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Euro Equity Fund

  • INVESTMENT OBJECTIVES

    Diversifying into alternative asset classes is becoming increasingly important. With interest rates at all-time lows and investors seeking returns, equities are looking more attractive. The CC Euro Equity Fund aims to achieve a higher level of return for investors by investing, mainly, in a diversified portfolio of blue-chip equities (such as stocks and shares). The CC Euro Equity Fund invests in Blue Chip companies trading on major European markets. Blue Chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

    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
→ Top up
→ Monitoring and Pricing
→ Entry and Exit Fees
→ Minimum Investment
→ Fund Rules at a glance
→ Target dividend
→ Other Information

Commentary

June 2019 Commentary

For much of this year, equity markets have enjoyed a healthy climb, assisted by a dovish tilt from central banks, as well as the possibility of a trade deal between the US and China.

To add on, June was an eventful month for markets and the performance was a breath of fresh air after May’s sell-off and the associate spike in volatility. The month closed with the G-20 meeting that resulted in a restart in trade consultations between the U.S and China as well as an agreement of not imposing new tariffs. In addition to, the Fed’s released minutes during the month increased the odds of a rate cut by the end of July i.e. adding further monetary stimulus in an attempt to delay a potential recession.

Macroeconomic data published in the Eurozone showed inflation figures that were not in line with ECB expectations as core and headline inflation were lower. Due to this, Draghi indicated that additional monetary stimulus was on the horizon, which caused a rally in European stock markets and European bond yields to tumble.

In addition to, the Eurozone’s manufacturing PMI showed slight weakness leading to the fifth straight month of contraction in factory activity amid ongoing global trade tensions and political uncertainty.

Brexit remains a major problem for Europe given that the sentiment of the successive Prime Minister candidates under consideration, are in favour of a no-deal Brexit. Moreover, the Italian economy continues to lag in comparison to its European peers based on a conflict with the European Commission in regards to the budget celling. Such conflict could potentially cause the European Commission to take measures against Italy.

Furthermore, stimulus in China could help Europe in the second half of this year, and another positive factor for the region is that the U.S has put the discussion over global auto tariffs on hold for up to six months.

The favourable sentiment from the G-20 meeting along with possible monetary stimulus on the horizon, led the European stock market to rally by 5.9 percent and the S&P 500 by 6.8 percent, by the end of June.

The Investment Manager (IM) remains of the opinion that markets have further to gain as we move into earnings season. In addition to, the G-20 meeting led the IM to be confident that a form of progress will continue as trade talks resume. A compromise should already be enough to remove a cloud of uncertainty for consumers and for business to support the economy. The (IM) has built positions in high conviction names and further aims to benefit the portfolio by adapting to the market scenario. With this in mind, the IM is confident that the stocks in the portfolio should generate alpha for the fund and boost performance.

Factsheet

  • NAV/Price: Click Here for latest price

    Sub-Fund Name Euro Equity Fund
    Investment Manager Calamatta Cuschieri Investment Management Ltd
    Fund Advisor n/a
    Custodian Sparkasse Bank Malta p.l.c.
    Fund Administrator CC Fund Services (Malta) Limited.
    Auditors Deloitte Malta
    Legal Advisors Ganado & Associates
    Launch Date 1st November 2013
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Daily
    Fund Size €7.3 M
    Number of Holdings 23
    Initial Charge up to 2.5%
    Management Fee 1.35%
    Dividend Payment Dates N/A
    ISIN numbers EUR – MT7000009031
    Minimum Initial Investment € 2,500
    Minimum Additional Investment € 500

    Country Exposure*

    Country %
    Germany 35.5
    France 32.2
    Malta 14.7
    United States 8.3
    Netherlands 4.0

    *including exposures to ETFs

    Top Equities

    Equity %
    Renault SA 5.3
    Allianz SE 5.0
    L’Oreal 4.8
    BMIT Technologies plc 4.7
    Deutsche Post 4.5

    Top ETFs

    ETF %
    Lyxor ETF Eurostoxx 600 Tech 6.7
    Lyxor ETF Eurostoxx 600 H-care 6.5
    iShares Eur600 BasicResources 4.5
    iShares Eur600 Oil&Gas 3.8
    Lyxor DAX ETF 3.2

  • Historical Performance to Date (EUR)

    Performance History

    Calendar Year Performance YTD 2018 2017 2016 2015 Since
    Inception*
    Total Return 17.94 -18.36 10.39 -0.93  5.37 13.85
    Calendar Year Performance 1-month 3-month 6-month 9-month 12-month
    Total Return 5.74 3.54 17.94 -1.62 -1.60

    * The Euro Equity Fund was launched on 31 October 2013.

    Currency Allocation

    Currency %
    EUR 91.8
    USD 8.2
    GBP 0.0

    Asset Allocation

    Asset %
    Cash 9.9
    Equities 90.1

    Sector Breakdown

    Sector %
    ETFs 24.7
    Financial 16.7
    Consumer, Cyclical 12.1
    Consumer, Non-Cyclical 11.9
    Technology 11.1
    Industrial 8.6
    Communications 3.8
    Energy 1.2

Legal Information

Calamatta Cuschieri Investment Services (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. The CC Euro Equity Fund is a sub fund of  CCFundsSicav plc and is authorised by the MFSA. Performance figures quoted refer to the past and are not a guarantee for future performance. The value of the investment may rise as well as fall. Investors may incur a subscription charge and may be subject to tax on distributions. Investment should be based on the CCFunds Sicav plc prospectus and KIID document, which may be obtained from CCIS offices. Issued by CCIS.
 
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.
 
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.