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Euro High Income Bond Fund

  • INVESTMENT OBJECTIVES

    The CC Euro 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

October 2019 Commentary

In the month of October, markets welcomed signs of easing tensions between the U.S. and China, with a remarkable progress in terms of signing phase one of a trade deal. From a monetary perspective, Central Banks maintained their dovish stance in line with the yet soft inflation figures, while the Federal Reserve cut interest rates for the third time in 2019. The more benevolent news was reflected in an upward movement in core government bond yields as opposed to the record tightening experienced in the precious months.

In Europe, economic data continues to pile pressures for fiscal stimulus with manufacturing PMI remaining flat at 45.7, while services PMI ticked slightly upwards. Likewise, consumer confidence continued to be impacted by negative economic data with a reading of negative 7.6 percent, the lowest since December last year. In this regard, looking at the struggling economic data, markets are hoping that the incoming ECB President, Christine Lagarde, will further ease monetary policies, if possible. With the latter being questioned, her challenge revolves around whether she will manage to convince politicians to implement a fiscal plan.

In addition to, to the surprise of markets, Prime Minister Boris Johnson was able to agree a new Brexit deal with the European Union. The new deal gained more support in the House of Commons; however, members of parliament refused to approve rushing through the legislation process in order to leave the EU on the 31 October deadline. This meant an extension to the departure deadline was agreed to 31 January 2019. A general election will now be held on 12 December, as the prime minister seeks a new parliamentary majority to pass his deal.

 Looking at the fixed income asset class per se, despite the upward movements in the last week of October, government bond yields closed the month on a positive note following strong gains in the first weeks of the month. Thus topping their impressive run on a year-to-date basis. European High Yield traded relatively flat on a total return basis given the supportive income stream, while from a price return perspective, throughout the month spreads widened as weakness in economic data persisted.

The CC Euro High Income fund closed the month flat in line with core HY benchmarks. Throughout the month, the Manager continued to seek value in a very difficult yielding market, as companies continue to take an opportunistic approach and re-finance at lower yields. In this regard, the Manager increased its exposure to Banco Santander on an attractive valuation level, while it continued to manage the fund’s volatility.

 

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Euro High Income Bond Fund (Distributor)
    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 Advocates
    Launch Date 1st September 2011
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Weekly
    Fund Size €43.4 mn
    Number of Holdings 92
    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 2013 2012 2011*** Since Inception***
    Share Class D – Total Return 6.43  17.07  -0.75  35.63
    Calendar Year Performance YTD 2018 2017 2016
    Share Class D- Total Return 4.98 -6.44 5.31 4.97
    Rolling 12 month performance to last month end 31/10/18   30/10/19 25/10/17   31/10/18 26/10/16   25/10/17
    Share Class D- Total Return 2.09 -3.72  5.87

    *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 %
    Malta 13.3
    France 12.5
    Germany 10.0
    Spain 8.2
    Brazil 7.0
    USA 5.4
    Switzerland 4.8
    Russia 3.4
    Ireland 2.9
    UK 2.8

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 49.9
    5 – 10 years 18.7
    10 years+ 0.3

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    5.00% Nidda Bondco 2025 2.4
    4.125% HP Pelzer 2024 2.3
    2.25% Portugal Gov’n 2034 2.1
    5.00% Tendam Brands 2024 2.1
    4.00% Chemours 2026 2.1
    6.00% Loxam 2025 2.1
    5.875% Selecta 2024 1.9
    7.50% Garfunkelux 2022 1.8
    7.00% Marb Bondco 2024 1.7
    6.75% Promontoria 2023 1.7

    By Credit Rating*

    Credit Rating %
    BBB 18.8
    BB 27.6
    B 28.0
    CCC+ 2.4
    Less than CCC+ 0.0
    Not Rated 10.6
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 84.0
    USD 16.0
    Others 0.0

    Asset Allocation

    Currency %
    Cash 7.0
    Bonds 87.4
    CIS/ETFs 5.6

    Sector Breakdown*

    Sector %
    Financial 25.4
    Consumer, Cyclical 14.8
    Consumer, Non-Cyclical 10.7
    Industrial 8.5
    Basic Materials 8.0
    Communications 6.7
    Energy 5.3
    Government 4.7
    Utilities 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. 

*LAST 6 MONTHS DISTRIBUTION YIELD (ANNUALISED) (31/03/2019 – 30/09/2019) 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 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.