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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

January 2016 Commentary

Following a difficult start in 2016, whereby global equity markets and high yield bonds sold-off, the fund was impacted negatively up to February. A subsequent volatile recovery in risky assets and a shift in asset allocation by the Investment Managers reversed all loses by the end of 2017.

In the first month of 2017, the Global Balanced Income Fund remained stable despite the difficult financial scenario. In fact, the Fund returned 6.3 percent between January 2016 and January 2017.

For the first quarter of this year, the Investment Managers have drastically reduced the average duration of the Fixed Income Exposure in the Fund. The long end of the European sovereign curve upheld its declining momentum in the month of January, as investors continued to offload their positions in line with improving economic data, as the market increased its expectations that the ECB will tighten its policies going forward.

On the other hand the High Yield Fixed income position, which in total makes around 40 percent of the Fund, contributed positively towards performance. Global High yield markets were positive in January 2017, gaining 1.87 percent.

Hard currency EM bonds once again emerged as the best performing class amongst its peers with a monthly total return of 2.1 percent. However, what was more interesting is the fact that performance was mainly driven by price returns, with yields lurching lower in line with appreciating EM currencies.

For the first quarter of 2017, the investment manager intends to maintain a cautious stance with an overexposure to selective European Equities. The investment managers expect the slow recovery to persist and cash rich firms to outperform. The Fixed Income duration segment of the Fund has already been aggressively adjusted downwards in line with the view that market interest rates will continue to increase.

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 32.0%
    United States 20.9%
    Germany 12.1%
    Luxembourg 12.0%
    Malta 8.9%
    Spain 7.0%
    Great Britain 4.7%
    Norway 2.4%
    Austria 0.0%

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0%
    BB 12.8%
    B 17.9%
    Less than B- 0.0%
    Not Rated 2.1%

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    iShares Core S&P 500 ETF 13.8%
    iShares Euro Stoxx50 UCITS ETF 6.5%
    Total SA 5.3%
    Lyxor ETF DAX 4.9%
    iShares Euro HY Corporate 4.8%
    7.5% HP Pelzer 2021 4.8%
    4% Ineos Finance Plc 2023 4.7%
    6.5% Lecta SA 2023 4.6%
    7.5% Garfunkelux 2022 4.6%
    Lyxor ETF CAC 40 3.1%

    *including exposures to ETFs

    Currency Allocation

    Currency %
    EUR 78.6%
    USD 21.4%
    GBP 0.0%

     

    Asset Allocation*

    Asset %
    Cash 6.8%
    Bonds 42.4%
    Equities 50.8%

    *including exposures to ETFs

    Maturity Brackets

    Number of Years %
    0 – 5 years 30.7%
    5 – 10 years 2.1%
    10 years + 0%

     

    Sector Breakdown

    Sector %
    ETFs 37.9%
    Consumer, Cyclical 14.8%
    Financial 14.5%
    Basic Materials 11.5%
    Energy 7.4%
    Consumer, Non-Cyclical 4.6%
    Industrial 2.0%
    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.