Maximising total return with disciplined volatility management
A proven capability
Global Total Return Bond is a new fixed income offering from Capital Group built on our global investment platform which has been delivering consistent outcomes for clients for over 30 years.
Capital Group’s fixed income capabilities
Past results are not a guarantee of future results.
A flexible strategy designed to maximise total return over the long term
Utilising the best of Capital Group’s global research resources, the portfolio invests worldwide primarily in investment grade bonds, but also high yield and diversifiers including mortgage- and asset-backed securities and derivative instruments.
The investment team manage the strategy within a volatility budget that is in line with global bonds.3
Starting with investment ideas – rather than benchmark composition – means we can build a higher conviction fixed income portfolio that makes efficient use of the volatility budget.
In essence, we can be more intentional around what drives returns.
Discover the key differences
A closer look at the outcome
A diversified, high conviction portfolio is the result of a multiple-manager investment team selecting the best ideas from the global fixed income opportunity set.
The team works closely with the Risk and Quantitative Solutions Group (RQS) to scenario test the proposed portfolio and select diversifying strategies to add or reduce expected portfolio volatility.
For illustrative purposes only.
Capital Group Global Total Return Bond may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management. PM: Portfolio Manager. RQS: Risk and Quantitative Solutions Group.
Capital Group Global Total Return Bond strategy
The backdrop of global economic uncertainty means that interest rates are set to remain lower and investors may be tempted to look towards higher-yielding solutions. However, allocations need to account for market conditions and keep risks in check.
This outlook means it’s the right time to consider a globally diversified, total return approach benefiting from a portfolio of only high conviction ideas within a disciplined volatility framework.
Built on an established global fixed income capability
Experienced and stable global fixed income team
Tried and tested investment process designed to capture best ideas
Rigorour risk analysis framework to manage volatility
The information in relation to the index is provided for context and illustration only.
Past results are not a guarantee of future results. Invested capital is at risk; these funds aim to achieve a positive return over the long term although there is no guarantee this will be achieved over that or any time period. For illustrative purposes only.
1. Fixed income assets as at 30 September 2020. Source: Capital Group
2. Peer group is defined as the eVestment category for each strategy as at 30 June 2020. Figures based on results in US$ terms gross of management fees and expenses and reflect Capital Group fixed income strategies in eVestment available to investors in Europe & Asia. Return statistic is the percentage of Capital Group strategies in which the total return for the period exceeded the peer group median. There were 13 Capital Group fixed income strategies in the three-year period. Source: eVestment
3. Using the approximate long-term average volatility of the Bloomberg Barclays Global Aggregate Bond Unhedged Index.
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.
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.
Depending on the strategy, risks may be associated with investing in emerging markets, derivatives and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.
The strategy may also invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.
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