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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

January 2021 Commentary

Consequent to the unprecedented coronavirus pandemic which infected over a 100 million people and led to 2.2 million deaths worldwide, 2020 was a year of extraordinary challenges. Despite the efforts made by governments and central banks to mitigate the impact on the economy, through substantial monetary and fiscal stimulus packages, the global economy (as estimated by the International Monetary Fund) contracted by 3.5 per cent.

Corporate credit, hindered at the peak of the pandemic following growing concerns about their ability to service debt, recovered. Credit spreads previously witnessing substantial widening (reaching significant highs of over 1000bps), tightened, with both investment grade and high yield issuers delivering strong positive total returns. U.S. investment grade and EM high yield outperformed its European counterparts.

2021 started on a somewhat positive note as the vaccine distribution and thus rollout initiated. Nevertheless, investors were concerned as the number of reported coronavirus cases continued to rise, following both the festive period and due to more contagious strains. Albeit January’s Covid-19 related death toll surged in the first month of the year, U.S. drew January to a close with certain signs of progress with coronavirus cases and hospitalisations plummeting.

Data has largely reflected the mood within markets and unfolded as expected. In January, U.S. reported better than expected PMI data for both manufacturing and services. U.S. manufacturing PMI was revised slightly higher to 59.2 in January from a preliminary estimate of 59.1, and higher than December’s 57.1. The data pointed to a record factory growth, due to accelerated expansions in output and new orders. Following a decline in December 2020, U.S. services PMI rose to 57.5 from 54.8 in the previous month, beating market expectations of 53.6 shown by a preliminary estimate. The positive data coming out of the U.S. gives confidence to the notion that activity has tentatively bottomed out and we are now initiating the road towards a resumption of economic activity more in-line with previous norms, particularly as the vaccine roll-out take centre stage. The trend appears to be stronger in the U.S. than its European counterpart.

Within the HY asset space, U.S. high yield performed better than its European counterparts, returning 0.383 per cent. The asset class continued to benefit from the stimulus package and fed commitment to maintain rates low for the foreseeable future.

Throughout the month of January, the CC Global High Income Bond Fund performing largely in line with its benchmark. The CC Global High income fund declined by 0.14 per cent, compared to a 0.16 per cent decline in the benchmark. Throughout the month the Manager continued to seek pockets of value by looking into attractive credit stories, primarily within the metals and mining segment, and China property market.

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 sequential easing of Covid-19 restrictions and vaccination developments.

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 $17.66 M
    Number of Holdings 49
    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 2020 2019 2018 Annualised Since
    Inception*
    Share Class A – Total Return -0.14 3.07 10.23 -3.22 1.49
    Rolling 12 month performance to last month end 29/01/20 29/01/21 30/01/19 29/01/20 31/01/18 30/01/19 25/01/17  31/01/18  27/01/16   25/01/17
    Share Class A- Total Return 2.10 8.48 -1.07 5.47 12.40

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

    Top 10 By Country*

    Country %
    Brazil 13.2
    France 5.0
    Turkey 5.0
    Germany 4.1
    Italy 3.7
    Switzerland 3.3
    Netherlands 2.4
    India 2.3
    China 1.7
    Canada 1.1

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 61.2
    5 – 10 years 19.4
    10 years+ 5.7

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShares USD HY Corp 5.7
    6.75% Societe Generale Perp 3.8
    8% Unicredit Perp 3.7
    6.25% HSBC 2169 3.6
    7% KB Home 2021 3.5
    4.75% Lennar Corp 2022 3.0
    5.625% Ineos Group 2024 3.0
    5.299% Petrobras 2025 2.6
    6.35% Turkey 2024 2.5
    5.75% Turkcell 2025 2.5

    By Credit Rating*

    Credit Rating %
    AAA to BBB- 20.5
    BB+ to BB- 45.7
    B+ to B- 19.7
    CCC+ 0.0
    Less than CCC+ 2.6
    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 4.5
    Bonds 88.5
    CIS/ETFs 7.0

    Sector Breakdown*

    Sector %
    Banks 19.8
    Telecommunications 9.3
    Mining 7.1
    Chemicals 6.6
    Transportation 6.3
    Food 5.0
    Real Estate 4.9
    Iron/Steel 4.5
    Gaming 4.2

    *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.