Capital Group Global High Income Opportunities Hedged (AU)

A proven source of consistent high income

At Capital Group, we believe bond portfolios should provide reliable outcomes. Capital Group’s Global High Income Opportunities (GHIO) strategy is designed to provide consistent levels of income and more stable returns through diversification across investments in high-yield bonds and emerging market debt.



Consistent high income

Track record of consistent high income for investors

Diversification

Diversified sources of income through investing across higher yielding sectors

Building income bond by bond

Deep fundamental research drives bottom-up convictions, not top-down macro calls


Consistent high income

7.3%

Fund's average income yield1 over the last 10 years


Diversified sources

 

A cross-market approach allows our investment team to source assets with the most attractive risk-reward characteristics – across geography, asset class, currency and the capital structure – without straying into less liquid assets.

Investing broadly across higher yielding sectors that have different return drivers throughout the credit cycle maximises the investment opportunity set and allows for a more holistic approach to risk management.


Building income bond by bond

Deep fundamental research drives bottom-up convictions, not top-down macro calls.


Robert Neithart
Portfolio manager

Robert Neithart, who has been the portfolio manager on the Capital Group Global High Income Opportunities strategy since 1998, explains the key characteristics of its investment process.


 

Fundamental research is the beating heart of the investment process

 

“Good credit decisions will always be a function of quality research. The fund is able to rely on two groups of analysts that are separately dedicated to corporate high-yield bonds and emerging market debt.”

Communication between equity and fixed income teams enhances overall understanding of company

 

“Sharing insights across asset classes is one of our competitive advantages as a company. Such discussions encourage analysts to discuss investment themes and challenge one another’s assumptions.”

 

“This dynamic investment approach, focusing on fundamental, bottom-up analysis, is the cornerstone of the fund’s long-term success. It has been instrumental in allowing us to add value through security selection rather than asset allocation.”

Read more about Robert’s investment approach to GHIO in this Q&A.


Past results are not a guarantee of future results. For illustrative purposes only. Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. The information provided is not intended to be comprehensive or to provide advice.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.

1. Data is based on Capital Group Global High Income Opportunities (LUX), in which Capital Group Global High Income Opportunities Hedged (AU) is invested. In US$ terms. 10-year average annual income yield is to 31 December 2020. Dividend yields distributed by share classes will differ dependent on type and how investors choose to pay management fees and expenses. Income yield is total income earned by the fund, net of withholding taxes and before management fees and expenses, divided by average net assets over the past 12 months. Source: Capital Group

Risk factors you should consider before investing:

  • This material is not intended to provide investment advice or be considered a personal recommendation.
  • The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
  • Past results are not a guide to future results.
  • If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
  • The Prospectus – together with any locally-required offering documentation – set out risks, which, depending on the fund, may include risks associated with investing in fixed income, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.