• 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

March 2017 Commentary

Credit markets across both sides of the Atlantic, and beyond had a mixed month and had muted returns within some regions, notably in European High Yield and Emerging Market High Yield markets, both registering gains of 0.08%. Investment Grade credit and sovereign markets ended the month in negative territory in March, both in Europe and the US, for varying reasons.

Whilst the European economy closed off the quarter with a string of positive economic data and an even better Q4 earnings season, the political scenario continued to take its toll on investor sentiment, with the weakness witnessed in peripheral sovereigns dragging corporate bonds in the region lower and spreads on such bonds wider. Despite this, the sharp cost savings by high yield issuers as witnessed by the recent wave of refinancing of bonds previously issued with large coupons placed such high yield bonds in a better footing in terms of credit metrics. This coupled with the abundance of liquidity in the market and the persistent search for yield kept prices supported albeit the carry trade was a major contributor for European High Yield returns during the month. In the meantime, fixed income markets focused instead on renewed expectations that the ECB will maintain a dovish tone for longer, and sovereign yields dropped quickly again. Unsurprisingly, the longer they remain low, the better supported credit remains.

Towards the end of the month, the UK formally handed over notification of its intentions to leave the European Union following the infamous Brexit referendum last June, with the expected date to leave the union being set at 19 March 2019. The event was a clear headline grabber but did nothing to rattle the markets, as it had just become a formality, with valuations clearly pricing in this likelihood.

In the US, the new administration’s failure to thread along with the newly proposed healthcare legislation coupled with its persistent delay in placing climate change regulation high on its agenda has had the market raising eyebrow’s on Trump’s willingness and capability of sticking to and implementing its pre-electoral promises, particularly due to the fact that pre elections these were being viewed as market-friendly policies. More recently, Trump’s relation with North Korea is quickly turning sour and has done little to do anything to shed any ray of hope of improving Trump’s market ratings. The slump in the price of oil mainly on the back of intentions by OPEC members to refuse from scaling back on production has been a cause for supply-related concerns, resulting in a slide in the price of oil by over 6% during the month, dragging with it a large portion of the US High Yield market.

The positive momentum witnessed in emerging markets in the first months of the year rippled into the month of March as the pickup in global economic activity in the developed and emerging economies spurred demand for EM assets. Trade activity picked up as did inflationary data points across selective emerging market economies whilst investor appetite improved on the back of a marked weaker US dollar. EM were unshaken by the rate hike by the US Federal Reserve earlier on in this month, as this move was pretty much priced in, whilst the weakness in the US dollar towards the end of the month over failed healthcare negotiations pushed EM higher. The meat scandal in Brazil did little to deter the positivity in the asset class as investors swiftly shrug off the negative news and tread along with the continuous global search for yield.

In the month, the Manager continued to seek relative value by exploring the B rated segment. In fact, a newly position was opened in Intralot, the gaming operator, which was trading wide by circa 120bps to the gaming benchmark. To-date the position proved to be in line with the Manager’s expectations following the positive results issued by the company towards the end of the month. In addition, the Manager opted in increasing slightly the portfolio’s beta by adding minimal exposures to financials, which were still offering attractive returns.

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 2016 2015 2014 2013 Since
    Inception *
    Share Class A – Total Return 1.42 4.96 -0.89 1.72 3.56 11.14
    Rolling 12 month performance to last month end 30/03/1629/03/17 25/03/1530/03/16 26/03/1425/03/15  
    Share Class A – Total Return 5.61 -2.57  2.44

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

    Top 10 By Country*

    Country %
    Great Britain 9.6
    Germany 9.1
    France 8.9
    Spain 5.9
    United States 4.6
    Italy 4.5
    Luxembourg 4.3
    Switzerland 3.4
    Malta 3.2
    Netherlands 2.9

    *including exposures to CIS

    By Credit Rating*

    Rating %
    BBB 14.8
    BB 29.3
    B 27.0
    CCC+ 1.9
    Less than CCC+ 0.0
    Not Rated 2.4
    Average Credit Rating BB

    * excluding exposures to CIS

  • Top 10 Exposures

    Exposure %
    4% Ineos 2023 2.1
    6.25% Synlab 2022 1.7
    7.5% Garfunkelux 2022 1.7
    7.0% Lock AS 2021 1.7
    7.0% Wind 2021 1.7
    4.875% Loxam 2021 1.7
    4.75% Grupo Antolin 2021 1.6
    6.625% Bulgarian Tel. 2018 1.6
    6.25% Banco Santander 2049 1.6
    4% Sappi Papier 2023 1.5

     

    Performance to Date (EUR)

    Currency Allocation

    Currency %
    EUR 100
    Others 0.0

    Asset Allocation

    Currency %
    Cash 19.3
    Bonds 75.4
    CIS/ETFs 5.4

    Maturity Buckets*

    Age %
    0 – 5 years 55.4
    5 – 10 years 17.0
    10 years+ 1.9

    *Based on the Next Call Date

    Sector Breakdown*

    Sector %
    Financial 23.4
    Consumer, Cyclical 11.4
    Communications 9.5
    Basic Materials 8.4
    Consumer, Non-Cyclical 7.7
    Industrial 6.9
    Energy 3.3
    Utilities 2.8
    Government 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 BUT 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 MOST RECENT DISTRIBUTION (30TH MARCH) AS A PERCENTAGE OF THE NAV EXPRESSED ON AN ANNUALISED BASIS (SOURCE: CALAMATTA CUSCHIERI INVESTMENT MANAGEMENT).  PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE PERFORMANCE. THE VALUE OF INVESTMENTS, AND INCOME FROM THEM CAN GO DOWN AS WELL AS UP AND INVESTORS MAY NOT GET BACK THE FULL AMOUNT INVESTED. ALL ABOVE MENTIONED FUNDS ARE SUB FUNDS OF CALAMATTA CUSCHIERI FUND SICAV PLC AND ARE 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