• Emerging-Market-Bond-Fund-Nov-2019_WEB-BANNER-EURO--accumulator

EM Bond Fund EUR Accumulator

  • 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

December 2019 Commentary

With the December 15th deadline looming large, December, as expected, proved to be an eventful month on the political front. As anticipated, tensions between the U.S. and China significantly eased, when the two nations agreed a phase-one deal to ratchet down the trade war, this boosting confidence and lessening uncertainty across markets. The news came after 20 months of on-and-off negotiations and tariff escalations that unsettled markets and damped global economic growth.

From the data front in the emerging market world, China reported a drop in its leading indicators, specifically in the Manufacturing and the Services PMIs. China’s Manufacturing PMI fell to 51.5 in December from 51.8 in the previous month, amid a marginal rise in exports. Similarly, Services PMI fell to 52.5 from a seven-month high of 53.5. Albeit a slight drop in the growth rates envisaged in the previous month, purchasing activity rose for the sixth month in a row.

Meanwhile, in December, in a bid to further boost economic growth, and thus recover the country’s sluggish economy, Brazil’s Central Bank cut its Selic rate, for a fourth straight meeting, bringing borrowing costs to its lowest on record, at 4.5 percent, also leaving the door open for additional easing. Following Brazil’s Central Bank decision, S&P Global Ratings revised Brazil’s outlook to positive from stable, boosting sentiment and placing Latin America’s largest economy a step closer to its first sovereign credit rating upgrade since 2011.

In the month of December, EM credit posted a 1.7 percent gain as investors continued to seek higher returns through EM allocations following the announcement that a phase 1 deal would be signed in early 2020. The CC EMBF fund gained 1.5 percent in the month following the positive moves experienced in its underlying holdings, namely Brazilian credit stories that upheld their upward trend in prices. A trend, which kicked-off in the late 2018 following general elections won by Bolsanaro, which promised reforms and which indeed are being implemented. In the month, the Manager increased its exposure to the Chinese property market, specifically in Logan properties, which continues its improving credit trend boosted by its capability to register higher than expected sales.

EM HY credit should continue to perform well in 2020, as central banks within the EM region remain accommodative, while the ability of fiscal expansion within the EM region should be also supportive. The Manager will continue to seek pockets of value by also possibly, exploring the Frontier market region, with some interesting stories on its radar.

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Emerging Market Bond Fund – Class C (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 $12.3 m
    Number of Holdings 42
    Initial Charge up to 2.50%
    Management Fee 1.10%
    Dividend Payment Dates N/A
    ISIN number MT7000021242
    Minimum Initial Investment €2,500
    Minimum Additional Investment €500

    Top 10 By Country*

    Country %
    Brazil 18.5
    Malta (incl. cash) 17.2
    China 12.2
    Russia 10.3
    Turkey 8.1
    Indonesia 6.0
    Mexico 5.1
    Netherlands 3.5
    Argentina 2.9
    Germany 2.8

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 61.8
    5 – 10 years 14.0
    10 years+ 6.8

    * based on the Next Call Date

    Performance History **

    Calendar Year Performance  YTD 2018 2017 *** 2016 Since
    Inception ***
    Share Class C – Total Return 6.57 -9.09 -1.24 - -4.32
    Total Return 1-month 3-month 6-month 9-month 12-month
    Share Class C – Total Return 1.26 1.46 0.58 2.43 6.57

    * The EUR Accumulator Share Class (Class C) was launched on 03 November 2017.

  • Historical Performance to Date

    Top 10 Exposures %

    Exposure %
    5.299% Petrobras 2025 4.0
    6.50% Global Ports 2023 3.6
    4.95% Veon Holdings 2024 3.5
    4.95% Gazprom Capital 2022 3.4
    6.625% Tupy Overseas 2024 3.3
    8.125% Global Liman 2021 3.2
    6.90% Yestar Healthcare 2021 2.9
    6.95% Moderland 2024 2.9
    5.00% Nidda 2025 2.8
    6.625% NBM US Holdings 2029 2.6

    By Credit Rating *

    Credit Rating %
    Investment Grade 18.9
    BB 38.2
    B 24.7
    CCC+ 0.8
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 89.6
    EUR  10.4
    TRY 0.0

    Asset Allocation

    Asset Allocation %
    Cash 14.0
    Bonds (incl. ETFs) 83.9
    Equities (incl. ETFs) 2.1

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 19.1
    Government 11.8
    Financial 11.6
    Communication 10.3
    Energy 10.0
    Basic Materials 8.4
    Consumer, Cyclical 6.8
    Industrial 4.7

    *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.