• CC FUNDS 2017_WEB BANNER EURO-02

High Income Euro Accumulator

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

Commentary

January 2018 Commentary

Credit once again posted a steady month, although it could have been much stronger were it not for the correction witnessed in the last week of January. In 2018, the asset class started in the same vein as it left off in 2017 – credit spreads have tightened even further as the upbeat global economy spurred risk assets on. The primary market too started at relatively elevated levels for this time of the year.

To date, the market has managed to absorb the supply in its abundance without causing spreads to widen, sending valuations higher and credit spreads, particularly the higher beta higher yielding segment of the asset class. True, we have seen an element of weakness towards the latter stages of the month, raising concerns of a bond sell off, but in essence, there does not seem to be any imminent event, given the current prevailing market conditions, which has the potential to derail markets any time soon.

The global economy data releases so far this year indicate that the things are shaping up for the global economy to remain on a stable path, albeit with some expected glitches. For example, recent ECB minutes suggest that inflation has stalled but give us reason to believe that QE will continue to be unwound and possibly have a rate hike by the end of the year. Higher inflation, which could result in bond yields in a rate higher than the markets forecast, together with tighter monetary policy. Recent activity in the sovereign bond market gave us a snippet of how fast benchmark yields could rise.

The idea of a weak bond market, particularly within the investment grade space has been dwindling on investors’ minds for some time now. Treasuries and Bunds had, at least till the last quarter of 2017, been stubbornly hovering and anchoring at low levels, but now Bund yields over 0.7% and Treasuries over 2.7%. To date, the rise in benchmark yields has been relatively muted and contained by central bank talk, however, market participants are aware that more monetary policy normalisation is in store in the US and Europe, and may add to investor’s woes about concerns about the longevity of the multi-decade bull market.

What is key at this stage is the way central banks manage to satiate investor expectations on one hand and control the possible spill-over to risk assets. This is going to be key going forward, both to global high yield bonds as well as emerging markets and equity markets.

Since the last quarter of 2016, emerging market credit and equities have been the winning asset class and region, 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.

How long will bonds continue to rally and, when yields eventually begin to rise, will the move be sharp enough and not give them enough time to exit the market due to the vanishing of bids on the market? This is what is concerning the bond investors of late, and has resulted in a marked repricing in both the sovereign bond market and lower end of the credit spectrum. Tough question but it seems apparent that, now more than ever, markets are paying attention to central banks’ more hawkish tones and warming to that fact that rates will not remain low forever.

Factsheet

  • NAV/Price: Click here for latest Price

    Sub-Fund Name High Income Bond Fund – EUR (Accumulator)
    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 30th May 2013
    Domicile Malta
    Currency Euro (€)
    Dealing Frequency Weekly
    Fund Size €49.8mn
    Number of Holdings 80
    Initial Charge up to 2.5%
    Management Fee 1%
    Dividend Payment Dates 31 March
    30 September
    ISIN numbers EUR – MT7000007761
    Minimum Initial Investment € 2,500
    Minimum Additional Investment € 500

    Performance History

    Calendar Year Performance YTD 2017 2016 2015 Since
    Inception *
    Share Class A – Total Return 0.15 5.32 4.96 -0.89 15.59
    Rolling 12 month performance to last month end 25/01/17

    31/01/18

    27/01/16

    25/01/17

    28/01/15

    27/01/16

    29/01/14

    28/01/15

    Share Class A – Total Return 4.93 6.84  -2.99  2.23

    *The Accumulator Share Class (Class A) was launched on 29 May 2013.

    Top 10 By Country*

    Country %
    Germany 12.9
    France 9.2
    Spain 8.1
    Great Britain 6.9
    Luxembourg 6.5
    Brazil 5.0
    Malta 5.0
    Switzerland 4.4
    United States 4.0
    Netherlands 3.1

    *including exposures to CIS

    By Credit Rating*

    Credit Rating %
    BBB 20.2
    BB 25.8
    B 38.0
    CCC+ 0.0
    Less than CCC+ 1.2
    Not Rated 4.3
    Average Credit Rating BB-

    *excluding exposures to CIS

  • Top 10 Exposures %

    Exposure %
    4.125% HP Pelzer 2024 2.2
    6.125% Chemours 2023 2.0
    9.25% EIB 2018 2.0
    4.00% Ineos 2023 1.9
    6.50% Lecta 2023 1.8
    5.25% Intralot 2024 1.7
    7.25% Aldesa 2021 1.6
    6.25% Synlab Bondco 2022 1.6
    7.50% Garfunkelux 2022 1.6
    6.25% Banco Santander 2166 1.6

    Historical Performance to Date (EUR)

    Historical Performance to Date (EUR)

    Currency Allocation

    Currency %
    EUR 86.9
    USD 11.1
    Others 2.0

    Asset Allocation

    Currency %
    Cash 7.9
    Bonds 88.9
    CIS/ETFs 3.2

    Maturity Buckets*

    Age %
    0 – 5 years 59.3
    5 – 10 years 13.6
    10 years+ 1.8

    *based on the Next Call Date

    Sector Breakdown*

    Sector %
    Financial 25.4
    Consumer, Cyclical 13.6
    Consumer, Non-Cyclical 11.7
    Basic Materials 10.1
    Industrial 9.1
    Communications 8.6
    Energy 4.0
    Government 3.8
    Utilities 2.7

    *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 SEPTEMBER) AS A PERCENTAGE OF THE NAV EXPRESSED ON AN ANNUALISED BASIS (SOURCE: CALAMATTA CUSCHIERI INVESTMENT MANAGEMENT).  PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE PERFORMANCE. THE VALUE OF INVESTMENTS, 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