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

April 2021

The Chinese economy continues to normalise. In the first quarter of the year it grew 0.6% quarter on quarter with a more balanced split across sectors, as activity in services continues to improve. Market dynamics have been influenced by expectations that domestic consumption will be the major growth driver as fiscal and central bank authorities become more balanced in their policy support, which could lead to a deceleration in local government financing and infrastructure investment.

The Covid-19 health crisis in India tragically worsened in April, underscoring the need for successful vaccination rollouts to be urgently broadened out to the emerging world. Pressure on the health infrastructure has intensified and case fatality ratios have more than doubled since mid-February. Testing positivity ratios remain at an alarmingly high level of around 20%, leading states to continue imposing restrictions. As a result, levels of mobility have fallen back and the economy may now contract in the second quarter, pushing back the economic rebound until the second half of the year.

From the data front in the emerging market world, China – the world’s second largest economy remained in expansionary territory in both the manufacturing and services sector. China’s March manufacturing PMI registered a level of 51.1 from 51.9 in March, coming in below market expectations. This underperformance originated from a lower than expected industrial production level of 14.1%. Services PMI increased to 56.3 from 54.3 in March.

From the Latin American region, the Covid situation remains extreme, with china stepping in to supply a number of vaccinations to the most beleaguered countries. China has shipped more than half of the 143.5m doses of vaccines delivered to the region’s 10 most populous nations. Latin American officials have appealed to the US, the traditional power in the region, to do more to help. In March, President Luis Abinader of the Dominican Republic asked President Joe Biden to release US stocks of the AstraZeneca vaccine.

Money is not the issue — Latin American governments can afford to buy the vaccines they need. But they have been disadvantaged relative to the US and Europe because most of the region’s capacity to manufacture vaccines from scratch was shut down in past decades and moved to lower-cost Asian locations. It must also rely on scarce imports of the active pharmaceutical ingredients. Brazil, Mexico and Argentina all have projects under way to rebuild domestic vaccine manufacturing or finishing capacity.

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. The extremely accommodative liquidity situation is helping to maintain stability, despite the deep wounds inflicted on already fragile economies. This highlights the importance of the managers’ strategy of being selective.

In the month of April, the CC Emerging Market Bond Fund increased by 1.77%. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories.

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)*

-3.48%

*View Performance History below
Inception Date: 01 Feb 2020
ISIN: MT7000026456
Bloomberg Ticker: CCEMBFF MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.62%
Exit Charge: Up to 2.5%
Distribution Yield (%): 4.25%
Underlying Yield (%): 4.43%
Distribution: 31/03 and 30/09
Total Net Assets: $13.8 mn
Month end NAV in EUR: 81.82
Number of Holdings: 45
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.2

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%
iShares China Bond
4.0%
5.45% Cemex 2029
3.3%
6.5% Global Ports Finance 2023
3.2%
4.95% Veon Holdings 2024
3.2%
4.375% Freeport McMoran 2028
3.1%
5.8% Turkcell 2028
3.1%
8.125% Global Liman 2021
2.7%

Major Sector Breakdown*

Asset 7
Communications
10.8%
Government
9.8%
Real Estate
8.1%
Industrials
6.6%
Materials
5.9%
Consumer Staples
5.7%
*excluding exposures to CIS

Maturity Buckets*

44.5%
0-5 Years
26.3%
5-10 Years
7.4%
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)
21.7%
Brazil
16.8%
China
9.6%
Mexico
7.5%
Turkey
7.3%
Russia
6.3%
India
5.0%
United States
4.7%
Oman
4.0%
Netherlands
3.2%
*including exposures to CIS, using look-through

Asset Allocation

Cash 6.3%
Bonds (incl. ETFs) 93.7%
Equities (incl. ETFs) 0.0%

Performance History (EUR)*

YTD

-0.38%

2020***

-3.11%

2019

-%

1-month

1.72%

3-month

0.03%

Annualised Since Inception

-2.84%

* 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 90.2%
Euro 9.8%
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

    April 2021

    The Chinese economy continues to normalise. In the first quarter of the year it grew 0.6% quarter on quarter with a more balanced split across sectors, as activity in services continues to improve. Market dynamics have been influenced by expectations that domestic consumption will be the major growth driver as fiscal and central bank authorities become more balanced in their policy support, which could lead to a deceleration in local government financing and infrastructure investment.

    The Covid-19 health crisis in India tragically worsened in April, underscoring the need for successful vaccination rollouts to be urgently broadened out to the emerging world. Pressure on the health infrastructure has intensified and case fatality ratios have more than doubled since mid-February. Testing positivity ratios remain at an alarmingly high level of around 20%, leading states to continue imposing restrictions. As a result, levels of mobility have fallen back and the economy may now contract in the second quarter, pushing back the economic rebound until the second half of the year.

    From the data front in the emerging market world, China – the world’s second largest economy remained in expansionary territory in both the manufacturing and services sector. China’s March manufacturing PMI registered a level of 51.1 from 51.9 in March, coming in below market expectations. This underperformance originated from a lower than expected industrial production level of 14.1%. Services PMI increased to 56.3 from 54.3 in March.

    From the Latin American region, the Covid situation remains extreme, with china stepping in to supply a number of vaccinations to the most beleaguered countries. China has shipped more than half of the 143.5m doses of vaccines delivered to the region’s 10 most populous nations. Latin American officials have appealed to the US, the traditional power in the region, to do more to help. In March, President Luis Abinader of the Dominican Republic asked President Joe Biden to release US stocks of the AstraZeneca vaccine.

    Money is not the issue — Latin American governments can afford to buy the vaccines they need. But they have been disadvantaged relative to the US and Europe because most of the region’s capacity to manufacture vaccines from scratch was shut down in past decades and moved to lower-cost Asian locations. It must also rely on scarce imports of the active pharmaceutical ingredients. Brazil, Mexico and Argentina all have projects under way to rebuild domestic vaccine manufacturing or finishing capacity.

    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. The extremely accommodative liquidity situation is helping to maintain stability, despite the deep wounds inflicted on already fragile economies. This highlights the importance of the managers’ strategy of being selective.

    In the month of April, the CC Emerging Market Bond Fund increased by 1.77%. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories.

    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)*

    -3.48%

    *View Performance History below
    Inception Date: 01 Feb 2020
    ISIN: MT7000026456
    Bloomberg Ticker: CCEMBFF MV
    Entry Charge: Up to 2.5%
    Total Expense Ratio: 1.62%
    Exit Charge: Up to 2.5%
    Distribution Yield (%): 4.25%
    Underlying Yield (%): 4.43%
    Distribution: 31/03 and 30/09
    Total Net Assets: $13.8 mn
    Month end NAV in EUR: 81.82
    Number of Holdings: 45
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 38.2

    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%
    iShares China Bond
    4.0%
    5.45% Cemex 2029
    3.3%
    6.5% Global Ports Finance 2023
    3.2%
    4.95% Veon Holdings 2024
    3.2%
    4.375% Freeport McMoran 2028
    3.1%
    5.8% Turkcell 2028
    3.1%
    8.125% Global Liman 2021
    2.7%

    Top Holdings by Country*

    Malta (incl. Cash)
    21.7%
    Brazil
    16.8%
    China
    9.6%
    Mexico
    7.5%
    Turkey
    7.3%
    Russia
    6.3%
    India
    5.0%
    United States
    4.7%
    Oman
    4.0%
    Netherlands
    3.2%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Asset 7
    Communications
    10.8%
    Government
    9.8%
    Real Estate
    8.1%
    Industrials
    6.6%
    Materials
    5.9%
    Consumer Staples
    5.7%
    *excluding exposures to CIS

    Asset Allocation

    Cash 6.3%
    Bonds (incl. ETFs) 93.7%
    Equities (incl. ETFs) 0.0%

    Maturity Buckets*

    44.5%
    0-5 Years
    26.3%
    5-10 Years
    7.4%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -0.38%

    2020***

    -3.11%

    2019

    -%

    1-month

    1.72%

    3-month

    0.03%

    Annualised Since Inception

    -2.84%

    * 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 90.2%
    Euro 9.8%
    Other 0.0%
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