Investment Objectives
The CC Malta Government Bond Fund aims to maximise the total level of return for investors through investment, primarily, in debt securities and money market instruments issued or guaranteed by the Government of Malta.
Investor Profile
A typical investor in the CC Malta Government Bond Fund would be one who is seeking to gain exposure to the local Government Bond Market 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 Malta Government Bond Fund are those 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.
Fund Rules
The Investment Manager will invest primarily in a portfolio of debt securities and money market instruments issued or guaranteed by the Government of Malta. The Investment Manager may invest directly in eligible collective investment schemes whose investment objective and policies are consistent with those of the Sub-Fund. The Investment Manager may also invest directly (or indirectly via eligible exchange traded funds and/or eligible collective investment schemes) up to 15% of its assets in “Non-Maltese Assets” as per below:
- Debt securities and/or money market instruments issued or guaranteed by Governments of EU, EEA and OECD Member States other than Malta, their constituent states or their local authorities; and/or
- Debt securities and/or money market instruments issued or guaranteed by supranational bodies of EU, EEA and OECD Member States other than Malta, their agencies, associated financial institutions or other associated bodies.
The Investment Manager will not be targeting debt securities (including, money market instruments, bonds, notes and other debt securities) of any particular duration, coupon or credit rating. The Sub-Fund may also invest in term deposits held with credit institutions regulated in Malta and other EU, EEA and OECD Member States.
For temporary and/or defensive purposes, the Sub-Fund may invest in other short-term debt securities or fixed income instruments, money market funds, cash and cash equivalents. The Sub-Fund may also at any time hold such securities for cash management purposes, pending investment in accordance with its Investment Policy and to meet operating expenses and redemption requests.
In pursuing its Investment Objective and Investment Policy, the Sub-Fund will be subject to the Investment, Borrowing and Leverage Restrictions set out in the Prospectus and the Offering Supplement. Furthermore, this Sub-Fund shall not invest, in the aggregate, more than 10% of its assets in units or shares of other UCITS or other CISs. The Investment Manager may make use of listed and OTC FDIs (including, but not limited to, futures, forwards, options and swaps) linked to bonds, interest rates and currencies for efficient portfolio management, hedging purposes and the reduction of risk only. The Sub-Fund will not make use of FDIs for investment purposes. The Sub-Fund is not expected to employ any leverage or gearing. Investors may redeem units of UCITS on demand on every Business Day on any day that is not a Saturday or Sunday and not a public or national holiday in Malta. The Sub-Fund may hold cash and cash equivalents on an ancillary basis.
Management Discretion: The Investment Manager has the discretion to buy and sell investments on behalf of the Sub-Fund within the limits of the Objective and Investment Policy.
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
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
RETURN (SINCE INCEPTION)*
8.63%
*View Performance History below
Inception Date: 21 Apr 2017
ISIN: MT7000017992
Bloomberg Ticker: CCMGBFA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.07%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 1.93
Distribution: N/A
Total Net Assets: €34.61 mn
Month end NAV in EUR: 108.63
Number of Holdings: 34
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 60.2
Performance To Date (EUR)
Top 10 Holdings
8.7%
7.6%
6.1%
5.2%
3.8%
3.8%
3.5%
3.4%
3.3%
3.2%
Maturity Buckets*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
65.5%
2.9%
1.9%
1.3%
1.0%
0.9%
0.8%
0.8%
0.1%
0.1%
Asset Allocation
Performance History (EUR)*
YTD
-1.38%
2020
1.31%
2019
8.98%
1-month
0.13%
3-month
-1.38%
Annualised Since Inception*
2.12%
Currency Allocation
Interested in this product?
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Investment Objectives
The CC Malta Government Bond Fund aims to maximise the total level of return for investors through investment, primarily, in debt securities and money market instruments issued or guaranteed by the Government of Malta.
-
Investor profile
A typical investor in the CC Malta Government Bond Fund would be one who is seeking to gain exposure to the local Government Bond Market 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 Malta Government Bond Fund are those 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.
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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
March 2021
The vaccine rollout hasn’t been as successful for some other developed countries, particularly in the European region. Indeed during the month there was friction between the UK and the European Union over the honouring of commitments to deliver vaccine supplies. Many European countries have only a small fraction of their population inoculated, drawing criticism from stakeholders. The risk of delays to the European recovery remain strong, as countries like Italy and France remain trapped by crippling lockdowns due to elevated cases of Covid-19.
Malta government stock yields on the short and medium end of the curve remain conditioned by movements in the yields of European peripheral countries, while the longer end of the curve is trading more independently of them, typically at a tighter spreads on a comparative basis. Yields tightened throughout the month of March across the curve, with the 10 year tightening from 0.53 to 0.45, or 8 bps while the 25 year widened from 1.26 to 1.22, or 4 bps.
Yields on Europe’s most sought after benchmark; the 10-year German Bund, closed marginally lower than the previous month at -0.292% compared to -0.292% at the beginning of March. Similarly, Italy’s 10-year sovereign yield closed the month 10bps tighter at 0.66%, and the Spanish 10-year closed 7 bps tighter at 0.34%. Domestic sovereign yields reflected peripheral moves in typically correlated fashion.
In the month of March, the CC Malta Government Bond Fund registered an increase of 0.13% compared to the MSE Malta Government Stocks Total Return Index which increased 0.06%.
The fund’s duration remains comparatively lower to its internal benchmark, and the Manager’s forward looking view is to align accordingly by tapping the medium-end of the curve, while retaining a shorter duration than the benchmark.
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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
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
RETURN (SINCE INCEPTION)*
8.63%
*View Performance History below
Inception Date: 21 Apr 2017
ISIN: MT7000017992
Bloomberg Ticker: CCMGBFA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.07%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 1.93
Distribution: N/A
Total Net Assets: €34.61 mn
Month end NAV in EUR: 108.63
Number of Holdings: 34
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 60.2
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
4.5% MGS 20288.7%
5.25% MGS 20307.6%
1% MGS 20316.1%
4.45% MGS 20325.2%
5.1% MGS 20293.8%
5.2% MGS 20313.8%
2.3% MGS 20293.5%
4.1% MGS 20343.4%
4.3% MGS 20333.3%
2.5% MGS 20363.2%
Top Holdings by Country*
Malta65.5%
France2.9%
Italy1.9%
Portugal1.3%
Hungary1.0%
Spain0.9%
Slovenia0.8%
Poland0.8%
Belgium0.1%
Ireland0.1%
*including exposures to CIS and CashAsset Allocation
Cash 24.6%Bonds 72.5%CIS/ETFs 2.9%Maturity Buckets*
7.0%0-5 Years30.1%5-10 Years35.3%10 Years+*based on the Next Call DatePerformance History (EUR)*
YTD
-1.38%
2020
1.31%
2019
8.98%
1-month
0.13%
3-month
-1.38%
Annualised Since Inception*
2.12%
*The Accumulator Share Class (Class A) was launched on 21 April 2017Currency Allocation
Euro 99.2%Other 0.8% -
Downloads
Commentary
March 2021
The vaccine rollout hasn’t been as successful for some other developed countries, particularly in the European region. Indeed during the month there was friction between the UK and the European Union over the honouring of commitments to deliver vaccine supplies. Many European countries have only a small fraction of their population inoculated, drawing criticism from stakeholders. The risk of delays to the European recovery remain strong, as countries like Italy and France remain trapped by crippling lockdowns due to elevated cases of Covid-19.
Malta government stock yields on the short and medium end of the curve remain conditioned by movements in the yields of European peripheral countries, while the longer end of the curve is trading more independently of them, typically at a tighter spreads on a comparative basis. Yields tightened throughout the month of March across the curve, with the 10 year tightening from 0.53 to 0.45, or 8 bps while the 25 year widened from 1.26 to 1.22, or 4 bps.
Yields on Europe’s most sought after benchmark; the 10-year German Bund, closed marginally lower than the previous month at -0.292% compared to -0.292% at the beginning of March. Similarly, Italy’s 10-year sovereign yield closed the month 10bps tighter at 0.66%, and the Spanish 10-year closed 7 bps tighter at 0.34%. Domestic sovereign yields reflected peripheral moves in typically correlated fashion.
In the month of March, the CC Malta Government Bond Fund registered an increase of 0.13% compared to the MSE Malta Government Stocks Total Return Index which increased 0.06%.
The fund’s duration remains comparatively lower to its internal benchmark, and the Manager’s forward looking view is to align accordingly by tapping the medium-end of the curve, while retaining a shorter duration than the benchmark.