• bond-fund-EUR-acc

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 45 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

January 2016 Commentary

The long end of the European sovereign curve upheld its declining momentum, as investors continued to offload their positions in line with improving economic data, as the market increased its expectations that the ECB will tighten its policies going forward. In the month, the European 15-year plus sovereign curve declined by 5.4 percent, while short-dated issues, 1-year to 3-year sovereign bonds, declined marginally by 0.28 percent.

On the contrary, spreads amongst risky bonds continued to tighten with the BOFA Merrill Lynch European High yield Index registering a total return of 0.78 percent. Most of the returns were generated through interest returns, rather than price appreciation.

In the U.S. treasury yields were conditioned by Trump’s chatter in his first days in office. In fact, the 10-year yield fluctuated from highs of 2.53 percent to lows of 2.33 percent. On average, the BOFA Merrill Lynch all maturity Government index declined by 0.1 per cent.

On the contrary, US HY bonds continued to display gains with a monthly total return gain of 1.3 per cent, mainly driven by the attractive yields following the correction witnessed post November’s US Presidential election. Undoubtedly, the market has been pricing-in the expected three rate hikes in 2017 and thus market participants were happy to re-dip in at attractive levels.

Hard currency EM bonds once again emerged as the best performing class amongst its peers with a monthly total return of 2.1 percent. However, what was more interesting is the fact that performance was mainly driven by price returns, with yields lurching lower in line with appreciating EM currencies.

During the month, the Investment Manager continued to reduce its exposure to the long end of the sovereign curve. The Manager added positions into the financial sector with an allocation to Banco Santander in line with improved expectations of the Bank, in addition to its Brazilian subsidiary which continued to display encouraging numbers. Going forward, the Manager perceives that in line with mainly monetary policies, the fixed-income market is expected to adjust accordingly and in this regard the Manager’s main aim is to limit downside volatility.

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 €49.1mn
    Number of Holdings 78
    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 (%) *

    Sep Oct Nov Dec YTD
    2014 -0.53 -0.49 0.16 -0.87 1.72
    Sep Oct Nov Dec YTD
    2015 -1.70 2.65  0.08  -1.65 -0.89

    * Performance figures are calculated using the Value Added Monthly Index “VAMI” principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding.

    Top 10 By Country*

    Country %
    Great Britain 9.7%
    France 8.0%
    Germany 7.3%
    Spain 5.9%
    United States 4.6%
    Italy 4.5%
    Luxembourg 4.2%
    Switzerland 3.4%
    Malta 3.0%
    Netherlands 2.9%

    *including exposures to CIS

    By Credit Rating*

    Rating %
    BBB 15.3%
    BB 24.5%
    B 27.8%
    CCC+ 2.0%
    Less than CCC+ 0%
    Not Rated 2.2%
    Average Credit Rating BB
  • Top 10 Exposures

    Exposure %
    4% Ineos 2023 2.1%
    6.25% Synlab 2022 1.8%
    7% Lock AS 2021 1.7%
    7.0% Wind 2021 1.7%
    7.5% Garfunkelux 2022 1.7%
    4.875% Loxam 2021 1.7%
    4.75% Grupo Antolin 2021 1.7%
    6.625% Bulgarian Tel. 2018 1.7%
    6.25% Banco Santander 2049 1.5%
    4% Sappi Papier 2023 1.5%

     

    Performance to Date (EUR)

    Currency Allocation

    Currency %
    EUR 100%
    Others 0.0%

    Asset Allocation

    Currency %
    Cash 22.8%
    Bonds 71.8%
    CIS/ETFs 5.5%

    Maturity Buckets*

    Age %
    0 – 5 years 48.8%
    5 – 10 years 19.8%
    10 years+ 1.9%

    *Based on the Next Call Date

    Sector Breakdown*

    Sector %
    Financial 20.8%
    Communications 10.5%
    Consumer, Cyclical 8.5%
    Basic Materials 8.4%
    Consumer, Non-Cyclical 8.1%
    Industrial 6.9%
    Energy 3.6%
    Utilities 2.7%
    Government 2.2%

    *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 SEPTEMBER) 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.​