• 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.

    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

January 2019 Commentary

Emerging Market (EM) economies throughout the year were conditioned namely by the geopolitical tensions vis-à-vis the trade war; tensions which pushed investors to re-allocate their assets into safer heavens. EM currencies in 2018 were the primarily driving force of risks within the region as investors opted for safer heavens such as the Japanese Yen and the U.S. dollar. The latter continued to put pressure on EM, which were harshly beaten to levels that weren’t seen since 2013. In January, due to a weakening dollar, which was conditioned by the Fed’s U-turn, EM saw a boost in bond prices and keep outperforming other asset classes. Should no political risk or rather specific risk emerge again, EMs should continue at this pace and credit stories, which were hit harsh in 2018, should outperform other regions. That being said, weak data keeps coming out of China – lower than expected inflation and weak manufacturing data for the second time in the same month. This reflects not only the impact of the Trade War but more so a domestic economic slowdown. Other EMs, specifically Turkey, Brazil, Indonesia and Russia have seen a magnified uplift in performance.

The Investment Managers (IMs) believe that emerging market valuations are attractive and the portfolio is well positioned to benefit from a trade war solution. Indeed, the portfolio benefited from the refinancing of Alam Sutera, the Indonesian property developer, which pushed the sector higher. In addition, other regions such as Brazil and Turkey continued to move higher. The Manager still believes that there is value within the region and in this regard cash will be reduced accordingly in line with opportunities.

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 $10.6 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 13.8
    China 13.0
    Russia 11.4
    Malta (incl. cash) 9.3
    Turkey 9.1
    Indonesia 6.9
    Germany 5.8
    Mexico 5.5
    Spain 4.4
    United States 3.9

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 75.1
    5 – 10 years 11.4
    10 years+ 2.0

    * based on the Next Call Date

    Performance History **

    Calendar Year Performance  YTD 2018 2017*** 2016 Since
    Inception***
    Share Class B – Total Return 3.08 -6.16 -0.22 - -3.48
    Total Return 1-month 3-month 6-month 9-month 12-month
    Share Class B – Total Return 3.08 3.40 0.95  -0.83  -3.99

    * 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 4.2
    6.625% Tupy Overseas 2024 3.9
    7.25% JBS Investments 2024 3.9
    6.90% Yestar Healthcare 2021 3.9
    6.50% Global Ports 2023 3.9
    4.95% Gazprom Capital 2022 3.8
    6.375% Banco Santander 2167 3.7
    4.95% Veon Holdings 2024 3.7
    8.125% Global Liman 2021 3.7
    6.50% Minerva 2026 3.6

    By Credit Rating *

    Credit Rating %
    Investment Grade 22.7
    BB 47.1
    B 21.1
    CCC+ 1.8
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 92.9
    EUR 7.1
    TRY 0.0

    Asset Allocation

    Currency %
    Cash 9.4
    Bonds (incl. ETFs) 88.5
    Equities (incl. ETFs) 2.1

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 22.4
    Financial 18.1
    Communications 12.8
    Consumer, Cyclical 11.2
    Energy 10.0
    Government 7.7
    Basic Materials 5.7
    Industrial 2.0

    *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