• CC FUNDS 2018_WEB BANNER EURO-01 (1)

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

August 2018 Commentary

Reflecting on the performance in credit markets for the month of August, one should not be surprised that the asset class per se continues to be conditioned by both monetary decisions, and the political turmoil, which seems to be non-exhaustive. The month of August was characterized by the asset class per se trading sideways as investors were partially comforted by the trade agreement reached between Mexico and the U.S., in addition to some hope that the China-U.S. trade war issues might pave the way for more promising discussions.

The euro-zone area is experiencing a different path, despite an initial second quarter GDP growth print of 0.3% quarter-on-quarter, in line with the pace seen in the first three months of the year. This was supported by a rebound in economic activity in Germany as well as the Netherlands and Portugal. By contrast, economic growth in Italy was weaker relative to the first quarter. Italy’s political and banking instability continues to loom on Italian assets, which lately pushed Fitch to revise its outlook to negative, while reaffirming its BBB rating. On a year-to-date basis European HY is down 0.13 per cent, medium dated sovereign bonds are down 1.1 percent, while long dated sovereign debt closed flat in the month, while on a year-to-date basis are up by circa 1.4 percent.

It is no secret that from a monetary tightening perspective, credit markets dislike interest rate hikes and this is why we believe that the asset class will suffer in the short-term. In this regard, is it also imperative to be very selective within the fixed-income asset class. However, we still believe that the recent volatility is at times overshooting when considering that the market is being very sensitive not to decisions or rumors, but mainly to tweets.

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 €49.7 mn
    Number of Holdings 93
    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  34.92
    Calendar Year Performance YTD 2017 2016 2015
    Share Class D- Total Return -2.30 5.31 4.97 -0.86
    Rolling 12 month performance to last month end 30/08/17

    29/08/18

    31/08/16

    30/08/17

    26/08/15

    31/08/16

    27/08/14

    26/08/15

    Share Class D- Total Return -1.12 5.04  3.31  -1.91

    *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 %
    Germany 10.4
    France 9.4
    Spain 8.0
    Malta 7.3
    Luxembourg 6.8
    Great Britain 5.9
    United States 5.3
    Brazil 5.3
    Netherlands 4.4
    Switzerland 3.9

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 53.7
    5 – 10 years 18.7
    10 years+ 1.9

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    4.125% HP Pelzer 2024 2.2
    4.00% Ineos 2023 2.1
    4.00% Chemours 2026 2.0
    6.50% Lecta 2023 1.9
    7.25% Aldesa 2021 1.7
    6.25% Sylnab 2022 1.7
    7.50% Garfunkelux 2022 1.6
    6.50% CMA 2022 1.6
    5.00% Nidda Bondco 2025 1.6
    4.00% Sappi Papier 2023 1.5

    By Credit Rating*

    Credit Rating %
    BBB 17.8
    BB 26.3
    B 33.2
    CCC+ 1.2
    Less than CCC+ 1.3
    Not Rated 6.6
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    EUR 87.9
    USD 12.1
    Others 0.0

    Asset Allocation

    Currency %
    Cash 9.1
    Bonds 87.5
    CIS/ETFs 3.3

    Sector Breakdown*

    Sector %
    Financial 24.3
    Consumer, Cyclical 14.8
    Consumer, Non-Cyclical 10.9
    Industrial 10.7
    Basic Materials 10.5
    Communications 6.6
    Energy 4.5
    Utilities 2.9
    Government 1.9

    *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 (01.04.2017-31.03.2018) 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.