Managed Fund Portfolio

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Why invest in Managed Fund Portfolio (MFP)?

Managed Fund Portfolios (MFPs) are unique investment vehicles, managed by our in-house team of experienced Investment Managers. Our MFPs aim to maximise growth and return possibilities for investors, given the objectives and risk limitations of our various strategies available.

Investing in our MFPs will provide you with added comfort in knowing that your money is being managed by Investment professionals. Furthermore, our range of strategies provide you with the options to generate income, capital growth or both.

Our selection of funds exposes your investment to a diversified strategy, thoroughly analysed, selected, and monitored by the management team. When in need of additional support or assistance with your investments, you can also receive personalised meetings with the investment management team via your financial advisor.

Choosing our MFPs provides you with exposure to multiple fund houses, as opposed to one fund house when alternatively investing directly into a mutual fund.

A year that vindicates active management as a tool to manage portfolio strategies, limit downside and monitor overall performance variability

The premise underpinning the MFP strategies center on providing an active management service that manages single-fund exposure, as well as, the overall asset allocation. Effectively, this is a streamlined service similar to a discretionary portfolio management service which is usually only available to high net worth investors. In view of this, MFP investors benefit from a professional team which is focused on optimizing the overall composition of each strategy. The aim is to enhance returns, whilst at the same time reducing volatility in returns. In the field of finance, the quintessential focus relates to the inter-relationship between investment returns and risk. Investment returns are mostly explained by the risks borne by investors making them dependent on each other.

Investors tend to focus on returns, however, neglecting the underlying price volatility for an investment strategy. During 2020, our team focused on delivering satisfactory returns, albeit ensuring a reasonable level of risk in line with market and economic conditions. The added value principally resides on providing timely and rational decision making for every MFP strategy. In times of distress as exemplified in 2020, markets tend to sway away from efficiency, in that, fundamentally sound investments are oversold which provides opportunities for long term investors. This was the thesis during the course of 2020 for the overall management conducted throughout all three strategies.

Read the full report here

Investment Management Process

Our investment ideas are reviewed on an ongoing basis and reflect the continuous market opportunities that present themselves.

Once one or multiple opportunities are identified, our management team conducts thorough research on the market, industry and underlying holdings of mutual fund selections. A decision is then made to include one or more products from the selection to construct or rebalance our respective range of strategies. Furthermore, an analysis of asset correlations with other strategy holdings and allocation weightings are also conducted by the management team.

Our MFP strategies are monitored on an ongoing basis with monthly re balancing of each strategy conducted where necessary.

MFP key facts & fee structure

  • Available in 3 types strategies: Conservative Strategy, Balance Strategy, Equity strategy
  • Underlying holdings must be UCITS funds
  • Underlying funds to be invested in distributor/accumulator share classes according to MFP strategy
  • Rebalancing occurrence in-line with market conditions
  • Competitive underlying charges

 

Investment strategies

 

1) Conservative strategy – 2.85%* (5 Year Annualised Performance)

The Conservative strategy is the most cautious approach for investment returns. Investing in the Conservative MFP will provide you with access to a diversified selection of mutual funds sourced and picked by the Investment management team. This strategy is best suitable for Investors with a preference for Income and capital preservation and investors that have a minimum of 3 year investment time horizon.

Download the conservative strategy factsheet here.

Investment Objective:

The Conservative Strategy invests primarily in money market funds and bond funds. The selection process is such that a minimum of 30% of the MFP Conservative Strategy is invested in investment grade bond funds while a maximum of 20% may be invested in non-investment grade bond funds. The Strategy also allows for a maximum allocation of 10% to equity funds and 40% in money market funds, depending on the general investment outlook applicable at the time.

The Conservative Strategy is offered only in EUR, although any underlying equity funds may have some limited exposure to US dollars. This Strategy shall distribute all income earned on its underlying investments after accounting for the semi-annual payment of the Management Fee. Clients may opt for semi-annual or annual distributions.

Calamatta Cuschieri primarily takes into account the global interest rate outlook in its selection of securities and funds. Accordingly, the investment manager will manage the strategy’s bond duration and credit risk.

conservative_mfp

2) Balanced Strategy – 4.85%* (5 Year Annualised Performance)

The Balanced strategy has a higher potential for returns, given the equity feature of the strategy. Investing in the Balanced MFP will provide you with access to a diversified selection of bonds and equities positions via mutual funds sourced and picked by the management team. This strategy is best suitable for Investors with a longer term Investment horizon to the Income Strategy.

Download the balanced strategy factsheet here.

Investment Objective:

The Balanced Strategy invests in a mixture of money market funds, bond funds and equity funds. The Strategy allows the Investment Managers a high degree of flexibility to shift between different asset classes, depending on market circumstances. The selection process is such that a pre-set maximum is set for each individual asset class while the Investment Managers may opt instead not to take any exposure at all to a particular asset class, subject to always maintaining a 10% minimum exposure to investment grade bond funds.

The Balanced Strategy is offered only in EUR although any underlying equity funds may have some limited exposure to US dollars. This Strategy shall distribute all the income earned on its underlying investments after accounting for the semi-annual payment of the Management Fee. Clients may opt for semi-annual or annual distributions.

In the selection of bond positions, Calamatta Cuschieri will consider duration and credit risk.

In its selection of equity positions Calamatta Cuschieri will manage the allocation of equities to different regions and/or sectors.

balanced_mfp

3) Growth strategy – 6.66%* (5 Year Annualised Performance)

The Equity strategy has the highest potential for returns and the highest risk entailed of our three strategies. Investing in the Equity MFP will provide you with access to a diversified selection of equity positions via mutual funds sourced and picked by the management team. This strategy is best suitable for Investors with a Long term Investment horizon.

Download the growth strategy factsheet here.

Investment Objective:

The Growth Strategy is primarily designed towards a higher investment in equity funds. Nonetheless, the Strategy still allows the Investment Managers a high degree of flexibility to shift between the different asset classes, depending on market circumstances. The selection process is such that a maximum of 90% may be invested in equity funds but at the same time it also allows a maximum of 90% to be invested in money market funds, investment grade bond funds and high yield funds combined, depending on the views of the Investment Managers at any particular point in time.

The Growth Strategy is offered in EUR although the underlying equity funds may have some exposure to US dollars. This Strategy shall not distribute any income earned on its underlying investments.

In its selection of equity positions Calamatta Cuschieri will manage the allocation of equities to different regions and/or sectors.

growth_mfp

 

Book an Appointment Today

Contact us on +356 25 688 688 or via [email protected] and we will schedule an appointment for you in-person at one of our 5 branches in Malta or over a phone/video call.

 


*Quoted return percentage is annual average for a five year period starting 30.06.2015 up to 30.06.2020. Please note this is a BACK TESTED SIMULATED PERFORMANCE. For any back-tested portfolio performance the simulated past performance is based on the actual past performance of one or more investments or financial indices** which are the same as, or underlie, the investment concerned.

** Financial Indices Used (Various weighting apply in line with the different strategies):

BXIIBEU0 Index – Barclays Benchmark Overnight EUR Cash Index
LECPTREU Index – Bloomberg Barclays Euro Aggregate Corporate TR
LP02TREU Index – Bloomberg Barclays Pan-European High Yield (Euro) TR
SPXT Index – S&P 500 Index
SX5T Index – Euro Stoxx 50 Index

Any financial performance figures refer to the past and that past performance is not a reliable indicator of or forms a guarantee for future results.

The Managed Fund Portfolio is a discretionary portfolio management service provided by Calamatta Cuschieri Investment Services Limited (“CCIS”). CCIS delegated the investment management of discretionary portfolio management to Calamatta Cuschieri Investment Management Ltd (“CCIM”). The annualised rate is an indication of the average growth of the investment over one year. The performance figures refer to the past and past performance is not a guarantee of future performance nor a reliable guide to future performance. The value of the investment may go down as well as up and currency fluctuations of the underlying funds may affect the value of the investment. An initial charge applies at the time of placing the investment and the management fee that applies has an impact on the investment return. Approved and issued by Calamatta Cuschieri Investment Management Limited, Ewropa Business Centre, Triq Dun Karm, Birkirkara BKR 9034. CCIM and CCIS are licensed to conduct Investment Services in Malta by the Malta Financial Services Authority under the Investment Services Act. Investments in the MPF is subject to the Terms and Conditions which are available from CCIS upon request.