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

November 2020

In emerging markets (EM), China’s recovery has continued to positively surprise as the latest Manufacturing PMI came in above expectations, being the highest print since September 2017. Nevertheless, a succession of at least partly state owned companies’ defaults has rattled China’s $15 trillion bond market and is raising concerns about the country’s financial health.

China is an important part of EM growth dynamics. The world’s second-largest economy is leading the global restart in activity, with its growth already at, or very close to, its pre-Covid trend. This bodes well for the rest of the EM world. Yet EM economies are also susceptible to the policy direction of China. Throughout the month of November Asia Pacific nations including China, Japan and South Korea signed the world’s largest regional free-trade agreement, representing nearly a third of the world’s population and gross domestic product.

EM assets have underperformed their developed market (DM) peers for most of 2020, and have been playing catch-up in recent weeks. A string of positive news reports on Covid vaccines boosted confidence in an accelerated restart during the course of 2021, setting up a positive overall backdrop for risk assets. Encouraging early results on the effectiveness of a Covid-19 vaccine that may offer lower costs and easier distribution bode particularly well for the EM world.

From the data front in the emerging market world, China reported stronger results in its leading indicators, as business activity normalises further, following widespread company shutdowns and travel restrictions earlier in the year. China’s Manufacturing PMIs bounced up to 52.1 in November from October’s 51.4. The latest GDP growth reading stands at 4.9% for the third quarter of 2020.

From the Latin America region, economic data in Brazil remained encouraging, with manufacturing PMIs reporting at 64.0 from 66.7 in October and similarly services remaining in growth territory at 50.9.

Most EM assets have now delivered positive year-to-date returns after the recent rally. EM local-currency debt has lagged the market recovery in U.S. dollar terms, dragged down by heavy currency depreciation in many emerging markets. From a technical perspective, EM debt is expected to keep pace with high yield credit in developed markets, as higher yielding debt looks attractive to investors in search of income.

In the month of October, the CC EMBF increased by 3.57% on positive vaccine news and presidential election news. 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 easing stance, primarily by cutting interest rates.

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)

N/A

ASSET CLASS

Bonds

MIN. INITIAL INVESTMENT

€100000

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

N/A

Inception Date: 01 Feb 2020
ISIN: MT7000026456
Bloomberg Ticker: CCEMBFF MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 2.17%
Exit Charge: Up to 2.5%
Distribution Yield (%): 4.25%
Underlying Yield (%): 4.61%
Distribution: 31/03 and 30/09
Total Net Assets: $12.7 mn
Month end NAV in EUR: 83.75
Number of Holdings: 40
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.3

Performance To Date (EUR)

Top 10 Holdings

iShares JPM EM Bond Fund
6.6%
iShares JPM USD Emerging Mkt
6.2%
4.95% Veon Holdings 2024
3.6%
6.5% Global Ports 2023
3.5%
5.45% Cemex 2029
3.5%
5.8% Turkcell 2028
3.4%
6.625% TUPY Overseas SA 2024
3.4%
5.299% Petrobras 2025
2.8%
6.625% NBM 2029
2.8%
3% Republic of Poland 2023
2.6%

Major Sector Breakdown*

Government
20.7%
Asset 7
Communications
12.0%
Real Estate
9.0%
Industrials
7.3%
Consumer Discretionary
5.1%
Health Care
4.7%
*excluding exposures to CIS

Maturity Buckets*

47.9%
0-5 Years
20.5%
5-10 Years
7.2%
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*

Malta (incl. Cash)
24.3%
Brazil
19.5%
China
11.0%
Mexico
7.8%
Turkey
7.5%
Russia
6.9%
Germany
4.9%
Netherlands
3.6%
Indonesia
3.3%
India
2.8%
*including exposures to CIS, using look-through

Asset Allocation

Cash 10.4%
Bonds (incl. ETFs) 89.6%
Equities (incl. ETFs) 0.0%

Performance History (EUR)*

YTD

-4.32%

2019

-%

2018

-%

1-month

3.36%

3-month

1.98%

Annualised Since Inception

-5.27%

* Data in the chart does not include any dividends distributed since the Fund was launched on 03 November 2017.
** 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 EUR Distributor Share Class (Class F) was launched on 06 February 2020.

Currency Allocation

USD 93.1%
Euro 1.9%
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

    November 2020

    In emerging markets (EM), China’s recovery has continued to positively surprise as the latest Manufacturing PMI came in above expectations, being the highest print since September 2017. Nevertheless, a succession of at least partly state owned companies’ defaults has rattled China’s $15 trillion bond market and is raising concerns about the country’s financial health.

    China is an important part of EM growth dynamics. The world’s second-largest economy is leading the global restart in activity, with its growth already at, or very close to, its pre-Covid trend. This bodes well for the rest of the EM world. Yet EM economies are also susceptible to the policy direction of China. Throughout the month of November Asia Pacific nations including China, Japan and South Korea signed the world’s largest regional free-trade agreement, representing nearly a third of the world’s population and gross domestic product.

    EM assets have underperformed their developed market (DM) peers for most of 2020, and have been playing catch-up in recent weeks. A string of positive news reports on Covid vaccines boosted confidence in an accelerated restart during the course of 2021, setting up a positive overall backdrop for risk assets. Encouraging early results on the effectiveness of a Covid-19 vaccine that may offer lower costs and easier distribution bode particularly well for the EM world.

    From the data front in the emerging market world, China reported stronger results in its leading indicators, as business activity normalises further, following widespread company shutdowns and travel restrictions earlier in the year. China’s Manufacturing PMIs bounced up to 52.1 in November from October’s 51.4. The latest GDP growth reading stands at 4.9% for the third quarter of 2020.

    From the Latin America region, economic data in Brazil remained encouraging, with manufacturing PMIs reporting at 64.0 from 66.7 in October and similarly services remaining in growth territory at 50.9.

    Most EM assets have now delivered positive year-to-date returns after the recent rally. EM local-currency debt has lagged the market recovery in U.S. dollar terms, dragged down by heavy currency depreciation in many emerging markets. From a technical perspective, EM debt is expected to keep pace with high yield credit in developed markets, as higher yielding debt looks attractive to investors in search of income.

    In the month of October, the CC EMBF increased by 3.57% on positive vaccine news and presidential election news. 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 easing stance, primarily by cutting interest rates.

  • 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)

    N/A

    ASSET CLASS

    Bonds

    MIN. INITIAL INVESTMENT

    €100000

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    N/A

    Inception Date: 01 Feb 2020
    ISIN: MT7000026456
    Bloomberg Ticker: CCEMBFF MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 2.17%
    Exit Charge: Up to 2.5%
    Distribution Yield (%): 4.25%
    Underlying Yield (%): 4.61%
    Distribution: 31/03 and 30/09
    Total Net Assets: $12.7 mn
    Month end NAV in EUR: 83.75
    Number of Holdings: 40
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 38.3

    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
    6.6%
    iShares JPM USD Emerging Mkt
    6.2%
    4.95% Veon Holdings 2024
    3.6%
    6.5% Global Ports 2023
    3.5%
    5.45% Cemex 2029
    3.5%
    5.8% Turkcell 2028
    3.4%
    6.625% TUPY Overseas SA 2024
    3.4%
    5.299% Petrobras 2025
    2.8%
    6.625% NBM 2029
    2.8%
    3% Republic of Poland 2023
    2.6%

    Top Holdings by Country*

    Malta (incl. Cash)
    24.3%
    Brazil
    19.5%
    China
    11.0%
    Mexico
    7.8%
    Turkey
    7.5%
    Russia
    6.9%
    Germany
    4.9%
    Netherlands
    3.6%
    Indonesia
    3.3%
    India
    2.8%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Government
    20.7%
    Asset 7
    Communications
    12.0%
    Real Estate
    9.0%
    Industrials
    7.3%
    Consumer Discretionary
    5.1%
    Health Care
    4.7%
    *excluding exposures to CIS

    Asset Allocation

    Cash 10.4%
    Bonds (incl. ETFs) 89.6%
    Equities (incl. ETFs) 0.0%

    Maturity Buckets*

    47.9%
    0-5 Years
    20.5%
    5-10 Years
    7.2%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -4.32%

    2019

    -%

    2018

    -%

    1-month

    3.36%

    3-month

    1.98%

    Annualised Since Inception

    -5.27%

    * Data in the chart does not include any dividends distributed since the Fund was launched on 03 November 2017.
    ** 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 EUR Distributor Share Class (Class F) was launched on 06 February 2020.

    Credit Ratings*

    Average Credit Rating: BB
    *excluding exposures to CIS

    Currency Allocation

    USD 93.1%
    Euro 1.9%
    Other 0.0%
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