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Euro High Income Accumulator

  • INVESTMENT OBJECTIVES

    The CC Euro High Income Bond Fund Accumulator 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

July 2019 Commentary

Markets saw a mixed sentiment throughout the whole of July; uncertainties revolving around the Fed’s decision to a rate cut along with ECB’s Mario Draghi hinting at easing were the stars of the month. Needless to say, investors were seen to take a cautious approach during the month after the rally seen in the month of June. By the end of July, the Fed cut rates by 25bps, a move which was not digested positively by markets that expected a more aggressive stance. On the other hand, Mario Draghi left rates unchanged, however indicated that the downward trend in data will be monitored and easing actions will be taken if deemed necessary.

Apart from the Fed and the ECB’s statement at the end of the month, markets saw top U.S and Chinese trade officials meet in Shanghai for talks in a bid to end a yearlong trade war, despite low expectations for progress and combative remarks from the US President. The next round of talks are scheduled for September.

Specifically in the Eurozone area, Greece’s election proved a positive for the country as the New Democracy party rose to power; the party has promised tax cuts financed by spending cuts in an attempt to support growth. On another note, Italy has continued to avoid censure from Brussels over the capping of its deficit. This, was digested positively with Italian sovereign debt being favoured by investors as Italian yields remained attractive in the region, impacted by the specifics risks. In contrast, Brexit remains a major issue for Europe given the new Prime Minister, Boris Johnson, has already started pinching the EU. He promised that the UK will leave the EU by the end of October no matter what, which led the sterling to tumble.

From the data front, markets also saw that the Eurozone’s manufacturing PMI revised slightly higher to 46.5 in July, still signalling the sharpest deterioration in operating conditions since December 2012. The rate of decline in new orders was the second highest recorded by the survey in just over six years amid ongoing trade tensions, difficulties in the automotive industry and political uncertainties, with new export orders falling the most since November 2011. Also, output fell the most since April 2013, whilst the reduction in purchasing activity was the steepest seen since the end of 2012. Both employment and stocks of purchases fell the most in nearly six years. On the price front, input costs dropped the most since April 2016 while output charges fell for the first time in three years. Looking ahead, business sentiment was the weakest since the end of 2012. Thus, an indeed tough month to which monetary politicians will need to look closely.

In the month, European High Yield gained 0.794 percent, trading tighter than their U.S. counterparts did.

In the month of July, the Manager opted in de-risking the portfolio due to specific risks – a move to protect the year-to-date performance. In addition, the Manager opted to take a tactical allocation by opening a position in a Portuguese Republic Government Bond to benefit from possibly a more easing tone by the ECB, in addition to the possibility that the country will be upgraded or have a positive change in outlook shortly. Going forward, the Manager believes that the maintained accommodative stance by leading central banks will sustain credit markets.

Factsheet

  • NAV/Price: Click here for latest Price

    Sub-Fund Name Euro High Income Bond Fund (Accumulator)
    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 30th May 2013
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Weekly
    Fund Size €45.2 mn
    Number of Holdings 95
    Initial Charge up to 2.5%
    Management Fee 1%
    Dividend Payment Dates 31 March 30 September
    ISIN numbers EUR – MT7000007761
    Minimum Initial Investment € 2,500
    Minimum Additional Investment € 500

    Historical Performance to Date (Euro)

    Performance History **

    Calendar Year Performance  YTD 2018 2017 2016 Since Inception*
    Share Class A – Total Return 5.30 -6.45 5.32 4.96 13.70
    Rolling 12 month performance to last month end 25/07/18

    31/07/19

    26/07/17

    25/07/18

    27/07/16

    26/07/17

    29/07/15

    27/07/16

    Share Class A – Total Return 0.85 -0.85 5.69 0.89

    * The Accumulator Share Class (Class A) was launched on 29 May 2013.

    Top 10 By Country*

    Country %
    Malta 12.5
    France 11.2
    Germany 10.2
    Spain 8.2
    Brazil 6.6
    USA 5.2
    Switzerland 4.6
    Russia 3.2
    UK 3.1
    Ireland 2.8

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 49.3
    5 – 10 years 16.0
    10 years+ 0.3

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    5.00% Nidda Bondco 2025 2.2
    4.125% HP Pelzer 2024 2.2
    4.00% Chemours 2026 2.1
    6.00% Loxam 2025 2.1
    5.00% Tendam 2024 2.0
    2.25% Portugal Gov’n 2034 2.0
    5.875% Selecta 2024 1.8
    7.50% Garfunkelux 2022 1.7
    7.00% Marb Bondco 2024 1.6
    6.75% Promontoria 2023 1.6

    By Credit Rating*

    Credit Rating %
    BBB 18.0
    BB 24.9
    B 30.5
    CCC+ 1.8
    Less than CCC+ 0.7
    Not Rated 9.9
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 84.8
    USD 15.2
    Others 0.0

    Asset Allocation

    Currency %
    Cash 8.9
    Bonds 85.7
    CIS/ETFs 5.3

    Sector Breakdown*

    Sector %
    Financial 24.8
    Consumer, Cyclical 14.1
    Consumer, Non-Cyclical 10.2
    Industrial 9.2
    Basic Materials 8.5
    Communications 6.2
    Energy 5.0
    Government 4.4
    Utilities 1.7

    *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 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.