Investment Objective
The Fund aims to maximise the total level of return through investment, primarily in debt securities and money market instruments issued by the Government of Malta, and equities and corporate bonds issued and listed on the MSE.
The Investment Manager may also invest directly or indirectly up to 15% of its assets in “Non- Maltese Assets”. The Investment Manager will maintain an exposure to local debt securities of at least 55% of the value of the Net Assets of the Fund.
The Fund is actively managed, not managed by reference to any index
Investor Profile
A typical investor in the CC Malta High Income Fund would be to one who is seeking to gain exposure to the local Government Bond Market and the local corporate bond and local equity markets, either by achieving capital growth and accumulation of wealth via the Accumulation Share Class A, or by receiving periodical distributions which the CC Malta High Income Fund would have benefited from time to time via the Distribution Share Class B.
Fund Rules
In seeking to achieve the fund’s investment objective, the Investment Manager shall aim to invest at least 85% of the Net Assets of the fund in a portfolio of debt securities and money market instruments issued or guaranteed by the Government of Malta, as well as equities and corporate bonds issued and listed on the Malta Stock Exchange with no particular focus on any industry.
- The Investment Manager may invest up to 10% of the net assets of the Sub-Fund in un-listed Maltese and/or Non-Maltese Assets. As far as the “Non-Maltese Assets” segment of the Sub-Fund is concerned, the Investment Manager will not be targeting any international debt securities of any particular duration or coupon. However, the Sub-Fund is generally not expected to hold investments that, at the time of investment, are rated below “B3” by Moody’s or below “B-“ by S&P or in bonds determined to be of comparable quality by the Investment Manager.
- The Investment Manager will not be targeting any local debt securities (debt securities and money market instruments issued or guaranteed by the Government of Malta and/or local corporate bonds issued and listed on the Malta Stock Exchange) of any particular duration or coupon.
- The Investment Manager will, at all times, maintain a direct exposure to local debt securities (debt securities and money market instruments issued or guaranteed by the Government of Malta and/or issued and listed on the Malta Stock Exchange) of at least 55% of the value of the Net Assets of the Sub-Fund.
- The Sub-Fund may also invest in term deposits held with credit institutions regulated in Malta and other EU, EEA and OECD Member States.
- This Sub-Fund shall not invest, in the aggregate, more than 10% of the Net Assets of the Sub-Fund in units or shares of other UCITS or other CISs.
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
5 year performance*
1.28%
*View Performance History below
Inception Date: 10 Apr 2018
ISIN: MT7000022273
Bloomberg Ticker: CCMIFAA MV
Distribution Yield (%): N/A
Underlying Yield (%): 3.05
Distribution: N/A
Total Net Assets: €16.47 mn
Month end NAV in EUR: 100.99
Number of Holdings: 71
Auditors: Grant Thornton
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
Performance To Date (EUR)
Top 10 Holdings
4.2%
3.6%
3.4%
3.3%
3.2%
3.1%
3.0%
2.8%
2.7%
2.7%
Major Sector Breakdown*
Financials
56.9%
Consumer Staples
9.9%
Consumer Discretionary
9.0%
Communications
8.5%
Industrials
7.0%
Information Technology
2.0%
Maturity Buckets*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
93.7%
6.3%
Asset Allocation*
Performance History (EUR)*
1 Year
0.88%
3 Year
-1.07%
5 Year
1.28%
Currency Allocation
Interested in this product?
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Investment Objective
The Fund aims to maximise the total level of return through investment, primarily in debt securities and money market instruments issued by the Government of Malta, and equities and corporate bonds issued and listed on the MSE.
The Investment Manager may also invest directly or indirectly up to 15% of its assets in “Non- Maltese Assets”. The Investment Manager will maintain an exposure to local debt securities of at least 55% of the value of the Net Assets of the Fund.
The Fund is actively managed, not managed by reference to any index
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Investor profile
A typical investor in the CC Malta High Income Fund would be to one who is seeking to gain exposure to the local Government Bond Market and the local corporate bond and local equity markets, either by achieving capital growth and accumulation of wealth via the Accumulation Share Class A, or by receiving periodical distributions which the CC Malta High Income Fund would have benefited from time to time via the Distribution Share Class B.
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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
- The Investment Manager may invest up to 10% of the net assets of the Sub-Fund in un-listed Maltese and/or Non-Maltese Assets. As far as the “Non-Maltese Assets” segment of the Sub-Fund is concerned, the Investment Manager will not be targeting any international debt securities of any particular duration or coupon. However, the Sub-Fund is generally not expected to hold investments that, at the time of investment, are rated below “B3” by Moody’s or below “B-“ by S&P or in bonds determined to be of comparable quality by the Investment Manager.
- The Investment Manager will not be targeting any local debt securities (debt securities and money market instruments issued or guaranteed by the Government of Malta and/or local corporate bonds issued and listed on the Malta Stock Exchange) of any particular duration or coupon.
- The Investment Manager will, at all times, maintain a direct exposure to local debt securities (debt securities and money market instruments issued or guaranteed by the Government of Malta and/or issued and listed on the Malta Stock Exchange) of at least 55% of the value of the Net Assets of the Sub-Fund.
- The Sub-Fund may also invest in term deposits held with credit institutions regulated in Malta and other EU, EEA and OECD Member States.
- This Sub-Fund shall not invest, in the aggregate, more than 10% of the Net Assets of the Sub-Fund in units or shares of other UCITS or other CISs.
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Commentary
April 2025
Introduction
In 2024, Malta’s economy sustained its growth trajectory, driven by strong domestic demand and solid export performance. Tourism arrivals to Malta remained on the rise, while employment stayed robust, with unemployment falling to 2.9%.
Malta’s economy grew by 2.8% (annualized) in the fourth quarter of 2024, slowing from a 4.9% gain in the previous three-month period. This marked the weakest expansion since Q1 of 2021, influenced by a slowdown in household consumption. At the same time, government spending (2.2% vs 1.4%) increased at a faster pace. On net external demand, exports remained unchanged while imports ticked lower.
Inflation pressures on consumers rose, with the annual inflation rising to 2.1% in March from 2.0% in the previous month. This marked the highest inflation rate since November 2024, as prices increased at a faster pace for food and non-alcoholic beverages, transport, clothing and footwear, and education.
Market environment and performance
In the euro area, Q1 growth outperformed expectations, supported by strength in southern European economies. This momentum carried into April, with Composite PMI readings remaining in expansionary territory, albeit easing slightly to 50.4 from 50.9 in March—still above forecasts.
On the price front, across the bloc remained largely stable, bolstering confidence that the disinflation process remains on track toward the ECB’s 2% medium-term target. In April, annual inflation remained steady at 2.2 slightly exceeding market expectations of 2.1% and hovering just above the European Central Bank’s 2.0% target midpoint, according to a preliminary estimate. A sharper drop in energy prices (-3.5% vs. -1.0% in March) was offset by faster inflation in services (3.9% vs. 3.5%) and food, alcohol, and tobacco (3.0% vs. 2.9%).
The labour market, remained healthy, with the unemployment rate revolving at notable lows (6.2% in March), and significantly below the 20-year average.
From a policy perspective, the European Central Bank (ECB) opted to cut its benchmark rates by 25bps, lowering the deposit facility rate to 2.25%. The ECB’s move underscored growing concerns about slowing euro area growth and a disinflationary trend considered to be “well on track.” Contributing factors included stronger euro currency performance, softer energy prices, and escalating U.S. tariffs.
Fund performance
In April, the Malta High Income Fund registered a gain of 0.67% for the month, outperforming its internally compared benchmark which saw a loss of 0.38%.
Market and investment outlook
The credit market narrative that began the year – with a focus on political uncertainty and central bank policy – remained prominent into Q2. Political tensions escalated as former President Trump adopted a more aggressive stance on tariffs, though this was later moderated with a 90-day pause. Meanwhile, central bank policies diverged: the Federal Reserve kept rates steady amid persistent inflation and signs of slowing growth, while the ECB cut its benchmark rate by 25bps to 2.25%, citing weakening euro area growth and a disinflation trend supported by a stronger euro, lower energy prices, and rising U.S. tariffs.
These monetary shifts led to divergence in bond markets, with European sovereign debt outperforming as yields tightened significantly. Malta’s yield curve followed suit, particularly on the long end, which saw a marked decline.
Looking ahead, Malta’s economy is expected to remain robust through 2025. Inflation remains low despite a slight uptick, and recent tax cuts are likely to support domestic consumption. The anticipated rise in tourist arrivals heading into peak season also bodes well for continued economic momentum.
In line with recent portfolio adjustments, we will continue to modify the portfolio’s duration as deemed necessary and appropriate. Additionally, we aim to increase the fund’s exposure to non-Maltese assets, utilizing the permitted 15% maximum allocation.
-
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
5 year performance*
1.28%
*View Performance History below
Inception Date: 10 Apr 2018
ISIN: MT7000022273
Bloomberg Ticker: CCMIFAA MV
Distribution Yield (%): N/A
Underlying Yield (%): 3.05
Distribution: N/A
Total Net Assets: €16.47 mn
Month end NAV in EUR: 100.99
Number of Holdings: 71
Auditors: Grant Thornton
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
4% Central Business Centres 20334.2%
3.9% Browns Pharma 20313.6%
3.5% GO plc 20313.4%
4.65% Smartcare Finance plc 20313.3%
4.35% SD Finance plc 20273.2%
3.75% Tum Finance plc 20293.1%
4.5% Endo Finance plc 20293.0%
Harvest Technology plc2.8%
GO plc2.7%
4.00% Stivala Group Finance plc 20272.7%
Top Holdings by Country*
Malta93.7%
Other6.3%
*including exposures to CIS and CashMajor Sector Breakdown*
Financials
56.9%
Consumer Staples
9.9%
Consumer Discretionary
9.0%
Communications
8.5%
Industrials
7.0%
Information Technology
2.0%
*including exposures to CISAsset Allocation*
Cash 2.0%Bonds 77.3%Equities 20.6%* including exposures to CISMaturity Buckets*
37.9%0-5 Years37.1%5-10 Years0.6%10 Years+*based on the Next Call DatePerformance History (EUR)*
1 Year
0.88%
3 Year
-1.07%
5 Year
1.28%
* The Accumulator Share Class (Class A) was launched on 10 April 2018** 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 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.*** Returns quoted net of TER. Entry and exit charges may reduce returns for investors.Currency Allocation
Euro 100% -
Downloads
Commentary
April 2025
Introduction
In 2024, Malta’s economy sustained its growth trajectory, driven by strong domestic demand and solid export performance. Tourism arrivals to Malta remained on the rise, while employment stayed robust, with unemployment falling to 2.9%.
Malta’s economy grew by 2.8% (annualized) in the fourth quarter of 2024, slowing from a 4.9% gain in the previous three-month period. This marked the weakest expansion since Q1 of 2021, influenced by a slowdown in household consumption. At the same time, government spending (2.2% vs 1.4%) increased at a faster pace. On net external demand, exports remained unchanged while imports ticked lower.
Inflation pressures on consumers rose, with the annual inflation rising to 2.1% in March from 2.0% in the previous month. This marked the highest inflation rate since November 2024, as prices increased at a faster pace for food and non-alcoholic beverages, transport, clothing and footwear, and education.
Market environment and performance
In the euro area, Q1 growth outperformed expectations, supported by strength in southern European economies. This momentum carried into April, with Composite PMI readings remaining in expansionary territory, albeit easing slightly to 50.4 from 50.9 in March—still above forecasts.
On the price front, across the bloc remained largely stable, bolstering confidence that the disinflation process remains on track toward the ECB’s 2% medium-term target. In April, annual inflation remained steady at 2.2 slightly exceeding market expectations of 2.1% and hovering just above the European Central Bank’s 2.0% target midpoint, according to a preliminary estimate. A sharper drop in energy prices (-3.5% vs. -1.0% in March) was offset by faster inflation in services (3.9% vs. 3.5%) and food, alcohol, and tobacco (3.0% vs. 2.9%).
The labour market, remained healthy, with the unemployment rate revolving at notable lows (6.2% in March), and significantly below the 20-year average.
From a policy perspective, the European Central Bank (ECB) opted to cut its benchmark rates by 25bps, lowering the deposit facility rate to 2.25%. The ECB’s move underscored growing concerns about slowing euro area growth and a disinflationary trend considered to be “well on track.” Contributing factors included stronger euro currency performance, softer energy prices, and escalating U.S. tariffs.
Fund performance
In April, the Malta High Income Fund registered a gain of 0.67% for the month, outperforming its internally compared benchmark which saw a loss of 0.38%.
Market and investment outlook
The credit market narrative that began the year – with a focus on political uncertainty and central bank policy – remained prominent into Q2. Political tensions escalated as former President Trump adopted a more aggressive stance on tariffs, though this was later moderated with a 90-day pause. Meanwhile, central bank policies diverged: the Federal Reserve kept rates steady amid persistent inflation and signs of slowing growth, while the ECB cut its benchmark rate by 25bps to 2.25%, citing weakening euro area growth and a disinflation trend supported by a stronger euro, lower energy prices, and rising U.S. tariffs.
These monetary shifts led to divergence in bond markets, with European sovereign debt outperforming as yields tightened significantly. Malta’s yield curve followed suit, particularly on the long end, which saw a marked decline.
Looking ahead, Malta’s economy is expected to remain robust through 2025. Inflation remains low despite a slight uptick, and recent tax cuts are likely to support domestic consumption. The anticipated rise in tourist arrivals heading into peak season also bodes well for continued economic momentum.
In line with recent portfolio adjustments, we will continue to modify the portfolio’s duration as deemed necessary and appropriate. Additionally, we aim to increase the fund’s exposure to non-Maltese assets, utilizing the permitted 15% maximum allocation.