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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

August 2019 Commentary

The month of August proved to be turbulent due to increased uncertainties surrounding the trade war saga. Indeed, it kicked-off with the U.S. slapping a 10% tariff on $300 billion of Chinese imports from September, while China retaliated by announcing a further 5-10% on $75 billion worth of goods by the beginning of September.

These moves were the latest punches that spooked investors and raised fears that the global economy will dip into a recession. This led to a downbeat mood that hit risky assets, while the U.S yield curve inverted as investors continued to fear a downturn in the global economy. Elsewhere, in Europe, ECB officials considered a stimulus package, as the trade war saga continued to pose risks on global growth. Proposals being discussed are a further cut into the deposit rate, while possibly re-activating the quantitative easing programme.

Indeed, the trade war escalation continued to weigh on U.S. economic data with U.S factory activity contracting for the first time in a decade – 49.9 in August from 50.4 in the previous month. This mainly reflected a weaker contribution from new orders, which offset a stabilisation in employment and fractionally faster output growth. Manufacturing companies continued to trim their inventory levels in August, which was mainly linked to concerns about the demand outlook. Likewise, pre-production inventories fell for the fourth month running, while stocks of finished goods decreased to the greatest extent since 2014.

From the monetary front, at the Jackson Hole meeting that took place in August, the Fed said it will act appropriately to sustain the expansion within the strong labour market, in addition to achieve its inflation target of 2 percent. The Federal Reserve Chairman noted that the U.S economy continues to perform well but faces significant risks due to ongoing trade tensions, implying a more dovish stance.

The U.S. credit market was very sensitive to benchmark yields with the 10-Year U.S. Treasury yield trading within the 1.49-1.89 yield range, while U.S. High Yield gained 0.39 percent.

On a year to date basis, the fund registered a gain of just over 8 percent, in line with the more cautious stance being taken by the Manager in order to preserve its attractive risk adjusted metrics. In fact, in the month the Manager continued to decrease the fund’s beta. Going forward the Manager will continue to seek attractive opportunities in line with market conditions.

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 $17.9 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 2013 2012 2011*** Since Inception***
    Share Class D – Total Return 3.11 11.99  -1.05 36.82
    Calendar Year Performance YTD 2018 2017 2016
    Share Class D- Total Return 7.99 -3.22 5.70 10.02
    Rolling 12 month performance to last month end 29/08/18

    28/08/19

    30/08/17 

    29/08/18

    31/08/16

     30/08/17

    26/08/15 

    31/08/16

    Share Class D- Total Return 7.18 -1.33 6.15 5.59

    *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 21.6
    Russia 15.3
    Brazil 12.0
    UK 8.5
    Turkey 4.4
    Indonesia 4.1
    Switzerland 3.1
    China 3.0
    France 2.3
    Italy 2.3

    *including exposures to CIS

  • Maturity Buckets*

    Age %
    0 – 5 years 69.0
    5 – 10 years 9.6
    10 years+ 2.9

    *based on the Next Call Date

    Top 10 Exposures %

    Exposure %
    iShared USD HY Corp 4.1
    7.00% KB Home 2021 3.6
    4.75% Lennar 2022 2.9
    5.375% Petrobras 2021 2.9
    5.625% Ineos 2024 2.8
    5.299% Petrobras 2025 2.4
    6.25% IGT 2022 2.4
    5.25% Sberbank 2023 2.3
    4.375% Ford Motors 2023 2.3
    4.10% MMC Norilsk 2023 2.3

    By Credit Rating*

    Credit Rating %
    BBB 29.8
    BB 34.7
    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 13.3
    Bonds 82.6
    CIS/ETFs 4.1

    Sector Breakdown*

    Sector %
    Financial 23.4
    Basic Materials 14.1
    Consumer, Cyclical 13.6
    Energy 8.9
    Communications 8.9
    Consumer, Non-Cyclical 5.6
    Industrial 2.3
    Technology 2.2
    Government 2.2

    *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.