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High Income Euro 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

March 2019 Commentary

The first quarter of the year was a breath of fresh air for investors from the adverse market condition registered in the latter stages of 2018; markets were bolstered on the back of the dovish approach taken by both the Federal Reserve and the European Central Bank.

Economically speaking, we are seeing positive signs from the trade war talks as President Xi and President Trump have formed a common ground. This has in fact given investors a boost in confidence as assets continued to rally. Having said that, the Investment Managers erred on the cautious side, acknowledging however that global economic data was nothing to be exuberant on.

Throughout the quarter, credit spreads tightened, as benchmark yields were driven lower. Worth mentioning however, that with the sharp decline in yields, spreads ended the quarter well above historical lows, which gives room for further possible spread tightening. There was also a marginal yield curve inversion of US Treasuries at the end of March due to the estimated global growth slowdown. That being said, the soft figures from China have made a U-turn to the positive; from factory activity reaching a three-year low in February, March proved to be a better month as strong manufacturing data was seen. Without a doubt, this helped ease investor worries as markets saw a shift from risk-free assets to more risky assets.

Moreover, Brexit still remains at the forefront of investor uncertainty having ended the month of March with the Parliament not agreeing with May’s divorce plan from the EU. To make matters worse, British lawmakers had to vote on various alternatives on the first day of April only to once again have no plan.

Throughout the quarter, given that the Fed hike proved not to emerge, the Managers opted to increase exposures in credit names that also published positive credit metrics such as Selecta and Gestamp. The fund ended the month close to fully invested leaving sufficient liquidity available however for the expected distribution due at the end of the month. Heading forward, the Investment Manager is of the opinion that we could well see credit markets perform relatively well in line with the more dovish stance and there is further room for credit spreads to tighten.

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 €46.6 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 4.01 -6.45 5.32 4.96 12.31
    Rolling 12 month performance to last month end 28/03/1827/03/19 29/03/1728/03/18 30/03/1629/03/17 25/03/1530/03/16
    Share Class A – Total Return -1.73 2.82 5.61  -2.57

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

    Top 10 By Country*

    Country %
    France 12.8
    Germany 9.8
    Spain 8.6
    Malta 7.8
    Brazil 6.1
    UK 5.1
    USA 5.1
    Switzerland 4.5
    Russia 3.1
    Ireland 2.7

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 52.6
    5 – 10 years 15.6
    10 years+ 0.0

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    4.125% HP Pelzer 2024 2.3
    4.00% Ineos 2023 2.2
    4.00% Chemours 2026 2.2
    5.00% Nidda Bondco 2025 2.1
    6.00% Loxam 2025 2.0
    5.00% Tendam 2024 1.9
    6.50% Lecta 2023 1.8
    6.25% Synlab 2022 1.8
    5.875% Selecta 2024 1.8
    6.75% Promontoria 2023 1.7

    By Credit Rating*

    Credit Rating %
    BBB 16.3
    BB 26.3
    B 33.9
    CCC+ 2.4
    Less than CCC+ 0.7
    Not Rated 7.7
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 85.9
    USD 14.1
    Others 0.0

    Asset Allocation

    Currency %
    Cash 9.2
    Bonds 87.2
    CIS/ETFs 3.6

    Sector Breakdown*

    Sector %
    Financial 21.3
    Consumer, Cyclical 13.6
    Consumer, Non-Cyclical 12.4
    Basic Materials 11.7
    Industrial 9.6
    Communications 6.4
    Energy 4.9
    Government 4.8
    Utilities 1.6

    *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.