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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

November 2020 Commentary

In years to come, when people look back on the Covid-19 crisis and what was a torrid year for the world, November will likely be marked as a turning point. The announcement of three vaccines that are effective against the virus drove a risk-on mood in markets and added fuel to the post-US election rally, eclipsing worries about the near-term economic outlook.
Joe Biden has been elected as the new US president and cabinet appointments, with Ms Yellen back on the forefront, seems to promise a return to policy-making normality, with closer coordination between fiscal and monetary policy. The first coronavirus vaccines are on track for international deployment within weeks on both sides of the Atlantic. This improves the prospects for a recovery in the global economy, and this has subsequently been reflected in asset prices worldwide.
Despite the positive undertones for 2021, the immediate picture remains strained, with record virus cases in the United States, and selectively in Europe. The resultant lockdowns and social distancing measures have upended the momentum in risk assets following the announcement of the multiple vaccines and rollout plans thereof. Additionally, President Donald Trump has refused to throw in the title and is making avail of all of his legal avenues to claw onto the presidency. Despite this, the market at large expects a smooth transition come January.
The Federal Reserve kept its main rate on hold at its lowest level between 0 per cent and 0.25 per cent and reiterated its willingness to keep it there until the pandemic hit recovery reached full employment with higher inflation. As negative interest rates have been ruled out, the minutes of the November Federal Open Market Committee signalled the central bank is ready to make changes in the pace and composition of its asset purchase programme if circumstances shifted, while not being in a hurry to make the changes.
Data has become a very sensitive element for market participants as it depicts the strength of the recovery, particularly in light of the current restrictions in place in the West. Despite economic data confirming that the pace of recovery stalled over the summer, we are nowhere near the levels experienced during the first lockdown.
The economic recovery in the U.S. has been proceeding at a good pace, but there are some signs that it is slowing. The U.S. reported an expansion in manufacturing, below expectations, with the PMI expanding to 57.5 from 59.3 in the previous month and a forecast of 58.0. Similarly, U.S. Services PMI were in expansionary territory at 55.9, lower than the 56.6 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 performed in line with its European counterparts, closing off a strong month at 4.10 percent. The asset class was benefitted from the Biden victory, vaccine news and subsequent risk-on mode for assets, particularly in the energy sector, which saw a steep recovery on the back of a marked increase in the price of oil.
The CC Global High income fund increased 3.12%, compared to a 4.10% increase in the benchmark, underperforming its benchmark by 98bps 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. To this end, the Manager believes that the fund is well positioned to navigate the current volatile environment and looks to add positions selectively to companies with suitable metrics.

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 Dailly
    Fund Size $16.87 mn
    Number of Holdings 46
    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 2016 2015 2014 Annualised Since Inception***
    Share Class D – Total Return 10.02 -2.59  1.15 1.14
    Calendar Year Performance YTD 2019 2018 2017
    Share Class D- Total Return 1.97 10.22 -3.22 5.70
    Rolling 12 month performance to last month end 27/11/19  30/10/20 28/11/18  27/11/19 29/11/17  28/11/18 30/11/16  29/11/17
    Share Class D- Total Return 2.92 9.39 -3.33 7.20

    *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 %
    Russia 25.8
    USA 24.4
    Brazil 10.5
    UK 6.8
    Germany 5.6
    France 5.3
    Turkey 5.0
    Italy 4.0
    Switzerland 3.4
    Canada 1.1

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 64.9
    5 – 10 years 17.0
    10 years+ 6.0

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShares USD HY Corp 5.9
    8.00% Unicredit perp 4.0
    6.75% Societe Generale Perp 4.0
    7% KB Home 2021 3.8
    6.25% HSBC 2169 3.8
    4.75% Lennar Corp 2022 3.2
    5.625% Ineos Group 2024 3.1
    5.299% Petrobras 2025 2.7
    5.25% Sberbank 2023 2.5
    6.35% Turkey 2024 2.5

    By Credit Rating*

    Credit Rating %
    AAA to BBB- 20.1
    BB+ to BB- 44.6
    B+ to B- 20.3
    CCC+ 0.0
    Less than CCC+ 2.9
    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 4.9
    Bonds 87.9
    CIS/ETFs 7.2

    Sector Breakdown*

    Sector %
    Banks 19.5
    Telecommunications 9.6
    Chemicals 6.8
    Transportation 6.4
    Mining 5.4
    Food 5.2
    Iron/Steel 4.6
    Gaming 4.4
    Real Estate 4.2

    *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. 

*LAST 6 MONTHS DISTRIBUTION YIELD (ANNUALISED) (1/10/20202 – 31/03/2020) 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.