• CC FUNDS_OCTOBER_2018

High Income Bond Fund Euro Distributor

  • INVESTMENT OBJECTIVES

    The CC High Income Bond Fund Distributor aims to maximise the total level of return for investors through investment in a diversified portfolio of Bonds. 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
→ Dividend Re-Payment
→ Monitoring and Pricing
→ Entry and Exit Fees
→ Minimum Investment
→ Fund Rules at a glance
→ Target dividend
→ Other Information

Commentary

December 2018 Commentary

The last few months leading up to December have not been kind on investors – volatility was the ultimate culprit. Concerns about slowing global growth, tightening monetary policies, and geopolitical uncertainty, among other factors, have made markets vulnerable and pushed valuations to the levels which are now tempting.

The G-20 summit in December was a crucial meeting which investors were anxiously waiting, which despite in all fairness a positive tone emerged, it wasn’t sufficient to convince investors that a deal will be imminently struck. This was witnessed in the last part of the month where markets were rattled and led equity markets and other risky assets testing investors’ nerves.

Furthermore, despite expected by most market participants, the major event that sent bond prices falling further was the fourth interest hike set by the Fed. We are of the view that market participants were expecting the hike, but in addition they were also expecting a more dovish Fed, given the volatility being experienced in the month. Fairly put, the decision was based on economic data which was still in line with the more benevolent data-low unemployment and inflation close the Fed’s target.

Credit investors could not catch a break this year even though they hoped to see some form of good news. 2018 has been extremely challenging and the year closed with amplified volatility primarily due to a forecasted global growth slowdown. If markets correct or if they rise from this point forth, the next question, or rather challenge would be how best to position portfolios for 2019. Going into 2019, investors will still be faced with uncertainties, namely the trade war saga, but also the geopolitical tensions, primarily Brexit and the relatively unstable Italian government.

Given the uncertain levels, the Investment Manager in the month of December, opted in reducing the portfolio’s beta by reducing its financial exposure, which proved a bright decision given the volatility experienced in the last week of the year. At this point in time, the Manager believes that the cash levels within the fund are crucial to dip into the now more attractive valuations, once markets will have a clearer outcome from the trade-war saga.

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name High Income Bond Fund – EUR (Distributor)
    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 Advocates
    Launch Date 1st September 2011
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Weekly
    Fund Size €45.9 mn
    Number of Holdings 91
    Initial Charge up to 2.5%
    Management Fee 1%
    Dividend Payment Dates 31 March – 30 September
    ISIN numbers EUR – MT7000003059
    Minimum Initial Investment € 2,500
    Minimum Additional Investment € 500

    Historical Performance to Date (Euro)

    Performance History **

    Calendar Year Performance 2012 2011*** - Since Inception ***
    Share Class D – Total Return 17.07  -0.75  29.20
    Calendar Year Performance YTD 2017 2016 2015
    Share Class D- Total Return -6.44 5.31 4.97 -0.86
    Rolling 12 month performance to last month end 31/12/17

    31/12/18

    31/12/16

    31/12/17

    31/12/15

    31/12/16

    31/12/14

    31/12/15

    Share Class D- Total Return -6.44 5.31  4.97  -0.86

    *Data in the chart does not include any dividends distributed since the Fund was launched on 1st September 2011.

    **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.

    *** The Distributor Share Class (Class D) was launched on 01 September 2011.

    Top 10 By Country*

    Country %
    France 9.0
    Germany 8.7
    Malta 7.9
    Spain 7.0
    Brazil 5.9
    Luxembourg 5.6
    United States 5.4
    Netherlands 4.1
    Switzerland 4.0
    Great Britain 4.0

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 48.9
    5 – 10 years 19.9
    10 years+ 0.9

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    4.125% HP Pelzer 2024 2.2
    4.00% Ineos 2023 2.2
    4.00% Chemours 2026 2.1
    5.00% Nidda Bondco 2025 1.9
    6.50% Lecta 2023 1.8
    6.25% Sylnab 2022 1.8
    6.5% CMA CGM 2022 1.6
    4.00% Sappi Papier 2023 1.6
    7.50% Garfunkelux 2022 1.6
    7.00% Marb 2024 1.4

    By Credit Rating*

    Credit Rating %
    BBB 15.7
    BB 26.0
    B 32.1
    CCC+ 1.3
    Less than CCC+ 0.7
    Not Rated 7.8
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 86.6
    USD 13.4
    Others 0.0

    Asset Allocation

    Currency %
    Cash 12.9
    Bonds 83.6
    CIS/ETFs 3.5

    Sector Breakdown*

    Sector %
    Financial 22.0
    Consumer, Cyclical 12.6
    Consumer, Non-Cyclical 11.4
    Basic Materials 10.9
    Industrial 8.4
    Communications 6.4
    Energy 4.9
    Government 4.7
    Utilities 1.6

    *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 (01/10/2017 – 30/09/2018) 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.