• NEW_CC FUNDS 2017_WEB BANNER EURO-01

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

September 2017 Commentary

The third quarter of 2017 ended just as it had begun – credit rallying, spreads tightening, demand for High Yield bonds remaining well intact and Emerging Market credit marching on. US High Yield rose by 2.0% in Q317, European High Yield by a satisfactory 1.75% and Emerging Market Credit in hard currency posted a remarkable 2.95% during the summer. It seems that not even the flurry of action in the primary market towards the end of August and throughout the better part of September was enough to derail the rally we have seen so far this year in credit. In September alone, US high yield, European high yield and Emerging Market bonds returned 0.89%, 0.54% and 0.85% respectively.

We had predicted that, bar any major geo political event, a marked slowdown in the US or an abrupt end to QE in Europe, we saw little scope for the rally in global credit to slowdown, and here we are at the end of September with yet another solid quarter of performance in the bag.

With or without any concrete announcement regarding tapering in Europe nor time for the next US rate hike, demand for high beta sectors both across both sides of the bond as well as Emerging Market credit remained robust and appeared to be the better investment alternative for global investors. These sectors have in fact spearheaded the rally in credit we witnessed for the better part of 2017.

Heading into the last quarter of the year, investors have 9 months of solid performance to enjoy and hold on to, across the various credit asset classes. Thus far, credit has managed to withstand a number of hurdles, namely geo political events, elections, mixed data signals, but the biggest test is yet to come at the crucial October ECB meeting. Here the largest risk is that ECB’s Draghi announces an abrupt halt to the highly successful QE program, disrupting what can be described as a controlled rally in credit. The market is more inclined to believe that some type of announcement of the reduction in QE is imminent, so we would not be ruling out any weakness from this point forth as investors look to protect year-to-date gains.

The final earnings season of the calendar year is imminently upon us, and, together with the key central bank meetings left for the remainder of 2017, markets will also be looking at key economic data in an attempt to grasp the health of both the European and US economies, not only to devise how markets will shape up in the last months of 2017, but, more importantly, how best to position investment portfolios in 2017. The first 4-6 weeks of Q417 is crucial for tactical positioning as heading into the last stretch, liquidity in markets begin to slowly fade come December.

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 & Associates
    Launch Date 1st September 2011
    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 – MT7000003059
    Minimum Initial Investment € 2,500
    Minimum Additional Investment € 500

    Top 10 By Country*

    Country %
    Germany 10.0
    France 9.2
    Great Britain 6.6
    Spain 6.1
    Luxembourg 4.8
    Italy 4.4
    Malta 4.1
    United States 4.0
    Brazil 3.6
    Greece 3.5

    *including exposures to CIS

    Maturity Buckets*

    Age %
    0 – 5 years 57.5
    5 – 10 years 13.9
    10 years+ 1.8

    *based on the Next Call Date

    Performance History (expressed in % terms) **

    Calendar Year Performance  YTD 2016 2015 2014 Since
    Inception ***
    Share Class D- Total Return 4.42 4.97 -0.86 1.88 36.92
    Rolling 12 month performance to last
    month end
    28/09/16

    27/09/17

    30/09/15

    28/09/16

    24/09/14

    30/09/15

    25/09/13

    24/09/14

    Share Class D- Total Return 5.83 4.64  -3.04  6.13

    * 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.

  • Performance to Date (Euro)

    Top 10 Exposures %

    Exposure %
    4.125% HP Pelzer 2024 2.2
    6.125% Chemours 2023 2.0
    4.00% Ineos 2023 2.0
    6.50% Lecta 2023 1.8
    6.00% Intralot 2021 1.8
    5.25% Intralot 2024 1.7
    7.50% Garfunkelux 2022 1.6
    6.25% Synlab Bondco 2022 1.6
    7.00% Wind 2021 1.6
    6.25% Banco Santander 2166 1.6

    By Credit Rating*

    Credit Rating %
    BBB 14.3
    BB 23.8
    B 34.5
    CCC+ 1.4
    Less than CCC+ 1.2
    Not Rated 3.3
    Average Credit Rating BB

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 91.8
    USD 8.2
    Others 0.0

     

    Asset Allocation

    Currency %
    Cash 14.4
    Bonds 81.0
    CIS/ETFs 4.5

     

    Sector Breakdown*

    Sector %
    Financial 26.5
    Consumer, Cyclical 12.4
    Consumer, Non-Cyclical 9.6
    Basic Materials 9.5
    Communications 8.0
    Industrial 6.5
    Energy 4.0
    Utilities 2.8
    Government 1.8

    *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 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.​

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