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.

Commentary

September 2024

Introduction

Malta’s economy continued to demonstrate resilience and growth, with second-quarter growth of 4.40% year-over-year. The reading marked the fourteenth consecutive quarter of expansion, albeit at the weakest pace since the third-quarter of 2022 amid a slowdown in consumer spending and government expenditure.

Foreign trade, particularly exports, remains a key driver of the economy. The strength of Malta’s export sector is evident in the robust 6.40% year-over-year growth recorded in the second quarter. Additionally, business confidence remained strong, despite lower compared to June’s reading. Tourism, a cornerstone of Malta’s economy, continues to thrive with traffic volumes at the Malta International Airport proving to be well above the record passenger movements handled in 2023. 

Market environment and performance

Europe’s economy, initially proving somewhat resilient, has in recent months consistently shown signs of weakening, particularly as its largest economies continue to face a deterioration in economic metrics. Recent Purchasing Managers’ Index (PMI) data supports these trends, indicating a slowdown in the Eurozone and a potential technical recession in Germany, Europe’s largest economy.

September’s Eurozone Composite PMI, albeit revised higher, signaled total business activity in Euro Area private sector activity decreased for the first time since February, as the three biggest economies in the Euro Area – Germany, France and Italy – recorded contractions simultaneously for the first time in 2024 so far. Overall, services slowed (51.4 vs 52.9 in August) and the manufacturing contraction deepened (45 vs 45.8 in August) as demand for euro area goods and services fell at the quickest pace in eight months. This, leading to backlog reductions and a slightly faster rate of job cutting. Business confidence too weakened, yet fractionally, taking it further beneath its long-run average.

Inflation, consequent to the base effect, particularly on energy, fell to 1.8% in September, the lowest since April 2021, compared to 2.2% in August and preliminary estimates of 1.9%. Core inflation, albeit marginally, eased to 2.7%. A particular concern for the ECB is services inflation, which remains anchored at or above 4.0% for a fifth consecutive month. The labour market remained healthy, with unemployment rate revolving at notable lows (6.4% in August), and significantly below a 20-year average of 9.3%.

Consequent to the worsening economic trends, the European Central Bank (ECB) eased monetary policy by cutting interest rates by 25 bps in September, driving yields overall lower (meaning prices rose). German and French 10-year government bond yields declined over the quarter but underperformed relative to Italy and Spain, which were among the strongest performers in Europe.

Fund performance

In September, the Malta High Income Fund registered a gain of 0.63% for the month, outperforming its internally compared benchmark which saw 0.52% loss, as locally listed equities underperformed the fixed income segment.

Market and investment outlook

The narrative for credit markets remained largely unchanged throughout the third quarter, with investor focus centered on economic data and central bank policy. In the most recent policy meeting, central bankers demonstrated their willingness to adopt an accommodative bias, depending on economic needs, with a willingness to adjust policy accordingly to foster a healthy economic environment. The ECB continued to emphasize on data dependency, eyeing inflation, particularly within the services sector. Safeguarding the employment market too remains key.

The anticipation of year-end interest rate cuts fosters a positive outlook for the global bond market. We believe locking in current attractive coupon levels is prudent before potential policy easing.

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*

-4.71%

*View Performance History below
Inception Date: 10 Apr 2018
ISIN: MT7000022273
Bloomberg Ticker: CCMIFAA MV
Distribution Yield (%): N/A
Underlying Yield (%): 3.11
Distribution: N/A
Total Net Assets: €18.49 mn
Month end NAV in EUR: 100.40
Number of Holdings: 75
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.

Performance To Date (EUR)

Top 10 Holdings

4% Central Business Centres 2033
3.8%
3.9% Browns Pharma 2031
3.2%
3.5% GO plc 2031
3.1%
4.65% Smartcare Finance plc 2031
3.0%
Amundi Euro Govt. Bond 10-15Y
3.0%
4.35% SD Finance plc 2027
2.9%
3.75% Tum Finance plc 2029
2.7%
Harvest Technology plc
2.6%
GO plc
2.6%
4% Stivala Group Finance 2027
2.5%

Major Sector Breakdown*

Financials
55.6%
Consumer Discretionary
11.6%
Consumer Staples
9.7%
Asset 7
Communications
7.9%
Information Technology
4.3%
Industrials
3.7%
*including exposures to CIS

Maturity Buckets*

40.3%
0-5 Years
35.2%
5-10 Years
0.9%
10 Years+
*based on the Next Call Date
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*

Malta
93.9%
Other
6.1%
*including exposures to CIS and Cash

Asset Allocation*

Cash 0.3%
Bonds 79.8%
Equities 19.8%
* including exposures to CIS

Performance History (EUR)*

1 Year

1.11%

3 Year

-3.92%

5 Year

-4.71%

* 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%
Data for risk statistics is not available for this fund.

Interested in this product?

  • 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.

    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

    • 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.
  • Commentary

    September 2024

    Introduction

    Malta’s economy continued to demonstrate resilience and growth, with second-quarter growth of 4.40% year-over-year. The reading marked the fourteenth consecutive quarter of expansion, albeit at the weakest pace since the third-quarter of 2022 amid a slowdown in consumer spending and government expenditure.

    Foreign trade, particularly exports, remains a key driver of the economy. The strength of Malta’s export sector is evident in the robust 6.40% year-over-year growth recorded in the second quarter. Additionally, business confidence remained strong, despite lower compared to June’s reading. Tourism, a cornerstone of Malta’s economy, continues to thrive with traffic volumes at the Malta International Airport proving to be well above the record passenger movements handled in 2023. 

    Market environment and performance

    Europe’s economy, initially proving somewhat resilient, has in recent months consistently shown signs of weakening, particularly as its largest economies continue to face a deterioration in economic metrics. Recent Purchasing Managers’ Index (PMI) data supports these trends, indicating a slowdown in the Eurozone and a potential technical recession in Germany, Europe’s largest economy.

    September’s Eurozone Composite PMI, albeit revised higher, signaled total business activity in Euro Area private sector activity decreased for the first time since February, as the three biggest economies in the Euro Area – Germany, France and Italy – recorded contractions simultaneously for the first time in 2024 so far. Overall, services slowed (51.4 vs 52.9 in August) and the manufacturing contraction deepened (45 vs 45.8 in August) as demand for euro area goods and services fell at the quickest pace in eight months. This, leading to backlog reductions and a slightly faster rate of job cutting. Business confidence too weakened, yet fractionally, taking it further beneath its long-run average.

    Inflation, consequent to the base effect, particularly on energy, fell to 1.8% in September, the lowest since April 2021, compared to 2.2% in August and preliminary estimates of 1.9%. Core inflation, albeit marginally, eased to 2.7%. A particular concern for the ECB is services inflation, which remains anchored at or above 4.0% for a fifth consecutive month. The labour market remained healthy, with unemployment rate revolving at notable lows (6.4% in August), and significantly below a 20-year average of 9.3%.

    Consequent to the worsening economic trends, the European Central Bank (ECB) eased monetary policy by cutting interest rates by 25 bps in September, driving yields overall lower (meaning prices rose). German and French 10-year government bond yields declined over the quarter but underperformed relative to Italy and Spain, which were among the strongest performers in Europe.

    Fund performance

    In September, the Malta High Income Fund registered a gain of 0.63% for the month, outperforming its internally compared benchmark which saw 0.52% loss, as locally listed equities underperformed the fixed income segment.

    Market and investment outlook

    The narrative for credit markets remained largely unchanged throughout the third quarter, with investor focus centered on economic data and central bank policy. In the most recent policy meeting, central bankers demonstrated their willingness to adopt an accommodative bias, depending on economic needs, with a willingness to adjust policy accordingly to foster a healthy economic environment. The ECB continued to emphasize on data dependency, eyeing inflation, particularly within the services sector. Safeguarding the employment market too remains key.

    The anticipation of year-end interest rate cuts fosters a positive outlook for the global bond market. We believe locking in current attractive coupon levels is prudent before potential policy easing.

  • 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*

    -4.71%

    *View Performance History below
    Inception Date: 10 Apr 2018
    ISIN: MT7000022273
    Bloomberg Ticker: CCMIFAA MV
    Distribution Yield (%): N/A
    Underlying Yield (%): 3.11
    Distribution: N/A
    Total Net Assets: €18.49 mn
    Month end NAV in EUR: 100.40
    Number of Holdings: 75
    Auditors: Deloitte Malta
    Legal Advisor: Ganado Advocates
    Custodian: Sparkasse Bank Malta p.l.c.

    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

    4% Central Business Centres 2033
    3.8%
    3.9% Browns Pharma 2031
    3.2%
    3.5% GO plc 2031
    3.1%
    4.65% Smartcare Finance plc 2031
    3.0%
    Amundi Euro Govt. Bond 10-15Y
    3.0%
    4.35% SD Finance plc 2027
    2.9%
    3.75% Tum Finance plc 2029
    2.7%
    Harvest Technology plc
    2.6%
    GO plc
    2.6%
    4% Stivala Group Finance 2027
    2.5%

    Top Holdings by Country*

    Malta
    93.9%
    Other
    6.1%
    *including exposures to CIS and Cash

    Major Sector Breakdown*

    Financials
    55.6%
    Consumer Discretionary
    11.6%
    Consumer Staples
    9.7%
    Asset 7
    Communications
    7.9%
    Information Technology
    4.3%
    Industrials
    3.7%
    *including exposures to CIS

    Asset Allocation*

    Cash 0.3%
    Bonds 79.8%
    Equities 19.8%
    * including exposures to CIS

    Maturity Buckets*

    40.3%
    0-5 Years
    35.2%
    5-10 Years
    0.9%
    10 Years+
    *based on the Next Call Date

    Performance History (EUR)*

    1 Year

    1.11%

    3 Year

    -3.92%

    5 Year

    -4.71%

    * 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