Investment Objectives

The objective of the Sub-Fund is to endeavour to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of debt securities and other fixed-income or interest bearing securities.

Investor Profile

A typical investor in the CC Emerging Market Bond Fund would be one who is seeking to gain exposure to the Emerging Bond Market via corporate and/or sovereign bonds whilst seeking to accumulate wealth and save over time in a product that re-invests coupons received on a gross basis. Furthermore, investors in the CC Emerging Market Bond Fund are those with a medium to high tolerance to risk and who are planning to hold on to their investment for the medium-to-long term so as to benefit from the compound interest effect whilst also participating in the interest rate cycle as well as the investment cycle commensurate with an investment in Emerging Markets.

Fund Rules at a Glance

The Investment Manager shall invest primarily but not solely in a diversified portfolio of Emerging Market Corporate fixed income securities and Emerging Market Government fixed income securities with maturities of 10 years or less, rated at the time of investment “Baa1” to “Caa1” by Moody’s or “BBB+” to “CCC+” by S&P, or in bonds determined to be of comparable quality by the Investment Manager. The Investment Manager may also invest up to 10% of the Net Assets of the Sub-Fund in unrated fixed income securities.

  • Minimum Credit Rating CCC+ (or equivalent)
  • Up to 10% in Non-Rated Bonds
  • Average Credit Quality of B- (or equivalent)
  • Emerging Market Issuers as per MSCI Emerging and Frontier
  • Up to 15% in Emerging Market Equities
  • Use of FDIs for hedging purposes only
  • No limit on exposure to CIS
  • Up to 30% in Non Emerging Market Issuers

Commentary

February 2021

A small rise in new cases in China had led to some mobility restrictions during the New Lunar Year holidays that could moderate but not derail the strong V-shaped recovery. Markets were more concerned about the prospect of a dampening of stimulus measures to curb the risk from rising house prices.

The People’s Bank of China confirmed its intention to maintain a prudent but flexible policy stance. The renminbi continued its appreciation, supported by the increased growth gap between China and the rest of the world, and greater global interest in Chinese assets.

The resources driven emerging markets were aided by higher commodity prices which have also contributed to higher inflation expectations. Oil prices have risen back close to pre Covid-19 levels, boosted by hopes of a return to normal demand and supply constraints, and by the cold temperatures that forced Texas, which is responsible for 40% of total US oil production, to reduce refining capacity. Many industrial metals also rose. Copper registered a bounce that is partly related to rising demand related to its use in various parts of the infrastructure required for the green energy transition.

From the data front in the emerging market world, China – the world’s second largest economy and one of the few to register growth for 2020, witnessed softness in its data in January, which spilt over into February. China reported a drop for both manufacturing and services sector.

China’s February manufacturing PMI fell to of 50.6 from 51.3 in January, and lower than market expectations of 51.1. Both output and new orders rose at softer paces, while export sales remained under pressure due to a resurgence in coronavirus infections globally and ensuing movement restrictions. Meanwhile, services PMI also dropped to 51.5 from 52.0 in the January.

From the Latin American region, the Brazilian president removed Petrobras CEO over fuel price hikes and appointed General Joaquim Silva e Luna as new CEO. The rules in the bylaws force the replacement (or re-election) of seven other board members which the market interpreted negatively after a seemingly overly interventionist activity by Bolsonaro. 

Brazil reported stronger PMI data for February after a virus induced drop off in January.  Manufacturing PMI’s came in at 58.4 compared to 56.5 in January. Momentum in retail sales continued to slow, increasing by 1.2% compared to a strong forecast of 6.0%, as consumer confidence was shaken by Covid induced restrictions.

From a technical perspective, emerging market debt is expected to keep pace with high yield credit in developed markets, as higher yielding debt remains an attractive avenue for those investors in search of a higher yield.

In the month of February, the CC Emerging Market Bond Fund fell by -0.28 per cent .Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories, primarily within consumer staples and sovereigns.

Going forward, the Manager will continue to assess the EM space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s accommodative stance.

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 (EUR)

ASSET CLASS

Bonds

MIN. INITIAL INVESTMENT

€100000

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

-4.09%

*View Performance History below
Inception Date: 01 Feb 2020
ISIN: MT7000026449
Bloomberg Ticker: CCEMBFE MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.62%
Exit Charge: Up to 2.5%
Distribution Yield (%): N/A
Underlying Yield (%): 4.80
Distribution: N/A
Total Net Assets: $13.5 mn
Month end NAV in EUR: 92.21
Number of Holdings: 45
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 36.9

Performance To Date (EUR)

Top 10 Holdings

iShares JPM EM Bond Fund
5.9%
iShares JPM USD EM Corp Bond
5.6%
6.625% NBM Holdings 2029
4.1%
6.5% Global Ports Finance 2023
3.3%
5.45% Cemex 2029
3.3%
5.8% Turkcell 2028
3.2%
4.95% Veon Holdings 2024
3.2%
6.625% TUPY Overseas SA 2024
3.0%
5.4% Republic of Paraguay 2050
2.6%
8.125% Global Liman 2021
2.6%

Major Sector Breakdown*

Government
11.9%
Asset 7
Communications
11.3%
Industrials
6.8%
Consumer Staples
5.7%
Materials
5.2%
Consumer Discretionary
4.6%
*excluding exposures to CIS

Maturity Buckets*

45.7%
0-5 Years
27.7%
5-10 Years
9.2%
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*

Brazil
19.3%
Malta (incl. Cash)
17.4%
China
11.0%
Mexico
7.5%
Turkey
7.4%
Russia
6.5%
India
5.2%
Germany
4.6%
Oman
4.0%
Netherlands
3.2%
*including exposures to CIS, using look-through

Asset Allocation

Cash 6.0%
Bonds (incl. ETFs) 94.0%
Equities (incl. ETFs) 0.0%

Performance History (EUR)*

YTD

-0.63%

2020***

-3.48%

2019

-%

1-month

-0.23%

3-month

0.81%

Annualised Since Inception*

-3.87%

*The EUR Accumulator Share Class (Class E) was launched on 06 February 2020.

Currency Allocation

USD 90.6%
Euro 9.4%
Other 0.0%
Data for risk statistics is not available for this fund.

Interested in this product?

  • Investment Objectives

    The objective of the Sub-Fund is to endeavour to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of debt securities and other fixed-income or interest bearing securities.

  • Investor profile

    A typical investor in the CC Emerging Market Bond Fund would be one who is seeking to gain exposure to the Emerging Bond Market via corporate and/or sovereign bonds whilst seeking to accumulate wealth and save over time in a product that re-invests coupons received on a gross basis. Furthermore, investors in the CC Emerging Market Bond Fund are those with a medium to high tolerance to risk and who are planning to hold on to their investment for the medium-to-long term so as to benefit from the compound interest effect whilst also participating in the interest rate cycle as well as the investment cycle commensurate with an investment in Emerging Markets.

    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

    • Minimum Credit Rating CCC+ (or equivalent)
    • Up to 10% in Non-Rated Bonds
    • Average Credit Quality of B- (or equivalent)
    • Emerging Market Issuers as per MSCI Emerging and Frontier
    • Up to 15% in Emerging Market Equities
    • Use of FDIs for hedging purposes only
    • No limit on exposure to CIS
    • Up to 30% in Non Emerging Market Issuers
  • Commentary

    February 2021

    A small rise in new cases in China had led to some mobility restrictions during the New Lunar Year holidays that could moderate but not derail the strong V-shaped recovery. Markets were more concerned about the prospect of a dampening of stimulus measures to curb the risk from rising house prices.

    The People’s Bank of China confirmed its intention to maintain a prudent but flexible policy stance. The renminbi continued its appreciation, supported by the increased growth gap between China and the rest of the world, and greater global interest in Chinese assets.

    The resources driven emerging markets were aided by higher commodity prices which have also contributed to higher inflation expectations. Oil prices have risen back close to pre Covid-19 levels, boosted by hopes of a return to normal demand and supply constraints, and by the cold temperatures that forced Texas, which is responsible for 40% of total US oil production, to reduce refining capacity. Many industrial metals also rose. Copper registered a bounce that is partly related to rising demand related to its use in various parts of the infrastructure required for the green energy transition.

    From the data front in the emerging market world, China – the world’s second largest economy and one of the few to register growth for 2020, witnessed softness in its data in January, which spilt over into February. China reported a drop for both manufacturing and services sector.

    China’s February manufacturing PMI fell to of 50.6 from 51.3 in January, and lower than market expectations of 51.1. Both output and new orders rose at softer paces, while export sales remained under pressure due to a resurgence in coronavirus infections globally and ensuing movement restrictions. Meanwhile, services PMI also dropped to 51.5 from 52.0 in the January.

    From the Latin American region, the Brazilian president removed Petrobras CEO over fuel price hikes and appointed General Joaquim Silva e Luna as new CEO. The rules in the bylaws force the replacement (or re-election) of seven other board members which the market interpreted negatively after a seemingly overly interventionist activity by Bolsonaro. 

    Brazil reported stronger PMI data for February after a virus induced drop off in January.  Manufacturing PMI’s came in at 58.4 compared to 56.5 in January. Momentum in retail sales continued to slow, increasing by 1.2% compared to a strong forecast of 6.0%, as consumer confidence was shaken by Covid induced restrictions.

    From a technical perspective, emerging market debt is expected to keep pace with high yield credit in developed markets, as higher yielding debt remains an attractive avenue for those investors in search of a higher yield.

    In the month of February, the CC Emerging Market Bond Fund fell by -0.28 per cent .Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories, primarily within consumer staples and sovereigns.

    Going forward, the Manager will continue to assess the EM space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s accommodative stance.

  • 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 (EUR)

    ASSET CLASS

    Bonds

    MIN. INITIAL INVESTMENT

    €100000

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    -4.09%

    *View Performance History below
    Inception Date: 01 Feb 2020
    ISIN: MT7000026449
    Bloomberg Ticker: CCEMBFE MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 1.62%
    Exit Charge: Up to 2.5%
    Distribution Yield (%): N/A
    Underlying Yield (%): 4.80
    Distribution: N/A
    Total Net Assets: $13.5 mn
    Month end NAV in EUR: 92.21
    Number of Holdings: 45
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 36.9

    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

    iShares JPM EM Bond Fund
    5.9%
    iShares JPM USD EM Corp Bond
    5.6%
    6.625% NBM Holdings 2029
    4.1%
    6.5% Global Ports Finance 2023
    3.3%
    5.45% Cemex 2029
    3.3%
    5.8% Turkcell 2028
    3.2%
    4.95% Veon Holdings 2024
    3.2%
    6.625% TUPY Overseas SA 2024
    3.0%
    5.4% Republic of Paraguay 2050
    2.6%
    8.125% Global Liman 2021
    2.6%

    Top Holdings by Country*

    Brazil
    19.3%
    Malta (incl. Cash)
    17.4%
    China
    11.0%
    Mexico
    7.5%
    Turkey
    7.4%
    Russia
    6.5%
    India
    5.2%
    Germany
    4.6%
    Oman
    4.0%
    Netherlands
    3.2%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Government
    11.9%
    Asset 7
    Communications
    11.3%
    Industrials
    6.8%
    Consumer Staples
    5.7%
    Materials
    5.2%
    Consumer Discretionary
    4.6%
    *excluding exposures to CIS

    Asset Allocation

    Cash 6.0%
    Bonds (incl. ETFs) 94.0%
    Equities (incl. ETFs) 0.0%

    Maturity Buckets*

    45.7%
    0-5 Years
    27.7%
    5-10 Years
    9.2%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -0.63%

    2020***

    -3.48%

    2019

    -%

    1-month

    -0.23%

    3-month

    0.81%

    Annualised Since Inception*

    -3.87%

    *The EUR Accumulator Share Class (Class E) was launched on 06 February 2020.

    Credit Ratings*

    Average Credit Rating: BB
    *excluding exposures to CIS

    Currency Allocation

    USD 90.6%
    Euro 9.4%
    Other 0.0%
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