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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

August 2020 Commentary

Policymakers hoped that the Covid-19 pandemic would recede during the hotter summer months, instigating policymakers to gradually lift restrictions at the start of summer season in the northern hemisphere. However, even though record temperatures were registered in August, the virus has unfortunately continued to spread. There have now been over 25 million cases globally, up from 10 million at the start of July.

Even though the number of new daily cases in the US has started to decline, some regions, including Europe, are now facing a second wave where the daily increase in cases is back close to the levels seen at the height of the crisis in March and April. So far, better testing and tracing capacity has allowed European policymakers to treat this second wave with targeted measures, including travel restrictions or the requirement to wear a face mask in public, instead of national lockdowns. This was done in an effort to better balance public health policies with economic policies.

The negotiations relating to a new coronavirus relief bill have continued to stall in Washington. For millions of Americans, the delay in passing another stimulus package could have painful consequences. Thanks to the CARES Act, passed in March, an extra $600 per week of unemployment benefit was provided to workers who qualified for unemployment insurance but this extra financial support expired on 31 July. Since the beginning of August, those who have lost their jobs are back on normal, much less generous, unemployment benefits. Moving forward, without further fiscal stimulus or a vaccine, the jobless are likely to struggle in the face of a potential prolonged period of inactivity due to the pandemic.

From the political arena, the presidential campaign has continued to gather steam with the nomination of Kamala Harris as Joe Biden’s running mate and the official nomination of Donald Trump as the Republican nominee. So far, the most recent polls continue to point to a victory for the Democrats.

From the macroeconomic data front, the U.S. reported a continued improvement in manufacturing, with the PMI expanding to 56.0 from 54.2 in the previous month. Similarly, U.S. Services PMI bounced, with surveys expecting it to increase to 54.8 from 50.0 in the previous month; however, the reported figure was at the expansionary level of 55.0. This gives confidence to the notion that activity has bottomed out, and we are initiating the road towards a resumption of economic activity more in line with previous norms.

The CC Global High income fund advanced 1.4%, lagging its benchmark by circa 200bps comparatively given its underweight position in Energy names, albeit with a much lower level of volatility. US high yield spreads narrowed on a more positive outlook. 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 $16.86 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 -0.68 10.23 -3.22 5.71 8.13
    Rolling 12 month performance to last month end 28/08/19 31/08/20 29/08/18 28/08/19 30/08/17 29/08/18 31/08/16  30/08/17  26/08/15   31/08/16
    Share Class A- Total Return 1.37 7.18 -1.34 6.16 5.59

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

    Top 10 By Country*

    Country %
    USA 25.8
    Russia 25.1
    Brazil 12.2
    UK 5.5
    France 5.0
    Turkey 4.8
    Italy 3.9
    Switzerland 3.3
    Germany 2.3
    China 1.3

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 61.6
    5 – 10 years 17.9
    10 years+ 4.4

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShared USD HY Corp 7.5
    8.00% Unicredit per 3.9
    7% KB Home 2021 3.8
    6.75% Societe Generale perp 3.8
    4.75% Lennar Corp 2022 3.2
    5.625% Ineos Group 2024 3.0
    5.299% Petrobras 2025 2.6
    5.25% Sberbank 2023 2.6
    4.1% MMC Norilsk 2023 2.5
    4.00% Veon Holdings 2025 2.5

    By Credit Rating*

    Credit Rating %
    AAA to BBB- 20.7
    BB+ to BB- 41.6
    B+ to B- 19.3
    CCC+ 0.0
    Less than CCC+ 2.3
    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 7.3
    Bonds 83.9
    CIS/ETFs 8.8

    Sector Breakdown*

    Sector %
    Financial 20.6
    Basic Materials 16.4
    Consumer, Cyclical 12.8
    Communications 9.4
    Consumer, Non-Cyclical 9.0
    Energy 8.6
    Industrial 3.4
    Government 2.4
    Utilities 1.2

    *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.