• 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

February 2019 Commentary

In line with the trajectory of risky assets, Emerging Market (EM) economies have picked up performance at the beginning of the year and have continued to throughout February. The Trade War tensions are slowly diminishing ever since President Trump and President Xi seem to be meeting and agreeing to terms they both agree on. In addition to, the Fed’s dovish stance remains a benefit to EM currencies as they remain within their current levels and bond prices continue to see a boost. Should current market conditions remain, EMs should continue at this pace. That being said, we are still seeing soft figures from China; factory activity reached a three-year low in February as export orders fell at the fastest pace since the global financial crisis – more evidence of an economy facing weak domestic demand. Overall, EMs are living up to a positive performance.

The Investment Managers (IMs) believe that emerging market valuations are attractive and the portfolio is well positioned to benefit from a trade war solution. Indeed, the portfolio is currently outperforming the market as it benefits from names that are boosting our valuation. The Manager still believes that there remains value within EMs and in this regard, cash will be reduced accordingly in line with opportunities. In line with the viewed attractive valuation preposition by the Managers, in February exposures were increased in Petrobras, on the back of a continuous improvement in their financials and the Argentinean airport operator, on sustained operational numbers.

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 $10.8 m
    Number of Holdings 38
    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 15.4
    China 12.9
    Russia 11.2
    Malta (incl. cash) 10.4
    Turkey 8.9
    Indonesia 6.9
    Mexico 5.5
    Spain 4.3
    United States 3.8
    Netherlands 3.6

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 72.6
    5 – 10 years 11.2
    10 years+ 3.7

    * based on the Next Call Date

    Performance History

    Calendar Year Performance  YTD 2018  2017*** 2016 Since
    Inception***
    Share Class C – Total Return 3.55 -9.09 -1.24 - -7.03
    Total Return 1-

    month

    3-

    month

    6-

    month

    9-

    month

    12-

    month

    Share Class C – Total Return 0.80 4.06 1.90  -0.42  -4.59

    * 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 4.2
    6.625% Tupy Overseas 2024 3.8
    7.25% JBS Investments 2024 3.8
    6.90% Yestar Healthcare 2021 3.8
    6.50% Global Ports 2023 3.8
    4.95% Gazprom Capital 2022 3.7
    6.375% Banco Santander 2167 3.7
    8.125% Global Liman 2021 3.6
    4.95% Veon Holdings 2024 3.6
    6.50% Minerva 2026 3.6

    By Credit Rating *

    Credit Rating %
    Investment Grade 16.8
    BB 48.2
    B 22.2
    CCC+ 1.8
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 91.8
    EUR 8.2
    TRY 0.0

    Asset Allocation

    Currency %
    Cash 10.4
    Bonds (incl. ETFs) 87.5
    Equities (incl. ETFs) 2.2

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 22.1
    Financial 15.2
    Communications 12.7
    Consumer, Cyclical 11.0
    Energy 9.9
    Government 9.3
    Basic Materials 5.6
    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 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