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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

September 2020 Commentary

The Global Balanced Income fund was down 1.03% for the month of September and down 2.30% for the year. This performance is a result of the prudent stance of the Manager to invest in stocks and bonds, which continue to do well in uncertain times whilst also slowly building a position in those stocks and bonds in beaten down industries a longer-term view on their valuations.

The third quarter emphasised the benefits of geographic diversification. Asian equities returned over 10% and are the joint best performing equity region year to date, up over 5%. Meanwhile, UK equities fell 3% and are down 20% year to date. European equities also lagged the rest of the world, with returns of 2% and -7% for the quarter and year to date respectively. US equities delivered nearly 9% over the quarter and over 5% this year.

Asia’s strong performance has been helped by China’s remarkable success in containing the virus. This has allowed subway usage in China’s major cities to recover to only 10% below 2019 levels, compared with tube use in London, which remained down more than 60% even before the latest work-from-home measures were announced.

In the US, the summer started with a sharp rise in the number of people in hospital with Covid-19, but since late July that number has declined sharply, perhaps helped by increased use of face masks. In Europe and the UK, hospitalisations have been very low for most of the summer, but have started to creep up, with Spain and then France and the UK seeing a rise in cases. This has prompted concerns that, as summer turns to autumn and temperatures drop, hospitalisations and deaths could start to rise more meaningfully.

The US election is also heating up, with polls now suggesting that Trump has gained ground in some key swing states, such as Florida and North Carolina, but still needs to make further gains in at least two of the other key swing states of Arizona, Michigan, Pennsylvania and Wisconsin if he is to retain the presidency.

The final quarter of the year could be particularly eventful. By January, we should know the outcome of the US election, whether a no-deal Brexit was avoided and whether US Congress has passed more fiscal stimulus. Most importantly, there is a good chance that we will get news on a vaccine. For now, we continue to believe the focus should be on diversification, both regionally and by asset class, with alternative and targeted absolute return strategies playing an increasingly important role in portfolio diversification. However, we also think it’s worth considering what to buy if we get good news on a vaccine.

US high yield spreads widened on virus concerns throughout September. Going forward the Manager believes that credit markets will continue to be supported by the actions taken by the Fed as well as the uplift from the sequential easing of Covid-19 restrictions.

Given the high degree of uncertainty around the outlook for the virus and a vaccine the Investment Manager continues to believe it makes sense to aim for a defensive portfolio taking up selective positions in cyclical stocks with long-term value. In this environment, the Investment Manager favours an up-in-quality approach across for stocks with a focus on valuations relative to fundamentals.

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 €6.3 mn
    Number of Holdings 44

    Performance History

    Calendar Year Performance YTD 2019 2018* 2017 Since
    Inception*
    Total Return -2.44 14.90  -3.86  - 7.77
    Calendar Year Performance 1 -month 3 – month 6 -month 9 -month 12-  month
    Total Return -1.05 1.96 18.72 -2.4 2.86

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

    Top By Country*

     Country %
    Germany 23.0
    France 8.9
    Malta 8.7
    Luxembourg 8.4
    United States 8.2
    China 6.3
    Brazil 5.6
    Netherlands 4.4
    Spain 2.9

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    AAA to BBB- 0.0
    BB+ to BB- 7.3
    B+ to B- 15.0
    CCC+ to CCC 2.5
    Not Rated 9.6

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    BMIT Technologies plc 4.4
    Lyxor Eurostoxx 600 Tech 4.1
    SAP SE 3.7
    iShares Core S&P 500 3.7
    Lyxor Healthcare ETF 3.5
    Alibaba Group 3.5
    6.5% CMA CGM 2022 3.2
    ASML Holding NV 3.1
    iShares Euro HY Corp 3.1
    4% Chemours 2026 3.0

    Currency Allocation

    Currency %
    EUR 74.7
    USD 25.2
    GBP 0.1

    Asset Allocation*

    Asset %
    Cash 14.6
    Bonds 39.8
    Equities 45.5

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 16.2
    5 – 10 years 14.3
    10 years + 3.8

    Sector Breakdown

    Sector %
    ETFs 23.7
    Financials 15.2
    Technology 11.3
    Basic Materials 7.6
    Communications 6.3
    Industrials 6.0
    Consumer, Cyclical 3.9
    Energy 3.0
    Consumer, Non-Cyclical 2.7

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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