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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

February 2020 Commentary

With growth settling back to the roughly 2% pace prevailed during the decade-old economic expansion, fears of a global recession lessening, and the manufacturing cycle seemingly heading for a turnaround following a ‘phase one’ agreement between US and China, outlook for 2020 vis-à-vis economic growth seemed positive. Economic data had started to improve whilst yields started to portray the possibility of a broad economic recovery.

Albeit the initial uptick in January, treasury yields traded downwards, as investors; worried about the potential impact on global economic growth and corporate earnings, as a protectionist measure against economic downturn, shunned global equities, wiping out months of gains, and sought the relative safety of sovereigns.

Subsequent to the increased demand for safer assets, and reflecting expectations of a possible rate cut, the U.S. mostly sought benchmark; the 10-year Treasury Yield tumbled by 37.8 basis points, for the month of February and headed downwards to the 1 per cent levels, closing the month at 1.126 per cent.

Notably, due to the latter shift towards less risky assets, Global HY bond spreads over treasuries significantly widened, closing-off the month on a much weaker note.

From the macroeconomic front, the U.S. reported a slightly lower Manufacturing PMI to 50.7 from 51.90 in January, pointing to the slowest expansion in factory activity in six months, amid historically subdued gains in output and new orders. Similarly, U.S. Services PMI dropped to 49.4 from 53.2 in the previous month, and well below market expectations of 53, shown in a preliminary estimate.

The CC Global High income fund continued to preserve its capital with monthly loss of 0.03 percent despite the notable widening in spreads. Internal comparable indices were down 1.8 percent as volatility prevailed. In line with the downward trend in yields, the Manager opted to go long the UST curve and benefit from the yield tightening in sovereigns, while limiting downside risk by raising cash levels in the more risky bit of the asset class.

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 $17.4 M
    Number of Holdings 46
    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 0.79 10.23 -3.22 5.71 23.71
    Rolling 12 month performance to last month end 27/02/19 26/02/20 28/02/18 27/02/19 22/02/17 28/02/18 24/02/16  22/02/17  25/02/15   24/02/16
    Share Class A- Total Return 7.00 1.03 3.71 13.95  -5.98

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

    Top 10 By Country*

    Country %
    USA 25.5
    Russia 19.3
    Brazil 11.8
    France 5.1
    Turkey 4.8
    Switzerland 3.1
    China 3.1
    UK 2.9
    Italy 2.5
    Germany 2.4

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 61.2
    5 – 10 years 16.8
    10 years+ 4.0

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShared USD HY Corp 4.1
    6.75% Societe Generale Perp 3.9
    7% KB Home 2021 3.7
    4.75% Lennar Corp 2022 3.0
    Ishares USD Treasury 20+ yrs 3.0
    5.625% Ineos Group 2024 2.9
    5.299% Petrobras 2025 2.5
    8% Unicredit Spa Perp 2.5
    5.25% Sberbank 2023 2.5
    6.35% Republic of Turkey 2024 2.4

    By Credit Rating*

    Credit Rating %
    BBB 23.4
    BB 37.4
    B 21.1
    CCC+ 0.0
    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 11.1
    Bonds 81.9
    CIS/ETFs 7.1

    Sector Breakdown*

    Sector %
    Financial 20.9
    Basic Materials 15.9
    Consumer, Cyclical 13.8
    Energy 8.4
    Consumer, Non-Cyclical 7.7
    Communications 6.8
    Government 2.4
    Industrial 2.4
    Technology 2.3

    *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 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.