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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


February 2017 Commentary

The world economy seems to be recovering steadily. Expectations of economic growth often accompanied by higher interest rate expectations are having a twofold impact on financial markets. The twin effect; the support to risky assets from higher expected economic growth and the expected rotation from fixed income to equities as a result of higher interest rates, is dramatic.

In February, equities gained as market analysts continued to reprice future earnings. Optimism was supported by a decent earnings season and a rebound in profit margins, even if most of the growth was already priced-in. However, we believe that the Q416 results were the first stage of a strengthening earnings recovery.

European and US HY markets were up by 1.06% and 1.60% respectively as measured by leading market indices. The political and central bank activity did little to deter investors from adding more risk to their portfolios, aided by robust economic throughout data but also by the positive string of earnings releases. Investor’s buoyant mood was also bolstered by a series of credit rating upgrades, something which investors had seemingly forgotten were still achievable and possible.

Throughout most of the period under review the allocation of the Global Balanced income fund continued to be tilted towards equity markets. The automobile suppliers, luxury goods, Insurance and technology have outperformed. An overweight position in German stocks contributed further to the fund’s positive performance.

High yield credit continues to be the preferred exposure in the fixed income space. The risk is balance by maintaining very low average duration. Currently the average duration on the fixed income holdings is less than 2 yrs.

The Fund Managers expect 2017 to continue to be positive for European Equities. Still, in the short term, elections in the Netherlands and France and the start of Brexit negotiations may increase short-term market volatility.

Going forward an increase in allocation to Emerging markets will be considered. The expected three rate hikes by the US Federal Reserve appear to be already priced-in in current valuations, and so long as EM currencies continue to range trade within current levels, emerging markets are set to remain in demand. Emerging market economies are in a healthier state than a large number of developed economies, with encouraging prospects for GDP growth in 2017.


  • 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 €4.7mn
    Number of Holdings 27

    Performance History (expressed in % terms)

    Calendar Year Performance YTD 2016 2015 2014 2013
    Total Return 0.88 1.58 - - -
    Calendar Year Performance 1 month 3 month 6 month 9 month 12 month
    Total Return 1.27 4.12 5.71 6.91 8.82
    3.60 Since Inception. The Global Balanced Income Fund was launched on 30 August 2015.

    * Performance figures are calculated using the Value Added Monthly Index “VAMI” principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding

    Top 10 By Country*

     Country %
    France 25.8%
    United States 21.2%
    Malta 18.4%
    Germany 12.0%
    Luxembourg 9.1%
    Spain 6.8%
    Great Britain 4.4%
    Norway 2.3%

    *including exposures to ETFs

    By Credit Rating*

    Holding %
    BBB 0%
    BB 12.3%
    B 17.4%
    Less than B- 0.0%
    Not Rated 2.0%

    *excluding exposures to ETFs

  • Performance to Date (Euro)

    Top 10 Exposures

     Exposure %
    iShares Core S&P 500 ETF 14.1%
    Total SA 5.1%
    iShares Euro HY Corp Bond ETF 5.6%
    7.5% HP Pelzer 2021 4.5%
    7.5% Garfunkelux 2022 4.5%
    6.5% Lecta SA 2023 4.5%
    4% Ineos Finance Plc 2023 4.4%
    Lyxor ETF CAC 40 3.1%
    LVMH Moet Hennessy 2.8%
    Lyxor Eurstoxx 600 Tech ETF 2.7%

    *including exposures to ETFs

    Currency Allocation

    Currency %
    EUR 68.3%
    USD 31.7%
    GBP 0.0%


    Asset Allocation*

    Asset %
    Cash 16.4%
    Bonds 38.5%
    Equities 45.2%

    *including exposures to ETFs

    Maturity Brackets

    Number of Years %
    0 – 5 years 29.2%
    5 – 10 years 2.0%
    10 years + 0%


    Sector Breakdown

    Sector %
    ETFs 28.0%
    Consumer, Cyclical 16.6%
    Financial 13.7%
    Basic Materials 11.2%
    Energy 7.1%
    Consumer, Non-Cyclical 4.5%
    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.