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Global Balanced Income Fund Accumulator


    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


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


September 2018 Commentary

The Euro Stoxx 50 (total return) index was flat for the month of September. Since the beginning of the year, there has been a material weakening in the eurozone manufacturing new export orders survey. Much of the weakness appears to have come from a sharp slowdown in exports to China. As the Chinese ease policy to support domestic demand this pressure could ease but a potential further deterioration in the external environment continues to pose a risk to eurozone growth.

The main risk is that weaker exports combined with higher oil prices feed into weaker domestic consumption, which has so far held up pretty well, supported by falling unemployment. Consumer confidence has fallen steadily since the start of the year, with a particularly sharp decline in France. Italian political developments and the pending approval of the new budget could also prove a source of volatility over the coming quarter, although Italian government bond yields have already risen materially since April.

In fixed income volatility and larger swings were registered as the level of uncertainty increased. And this was not brought about by wrong calls, bad market judgement, or any excessive market-related swings which we have become accustomed to. Uncertainty was of the highest order as there were a number of external market forces, beyond everyone, which were impossible to anticipate
let alone quantify, which had a massive impact on asset prices, a typical example of which was the infamous on going trade wars, which pretty much characterised (and continues to characterise) the better part of 2018. The effect of which was impacted asset classes across all the spectrum. And High Yield assets were not immune to this.

The most obvious near-term risk to the global economy is the potential for a further escalation in trade tariffs emanating from the US, and the subsequent retaliation. So far the US is imposing tariffs on about $250 billion of imports from China, and China has retaliated with tariffs on about $110 billion of US exports to China. The tariff rate is scheduled to increase in January if a deal cannot
be reached and an escalation to imposing tariffs on all of China’s exports to the US has been threatened. This trade conflict has already escalated further than we initially expected and we have limited visibility over how it will develop. The worst case scenario could prove a meaningful drag on global growth at the same time as pushing prices higher. However, the trade negotiations haven’t been all bad news, with a new NAFTA deal and a cooling in threats to impose tariffs on US auto imports, at least for now.

Moving into earning season, the Investment Manager (IM) has built positions in high conviction names. He is of the opinion that the stocks in the portfolio should continue generating alpha for the fund and improve upon performance as we head into the last quarter of 2018.


  • 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 Calamatta Cuschieri Fund Services Ltd.
    Auditors Deloitte Malta
    Legal Advisors Ganado Advocates
    Launch Date 1st September 2015
    Domicile Malta
    Dealing Frequency Weekly
    Initial Charge from 0% up to 2.5%
    Management Fee 1.25%
    Currency Euro (€)
    ISIN numbers EUR – MT7000014445
    Minimum Initial Investment EUR 2,500
    Minimum Additional Investment EUR 500
    Fund Size €6.4 mn
    Number of Holdings 37

    Performance History

    Calendar Year Performance YTD 2017 2016 2015 2014 Since
    Inception *
    Total Return -4.30 8.67 1.58 - - 6.80
    Calendar Year Performance 1 -month 3 -month 6 -month 9 -month 12 -month
    Total Return -0.47 0.00 -2.47 -4.30 -2.64

    *The Global Balanced Income Fund was launched on 30 August 2015.

    Top By Country*

     Country %
    Germany 21.0
    United States 13.7
    France 13.5
    Luxembourg 9.4
    Global 7.7
    Netherlands 4.0
    Spain 3.2
    India 2.5
    Asia 2.4

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0.0
    BB 9.8
    B 14.0
    Less than B-  0.0
    Not Rated  2.4

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    iShares MSCI EM ACC 4.8
    ASML Holdings NV 4.0
    Renault SA 3.9
    Lyxor DAX ETF 3.6
    iShares EUR HY ETF 3.2
    6.50% Lecta 2023 3.2
    4.00% Ineos 2023 3.1
    4.00% Chemours 2026 3.1
    5.00% Nidda Bondco 2025 3.1
    7.50% Garfunkelux 2022 3.0

    Currency Allocation

    Currency %
    EUR 74.2
    USD 26.0
    GBP 0.0

    Asset Allocation*

    Asset %
    Cash 14.9
    Bonds 30.8
    Equities 54.5

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 11.6
    5 – 10 years 14.5
    10 years + 0.0

    Sector Breakdown

    Sector %
    ETFs 24.8
    Consumer, Cyclical 17.6
    Basic Materials 11.9
    Financial 10.7
    Technology 6.7
    Consumer, Non-Cyclical 5.9
    Energy 3.6
    Communications 2.2
    Industrial 1.9

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.