• 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

May 2020 Commentary

Risk assets have continued to rally throughout the month of May as the gradual re-opening of economies increased optimism for a V-shaped economic recovery from the virus induced turmoil. The strength of the asset price recovery continues to be buoyed by ongoing strong government policy and central bank interventions. That said, in our view, the propagation of the shock to financial markets due to the virus outbreak remains directly linked to the evolution of the virus and the dynamics of the containment measures.

Credit markets have seen healthier liquidity in secondary markets, as continued central bank support measures played their part coupled with stronger participation from market participants. The primary market increased pace throughout the month of May following a standstill month in March, as many corporates were comforted by central banks intervention which kept volatility low, while appetite in the primary re-emerged.

Emerging markets were also conditioned by the oil price collapse earlier in March, partly caused by the ongoing drop in demand caused by the economic contraction, in addition to supply cut disruptions brought about by OPEC members From the data front in the emerging market world, China reported mixed results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions in February. China’s Manufacturing PMI declined to 50.6 in May from April’s 50.8.

From Latin America, published economic data in Brazil marked a slight improvement in activity. Notably, Manufacturing PMIs increased to 38.3 from 36.0 in April and similarly increasing to 27.6 from 27.4 for services, highlighting a slight increase in activity, however not to the extent of other continents as the country continues to struggle with the spread of the virus. Together with other countries such as Mexico, Brazil continue to report increasing daily deaths, therefore are considered further back in the cycle, behind their peak.

In the month of May, the CC EMBF continued its resurgence, up 3.86% 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 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 $11.3 m
    Number of Holdings 39
    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 %
    Malta (incl. cash) 21.2
    Brazil 18.7
    China 12.4
    Russia 11.1
    Turkey 9.61
    Mexico 7.5
    Indonesia 3.9
    Netherlands 3.8
    Germany 2.9
    Poland 2.8

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 58.2
    5 – 10 years 16
    10 years+ 7.5

    * based on the Next Call Date

    Performance History **

    Calendar Year Performance  YTD 2019 2018 2017*** Since
    Inception ***
    Share Class C – Total Return -10.89 6.57 -9.09 -1.24 -14.74
    Total Return 1-month 3-month 6-month 9-month 12-month
    Share Class C – Total Return 3.77 -9.22 -9.77 -9.34 -8.70

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

  • Historical Performance to Date

    Top 10 Exposures %

    Exposure %
    iShares JPM EM Bond Fund 6.8
    6.50% Global Ports 2023 3.8
    4.95% Veon Holdings 2024 3.8
    4.95% Gazprom 2022 3.8
    6.625% Tupy Overseas 2024 3.5
    5.8% Turkcell 2028 3.4
    5.45% Cemex 2029 3.3
    5% Nidda BondCo 2025 2.9
    3% Republic of Poland 2023 2.8
    6.9% Yestar Healthcare 2021 2.7

    By Credit Rating *

    Credit Rating %
    Investment Grade 19.4
    BB 40.1
    B 17.8
    CCC+ 4.4
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 89.8
    EUR 10.2
    TRY 0.0

    Asset Allocation

    Asset %
    Cash 12.7
    Bonds (incl. ETFs) 87.3
    Equities (incl. ETFs) 0.0

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 19.5
    Communications 12.6
    Financial 10.2
    Government 10.1
    Energy 8.9
    Consumer, Cyclical 7.8
    Basic Materials 7.7
    Industrial 3.3

    *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.