Investment Objectives

The CC Income Strategy Fund (Distribution) aims to achieve a combination of income, with the possibility of capital growth by investing in a diversified portfolio of collective investment schemes.

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

  1. 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.
  2. 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.
  3. 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.
  4. 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.

Commentary

November 2021

Strategy funds forming the basis for portfolio construction

The underlying principle for the creation of strategy funds is that they form the basis of portfolio construction. The aim is for investors to determine the optimal risk profile through a process which is ideally determined in unison with a financial advisor. Once the risk profile is determined, then a strategy is chosen in order to provide the basis for a resilient portfolio. The scope for these strategies is to provide a core market risk exposure which is aligned with the customer’s risk profile which can be combined with other investments that cater for the specific circumstances of the investor. There are two ways to construct a portfolio involving these strategies, the investor can either select a strategy and stick with it as a standalone investment or select a strategy that can be combined with other investments. All three strategies provide a high degree of diversification through an underlying investment in top tier fund houses which makes them a solid proposition for prospective investors seeking long-term sustainable returns.

European equities underperformed significantly for the month as emerging variants worry markets. 

Regional equity performance was uneven between the US and Europe, wherein the US outstripped Europe by a significant margin. This was a particular month in which correlations did not hold between equity returns. Normally the trend for 2021 was that a negative performance in one region was followed by another negative performance in the other of a similar magnitude. However, this was the exception during the month of November, as the S&P 500 fell by only 0.70%, whilst the Euro Stoxx 50 fell by 4.30%. On a year to date basis, November played into US equities with a relative underperformance by European equities in excess of 4%. European performance was characterised by an underperformance in Cyclicals for the month with Autos and Parts, Basic Resources, Financial Services, Construction and materials and Insurance being the worst performing industries. On the other hand, industries, such as Telecommunication, Utilities, and Real Estate cushioned the negative returns.

In the European high yield space, November continued on the same trend as that observed since mid-September, whereby yields continued to trend upwards. Indeed, during November yields in European high yield eclipsed the three percent mark for the first time this year. Similarly, credit spreads in Europe continued to rise following the immediate uncertainty for economies due to the ongoing winter season which may provide higher hospitalisation incidence and the emergence of new Covid variants. A comparative look into credit spreads in Europe and the US show a similar credit spread number of c. 380 basis points, however, the level of interest rate differs due to differing economic expectations. In fact, a new variant named ‘Omicron’ spooked markets with downside volatility hitting all-time highs for 2021 at the end of the month. This variant risk coincided with a hawkish sentiment on expected monetary intervention by the Federal Reserve. These two factors dampened market confidence which further fuelled a sell-off in equity markets with a mild impact on European High Yield.

The variant risk became the overriding event that plummeted confidence which led to a risk-off trade which resulted in investment grade debt on the long-end of the yield curve to perform strongly for the month under review. Interestingly, within the high yield debt market, lower graded debt (that is, CCC rating) outperformed higher graded debt (that is, BB rating) for the month. In line with risky assets, emerging high yield debt was on the back foot for the month, as the strong dollar and under-vaccination in the EM region all played into a disappointing performance, even on a year-to-date basis. Currently, the emerging high yield market is at a yearly high with a yield of circa 7.80%.

A quick introduction to our Global High Income Bond Fund

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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

Mixed

MIN. INITIAL INVESTMENT

€5000

FUND TYPE

UCITS

BASE CURRENCY

EUR

RETURN (SINCE INCEPTION)*

-1.34%

*View Performance History below
Inception Date: 15 Sep 2021
ISIN: MT7000030680
Bloomberg Ticker: CCPISAE MV
Entry Charge: up to 2.50%
Total Expense Ratio: 2.34%
Exit Charge: None
Distribution Yield (%):
Underlying Yield (%):
Distribution: 31/05 and 30/11
Total Net Assets: 6.86 mn
Month end NAV in EUR: 98.66
Number of Holdings: 11
Auditors: Deloitte Malta
Legal Advisor: GANADO Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 88.1

Performance To Date (EUR)

Top 10 Holdings

UBS (Lux) Bond Fund - Euro High Yield
14.3%
CC Funds SICAV plc - Euro High Yield
14.2%
Janus Henderson Horizon Global High Yield Bond Fund
9.4%
BlackRock Global High Yield Bond Fund
9.4%
AXA World Funds - Global High Yield Bonds
9.1%
Robeco Capital Growth Funds - High Yield Bonds
9.1%
Schroder International Selection Fund Global High Yield
9.1%
DWS Invest Euro High Yield Corp
4.5%
Nordea 1 - European High Yield Bond Fund
4.5%
iShares Global High Yield Corp Bond UCITS ETF
4.5%
Data for major sector breakdown is not available for this fund.
Data for maturity buckets is not available for this fund.
Data for credit ratings is not available for this fund.

Risk & Reward Profile

1
2
3
4
5
6
7
Lower Risk

Potentialy Lower Reward

Higher Risk

Potentialy Higher Reward

Top Holdings by Country

Global
41.9%
International
27.2%
Europe
23.2%

Asset Allocation

Fund 87.9%
Cash 7.6%
ETF 4.5%

Performance History (EUR)*

YTD

-1.34%

2020

-%

2019

-%

1-month

-0.57%

3-month

-0.77%

Annualised Since Inception***

-%

*The Distributor Share Class (Class A) was launched on 15 September 2021

Currency Allocation

Euro 100.0%
USD 0.0%
GBP 0.0%
Data for risk statistics is not available for this fund.

Interested in this product?

  • Investment Objectives

    The CC Income Strategy Fund (Distribution) aims to achieve a combination of income, with the possibility of capital growth by investing in a diversified portfolio of collective investment schemes.

  • 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 
    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

  • Commentary

    November 2021

    Strategy funds forming the basis for portfolio construction

    The underlying principle for the creation of strategy funds is that they form the basis of portfolio construction. The aim is for investors to determine the optimal risk profile through a process which is ideally determined in unison with a financial advisor. Once the risk profile is determined, then a strategy is chosen in order to provide the basis for a resilient portfolio. The scope for these strategies is to provide a core market risk exposure which is aligned with the customer’s risk profile which can be combined with other investments that cater for the specific circumstances of the investor. There are two ways to construct a portfolio involving these strategies, the investor can either select a strategy and stick with it as a standalone investment or select a strategy that can be combined with other investments. All three strategies provide a high degree of diversification through an underlying investment in top tier fund houses which makes them a solid proposition for prospective investors seeking long-term sustainable returns.

    European equities underperformed significantly for the month as emerging variants worry markets. 

    Regional equity performance was uneven between the US and Europe, wherein the US outstripped Europe by a significant margin. This was a particular month in which correlations did not hold between equity returns. Normally the trend for 2021 was that a negative performance in one region was followed by another negative performance in the other of a similar magnitude. However, this was the exception during the month of November, as the S&P 500 fell by only 0.70%, whilst the Euro Stoxx 50 fell by 4.30%. On a year to date basis, November played into US equities with a relative underperformance by European equities in excess of 4%. European performance was characterised by an underperformance in Cyclicals for the month with Autos and Parts, Basic Resources, Financial Services, Construction and materials and Insurance being the worst performing industries. On the other hand, industries, such as Telecommunication, Utilities, and Real Estate cushioned the negative returns.

    In the European high yield space, November continued on the same trend as that observed since mid-September, whereby yields continued to trend upwards. Indeed, during November yields in European high yield eclipsed the three percent mark for the first time this year. Similarly, credit spreads in Europe continued to rise following the immediate uncertainty for economies due to the ongoing winter season which may provide higher hospitalisation incidence and the emergence of new Covid variants. A comparative look into credit spreads in Europe and the US show a similar credit spread number of c. 380 basis points, however, the level of interest rate differs due to differing economic expectations. In fact, a new variant named ‘Omicron’ spooked markets with downside volatility hitting all-time highs for 2021 at the end of the month. This variant risk coincided with a hawkish sentiment on expected monetary intervention by the Federal Reserve. These two factors dampened market confidence which further fuelled a sell-off in equity markets with a mild impact on European High Yield.

    The variant risk became the overriding event that plummeted confidence which led to a risk-off trade which resulted in investment grade debt on the long-end of the yield curve to perform strongly for the month under review. Interestingly, within the high yield debt market, lower graded debt (that is, CCC rating) outperformed higher graded debt (that is, BB rating) for the month. In line with risky assets, emerging high yield debt was on the back foot for the month, as the strong dollar and under-vaccination in the EM region all played into a disappointing performance, even on a year-to-date basis. Currently, the emerging high yield market is at a yearly high with a yield of circa 7.80%.

  • 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

    Mixed

    MIN. INITIAL INVESTMENT

    €5000

    FUND TYPE

    UCITS

    BASE CURRENCY

    EUR

    RETURN (SINCE INCEPTION)*

    -1.34%

    *View Performance History below
    Inception Date: 15 Sep 2021
    ISIN: MT7000030680
    Bloomberg Ticker: CCPISAE MV
    Entry Charge: up to 2.50%
    Total Expense Ratio: 2.34%
    Exit Charge: None
    Distribution Yield (%):
    Underlying Yield (%):
    Distribution: 31/05 and 30/11
    Total Net Assets: 6.86 mn
    Month end NAV in EUR: 98.66
    Number of Holdings: 11
    Auditors: Deloitte Malta
    Legal Advisor: GANADO Advocates
    Custodian: Sparkasse Bank Malta p.l.c.
    % of Top 10 Holdings: 88.1

    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

    UBS (Lux) Bond Fund - Euro High Yield
    14.3%
    CC Funds SICAV plc - Euro High Yield
    14.2%
    Janus Henderson Horizon Global High Yield Bond Fund
    9.4%
    BlackRock Global High Yield Bond Fund
    9.4%
    AXA World Funds - Global High Yield Bonds
    9.1%
    Robeco Capital Growth Funds - High Yield Bonds
    9.1%
    Schroder International Selection Fund Global High Yield
    9.1%
    DWS Invest Euro High Yield Corp
    4.5%
    Nordea 1 - European High Yield Bond Fund
    4.5%
    iShares Global High Yield Corp Bond UCITS ETF
    4.5%

    Top Holdings by Country

    Global
    41.9%
    International
    27.2%
    Europe
    23.2%

    Asset Allocation

    Fund 87.9%
    Cash 7.6%
    ETF 4.5%

    Performance History (EUR)*

    YTD

    -1.34%

    2020

    -%

    2019

    -%

    1-month

    -0.57%

    3-month

    -0.77%

    Annualised Since Inception***

    -%

    *The Distributor Share Class (Class A) was launched on 15 September 2021

    Currency Allocation

    Euro 100.0%
    USD 0.0%
    GBP 0.0%
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