Investment Objectives
The Fund aims to achieve long-term capital growth by investing in a diversified portfolio of collective investment schemes.
The Investment Manager invests in collective investment schemes 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.
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.
Investor Profile
A typical investor in the 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
- 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.
- 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.
- 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.
- 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.
A Quick Introduction to Our Euro Equity Fund.
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
5 year performance*
0%
*View Performance History below
Inception Date: 03 Nov 2021
ISIN: MT7000030664
Bloomberg Ticker: CCPBSCA MV
Distribution Yield (%): -
Underlying Yield (%): -
Distribution: Nil
Total Net Assets: €4.93 mn
Month end NAV in EUR: 100.40
Number of Holdings: 22
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
Performance To Date (EUR)
Top 10 Holdings
17.9%
9.7%
7.3%
6.9%
6.3%
5.8%
5.7%
4.8%
4.1%
3.7%
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country
41.50%
25.10%
16.70%
15.70%
Asset Allocation
Performance History (EUR)*
1 Year
11.06%
3 Year
-%
5 Year
-%
Currency Allocation
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 invests in collective investment schemes 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.
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.
-
Investor profile
A typical investor in the 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
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
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Commentary
June 2024
Introduction
While the global macroeconomic landscape provided little reasons to cheer in June, financial markets continued looking resilient, as particularly some geographical equity markets defied gravity. As leading macroeconomic data points focused on the tedious battle to bring inflation within long-term averages are displaying the side-effect of subsiding economic growth, market participants remain indifferent to the real street economic travails enjoying one after another market all-time high. In spite of international financial institutions voicing concern regarding potential long-term inflationary trends determined by de-globalization and climate change, markets remain cautiously optimistic, as updates regarding projected global GDP growth hover around 3%, a modest decrease from last year. Even the US economy, despite its strong market performance, is expected to decelerate on a background of still elevated interest rates. Beyond that, solely ongoing geopolitical uncertainties and upcoming global elections seem to make markets move as the year wears on. While European elections posted a better than expected outcome as political blocks on the centre seems to have kept control of the European Parliament, snap elections in France took European markets by surprise. While the upcoming UK elections look like a non-event, all eyes are slowly turning toward the big event this year, the US elections. They are currently looking more at the candidates’ profiles, than their intended economic policies, maybe because irrespective of who’s going to reside at the White House or which party will control the Congress, markets are expecting to see more of the same. The only notable difference at this point might be another corporate-friendly tax break under a Republican win scenario, even under a deteriorating fiscal balance and increasing national debt for the largest world nominal economy. The only certainty so far is that markets have exceeded yet again pundits’ expectations, while volatility remains a distant memory. We will find eventually if this market is for real or not.
From the monetary front, FED officials left interest rates unchanged during their monthly meeting and projected only one interest rate cut before the end of the year, as their main concern remains avoiding a premature end of the current tightening cycle. It was mainly the interest rates path projections that surprised markets, as estimates released by FOMC members in March were pointing to three interest rate cuts this year. During his conference, FED Chair Powell was clear as regards their conservative approach after months of zigzagging inflation. In Europe, the ECB finally operated a 0.25% interest rate cut as expected, a first since 2019. However, uncertainty remains as regards its actions going forward. Markets now expect another two interest rate cuts by year-end, from at least five in January. While the bank is seen revising up its growth and inflation projections slightly, this should not derail its expectations that inflation will return to target in late 2025.
Market Environment and Performance
In June the Euro area economy moved closer to stabilization, as Purchasing Managers’ Index (PMI) indicators showed, although growth somewhat cooled to a three-month low. Services slowed (reading of 52.8 versus the previous month reading of 53.2) while manufacturing shrank at a faster pace (reading of 45.8 versus a previous month reading of 47.3). Overall, the softening of demand, the rate of job creation and a cooling of price pressures, all contributed to curbing the rise in activity levels. Headline inflation eased to 2.5% from 2.6% in May, while core rate excluding volatile food and energy prices remained steady at 2.9%.
The US economy started to show signs of improvement, as both the manufacturing (reading 51.6 v 51.3) and service (reading 54.8 v 54.8) sectors noted modest growth. New orders climbed for the second month in a row, while employment levels rose for the first time in three months. The latest inflation release showed a modest slowing, as headline inflation fell for a third straight month to 3% in June 2024, the lowest since June 2023, compared to 3.3% in May and below forecasts of 3.1%. Core inflation too eased to a three-year low at 3.3%.
In June equity markets posted the most sector-unbalanced monthly performance in a long time as the continuation of the rally toward new all-time highs has been carried out almost exclusively by the technology and communications (read Alphabet and Meta Platforms) sectors. Briefly, the same AI hype seen last month has rejuvenated the performance differential gap growing evermore wider between the Big Tech names and the rest of the market. Like last month, also geographies continued diverging due to the local indices’ technology weightings, while the Chinese market rally form last months has fizzled out. The S&P 500 index gained 4.75% with all sectors achieving a positive return except consumer staples. European markets were negatively impacted by the snap French elections result expectations as the EuroStoxx50 and the DAX lost 1.80% and 1.42% respectively.
Credit had a positive month with U.S. High yield posting the best performance amongst its peers, while EM also deliver a positive month namely driven by lower benchmark yields.
Fund performance
Performance for the month of June proved positive, noting a 0.65% gain for the CC Balanced Strategy Fund – in line with the moves witnessed across both equity and high-yield credit markets at large during such period.
Market and Investment Outlook
Going forward, the Manager believes that although recent leading macro data points are revealing a global economy cooling off, the economic landscape remains rather benevolent, although more nuanced than in the recent past. While the trend of gradual decreasing in inflationary pressures is becoming apparent, some question marks have been raised as regards its sustainability as of late. Main cause of concern in this regard is the political platforms that the fast approaching US elections are bringing forward, whereby additional public spending in any form could give central bankers worldwide new headaches. As well, a less healthy labour market combined with a consumer already exhausted after years of having to absorb the highest inflation in a generation does warrant a cautious approach going forward. Leading indicators continue to pose softening data now also in the labour market. This has indeed pushed yields lower as markets expect rates cuts in the coming months.
From the equity front, the Manager is somewhat sceptical as regards equity markets return potential for the remainder of the year, thus maintaining a prudent approach going forward.
-
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
5 year performance*
0%
*View Performance History below
Inception Date: 03 Nov 2021
ISIN: MT7000030664
Bloomberg Ticker: CCPBSCA MV
Distribution Yield (%): -
Underlying Yield (%): -
Distribution: Nil
Total Net Assets: €4.93 mn
Month end NAV in EUR: 100.40
Number of Holdings: 22
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
UBS (Lux) Bond Fund - Euro High Yield17.9%
CC Funds SICAV plc - High Income Bond Fund9.7%
FTGF ClearBridge US Large Cap Growth Fund7.3%
Invesco Pan European Equity Fund6.9%
Nordea 1 - European High Yield Bond Fund6.3%
Fundsmith SICAV - Equity Fund5.8%
Robeco BP US Large Cap Equities5.7%
Comgest Growth plc - Europe Opportunities4.8%
Morgan Stanley Investment Fund4.1%
UBS Lux Equity Fund - European Shares3.7%
Top Holdings by Country
European Region41.50%
Global25.10%
U.S.16.70%
International15.70%
Asset Allocation
Fund 94.90%ETF 4.10%Cash 1.00%Performance History (EUR)*
1 Year
11.06%
3 Year
-%
5 Year
-%
* 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 94.30%USD 5.70%GBP 0.00% -
Downloads
Commentary
June 2024
Introduction
While the global macroeconomic landscape provided little reasons to cheer in June, financial markets continued looking resilient, as particularly some geographical equity markets defied gravity. As leading macroeconomic data points focused on the tedious battle to bring inflation within long-term averages are displaying the side-effect of subsiding economic growth, market participants remain indifferent to the real street economic travails enjoying one after another market all-time high. In spite of international financial institutions voicing concern regarding potential long-term inflationary trends determined by de-globalization and climate change, markets remain cautiously optimistic, as updates regarding projected global GDP growth hover around 3%, a modest decrease from last year. Even the US economy, despite its strong market performance, is expected to decelerate on a background of still elevated interest rates. Beyond that, solely ongoing geopolitical uncertainties and upcoming global elections seem to make markets move as the year wears on. While European elections posted a better than expected outcome as political blocks on the centre seems to have kept control of the European Parliament, snap elections in France took European markets by surprise. While the upcoming UK elections look like a non-event, all eyes are slowly turning toward the big event this year, the US elections. They are currently looking more at the candidates’ profiles, than their intended economic policies, maybe because irrespective of who’s going to reside at the White House or which party will control the Congress, markets are expecting to see more of the same. The only notable difference at this point might be another corporate-friendly tax break under a Republican win scenario, even under a deteriorating fiscal balance and increasing national debt for the largest world nominal economy. The only certainty so far is that markets have exceeded yet again pundits’ expectations, while volatility remains a distant memory. We will find eventually if this market is for real or not.
From the monetary front, FED officials left interest rates unchanged during their monthly meeting and projected only one interest rate cut before the end of the year, as their main concern remains avoiding a premature end of the current tightening cycle. It was mainly the interest rates path projections that surprised markets, as estimates released by FOMC members in March were pointing to three interest rate cuts this year. During his conference, FED Chair Powell was clear as regards their conservative approach after months of zigzagging inflation. In Europe, the ECB finally operated a 0.25% interest rate cut as expected, a first since 2019. However, uncertainty remains as regards its actions going forward. Markets now expect another two interest rate cuts by year-end, from at least five in January. While the bank is seen revising up its growth and inflation projections slightly, this should not derail its expectations that inflation will return to target in late 2025.
Market Environment and Performance
In June the Euro area economy moved closer to stabilization, as Purchasing Managers’ Index (PMI) indicators showed, although growth somewhat cooled to a three-month low. Services slowed (reading of 52.8 versus the previous month reading of 53.2) while manufacturing shrank at a faster pace (reading of 45.8 versus a previous month reading of 47.3). Overall, the softening of demand, the rate of job creation and a cooling of price pressures, all contributed to curbing the rise in activity levels. Headline inflation eased to 2.5% from 2.6% in May, while core rate excluding volatile food and energy prices remained steady at 2.9%.
The US economy started to show signs of improvement, as both the manufacturing (reading 51.6 v 51.3) and service (reading 54.8 v 54.8) sectors noted modest growth. New orders climbed for the second month in a row, while employment levels rose for the first time in three months. The latest inflation release showed a modest slowing, as headline inflation fell for a third straight month to 3% in June 2024, the lowest since June 2023, compared to 3.3% in May and below forecasts of 3.1%. Core inflation too eased to a three-year low at 3.3%.
In June equity markets posted the most sector-unbalanced monthly performance in a long time as the continuation of the rally toward new all-time highs has been carried out almost exclusively by the technology and communications (read Alphabet and Meta Platforms) sectors. Briefly, the same AI hype seen last month has rejuvenated the performance differential gap growing evermore wider between the Big Tech names and the rest of the market. Like last month, also geographies continued diverging due to the local indices’ technology weightings, while the Chinese market rally form last months has fizzled out. The S&P 500 index gained 4.75% with all sectors achieving a positive return except consumer staples. European markets were negatively impacted by the snap French elections result expectations as the EuroStoxx50 and the DAX lost 1.80% and 1.42% respectively.
Credit had a positive month with U.S. High yield posting the best performance amongst its peers, while EM also deliver a positive month namely driven by lower benchmark yields.
Fund performance
Performance for the month of June proved positive, noting a 0.65% gain for the CC Balanced Strategy Fund – in line with the moves witnessed across both equity and high-yield credit markets at large during such period.
Market and Investment Outlook
Going forward, the Manager believes that although recent leading macro data points are revealing a global economy cooling off, the economic landscape remains rather benevolent, although more nuanced than in the recent past. While the trend of gradual decreasing in inflationary pressures is becoming apparent, some question marks have been raised as regards its sustainability as of late. Main cause of concern in this regard is the political platforms that the fast approaching US elections are bringing forward, whereby additional public spending in any form could give central bankers worldwide new headaches. As well, a less healthy labour market combined with a consumer already exhausted after years of having to absorb the highest inflation in a generation does warrant a cautious approach going forward. Leading indicators continue to pose softening data now also in the labour market. This has indeed pushed yields lower as markets expect rates cuts in the coming months.
From the equity front, the Manager is somewhat sceptical as regards equity markets return potential for the remainder of the year, thus maintaining a prudent approach going forward.