The CC Global Balanced Income Fund has once again demonstrated its resilience and strong performance, maintaining its top quartile ranking (Total return ranking among global funds in its category on a five-year basis: source) among global funds in its category. Building on the positive momentum from 2023, the fund has delivered a robust net performance in the first six months of the year, continuing to attract significant assets under management.
Following a challenging 2022 for global markets, the CC Global Balanced Income Fund bounced back with an impressive return of just over 10% in 2023. This year, the fund has already achieved a 7% (annualized 13.3%) return in the first half, sustaining the positive trend from the previous year. Over a five-year rolling period, the fund has consistently performed well, returning over 26% from June 2019 to June 2024, translating to an annualized return of 4.7%.
Jordan Portelli, the investment manager of the fund, highlighted the fund's success and strategic management: "The CC Global Balanced Income fund continues to perform very well from a total return point of view, but most importantly its performance also reflects the prudent management style which also considers mitigating downside risk.”
Jordan Portelli, the investment manager of the fund.“We are proud of what we have achieved over the years in this particular fund, and this is reflected with the exponential growth the fund has experienced in terms of AUM with an impressive growth of 103% in assets under management since January 2022 to date."
Portelli further noted that while expectations for 2024 are positive, specific uncertainties such as deflationary targets and geopolitical tensions remain market concerns. However, the fund's multi-asset strategy provides the flexibility needed to navigate these risks effectively, allowing for agile asset allocation.
The increasing popularity of multi-asset strategies among investors highlights the need for flexibility in the nowadays very dynamic market conditions. Multi-asset strategies focus more on the tactical asset allocation and increased their popularity namely after the global financial crisis.
Factually speaking a multi-asset strategy gives the Manager more flexibility on the weights allocated between asset classes and regions, which is mainly more driven from a macroeconomic point of view. Looking at the major asset classes, bonds and equities, historically, these asset classes had a negative correlation. Thus, this negative correlation offers asset allocators the possibility to increase or reduce exposures which in their view will return positive or negative returns. Indeed, such flexibility will over the long term not only generate relatively better returns but probably also lower volatility.
Recently the market experienced a negative correlation between equities and bonds on the back of a spike in interest rates. As interest rates start to level off, investors’ focus is turning back to growth and this should lead to more normalised correlations between stocks and bonds. Moreover, in the current elevated macro and geopolitical uncertainty, a dynamic approach is more appropriate as this will present opportunities for active multi-asset strategies.
The CC Global Balanced Income Fund's active management style and strong performance position it favourably against similar strategies globally. This bodes well for the remainder of the year, as the fund is well-positioned to capitalise on emerging market opportunities.
Disclaimer: CC Funds SICAV p.l.c. is licensed as a Collective Investment Scheme by the Malta Financial Services Authority under the Investment Services Act and qualifies as a ‘Maltese’ UCITS. Calamatta Cuschieri Investment Management Limited (“CCIM”) is licensed to conduct Investment Services in Malta by the MFSA under the Investment Services Act. Approved for issue by CCIM, Ewropa Business Centre, Triq Dun Karm, Birkirkara BKR 9034.