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Global High Income Bond Fund

  • INVESTMENT OBJECTIVES

    The CC Global High Income Bond Fund Distributor 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

April 2019 Commentary

Another month passed by and yet another positive month for risky assets across the spectrum. One would not have been at fault at presuming that, following the positive start to the year and the positive momentum seen in the first quarter. Sell offs took centre stage in April and to a certain extent, April did have its fair share of bouts of heightened volatility as well, as investors were swift to take profits, resulting in muted weakness. Overall, April was once again a positive month for credit and risky assets, with spreads on high yield bonds across both sides of the Atlantic tightening further.

It must be said that the euphoria we had seen in the first three months of the year seemingly dissipated in April, but was nonetheless strong enough to clock in yet another positive month. No major news updates. No particular surprising economic data releases, but merely an extension of the positive sentiment bolstered in January by the ECB and US Federal Reserve. With earnings season in full swing, investors had much to closely scrutinise, but there were no major surprises; corporates remain in good shape, earnings robust, and more importantly, balance sheets remain healthy.

US corporate balance sheets are more leveraged than their European counterparts as the QE trade lasted longer in the US than it did in the eurozone. With benchmark yields in Europe markedly lower, and with credit better bid for the better part of the year so far, we have seen a fresh wave of bond issuers, particularly the higher yielding ones, take advantage of market conditions by refinancing their outstanding bonds at significantly lower borrowing rates, a trend which was almost inexistent in 2018.

In the month what was positive were the re-affirmations of the Chinese Government which continue to pledge support in order to stabilize the economy. Previous attempts in doing so might have been reflected in the GDP data issued as at the end of March, in which China recorded an annualized growth of 6.4 percent versus consensus of 6.3 percent.

For two consecutive months the fund outperformed its internal comparable benchmark on a net basis, following the more volatile markets as opposed to January and February. The Manager believes that the fund is well poisoned both in terms of capital appreciation, based on its EM exposure which to date lacked its U.S. peers, but also from a volatility perspective, given its active management.

Factsheet

  • NAV/Price: Click here for latest price

    Sub-Fund Name Global High Income Bond Fund (Distributor)
    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 1st September 2011
    Domicile Malta
    Currency USD ($)
    Dealing Frequency Weekly
    Fund Size $17.9 mn
    Number of Holdings 49
    Initial Charge up to 2.5%
    Management Fee 1%
    Dividend Payment Dates 31 March 30 September
    ISIN numbers USD – MT7000003067
    Minimum Initial Investment $ 3,000
    Minimum Additional Investment $ 500

    Historical Performance to Date (USD)

    Performance History **

    Calendar Year Performance 2013 2012 2011*** Since Inception***
    Share Class D – Total Return 3.11 11.99  -1.05 34.11
    Calendar Year Performance YTD 2018 2017 2016
    Share Class D- Total Return 5.84 -3.22 5.70 10.02
    Rolling 12 month performance to last month end 25/04/18

    30/04/19

    26/04/17

    25/04/18

    27/04/16

    26/04/17

    29/04/15

    27/04/16

    Share Class D- Total Return 3.97 1.1 9.79  -2.09

    *Data in the chart does not include any dividends distributed since the Fund was launched on 1st September 2011.

    **Performance figures are calculated using the Value Added Monthly Index “VAMI” principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding.

    *** The Distributor Share Class (Class D) was launched on 01 September 2011.

    Top 10 By Country*

    Country %
    USA 23.7
    Russia 14.8
    Brazil 12.9
    UK 9.5
    Indonesia 4.3
    Turkey 4.1
    China 3.7
    Switzerland 3.0
    Spain 2.2
    France 2.2

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 71.2
    5 – 10 years 15.3
    10 years+ 2.7

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShared USD HY Corp 4.1
    5.625% Ineos 2024 3.9
    7.00% KB Home 2021 3.6
    5.375% Petrobras 2021 2.9
    4.75% Lennar 2022 2.3
    6.25% IGT 2022 2.3
    7.25% JBS 2024 2.3
    5.299% Petrobras 20 2.3
    5.25% Sberbank 2023 2.3
    6.25% GTH Finance 2020 2.3

    By Credit Rating*

    Credit Rating %
    BBB 26.6
    BB 45.5
    B 21.0
    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

    Currency %
    Cash 5.6
    Bonds 90.3
    CIS/ETFs 4.1

    Sector Breakdown*

    Sector %
    Financial 28.2
    Consumer, Cyclical 14.6
    Basic Materials 14.2
    Communications 10.7
    Energy 8.6
    Consumer, Non-Cyclical 7.8
    Industrial 2.9
    Technology 2.2
    Utilities 1.1

    *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. 

*LAST 12 MONTHS DISTRIBUTION YIELD (01/04/2018 - 31/03/2019) SOURCE: CALAMATTA CUSCHIERI INVESTMENT MANAGEMENT. PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE PERFORMANCE. THE VALUE OF THE INVESTMENTS INCLUDING CURRENCY FLUCTUATIONS, AND INCOME FROM THEM CAN GO DOWN AS WELL AS UP AND INVESTORS MAY NOT GET BACK THE FULL AMOUNT INVESTED.

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.