• Italian_Emerging Market Bond Fund_EMBF_April 2019-01

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.

    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 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

May 2019 Commentary

May proved to be a negative month for risky assets, the first month so far this year, and Emerging markets were no exception to that. As liquidity dried up, Global Emerging Markets were down 0.15 per cent (much lower that the negative returns European HY and U.S HY faced).

The on-going Trade War uncertainties created higher volatility in the markets once again, especially due to the threatening of higher tariffs. That being said, emerging markets were more resilient to these market conditions. The reason being that China’s economy has seen boosted economic figures unlike the U.S. Moreover, Indonesia, Turkey and Brazil performed relatively well in the midst of the volatility.

That being said, the euphoria seen in the first three months of the year seemingly dissipated in May. The depreciation in the US Dollar during the month had its fair impact on spreads. That said EM still traded relatively well when compared to its peers.

With markets now more than ever expecting a long pause in central bank activity, or even possibly rate cuts at best, this would possibly be seen as a catalyst for EM currencies. In fact, this is one of the reasons why EM, in the month of May, was more resilient. This bodes well for EM economies and credit as economic conditions are still favourable for EM corporate debt.

The Investment Managers (IMs) believe that emerging market valuations are attractive amidst ongoing uncertainties as they showed the most resilience. That being said, should a trade war agreement be reached, the portfolio is well positioned to benefit from the higher beta exposures, namely Indonesia and China.

The Manager still believes EM offers value based on fundamentals. That said, market headwinds might influence valuations negatively in the short-term.

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 CC Fund Services (Malta) Limited.
    Auditors Deloitte Malta
    Legal Advisors Ganado Advocates
    Launch Date 02 November 2017
    Domicile Malta
    Currency USD ($)
    Dealing Frequency Daily
    Fund Size $10.9 M
    Number of Holdings 38
    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 %
    Brazil 15.5
    China 13.0
    Malta (incl. cash) 12.2
    Russia 11.3
    Turkey 8.6
    Indonesia 6.9
    Mexico 5.5
    United States 3.8
    Netherlands 3.7
    Germany 3.0

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 72.7
    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 B – Total Return 5.58 -6.16 -0.22 - -1.14
    Total Return 1-month 3-month 6-month 9-month 12-month
    Share Class B – Total Return -0.28 1.44 6.41 5.05 3.41

    * 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 %
    5.299% Petrobras 2025 4.3
    6.90% Yestar Healthcare 2021 3.9
    6.50% Global Ports 2023 3.8
    6.625% Tupy Overseas 2024 3.8
    4.95% Gazprom Capital 2022 3.8
    7.25% JBS 2024 3.8
    4.95% Veon Holdings 2024 3.7
    6.50% Minerva 2026 3.6
    8.125% Global Liman 2021 3.6
    6.95% Moderland 2024 3.4

    By Credit Rating *

    Credit Rating %
    Investment Grade 17.1
    BB 46.4
    B 21.9
    CCC+ 1.8
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 93.9
    EUR 6.1
    TRY 0.0

    Asset Allocation

    Currency %
    Cash 12.2
    Bonds (incl. ETFs) 85.8
    Equities (incl. ETFs) 2.0

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 22.0
    Communications 14.4
    Financials 11.4
    Consumer, Cyclical 11.2
    Energy 10.1
    Government 9.3
    Basic Materials 5.6
    Industrial 3.2

    *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.