• 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

February 2017 Commentary

Credit markets registered a noteworthy performance across both sides of the Atlantic during the month of February as European and US HY markets were up by 1.06% and 1.60% respectively as measured by leading market indices. The political and central bank activity and chatter did little to deter investors to adding more risk to their portfolios, in part aided by robust economic throughout data but also by the positive string of earnings releases. Sentiment in risky assets was upbeat, cash was put to work and credit spreads tightened as improved credit metrics compelled investors to take advantage of the persistent credit grind tighter. Investor’s buoyant mood was also bolstered by a series of credit rating upgrades, something which investors had seemingly forgotten were still achievable and possible.

With February expectedly being a quiet month for central bank activity, investors were not expecting government bonds to be much in the fray. With the looming French and Dutch elections in Europe however, and persistent fluctuations in polls towards pro and anti-Europe parties for much of the month, government bonds were back in demand as the flight to safety trade kicked in once again as European government bonds rallied by 1.1% during the month, with the longer end of the curve bull-flattening.

Emerging markets meanwhile have been unfazed so far this year by the worries, or rather, concerns of a potentially stronger dollar against major emerging market currencies. The expected three rate hikes by the US Federal Reserve appear to be already priced-in in current valuations, and so long as EM currencies continue to range trade within current levels, emerging markets are set to remain in demand. During the month of February alone, global emerging market bonds were up by 1.59%.

The global search for yield continues, the outlook for commodities has improved markedly and without being too euphoric, emerging market economies are in a healthier state than a large number of developed economies, with encouraging prospects for GDP growth in 2017. Meanwhile, inflation has continued to creep upwards, mainly on the back of a rise in commodity and energy prices, so base effects largely contributed towards this uptick in price pressure. Although inflationary pressures could well persist on the back of the robustness in emerging market economies, EM central banks are more likely to oversee the recent spike in inflation rather than respond with any form of policy tightening.

During the month, the Investment Manager took advantage of the positivity surrounding the financial sector in Europe in USD bonds, particularly those bonds within the subordinated debt space (Additional Tier 1 securities), by putting money to work in selective financial bonds denominated in Europe, namely HSBC Holdings plc and Deutsche Bank. These trades served to reduce the Fund’s cash exposure and positively contributed to the Fund’s performance during February. The Investment Manager will seek to continue adding on to dollar denominated bonds, particularly commodity and emerging market names as the global search for yield continues in those regions and sectors that still offer value.

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 50
    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)

    YTD 2016 2015 2014 2013
    Share Class D – Total Return 1.37 10.02 -2.59 1.15 3.11
    Rolling 12 month performance to last month end 24/02/15

    22/02/17

    25/02/15

    24/02/16

    26/02/14

    25/02/15

    27/02/13

    26/02/14

    29/02/12

    27/02/13

    Share Class D- Total Return 13.94 -5.98  1.27  3.05 8.70
    25.55 Since Inception. The Distributor Share Class (Class D) was launched on 01 September 2011.

    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.

    Top 10 By Country*

    Country %
    United States 18.8%
    Brazil 8.8%
    Great Britain 6.4%
    Russia 4.6%
    Italy 4.2%
    Turkey 3.1%
    Germany 3.0%
    Switzerland 2.7%
    Luxembourg 2.7%
    Netherlands 2.2%

    *including exposures to CIS

    By Credit Rating*

    Rating %
    BBB 15.0%
    BB 28.2%
    B 28.3%
    CCC+ 0.9%
    Less than CCC+ 0.9%
    Not Rated 0.0%
    Average Cerdit Rating BB-%

    *excluding exposures to CIS

  • Performance to Date (USD)

    Top 10 Exposures

    Exposure %
    7% KB Home 2021 3.4%
    7% Scientific Games 2022 2.8%
    Muzinich L/S Credit Fund 2.7%
    4.75% Lennar Corp 2022 2.7%
    5.625% Ineos 2024 2.7%
    5.375% Petrobras 2021 2.6%
    6.25% IGT 2022 2.3%
    6.25% GTH Finance 2020 2.2%
    5.875% JBS 2024 2.2%
    7.375% Wind Acquisition 2021 2.2%

     

    Currency Allocation

    Currency %
    USD 100.0%
    Others 0.0%

    Asset Allocation

    Asset %
    Cash 21.7%
    Bonds 73.8%
    CIS/ETFs 4.5%

    Maturity Brackets*

    Age %
    0 – 5 years 52.3%
    5 – 10 years 18.1%
    10 years+ 1.3%

    *based on the Next Call Date

    Sector Breakdown

    Sector %
    Financial 20.9%
    Consumer, Cyclical 16.7%
    Communications 12.2%
    Basic Materials 8.9%
    Consumer, Non-Cyclical 5.9%
    Energy 4.5%
    Industrial 2.7%
    Utilities 1.0%
    Government 0.9%

    *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.​