• Emerging Market Bond Fund-01

EM Bond Fund USD Distributor

  • 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.


    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.


    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.


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→ Currencies Available
→ Dividend Payment
→ Monitoring and Pricing
→ Entry and Exit Fee
→ Minimum Investment
→ Fund Rules at a Glance
→ Other Information


February 2018 Commentary

Over the past 12 months or so, emerging market credit has been the clear winner within the fixed income space, with the performance witnessed in EM bonds very difficult to ignore, and even more so, harder not to participate for an investor not to be participating in. Emerging markets have offered a pick-up in yield and spread terms on a like for like basis in comparison to similar rated and dated High yield issuers, and with a flat yield curve in developed economies, monies are expected to continue to flow into emerging market credit.

So to have witnessed the volatility and sharp correction registered in both emerging market equity and bond markets for some came as a huge surprise. Just putting things into perspective, after having rallied by more than 5% in January, global equity markets sold off quickly – on Monday, February 5th, the S&P 500 fell by 4.1%, its biggest one-day fall since 2011, dragging global equities lower and yields markedly higher.

The sell-off that has defined February can be explained by a rapid change in investor sentiment over new concerns that the Fed will tighten monetary policy faster than what was anticipated in response to signs of faster inflation, which can be damaging to growth and earnings. The rally in bond yields followed a report showing real wages had climbed 2.9% over the last year as well as a statement by the Fed that they expected inflation to rise in the year ahead. Both factors have resulted in markets to drive long-term bond yields to their highest levels in four years.

There are differing views on market direction; one school of thought suggests that over the near-term markets could continue to see selling pressure as some investors seek to crystallise gains generated over this bull market. Others believe that with strong expected earnings growth and more attractive valuations investors will dip back in and buy equities and emerging market credit once again.

The rate of inflation and how central banks respond to this will dictate where equity prices and interest rates will end the year. Should investors continue to see a goldilocks economy of solid economic growth, improving corporate earnings and stable inflation at the 2% level, EM credit could remain well supported.

As we head towards the half way mark of the first quarter of 2018, we should continue to see a relatively stable momentum within the bond market, as investors should hold tight to the carry trade. Undoubtedly, monetary tightening is one of the elements to look at as well as movement in external currencies. However, in the absence of any marked systematic shocks, we should continue to generate returns through interest coupons. Do not expect much price appreciation, if any. That said, there will always be value in bond markets.

Fact Sheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Emerging Market Bond Fund – Class B (Distributor) – 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 -
    Number of Holdings -
    Initial Charge up to 2.50%
    Management Fee 0.011%
    Dividend Payment Dates 31 March – 30 September
    ISIN number MT7000021234
    Minimum Initial Investment $3,000
    Minimum Additional Investment $500

    Top 10 By Country*

    Country %
    China 15.2
    Russia 11.7
    Malta (incl. cash) 11.5
    Brazil 10.7
    Germany 8.7
    Indonesia 6.8
    Turkey 5.8
    Mexico 4.6
    Netherlands 4.5
    Supranationals 4.2

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 59.8
    5 – 10 years 25.6
    10 years+ 0.0

    * based on the Next Call Date

    Performance History **

    Calendar Year Performance  YTD 2017 *** 2016 2015 Since
    Inception ***
    Share Class B – Total Return -0.83 -0.22 - - -1.05
    Total Return 1-month 3-month 6-month 9-month
    Share Class B – Total Return -1.57 -0.68  -  -

    * 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 USD Distributor Share Class (Class B) was launched on 03 November 2017.

  • Historical Performance to Date *

    Top 10 Exposures %

    Exposure %
    6.50% Global Ports 2023 4.8
    4.95% Gazprom 2022 4.7
    6.90% Yestar 2021 4.6
    1.375% KFW 2018 4.5
    4.95% Veon Holdings 2024 4.5
    5.125% Country Garden 2025 4.4
    5.00% Nidda Bondco 2025 4.1
    5.299% Petrobras 2025 3.9
    3.00% Poland 2023 3.4
    4.75% Altice 2028 2.5

    By Credit Rating *

    Credit Rating %
    Investment Grade 40.7
    BB 28.7
    B 24.0
    CCC+ 0.0
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 90.1
    EUR 8.0
    TRY 1.9

    Asset Allocation

    Currency %
    Cash 11.5
    Bonds (incl. ETFs) 85.5
    Equities (incl. ETFs) 3.0

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 20.8
    Financial 18.3
    Communications 13.9
    Government 10.1
    Energy 8.6
    Basic Materials 6.9
    Consumer, Cyclical 6.7
    Industrial 1.3

    *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.