• 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

May 2017 Commentary

The rally in credit markets witnessed during the first four months of the year showed no signs of abating during the month of May, with fixed income markets, particularly the higher yielding credit-based sectors within the asset class remained well in demand.

From European to US High Yield and Emerging Market Credit, and to a lesser extent European and US Investment Grade markets, credit remained better bid for most of the trading sessions within the calendar month, as the global search for yield, within an asset class, which has so far remained robust and offered minimal volatility, intensified.

In an attempt not to miss out on the rally, despite being aware that valuations and spreads appear tight and have been appearing so for quite a while, global investors and investment managers alike sought to jump on the bandwagon and reduce cash holdings for an increased preference in allocation towards fixed income.

Investors are seemingly getting the lowest yields, on bonds within the higher yielding space, such as High Yield and Emerging Markets, in there years which could well explain the level and element of complacency within the markets. Historically, high yield bonds have, more often than not, closely mirrored performance in equity markets, and the persistent buoyance being portrayed within equity markets is spreading over on to the fixed income investor.

And this mood and exuberance by investors can be justified not only by the state of the global economy, and the momentum and traction by developed economies such as the US and Germany but also by emerging market economies, but also by the positive traction gained in successive back to back earnings seasons. Apart from healthier balance sheets as well as market dynamics and recovering economies favouring bond issuers, bond issuers worldwide have taken advantage of the low yield environment and significantly reduced their borrowing costs and extended their debt maturity profiles,. So although the credit risk from the investor’s point of view has been reduced over months, market risk remains the prevailing risk being faced by investors, and the ever incessantly reduction in carry trade in their fixed income portfolios.

Economic data has been resilient, both in the Eurozone and in the US, whilst manufacturing and services data, as measured by PMIs have also surprised to the upside. Unemployment in Europe for has been creeping lower and has recently fallen to its lowest in almost eight years whilst US economic data has also remained robust.

To date, emerging market credit has been the clear winner, with the performance witnessed in EM bonds very difficult to ignore, and even more so, harder not to participate for an investor not to be participating in. Emerging markets have offered a pick-up in yield and spread terms on a like for like basis in comparison to similar rated and dated High yield issuers, and with a flat yield curve in developed economies, monies are expected to continue to flow into emerging market credit.

The large swings in the price of oil coupled with the volatility surrounding the Brazilian presidential/meat scandal was a cause for concern within the USD space, nevertheless, the market ended up the month in positive territory yet again. The manager continued to capture value trade opportunities through the purchase of GTL Trade Finance and KCA Deutag bonds in an attempt to boost performance and carry trade.

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 3.43 10.02 -2.59 1.15 28.11
    Rolling 12 month performance to last month end 25/05/16

    31/05/17

    27/05/15

    25/05/16

    28/05/14

    27/05/15

    29/05/13

    28/05/14

    Share Class D- Total Return 9.52 -1.72  0.31  4.49

    * 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 19.8
    Russia 11.2
    Brazil 10.7
    Great Britian 7.5
    Italy 4.3
    Turkey 3.2
    Germany 3.2
    Switzerland 2.8
    Luxembourg 2.7
    Netherlands 2.2

    *including exposures to CIS

    By Credit Rating*

    Rating %
    BBB 18.4
    BB 30.8
    B 31.0
    CCC+ 1.0
    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 %
    7.00% KB Home 2021 3.6
    7.00% Scientific Games 2022 2.8
    4.75% Lennar Corp 2022 2.7
    5.625% Ineos 2024 2.7
    5.375% Petrobras 2021 2.7
    6.25% IGT 2022 2.3
    6.25% GTH Finance 2020 2.2
    5.25% Sberbank 2023 2.2
    7.375% Wind Acquisition 2021 2.2
    4.25% Jaguar LandRover 2019 2.2

     

    Currency Allocation

    Currency %
    USD 100.0
    Others 0.0

    Asset Allocation

    Asset %
    Cash 14.8
    Bonds 82.1
    CIS/ETFs 3.1

    Maturity Brackets*

    Age %
    0 – 5 years 53.6
    5 – 10 years 25.0
    10 years+ 2.3

    *based on the Next Call Date

    Sector Breakdown

    Sector %
    Financial 22.5
    Consumer, Cyclical 17.1
    Basic Materials 11.2
    Communications 10.9
    Energy 8.9
    Consumer, Non-Cyclical 5.9
    Industrial 3.7
    Utilities 1.1
    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 MARCH) 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