Investment Objectives
The Sub-Fund aims to maximise the total level of return through investment, in a diversified portfolio of Emerging Market Corporate and Government fixed income securities as well as up to 15% of the Net Assets of the Sub-Fund into emerging market equities.
In pursuing this objective, the Investment Manager shall invest primarily in a diversified portfolio of emerging market bonds rated at the time of investment “BBB+” to “CCC+” by S&P, or in bonds determined to be of comparable quality. The Fund can also invest up to 10% of its assets in non-Rated bond issues and up to 30% of its assets in non emerging market issuers. The Fund is actively managed, not managed by reference to any index.
Investor Profile
A typical investor in the Emerging Market Bond Fund would be one who is seeking to gain exposure to the Emerging Bond Market via corporate and/or sovereign bonds whilst seeking to accumulate wealth and save over time in a product that re-invests coupons received on a gross basis. Furthermore, investors in the Emerging Market Bond Fund are those with a medium to high tolerance to risk and who are planning to hold on to their investment for the medium-to-long term so as to benefit from the compound interest effect whilst also participating in the interest rate cycle as well as the investment cycle commensurate with an investment in Emerging Markets.
Fund Rules at a Glance
The Investment Manager shall invest 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 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.
- Emerging Market Issuers as per MSCI Emerging and Frontier
- Average Credit Quality of B- (or equivalent)
- Minimum Credit Rating CCC+ (or equivalent)
- Up to 30% in Non Emerging Market Issuers
- Up to 15% in Emerging Market Equities
- Up to 10% in Non-Rated Bonds
A quick introduction to our Malta Government Bond Fund.
Key Facts & Performance
Fund Manager
Jordan Portelli
Jordan is CIO at CC Finance Group. He has extensive experience in research and portfolio management with various institutions. Today he is responsible of the group’s investment strategy and manages credit and multi-asset strategies.
PRICE (USD)
$
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
$3000
FUND TYPE
UCITS
BASE CURRENCY
USD
5 year performance*
12.91%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021234
Bloomberg Ticker: CCEMBFB MV
Distribution Yield (%): 4.60
Underlying Yield (%): 6.05
Distribution: 31/03 and 30/09
Total Net Assets: $8.8 mn
Month end NAV in USD: 72.92
Number of Holdings: 48
Auditors: Grant Thornton
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
Performance To Date (USD)
Top 10 Holdings
4.7%
4.7%
3.2%
3.0%
2.6%
2.5%
2.4%
2.4%
2.4%
2.4%
Major Sector Breakdown*
Government
23.8%
Communications
9.2%
Materials
7.5%
Materials
7.4%
Utilites
7.1%
Consumer Staples
7.0%
Maturity Buckets*
Credit Ratings
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
13.8%
8.7%
7.2%
7.1%
6.8%
6.8%
5.2%
4.7%
4.7%
4.6%
Asset Allocation
Performance History (EUR)*
1 Year
3.94%
3 Year
7.63%
5 Year
12.91%
Currency Allocation
Interested in this product?
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Investment Objectives
The Sub-Fund aims to maximise the total level of return through investment, in a diversified portfolio of Emerging Market Corporate and Government fixed income securities as well as up to 15% of the Net Assets of the Sub-Fund into emerging market equities.
In pursuing this objective, the Investment Manager shall invest primarily in a diversified portfolio of emerging market bonds rated at the time of investment “BBB+” to “CCC+” by S&P, or in bonds determined to be of comparable quality. The Fund can also invest up to 10% of its assets in non-Rated bond issues and up to 30% of its assets in non emerging market issuers. The Fund is actively managed, not managed by reference to any index.
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Investor profile
A typical investor in the Emerging Market Bond Fund would be one who is seeking to gain exposure to the Emerging Bond Market via corporate and/or sovereign bonds whilst seeking to accumulate wealth and save over time in a product that re-invests coupons received on a gross basis. Furthermore, investors in the Emerging Market Bond Fund are those with a medium to high tolerance to risk and who are planning to hold on to their investment for the medium-to-long term so as to benefit from the compound interest effect whilst also participating in the interest rate cycle as well as the investment cycle commensurate with an investment in Emerging Markets.
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Fund Rules
The Investment Manager of the CC High Income Bond Funds – EUR and USD has the duty to ensure that the underlying investments of the funds are well diversified. According to the prospectus, the investment manager has to abide by a number of investment restrictions to safeguard the value of the assets
- Emerging Market Issuers as per MSCI Emerging and Frontier
- Average Credit Quality of B- (or equivalent)
- Minimum Credit Rating CCC+ (or equivalent)
- Up to 30% in Non Emerging Market Issuers
- Up to 15% in Emerging Market Equities
- Up to 10% in Non-Rated Bonds
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Commentary
March 2025
Introduction
Emerging market (EM) credit delivered strong performance throughout the first quarter of 2025, rebounding from the sell-off seen in late 2024. That earlier downturn was largely driven by heightened risk aversion ahead of the US presidential election, as markets priced in potential downside risks linked to anticipated protectionist policies, particularly trade tariffs.
Tariff-related risk remained a notable headwind even after the inauguration, with countries like China and Mexico bearing the brunt. Mexico, in particular, was seen as especially vulnerable due to its central role in addressing US border security concerns. Proposed 25% tariffs on Mexican imports, introduced in response to perceived policy shortcomings, were temporarily averted following diplomatic efforts and commitments to strengthen border enforcement.
As US exceptionalism became more pronounced – negatively impacting EM economies and contributing to a broader climate of uncertainty – certain developments proved supportive for EM credit. These included rising US policy uncertainty, a decline in 10-year US Treasury yields, and a weakening US dollar, all of which followed softening US sentiment indicators and growing concerns over economic growth. These factors provided a meaningful tailwind for EM debt. Notably, EM corporate credit posted a modest 0.10% return in March, contrasting with negative returns across global investment-grade and high-yield credit. For the quarter as a whole, EM corporate credit outperformed, delivering a 2.57% gain.
Market environment and performance
The lack of clarity stemming from the dynamic and continuously evolving geopolitical landscape is fuelling heightened uncertainty. The re-election of Donald Trump has raised concerns among US trade partners, as the risk of new tariff impositions becomes more pronounced. Mexico and Canada, in particular, have come under pressure due to perceived shortcomings in controlling fentanyl imports and alleged unfair trade practices, with threats of tariffs already being voiced. China has also faced renewed tariff measures, with Trump initially adopting a more cautious approach by imposing a 10% tariff on Chinese imports—later raised to 20%. In response, the People’s Bank of China (PBoC), contending with persistent challenges to economic recovery, has shown restraint. Rather than retaliating aggressively, it has opted for diplomatic engagement, aiming to avoid actions that could further undermine domestic consumption.
In economic numbers, China’s General Composite PMI increased to 51.8 in March 2025 from 51.5 in the previous month, marking the highest reading since last November. Still, it was the 17th month of growth in private sector activity, driven by the strongest expansion in manufacturing output in four months and a three-month peak in service sector growth. Meanwhile, China’s consumer prices dropped by 0.7% YoY in February 2025, surpassing market estimates of a 0.5% decline and reversing a 0.5% rise in the prior month. This was the first consumer deflation since January 2024, amid fading seasonal demand following the Spring Festival in late January.
Latin America’s economic landscape presents a mixed picture. Earlier concerns about resurgent inflation were alleviated by previous month’s readings, which suggested a potential disinflationary trend in some economies. However, more recent data has reignited these worries. Notably, Brazil’s inflation rate rose to 5.06% from 4.56%, surpassing market forecasts and reaching its highest level since September 2023. Mexico and Chile also saw increases, with headline inflation rising to 3.77% and 4.9%, respectively.
In Brazil, with inflation still above the central bank’s target, the policy rate has been raised three times since the beginning of the year and now stands at 14.25%.
Fund performance
The CC Emerging Market Bond Fund posted a negative return of 0.26% in March, which offset the gains achieved in the first two months of the year. For Q1, the fund delivered a return of 1.67%.
In response to ongoing market volatility and expectations of a prolonged period of elevated Federal Reserve policy rates, the portfolio manager continued to actively manage risk and yield. After reducing exposure to tariff-sensitive issuers, increasing allocations to income-generating securities, and mitigating interest rate duration in the previous month, the manager largely maintained the portfolio’s current allocation in March. The only adjustment made was a reduction in exposure to sovereigns through ETFs, which effectively lowered the portfolio’s duration.
Market and investment outlook
Looking ahead, policy uncertainty under the new US administration, upcoming Federal Reserve decisions, and the broader trajectory of global interest rates will remain key drivers. Should current economic uncertainty persist, a shift toward a more dovish stance by the Fed could prompt further depreciation of the US dollar, a trend that has already begun to emerge in recent weeks.
For the CC Emerging Market Bond Fund, the portfolio manager will maintain a dynamic approach, actively assessing the evolving market landscape to capitalize on attractive credit opportunities. Consistent with recent strategies, portfolio adjustments will be made to align with prevailing yield conditions and optimize duration, as deemed prudent. Furthermore, the manager will vigilantly monitor the geopolitical landscape within emerging markets, particularly the potential for escalating tensions, which continue to present a source of market uncertainty.
-
Key facts & performance
Fund Manager
Jordan Portelli
Jordan is CIO at CC Finance Group. He has extensive experience in research and portfolio management with various institutions. Today he is responsible of the group’s investment strategy and manages credit and multi-asset strategies.
PRICE (USD)
$
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
$3000
FUND TYPE
UCITS
BASE CURRENCY
USD
5 year performance*
12.91%
*View Performance History below
Inception Date: 02 Nov 2017
ISIN: MT7000021234
Bloomberg Ticker: CCEMBFB MV
Distribution Yield (%): 4.60
Underlying Yield (%): 6.05
Distribution: 31/03 and 30/09
Total Net Assets: $8.8 mn
Month end NAV in USD: 72.92
Number of Holdings: 48
Auditors: Grant Thornton
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
Performance To Date (USD)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
5.8% Oryx Funding Ltd 20314.7%
6.625% NBM US Holdings Inc 20294.7%
3.25% Export-Import BK India 20303.2%
iShares JPM USD EM Bond3.0%
7.25% Gusap III LP 20442.6%
6.625% Oztel Holdings Ltd 20282.5%
6.033% Banco Santander SA 20352.4%
5.25% KSA Sukuk Ltd 20342.4%
5% Takeda Pharmaceutical 20282.4%
6.5^ Petrobras Global Finance 20332.4%
Top Holdings by Country*
Brazil13.8%
Mexico8.7%
Oman7.2%
India7.1%
Turkey6.8%
Indonesia6.8%
United States5.2%
Saudi Arabia4.7%
United Kingdom4.7%
Spain4.6%
*including exposures to CISMajor Sector Breakdown*
Government
23.8%
Communications
9.2%
Materials
7.5%
Materials
7.4%
Utilites
7.1%
Consumer Staples
7.0%
*excluding exposures to CISAsset Allocation
Cash 2.5%Bonds (incl. ETFs) 97.5%Maturity Buckets*
46.5%0-5 Years38.3%5-10 Years7.8%10 Years+*based on the Next Call DatePerformance History (EUR)*
1 Year
3.94%
3 Year
7.63%
5 Year
12.91%
* The USD Distributor Share Class (Class B) was launched on 03 November 2017.** Performance figures are calculated using the Value Added Monthly Index "VAMI" principle. The VAMI calculates the total return gained by an investor from reinvestment of any dividends and additional interest gained through compounding.*** Returns quoted net of TER. Entry and exit charges may reduce returns for investors.**** The Annualised rate is an indication of the average growth of the Fund over one year. The value of the investment and the income yield derived from the investment, if any, may go down as well as up and past performance is not necessarily indicative of future performance, nor a reliable guide to future performance. Hence returns may not be achieved and you may lose all or part of your investment in the Fund. Currency fluctuations may affect the value of investments and any derived income.Currency Allocation
USD 98.7%Euro 1.3% -
Downloads
Commentary
March 2025
Introduction
Emerging market (EM) credit delivered strong performance throughout the first quarter of 2025, rebounding from the sell-off seen in late 2024. That earlier downturn was largely driven by heightened risk aversion ahead of the US presidential election, as markets priced in potential downside risks linked to anticipated protectionist policies, particularly trade tariffs.
Tariff-related risk remained a notable headwind even after the inauguration, with countries like China and Mexico bearing the brunt. Mexico, in particular, was seen as especially vulnerable due to its central role in addressing US border security concerns. Proposed 25% tariffs on Mexican imports, introduced in response to perceived policy shortcomings, were temporarily averted following diplomatic efforts and commitments to strengthen border enforcement.
As US exceptionalism became more pronounced – negatively impacting EM economies and contributing to a broader climate of uncertainty – certain developments proved supportive for EM credit. These included rising US policy uncertainty, a decline in 10-year US Treasury yields, and a weakening US dollar, all of which followed softening US sentiment indicators and growing concerns over economic growth. These factors provided a meaningful tailwind for EM debt. Notably, EM corporate credit posted a modest 0.10% return in March, contrasting with negative returns across global investment-grade and high-yield credit. For the quarter as a whole, EM corporate credit outperformed, delivering a 2.57% gain.
Market environment and performance
The lack of clarity stemming from the dynamic and continuously evolving geopolitical landscape is fuelling heightened uncertainty. The re-election of Donald Trump has raised concerns among US trade partners, as the risk of new tariff impositions becomes more pronounced. Mexico and Canada, in particular, have come under pressure due to perceived shortcomings in controlling fentanyl imports and alleged unfair trade practices, with threats of tariffs already being voiced. China has also faced renewed tariff measures, with Trump initially adopting a more cautious approach by imposing a 10% tariff on Chinese imports—later raised to 20%. In response, the People’s Bank of China (PBoC), contending with persistent challenges to economic recovery, has shown restraint. Rather than retaliating aggressively, it has opted for diplomatic engagement, aiming to avoid actions that could further undermine domestic consumption.
In economic numbers, China’s General Composite PMI increased to 51.8 in March 2025 from 51.5 in the previous month, marking the highest reading since last November. Still, it was the 17th month of growth in private sector activity, driven by the strongest expansion in manufacturing output in four months and a three-month peak in service sector growth. Meanwhile, China’s consumer prices dropped by 0.7% YoY in February 2025, surpassing market estimates of a 0.5% decline and reversing a 0.5% rise in the prior month. This was the first consumer deflation since January 2024, amid fading seasonal demand following the Spring Festival in late January.
Latin America’s economic landscape presents a mixed picture. Earlier concerns about resurgent inflation were alleviated by previous month’s readings, which suggested a potential disinflationary trend in some economies. However, more recent data has reignited these worries. Notably, Brazil’s inflation rate rose to 5.06% from 4.56%, surpassing market forecasts and reaching its highest level since September 2023. Mexico and Chile also saw increases, with headline inflation rising to 3.77% and 4.9%, respectively.
In Brazil, with inflation still above the central bank’s target, the policy rate has been raised three times since the beginning of the year and now stands at 14.25%.
Fund performance
The CC Emerging Market Bond Fund posted a negative return of 0.26% in March, which offset the gains achieved in the first two months of the year. For Q1, the fund delivered a return of 1.67%.
In response to ongoing market volatility and expectations of a prolonged period of elevated Federal Reserve policy rates, the portfolio manager continued to actively manage risk and yield. After reducing exposure to tariff-sensitive issuers, increasing allocations to income-generating securities, and mitigating interest rate duration in the previous month, the manager largely maintained the portfolio’s current allocation in March. The only adjustment made was a reduction in exposure to sovereigns through ETFs, which effectively lowered the portfolio’s duration.
Market and investment outlook
Looking ahead, policy uncertainty under the new US administration, upcoming Federal Reserve decisions, and the broader trajectory of global interest rates will remain key drivers. Should current economic uncertainty persist, a shift toward a more dovish stance by the Fed could prompt further depreciation of the US dollar, a trend that has already begun to emerge in recent weeks.
For the CC Emerging Market Bond Fund, the portfolio manager will maintain a dynamic approach, actively assessing the evolving market landscape to capitalize on attractive credit opportunities. Consistent with recent strategies, portfolio adjustments will be made to align with prevailing yield conditions and optimize duration, as deemed prudent. Furthermore, the manager will vigilantly monitor the geopolitical landscape within emerging markets, particularly the potential for escalating tensions, which continue to present a source of market uncertainty.