• NEW_MALTA BOND FUNDS 2017-02

Malta Government Bond Fund

  • INVESTMENT OBJECTIVES

    The Malta Government Bond Fund aims to maximise the total level of return for investors through investment, primarily, in debt securities and money market instruments issued or guaranteed by the Government of Malta.

    STRUCTURE

    The Sub-Fund forms part of the Calamatta Cuschieri Funds Sicav plc and Operates under the UCITS 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 Malta Government Bond Fund is 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
→ Monitoring and Pricing
→ Entry and Exit Fees
→ Minimum Investment
→ Fund Rules at a Glance
→ Other Information

Commentary

September 2017 Commentary

Yields on Malta Government Stocks mirrored almost perfectly the movement in their European counterparts, and this was reflected in the performance of the Malta Government Bond Fund during the month of September. With inflows into the fund relatively muted, the Investment Manager maintained exposures intact without excessively exposing the fund to interest rate risk, but nonetheless participated in the positive performance of Malta Government Stocks.

Taking stock of how European sovereign bonds have performed in 2017, it is fair to say that, given the inflationary backdrop in the single currency region, investors have come out of the first 9 months of 2017 relatively unscathed. In January, the market was recovering from the large sell off in European sovereign bonds in the last quarter of 2016, and speculation was rife that inflationary pressures in Europe will creep upwards, and this led to a marked reduction in duration by a large number of asset managers. Having said that, consumer price pressures have not risen as fast as had been anticipated and this is why European sovereign bonds were better bid for the greater part of 2017. But this is not to say that we did not witness any bouts of weakness or volatility.

In the Manager’s opinion, the biggest test for European Sovereign bonds is yet to come at the crucial October ECB meeting. Here the largest risk is that ECB’s Draghi announces an abrupt halt to the highly successful QE program, disrupting what can be described as a controlled rally in credit. The market is more inclined to believe that some type of announcement of the reduction in QE is imminent, so we would not be ruling out any weakness from this point forth as investors look to protect year-to-date gains. To add to that, the reverberations and impact of the Catalonian referendum is yet to be quantified and this could be another source of unknown volatility in the months ahead.

Fact sheet

  • Top By Country*

    Country %
    Malta 90.8
    Spain 1.7
    Belgium 1.6
    Slovenia 1.4
    France 1.3
    Italy 1.3
    Ireland 1.2
    Portugal 0.7

    *including exposures to CIS and Cash

    By Issuer*

    Issuer %
    Government of Malta 72.7
    Kingdom of Spain 1.8
    Kingdom of Belgium 1.6
    Republic of Slovenia 1.4
    Lyxor EuroMTS 3-5y IG ETF 1.3
    Government of Italy 1.3
    Republic of Ireland 1.2
    Government of Portugal 0.7

    *excluding exposures to CIS

    Maturity Buckets*

    Age %
    0 – 5 years 17.8
    5 – 10 years 15.0
    10 years+ 47.4

    *based on the Next Call Date

    Performance History (expressed in % terms)

    Calendar Year Performance  YTD 1-month 3-month 6-month 12-month Since
    Inception *
    Share Class A- Total Return -0.16 -0.61 -0.02 n/a n/a -0.16
    Rolling 12 month performance to last
    month end
    n/a n/a n/a n/a n/a
    Share Class A- Total Return n/a n/a n/a n/a n/a

    *The Accumulator Share Class (Class A) was launched on 21 April 2017

     

  • Regional Allocation*

    Allocation %
    Malta 90.7
    Europe (excl. Malta) 9.3

     

    *including exposures to CIS

    * Malta exposure includes Cash Holdings

    Top 10 Exposures %

    Exposure %
    2.30% MGS 2029 7.3
    4.65% MGS 2032 7.0
    5.10% MGS 2022 6.7
    4.50% MGS 2028 6.2
    5.10% MGS 2029 6.1
    4.30% MGS 2022 5.8
    5.25% MGS 2030 5.7
    5.20% MGS 2031 5.3
    5.00% MGS 2021 5.2
    5.50% MGS 2023 4.4

    Performance to Date

    Currency Allocation

    Currency %
    EUR 100.0
    Others 0.0

    Asset Allocation

    Currency %
    Cash 18.0
    Bonds 80.7
    CIS/ETFs 1.3

Legal Information

Important Information

This document has been issued by Calamatta Cuschieri Investment Management Limited (“CCIM”). Calamatta Cuschieri Funds SICAV p.l.c. is licensed by the Malta Financial Services Authority. CCIM 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. It does not constitute an offer or invitation by CCIM to any person to buy or sell any investment. Any investment should be based on the full details contained in the
Prospectus, Key Investor Information Document (KIID) and any Offering Supplement thereto available from www.cc.com.mt. No person should act upon any recommendation in this document without first obtaining professional investment advice. Security values may go up as well as down and past performance is not necessarily indicative of future performance, nor a reliable guide to future performance. Currency fluctuations may affect the value of investments and any income derived. This document may not be reproduced either in whole, or in part, without the written permission of CCIM. CCIM does not accept liability for any actions, proceedings, costs, demands, expenses, loss or damage arising from the use of all or part of this document.

Approved and issued by Calamatta Cuschieri Investment Management Limited, Ewropa Business Centre, Triq Dun Karm, B’Kara, Malta, BKR 9034. Company registration number C53094. Additional information can be found at www.cc.com.mt