• EMBF-EUR-D

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

September 2020 Commentary

Asian markets outperformed its Western counterparts throughout the month of September, amid pandemic and economic fears, partly related to the different stages of the virus cycle the two sides of the world are currently in, excluding India. South America remains in the worst position, as virus cases continue to be significant.

In Asia, the number of daily new COVID cases rose in India, Indonesia, the Philippines, and South Korea but declined in most other countries. Asia’s strong performance has been helped by China’s remarkable success in containing the virus. This has allowed subway usage in China’s major cities to recover to only 10% below 2019 levels, compared with tube use in London, which remained down more than 60% even before the latest work-from-home measures were announced.

In Latin America, the number of new cases remained high although the pace of increase slowed in Brazil, Mexico and Chile, while in the Middle-East and Africa, the number of reported new cases continued to decrease across most of the region. The more encouraging economic indicator was outweighed by virus concerns.

From the data front in the emerging market world, China reported stronger results in its leading indicators, as business activity attempts to normalise, following widespread company shutdowns and travel restrictions earlier in the year. China’s Manufacturing PMI increased to 51.5 in September from August’s 51.0.

From the Latin America region, economic data in Brazil remained encouraging, with manufacturing PMIs reporting at 64.9 from 64.7.2 in August and similarly, services increasing to 50.4 from 49.5 for services, now entering expansion territory. South American countries are considered further back in the recovery cycle, given that the emergence of the virus kicked-off late when compared to their North American and European counterparts.

In the month of September, the CC EMBF fell in line with benchmarks, down 1.40% as the volatility translated into wider spreads in higher beta emerging market names. 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 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 $11.7 m
    Number of Holdings 40
    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 19.7
    Malta (incl. cash) 11.9
    China 11.5
    Russia 10.9
    Mexico 7.8
    Turkey 7.6
    Germany 5.0
    Netherlands 3.7
    Indonesia 3.4
    India 3.0

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 54.9
    5 – 10 years 19.1
    10 years+ 7.2

    * based on the Next Call Date

    Performance History **

    Calendar Year Performance  YTD 2019 2018 2017*** Since
    Inception ***
    Share Class D – Total Return -8.33 6.55 -9.25 -1.34 -12.55
    Total Return 1-month 3-month 6-month 9-month 12-month
    Share Class D – Total Return -1.57 1.79 11.38 -8.33 -7.01

    * 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 %
    iShares JPM EM Bond Fund 6.9
    6.50% Global Ports 2023 3.7
    4.95% Veon Holdings 2024 3.7
    4.95% Gazprom 2022 3.6
    5.45% Cemex 2029 3.5
    6.625% Tupy Overseas 2024 3.5
    5.8% Turkcell 2028 3.4
    6.625% NBM 2029 2.8
    5.299% Petrobras 2025 2.8
    3% Republic of Poland 2023 2.7

    By Credit Rating *

    Credit Rating %
    Investment Grade 19.6
    BB 41.7
    B 12.8
    CCC+ 1.8
    Less than CCC+ 5.2
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 93.0
    EUR 7.0
    Other 0.0

    Asset Allocation

    Asset %
    Cash 11.9
    Bonds (incl. ETFs) 881
    Equities (incl. ETFs) 0.0

    Sector Breakdown*

    Sector %
    Sovereign 14.9
    Telecommunications 12.5
    Real Estate 9.5
    Commercial Services 7.3
    Oil & Gas 7.1
    Auto Parts & Equipment 5.3
    Auto Manufacturers 1.8
    Oil & Gas Services 1.7

    *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.

*LAST 12 MONTHS DISTRIBUTION YIELD (01/04/2018 - 31/03/2019) SOURCE: CALAMATTA CUSCHIERI INVESTMENT MANAGEMENT. 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.