• 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

July 2017 Commentary

July was characterised by a bout of volatility in the early trading sessions of the month, after the large selloff in long-dated government bonds followed by heightened expectations in anticipation of the mid July ECB meeting.

Draghi’s speech and accompanying statement placed more emphasis this time round on inflation rather than on growth, as he had done in his Sintra addressing earlier on in the month, opining that that no debate had been held on the timing or even the direction of the ECB’s next move. However, he indicated that the markets should expect autumn to be key, leading us to believe that Jackson Hole is an unlikely setting for Draghi to announced any form of reduction in QE, and therefore shift our focus on the September and October rate setting meetings for any form of concrete announcement.

Yields on Malta Government Stocks mirrored almost perfectly the movement in their European counterparts, and were therefore not immune to the volatility and activity across the remainder of the single currency region. With focus growing on central banks’ reminders and warming to that fact that rates will not remain low forever, we think that the volatility and magnitude of moves witnessed over recent weeks are merely a taste of what could materialise, should the lid on interest rates be removed.

In line with the strategy adopted during the month of June, the Investment Manager sought to gradually build exposures to MGS at the belly of the curve, most notably the 2021-2029 region without excessively exposing the fund to interest rate risk, in line with his view of a bear flattening curve in medium term. In addition, new positions were added in a select number of core and peripheral
European Sovereign bonds in an attempt to boost the yield of the Sub-Fund.

Fact sheet

  • Top By Country*

    Country %
    Malta 91.4
    Belgium 2.0
    Slovenia 1.8
    France 1.7
    Italy 1.6
    Ireland 1.6

    *including exposures to CIS and Cash

    By Issuer*

    Issuer %
    Government of Malta 78.4
    Kingdom of Belgium 2.0
    Republic of Slovenia 1.8
    Lyxor EuroMTS 3-5y IG ETF 1.7
    Government of Italy 1.6
    Republic of Ireland 1.6

    *excluding exposures to CIS

    Maturity Buckets*

    Age %
    0 – 5 years 12.8
    5 – 10 years 22.5
    10 years+ 49.5

    *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 -0.17 -0.03 -0.08 n/a n/a -0.17
    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

     

    Asset Allocation

    Currency %
    Cash 13.0
    Bonds 85.4
    CIS/ETFs 1.7

  • Regional Allocation*

    Allocation %
    Malta 91.4
    Europe (excl. Malta) 8.6

     

    *including exposures to CIS

    * Malta exposure includes Cash Holdings

    Top 10 Exposures %

    Exposure %
    4.50% MGS 2028 8.0
    5.10% MGS 2029 7.8
    2.30% MGS 2029 7.5
    5.25% MGS 2030 7.4
    5.00% MGS 2021 6.7
    5.10% MGS 2022 6.4
    4.30% MGS 2022 6.1
    5.50% MGS 2023 5.6
    4.65% MGS 2032 4.8
    4.80% MGS 2028 4.6

    Performance to Date

    Currency Allocation

    Currency %
    EUR 100.0
    Others 0.0

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, 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103. Company registration number C53094. Additional information can be found at www.cc.com.mt