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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

October 2020 Commentary

October saw a sharp decline in risk sentiment across financial markets from the post-Covid highs of late summer, as case counts rose to new highs across Europe and the US. Market performance remains inextricably correlated to the evolution of the virus, as it dictates the actions of governments worldwide.
Up until October, better testing and tracing capacity had allowed European policymakers to treat this second wave with targeted measures, including travel restrictions or the requirement to wear a facemask in public, instead of national lockdowns. These measures however were deemed to be insufficient in the face of record breaking virus cases, and more aggressive action was taken by most European governments, with the aim of possibly decreasing them in time for the Christmas period. Policy makers are relying on the arrival of a viable vaccine in the first half of 2021.

Record numbers of new daily cases in the US created a large bone of contention between the presidential candidates; with President Trump’s handling of the Covid pandemic often criticised by opponents, no doubt highlighting a situation which remains challenging, as policy makers attempt to balance healthcare needs with economic needs.

The lack of any progress over US fiscal stimulus talks did little to help a beleaguered marketplace. On the monetary policy front, the big news over the previous quarter was the Federal Reserve’s shift to average inflation targeting, allowing inflation to run above target for a while to compensate for periods of below-target inflation. The key implication is that rates are likely to remain lower for even longer. However, in the minutes of the meeting that were subsequently released, it showed that the support for this policy was not overwhelming.

The FED has repeatedly called for additional fiscal measures, with chairman Powell applying considerable pressure. The Central
Bank recently announced the reduction of the minimum loan size from $250K to $100K for the small-business lending programme, a $600bn scheme launched earlier this year with the backing of the US Treasury.

With a projected Biden victory and a Democratic House giving room for greater likelihood of longer than expected fiscal stimulus, the dollar weakened during the course of the month before finding some support when equities reversed trend, heading for their biggest weekly fall since the March turmoil at the end of the month.

From the macroeconomic data front, the U.S. reported an expansion in manufacturing, above expectations, with the PMI expanding to 59.3 from 55.4 in the previous month and a forecast of 55.8. Similarly, U.S. Services PMI were in expansionary territory at 56.6, lower than the 57.8 in the previous month. This gives confidence to the notion that activity has tentatively bottomed out, and we are initiating the road towards a resumption of economic activity more in line with previous norms.

Within the HY asset space, US high yield significantly outperformed its European counterparts, closing off the month of October up 0.43 percent. The said performance was buoyed by a projected Biden victory and “Blue wave” which was expected to enable more agile fiscal support as well as less US leadership uncertainty.

The CC Global High income fund increased 0.17%, compared to a 0.43% increase in the benchmark, underperforming its benchmark by 26bps comparatively given its underweight position in Energy names, albeit with a much lower level of volatility.
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. The outlook for the energy sector remains mixed as the US rig count remains at record lows due to persistently low price of crude oil. 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 $16.23 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 -1.13 10.23 -3.22 5.71 21.35
    Rolling 12 month performance to last month end 30/10/19 30/10/20 31/10/18 30/10/19 25/10/17 31/10/18 26/10/16  25/10/17  28/10/15   26/10/16
    Share Class A- Total Return 0.06 8.45 -2.68 6.55 5.54

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

    Top 10 By Country*

    Country %
    Russia 28.3
    USA 25.1
    Brazil 10.6
    UK 5.7
    France 5.2
    Turkey 4.9
    Italy 4.0
    Germany 3.8
    Switzerland 3.5
    Canada 1.1

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 62.7
    5 – 10 years 19.0
    10 years+ 5.8

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShares USD HY Corp 6.1
    8.00% Unicredit perp 4.0
    7% KB Home 2021 4.0
    6.75% Societe Generale Perp 3.9
    4.75% Lennar Corp 2022 3.3
    5.625% Ineos Group 2024 3.2
    5.299% Petrobras 2025 2.8
    5.25% Sberbank 2023 2.7
    4.1% MMC Norilsk 2023 2.6
    4.00% Veon Holdings 2025 2.6

    By Credit Rating*

    Credit Rating %
    AAA to BBB- 21.3
    BB+ to BB- 43.5
    B+ to B- 20.2
    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 5.0
    Bonds 87.6
    CIS/ETFs 7.4

    Sector Breakdown*

    Sector %
    Financials 16.6
    Telecommunications 9.8
    Chemicals 6.8
    Transportation 6.3
    Mining 5.5
    Food 5.3
    Oil&Gas 4.9
    Iron/Steel 4.5
    Gaming 4.5

    *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.