• Emerging Market Bond Fund-03

EM Bond Fund EUR Distributor

  • Investment Objectives

    The Fund aims to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of fixed-income investments.

    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 CC 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

March 2019 Commentary

In line with the trajectory of risky assets, Emerging Market (EM) economies have gained momentum and steam since the turn of the year, and have continued to throughout the first quarter. Meetings between President Trump and President Xi have led to positive triggers in the market as trade war talks are reaching a common ground. In addition to that, the Fed’s dovish stance remains a benefit to EM currencies as they remain within their current. Should current market conditions remain, EMs should continue at this pace.

Furthermore, the soft figures from China have made a U-turn to the positive; from factory activity reaching a three-year low in February, March proved to be a better month as strong manufacturing data was registered. China’s positive news was a boost to EMs and overall, EMs are living up to a positive performance. That being said, in March, Turkey experienced turmoil to its currency after Erdogan wanted to ban JP Morgan from writing up reports, this after analysts suggested that investors should short-sell the Turkish lira. To make matters worse, the political uncertainty increased as Erdogan was seen to lose in polls in Ankara and Istanbul. The Turkish lira was down 2.5% against the U.S Dollar after recovering losses, and this negative sentiment had a ripple effect on Turkish names in particular.

The Investment Managers (IMs) believe that emerging market valuations are attractive and the portfolio is well positioned to benefit from a trade war solution, particularly because there has been some stability in the USD, and there has not been much strengthening in the currency. Indeed, the portfolio is currently performing in line with the market as it benefits from names that are gives a boost to valuations. The Manager still believes that there remains value within EMs and in this regard, cash will be reduced accordingly in line with opportunities. In March, in line with the viewed attractive valuation preposition by the Managers, exposures were increased in the telecommunications sector.

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Emerging Market Bond Fund – Class D (Distributor) – 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 $10.8 m
    Number of Holdings 39
    Initial Charge up to 2.50%
    Management Fee 1.10%
    Dividend Payment Dates 31 March – 30 September
    ISIN number MT7000021259
    Minimum Initial Investment €2,500
    Minimum Additional Investment €500

    Top 10 By Country*

    Country %
    Brazil 15.6
    China 13.2
    Russia 11.3
    Turkey 8.7
    Malta (incl. cash) 7.4
    Indonesia 7.2
    Mexico 5.6
    Spain 4.3
    United States 3.8
    Netherlands 3.7

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 77.3
    5 – 10 years 9.3
    10 years+ 3.8

    * based on the Next Call Date

    Performance History **

    Calendar Year Performance  YTD 2018 2017 *** 2016 Since
    Inception ***
    Share Class D – Total Return 4.06 -9.25 -1.34 - -6.84
    Total Return 1-month 3-month 6-month 9-month 12-month
    Share Class D – Total Return 0.55 4.06 1.56 1.90  -3.56

    * Data in the chart does not include any dividends distributed since the Fund was launched on 03 November 2017.
    ** Performance figures are calculated using the Value Added Monthly Index “VAMI” principle. The VAMI calculates the total return gained by
    an investor from reinvestment of any dividends and additional interest gained through compounding.
    *** The EUR Distributor Share Class (Class D) was launched on 03 November 2017.

  • Historical Performance to Date *

    Top 10 Exposures %

    Exposure %
    5.299% Petrobras 2025 4.2
    6.90% Yestar Healthcare 2021 3.9
    6.625% Tupy Overseas 2024 3.8
    7.25% JBS Investments 2024 3.8
    6.50% Global Ports 2023 3.8
    4.95% Gazprom Capital 2022 3.8
    4.95% Veon Holdings 2024 3.7
    6.375% Banco Santander 2167 3.7
    6.50% Minerva 2026 3.7
    6.95% Modernland 2024 3.6

    By Credit Rating *

    Credit Rating %
    Investment Grade 17.1
    BB 50.0
    B 22.7
    CCC+ 1.8
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 91.7
    EUR 8.3
    TRY 0.0

    Asset Allocation

    Currency %
    Cash 7.4
    Bonds (incl. ETFs) 90.4
    Equities (incl. ETFs) 2.2

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 21.9
    Financial 15.6
    Communications 14.5
    Consumer, Cyclical 11.3
    Energy 10.0
    Government 9.3
    Basic Materials 5.7
    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 CCFundsSicav 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 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.