Investment Objectives
The Fund aims to achieve a combination of income, with the possibility of capital growth by investing in a diversified portfolio of collective investment schemes.
The Investment Manager (“We”) will invest in collective investment schemes (“CIS”) (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.
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.
The Fund is classified under Article 6 of the SFDR meaning that the investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.
Investor Profile
A typical investor in the CC Income Strategy Fund is:
- Seeking to earn a high level of regular Income
- Seeking an actively managed & diversified investment primarily in income-yielding funds
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 30% 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 100% 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 20% of its assets in CISs that are permitted to invest 65% or more of their assets in equity securities.
A quick introduction to our Global High Income Bond 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
RETURN (SINCE INCEPTION)*
-10.57%
*View Performance History below
Inception Date: 15 Sep 2021
ISIN: MT7000030680
Bloomberg Ticker: CCPISAE MV
Entry Charge: up to 2.50%
Total Expense Ratio: 2.18%
Exit Charge: None
Distribution Yield (%): 2.83
Underlying Yield (%): -
Distribution: 31/05 and 30/11
Total Net Assets: 6.67 mn
Month end NAV in EUR: 87.35
Number of Holdings: 13
Auditors: Deloitte Malta
Legal Advisor: GANADO Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 86.6
Performance To Date (EUR)
Top 10 Holdings
19.9%
9.6%
8.2%
7.8%
7.2%
7.1%
6.8%
6.8%
6.7%
6.5%
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country
38.40%
36.90%
21.60%
Asset Allocation
Performance History (EUR)*
YTD***
2.44%
2022
-11.59%
2021
-1.26%
1-month
1.18%
6-month
5.47%
12-month
-3.21%
Currency Allocation
Interested in this product?
-
Investment Objectives
The Fund aims to achieve a combination of income, with the possibility of capital growth by investing in a diversified portfolio of collective investment schemes.
The Investment Manager (“We”) will invest in collective investment schemes (“CIS”) (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.
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.
The Fund is classified under Article 6 of the SFDR meaning that the investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.
-
Investor profile
A typical investor in the CC Income Strategy Fund is:
- Seeking to earn a high level of regular Income
- Seeking an actively managed & diversified investment primarily in income-yielding funds
-
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
April 2023
Introduction
Market sentiment, as fresh economic data proved resilient, have in April outweighed lingering concerns swarming investors, pondering the severity of a pending recession, banking sector turbulence – worsened by negative sector-specific sentiment surrounding US regional banks – and expectations of further monetary tightening. The latter primarily subject to inflation and job figures.
While a critical point in the battle against inflation has seemingly been reached, as price pressures continue to ease, the trajectory is thus far still not moving quickly enough for both the ECB and Federal Reserve to declare victory. Indeed, the next couple of months will determine whether efforts came to fruition and whether or not monetary politicians navigated a so-called soft landing without tipping the respective economies into a recession.
In April, financial markets – albeit remaining on edge with further clarity being sought – edged higher. In fixed income, government bond yields remained largely unchanged. European and U.S. investment grade and high yield corporate credit headed higher.
Market environment and performance
Forward looking indicators, namely PMIs, expanded at the fastest pace of growth in 11 months, driven solely by service sector growth which continued to offset the downturn in manufacturing. Manufacturing (reading 45.8 v a previous month reading of 47.3) continued to point to a worse performance, remaining in contractionary territory. Meanwhile, services (reading 56.2 v a preliminary estimate of 56.6 and previous month reading of 55.0) advanced with Italy and Spain being the main drivers, aided by the tourism industry and travel boom. Overall, new order intakes rose at a similarly-strong rate to that of output. Backlogs of work too rose, as companies stepped up their efforts to boost capacity, with employment levels rising at the sharpest pace since May 2022.
Inflationary pressures, previously showing signs of easing, have over the month somewhat disappointed, supporting the ECBs forceful moves to bring inflation back to target. Particularly, as headline inflation edged higher and as core prices remained remarkably elevated, higher than levels policy makers would have desired. Notably, core inflation has in April edged marginally lower to 5.6% from 5.7% in the previous month reading.
In April, aggregate business activity in the US continued to rebound, pointing to an expansion for a third successive month running. Notably, composite PMI rose sharply (53.4 v 52.3 in March) following a solid upturn in private sector business activity that was the fastest since May 2022. Manufacturing PMI (reading 50.2) pointed to a first marginal expansions in factory activity. New orders returned to expansion territory and production increased at the fastest pace since May 2022 while new export orders contracted further. Meanwhile, services (reading 53.6 v a preliminary estimate of 53.7 and previous month reading of 52.6) advanced, pointing to point to the biggest expansion in the services sector in a year, as output, new orders and employment growth all accelerated.
Annual inflation rate in the US for a tenth successive month slowed to 4.9%, less than March’s figure of 5.0% and now well down from its 8.9% peak in June. Month-on-month, core consumer prices increased 0.4%, higher from the 0.1% in March, but matching expectations. From the employment front, the US economy created 253K jobs in April, largely exceeding the 70K-100K monthly job gain needed to keep up with growth in the working-age population. Meanwhile, the unemployment rate in the US edged lower to 3.4%, matching a 50-year low of 3.4 percent seen in January. Average hourly earnings for all employees increased by 4.4% year-on-year, following an upwardly revised 4.3% rise in the prior month, still pointing to a tight labour market.
From a performance view point, markets rebounded following a volatile March. Spreads tightened as markets recovered from an indiscriminate sell-off following the events surrounding Silicon Valley Bank and Credit Suisse, resulting in positive total returns. Notably, European and US investment grade posted positive returns, returning c. 0.69% and 0.82% respectively. The more speculative segment too headed higher.
Fund performance
Performance for the month of April proved positive, noting a 1.18% gain for the CC Income Strategy Fund – in line with the moves witnessed across high yield credit markets during such period.
Market and investment outlook
An orderly market, following a turbulent end to the first quarter, was in April restored as activity remained resilient in the face of mounting headwinds. Indeed, the closure of another US financial institution at the end of April highlights that the cumulative impact of aggressive policy tightening (somewhat justified given the elevated levels of inflation and tight labour market) has still not been fully felt by developed economies. With the latter in mind and despite the recent improvement across business surveys, risks of a recession transpiring, remain.
The recent banking crisis, partly driven by negative market sentiment, complicates dynamics. Possibly, restraining policy makers, notably the Fed, from solely focusing on its mandate to maintain price stability and increasing the need for a regulatory intervention which will safeguard depositors, ultimately preventing outflows of deposits.
-
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
RETURN (SINCE INCEPTION)*
-10.57%
*View Performance History below
Inception Date: 15 Sep 2021
ISIN: MT7000030680
Bloomberg Ticker: CCPISAE MV
Entry Charge: up to 2.50%
Total Expense Ratio: 2.18%
Exit Charge: None
Distribution Yield (%): 2.83
Underlying Yield (%): -
Distribution: 31/05 and 30/11
Total Net Assets: 6.67 mn
Month end NAV in EUR: 87.35
Number of Holdings: 13
Auditors: Deloitte Malta
Legal Advisor: GANADO Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 86.6
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 Yield19.9%
CC Funds SICAV plc - High Income Bond Fund9.6%
Robeco Capital Growth Funds - High Yield Bonds8.2%
Nordea 1 - European High Yield Bond Fund7.8%
DWS Invest Euro High Yield Corp7.2%
BlackRock Global High Yield Bond Fund7.1%
Janus Henderson Horizon Global High Yield Bond Fund6.8%
AXA World Funds - Global High Yield Bonds6.8%
Schroder International Selection Fund Global High Yield6.7%
Fidelity Funds - European High Yield Bond Fund6.5%
Top Holdings by Country
Global38.40%
Europe36.90%
International21.60%
Asset Allocation
Fund 87.90%ETF 9.00%Cash 3.10%Performance History (EUR)*
YTD***
2.44%
2022
-11.59%
2021
-1.26%
1-month
1.18%
6-month
5.47%
12-month
-3.21%
* The Distributor Share Class (Class A) was launched on 15 September 2021.** Performance figures are calculated using the Value Added Monthly Index "VAMI" principle. The VAMI calculates the total return gained by aninvestor from reinvestment of any dividends and additional interest gained through compounding.*** The Distributor Share Class (Class A) was launched on 15 September 2021.**** Returns quoted net of TER. Entry and exit charges may reduce returns for investors.Currency Allocation
Euro 100.0%USD 0.0%GBP 0.0% -
Downloads
Commentary
April 2023
Introduction
Market sentiment, as fresh economic data proved resilient, have in April outweighed lingering concerns swarming investors, pondering the severity of a pending recession, banking sector turbulence – worsened by negative sector-specific sentiment surrounding US regional banks – and expectations of further monetary tightening. The latter primarily subject to inflation and job figures.
While a critical point in the battle against inflation has seemingly been reached, as price pressures continue to ease, the trajectory is thus far still not moving quickly enough for both the ECB and Federal Reserve to declare victory. Indeed, the next couple of months will determine whether efforts came to fruition and whether or not monetary politicians navigated a so-called soft landing without tipping the respective economies into a recession.
In April, financial markets – albeit remaining on edge with further clarity being sought – edged higher. In fixed income, government bond yields remained largely unchanged. European and U.S. investment grade and high yield corporate credit headed higher.
Market environment and performance
Forward looking indicators, namely PMIs, expanded at the fastest pace of growth in 11 months, driven solely by service sector growth which continued to offset the downturn in manufacturing. Manufacturing (reading 45.8 v a previous month reading of 47.3) continued to point to a worse performance, remaining in contractionary territory. Meanwhile, services (reading 56.2 v a preliminary estimate of 56.6 and previous month reading of 55.0) advanced with Italy and Spain being the main drivers, aided by the tourism industry and travel boom. Overall, new order intakes rose at a similarly-strong rate to that of output. Backlogs of work too rose, as companies stepped up their efforts to boost capacity, with employment levels rising at the sharpest pace since May 2022.
Inflationary pressures, previously showing signs of easing, have over the month somewhat disappointed, supporting the ECBs forceful moves to bring inflation back to target. Particularly, as headline inflation edged higher and as core prices remained remarkably elevated, higher than levels policy makers would have desired. Notably, core inflation has in April edged marginally lower to 5.6% from 5.7% in the previous month reading.
In April, aggregate business activity in the US continued to rebound, pointing to an expansion for a third successive month running. Notably, composite PMI rose sharply (53.4 v 52.3 in March) following a solid upturn in private sector business activity that was the fastest since May 2022. Manufacturing PMI (reading 50.2) pointed to a first marginal expansions in factory activity. New orders returned to expansion territory and production increased at the fastest pace since May 2022 while new export orders contracted further. Meanwhile, services (reading 53.6 v a preliminary estimate of 53.7 and previous month reading of 52.6) advanced, pointing to point to the biggest expansion in the services sector in a year, as output, new orders and employment growth all accelerated.
Annual inflation rate in the US for a tenth successive month slowed to 4.9%, less than March’s figure of 5.0% and now well down from its 8.9% peak in June. Month-on-month, core consumer prices increased 0.4%, higher from the 0.1% in March, but matching expectations. From the employment front, the US economy created 253K jobs in April, largely exceeding the 70K-100K monthly job gain needed to keep up with growth in the working-age population. Meanwhile, the unemployment rate in the US edged lower to 3.4%, matching a 50-year low of 3.4 percent seen in January. Average hourly earnings for all employees increased by 4.4% year-on-year, following an upwardly revised 4.3% rise in the prior month, still pointing to a tight labour market.
From a performance view point, markets rebounded following a volatile March. Spreads tightened as markets recovered from an indiscriminate sell-off following the events surrounding Silicon Valley Bank and Credit Suisse, resulting in positive total returns. Notably, European and US investment grade posted positive returns, returning c. 0.69% and 0.82% respectively. The more speculative segment too headed higher.
Fund performance
Performance for the month of April proved positive, noting a 1.18% gain for the CC Income Strategy Fund – in line with the moves witnessed across high yield credit markets during such period.
Market and investment outlook
An orderly market, following a turbulent end to the first quarter, was in April restored as activity remained resilient in the face of mounting headwinds. Indeed, the closure of another US financial institution at the end of April highlights that the cumulative impact of aggressive policy tightening (somewhat justified given the elevated levels of inflation and tight labour market) has still not been fully felt by developed economies. With the latter in mind and despite the recent improvement across business surveys, risks of a recession transpiring, remain.
The recent banking crisis, partly driven by negative market sentiment, complicates dynamics. Possibly, restraining policy makers, notably the Fed, from solely focusing on its mandate to maintain price stability and increasing the need for a regulatory intervention which will safeguard depositors, ultimately preventing outflows of deposits.