• 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

November 2017 Commentary

In our commentaries for the month of October, we highlighted the fact that the strength of the credit markets had left most participants baffled and that, it was a matter of time when it would lose steam, and we had opined that profit taking to begin to take centre stage in November together with some spread widening. This is in fact what happened in the first part of the month as markets in general sold off across the board. Sovereigns bonds led the retreat following ECB comments of complacency and all other fixed income asset classes followed suit. Equities came under pressure too, and there has been a great focus on the US tax reform.

At this juncture, the largest issue for the bond investor in credit markets, both the Investment Grade and High Yield investor, in EUR and USD, is the risk-reward profile being highly skewed away from the reward element. Record lows, in yields and spreads in almost ten years, notwithstanding the correction registered during the month of November, are the greatest indicators that markets had become toppish and ahead of themselves. In this vein, we think that the correction and profit taking was justified and warranted. However, on the flipside, fundamentals remain intact. Balance sheets are healthier than they were 12 months.

Credit rating upgrades are becoming the norm once again and no longer an exception. But, nevertheless, the upside for credit remains very limited, while the downside is substantial. Having said that, we do not see any imminent major risks to derail the markets in the near term, so we hope so see out the remainder of the year relatively unscathed. However, there are always issues lingering that can deteriorate and become problematic.

For example, Chinese real estate issue, higher tax rates in the US as well as problems within the Tech sector, all factors which have been fluid in recent weeks, could dictate market sentiment and push spreads wider, if they deteriorate. Per se, when viewed in isolation, they might not directly affect credit markets, but a sell-off in the US could well spill over across the Atlantic and have reverberating effects on Emerging Markets too.

After 21 months of bonds rallying (since February 2016) the hunt for yield has not yet fizzled out and, at current valuations, HY and EM in particular remain the more attractive sub-segment within the fixed income space. We do not expect any major hiccups and/or hurdles in credit heading into year-end.

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 5.63 10.02 -2.59 1.15 30.84
    Rolling 12 month performance to last month end 30/11/16

     

    29/11/17

    25/11/15

     

    30/11/16

    26/11/14

     

    25/11/15

    27/11/13

     

    26/11/14

    Share Class D- Total Return 7.20 6.45  -2.19  3.14

    * 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 19.2
    Brazil 13.0
    Russia 12.6
    Great Britain 6.4
    Indonesia 4.1
    Turkey 3.2
    Germany 3.1
    Switzerland 2.8
    Luxembourg 2.7
    China 2.6

    *including exposures to CIS

    By Credit Rating*

    Rating %
    BBB 18.4
    BB 32.0
    B 33.5
    CCC+ 0.0
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB-

    *excluding exposures to CIS

  • Historical Performance to Date (USD)

    Top 10 Exposures

    Exposure %
    7.00% KB Home 2021 3.5
    7.00% Scientific Games 2022 2.7
    4.75% Lennar 2022 2.7
    5.625% Ineos 2024 2.7
    5.375% Petrobras 2021 2.7
    8.00% Unicredit 2166 2.3
    6.25% IGT 2022 2.3
    6.25% GTH Finance 2020 2.2
    5.25% Sberbank 2023 2.2
    5.625% HSBC Holdings 2166 2.1

     

    Currency Allocation

    Currency %
    USD 100.0
    Others 0.0

    Asset Allocation

    Asset %
    Cash 13.0
    Bonds 84.0
    CIS/ETFs 3.0

    Maturity Buckets*

    Age %
    0 – 5 years 57.2
    5 – 10 years 23.0
    10 years+ 2.5

    *based on the Next Call Date

    Sector Breakdown

    Sector %
    Financial 26.6
    Consumer, Cyclical 16.8
    Basic Materials 11.3
    Energy 9.8
    Communications 9.4
    Consumer, Non-Cyclical 7.5
    Industrial 1.6
    Utilities 1.1
    Diversified 0.0

    *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 SEPTEMBER 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