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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

July 2019 Commentary

July was a month full of mixed sentiment revolving around uncertainties regarding the Fed’s decision to cut rates along with ECB’s Mario Draghi hinting at easing. Needless to say, investors were seen to take a cautious approach during the month after the rally of June. By the end of July, the Fed cut rates by 25bps and Mario Draghi left rates unchanged after markets had already priced in stimulus as at end July.

The mixed sentiment during July, led the stock market’s performance to be flattish month on month whereas year to date, the stock market is up 19.91%.

Specifically in the Eurozone area, Greece’s election proved to be a positive for the country as the New Democracy party rose to power; the party has promised tax cuts financed by spending cuts in attempt to support growth. On another note, Italy has continued to avoid censure from Brussels over the size of its deficit. In contrast, Brexit remains a major problem for Europe given the new Prime Minister, Boris Johnson’s target to leave the EU by end October with or without a deal.

On a more general note, the ECB kept rates on hold with the main refinancing rate remaining at 0 and the deposit rate at -0.4 percent, but changed its forward guidance to say that it expects rates to remain the same or at lower levels at least through the first half of 2020. The bank has also pointed that is already making preparations for more quantitative easing. Since markets had already reacted positively to Draghi hinting to a July rate cut which led to a decrease in negative yields, yields made a U-turn after the ECB suggested otherwise. Indeed, we saw the 10-year Bund tumbling to even lower negative levels of circa 0.44 percent from the positive 0.2 percent levels in January and the negative 0.20 percent mid-month.

There were limited developments on the Trade War front apart from a meeting at end of July where it was agreed that talks would resume in September. That being said, macroeconomic data in the U.S improved whereas China’s deteriorated. Due to this, the People’s Bank of China (PBOC) has finally started to ease monetary policy conditions for consumers and businesses. In order to maintain growth following the U.S tariffs, the PBOC produced a coordinated response in the form of liquidity stimulus and fiscal measures. To underline its easing bias, the PBOC provided another 100bps cut to its reserve requirement ratio, injecting further liquidity.

European High Yield gained 0.794 percent and saw tighter spreads than the U.S from 371bps, in the previous month, to 369bps. U.S High Yield experienced a gain of 0.512 percent and the 10-Year U.S. Treasury yield remained at roughly the same levels as at end June, ending at 2.0144 percent. The U.S bond markets saw spreads tighten from 407bps last month to 393bps, but much less than of its Eurozone counterparts.

The Investment Manager (IM) remains of the opinion that names held in the fund have further to gain as we are in earnings season. Nonetheless, investors should remain cautious due to the uncertainties from the Trade War. The IM has built positions in high conviction names and further aims to benefit the portfolio by adapting to the market scenario. 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 €7 mn
    Number of Holdings 42

    Performance History

    Calendar Year Performance YTD 2018* 2017 2016 Since
    Inception*
    Total Return 9.19 -3.86 - - 4.97
    Calendar YearPerformance 1 -month 3 -month 6 -month 9 -month
    Total Return 0.00 3.19  1.77  4.87

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

    Top By Country*

     Country %
    Germany 24.3
    France 13.2
    United States 10.1
    Global 7.4
    Netherlands 5.9
    Luxembourg 5.8
    China 3.7
    Brazil 2.8
    Spain 2.8

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0.0
    BB 9.7
    B 14.6
    Less than B- 0.0
    Not Rated 10.0

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    BMIT Technologies 4.8
    iShares MSCI EM Asia 4.6
    ASML NV 4.6
    iShares Eur600 Oil&Gas 3.6
    Lyxor EurStx600 Tech 3.1
    iShares Core S&P500 3.1
    iShares Euro HY 3.0
    5.00% Nidda Bondco 2025 2.9
    3.75% TUM 2029 2.9
    iShares USD HY ETF 2.9

    Currency Allocation

    Currency %
    EUR 72.6
    USD 27.4
    GBP 0.0

    Asset Allocation*

    Asset %
    Cash 5.8
    Bonds 40.2
    Equities 54.0

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 10.6
    5 – 10 years 20.0
    10 years + 3.7

    Sector Breakdown

    Sector %
    ETFs 29.4
    Financial 13.7
    Technology 11.4
    Consumer, Cyclical 8.7
    Industrial 7.0
    Basic Materials 5.2
    Consumer, Non-Cyclical 5.0
    Energy 4.1
    Communications 3.7

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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