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Capital Group Global Total Return Bond Fund (AU) 

Maximising total return with disciplined volatility management

A proven capability

Global Total Return Bond is a new fixed income offering from Capital Group built on our global investment platform which has been delivering consistent outcomes for clients for over 30 years.



Capital Group’s fixed income capabilities

Past results are not a guarantee of future results. 

A flexible strategy designed to maximise total return over the long term

Utilising the best of Capital Group’s global research resources, the portfolio invests worldwide primarily in investment grade bonds, but also high yield and diversifiers including mortgage- and asset-backed securities and derivative instruments. 

The investment team manage the strategy within a volatility budget that is in line with global bonds.3 

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Transcript

What is total return investing?

Starting with investment ideas – rather than benchmark composition – means we can build a higher conviction fixed income portfolio that makes efficient use of the volatility budget.

In essence, we can be more intentional around what drives returns.

Discover the key differences

A closer look at the outcome

A diversified, high conviction portfolio is the result of a multiple-manager investment team selecting the best ideas from the global fixed income opportunity set.

The team works closely with the Risk and Quantitative Solutions Group (RQS) to scenario test the proposed portfolio and select diversifying strategies to add or reduce expected portfolio volatility.  

For illustrative purposes only.


Capital Group Global Total Return Bond may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management. PM: Portfolio Manager. RQS: Risk and Quantitative Solutions Group.

Capital Group Global Total Return Bond Fund (AU)

 

The backdrop of global economic uncertainty means that interest rates are set to remain lower and investors may be tempted to look towards higher-yielding solutions.  However, allocations need to account for market conditions and keep risks in check. 

This outlook means it’s the right time to consider a globally diversified, total return approach benefiting from a portfolio of only high conviction ideas within a disciplined volatility framework.

Built on an established global fixed income capability 

Experienced and stable global fixed income team

Tried and tested investment process designed to capture best ideas

Rigorour risk analysis framework to manage volatility

Explore how actions speak louder than words in our bond portfolios 

Discover how our investment analysts not only provide investment ideas to portfolio managers, but are also able to act on the courage of their convictions and invest.

learn more

Timely thought leadership to guide your perspective.

U.S. Corporate defaults have tripled: What you need to know

Is the dollar’s stumble a sign of things to come?

Fixed Income Perspectives: Quarterly macro and market insights

 

The information in relation to the index is provided for context and illustration only. 

Past results are not a guarantee of future results. Invested capital is at risk; these funds aim to achieve a positive return over the long term although there is no guarantee this will be achieved over that or any time period. For illustrative purposes only.

1. Fixed income assets as at 30 September 2020. Source: Capital Group

2. Peer group is defined as the Morningstar category for each fund. Total return statistic is the percentage of Capital Group strategies in which the average annual total return exceeded the peer group median based on results in US$ terms net of management fees and expenses for the Z share class as a representative share class. There were 9 Capital Group strategies in the five-year period. In the case of investors investing with the help of a distributor or intermediary, Class Z shares would only apply to distributors and intermediaries who are directly compensated by investors through separate fee arrangements. As at 30 September 2020. Source: Morningstar

3. Using the approximate long-term average volatility of the Bloomberg Barclays Global Aggregate Bond Unhedged Index.

Risk factors you should consider before investing:

  • The value of shares and income from them can go down as well as up, and you may lose some or all of your initial investment.
  • If past results are shown, such figures are not predictive of future results.
  • Risk factors that may influence the value of an investment in the Funds include, but are not limited to,
    1. increased risks of emerging markets,
    2. risk of decline in the price of equities and bonds in response to certain events directly affecting the companies whose securities are owned by the Fund as well as general economic conditions; overall market changes; political, social or economic instability; and currency fluctuations,
    3. interest rate risk as the market value of bonds generally vary inversely with the level of interest rates,
    4. credit risk as the creditworthiness of the Fund’s investment can impact the investment’s ability to meet its obligations, and
    5. derivatives risks.