• NEW_CC FUNDS 2017_WEB BANNER USD-01

High Income Bond Fund USD Distributor

  • INVESTMENT OBJECTIVES

    The CC 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

July 2017 Commentary

Yet another remarkable performance for global credit markets in July as the flight to yield in a low volatility environment persisted in the first month of the third quarter of 2017. And credit markets marched on yet again. Spreads ground even tighter to year-to-date lows. From European High Yield to US High Yield to Emerging Market debt markets. Monies continue to flow in the asset class, and there does not seem to be any signs of abating yet. With European High Yield registering a 0.93% gain during the month, followed by a 1.15% rally in US High Yield markets, investors must begin to wonder how much lower can spreads go, or rather, how tight must valuations get for there to be a slowdown in all this jubilance.

With earnings season in full swing and two key central bank meetings out of the way, credit markets threaded along and have been anything but volatile heading into the lull of summer market activity.

We are aware that investors could get ahead of themselves, particularly in Europe as the strong set of earnings releases so far and the string of debt portfolio enhancements of corporate bond issuers since the start of the year have placed issuers on a better footing, whilst in the meantime, spreads continue to tighten.

In addition, with the imminent reduction in the ECB’s quantitative easing programme, we do not exclude investors anticipating Draghi’s next move and moving the market before any official announcement, in their attempts to pre-empt any potential sharp uptick in benchmark yields. With benchmark yields rising, the hunt for yield could abate, particularly within that segment of investors who stepped down the ratings ladder for an improved yield. This could ultimately mark the start of a correction in high yield markets. Not only in the single currency region but also spill over across the Atlantic.

Another possible scenario could also be bond issuers rushing to bring fresh bonds to the market to lock in financing costs at current low levels in anticipation of rising financing costs. If this results in an inundation of bond issuance, we could well witness a repricing in both the primary and secondary markets towards the latter part of the year as the increase in supply could dent investor’s hopes for any grind tighter in spreads from this point forth.

The US Federal Reserve kept interest rate in check and left door open to begin unwinding its balance sheet possibly as early as August, but was nonetheless dovish on the inflation front as the headline rate reference was changed to ‘running below 2%’ from ‘somewhat below’.

Meanwhile, recent data suggests that governments and companies from emerging market economies nations have issued in excess of $400 billion worth of euro and dollar bonds in the first seven months of 2017; the fastest rate on record. This comes to no surprise as ultra-loose monetary stances in Europe and the US coupled with an ever-weakening US dollar has compelled investors to search for yield beyond the developed world, by venturing into higher-yielding assets such as emerging-market bonds. Emerging market debt posted a satisfactory 0.85% during the month of July and are up by 5.92% year-to-date.

Factsheet

  • NAV/Price: Click here for latest price

    Sub-Fund Name High Income Bond Fund – USD (Distributor)
    Investment Manager Calamatta Cuschieri Investment Management Ltd
    Fund Advisor DF – Asset Allocation (Lugano, Switzerland)
    Custodian Sparkasse Bank Malta p.l.c.
    Fund Administrator Calamatta Cuschieri Fund Services Ltd.
    Auditors Deloitte Malta
    Legal Advisors Ganado & Associates
    Launch Date 1st September 2011
    Domicile Malta
    Currency USD ($)
    Dealing Frequency Weekly
    Fund Size $19.0mn
    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

     

    Performance History (expressed in % terms) **

     Calendar Year Performance YTD 2016 2015 2014 Since
    Inception ***
    Share Class D – Total Return 4.10 10.02 -2.59 1.15 28.94
    Rolling 12 month performance to last month end 27/07/16

    26/07/17

    29/07/15

    27/07/16

    30/07/14

    29/07/15

    31/07/13

    30/07/14

    Share Class D- Total Return 7.07 2.47  -1.05  6.33

    * 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 %
    United States 19.6
    Russia 10.9
    Brazil 10.7
    Great Britain 6.5
    Italy 4.4
    Indonesia 4.1
    Turkey 3.2
    Germany 3.2
    Switzerland 2.9
    Luxembourg 2.7

    *including exposures to CIS

    By Credit Rating*

    Rating %
    BBB 18.3
    BB 28.6
    B 34.6
    CCC+ 0.0
    Less than CCC+ 0.7
    Not Rated 0.0
    Average Cerdit Rating BB-

    *excluding exposures to CIS

  • Performance to Date (USD)

    Top 10 Exposures

    Exposure %
    7.00% KB Home 2021 3.5
    7.00% Scientific Games 2022 2.8
    4.75% Lennar Corp 2022 2.8
    5.625% Ineos 2024 2.7
    5.375% Petrobras 2021 2.7
    6.25% IGT 2022 2.3
    8.00% Unicredit 2166 2.2
    6.25% GTH Finance 2020 2.2
    7.375% Wind Acquisition 2021 2.2
    5.625% HSBC Holdings 2166 2.1

     

    Currency Allocation

    Currency %
    USD 100.0
    Others 0.0

    Asset Allocation

    Asset %
    Cash 14.7
    Bonds 82.3
    CIS/ETFs 3.1

    Maturity Buckets*

    Age %
    0 – 5 years 55.0
    5 – 10 years 23.8
    10 years+ 2.3

    *based on the Next Call Date

    Sector Breakdown

    Sector %
    Financial 24.6
    Consumer, Cyclical 16.9
    Basic Materials 11.1
    Communications 10.8
    Energy 7.7
    Consumer, Non-Cyclical 5.8
    Industrial 3.7
    Utilities 1.1
    Government 0.7

    *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 BUT 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.
 

*THE MOST RECENT DISTRIBUTION (30th MARCH) AS A PERCENTAGE OF THE NAV EXPRESSED ON AN ANNUALISED BASIS (SOURCE: CALAMATTA CUSCHIERI INVESTMENT MANAGEMENT).  PERFORMANCE FIGURES QUOTED IN US DOLLARS REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE PERFORMANCE. THE VALUE OF 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. ALL ABOVE MENTIONED FUNDS ARE SUB FUNDS OF CALAMATTA CUSCHIERI FUND SICAV PLC AND ARE 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