Fixed Income
Clear risk profile with ‘no artificial additives’
Our investment-grade credit portfolios do not permit active allocations to high-yield bonds as a source for excess returns.
Benefits of a higher-quality approach
A strict adherence to quality means we do not sacrifice safety in pursuit of higher yields. Examining the top 10 peers in the global corporate universe highlights the permissible degree of scope creep into riskier non-investment grade securities.
The investment team does not invest in sub-investment grade bonds
Investments must at least be rated BBB- and equivalent
Any fallen angels must be sold within a specific timeframe
Team is not forced to sell at the point of downgrade when values are typically at their lowest
Damir Bettini
Fixed income portfolio manager
“We aim to generate the majority of our excess returns from the credit rather than the rates component of returns. Typically, we would expect to derive 90% of our excess return from sectir and security selection."
Damir Bettini, Principal Investment Officer of Capital Group Global Corporate.
Fixed Income Perspectives
Quarterly macro and market insights from Capital Group’s fixed income team.
Fresh perspectives from our fixed income team
SOLUTIONS
Balance yields and risks with our high-quality credit portfolios
Global corporate bonds
A high-quality fixed income portfolio designed for long-term stability
Explore our fixed income expertise
Find out how we can help you get more from bonds with our distinctive investment approach
We're here with the support and solutions you need.
Don't hesitate to reach out if you have questions or need assistance.
Jorden Brown
Managing Director
Financial Intermediaries
(Australia & New Zealand)
+61 407 464 003
Jorden.Brown@capitalgroup.com
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 information provided is not intended to be comprehensive or to provide advice.
All data as at 31 December 2023 and attributed to Capital Group, unless otherwise stated. All values in USD.
* Based on the largest 10 actively managed open-end funds by size in the Morningstar "Global Corporate Bond - USD Hedged" universe registered for Global and/or European cross-border sale. Funds must have guidance in official fund documents stating maximum high yield and/or minimum investment grade exposures. This ranking excludes Capital Group Global Corporate Bond Fund (LUX), in which Capital Group Global Corporate Bond Fund Hedged (AU) is invested. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch, as an indication of an issuer’s creditworthiness. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies.
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 guarantee of 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.
- The Prospectus – together with any locally-required offering documentation – sets 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.