• Euro-High-Income-Distributor-Institutional-accumulate-your-income

Euro High Income Accumulator Institutional

  • INVESTMENT OBJECTIVES

    The CC Euro High Income Bond Fund Accumulator Institutional aims to maximise the total level of return for investors through investment in a diversified portfolio of Bonds. To achieve this objective, the Investment Manager invests primarily in a diversified portfolio of over 65 intermediate term, corporate & government bonds with maturities of 10 years and less.

    STRUCTURE

    The Fund operates under the UCTIS structure which has become the gold standard for EU investment funds for retail investors. UCITS funds are ideal for retail investors as they have been specifically designed to ensure diversification and liquidity through distinct parameters, permitted asset classes and investment restrictions as set out in EU law.

    MANAGEMENT

    The Funds are managed by a group of investment professionals at Calamatta Cuschieri Investment Management Limited who monitor developments on a daily basis.

Overview

→ Investor Profile
→ Currencies Available
→ Dividend Payment
→ Monitoring and Pricing
→ Entry and Exit Fees
→ Minimum Investment
→ Fund Rules at a glance
→ Target dividend
→ Other Information

Commentary

September 2020 Commentary

Policymakers hoped that the Covid-19 pandemic would recede during the hotter summer months, instigating to gradually lift restrictions at the start of the summer season in the northern hemisphere. This has not materialized, and the renewed government-imposed restrictions in some countries, including France and Britain, in September, weighed on sentiment. Indeed the factors that influenced markets throughout the month were the virus, economic data, and the US election.

So far, better testing and tracing capacity has allowed European policymakers to treat this second wave with targeted measures, including travel restrictions or the requirement to wear a facemask in public, instead of national lockdowns. This was done in an effort to better balance public health policies with economic policies. Policy makers are relying on the arrival of a viable vaccine in the first half of 2021.

As a result of the mixed information affecting key market catalysts, markets were somewhat volatile in September, with asset selloffs triggered by poor data, followed by a recovery intra-month on vaccine hopes. Appetite for new issues coming to market remained strong, with demand exceeding supply and creating a strong technical bid.

Expectedly, data is becoming a very sensitive element for market participants as it depicts the strength of the recovery, particularly in light of the announcements of further restrictions throughout the month. The latest data has been mixed highlighting the challenging situation world economies are facing.

Looking at economic data points, Europe continued to show tentative signs of recovery despite a second wave, as economic activity continued to build. Looking at Europe’s largest economy, Germany, PMIs indicated an expansion during the month of September, with Manufacturing PMI, increasing to 56.4, compared to a consensus estimate of 56.6, and a previousreading of 52.2. Services PMI also registered an expansion, coming in at 50.6 compared to expectations of 49.1, however lower than August’s reading of 52.5. Meanwhile, the Euro Area’s Manufacturing PMI indicated an expansion to 53.7, in line with expectations, while services PMI retreated to 48 from a previous reading of 50.5.

Furthermore, both lagging and leading indicators showed some weakness with unemployment within the Eurozone area inching upwards to 8.1% from 8.0%. Moreover, consumer confidence remained weak, with readings coming in at -13.9. Collectively, despite some positive signs, indicators are suggesting that we are still at the very beginning of a fragile economic recovery.

Looking at sovereign yields on the 10-year German Bund, Europe’s mostly sought benchmark closed tighter than the previous month at -0.521 compared to -0.398 at the end of last month, with most of the tightening occurring during the last week of September. The yield curve experienced a parallel shift downwards, in line with the increased volatility in the marketplace during September. These moves were also experienced in European peripheral sovereigns.

Within the HY asset space, risk assets experienced a sharp sell-off during the second half of the month, with only a partial recovery by the end of the month to close of September with a negative 0.70 percent return. The said moves were correlated to the sentiment surrounding equity markets, which were more pronounced as the challenging situation takes hold.

The CC Euro High Income fund fell by 0.4 percent, less than the general market with an outperformance of circa 30bps. On a year-to-date basis, the fund is slightly underperforming on a net basis due to the lower beta of the portfolio and the subsequent market recovery; albeit the volatility of the fund has been markedly lower than average. Throughout the month, the Manager continued to adjust the portfolio into attractive undervalued credit stories, primarily within the AT1 space. Moving forward the Managers believe that credit markets will continue to be aided by the support of primarily monetary politicians, creating a positive technical environment. In terms of bond picking, the Managers will continue to monitor the current environment and take opportunities in attractive credit stories.

Factsheet

  • NAV/Price: Click here for latest Price

    Sub-Fund Name Euro High Income Bond Fund (Accumulator) Institutional
    Investment Manager Calamatta Cuschieri Investment Management Ltd
    Fund Advisor DF – Asset Allocation (Lugano, Switzerland)
    Custodian Sparkasse Bank Malta p.l.c.
    Fund Administrator CC Fund Services (Malta) Limited
    Auditors Deloitte Malta
    Legal Advisors Ganado & Associates
    Launch Date 24th April 2020
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Weekly
    Fund Size €40.29 mn
    Number of Holdings 93
    Initial Charge up to 2.5%
    Management Fee 1%
    Dividend Payment Dates /
    ISIN numbers EUR – MT7000007761
    Minimum Initial Investment € 100,00
    Minimum Additional Invest Nil

    Historical Performance to Date (Euro)

    Performance History **

    Calendar Year Performance  YTD 2019 2018 Since Inception*
    Share Class A – Total Return 8.64 - - 8.64
    Rolling 12 month performance to last month end 25/09/1930/09/20 26/09/1825/09/19 27/09/1726/09/18 28/09/1627/09/17
    Share Class A – Total Return - - - -

    * The Distributor Share Class (Class F) was launched on the 24th April 2020.

    Top 10 By Country*

    Country %
    France 14.3
    Malta 12.6
    Germany 11.0
    Brazil 8.3
    USA 5.8
    UK 4.9
    Spain 3.8
    Mexico 3.3
    Ireland 3.1
    Turkey 3.0

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 57.6
    5 – 10 years 23.3
    10 years+ 4.0

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShares Euro Corp Large Cap 4.0
    iShares Euro HY Corp 3.0
    2.25% Portugal Treasury 2034 2.6
    6.5% CMA CGM 2022 2.5
    5% Nidda Bond Co 2025 2.4
    4% Chemours Co. 2026 2.4
    6% Loxam SAS 2025 2.2
    4.625% Cemex 2024 2.1
    7.5% Garfunkelux 2022 1.9
    4.875% United Group 1.8

    By Credit Rating*

    Credit Rating %
    AAA to BBB- 17.4
    BB+ to BB- 28.6
    B+ to B- 22.0
    CCC+ 7.0
    Less than CCC+ 1.1
    Not Rated 8.9
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 84.1
    USD 15.9
    Others 0.0

    Asset Allocation

    Asset %
    Cash 5.9
    Bonds 85.0
    CIS/ETFs 9.1

    Sector Breakdown*

    Sector %
    Financial 20.1
    Consumer, Cyclical 13.5
    Consumer, Non-Cyclical 11.6
    Communications 10.6
    Basic Materials 8.4
    Industrials 7.3
    Government 7.0
    Energy 3.6
    Utilities 1.9

    *excluding exposures to CIS

Legal Information

THIS DOCUMENT HAS BEEN ISSUED BY CALAMATTA CUSCHIERI INVESTMENT SERVICES LTD (“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 CCIS 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. 

THE VALUE OF THE INVESTMENTS INCLUDING CURRENCY FLUCTUATIONS, AND INCOME FROM THEM CAN GO DOWN AS WELL AS UP AND INVESTORS MAY NOT GET BACK THE FULL AMOUNT INVESTED.

CALAMATTA CUSCHIERI INVESTMENT SERVICES LTD. (CCIS) IS LICENSED BY THE MFSA. THE CC EURO HIGH INCOME BOND FUND IS A SUB FUND OF CCFUNDS SICAV PLC AND IS AUTHORISED BY THE MFSA. INVESTORS MAY INCUR A SUBSCRIPTION CHARGE AND MAY BE SUBJECT TO TAX ON DISTRIBUTIONS. INVESTMENT SHOULD BE BASED ON THE PROSPECTUS AND KIID DOCUMENT, WHICH MAY BE OBTAINED FROM CCIS OFFICES.

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.