Investment Objectives
The Fund aims to maximise the total level of return for investors through investment, primarily, in debt securities and money market instruments issued by the Government of Malta. The Investment Manager may also invest directly or indirectly via eligible ETFs and/or eligible CISs) up to 15% of its assets in “Non-Maltese Assets” in debt securities and/or money market instruments issued or guaranteed by Governments of EU, EEA and OECD Member States other than Malta. The Investment Manager will not be targeting debt securities of any particular duration, coupon or credit rating.
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 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.
A quick introduction to our Malta Government 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
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
RETURN (SINCE INCEPTION)*
-8.47%
*View Performance History below
Inception Date: 21 Apr 2017
ISIN: MT7000017992
Bloomberg Ticker: CCMGBFA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.22%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 2.54
Distribution: N/A
Total Net Assets: €33.09 mn
Month end NAV in EUR: 91.53
Number of Holdings: 38
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 47.9
Performance To Date (EUR)
Top 10 Holdings
8.7%
8.3%
7.3%
5.2%
3.4%
3.3%
3.2%
2.9%
2.8%
2.7%
Maturity Buckets*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
64.8%
3.6%
2.3%
1.5%
1.0%
0.9%
0.9%
0.7%
0.7%
0.7%
Asset Allocation
Performance History (EUR)*
YTD
-0.30%
2022
-14.04%
2021
-3.04%
2020
1.31%
2019
8.98%
Annualised Since Inception***
-1.46%
Currency Allocation
Interested in this product?
-
Investment Objectives
The Fund aims to maximise the total level of return for investors through investment, primarily, in debt securities and money market instruments issued by the Government of Malta. The Investment Manager may also invest directly or indirectly via eligible ETFs and/or eligible CISs) up to 15% of its assets in “Non-Maltese Assets” in debt securities and/or money market instruments issued or guaranteed by Governments of EU, EEA and OECD Member States other than Malta. The Investment Manager will not be targeting debt securities of any particular duration, coupon or credit rating.
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 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 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
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, government bond yields of European sovereigns marginally rose (meaning prices fell).
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 the month, Germany’s benchmark 10-year yield remained largely unchanged increasing to 2.31% from 2.29% in the previous month. Yields of sovereigns within the Euro area’s periphery too edged higher, with Italy’s and Spain’s closing the quarter at 4.17% and 3.36%, 8bps and 6bps higher, respectively.
Fund performance
In the month of April, the CC Malta Government Bond Fund registered a loss of 0.54%, in line with the widening observed among European sovereign bond yields, outperforming the MSE Malta Government Stocks Total Return Index seeing a loss of 0.76% over the month.
Market and investment outlook
The Manager’s forward-looking view is to continue to play the duration play depending on market conditions.
Indeed, adjusting the portfolio’s duration in line with adjustments in inflationary expectations shall continue to prove crucial for relative outperformance.
-
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
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
RETURN (SINCE INCEPTION)*
-8.47%
*View Performance History below
Inception Date: 21 Apr 2017
ISIN: MT7000017992
Bloomberg Ticker: CCMGBFA MV
Entry Charge: Up to 2.5%
Total Expense Ratio: 1.22%
Exit Charge: None
Distribution Yield (%): N/A
Underlying Yield (%): 2.54
Distribution: N/A
Total Net Assets: €33.09 mn
Month end NAV in EUR: 91.53
Number of Holdings: 38
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 47.9
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
1% MGS 20318.7%
4.5% MGS 20288.3%
5.25% MGS 20307.3%
4.45% MGS 20325.2%
5.2% MGS 20313.4%
5.1% MGS 20293.3%
4.3% MGS 20333.2%
2.3% MGS 20292.9%
4.1% MGS 20342.8%
4.65% MGS 20322.7%
Top Holdings by Country*
Malta64.8%
France3.6%
Portugal2.3%
Italy1.5%
Spain1.0%
Hungary0.9%
Netherlands0.9%
Slovenia0.7%
Belgium0.7%
Ireland0.7%
*including exposures to CISAsset Allocation
Cash 20.7%Bonds 76.6%CIS/ETFs 2.7%Maturity Buckets*
11.2%0-5 Years50.1%5-10 Years15.2%10 Years+*based on the Next Call Date (also includes cash)Performance History (EUR)*
YTD
-0.30%
2022
-14.04%
2021
-3.04%
2020
1.31%
2019
8.98%
Annualised Since Inception***
-1.46%
* The Accumulator Share Class (Class A) was launched on 21 April 2017.** Returns quoted net of TER. Entry and exit charges may reduce returns for investors.*** The Annualised rate is an indication of the average growth of the Fund over one year. The value of the investment and the income yield derived from the investment, if any, may go down as well as up and past performance is not necessarily indicative of future performance, nor a reliable guide to future performance. Hence returns may not be achieved and you may lose all or part of your investment in the Fund. Currency fluctuations may affect the value of investments and any derived income.Currency Allocation
Euro 99.1%USD 0.9% -
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, government bond yields of European sovereigns marginally rose (meaning prices fell).
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 the month, Germany’s benchmark 10-year yield remained largely unchanged increasing to 2.31% from 2.29% in the previous month. Yields of sovereigns within the Euro area’s periphery too edged higher, with Italy’s and Spain’s closing the quarter at 4.17% and 3.36%, 8bps and 6bps higher, respectively.
Fund performance
In the month of April, the CC Malta Government Bond Fund registered a loss of 0.54%, in line with the widening observed among European sovereign bond yields, outperforming the MSE Malta Government Stocks Total Return Index seeing a loss of 0.76% over the month.
Market and investment outlook
The Manager’s forward-looking view is to continue to play the duration play depending on market conditions.
Indeed, adjusting the portfolio’s duration in line with adjustments in inflationary expectations shall continue to prove crucial for relative outperformance.