Fixed Income | Capital Group

Fixed Income

Fixed Income at Capital Group

In conversation with Mike Gitlin, Head of Fixed Income, Capital Group

What we believe and how we invest

Mike Gitlin sets out the importance of investing in bond funds that don’t engage in scope creep and explains what differentiates Capital Group from industry peers.
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We look to offer ‘bond funds that behave like bond funds’ – we believe fixed income plays four roles in portfolios: diversification from equities, capital preservation, income, and inflation protection.

Some of our other key differentiators include:

  • Analysts managing money
  • The Capital SystemSM
  • Collaboration between fixed income and equity teams
  • Our size and scale

We have detailed risk analysis embedded into our investment process to provide our clients with predictable results in fixed-income portfolios.

We have also been building our fixed-income resources, with two new trading desks, 14 new credit analysts and four new portfolio managers around the world in the past three years.

Additional reading


Fixed income at Capital Group: What we believe and how we invest. 

Q&A with Head of Fixed Income Mike Gitlin

READ

Past results are not a guarantee of future results.


The big issues facing bond investors

How will fixed-income markets fare as major central banks begin to retreat from monetary easing? Should investors cut their exposure to bonds? And are there particular areas where investors should be cautious? Mike shares his outlook on the asset class and outlines some of the risks that fixed-income investors should consider.

Caution on credit risk may be more critical than interest rate risk, given that the global economic recovery is in the later part of its cycle.

Bond investors should consider maintaining a balanced portfolio and potentially have some duration exposure.

Large sums of money chasing illiquid opportunities, particularly in a late-cycle phase, could spell trouble. Bank loans and private debt are cases in point.

Additional reading


The big issues facing bond investors. 

Q&A with Head of Fixed Income Mike Gitlin

READ

The information provided is not intended to be comprehensive or to provide advice.


An overview of our capabilities

Fixed income at Capital

Capital Group has been managing fixed-income strategies since 1973.

Whether an investor is seeking a broad market solution or specific strategies based on specific duration, geographic, or sector parameters, we have the resources to help meet the need.

Our fixed-income strategies benefit from high-conviction portfolios, multidisciplinary research provided by both fixed income and equity analysts, and holistic risk management embedded into the investment process.

$300bn+

in assets under management by Capital Fixed Income Investors

40+

years of managing fixed-income strategies

As at 31 December 2017. All values in USD. Source: Capital Group
The Capital Group companies manage 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 organisation; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.

Expanding global presence

Fixed income is a priority for us at Capital Group. The breadth and depth of our investment professional team has never been stronger. Our newly opened trading desks in Singapore and New York complement our existing desks in London and Los Angeles. And we believe our new comprehensive technology system will allow us to seamlessly scale fixed-income assets in the future.

While we will always continue to evolve, the bulk of investment is now behind us. Our investment team is focused on staying true to our commitment to clients – bond funds that behave like bond funds, no scope creep and a goal of generating predictable outcomes.

4

trading desks – London, New York, LA and Singapore

149

fixed-income investment professionals

26

years’ industry experience on average of fixed-income portfolio managers

18

years’ tenure at Capital Group of fixed-income portfolio managers

Data as at 31 December 2017. Source: Capital Group