We believe deep, fundamental research of every individual security should form the basis for returns and yield – not high yield names that add risks and distort an investment-grade portfolio’s risk profile. To take full advantage of our global research, we take a unique approach whereby research analysts, as sector specialists, invest in their best ideas to build an information advantage in the portfolio.
Avoids scope creep with reliable investment-grade credit exposure
Targets sector and security selection for long-term excess returns
Portfolio is built directly by investment analysts
Investments must at least be rated BBB- and equivalent.
Portfolio managers are not forced to sell at the point of downgrade when values are typically at their lowest.
Fallen angels: bonds that were once investment grade but has since fallen to high yield status.
Data as at 31 December 2021. Sources: eVestment, Capital Group, Standard & Poor’s
Universe breakdown is based on latest available data from eVestment.
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 strategy’s investment policies.
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, in our global corporate funds, we would expect to derive 90% of our excess return from sector and security selection.”
Investors in the strategy
Average years of investment experience
15 years’ experience
“We don't call ourselves research analysts. We call ourselves investment analysts, because the goal is to come up with the best investment idea we can on a risk adjusted basis.
“Rather than being a good credit rater or figuring out what the best company or issuer looks like, we’re focused on coming up with the best investment idea.”
Team information based on the Global Corporate representative account as at 31 December 2021. Years of experience as at 31 December 2021. Source: Capital Group
Fundamental security selection in global corporate bonds.
Risk factors you should consider before investing:
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.