• Emerging Market Bond Fund-04

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 Calamatta Cuschieri Funds 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 2018 Commentary

Reflecting on the performance in credit markets for the month of August, one should not be surprised that the asset class per se continues to be conditioned by both monetary decisions, and the political turmoil, which seems to be non-exhaustive. The month of August was characterized by the asset class per se trading sideways as investors were partially comforted by the trade agreement reached between Mexico and the U.S., in addition to some hope that the China-U.S. trade war issues might pave the way for more promising discussions.

In Emerging markets (EM), the month of August was characterized by China’s weaker economic print- a marginal year-on-year slowdown to 6.7% in the second quarter, although more recent data produced pointed to further weakness in Q3. In addition, the ongoing external concerns, stemming from the escalating trade dispute with the US, the Chinese government announced a range of targeted economic support measures. Furthermore, the strengthening in the US dollar continued to be a drag on emerging markets, despite the notable improvement in fundamentals when compared to the tapering tantrum in 2013. Turkey was another drag for the asset class per se, when considering that major EM benchmarks constitute circa 7 percent exposure. Turkey saw a sharp selloff in its currency amid rising geopolitical tensions with the US and concern over domestic policy. On the flip side, some positive news for global markets was the agreement of a bilateral trade deal between Mexico and the US in late August. On a year-to-date basis the asset class is down 4.3 percent following a very strong performance of 8.8 percent in 2017.

It is no secret that from a monetary tightening perspective, credit markets dislike interest rate hikes and this is why we believe that the asset class will suffer in the short-term. In this regard, is it also imperative to be very selective within the fixed-income asset class. However, we still believe that the recent volatility is at times overshooting when considering that the market is being very sensitive not to decisions or rumors, but mainly to tweets.

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 Calamatta Cuschieri Fund Services Ltd.
    Auditors Deloitte Malta
    Legal Advisors Ganado Advocates
    Launch Date 02 November 2017
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Daily
    Fund Size $10.3 mn
    Number of Holdings 37
    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) 14.2
    China 13.7
    Brazil 12.6
    Russia 11.5
    Turkey 7.7
    Indonesia 6.7
    Mexico 5.8
    Spain 4.9
    United States 3.9
    Netherlands 3.7

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 60.4
    5 – 10 years 21.2
    10 years+ 2.0

    * based on the Next Call Date

    Performance History

    Calendar Year Performance  YTD 2017 *** 2016 2015 Since
    Inception ***
    Share Class C – Total Return -7.61 -1.24 - - -8.76
    Total Return 1-month 3-month 6-month 9-month
    Share Class C – Total Return -1.78 -2.27 -6.36  -7.84

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

  • Historical Performance to Date

    Top 10 Exposures %

    Exposure %
    6.90% Yestar Healthcare 2021 4.3
    6.625% Tupy Overseas 2024 3.9
    7.25% JBS 2024 3.9
    6.50% Global Ports 2023 3.9
    4.95% Gazprom 2022 3.9
    6.375% Banco Santander 2167 3.8
    4.95% Veon Holdings 2024 3.7
    8.125% Global Liman 2021 3.6
    6.50% Minerva 2026 3.5
    6.95% Modernland 2024 3.3

    By Credit Rating *

    Credit Rating %
    Investment Grade 19.2
    BB 39.6
    B 26.3
    CCC+ 1.9
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 90.4
    EUR 9.6
    TRY 0.0

    Asset Allocation

    Currency %
    Cash 14.2
    Bonds (incl. ETFs) 83.6
    Equities (incl. ETFs) 2.2

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 23.1
    Financial 15.5
    Communications 12.4
    Consumer, Cyclical 11.5
    Energy 9.0
    Government 6.8
    Basic Materials 5.6
    Industrial 1.1

    *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 Emerging Market Bond Fund is a sub fund of Calamatta Cuschieri Funds 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 CCFS PLC prospectus and KIID document, which may be obtained from CCIS offices. Issued by CCIS.
 
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 CC to any person to buy or sell any investment. CC 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 CC.
 
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