• Emerging Market Bond Fund-02

EM Bond Fund USD 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

October 2018 Commentary

Emerging Markets (EM) continued to bear the brunt of the risk off mode witnessed across all credit markets, and all risky assets (including equities). As a matter of fact, all risky assets sold off during the month of October, and EM was not spared any of this negative sentiment and move in asset prices.

The month of October mirrored events, which characterised 2018 as a whole, especially for credit markets. U.S. High Yield markets declined by 1.61%; European High Yield Markets declined by 1.00%; Global Emerging Markets declined by 0.60%; and, resulted in a marked increase in risk aversion. Interest rates of European Sovereign Bonds declined marginally during October, with the total return on Malta Government Stocks, as registered by the CC Malta Government Bond Index being a positive 0.30%. Credit spreads kept widening on thin volumes. The U.S Dollar has fallen below the $1.14 level against the euro. Investment Grade Corporates in EUR and USD have been out of favour for quite some time now whilst the moves registered in equities, particularly since mid-October, have left investors gasping for some air. In all fairness, the last couple of trading sessions of the month did offer some respite but it little to tame investors’ wariness.

EM economies remain in good shape, but with the Dollar hovering below the $1.14 level, financing costs now appear to be pinching their pockets. On the positive side of things, after Brazil’s presidential election towards the end of month, the focus will turn to the composition of the government team and members’ speeches. Newly president elect, Jair Bolsonaro, has been recently forming his cabinet of ministers, and prospects to turn around the Brazilian economy seem to be shaping up pretty well, as sentiment around Brazilian names had ticked up notably over recent trading sessions.

The Investment Managers believe that the exodus seen within the asset class is an over-reaction, primarily when considering the fact that major EM economies are much better positioned than the taper tantrum period in 2013.

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Emerging Market Bond Fund – Class A (Accumulator) – USD
    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 USD ($)
    Dealing Frequency Daily
    Fund Size $10.1 M
    Number of Holdings 38
    Initial Charge up to 2.50%
    Management Fee 0.011%
    Dividend Payment Dates N/A
    ISIN number MT7000021226
    Minimum Initial Investment $3,000
    Minimum Additional Investment $500

    Top 10 By Country*

    Country %
    China 13.1
    Brazil 13.1
    Russia 11.8
    Malta (incl. cash) 10.9
    Turkey 8.2
    Indonesia 6.5
    Germany 6.2
    Mexico 5.8
    Spain 4.8
    United States 4.0

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 74.5
    5 – 10 years 10.5
    10 years+ 2.1

    * based on the Next Call Date

    Performance History

    Calendar Year Performance  YTD 2017 *** 2016 2015 Since
    Inception *
    Share Class A – Total Return -6.45 -0.21 - - -6.65
    Total Return 1-

    month

    3-

    month

    6-

    month

    9-

    month

    Share Class A – Total Return -1.83 -2.36  -4.09  -7.15

    * The USD Accumulator Share Class (Class A) was launched on 03 November 2017.

  • Performance History

    Top 10 Exposures %

    Exposure %
    6.90% Yestar Healthcare 2021 4.2
    6.50% Global Ports 2023 4.0
    6.625% Tupy Overseas 2024 4.0
    7.25% JBS Investments 2024 4.0
    4.95% Gazprom Capital 2022 4.0
    6.375% Banco Santander 2167 3.9
    8.125% Global Liman 2021 3.8
    4.95% Veon Holdings 2024 3.8
    6.50% Minerva 2026 3.7
    5.299% Petrobras 2025 3.3

    By Credit Rating *

    Credit Rating %
    Investment Grade 21.4
    BB 47.8
    B 20.1
    CCC+ 1.9
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 90.5
    EUR 9.5
    TRY 0.0

    Asset Allocation

    Currency %
    Cash 10.9
    Bonds (incl. ETFs) 87.1
    Equities (incl. ETFs) 2.0

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 23.2
    Financial 17.9
    Communications 13.2
    Consumer, Cyclical 11.7
    Energy 9.3
    Basic Materials 5.7
    Government 5.0
    Industrial 2.3

    *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