GLOBAL ASSET ALLOCATION FUND SHARE CLASS A - FACT SHEET AS AT 30 SEPTEMBER 2013
September 2013 Commentary The most important event in the US during the month of September was the withdrawal of Lawrence Summers as a candidate for the chairmanship of the US Federal Reserve Board, thereby increasing the chances that a more dovish contender could get the job. Meanwhile, the current chairman surprised the markets by announcing that the "taper" can wait. In our view this is a confirmation of our thesis (see our August Newsletter) that the US economy is weaker than it appears. The markets obviously greeted the news with considerable enthusiasm. Therefore, at least for now, bad news will continue to be good news for the US equity markets. For this reason we concentrate on specific, idiosyncratic single equity themes. In Europe the situation seems to be stabilizing despite the bad industrial production numbers that were recently released (-1.5% in July) and a decline in new auto registrations (-5% after a + 5% in July). We believe that the industrial production number should not yet be viewed with concern since it refers to July, but we will look for signs of bottoming in the releases on the real economy that refer to August. We are also heartened by the very strong September reading of the Eurozone Economic Sentiment Indicator (96.9 vs. the August reading of 95.2). For this reason we have been significantly adding equity positions in Europe.
China's situation remains ambiguous as housing growth continues to out-pace production - a possible indication of a housing bubble. We remain cautious on China's economy (and equities), but there are signs of stabilization. August industrial production, urban investment and retail sales came in quite strong (to the extent, of course, that China's statistics can be believed). We retain our small position in China's equities since Chinese equities are, in our view, cheap and, therefore, there appears to be room for further positive surprises, but we underscore that the September PMI release was disappointing. We are still looking for an appropriate entry point for the US$ and have taken half positions long term equity themes that we believe represent good long term value. In Europe we took positions in a number of stocks that would benefit from a European recovery. We have also reinvested coupon income in "peripheral" corporate bonds. We nevertheless remain in risk management mode as there are still significant risks relating to growth, valuations (particularly in the US).
Price: 97.73 as at 24 Sep 2013 Portfolio Summary Sub-Fund Name Fund Type Investment Manager Fund Advisor Custodian Fund Administrator
Investment Objectives Global Asset Allocation Fund UCITS Calamatta Cuschieri Investment Management Ltd. Privilège Management SA (Switzerland) Sparkasse Bank Malta p.l.c. Calamatta Cuschieri Fund Services Ltd. Deloitte Malta
Auditors Legal Advisors Launch Date Domicile Currency Dealing Frequency Fund Size Initial Charge Management Fee Performance Fee ISIN numbers Bloomberg Code
The objective of the Fund is to provide absolute returns over the long term by employing a series of proprietary models which, in their aggregate, create an analytic architecture that aims to identify contrarian entry points that maximise the probability of positive returns over a 5 year target horizon. The fund will attempt to achieve its objectives by investing predominantly in equity and bond markets in the G10 countries as well as, and by applying a dynamic asset allocation approach.
Investor Profile Investors seeking to achieve a positive long term return through a global asset allocation vehicle geared for absolute returns While the Fund is highly liquid, its investment strategy is designed to capture long term trends in all key sectors of the market and, therefore, requires a long term (5 years) investment horizon.
Ganado Advocates 17th September 2012 Malta Euro (€) Weekly € 4.23mn default zero, up to 2.50% 1.75% 15% HWM EUR - MT7000006045 CALCGAA MV
Performance to Date (EUR) Unit Price (EUR) 102.00 EUR Share Class
Minimum Initial Investment € 2,500 Minimum Additional Investment
100.00
€ 500 98.00
Rolling Time Period (%) 96.00
Fund
Fund
1-month
3-month
6-month
9-month
1.29%
2.08%
-0.57%
-1.88%
12-month
H1 2013
YTD
Since Inception
-2.17%
-3.88%
-1.88%
-2.27%
Source: Calamatta Cuschieri Investment Management Ltd.
Time
94.00 Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
GLOBAL ASSET ALLOCATION FUND SHARE CLASS A - FACT SHEET AS AT 30 SEPTEMBER 2013
Sector Allocation
Asset Allocation
Cash 7% Basic Materials 6% Communications 10% Consumer, Cyclical 10% Consumer, Non-Cyclical 2% Energy 0% Financial 16% Industrial 7% Technology 2% Utilities 15% Government 9% Funds 16%
Cash: 7%
Fixed Income: 67%
Equities: 10%
Funds: 16%
Geographic Allocation
Currency Exposure
Italy: 38%
Malta (Cash): 7% Spain: 10% EUR: 93%
United States: 3% Luxembourg: 7% Australia: 1% Portugal: 21%
USD: 7%
France: 4% Ireland: 2% Brazil: 1% China: 6%
Credit Rating Profile
Debt Maturity Profile AA: 2%
% of T.A. 30
A: 0%
24.5
25 20
14.8
15 BBB: 29%
10
6.9
5
Less than BBB: 36%
Calamatta Cuschieri Investment Management Ltd. 5th Floor, Valletta Buildings South Street Source: Calamatta Cuschieri Investment Management Ltd. Valletta, VLT1103
4.9
2016
2017
2.1
0 2014
Further Information
9.4 4.6
2018
2019
2023
2037
Source: Calamatta Cuschieri Investment Management Ltd.
Web: www.cc.com.mt Email:
[email protected] Tel:+356 25 688 688 Fax:+356 25 688 256
Important Information This document has been issued by Calamatta Cuschieri Investment Management Limited (“CCIM”). Calamatta Cuschieri Funds SICAV p.l.c. is licensed by the Malta Financial Services Authority. CCIM 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. It does not constitute an offer or invitation by CCIM to any person to buy or sell any investment. Any investment should be based on the full details contained in the Prospectus and any Offering Supplement thereto available from the address detailed under ‘Further Information’ above. No person should act upon any recommendation in this document without first obtaining professional investment advice. Security values may go up as well as down and past performance is not necessarily indicative of future performance, nor a reliable guide to future performance. Currency fluctuations may affect the value of investments and any income derived. This document may not be reproduced either in whole, or in part, without the written permission of CCIM. CCIM does not accept liability for any actions, proceedings, costs, demands, expenses, loss or damage arising from the use of all or part of this document. Approved and issued by Calamatta Cuschieri Investment Management Limited, 3rd Floor, Valletta Buildings, South Street, Valletta VLT 1103. Company registration number C53094.
