Objective: To provide maximum total return consistent with preservation of capital.
- Strategy inception date: May 31, 1974
- Assets in strategy (billions): $36.7
- Benchmark: Bloomberg Barclays U.S. Aggregate Index
- Duration range: +/– one year of benchmark duration
- Historical maximum exposure to below-investment-grade bonds (%): 20
- Currency (%): USD allocation 80–100
- Invests in (%):
- U.S. core fixed income: 70–100
- Plus sectors
- High yield: 0–10
- Non-USD international: 0–10
- Emerging markets debt: 0–10
- Minimum account size (millions):
- Collective investment trust: $5
- Separate account: $200
- Research is the cornerstone of Capital’s investment process, which integrates macroeconomic, fixed income and equity analysis from all regions of the globe
- Our fixed income analysts typically specialize in one or more industries or sectors and thoroughly examine the individual issues within his or her coverage. A dedicated group is responsible for quantitative and qualitative analysis of securitized debt, including mortgage-backed and asset-backed securities
- Fixed income analysts also work with Capital's equity research team. In addition, a strategic group is dedicated to currencies, asset allocation, quantitative research, politics, and other macro issues.
- Our investment process incorporates top-down and bottom-up considerations. Top-down decisions are made regarding the appropriate duration stance and the allocation to each of the extended sectors: emerging markets debt, U.S. high yield and international bonds. A team also decides the allocations to government securities, corporate bonds and securitized debt. Allocations to the extended and investment-grade sectors are an important source of potential excess return, while duration decisions are designed to have minimal impact on a portfolio’s relative returns
- The portfolio manager seeks to add value by research driven security selection
- The portfolio manager also works closely with Capital's traders, who provide valuable information about market anomalies, inefficiencies and deal flow in addition to executing trades
- We may have substantial investments across sectors and currencies based on our views of the macroeconomic cycle, monetary policy and similar issues
- We have a comprehensive framework for addressing risk
- Our research process and The Capital System℠ help diversify the portfolio
- Capital’s independent global investment control group monitors compliance with portfolio guidelines
- Our legal and compliance team provides guidance on regulations in the markets in which we invest
History of Fixed Income at Capital Group
We began managing fixed income assets for institutional clients in 1973, and Capital Fixed Income Investors had over $442.4 billion in assets under management as of December 31, 2020.
Portfolio Management Team
Get a breakdown of holdings for this strategy and the benchmark.