• Euro High Income Bond Fund_Banner-02

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

May 2019 Commentary

Risky assets struggled in May as trade war uncertainties emerged once again. The selloff that began in early May came as optimism over a trade agreement between the US and China turned to pessimism when negotiations hit a roadblock. In addition to, Mexico is now in the tariff loop after Trump threatened tariffs if illegal immigration is not handled.
Markets were caught by surprise as the trade-war saga seemed to be on the verge of a deal. However, the once again unpredictable Trump, triggered market volatility. Indeed, the saga extension has continued to build recession fears, which in turn triggered an exodus from risky assets into the more considered safer heavens, such as government bonds. Indeed, we’ve seen the 10-year Bund turning to negative levels of circa 0.201 percent from January’s positive 0.2 percent levels.

European High Yield suffered in the month given the risk-off mode, with spreads ticking the 434 bps levels. Liquidity has also had its weighting as we’ve experienced wider spreads, which in turn impacted valuation prices.

It must be said that the euphoria we had seen in the first three months of the year seemingly dissipated in May and was not strong to clock in another positive month. European High Yield was down 1.38% not only due to Trade War fears but also due to the ongoing uncertainty relating to Brexit and the Italian economy.

Indeed, in May, the Manager was faced with the aforementioned headwinds of volatility. Despite, the recently increased cash levels and the exposure to government bonds, this wasn’t sufficient to mitigate the volatile market. The Manager still believes that eventually the trade war saga would be resolved and in this regard, we should seem a positive sentiment. The Manager will continue to monitor the appropriate timing to deploy its current cash levels, in line with its objective.

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 €45.1 mn
    Number of Holdings 94
    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 3.81 -6.45 5.32 4.96 12.09
    Rolling 12 month performance to last month end 30/05/18

    29/05/19

    31/05/17

    30/05/18

    25/05/16

    31/05/17

    27/05/15

    25/05/16

    Share Class A – Total Return -0.59 -0.32 6.48  -1.44

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

    Top 10 By Country*

    Country %
    France 11.2
    Malta 10.3
    Germany 10.0
    Spain 8.2
    Brazil 6.5
    USA 5.3
    Switzerland 4.7
    Russia 3.2
    UK 3.1
    Ireland 2.8

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 50.7
    5 – 10 years 16.6
    10 years+ 0.3

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    4.125% HP Pelzer 2024 2.3
    4.00% Chemours 202 2.2
    5.00% Nidda Bondco 2025 2.2
    6.00% Loxam 2025 2.1
    5.00% Tendam 2024 2.0
    5.875% Selecta 2024 1.8
    6.25% Synlab 2022 1.8
    6.75% Promontoria 2023 1.7
    7.00% Marb Bondco 2024 1.6
    4.00% Sappi Papier 2023 1.6

    By Credit Rating*

    Credit Rating %
    BBB 15.8
    BB 24.7
    B 32.7
    CCC+ 2.3
    Less than CCC+ 0.7
    Not Rated 9.7
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 85.3
    USD 14.7
    Others 0.0

    Asset Allocation

    Currency %
    Cash 10.4
    Bonds 85.9
    CIS/ETFs 3.7

    Sector Breakdown*

    Sector %
    Financial 24.2
    Consumer, Cyclical 14.6
    Consumer, Non-Cyclical 11.4
    Industrial 9.4
    Basic Materials 8.5
    Communications 6.6
    Energy 5.0
    Government 3.6
    Utilities 1.7

    *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. 

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.