• em-bond-fund-eur-accumulator-institutional

EM Bond Fund EUR Accumulator Institutional

  • Investment Objectives

    The objective of the Sub-Fund is to endeavour to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of debt securities and other fixed-income or interest bearing securities.

    Key Features of the Fund

    The Fund aims to maximise the total level of return for investors through investment, primarily,but not solely in a diversified portfolio of Emerging Market Corporate fixed income securities and Emerging Market Government fixed income securities with maturities of 10 years or less, rated at the time of investment “Baa1” to “Caa1” by Moody’s or “BBB+” to “CCC+” by S&P, or in bonds determined to be of comparable quality by the Investment Manager. The Investment Manager may also invest up to 10% of the Net Assets of the Sub-Fund in unrated fixed income securities. The Investment Manager is expected to focus on Emerging Market fixed income securities, corporate and/or government, and seek to maintain an average credit quality of “B3” by Moody’s or “B-” by S&P, although issues may be rated lower or higher. The Investment Manager may also invest up to 15% of the Net Assets of the Sub-Fund in Emerging Market equities. The Investment Manager will not be targeting equities of a particular market capitalisation.

    Structure

    The Sub-Fund forms part of the CCFunds Sicav plc and operates under the UCITS structure which has become the gold standard for EU investment funds for retail investors. UCITS funds are ideal for retail investors as they have been specifically designed to ensure diversification and liquidity through distinct parameters, permitted asset classes and investment restrictions as set out in EU law.

    Management

    The Emerging Market Bond Fund is managed by a group of investment professionals at Calamatta Cuschieri Investment Management Limited who monitor market developments on a daily basis.

Overview

→ Investor Profile
→ Currencies Available
→ Dividend Payment
→ Monitoring and Pricing
→ Entry and Exit Fee
→ Minimum Investment
→ Fund Rules at a Glance
→ Other Information

Commentary

August 2020 Commentary

August continued to build on the previous month’s strong performance across most asset classes, with earnings season and vaccine hopes influencing market activity. However, much of the momentum originated from policy makers in both the US and Europe committing to further monetary and fiscal stimulus, reverberating positively throughout global markets.

Emerging markets were also further aided by the rally in commodities, including gold, which surged to a new all-time high of USD 2,068 per troy ounce during the month, before settling down at USD 1,974 at the end of the month. The precious metal has risen by more than 30 per cent in 2020, fuelled by safe haven demand amidst the pandemic and escalating US-Sino tensions, ultra-low or negative interest rates around the world and the weakening of the US Dollar – the dollar index has fallen to its lowest level since mid-2018.

In Asia, the number of daily new Covid cases rose in India, Indonesia, the Philippines and South Korea but declined in most other countries. In Latin America, the number of new cases remained high although the pace of increase slowed in Brazil, Mexico and Chile, while in the Middle-East and Africa, the number of reported new cases continued to decrease across most of the region. The more encouraging economic indicators outweighed virus concerns.

From the data front in the emerging market world, China reported stronger results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions earlier in the year. China’s Manufacturing PMI remained largely stable at 51.0 in August from July’s 51.1.

From the Latin America region, published economic data in Brazil marked a continued major improvement in activity. Notably, Manufacturing PMIs increased to 64.7 from 58.2 in July and similarly increasing to 49.5 from 42.5 for services, albeit being below expansion territory. TSouth American countries are considered further back in the recovery cycle, given that the emergence of the virus kicked-off late when compared to their North American and European counterparts.

In the month of July, the CC EMBF continued its resurgence, up 1.90% as credit spreads tightened in line with the wider risk-on approach by market participants. Going forward, the Manager will continue to assess the EM space scenario even on the basis of further monetary policy actions taken by Central Banks, which seem to follow the Fed’s easing stance, primarily by cutting interest rates.

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Emerging Market Bond Fund – Class E (Accumulator) – EUR
    Investment Manager Calamatta Cuschieri Investment Management Ltd
    Fund Advisor N/A
    Custodian Sparkasse Bank Malta p.l.c.
    Fund Administrator CC Fund Services (Malta) Limited.
    Auditors Deloitte Malta
    Legal Advisors Ganado Advocates
    Launch Date 02 November 2017
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Daily
    Fund Size $12.1 m
    Number of Holdings 40
    Initial Charge up to 2.50%
    Management Fee 0.65%
    Dividend Payment Dates N/A
    ISIN number MT7000026449
    Minimum Initial Investment €2,500
    Minimum Additional Investment €500

    Top 10 By Country*

    Country %
    Malta (incl. cash) 20.5
    Brazil 19.1
    China 12.0
    Russia 10.6
    Mexico 7.4
    Turkey 7.3
    Germany 4.9
    Netherlands 3.6
    Indonesia 3.1
    India 3.0

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 55.7
    5 – 10 years 16.9
    10 years+ 6.9

    * based on the Next Call Date

    Performance History **

    Calendar Year Performance  YTD 2019 2018 2017*** Since
    Inception ***
    Share Class C – Total Return -6.94 - - - -6.94
    Total Return 1-month 3-month 6-month 9-month 12-month
    Share Class C – Total Return 1.77 5.32 -5.21 - -

    * The EUR Accumulator Share Class (Class E) was launched on 06 February 2020.

  • Historical Performance to Date

    Top 10 Exposures %

    Exposure %
    iShares JPM EM Bond Fund 6.7
    6.50% Global Ports 2023 3.7
    4.95% Veon Holdings 2024 3.6
    4.95% Gazprom 2022 3.5
    5.45% Cemex 2029 3.4
    6.625% Tupy Overseas 2024 3.4
    5.8% Turkcell 2028 3.3
    6.625% NBM 2029 2.7
    5.299% Petrobras 2025 2.7
    3% Republic of Poland 2023 2.6

    By Credit Rating *

    Credit Rating %
    Investment Grade 18.8
    BB 40.5
    B 13.6
    CCC+ 4.8
    Less than CCC+ 1.8
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 92.6
    EUR 7.4
    TRY 0.0

    Asset Allocation

    Asset %
    Cash 13.8
    Bonds (incl. ETFs) 86.2
    Equities (incl. ETFs) 0.0

    Sector Breakdown*

    Sector %
    Sovereign 14.6
    Telecommunications 12.1
    Commercial Services 9.5
    Real Estate 8.9
    Oil & Gas 6.8
    Pharmaceuticals 5.6
    Auto Parts & Equipment 5.0
    Mining 3.0

    *excluding exposures to CIS

Legal Information

CALAMATTA CUSCHIERI INVESTMENT SERVICES (CCIS) IS A FOUNDING MEMBER OF THE MALTA STOCK EXCHANGE AND IS LICENSED TO CONDUCT INVESTMENT SERVICES IN MALTA BY THE MALTA FINANCIAL SERVICES AUTHORITY. THE CC EMERGING MARKET BOND FUND IS A SUB FUND OF CCFUNDS™ SICAV PLC AND IS AUTHORISED BY THE MFSA. PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE PERFORMANCE. THE VALUE OF THE INVESTMENT MAY RISE AS WELL AS FALL. INVESTORS MAY INCUR A SUBSCRIPTION CHARGE AND MAY BE SUBJECT TO TAX ON DISTRIBUTIONS. INVESTMENT SHOULD BE BASED ON THE CCFUNDS™ SICAV PLC PROSPECTUS AND KIID DOCUMENT, WHICH MAY BE OBTAINED FROM CCIS OFFICES. ISSUED BY CCIS.

PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE PERFORMANCE. THE VALUE OF THE INVESTMENTS INCLUDING CURRENCY FLUCTUATIONS, AND INCOME FROM THEM CAN GO DOWN AS WELL AS UP AND INVESTORS MAY NOT GET BACK THE FULL AMOUNT INVESTED.

THIS DOCUMENT IS PREPARED FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE INTERPRETED AS INVESTMENT ADVICE. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION BY CCIS TO ANY PERSON TO BUY OR SELL ANY INVESTMENT. CCIS HAS BASED THIS DOCUMENT ON INFORMATION OBTAINED FROM SOURCES IT BELIEVES TO BE RELIABLE BUT WHICH HAVE NOT BEEN INDEPENDENTLY VERIFIED. THIS DOCUMENT MAY NOT BE REPRODUCED EITHER IN WHOLE, OR IN PART, WITHOUT THE WRITTEN PERMISSION OF CCIS.

THIS IS NOT A CAPITAL GUARANTEED PRODUCT ACCORDINGLY THE VALUE OF YOUR INVESTMENT CAN GO DOWN AS WELL AS UP. INVESTORS SHOULD NOTE THAT THE PAYMENT OF DIVIDENDS HAS THE EFFECT OF REDUCING THE NAV PER SHARE.