Investment Objective
The Fund aims to maximise the total level of return through investment, primarily in debt securities and money market instruments issued by the Government of Malta, and equities and corporate bonds issued and listed on the MSE.
The Investment Manager may also invest directly or indirectly up to 15% of its assets in “Non- Maltese Assets”. The Investment Manager will maintain an exposure to local debt securities of at least 55% of the value of the Net Assets of the Fund.
The Fund is actively managed, not managed by reference to any index.
Investor Profile
A typical investor in the Malta High Income Fund would be to one who is seeking to gain exposure to the local Government Bond Market and the local corporate bond and local equity markets, either by achieving capital growth and accumulation of wealth via the Accumulation Share Class, or by receiving periodical distributions which the Malta High Income Fund benefits from time to time via the Distribution Share Class.
Fund Rules
The Investment Manager aims to invest at least 85% of the Net Assets in a portfolio of income bearing securities issued or guaranteed by the Government of Malta, as well as equities and corporate bonds issued and listed on the Malta Stock Exchange.
Such exposure may also be obtained by investing in eligible collective investment schemes whose investment objective and policies are consistent with those of the Malta High Income Fund.
If the Fund invests in eligible collective investment schemes managed by the Investment Manager, the Investment Manager shall reimburse the Sub-Fund any investment management and/or performance fees, as well as any applicable subscription/redemption charges, received in connection with the Sub-Fund’s investment in the eligible collective investment scheme.
- The Investment Manager will, at all times, maintain a direct exposure to local debt securities (issued or guaranteed by the Government of Malta and/or issued and listed on the Malta Stock Exchange) of at least 55% of the value of the Net Assets of the Fund.
- The Investment Manager may invest up to 10% of the net assets of the Fund in un-listed Maltese and/or Non-Maltese Assets rated B- or higher or in bonds determined to be of comparable quality by the Investment Manager
- The Fund may also invest in term deposits held with Banks regulated in Malta and other EU, EEA and OECD Member States
- This Fund shall not invest, in the aggregate, more than 10% of the Net Assets of the Fund in units or shares of other UCITS or other CISs
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 (EUR)
€
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
5 year performance*
-3.68%
*View Performance History below
Inception Date: 10 Apr 2018
ISIN: MT7000022281
Bloomberg Ticker: CCMIFAB MV
Distribution Yield (%): 4.25
Underlying Yield (%): 3.16
Distribution: 30/04 & 31/10
Total Net Assets: €16.96
Month end NAV in EUR: 83.02
Number of Holdings: 73
Auditors: Grant Thornton
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
Performance To Date (EUR)
Top 10 Holdings
4.0%
3.5%
3.3%
3.2%
3.2%
3.0%
3.0%
2.7%
2.7%
2.6%
Major Sector Breakdown*
Financials
55.2%
Consumer Staples
9.6%
Consumer Discretionary
9.4%
Communications
8.2%
Industrials
7.0%
Information Technology
4.7%
Maturity Buckets*
Risk & Reward Profile
Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top Holdings by Country*
94.5%
5.5%
Asset Allocation*
Performance History (EUR)*
1 Year
0.43%
3 Year
-1.78%
5 Year
-3.68%
Currency Allocation
Interested in this product?
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Investment Objective
The Fund aims to maximise the total level of return through investment, primarily in debt securities and money market instruments issued by the Government of Malta, and equities and corporate bonds issued and listed on the MSE.
The Investment Manager may also invest directly or indirectly up to 15% of its assets in “Non- Maltese Assets”. The Investment Manager will maintain an exposure to local debt securities of at least 55% of the value of the Net Assets of the Fund.
The Fund is actively managed, not managed by reference to any index.
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Investor profile
A typical investor in the Malta High Income Fund would be to one who is seeking to gain exposure to the local Government Bond Market and the local corporate bond and local equity markets, either by achieving capital growth and accumulation of wealth via the Accumulation Share Class, or by receiving periodical distributions which the Malta High Income Fund benefits from time to time via the Distribution Share Class.
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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
- The Investment Manager will, at all times, maintain a direct exposure to local debt securities (issued or guaranteed by the Government of Malta and/or issued and listed on the Malta Stock Exchange) of at least 55% of the value of the Net Assets of the Fund.
- The Investment Manager may invest up to 10% of the net assets of the Fund in un-listed Maltese and/or Non-Maltese Assets rated B- or higher or in bonds determined to be of comparable quality by the Investment Manager
- The Fund may also invest in term deposits held with Banks regulated in Malta and other EU, EEA and OECD Member States
- This Fund shall not invest, in the aggregate, more than 10% of the Net Assets of the Fund in units or shares of other UCITS or other CISs
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Commentary
February 2025
Introduction
In 2024, Malta’s economy sustained its growth trajectory, driven by strong domestic demand and solid export performance. Tourism arrivals to Malta remained on the rise, while employment stayed robust, with unemployment falling to 3.1%.
Malta’s economy grew by 2.8% (annualized) in the fourth quarter of 2024, slowing from a 4.9% gain in the previous three-month period. This marked the weakest expansion since Q1 of 2021, influenced by a slowdown in household consumption. At the same time, government spending (2.2% vs 1.4%) increased at a faster pace. On net external demand, exports remained unchanged while imports ticked lower.
Inflation pressures on consumers also eased, with the annual inflation holding steady at 1.8% in January from 2.1% in the previous month. This was the lowest inflation rate in over three years, as prices for food & non-alcoholic beverages, housing & utilities, and recreation all moderated.
Market environment and performance
In Europe, the economic picture is brightening after stagnation in Q4 2024. February’s PMI reading remaining steady at 50.2, unchanged from the previous month, and indicating a marginal economic growth in the bloc. Spain led the expansion with a strong and accelerating rise in business activity, while Ireland also saw faster growth, and Italy returned to expansion for the first time in four months. In contrast, Germany experienced only modest growth, and France’s activity continued to decline.
On the price front, Inflation eased to 2.4%, down from a six-month high of 2.5% but slightly above market expectations of 2.3%, as price growth slowed for services and energy. Core inflation which excludes volatile energy, food, alcohol & tobacco prices, fell to 2.6% in February, the lowest since January 2022.
The labour market, remained healthy, with the unemployment rate revolving at notable lows (6.2% in January), and significantly below the 20-year average.
Fund performance
In February, the Malta High Income Fund registered a gain of 0.65% for the month, underperforming its internally compared benchmark which saw a gain of 1.49%. This underperformance was primarily due to the equity market’s strong 4.18% return.
Market and investment outlook
The credit market narrative at the start of the year remained largely unchanged, with investor attention focused on the dynamic political landscape, central bank policies, and economic data. Economic indicators, both leading and lagging, continue to emphasize a regional divergence. The US, despite the Federal Reserve’s “higher for longer” stance, continues to demonstrate resilient broad-based strength, underpinned by a robust labour market that has thus far supported consumer spending. Meanwhile, Europe has shown tentative signs of growth acceleration following a Q4 2024 stagnation, with private sector activity in expansionary territory for the second consecutive month.
Locally, we expect Malta’s economy to continue performing well. The sustained decline in inflation, coupled with recent tax cuts, shall bolster domestic consumer spending. Additionally, the strong influx of tourists in 2024 is a positive sign. Optimism within the tourism sector is expected to grow, benefiting the economy further if this upward trend continues.
In line with recent portfolio adjustments, we will continue to modify the portfolio’s duration as deemed necessary and appropriate. Additionally, we aim to maintain the fund’s exposure to other European sovereigns, utilizing the permitted 15% maximum allocation.
-
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 (EUR)
€
ASSET CLASS
Bonds
MIN. INITIAL INVESTMENT
€2500
FUND TYPE
UCITS
BASE CURRENCY
EUR
5 year performance*
-3.68%
*View Performance History below
Inception Date: 10 Apr 2018
ISIN: MT7000022281
Bloomberg Ticker: CCMIFAB MV
Distribution Yield (%): 4.25
Underlying Yield (%): 3.16
Distribution: 30/04 & 31/10
Total Net Assets: €16.96
Month end NAV in EUR: 83.02
Number of Holdings: 73
Auditors: Grant Thornton
Legal Advisor: Ganado Advocates
Custodian: Sparkasse Bank Malta p.l.c.
Performance To Date (EUR)
Risk & Reward Profile
1234567Lower Risk
Potentialy Lower Reward
Higher Risk
Potentialy Higher Reward
Top 10 Holdings
4% Central Business Centres 20334.0%
3.9% Browns Pharma 20313.5%
4.65% Smartcare Finance plc 20313.3%
4.35% SD Finance plc 20273.2%
3.5% GO plc 20313.2%
4.5% Endo Finance plc 20293.0%
3.75% Tum Finance plc 20293.0%
5.9% Together Gaming Solution 20262.7%
GO plc2.7%
Harvest Technology plc2.6%
Top Holdings by Country*
Malta94.5%
Other5.5%
*including exposures to CIS and CashMajor Sector Breakdown*
Financials
55.2%
Consumer Staples
9.6%
Consumer Discretionary
9.4%
Communications
8.2%
Industrials
7.0%
Information Technology
4.7%
*including exposures to CISAsset Allocation*
Cash 0.0%Bonds 80.4%Equities 19.5%* including exposures to CISMaturity Buckets*
40.6%0-5 Years36.2%5-10 Years0.6%10 Years+*based on the Next Call DatePerformance History (EUR)*
1 Year
0.43%
3 Year
-1.78%
5 Year
-3.68%
*The Distributor Share Class (Class B) was launched on 10 April 2018** 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. 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.*** Returns quoted net of TER. Entry and exit charges may reduce returns for investors.Currency Allocation
Euro 100% -
Downloads
Commentary
February 2025
Introduction
In 2024, Malta’s economy sustained its growth trajectory, driven by strong domestic demand and solid export performance. Tourism arrivals to Malta remained on the rise, while employment stayed robust, with unemployment falling to 3.1%.
Malta’s economy grew by 2.8% (annualized) in the fourth quarter of 2024, slowing from a 4.9% gain in the previous three-month period. This marked the weakest expansion since Q1 of 2021, influenced by a slowdown in household consumption. At the same time, government spending (2.2% vs 1.4%) increased at a faster pace. On net external demand, exports remained unchanged while imports ticked lower.
Inflation pressures on consumers also eased, with the annual inflation holding steady at 1.8% in January from 2.1% in the previous month. This was the lowest inflation rate in over three years, as prices for food & non-alcoholic beverages, housing & utilities, and recreation all moderated.
Market environment and performance
In Europe, the economic picture is brightening after stagnation in Q4 2024. February’s PMI reading remaining steady at 50.2, unchanged from the previous month, and indicating a marginal economic growth in the bloc. Spain led the expansion with a strong and accelerating rise in business activity, while Ireland also saw faster growth, and Italy returned to expansion for the first time in four months. In contrast, Germany experienced only modest growth, and France’s activity continued to decline.
On the price front, Inflation eased to 2.4%, down from a six-month high of 2.5% but slightly above market expectations of 2.3%, as price growth slowed for services and energy. Core inflation which excludes volatile energy, food, alcohol & tobacco prices, fell to 2.6% in February, the lowest since January 2022.
The labour market, remained healthy, with the unemployment rate revolving at notable lows (6.2% in January), and significantly below the 20-year average.
Fund performance
In February, the Malta High Income Fund registered a gain of 0.65% for the month, underperforming its internally compared benchmark which saw a gain of 1.49%. This underperformance was primarily due to the equity market’s strong 4.18% return.
Market and investment outlook
The credit market narrative at the start of the year remained largely unchanged, with investor attention focused on the dynamic political landscape, central bank policies, and economic data. Economic indicators, both leading and lagging, continue to emphasize a regional divergence. The US, despite the Federal Reserve’s “higher for longer” stance, continues to demonstrate resilient broad-based strength, underpinned by a robust labour market that has thus far supported consumer spending. Meanwhile, Europe has shown tentative signs of growth acceleration following a Q4 2024 stagnation, with private sector activity in expansionary territory for the second consecutive month.
Locally, we expect Malta’s economy to continue performing well. The sustained decline in inflation, coupled with recent tax cuts, shall bolster domestic consumer spending. Additionally, the strong influx of tourists in 2024 is a positive sign. Optimism within the tourism sector is expected to grow, benefiting the economy further if this upward trend continues.
In line with recent portfolio adjustments, we will continue to modify the portfolio’s duration as deemed necessary and appropriate. Additionally, we aim to maintain the fund’s exposure to other European sovereigns, utilizing the permitted 15% maximum allocation.