• Global High Income Bond Fund_Banner-02

Global High Income Bond Fund Accumulator

  • INVESTMENT OBJECTIVES

    The CC Global High Income Bond Fund Accumulator aims to maximise the total level of return for investors through investment in a diversified portfolio of Bonds. To achieve this objective, 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

May 2020 Commentary

Risk assets have continued to rally throughout the month of May as the gradual re-opening of economies increased optimism for a V-shaped economic recovery from the virus induced turmoil. The strength of the asset price recovery continues to be buoyed by ongoing strong government policy and central bank interventions. That said, in our view, the propagation of the shock to financial markets due to the virus outbreak remains directly linked to the evolution of the virus and the dynamics of the containment measures.

Credit markets have seen healthier liquidity in secondary markets, as continued central bank support measures played their part coupled with stronger participation from market participants. The primary market increased pace throughout the month of May following a standstill month in March, as many corporates were comforted by central banks intervention which kept volatility low, while appetite in the primary re-emerged.

The more agile approach from the U.S. remains crucial in transmitting market confidence. The U.S. launched an additional $484 billion relief package, including a $321 billion top-up of its funding for small businesses. That takes the fiscal support passed by Congress to nearly $3 trillion to tackle pandemic woes. Moreover, the Federal Reserve built on its “whatever it takes“ approach to help the economy through the coronavirus shock and ensuring markets function properly. According to economists worldwide, the Fed’s balance sheet will more than double to $11 trillion by year-end. Indeed, central bank policy has moved from mostly alleviating the dysfunction of market pricing and tightening of financial conditions to ensuring credit flows to businesses and local governments. The recently announced extraordinary measures by central banks, including purchases of corporate debt provide a favourable back -drop for credit. Even before these measures have come into effect, risk assets have reversed most of the March lows, with subsequent monetary injections expected to further increase asset prices in the medium term.

Indeed, the Fed intervention is anchoring the front-end of the Treasury curve. However, the long-end has sold off on increasing long term inflation expectations with the 5y5y Inflation swap rate hovering at the 1.6 percent levels, way above the inflationary expectations in Europe. The manager therefore expects spreads to widen consequently, with many long-end investors such as pension funds, life insurance companies and many Asian investors soaking up the volume via their focus on yields.

From the macroeconomic front, the U.S. reported an improvement in Manufacturing, with the PMI increasing to 39.8 from 36.1 in May, pointing to a partial revival in the manufacturing sector. Similarly, U.S. Services PMI bounced, with surveys expecting it to increase to 36.9 from 26.7 in the previous month; however, the reported figure was 37.5. Despite the sharp uptick in asset prices, business confidence remains on the fence. Treasury yields remained hovering around record lows, the U.S. mostly sought benchmark; the 10-year Treasury yield, tightened marginally by 0.5 basis points for the month of May, closing the month at 0.641 per cent.

The CC Global High income fund continues to outperform comparatively given its underweight position in Energy names, despite a recovery in the sector as the price of oil recovered substantially from its multi-year lows. In the month of May the fund registered an 8.4 percent increase and continues to outperform its internal comparative benchmark by circa 150bps. Going forward the Manager believes that credit markets will continue to be supported by the actions taken by the Fed as well as the uplift from the easing covid restrictions. To this end, the Manager believes that the fund is well positioned to navigate the current volatile environment.

Factsheet

  • NAV/Price: Click here for latest price

    Sub-Fund Name Global High Income Bond Fund (Accumulator)
    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 & Associates
    Launch Date 30th May 2013
    Domicile Malta
    Currency USD ($)
    Dealing Frequency Weekly
    Fund Size $16.35 M
    Number of Holdings 48
    Initial Charge up to 2.5%
    Management Fee 1%
    Dividend Payment Dates 31 March 30 September
    ISIN numbers USD - MT7000007753
    Minimum Initial Investment $3,000
    Minimum Additional Investment $500

    Historical Performance to Date (USD)

    Performance History **

     Calendar Year Performance YTD 2019 2018 2017 Since
    Inception*
    Share Class A – Total Return -4.81 10.23 -3.22 5.71 3.64
    Rolling 12 month performance to last month end 29/05/19 29/05/20 30/05/18 29/05/19 31/05/17 30/05/18 25/05/16  31/05/17  27/05/15   25/05/16
    Share Class A- Total Return -0.23 4.43 -0.41 9.52 -1.72

    * The Accumulator Share Class (Class A) was launched on 29 May 2013.

    Top 10 By Country*

    Country %
    USA 26.6
    Russia 23.8
    Brazil 11.7
    UK 5.5
    Turkey 4.8
    France 4.8
    Italy 3.5
    Switzerland 3.5
    China 3.2
    Germany 2.3

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 64.9
    5 – 10 years 18.3
    10 years+ 3.7

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShared USD HY Corp 5.9
    7% KB Home 2021 3.9
    6.75% Societe General Perp 3.6
    8.00% Unicredit perp 3.5
    4.75% Lennar Corp 2022 3.2
    5.625% Ineos Group 2024 3.0
    5.25% Sberbank 2023 2.6
    4.1% MMC Norilsk 2023 2.6
    4.00% Veon Holdings 2025 2.5
    5.299% Petrobras 2025 2.5

    By Credit Rating*

    Credit Rating %
    BBB 23.1
    BB 42.5
    B 20.5
    CCC+ 0.8
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB-

    *excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 100.0
    Others 0.0

    Asset Allocation

    Asset %
    Cash 5.9
    Bonds 86.9
    CIS/ETFs 7.2

    Sector Breakdown*

    Sector %
    Financial 22.6
    Basic Materials 15.7
    Consumer, Cyclical 13.0
    Communications 9.5
    Energy 8.6
    Consumer, Non-Cyclical 7.7
    Industrial 3.3
    Technology 2.6
    Government 2.5

    *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. 

CALAMATTA CUSCHIERI INVESTMENT SERVICES LTD. (CCIS) IS LICENSED BY THE MFSA. THE CC GLOBAL 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.