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Global Balanced Income Fund

  • 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

March 2017 Commentary

A strong European equity rally was fuelled by President Trump’s speech to congress at the beginning of the month that struck a softer tone than usual. Meanwhile a rate increase at March’s US FED FOMC meeting pushed the dollar higher, while the Eurozone’s manufacturing PMI continued to rise.

Flash February Eurozone inflation was up 2 percent year-on-year after increasing 1.8 percent in January which led many to question the need for additional monetary support by the ECB. Markets continued to advance following the encouraging Dutch elections, where voters rejected populism. Towards the end of the month the headline that most attracted attention was the UK’s formal withdrawal from the EU. However, this was not enough to derail the equity rally in Europe. The benchmark index added an impressive 5.5 percent over the month.

Credit markets across both sides of the Atlantic, and beyond had a mixed month and had muted returns within some regions, notably in European High Yield and Emerging Market High Yield markets, both registering gains of 0.08%. Investment Grade credit and sovereign markets ended the month in negative territory in March, both in Europe and the US, for varying reasons.

The sharp cost savings by high yield issuers as witnessed by the recent wave of refinancing of bonds previously issued with large coupons placed such high yield bonds in a better footing in terms of credit metrics.

In the Manager’s view the Fund is well positioned to benefit from the ongoing economic environment. The Fund is currently skewed towards European and Emerging Market equities, while fixed income holdings have a relatively low duration. Going forward the Investment Managers expect European Equities to continue to outperform, thereby Eurozone equities will remain core. US exposures will be hedged if currency volatility increases.

Factsheet

  • 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 Calamatta Cuschieri Fund Services Ltd.
    Auditors Deloitte Malta
    Legal Advisors Ganado Advocates
    Launch Date 1st September 2015
    Domicile Malta
    Dealing Frequency Weekly
    Initial Charge from 0% up to 2.5%
    Management Fee 1.25%
    Currency Euro (€)
    ISIN numbers EUR – MT7000014445
    Minimum Initial Investment EUR 2,500
    Minimum Additional Investment EUR 500
    Fund Size €4.8mn
    Number of Holdings 27

    Performance History (expressed in % terms)

    Calendar Year Performance YTD 2016 2015 2014 2013 Since
    Inception *
    Total Return 1.17 1.58 - - - 3.90
    Calendar Year Performance 1 month 3 month 6 month 9 month 12 month
    Total Return 0.29 1.17 7.11 9.37 7.89

    * The Global Balanced Income Fund was launched on 30 August 2015.

    Top By Country*

     Country %
    United States 33.9
    France 24.0
    Germany 11.7
    Luxembourg 8.7
    Spain 6.4
    Malta 4.8
    Great Britain 4.2
    Greece 4.1

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0
    BB 11.6
    B 20.2
    Less than B- 0.0
    Not Rated 0.0

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    iShares Core S&P 500 ETF 13.3
    iShares MSCI EM Equity ETF 10.1
    Total SA 4.9
    7.5% Garfunkelux 2022 4.4
    Monsanto Co 4.3
    7.5% HP Pelzer 2021 4.3
    iShares Euro HY Corp Bond ETF 4.3
    6.5% Lecta 2023 4.3
    4% Ineos Finance Plc 2023 4.2
    6% Intralot Capital 2021 4.1

    *including exposures to ETFs

    Currency Allocation

    Currency %
    EUR 68.0
    USD 32.0
    GBP 0.0

     

    Asset Allocation*

    Asset %
    Cash 4.8
    Bonds 38.1
    Equities 57.1

    *including exposures to ETFs

    Maturity Brackets

    Number of Years %
    0 – 5 years 31.8
    5 – 10 years 0.0
    10 years + 0.0

     

    Sector Breakdown

    Sector %
    ETFs 32.4
    Consumer, Cyclical 22.8
    Basic Materials 14.9
    Financial 13.8
    Energy 4.9
    Consumer, Non-Cyclical 4.3
    Industrial 2.1
    Communications 0.0

     

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