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Global Balanced Income Fund Distributor

  • 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

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Overview

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

Commentary

May 2019 Commentary

For much of this year, equity markets have enjoyed a healthy climb, assisted by a dovish tilt from central banks, as well as the possibility of a trade deal between the US and China. As we entered May, the S&P 500 was at an all-time high. However, just six days into the month, investors were tested by the announcement that the US would be moving ahead with tariff increases on US imports from China. Equity markets performed poorly over the month, with Asia ex-Japan, emerging markets and the S&P 500 all losing more than 6%. US Treasury yields fell, with markets now pricing in more than 3 Federal Reserve (Fed) rate cuts by the end of 2020, and so US Treasuries returned a positive 2.4% over the month.

The concern in Europe, much like the US, is that trade uncertainty filters through to the labour market and starts to hurt the service sector, which has so far proved more resilient. The latest employment growth numbers in Europe have been solid, though. The first estimates of employment growth for Q1 show a pickup to 1.4% quarter on quarter, annualised.

Stimulus in China could help Europe in the second half of this year, and another positive factor for the region is that the US has put the discussion over global auto tariffs on hold for up to six months. The European Parliament elections, which took place from 22 to 26 May, yielded a generally positive result for the European project.

High Yield suffered this month as liquidity dried up and a strong tightening in bonds emerged. Bond markets, in particular, demonstrated a flight to safety, as the 10-Year U.S. Treasury yield hit a twenty-month low, closing the month at 2.13 percent, and the 10-Year German Bund yield dropped to -0.201 percent.

The Investment Manager (IM) remains confident that the U.S. and China (as well as the U.S./Mexico) will come to some sort of a trade deal by the end of the summer. Assuming a compromise, the details of the deal are less important than removing the cloud of trade uncertainty from the front-page headlines, allowing both consumer and business sentiment to remain strong and support the economy. The June 28-29 G20 meeting in Japan looms large as a potential trigger for progress in negotiations. The IM has built positions in high conviction names and further aims to include exposures that will benefit the portfolio from a Trade War agreement. With this in mind, the IM is confident that the stocks in the portfolio should generate alpha for the fund and boost performance.

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Global Balanced Income Fund (Distributor)
    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 19.11.2018
    Domicile Malta
    Dealing Frequency Daily
    Initial Charge up to 2%
    Management Fee 1.25%
    Currency Euro (€)
    ISIN numbers EUR - MT7000023891
    Minimum Initial Investment EUR 2,500
    Minimum Additional Investment EUR 500
    Fund Size €6.6 mn
    Number of Holdings 43

    Performance History

    Calendar Year Performance YTD 2018* 2017 2016 Since
    Inception*
    Total Return 5.81 -3.86 - - 1.73
    Calendar YearPerformance 1 -month 3 -month 6 -month 9 -month
    Total Return -4.57 -1.38

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

    Top By Country*

     Country %
    Germany 22.2
    France 15.0
    United States 12.4
    Global 7.4
    Netherlands 7.3
    Luxembourg 5.8
    China 3.5
    Brazil 2.8
    Spain 2.7

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0.0
    BB 9.9
    B 14.9
    Less than B- 1.4
    Not Rated 7.5

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    ASML Holdings NV 5.8
    BMIT Technologies 5.0
    iShares MSCI EM Asia 4.6
    iShares Euro HY ETF 3.1
    Lyxor EurStx600 Tech 3.1
    4.00% Chemours 2026 3.0
    iShares Core S&P500 3.0
    5.00% Nidda Bondco 2025 2.9
    iShares USD HY ETF 2.9
    4.125% Adler Pelzer 2024 2.9

    Currency Allocation

    Currency %
    EUR 73.5
    USD 26.8
    GBP 0.1

    Asset Allocation*

    Asset %
    Cash 3.8
    Bonds 39.6
    Equities 56.8

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 11.0
    5 – 10 years 19.0
    10 years + 3.6

    Sector Breakdown

    Sector %
    ETFs 27.4
    Financial 14.9
    Technology 12.9
    Consumer, Cyclical 12.4
    Industrial 7.2
    Basic Materials 5.3
    Consumer, Non-Cyclical 5.1
    Energy 4.1
    Communications 3.5

Legal Information

THE VALUE OF THE INVESTMENTS INCLUDING CURRENCY FLUCTUATIONS, AND INCOME FROM THEM CAN GO DOWN AS WELL AS UP AND INVESTORS MAY NOT GET BACK THE FULL AMOUNT INVESTED. CALAMATTA CUSCHIERI INVESTMENT SERVICES LTD. (CCIS) IS LICENSED BY THE MFSA. THE CC GLOBAL BALANCED INCOME FUND IS A SUB FUND OF CCFUNDS SICAV PLC AND IS AUTHORISED BY THE MFSA. INVESTORS MAY INCUR A SUBSCRIPTION CHARGE AND MAY BE SUBJECT TO TAX ON DISTRIBUTIONS. INVESTMENT SHOULD BE BASED ON THE PROSPECTUS AND KIID DOCUMENT, WHICH MAY BE OBTAINED FROM CCIS OFFICES.

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. ADVERT ISSUED BY CCIS.

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