• CC FUNDS 2017_WEB BANNER EURO-02

High Income Euro Accumulator

  • INVESTMENT OBJECTIVES

    The CC 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

April 2018 Commentary

April was a relatively muted month for credit, in terms of economic data releases, insignificant swings in earnings announcements of high yield issuers, whilst the primary market, despite showing some signs of revival, remained tepid. Geopolitical tensions have not escalated; on the contrary they got swept under the carpet, at least for the time being. Both Korean countries have agreed to begin some form of communication and vowed to tackle nuclear issues; Trump has toned down his instigative tone. The volatility witnessed during the month of March and beginning of April seemed to have somewhat subsided towards the end of the month and markets reacted positively.

In the Eurozone, the economy seems to have peaked in the last quarter of 2017, however ECB’s Draghi’s tone remained upbeat about the outlook for the Eurozone. Having said that, yields are expected to rise from current lows, and we did in fact witness the German Bund edging higher for the month. Also, we expected QE and CSPP to be terminated by the end of the year, and the market
seems to be commensurate with this view.

Risks are present however, as both European and US corporate have re-leveraged significantly over the past few years, taking advantage of historically low yields. In the event of a marked economic slowdown on either side of the Atlantic pond could result in a significant risk off mode and widening of spreads. But we believe we are not there yet, and hence credit should remain supported in the interim. It therefore comes as no surprise that large swings in the euro/dollar currency pair, benchmark yields and economic data prints will be given close scrutiny by market participants in the second quarter of 2018.

In its rate-setting meeting, the ECB remained market friendly as Draghi issued no major announcements at the end of the QE program, or any major shifts in policy with the ECB President performing keeping his neutral tone. Elsewhere in the US, earnings season is in full swing and this is infiltrating in the performance of credit and equity markets over recent sessions. But the investor’s key focus was the FOMC meeting which the markets will be given a great deal of importance to the committee’s inflationary expectations, particularly following the spike in the US 10-year Treasury to above the 3.00% level as well as the marked strengthening of the US dollar of late.

Overall, fundamentally, not much has changed. And this could prove supportive for credit, in the shorter term, aiding spreads tighter slowly across the board. We do not expect issuance volumes to pick up from here and all looks set for a smooth transition into the quieter summer months, but nonetheless, we do acknowledge that credit markets remain extremely fluid.

Factsheet

  • NAV/Price: Click here for latest Price

    Sub-Fund Name High Income Bond Fund – EUR (Accumulator)
    Investment Manager Calamatta Cuschieri Investment Management Ltd
    Fund Advisor DF – Asset Allocation (Lugano, Switzerland)
    Custodian Sparkasse Bank Malta p.l.c.
    Fund Administrator Calamatta Cuschieri Fund Services Ltd.
    Auditors Deloitte Malta
    Legal Advisors Ganado & Associates
    Launch Date 30th May 2013
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Weekly
    Fund Size €49.8mn
    Number of Holdings 80
    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

    Performance History **

    Calendar Year Performance  YTD 2017 2016 2015 Since Inception ***
    Share Class A- Total Return -0.58 5.32 4.96 -0.89 14.75
    Rolling 12 month performance to last month end 26/04/1725/04/18 27/04/1626/04/17 29/04/1527/04/16 30/04/1429/04/15
    Share Class A- Total Return 2.29 5.72  -2.36  1.83

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

    Top 10 By Country*

    Country %
    Germany 13.7
    France 9.2
    Spain 8.3
    Great Britain 6.7
    Luxembourg 6.6
    United States 5.2
    Brazil 5.1
    Malta 4.7
    Switzerland 3.7
    Netherlands 3.1

    *including exposures to CIS

    By Credit Rating*

    Credit Rating %
    BBB 21.2
    BB 25.1
    B 36.8
    CCC+ 1.2
    Less than CCC+ 1.2
    Not Rated 4.4
    Average Credit Rating BB-

    *excluding exposures to CIS

  • Top 10 Exposures %

    Exposure %
    4.125% HP Pelzer 2024 2.2
    6.125% Chemours 2023 2.0
    4.00% Ineos 2023 2.0
    9.25% EIB 2018 1.9
    6.50% Lecta 2023 1.8
    5.25% Intralot 2024 1.8
    7.25% Aldesa 2021 1.8
    6.25% Sylnab 2022 1.6
    7.50% Garfunkelux 2022 1.6
    6.25% Banco Santander 2166 1.6

    Historical Performance to Date (EUR)

    Currency Allocation

    Currency %
    EUR 86.7
    USD 11.4
    Others 1.9

    Asset Allocation

    Currency %
    Cash 8.8
    Bonds 88.0
    CIS/ETFs 3.2

     

    Maturity Buckets*

    Age %
    0 – 5 years 58.5
    5 – 10 years 14.4
    10 years+ 1.8

    *based on the Next Call Date

    Sector Breakdown*

    Sector %
    Financial 25.5
    Consumer, Cyclical 14.9
    Consumer, Non-Cyclical 11.0
    Basic Materials 10.2
    Industrial 8.7
    Communications 7.2
    Energy 4.0
    Government 3.8
    Utilities 2.7

    *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. 

*LAST 12 MONTHS DISTRIBUTION YIELD (01.04.2017-31.03.2018) SOURCE: CALAMATTA CUSCHIERI INVESTMENT MANAGEMENT. PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE PERFORMANCE. 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 CALAMATTA CUSCHIERI FUND 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.