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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

September 2017 Commentary

The third quarter of 2017 ended just as it had begun – credit rallying, spreads tightening, demand for High Yield bonds remaining well intact and Emerging Market credit marching on. US High Yield rose by 2.0% in Q317, European High Yield by a satisfactory 1.75% and Emerging Market Credit in hard currency posted a remarkable 2.95% during the summer. In September alone, US high yield, European high yield and Emerging Market bonds returned 0.89%, 0.54% and 0.85% respectively.

Shares fell in the first week of September as North Korean risk continued to escalate. The risk of a skirmish of war has grown, however, a diplomatic solution remains most likely. That said, there was a positive turnaround in the following weeks as global economic conditions continued to improve. US August durable goods were robust and regional manufacturing conditions indices remained strong. The hurricane season dampened home sales and household spending.

Eurozone PMIs rose in September to very strong levels with gains in manufacturing and services pointing to stronger growth ahead. Economic confidence indicators also continued to rise. On the contrary, inflation remains well below target with core inflation falling to 1.1% year-on-year from 1.2%. In September US shares up 1.9% and Eurozone shares registered gains of 5.07%.

From the monetary world, Fed Chair Yellen reiterated the case for a gradual rise in interest rates. The ECB made no changes to monetary policy. However, it revised up its growth forecasts, while it cut down on its inflation forecasts. The surprise was that Draghi was not more forceful in expressing concerns about the risking Euro.

The investment managers expect the last quarter of the year to continue to be positive for European Equities and thus have adjusted the asset allocation accordingly. The Global Balance Income Fund is up 7.20% year to date.

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 6.82 1.58 - - - 9.70
    Calendar Year Performance 1 -month 3 -month 6 -month 9 -month 12 -month
    Total Return 1.67 1.95 5.58 6.82 13.09

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

    Top By Country*

     Country %
    United States 17.3
    France 17.3
    Germany 17.1
    Luxembourg 11.3
    Global 9.2
    Greece 7.2
    Spain 5.6
    Italy 3.7
    Asia 3.3

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0.0
    BB 9.2
    B 24.4
    Less than B- 0.0
    Not Rated 2.7

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    iShares MSCI EM ETF 9.2
    Valeo SA 4.5
    7.50% Garfunkelux 2022 3.8
    iShares Eurostoxx50 ETF 3.8
    iShares Euro HY Corp Bond ETF 3.8
    6.50% Lecta 2023 3.8
    6.75% Unicredit 2166 3.7
    4.00% Ineos 2023 3.7
    6.00% Intralot 2021 3.7
    Monsanto Co 3.6

    Currency Allocation

    Currency %
    EUR 70.8
    USD 29.2
    GBP 3.5

     

    Asset Allocation*

    Asset %
    Cash 1.6
    Bonds 41.7
    Equities 56.7

    *including exposures to ETFs

    Maturity Buckets

    Number of Years %
    0 – 5 years 32.1
    5 – 10 years 4.3
    10 years + 0.0

     

    Sector Breakdown

    Sector %
    ETFs 33.6
    Consumer, Cyclical 25.2
    Financial 17.6
    Basic Materials 16.1
    Technology 4.7
    Consumer, Non-Cyclical 3.3

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