headed higher.

    Fund performance

    Performance for the month of April proved positive, noting a 1.07% gain for the CC Balanced Strategy Fund – in line with the moves witnessed across both equity and credit markets at large during such period.

    Market and Investment Outlook

    Going forward, the Manager is of the view that material decreases in inflation levels globally and the messaging tone from central bankers do point to a fast approaching end of the monetary tightening cycle. From a credit point the Manger believes that the current underlying fixed income exposures within the fund reflect the long-term view and thus the recent volatility is a short-term pain rather than long term. Contrary the Manager believes that a recovery pace is in course as experienced in the initial days of May.

    From the equity front, the Manager believes that the gap between fundamentals and equity markets continues to widen as we see the same changing sentiment towards a more bullish stance. Although this comes at odds with its own convictions, the Manager is slowly building a more benevolent approach on equity returns expectations, although coming from a very low base. The same attitude of higher focus to cyclical sectors should be expected while cash levels are deemed appropriate at the prevailing market valuation metrics.

  • Key facts & performance

    Fund Manager

    Jordan Portelli

    Jordan is CIO at CC Finance Group. He has extensive experience in research and portfolio management with various institutions. Today he is responsible of the group’s investment strategy and manages credit and multi-asset strategies.

    PRICE (EUR)

    ASSET CLASS

    Mixed

    MIN. INITIAL INVESTMENT

    €5000

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    -11.35%

    *View Performance History below
    Inception Date: 03 Nov 2021
    ISIN: MT7000030664
    Bloomberg Ticker: CCPBSCA MV
    Entry Charge: Up to 2.50%
    Total Expense Ratio: 2.50%
    Exit Charge: None
    Distribution Yield (%): -
    Underlying Yield (%): -
    Distribution: Nil
    Total Net Assets: €4.71 mn
    Month end NAV in EUR: 88.65
    Number of Holdings: 23
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 63.5

    Performance To Date (EUR)

    Risk & Reward Profile

    1
    2
    3
    4
    5
    6
    7
    Lower Risk

    Potentialy Lower Reward

    Higher Risk

    Potentialy Higher Reward

    Top 10 Holdings

    UBS (Lux) Bond Fund - Euro High Yield
    11.3%
    CC Funds SICAV plc - High Income Bond Fund
    10.0%
    Fundsmith SICAV - Equity Fund
    7.8%
    Invesco Pan European Equity Fund
    6.6%
    Nordea 1 - European High Yield Bond Fund
    6.1%
    FTGF CleaeBridge US Large Cap Equities
    5.9%
    Robeco BP US Large Cap Equities
    4.6%
    Comgest Growth plc - Europe Opportunities
    4.2%
    UBS Lux Equity Fund - European Shares
    3.5%
    BlackRock Global High Yield Bond Fund
    3.5%

    Top Holdings by Country

    European Region
    39.90%
    Global
    23.60%
    International
    15.60%
    U.S.
    11.90%
    China
    1.40%

    Asset Allocation

    Fund 87.20%
    Cash 7.70%
    ETF 5.10%

    Performance History (EUR)*

    YTD

    2.73%

    2022

    -13.13%

    2021

    -0.67%

    1-month

    1.07%

    6-month

    4.75%

    12-month

    -2.88%

    * The Accumulator Share Class (Class A) was launched on 3 November 2021
    ** Returns quoted net of TER. Entry and exit charges may reduce returns for investors.

    Currency Allocation

    Euro 95.40%
    USD 4.60%
    GBP 0.00%
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