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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

December 2019 Commentary

As anticipated, tensions between the U.S. and China eased toward the end of the year, following a phase-one deal agreement between the two most powerful economies in the world, which in turn diminished trade war escalations. This boosted confidence and lessened uncertainty across markets, which closed-off the year with remarkable gains, particularly within the equity space. The news came after 20 months of on-and-off negotiations and tariff escalations that unsettled markets and damped global economic growth.

Although a phase-one deal proved important to avoid a direct impact on the consumer at large, some of the biggest sources of strain in the bilateral relationship, such as China’s use of industrial subsidies and state-owned enterprises were left at bay, leaving these thorny issues to a later stage.

In Europe, markets eagerly awaited economic data points, in order to shed further light on the direction of the economy. The region’s composite PMI remained unchanged at 50.6 in December, slightly below market expectations of 50.7. Meanwhile, Eurozone’s inflation rate rose to 1.3 percent year-on-year in December 2019, from 1 percent in the previous month. It is worth noting that the latter rate is the highest since June, and was mainly boosted by a rebound in energy prices and a faster increase in unprocessed food costs.

Furthermore, on the political front, Boris Johnson as predicted won big at the UK general election, paving way for Brexit to take place. The expectation of, along with the emphatic victory itself, resulted in the sterling registering one of its biggest ever one-day gains. Similarly, upon the news, which have somewhat diminished uncertainties, the UK 10 year yield increased to 0.82%, the highest since August.

Looking at the fixed income asset class per se, government bond yields continued to trade within a range, as investors continued to be conditioned by the better than expected economic data. Indeed, the mostly sought benchmark, the German Bund closed the month at -0.19 percent, up from -0.28 percent at the beginning of the same month. The risk-off mode in the last days of the year was also reflected in risky bonds with European HY registering a monthly gain of 0.97 percent.

The CC Euro High Income fund closed the month on a strong tone by locking in a 1.6 percent gain, thus outperforming its internal comparable benchmark by circa 0.63 percent, while the fund posted a 7.5 percent performance net of fees for 2019. The main outperformance was brought about by Aldesa, the Spanish construction company, which saw its’ price surging following the announcement that China Railways will be acquiring 75 percent of the company. Furthermore, the higher beta names, such as CMA CGM, the French container and shipping company, continued to perform well on easier trade tensions, in addition to the announcement by the company of asset disposals.

Moving into 2020, the Manager believes that returns within the fixed income space will be primarily generated through the carry trade. Central Banks will continue to be accommodative, a positive for credit markets, however one should also consider the current tight spreads at which risky assets are trading. In this regard, the Manager will continue to adopt its bottom-up approach in order to identify value.

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 €44.0 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 Since Inception*
    Share Class A – Total Return 7.48 -6.45 5.32 16.05
    Rolling 12 month performance to last month end 31/12/18   31/12/19 31/12/17 31/12/18 31/12/16  31/12/17 31/12/15  31/12/16
    Share Class A – Total Return 7.48 -6.45 5.32 4.96

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

    Top 10 By Country*

    Country %
    Malta 13.0
    France 12.8
    Germany 11.0
    Spain 8.1
    Brazil 7.7
    Switzerland 5.7
    USA 5.4
    Russia 3.4
    Ireland 2.9
    UK 2.8

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 50.1
    5 – 10 years 18.6
    10 years+ 0.3

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    5.00% Nidda Bondco 2025 2.4
    4.125% HP Pelzer 2024 2.3
    6.00% Loxam 2025 2.1
    5.00% Tendam Brands 2024 2.1
    4.00% Chemours 2026 2.1
    2.25% Portugal Treasury 2034 2.1
    5.875% Selecta 2024 1.9
    7.50% Garfunkelux 2022 1.8
    7.00% Marb Bondco 2024 1.7
    6.50% CMA CGM 2022 1.7

    By Credit Rating*

    Credit Rating %
    BBB 18.6
    BB 25.1
    B 30.9
    CCC+ 2.2
    Less than CCC+ 0.0
    Not Rated 10.4
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 84.1
    USD 15.9
    Others 0.0

    Asset Allocation

    Asset %
    Cash 5.5
    Bonds 88.9
    CIS/ETFs 5.5

    Sector Breakdown*

    Sector %
    Financial 25.9
    Consumer, Cyclical 16.1
    Consumer, Non-Cyclical 10.8
    Industrial 8.5
    Communications 7.5
    Basic Materials 7.0
    Energy 5.2
    Government 4.6
    Utilities 1.8

    *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.