• bond-fund-EUR

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 45 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 2016 Commentary

December is characteristically a strong month for credit, and this time was no exception. Coming on the back of what had been a gruelling start to Q4, credit had its fair share of weakness during the months of October and November, December turned out to be a rather positive month for the asset class. Trading activity and news flows are generally muted towards the second half of the month due to the festive period, with some moves exacerbated due to thin trading volumes, so the major focus of investors was the first couple of weeks, and they had quite a handful of events and data points to contend with.

The outcome of the Italian constitutional referendum in the first weekend of the month was very much priced in, despite the potential negative headlines and implications for the Italian banking system and possible spill-over into the European banking sector. Investor’s major focus was clearly the 2 key central bank meetings by the ECB and the US Federal Reserve during the first and second weeks of the month respectively.

During the December rate-setting meeting, ECB’s Draghi confirmed that the program would be extended by an additional 9 months and the rate of monthly purchases reduced by €20bn to €60bn. This continued to exacerbate the shift in risk aversion away from the less risky alternatives to asset classes having higher prospects of returns in the wake of expected improvement in economic data, prompting a pronounced re-pricing in sovereign bond yields.

On the other hand, Fed Chairperson Yellen raised interest rates by 25 basis points, indicating that in 2017 there could be yet another three rate hikes should positive economic conditions persist and warrant such as move. This had an adverse effect on Emerging Market credit and prompted a marked re-pricing in sovereign yields across the Atlantic with the benchmark sovereign yields reaching peaks mid-way through the month, only to retreat thereafter by the end of the month.

Following the volatility witnessed during the early stages of the month, mainly on the back of the 2 central bank meetings and Italian referendum, and aftermath of US elections, yields stabilised and in view of this, credit ended the month in positive territory with European Investment Grade and European High Yield credit registering a total return of 0.53% and 1.74% respectively.

During the month, the Manager allocated a position within the newly issued Thomas Cook bond issue, in addition to an allocation to the U.S. chemical company, Chemours which was still relatively attractive in terms of relative value. From the sovereign front, in the initial days of the month, the Manager continued to trim its exposure to the local long-term sovereign curve, which proved imperative following the recent volatility in sovereign yields. In 2016, the Manager also managed to reduce the fund’s volatility following the reduced exposure in financial names which tend to increase the portfolio’s beta accordingly. This also proved crucial in holding a more stable capital throughout the year.

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 €48.5mn
    Number of Holdings 77
    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 %
    Great Britain  8.3%
    France 8.1%
    Germany 6.7%
    Spain 5.5%
    United States 4.7%
    Italy 4.5%
    Luxembourg 4.3%
    Switzerland 3.4%
    Malta 3.1%
    Ireland 2.7%

    *including exposures to CIS

    Maturity Buckets*

    Age %
    0 – 5 years 46.4%
    5 – 10 years 20%
    10 years+ 2%

    *based on the Next Call Date

    Performance History (expressed in % terms) *

    Sep Oct Nov Dec YTD
    2014 -0.53 -0.48 0.17 -0.88 1.88
    Sep Oct Nov Dec YTD
    2015 -1.67 2.65  0.07  -1.65 -0.86

    * 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.interest gained through compounding.

  • Performance to Date (Euro)

    By Credit Rating*

    Credit Rating %
    BBB 15.4%
    BB 23.3%
    B 27.4%
    CCC+ 1.3%
    Less than CCC+ 0%
    Not Rated 2.2%
    Average Credit Rating BB

    *including exposures to CIS

    Currency Allocation

    Currency %
    EUR 100.0%
    Others 0.0%

     

    Asset Allocation

    Currency %
    Cash 23.9%
    Bonds 69.6%
    CIS/ETFs 6.4%

     

    Sector Breakdown*

    Sector %
    Financial 20.4%
    Communications 10.2%
    Consumer, Cyclical 8.6%
    Basic Materials 8.5%
    Consumer, Non-Cyclical 6.8%
    Industrial 6.3%
    Energy 3.6%
    Utilities 2.9%
    Government 2.4%

    *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.​