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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

December 2016 Commentary

After the political surprises from the UK referendum and the US election, the first week of December kicked off with the Italian referendum, which, voted down the proposed political changes and led to the resignation of Prime Minister Renzi. This was immediately followed by the ECB decision on the 8th to start scaling down its asset purchase programme in March, despite its extension.

However, markets quickly shrugged these events aside, and continued to focus on the expansionary policy advocated by Donald Trump. Equity markets reacted strongly with European equities gaining 7.8% in December. US Equities also continued to test new highs.

European credit ended the month in positive territory with Investment Grade and European High Yield Bonds registering a total return of 0.53% and 1.74% respectively. In the U.S. yields on the sovereign curve tended to be volatile, following the Fed’s rate hike expectations. That said the entire asset class managed to close-off the month on a positive note.

US investment grade and high yield credit registered a total return of 0.67% and 1.82% respectively. Emerging market bonds on the other hand posted a satisfactory 0.80% positive gain, despite the potential headwinds from a rising interest scenario in the US.

In the second part of 2016, the Investment Manager managed to recoup all the losses incurred in the first half of the year, following the increased equity and dollar exposure. Despite an eventful year whereby market participants acted nervously, the fund managed to close the year with a positive performance.

Moving forward, the Manager foresees more value in the equity market and, in this regard, the portfolio allocation will be shifted towards a higher equity weighting, while fixed income yield will be solely captured through selective high yield names.

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 €4.5mn
    Number of Holdings 27

    Performance History (expressed in % terms)

    Sep Oct Nov Dec YTD
    2015 -3.10 7.02 1.93 -4.35 1.10

    Top 10 By Country*

     Country %
    France 32%
    United States 19%
    Luxembourg 17.3%
    Germany 12%
    Spain 6.9%
    Malta 5.8%
    Great Britain 4.6%
    Norway 2.4%

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0%
    BB 12.7%
    B 15.6%
    Less than B- 0%
    Not Rated 2.0%

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    iShares Core S&P 500 ETF 14%
    iShares Euro Stoxx50 UCITS ETF 6.6%
    Total SA 5.4%
    iShares Euro Corp Bd Ex-Fin 5.2%
    Lyxor ETF DAX 4.9%
    7.5% HP Pelzer 2021 4.7%
    iShares Euro HY Corporate 4.7%
    7.5% Garfunkelux 2022 4.6%
    4% Ineos Finance Plc 2023 4.6%
    6.5% Lecta SA 2023 4.5%

    *including exposures to ETFs

    Currency Allocation

    Currency %
    EUR 80.3%
    USD 19.7%
    GBP 0%

     

    Asset Allocation*

    Asset %
    Cash 3.8%
    Bonds 45.2%
    Equities 51%

    *including exposures to ETFs

    Maturity Brackets

    Number of Years %
    0 – 5 years 28.3%
    5 – 10 years 2%
    10 years + 0%

     

    Sector Breakdown

    Sector %
    ETFs 43.5%
    Consumer, Cyclical 14.6%
    Financial 14.5%
    Basic Materials 9.1%
    Energy 7.4%
    Consumer, Non-Cyclical 4.6%
    Industrial 2%
    Communications 0.5%

     

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.