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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

June 2019 Commentary

June was an eventful month for markets and the performance was a breath of fresh air after May’s sell-off and the associate spike in volatility. The month closed with the G-20 meeting that resulted in a restart in trade consultations between the U.S and China as well as an agreement of not imposing new tariffs. In addition to, the Fed’s released minutes during the month increased the odds of a rate cut by the end of July i.e. adding further monetary stimulus in an attempt to delay a potential recession.

Moreover, Trump announced fresh sanctions on Iran following the downing of an unmanned American drone i.e. Iran faces close to 100 percent economic sanctions. Washington had applied financial restrictions in May on the purchase of Iranian oil, steel, aluminium and copper; and aims to completely cut off Iranian oil exports and renegotiate the landmark nuclear accord.

Markets also saw the U.S’ Manufacturing PMI fall to 51.7 in June from 52.1 in the previous month, beating market expectations of 51.0. Still, the latest reading pointed to the weakest pace of expansion in the manufacturing sector since 2016 due to concern about U.S-China turbulence and a decrease in global growth. Overall, the sentiment for June was mixed.

Indeed, the less risky bonds, in particular, benefited from a flight to safety, as the 10-Year U.S. Treasury yield hit a twenty-one month low, closing at 2.0154 percent. By the end of month, U.S High Yield gained 2.45 percent, the highest level since January. The U.S bond market saw spreads tighten from 434bps, last month, to 407bps, levels that were lower than their Eurozone counterparts.

In June, the Manager maintained a cautious approach in line with its strategy to maintain above peers risk adjusted metrics. In line with the market pricing a more dovish Fed, the Manager opted in opening a position in U.S Treasuries, a tactical trade that was closed-off at a profit following the released Fed minutes. Going forward, the Manager will continue to seek risk-reward positions, in addition to the protection of the year-to-date performance.

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 $18.1 mn
    Number of Holdings 48
    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 35.95
    Calendar Year Performance YTD 2018 2017 2016
    Share Class D- Total Return 7.29 -3.22 5.70 10.02
    Rolling 12 month performance to last month end 30/06/18

    26/06/19

    30/06/17

    30/06/18

    30/06/16

    30/06/17

    30/06/15

    30/06/16

    Share Class D- Total Return 7.26 -1.17 8.76 0.11

    *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 23.5
    Russia 14.9
    Brazil 13.1
    UK 9.5
    Indonesia 4.3
    Turkey 4.2
    China 3.7
    Switzerland 3.0
    France 2.2
    Italy 2.1

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 74.8
    5 – 10 years 9.4
    10 years+ 2.8

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShared USD HY Corp 4.0
    5.625% Ineos 2024 3.9
    7.00% KB Home 2021 3.6
    4.75% Lennar 2022 2.9
    5.375% Petrobras 2021 2.9
    5.299% Petrobras 2025 2.3
    6.25% IGT 2022 2.3
    7.25% JBS 2024 2.3
    5.25% Sberbank 2023 2.3
    4.375% Ford Motors 2023 2.3

    By Credit Rating*

    Credit Rating %
    BBB 26.8
    BB 43.3
    B 20.9
    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 7.8
    Bonds 88.2
    CIS/ETFs 4.0

    Sector Breakdown*

    Sector %
    Financial 25.8
    Consumer, Cyclical 14.5
    Basic Materials 14.2
    Communications 10.8
    Energy 8.8
    Consumer, Non-Cyclical 7.9
    Industrial 2.9
    Technology 2.2
    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. 

*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.