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.
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 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 Sub-Fund’s investment objective, the Investment Manager shall aim to invest at least 85% of the Net Assets of the Sub-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 (collectively, “Maltese Assets”) with no particular focus on any industry. Such exposure may also be obtained by investing in eligible collective investment schemes whose investment objective and policies are consistent with those of the Sub-Fund. Where the Sub-Fund invests in eligible collective investment schemes managed by the Investment Manager, the Investment Manager shall reimburse the Sub-Fund any investment management and/or performance fees, as well as any applicable subscription/redemption charges, received in connection with the Sub-Fund’s investment in the eligible collective investment scheme.
In seeking to achieve its objective, the Sub-Fund may also invest directly (or indirectly via eligible exchange traded funds and/or eligible collective investment schemes) up to 15% of the Net Assets of the Sub-Fund in:
(i) Eligible 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
(ii) Eligible 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,
(iii) Eligible international equity securities, with no particular bias to the market capitalisation and geographical location of these securities; and
(iv) Eligible international debt securities.
- 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
A quick introduction to our Malta Balanced Income 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)*
-0.88%
*View Performance History below
Inception Date: 10 Apr 2018
ISIN: MT7000022281
Bloomberg Ticker: CCMIFAB MV
Entry Charge: up to 2.50%
Total Expense Ratio: 1.68%
Exit Charge: None
Distribution Yield (%): 3.05
Underlying Yield (%): 2.88
Distribution: N/A
Total Net Assets: €21.67
Month end NAV in EUR: 88.63
Number of Holdings: 78
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.25
Performance To Date (EUR)
Top 10 Holdings
3.5%
3.3%
3.2%
2.8%
2.8%
2.6%
2.5%
2.3%
2.3%
2.3%
Major Sector Breakdown*
Financials
50.5%
Consumer Staples
12.3%
Consumer Discretionary
11.2%
Communications
7.2%
Information Technology
4.1%

Funds
3.8%
Maturity Buckets*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
89.9%
10.1%
Asset Allocation*
Performance History (EUR)*
YTD
-0.14%
2022
-4.30%
2021
1.07%
2020
-1.05%
2019
3.37%
Annualised Since Inception**
-0.18%
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.
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 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 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 core prices remained remarkably elevated, higher than levels policy makers would have desired. Notably, core inflation has in March rose to 5.7% from 5.6% 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 April, the Malta High Income Fund registered a gain of 0.58% for the month, underperforming its internally compared benchmark which registered a positive performance of 1.72%. This, following the upward moves witnessed within the equity space which notably outperformed fixed income names.
Market and investment outlook
Moving forward, the Managers believe in maintaining a somewhat cautious stance given the current economic climate, albeit showing signs of improvement. Sustained price pressures, which may have well filtered through services, may continue to leave a negative impact on the Maltese economy, possibly hindering consumption and the forecasted pace of recovery. Such pace remains highly dependent on inbounds of tourism. A record number of visitors in Q1 2023 convey encouraging signs for the upcoming peak season. This, as the appetite for travel, remains.
-
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)*
-0.88%
*View Performance History below
Inception Date: 10 Apr 2018
ISIN: MT7000022281
Bloomberg Ticker: CCMIFAB MV
Entry Charge: up to 2.50%
Total Expense Ratio: 1.68%
Exit Charge: None
Distribution Yield (%): 3.05
Underlying Yield (%): 2.88
Distribution: N/A
Total Net Assets: €21.67
Month end NAV in EUR: 88.63
Number of Holdings: 78
Auditors: Deloitte Malta
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
% of Top 10 Holdings: 38.25
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
PG plc3.5%
Harvest Technology plc3.3%
4% Central Business Centres 20333.2%
3.9% Browns Pharma 20312.8%
3.5% GO plc 20312.8%
4.35% SD Finance plc 20272.6%
4.65% Smartcare Finance plc 20312.5%
RS2 Software plc2.3%
3.75% Tum Finance 20292.3%
GO plc2.3%
Top Holdings by Country*
Malta89.9%
Other10.1%
*including exposures to CIS and CashMajor Sector Breakdown*
Financials
50.5%
Consumer Staples
12.3%
Consumer Discretionary
11.2%
Communications
7.2%
Information Technology
4.1%
Funds
3.8%
*including exposures to CISAsset Allocation*
Cash 5.5%Bonds 69.5%Equities 25.1%* including exposures to CISMaturity Buckets*
24.1%0-5 Years37.4%5-10 Years4.8%10 Years+*based on the Next Call DatePerformance History (EUR)*
YTD
-0.14%
2022
-4.30%
2021
1.07%
2020
-1.05%
2019
3.37%
Annualised Since Inception**
-0.18%
*The Distributor Share Class (Class B) 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 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 core prices remained remarkably elevated, higher than levels policy makers would have desired. Notably, core inflation has in March rose to 5.7% from 5.6% 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 April, the Malta High Income Fund registered a gain of 0.58% for the month, underperforming its internally compared benchmark which registered a positive performance of 1.72%. This, following the upward moves witnessed within the equity space which notably outperformed fixed income names.
Market and investment outlook
Moving forward, the Managers believe in maintaining a somewhat cautious stance given the current economic climate, albeit showing signs of improvement. Sustained price pressures, which may have well filtered through services, may continue to leave a negative impact on the Maltese economy, possibly hindering consumption and the forecasted pace of recovery. Such pace remains highly dependent on inbounds of tourism. A record number of visitors in Q1 2023 convey encouraging signs for the upcoming peak season. This, as the appetite for travel, remains.