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Global Balanced Income Fund Accumulator

  • INVESTMENT OBJECTIVES

    The Fund seeks to provide stable, long-term capital appreciation by investing in a diversified portfolio of local and international bonds, equities and other income-generating assets. The Investment Manager shall diversify the assets of the Fund among different asset classes. The manager may invest in both Investment Grade and High Yield bonds rated at the time of investment at least “B-” by S&P, or in bonds determined to be of comparable quality, provided that the Fund may invest up 10% in non-rated bonds, whilst maintain an exposure to direct rated bonds of at least 25% of the value of the Fund. Investments in equities may include but are not limited to dividend-paying securities, equities, exchange traded funds as well as through the use of Collective Investment Schemes.

    Key Features of the Fund

    • Flexibility to invest in all regions around the world
    • Provide capital appreciation, stability and growth over the medium-to-long term
    • Flexibility to switch between different asset types (eg. Bonds / Equities / Money Market Instruments / ETFs / CIS / alternative securities) depending on market outlook
    • Investment Manager will base asset allocation decisions based on key current themes and best opportunities to generate return
    • Asset Allocation Diversification by Security Type, Credit Rating, Country, Sector and by Currency
    • Best of both worlds – lower volatility of bond market vs growth potential via equities
    • OPTIMAL INVESTMENT MIX depending on market conditions
    • Efficient and Effective strategy to be able to withstand periods of adverse market movements
    • FX exposures will be generally hedged, underlying investor will not be exposed to any FX risk

Overview

→ Why CC Global Balanced Income Fund?
→ Investor Profile
→ Currencies Available
→ Entry and exit Fee
→ Minimum Investment
→ Monitoring and Pricing
→ Ideal for Accumulation Schemes
→ Fund Rules at a Glance
→ Other Information

Commentary

September 2019 Commentary

The month of September turned out to be a positive month for equities. Despite ongoing economic growth concerns, investors reacted positively to fresh announcements of accommodative monetary policy decisions by the European Central Bank (ECB) and the US Federal Reserve (Fed). The Global Balanced income fund continued to improve its performance for the year adding a further 3.71 percent in September contributing to a total performance of 9.08 percent year-to-date.

Both the ECB and the Fed announced new measures to stimulate the flagging economy. In Europe, the European Central Bank (ECB) announced an interest rate cut of 10 basis points to -0.50 percent, and restarted quantitative easing with an asset purchase program (APP) of €20 billion per month. The ECB committed to the reinvestment of maturing securities under the APP for an extended period of time past the date when the key ECB interest rates starts increasing. Moreover, a two-tier system for reserve remuneration will be introduced to exempt the banks’ excess liquidity from a negative deposit rate.

Meanwhile, the U.S Federal Reserve cut its interest rates for the second time in over a decade. The Fed lowered the fed funds target rate by 25 basis points, to the range of 1.75 percent to 2.0 percent, over concerns that the uncertainty over the U.S-China trade war is slowing down the manufacturing sector and weighing on business confidence.

During the month of September, investors favoured the more cyclical sectors. The financial sector was the best performer on the month, followed by energy and materials. However, the more defensive sectors outperformed on a quarterly basis, including the utilities, real estate and consumer staples.

Global HY recorded a total return of +0.46 percent in the month of September, with gains being solely locked from the carry trade, as investors continue to be wary of the geopolitical tensions which are also being reflected in economic data. Given that Global HY holds weighting in EM debt, the latter mitigated the downside experienced in U.S. HY.

As we head into earnings season, the Investment Manager (IM) remains of the opinion that the names held within the fund have further to gain. Nonetheless, the IM remains cautious and continues to monitor the developments in the US China trade war, the Brexit saga and general economic conditions with the aim to adjust the Fund’s positioning to further benefit from market developments.

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Global Balanced Income Fund
    Investment Manager Calamatta Cuschieri Investment Management Ltd
    Fund Type UCITS
    Custodian Sparkasse Bank Malta p.l.c.
    Fund Administrator CC Fund Services (Malta) Limited.
    Auditors Deloitte Malta
    Legal Advisors Ganado Advocates
    Launch Date 1st September 2015
    Domicile Malta
    Dealing Frequency Weekly
    Initial Charge 2%
    Management Fee 1.25%
    Currency Euro (€)
    ISIN numbers EUR – MT7000014445
    Minimum Initial Investment EUR 2,500
    Minimum Additional Investment EUR 500
    Fund Size €6.9 mn
    Number of Holdings 39

    Performance History

    Calendar Year Performance YTD 2018* 2017 2016 Since
    Inception*
    Total Return 9.08 -15.14 8.67 1.58 3.30
    Calendar Year Performance 1 -month 3 – month 6 -month 9 -month
    Total Return 3.71 0.98  2.08  9.08

    *The Global Balanced Income Fund (Share Class B) was launched on 19 November 2018.

    Top By Country*

     Country %
    Germany 20.3
    France 17.3
    United States 10.0
    Netherlands 6.7
    Luxembourg 5.9
    Global 4.7
    Brazil 3.0
    Spain 2.9
    India 2.5

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0.0
    BB 10.0
    B 14.9
    Less than B- 0.0
    Not Rated 9.3

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    ASML NV 5.3
    BMIT Technologies 5.0
    iShares MSCI EM Asia 4.7
    Kering 4.3
    SAP SE 4.0
    iShares Eurostoxx 600 Oil&Gas 3.7
    iShares Core S&P500 3.2
    Lyxor EurStx600 Tech 3.2
    iShares Euro HY 3.1
    5.00% Nidda 2025 3.0

    Currency Allocation

    Currency %
    EUR 73.8
    USD 26.1
    GBP 0.1

    Asset Allocation*

    Asset %
    Cash 3.8
    Bonds 40.1
    Equities 56.1

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 13.3
    5 – 10 years 17.1
    10 years + 3.8

    Sector Breakdown

    Sector %
    ETFs 30.3
    Financial 14.5
    Technology 14.3
    Consumer, Cyclical 10.2
    Industrial 7.0
    Basic Materials 5.2
    Communications 3.7
    Consumer, Non-Cyclical 3.0
    Energy 3.0

Legal Information

This document has been issued by Calamatta Cuschieri Investment Services (“CCIS”). 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. 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. 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