• 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

June 2018 Commentary

May was a turbulent month for credit markets. Italian woes, US/North-Korea geopolitical tensions, trade wars, a rallying US dollar, volatility in Turkey notably as the Turkish Lira declined markedly. Developed markets were in disarray for the better part of the month, and Emerging Market credit fell victim to happenings in the developed world. The jitters felt in global markets had more than a ripple effect on emerging markets, as weakness crept in a strong way.

In the present of unfriendly market conditions and risk off mode, emerging market central banks have either postponed interest rate cuts (such as Brazil) or else hiked rates (such as Argentina and Turkey). Structurally and fundamentally, the emerging market story remains intact. Companies and central governments alike remain in a better position than they were 18-24 months ago, but May saw their financing costs sky-rocket with the strengthening dollar against their respective domestic currencies. In theory, a stronger USD decreases emerging markets capital flows, reduces commodity prices, weakens their currencies and results in potential sovereign rating downgrades.

However, long-term prospects still look positive. EM fundamentals look in better shape as larger foreign reserves and relatively contained inflation in most EM economies are expected to keep EM economies supported. In addition, when volatility subsides, investors are expected to single out the good EM countries from the weaker ones. While global factors impact EM in its entirety, diversity within EM is still abundant and the Investment Managers of the CC Emerging Market Bond Fund are viewing the recent sell off as an opportunity to identify those companies which have been sold-off more than what their valuations portray. The Managers still perceive that in such circumstances the bottom-up approach being adopted will be crucial in identifying value.

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 $9.7 mn
    Number of Holdings 37
    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
    Malta (incl. cash) 15.3
    China 13.8
    Russia 12.5
    Turkey 8.9
    Indonesia 5.4
    Mexico 4.0
    Netherlands 3.9
    Supranationals 3.5
    Germany 3.3

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 59.0
    5 – 10 years 21.2
    10 years+ 2.1

    * based on the Next Call Date

    Performance History **

    Calendar Year Performance  YTD 2017 *** 2016 2015 Since
    Inception ***
    Share Class B – Total Return -5.78 -0.22 - - -5.99
    Total Return 1-month 3-month 6-month 9-month
    Share Class B – Total Return -1.66 -5.01  -  -

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

  • Historical Performance to Date *

    Top 10 Exposures %

    Exposure %
    4.95% Gazprom 2022 4.2
    6.50% Global ports Fin 2023 4.2
    8.125% Global Liman 2021 4.1
    7.25% JBS 2024 4.0
    4.95% Veon Holdings 2024 3.9
    6.50% Minerva 2026 3.8
    6.90% Yestar Healthcare 2021 3.7
    5.299% Petrobras 2025 3.4
    5.00% Nidda 2025 3.3
    3.00% Poland 2023 3.1

    By Credit Rating *

    Credit Rating %
    Investment Grade 24.0
    BB 37.7
    B 23.7
    CCC+ 2.1
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 87.6
    EUR 11.0
    TRY 1.5

    Asset Allocation

    Currency %
    Cash 15.3
    Bonds (incl. ETFs) 82.3
    Equities (incl. ETFs) 2.4

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 23.5
    Communications 13.6
    Financial 12.5
    Energy 9.9
    Government 8.9
    Consumer, Cyclical 8.1
    Basic Materials 6.0
    Industrial 1.2

    *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 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