Fixed Income at Capital Group | Capital Group

 

Fixed income at Capital Group

Distinct characteristics help us build portfolios that can benefit from multidisciplinary research and high-conviction ideas.

 

Actions speak louder than words

A distinctive investment process

A key difference in our process is that our investment analysts not only provide investment ideas to portfolio managers, but are able to act on the courage of their convictions and invest.

Seeing the bigger picture

Risk management and sustainable investing

We aim to ensure our bond portfolios deliver predictable outcomes. We take a multi-layer approach to managing risks and believe the long-term case for an investment requires ESG analysis.

More than meets the eye

Our scale and structure

With over 170 fixed income professionals in 13 locations around the world, our employee-owned structure ensures our goals align with the interests of our clients.

What we believe and how we invest

Mike Gitlin, Head of Fixed Income at Capital Group, explains what differentiates Capital Group from industry peers.

25 years of investment industry experience
Based in Los Angeles

Actions speak louder than words

A distinctive investment process
Our signature approach is bottom-up investing, based on fundamental, on-the-ground research. But a key difference in our process is that 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.

Thinking like an investor

Clear signalling

Attracting and retaining talent

Seeing the bigger picture

Risk management and sustainable investing
Just as important as generating excess returns is ensuring that we keep risk at a reasonsable level for our investors. A multi-layer approach considers investment, operations and strategy-level risks. The RQS and PIO work together to understand and manage sources of high risk in individual portfolios.
"Risk analysis is a key factor in combining top-down views with our fundamental research-driven focus."

Vantil K. Charles
Portfolio manager and investment analyst

Risk and Quantitive Solutions Group (RQS)

Comprehensive and sophisticated risk management is vital
RQS comprises of risk analysts integrated into the investment process. The team design a customised risk framework to provide risk analytics and scenario analysis for portfolios.

Role of the Principal Investment Officer (PIO)

Ultimate goal is to acheive superior risk-adjusted returns
The PIO has overall responsibility for portfolio structure and construction, while ensuring the risk level aligns with the strategy's objective - using input from our Portfolio Strategy Group and macro analysts.

 

Environmental, Social and Governance (ESG)

We believe the long-term financial performance of a company is significantly impacted by a range of ESG factors.
Fundamental research is critical to gain a full understanding of the risks and opportunities that ESG presents.
We do not separate ESG from the rigorous analysis of financial and business indicators that we conduct for each and every investment.

 

Our investment process integrates ESG in each of the four key phases of our investment process:
Meet
We meet with decision makers who impact the outcome of our investments.
12,000+ face-to-face meetings conducted during 2018.
Analyse
We develop investment convictions through extensive in-house assessment of long-term risks and opportunities. We incorporate internal and external data inputs and forward-looking information.
Distil
We identify the key factors of success behind every investment case, which becomes the foundation for subsequent engagement and ongoing dialogue with management.
Engage
Regular collaboration with our equity analysts gives our fixed income analysts excellent access to company management teams.
We focus on engagement as a path to create a positive impact.

 

More than meets the eye

Our scale and structure

A stable fixed income asset manager

We have managed fixed income assets for more than 45 years and our active fixed income investment process leverages the expertise and diverse perspectives of over 170 fixed income professionals around the world.

1 Mainly comprimises money markets and US municipals
Assets managed by Capital Fixed Income Investors. All values in USD.

Aligned with investor success

As an employee owned, independent organisation, we can base our decisions on a truly long-term perspective that aligns our goals with the interests of our clients. Acheiving superior, long-term returns is our only goal.

 

Fixed income funds in focus

Capital Group Emerging Markets Local Currency Debt Fund (LUX)

Capitalising on the dynamism of local currency emerging market debt

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Capital Group Global Corporate Bond Fund (LUX)

Fundamental security selection in global corporate bonds

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Capital Group Global High Income Opportunities (LUX)

A consistent source of high income in today’s low-yielding world

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Other fixed income strategies


All data as at 31 December 2018 and attributed to Capital Group.
 

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 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.
  • Depending on the strategy, risks may be associated with investing in emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates.
The Capital Group companies manage 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.