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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

November 2019 Commentary

Equities continued to rally in November – a relatively consistent feature of markets in 2019, despite the multitude of geopolitical risks that investors have faced this year. The negotiations between the US and China on a ‘phase one’ trade deal are yet to arrive at a conclusion, but there has at least been an absence of any further escalation in tariffs. Tariffs are currently scheduled to increase on 15 December, unless a deal is reached or the deadline is pushed back. However, hopes of a deal appear to have buoyed sentiment. In the UK, the spotlight has shifted to the upcoming general election on 12 December. So politics is likely to remain front and centre of investors’ minds as the year draws to a close.

With central bank easing a key factor in market returns so far this year, investors didn’t get much new information from the major central banks (US, UK, Eurozone, Japan) in November. Only the Bank of England (BoE) held a meeting last month, and it made no change to its policy rate. Developed market equities outperformed emerging market equities, with the S&P 500 ending the month as the best performing major equity index.

Looking at the fixed income asset class per se, European government bond yields continued to trade within a range, as investors continued to be conditioned by the better than expected PMIs to the upside, while negatively impacted by the fears that a phase one deal will be delayed. Indeed, the mostly sought benchmark, the German Bund closed the month at -0.36 percent, while it flattered around highs of -0.24 percent in the initial week of November

Looking at U.S. credit markets Treasury Yields reached 1.7758 percent from the 1.688 percent levels in October, while highs of 1.944 percent were tested throughout the month, as trade war fears were eased on tweets from Donald Trump that negotiations are going very well. U.S. HY Spreads tightened by 16bps from 430bps to 414bps due to improved economic sentiment and a relatively more risk-averse mode, in line with gains being registered by equity markets.

The Investment Manager 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 U.S-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 €7.0 mn
    Number of Holdings 39

    Performance History

    Calendar Year Performance YTD 2018* 2017 2016 Since
    Inception*
    Total Return 12.46 -15.14 8.67 1.58 6.50
    Calendar Year Performance 1 -month 3 – month 6 -month 9 -month 12 -month
    Total Return 1.53 6.93  6.29  4.72  8.01

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

    Top By Country*

     Country %
    Germany 25.8
    France 16.2
    United States 9.9
    Global 7.5
    Netherlands 6.8
    Luxembourg 5.8
    China 3.9
    Spain 2.9
    Brazil 2.8

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0.0
    BB 9.5
    B 14.4
    Less than B- 0.0
    Not Rated 8.7

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    ASML NV 5.5
    Kering 4.8
    iShares MSCI EM Asia 4.7
    BMIT Technologies 4.5
    SAP SE 4.4
    iShares Eurostoxx 600 Oil&Gas 3.5
    Lyxor CAC 40 3.4
    Lyxor EurStx600 Tech 3.3
    iShares Core S&P 500 3.2
    Lyxor EurStx600 Healthcare 3.0

    Currency Allocation

    Currency %
    EUR 74.0
    USD 25.9
    GBP 0.1

    Asset Allocation*

    Asset %
    Cash 3.0
    Bonds 38.4
    Equities 58.6

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 12.9
    5 – 10 years 16.1
    10 years + 3.7

    Sector Breakdown

    Sector %
    ETFs 29.7
    Technology 14.4
    Financial 14.0
    Consumer, Cyclical 10.1
    Industrial 7.1
    Consumer, Non-Cyclical 5.1
    Basic Materials 4.8
    Communications 3.9
    Energy 2.8

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