Risk factors you should consider before investing:
All data as at 31 December 2022 in US$ terms and attributable to Capital Group, unless otherwise stated.
Bond – A debt instrument, essentially a loan, issued by governments (a sovereign bond) or corporates (a corporate bond) and financed by investors. The bond holders receive interest payments, known as a coupon, and the principal of the bond when it is due.
Dividend – A sum of money paid regularly by a company to its shareholders out of its profits (or reserves).
Dividend yield – Dividend yield represents the ratio of dividends paid over the last 12 months to the net asset value as of the last month end. However, an annualised dividend yield is calculated on the basis of the most recent dividend payment when, in the last 12 months,
1. a share class has been launched for the first time; or
2. a share class changed its dividend payment frequency
Downside resilience – An investment position that seeks to reduce the frequency and/or magnitude of capital losses resulting from the decline of a stock or a fall in the overall market.
Equity – Shares of ownership in a company.
Exposure – In investment terms, exposure refers to the amount of capital invested in a particular asset, industry or sector within a portfolio, and is usually expressed as a percentage.
Fixed income securities – A debt instrument issued by a government, corporate or other entity.
Investment-grade bonds – Assets rated BBB- or higher by rating agencies Moody’s, Standard & Poor’s or Fitch.
Treasuries – A marketable government debt security with a fixed interest rate and a maturity between one and 30 years.
Volatility – A statistical measure of the pace, frequency and magnitude of a security’s price movement over a period of time, expressed in standard deviation.