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Global Balanced Income Fund


    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


→ 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


July 2017 Commentary

The month started with the European Central Bank indicating it is considering dropping its easing bias. This triggered a mini ‘taper tantrum’. The response in equity markets was subdued and negative movement are being interpreted as a normal correction following strong gains and investor complacency in the first half of the year.

Meanwhile US Federal Reserve Chair Yellen stuck to her recent script in front of Congress by emphasising that monetary policy adjustment would be ‘gradual’. The Fed is still expected to raise interest rates once more this year in December. However, the infighting in the US admiration and the failure to pass significant legislation has tempered confidence in the US dollar.

On the back of these expectations, the Euro moved significantly upwards against the dollar closing the month at 1.1842 over 5% from the start of the month. Consequently, Eurozone shares fell over 3%. US equity indices remained largely unchanged.

Data emerging from Europe remains strong and consistent; in addition, political risk appears to have shifted to the United States. Under these circumstances, the investment managers expect European equities to outperform in the medium term. Currency adjustment appear to be reaching a peak and the European earnings season is mostly in line with expectations.

Credit market saw another remarkable performance in July as the flight to yield in a low volatility environment persisted in the first month of the third quarter of 2017. Spreads ground even tighter to year-to-date lows. From European High Yield to US High Yield to Emerging Market debt markets. Monies continue to flow in the asset class, With European High Yield registering a 0.93% gain during the month, followed by a 1.15% rally in US High Yield markets.

The imminent reduction in the ECB’s quantitative easing programme could result in benchmark yields rising and the hunt for yield abating, particularly within that segment of investors who stepped down the ratings ladder for an improved yield. This could ultimately mark the start of a correction in high yield markets. Not only in the single currency region but also spill over across the Atlantic.

Another possible scenario could also be bond issuers rushing to bring fresh bonds to the market to lock in financing costs at current low levels in anticipation of rising financing costs. If this results in an inundation of bond issuance, we could well witness a repricing in both the primary and secondary markets towards the latter part of the year, as the increase in supply would dent investor’s hopes for tighter spreads from this point forth.

The third quarter of 2017 is expected to remain turbulent. Currency risk in the fund in mostly hedged. The investment managers are also seeking opportunities and adjusting the allocation when investments deviate from their fundamental values. The fourth quarter of 2017 is expected to be more in line with the Investment Managers base scenario.


  • 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 5.74 1.58 - - - 8.60
    Calendar Year Performance 1 -month 3 -month 6 -month 9 -month 12 -month
    Total Return 0.93 0.93 6.16 10.82 11.96

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

    Top By Country*

     Country %
    France 17.3
    United States 15.7
    Luxembourg 11.7
    Germany 9.6
    Global 9.2
    Spain 5.8
    Italy 3.8
    Greece 3.8
    Asia 3.3

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0
    BB 8.5
    B 18.2
    Less than B- 0.0
    Not Rated 2.8

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    iShares MSCI EM ETF 9.2
    Valeo SA 4.3
    iShares Euro High Yield ETF 4.0
    7.50% Garfunkelux 2022 3.9
    6.50% Lecta 2023 3.8
    6.75% Unicredit 2166 3.8
    4.00% Ineos 2023 3.8
    6.00% Intralot 2021 3.8
    Monsanto Co 3.6
    Renault SA 3.3


    Currency Allocation

    Currency %
    EUR 72.5
    USD 27.5
    GBP 0.0


    Asset Allocation*

    Asset %
    Cash 12.8
    Bonds 35.0
    Equities 52.2

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 26.6
    5 – 10 years 2.8
    10 years + 0.0


    Sector Breakdown

    Sector %
    ETFs 26.5
    Consumer, Cyclical 24.9
    Financial 14.3
    Basic Materials 13.2
    Technology 4.4
    Consumer, Non-Cyclical 3.8


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.