• Emerging Market Bond Fund_EMBF_April 2019-02

EM Bond Fund USD Accumulator

  • Investment Objectives

    The objective of the Sub-Fund is to endeavour to maximise the total level of return for investors through investment primarily, in a well-diversified portfolio of debt securities and other fixed-income or interest bearing securities.

    Key Features of the Fund

    The Fund aims to maximise the total level of return for investors through investment, primarily,but not solely in a diversified portfolio of Emerging Market Corporate fixed income securities and Emerging Market Government fixed income securities with maturities of 10 years or less, rated at the time of investment “Baa1” to “Caa1” by Moody’s or “BBB+” to “CCC+” by S&P, or in bonds determined to be of comparable quality by the Investment Manager. The Investment Manager may also invest up to 10% of the Net Assets of the Sub-Fund in unrated fixed income securities. The Investment Manager is expected to focus on Emerging Market fixed income securities, corporate and/or government, and seek to maintain an average credit quality of “B3” by Moody’s or “B-” by S&P, although issues may be rated lower or higher. The Investment Manager may also invest up to 15% of the Net Assets of the Sub-Fund in Emerging Market equities. The Investment Manager will not be targeting equities of a particular market capitalisation.

    Structure

    The Sub-Fund forms part of the CCFunds 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 CC Emerging Market Bond Fund is managed by a group of investment professionals at Calamatta Cuschieri Investment Management Limited who monitor market developments on a daily basis.

Overview

→ Investor Profile
→ Currencies Available
→ Dividend Payment
→ Monitoring and Pricing
→ Entry and Exit Fee
→ Minimum Investment
→ Fund Rules at a Glance
→ Other Information

Commentary

June 2019 Commentary

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.

In the Emerging Market world, Turkish assets rallied during June following a decisive opposition win in Istanbul’s mayoral election re-run. Erdogan conceded defeat in favour of CHP candidate Ekrem, who was on course to capture 54 percent of votes.

We also saw Japanese Prime Minister Abe and China’s President Xi meet up. China and Japan are major trade and investment partners. While it is no secret that they are rivals for political and economic influence, they have come to realise the need to work together in the face of their changing relations with the U.S.

With more of a positive tone in markets in the month of June, European High Yield and U.S High Yield both gained and Emerging Markets were no exception. Emerging markets saw a 2.71 percent gain in the month of June, once again beating European High Yield and U.S High Yield. Emerging markets have shown more resilience to the ongoing trade war uncertainties due to reporting resilient economic figures unlike the U.S. In fact, emerging market currencies appreciated against the dollar, China included.

Given that a possible rate cut could be seen in the U.S., this could possibly result in EM currencies gaining even further. This bodes well for EM economies and credit markets as economic conditions are still favourable for EM corporate debt.

The Investment Managers (IMs) believe that emerging market valuations are attractive amidst ongoing uncertainties as they showed the most resilience. The Manager still believes EM offers value based on fundamentals. Indeed, on a more dovish Fed the IM opted in opening a position in the government of Indonesia based on a further increase in the Indonesian rupiah and a more benevolent domestic economy. In addition, the IM opened a position in the newly issued YPF, an oil and gas name which is 51 percent owned by the government of Argentina.

Factsheet

  • NAV/Price: Latest Price available here

    Sub-Fund Name Emerging Market Bond Fund – Class A (Accumulator) – USD
    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 Advocates
    Launch Date 02 November 2017
    Domicile Malta
    Currency USD ($)
    Dealing Frequency Daily
    Fund Size $11.2 M
    Number of Holdings 40
    Initial Charge up to 2.50%
    Management Fee 0.011%
    Dividend Payment Dates N/A
    ISIN number MT7000021226
    Minimum Initial Investment $3,000
    Minimum Additional Investment $500

    Top 10 By Country*

    Country %
    Brazil 15.5
    China 12.8
    Russia 11.1
    Malta (incl. cash) 10.3
    Indonesia 8.7
    Turkey 8.7
    Mexico 5.4
    United States 3.7
    Netherlands 3.6
    Argentina 3.4

    *including exposures to CIS, using look-through.

    Maturity Buckets*

    Age %
    0 – 5 years 73.5
    5 – 10 years 8.5
    10 years+ 5.7

    * based on the Next Call Date

    Performance History

    Calendar Year Performance  YTD 2018 2017*** 2016 Since
    Inception*
    Share Class A – Total Return 7.97 -6.17 -0.21 - 1.09
    Total Return 1-month 3-month 6-month 9-month 12-month
    Share Class A – Total Return 2.26 2.84  7.97 6.31 7.53

    * The USD Accumulator Share Class (Class A) was launched on 03 November 2017.

  • Performance History

    Top 10 Exposures %

    Exposure %
    5.299% Petrobras 2025 4.2
    6.90% Yestar Healthcare 2021 3.8
    6.50% Global Ports 2023 3.8
    4.95% Gazprom Capital 2022 3.8
    6.50% Minerva 2026 3.7
    7.25% JBS 2024 3.7
    6.625% Tupy Overseas 2024 3.7
    4.95% Veon Holdings 2024 3.7
    8.125% Global Liman 2021 3.5
    6.95% Moderland 2024 3.5

    By Credit Rating *

    Credit Rating %
    Investment Grade 18.7
    BB 44.0
    B 24.5
    CCC+ 1.8
    Less than CCC+ 0.0
    Not Rated 0.0
    Average Credit Rating BB

    * excluding exposures to CIS

    Currency Allocation

    Currency %
    USD 94.1
    EUR 5.9
    TRY 0.0

    Asset Allocation

    Currency %
    Cash 10.3
    Bonds (incl. ETFs) 87.6
    Equities (incl. ETFs) 2.1

    Sector Breakdown*

    Sector %
    Consumer, Non-Cyclical 21.8
    Communications 14.3
    Financials 11.4
    Consumer, Cyclical 11.0
    Government 11.0
    Energy 10.8
    Basic Materials 5.6
    Industrial 3.1

    *excluding exposures to CIS

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 EMERGING MARKET BOND FUND IS A SUB FUND OF CCFUNDS™ SICAV 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.

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.

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.