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

October 2020

Asian markets outperformed its Western counterparts throughout the month of October, amid pandemic and economic fears, partly related to the different stages of the virus cycle the two sides of the world are currently in, excluding India. South America remains in the worst position, as virus cases continue to be significant.

In Asia, the number of daily new Covid cases rose in India, Indonesia, the Philippines, and South Korea but declined in most other countries. Asia’s strong performance has been helped by China’s remarkable success in containing the virus. This has allowed subway usage in China’s major cities to recover to only 10% below 2019 levels, compared with tube use in London, which remained down more than 60% even before the latest work-from-home measures were announced.

China boosted foreign access to its huge onshore capital markets at the end of the month, making it easier for international investors to trade in China’s booming capital market. The country approved its new five-year plan (2021-2025) with the Dual Circulation Strategy as a central theme. This concept promotes a stronger role of domestic demand in driving growth without closing the door internationally.

In Latin America, the number of new cases remained high although the pace of increase slowed in Brazil, Mexico, and Chile, while in the Middle-East and Africa, the number of reported new cases continued to decrease across most of the region. The more encouraging economic indicators were outweighed by virus concerns.

From the data front in the emerging market world, China reported stronger results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions earlier in the year. China’s manufacturing PMI remained in growth territory at 51.4 in October from September’s 51.5.

From the Latin America region, economic data in Brazil remained encouraging, with manufacturing PMIs reporting at 66.7 from 64.9 in September and similar services increasing to 52.3 from 50.4 for services. South American countries are considered further back in the recovery cycle, given that the emergence of the virus kicked-off late when compared to their North American and European counterparts.

In the month of October, the CC EMBF increased by 0.30% on encouraging economic data emanating from China and Brazil. 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)

ASSET CLASS

Bonds

MIN. INITIAL INVESTMENT

€100000

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

-12.37%

*View Performance History below
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 (%): 5.13%
Distribution: 31/03 and 30/09
Total Net Assets: $11.6 mn
Month end NAV in EUR: 77.94
Number of Holdings: 40
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 37.4

Performance To Date (EUR)

Top 10 Holdings

iShares JPM EM Bond Fund
6.9%
6.50% Global Ports 2023
3.8%
4.95% Veon Holdings 2024
3.8%
5.45% Cemex 2029
3.7%
4.95 Gazprom 2022
3.7%
6.625% Tupy Overseas 2024
3.6%
5.8% Turkcell 2028
3.4%
5.299% Petrobras 2025
2.9%
6.625% NBM 2029
2.8%
3% Republic of Poland 2023
2.8%

Major Sector Breakdown*

Government
15.1%
Asset 7
Communications
12.5%
Real Estate
9.6%
Industrials
7.4%
Energy
7.1%
Consumer Discretionary
5.4%
*excluding exposures to CIS

Maturity Buckets*

53.8%
0-5 Years
21.0%
5-10 Years
7.3%
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
20.1%
Malta (incl. Cash)
17.9%
China
11.7%
Russia
11.0%
Mexico
8.1%
Turkey
7.7%
Germany
5.0%
Netherlands
3.8%
Indonesia
3.3%
India
2.8%
*including exposures to CIS, using look-through

Asset Allocation

Cash 11.0%
Bonds (incl. ETFs) 89.0%
Equities (incl. ETFs) 0.0%

Performance History (EUR)*

YTD

-8.14%

2019

-%

2018

-%

1-month

0.21%

3-month

0.45%

Inception

-12.37%

* 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 6.9%
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

    October 2020

    Asian markets outperformed its Western counterparts throughout the month of October, amid pandemic and economic fears, partly related to the different stages of the virus cycle the two sides of the world are currently in, excluding India. South America remains in the worst position, as virus cases continue to be significant.

    In Asia, the number of daily new Covid cases rose in India, Indonesia, the Philippines, and South Korea but declined in most other countries. Asia’s strong performance has been helped by China’s remarkable success in containing the virus. This has allowed subway usage in China’s major cities to recover to only 10% below 2019 levels, compared with tube use in London, which remained down more than 60% even before the latest work-from-home measures were announced.

    China boosted foreign access to its huge onshore capital markets at the end of the month, making it easier for international investors to trade in China’s booming capital market. The country approved its new five-year plan (2021-2025) with the Dual Circulation Strategy as a central theme. This concept promotes a stronger role of domestic demand in driving growth without closing the door internationally.

    In Latin America, the number of new cases remained high although the pace of increase slowed in Brazil, Mexico, and Chile, while in the Middle-East and Africa, the number of reported new cases continued to decrease across most of the region. The more encouraging economic indicators were outweighed by virus concerns.

    From the data front in the emerging market world, China reported stronger results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions earlier in the year. China’s manufacturing PMI remained in growth territory at 51.4 in October from September’s 51.5.

    From the Latin America region, economic data in Brazil remained encouraging, with manufacturing PMIs reporting at 66.7 from 64.9 in September and similar services increasing to 52.3 from 50.4 for services. South American countries are considered further back in the recovery cycle, given that the emergence of the virus kicked-off late when compared to their North American and European counterparts.

    In the month of October, the CC EMBF increased by 0.30% on encouraging economic data emanating from China and Brazil. 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)

    ASSET CLASS

    Bonds

    MIN. INITIAL INVESTMENT

    €100000

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    -12.37%

    *View Performance History below
    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 (%): 5.13%
    Distribution: 31/03 and 30/09
    Total Net Assets: $11.6 mn
    Month end NAV in EUR: 77.94
    Number of Holdings: 40
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 37.4

    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
    6.9%
    6.50% Global Ports 2023
    3.8%
    4.95% Veon Holdings 2024
    3.8%
    5.45% Cemex 2029
    3.7%
    4.95 Gazprom 2022
    3.7%
    6.625% Tupy Overseas 2024
    3.6%
    5.8% Turkcell 2028
    3.4%
    5.299% Petrobras 2025
    2.9%
    6.625% NBM 2029
    2.8%
    3% Republic of Poland 2023
    2.8%

    Top Holdings by Country*

    Brazil
    20.1%
    Malta (incl. Cash)
    17.9%
    China
    11.7%
    Russia
    11.0%
    Mexico
    8.1%
    Turkey
    7.7%
    Germany
    5.0%
    Netherlands
    3.8%
    Indonesia
    3.3%
    India
    2.8%
    *including exposures to CIS, using look-through

    Major Sector Breakdown*

    Government
    15.1%
    Asset 7
    Communications
    12.5%
    Real Estate
    9.6%
    Industrials
    7.4%
    Energy
    7.1%
    Consumer Discretionary
    5.4%
    *excluding exposures to CIS

    Asset Allocation

    Cash 11.0%
    Bonds (incl. ETFs) 89.0%
    Equities (incl. ETFs) 0.0%

    Maturity Buckets*

    53.8%
    0-5 Years
    21.0%
    5-10 Years
    7.3%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    YTD

    -8.14%

    2019

    -%

    2018

    -%

    1-month

    0.21%

    3-month

    0.45%

    Inception

    -12.37%

    * 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 6.9%
    Other 0.0%
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