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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

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

March 2019 Commentary

In the first quarter of 2019, the Euro Stoxx 50 experienced a high positive retracement of 12.43% year to date, for multiple reasons.

On trade, progress seems to have been made this quarter between the US and China, a main contributor to the rally in the equity markets. We are of the view that an agreement will be signed.

On interest rates, there is some reason for optimism. The Fed Reserve has made a U-turn when it comes to interest rate hikes. The ECB on the other hand have introduced further expansionary policies.

On growth, the Chinese authorities are now stimulating domestic demand with a package of tax cuts, infrastructure investment and measures designed to support bank credit growth.

Easier monetary policy and less disruptive trade policies could continue to support markets in Q2 2019. Moreover, Brexit still remains the star of uncertainty having ended the month of March with the Parliament not agreeing with May’s divorce plan from the EU.

The quarter ended on a good note and the Investment Manager remains of the view that a Trade War agreement will be reached. In addition to, a strong manufacturing figure for China and the US for March reduced fears of a global recession. Also, the Fed and ECB being accommodative to the market remains to be of a benefit for equities.

For credit markets, the first quarter of 2019 boosted bond prices. US High Yield markets increased by 7.26%; European High Yield markets increased by 5.12%; Global Emerging Markets increased by 5.89%. The major contributors that kept bonds at an uptrend are the Feb and ECB announcing a dovish stance, news of President Trump and President Xi working on reading a Trade War agreement and China’s strong manufacturing data.

High Yield Bonds remain attractive due to current macro events and EMs remain to perform well.

The Investment Managers (IMs) have built positions in high conviction names in both credit and equities 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 €6.7 mn
    Number of Holdings 45

    Performance History

    Calendar Year Performance YTD 2018* 2017 2016 Since
    Inception*
    Total Return 6.86 -3.86 - - 2.74
    Calendar YearPerformance 1 -month 3 -month 6 -month 9 -month
    Total Return -0.39 6.86

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

    Top By Country*

     Country %
    Germany 24.3
    United States 12.5
    France 11.0
    Luxembourg 8.8
    Global 7.6
    Netherlands 7.0
    China 3.8
    Spain 2.8
    Brazil 2.7

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0.0
    BB 11.0
    B 15.1
    Less than B- 1.7
    Not Rated  2.3

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    ASML Holdings NV 5.5
    BMIT Technologies 4.8
    iShares MSCI EM Asia 4.7
    iShares EUR HY ETF 3.1
    4.00% Chemours 2026 3.0
    4.00% Ineos 2023 3.0
    Renault SA 2.9
    iShares USD HY ETF 2.9
    Lyxor EurStx600 Tech 2.9
    iShares Core S&P500 2.9

    Currency Allocation

    Currency %
    EUR 72.7
    USD 27.6
    GBP 0.1

    Asset Allocation*

    Asset %
    Cash 5.1
    Bonds 36.0
    Equities 59.3

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 12.3
    5 – 10 years 17.8
    10 years + 0.0

    Sector Breakdown

    Sector %
    ETFs 27.4
    Financial 14.0
    Consumer, Cyclical 12.9
    Technology 12.5
    Basic Materials 11.2
    Consumer, Non-Cyclical 5.8
    Energy 4.3
    Communications 3.8
    Industrial 3.2

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.