Fixed Income
KEY BENEFITS
Highly diversified high income
Capital Group UK – Global High Income Opportunities (GHIO) invests broadly across the higher yielding universe to construct a diverse portfolio built on high-conviction ideas, seeking to deliver a consistent high level of income over the long term.
High, consistent income
Long track record of high income1: 6.9% average income yield over the last 10 years
Total return driven by income
A bottom-up approach to high income generation has driven the strategy's total return
Diversification
Access to attractive opportunities by investing across global higher yielding sectors
Past results are not a guarantee of future results.
Capital Group UK – Global High Income Opportunities has been available to UK investors from 18 January 2023 as an open-ended investment company (OEIC). The Luxembourg SICAV Capital Group Global High Income Opportunities (LUX) (inception: 7 May 1999) is referenced as a representative account for the strategy. This is intended to illustrate our experience and capability in managing this strategy over the long term.
THINGS TO CONSIDER
Pursuing income while being mindful of risks
GHIO’s diversified and flexible approach means the team can employ different and varied return drivers across the higher yielding sectors it invests in.
Additionally, an independent risk team utilises a multi-layer approach that considers investment, operational and strategy-level risks.
Risk considerations
WHY INVEST IN THIS FUND ?
GHIO seeks to deliver diversified income
GHIO's investment team seeks to deliver a consistent high level of income over the long term by investing broadly across the higher yielding universe.
The investment team behind this fund
David Daigle
New York
29 years with Capital
Luis Freitas De Oliveira
Geneva
30 years with Capital
Kirstie Spence
London
28 years with Capital
Shannon Ward
Los Angeles
7 years with Capital
ESG FOCUS
ESG characteristics
ESG is woven into our investment process through three tightly integrated components: investment frameworks, monitoring and engagement. The fund also applies ESG and norms-based screens and has a carbon target.2
For more information on our approach, see ESG at Capital Group.
Screens
The fund excludes issuers within certain sectors, as well as those that violate UN Global Compact principles.
Carbon target
The fund’s carbon footprint is also monitored and managed to be generally at least 30% lower than its reference index.3
Let's kickstart your client conversation
Additional information on how this fund can help meet your clients’ needs
- An income-focused approach
The strategy has a long track record of high income1: 6.9% average over the last 10 years. The portfolio’s income yield is 6.8%.
- A strategy that seeks to provide a total return
May be suited to investors looking for consistent high income or total return. Total returns are driven by a bottom-up approach to high income generation.
- Diversified sources of income
Investing broadly across higher yielding sectors with different return drivers enables a more holistic approach to risk management.
- ESG integration and beyond
Integrates investment-led ESG considerations as well as specific ESG exclusions and an explicit carbon footprint target.2
Capital Group UK – Global High Income Opportunities (incepted 18 January 2023) is available to UK investors as an open-ended investment company (OEIC). The Luxembourg SICAV, Capital Group Global High Income Opportunities (LUX) (inception: 7 May 1999) is referenced as a representative account for the strategy. This is intended to illustrate our experience and capability in managing this strategy over the long term.
Past results are not a guarantee of future results.
Invested capital is at risk; the fund aims to achieve a positive return over the long term although there is no guarantee this will be achieved over that or any time period.
Considering the uncertain and volatile nature of global markets, GHIO offers a broadly diversified exposure to high-yield bonds and emerging markets debt opportunities, with a holistic approach to risk management.
You could benefit from:
- Exposure to structurally better credit quality in the corporate high yield bond market, and attractive opportunities in emerging markets debt.
- A rising portfolio yield, supported by the current inflationary environment, which could offer a return cushion, particularly for new investors.
- A fundamental income focus, which aims to deliver consistent returns despite market volatility.
- The application of ESG criteria to security and country selection, helping promote social and environmental characteristics.
The fund seeks to provide, over the long term (i.e., a period of over 5 years), a total return, which is driven primarily by high income generation. A high level of income is defined as equal to, or in excess of, the average yield4 of the funds in its Investment Association sector, Sterling Strategic Bond, assessed over rolling 3-year periods.
Capital Group has more than 30 years of experience investing in both emerging markets debt and high-yield credit. We launched our first US high-yield strategy in 1984, and started investing in emerging markets debt in 1988.
Our dedicated emerging markets debt and high-yield teams have vast, specialist experience in their specific sectors, and our integrated research process, which brings together both fixed income and equity analysts*, further enhances our understanding of portfolio holdings.
Taking the long view
We base our investment decisions on a long-term perspective, aligning our goals with the interests of your clients. Superior, long-term returns are our goal. Global High Income Opportunities managers are rewarded for their results, not the level of assets they manage.
Breadth of experience
Our process enables individual investment professionals to act on their highest convictions while limiting the risk associated with isolated decision-making. We draw on their diverse experience to build the portfolio.
Deep, fundamental research
Few firms can match the scale and scope of our proprietary research. Investment analysts conduct thousands of research visits globally every year. This research is then combined with comprehensive macro analysis. This approach has been essential to the results we have delivered to our investors.
*Capital Group manages equities through three investment divisions that 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.
Find out more about what this fund has to offer
WHY CAPITAL GROUP
A leader in global investing
For more than 90 years, we’ve been searching the world for long-term opportunities, making Capital one of the oldest global investors. We have also grown to become one of the world’s largest active fixed income fund managers.
Global investing credentials
US$2.5T
in total assets managed
26 years
average investment experience of our fixed income portfolio managers
US$498.0B
Fixed income assets managed*
*Assets under management by Capital Fixed Income Investors.
Data as at 31 December 2023
High conviction investments. Diverse perspectives.
The Capital SystemTM is designed to produce diverse portfolios that deliver consistent long-term results, a smoother ride and management continuity over a range of market conditions.
We believe ESG is key to successful investing. So we consider environmental, social and governance issues before we invest.
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Financial Intermediary Team contact details:
Telephone: 0207 864 5500
[Monday to Friday, 9.00am to 5.00pm]
Email: CapitalGroup_UKSales@capitalgroup.com
Chris Miles
Head of UK
Financial Intermediaries
London & West of England
+44 (0) 20 7864 5339
Chris.Miles@capitalgroup.com
Tri Huynh
Managing Director,
Financial Intermediaries
Strategic Partnerships
+44 (0) 20 7864 5798
Tri.Huynh@capitalgroup.com
Sam Streatfeild
Managing Director
Financial Intermediaries
London, Channel Islands & Family Offices
+44 (0) 20 7864 5529
Sam.Streatfeild@capitalgroup.com
Robert Waterhouse
Managing Director
Financial Intermediaries
London, South of England & Ireland
+44 (0) 20 7864 5726
Rob.Waterhouse@capitalgroup.com
Adam Price
Managing Director
Financial Intermediaries
London, East of England & Scotland
+44 (0) 20 7864 5536
Adam.Price@capitalgroup.com
Shreya Anil
Business Development Associate
Financial Intermediaries
+44 (0) 20 7864 5683
Shreya.Anil@capitalgroup.com
Katherine Willson
Business Development Associate
Financial Intermediaries
+44 (0) 20 7864 5980
Katherine.Willson@capitalgroup.com
Data as at 31 December 2023 and attributed to Capital Group, unless otherwise specified.
- Based on Capital Group High Income Opportunities (LUX) (inception 7 May 1999), a representative account for the strategy. This is intended to illustrate our experience and capability in managing this strategy over the long term. Capital Group UK – Global High Income Opportunities has been available to UK investors from 18 January 2023 as an open-ended investment company (OEIC). Income yield is total income earned by the portfolio, net of withholding taxes and before management fees and expenses, divided by average net assets over the past 12 months. 10-year average annual income yield is to 31 December 2023. Dividend yields distributed by share classes will differ dependent on type and how investors choose to pay management fees and expenses.
- Based on weighted average carbon intensity.
- Carbon footprint target is based on weighted average carbon intensity, for eligible corporate bonds within the reference index (50% Bloomberg US Corporate High Yield 2% Issuer Capped, 20% JPMorgan EMBI Global, 20% JPM GBI-EM Global Diversified and 10% JPM CEMBI Broad Diversified).
- 3.47% as at 31 December 2023. Source: Morningstar.
Important information
This material, issued by Capital International Management Company Sàrl (“CIMC”), 37A avenue J.F. Kennedy, L-1855 Luxembourg, is distributed for information purposes only. CIMC is regulated by the Commission de Surveillance du Secteur Financier (“CSSF” – Financial Regulator of Luxembourg) and manages the fund(s), which is a (are) sub-fund(s) of Capital International Fund (CIF), organised as an investment company with variable capital (SICAV) under the laws of the Grand Duchy of Luxembourg and authorised by the CSSF as a UCITS. All information is as at the date indicated unless otherwise stated and subject to change. Facilities to investors (tasks according to Article 92 of the Directive 2019/1160, points b) to f)) are available at www.eifs.lu/CapitalGroup The list of countries where the Fund is registered for distribution can be obtained at all times from CIMC or online at www.capitalgroup.com/europe
For the OEIC fund: This material is issued by Capital Group UK Management Company Limited ("CGUKMC"), Registered office 1 Paddington Square, London, W2 1GL, authorised and regulated by the Financial Conduct Authority. CGUKMC manages the fund(s), which is a (are) sub-fund(s) of Capital Group Fund (CGF), established as a UK UCITS Scheme and structured as an umbrella company (under the OEIC Regulations). You may be entitled to compensation from the Financial Services Compensation Scheme (the ‘Scheme’). Your entitlement to compensation depends on the type of business and the circumstances of the claim.
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, derivatives, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.
Other important information
The information in relation to the index is provided for context and illustration only. The fund is actively managed. It is not managed in reference to a benchmark. Investors acquire shares of the fund, not the underlying assets. The fund(s) is (are) offered only by Prospectus, together with the UCITS Key Investor Information Document. These documents, together with the latest Annual and Semi-Annual Reports and any documents relevant to local legislation, contain more complete information about the fund(s), including relevant risks, charges and expenses, and should be read carefully before investing. However, these documents and other information relating to the fund(s) will not be distributed to persons in any country where such distribution would be contrary to law or regulation. They can be accessed online at www.capitalgroup.com/europe, where latest daily prices are also available.
The tax treatment depends on individual circumstances and may be subject to change in future. Investors should seek their own tax advice. This information is neither an offer nor a solicitation to buy or sell any securities or to provide any investment service.
A summary of Fund Shareholder Rights is available at www.capitalgroup.com/eacg/entry-page/shared/summary-of-investor-rights.html
CIMC may decide to terminate its arrangements for marketing any or all of the sub-funds of Capital International Fund in any EEA country where such sub-fund(s) is/are registered for sale at any time, in which case it will do so in accordance with the relevant UCITS rules.
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