A clear view of risks with the Global Corporate Bond fund
The fund mitigates risks in two distinct ways. Firstly, its focus on investment grade issues limits its exposure to companies that are of stronger financial standing, and thus at lower risk of defaults.
Secondly, an independent risk team utilises a multi-layer approach that considers investment, operational and strategy-level risks.
Research analysts are allocated part of the fund assets to manage
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Additional information on how this fund can help meet your clients’ needs
Aimed at mitigating risk with a long-term vision
The Global Corporate Bond offers a high-quality approach to investment. By excluding sub-investment grade securities, this fund remains committed to long-term growth by minimising its exposure to credit risks.
Portfolio directly crafted by a global team of sector specialists
Operating a direct pipeline from idea to investment, the Global Corporate Bond fund enables a dedicated team of global investment analysts to drive research-led returns with conviction and efficiency.
Fundamental security selection
With the fund’s focus on fundamental research and the ability of its investment analysts to express their convictions directly into its portfolio, the majority of the fund’s excess returns is expected to be driven through security and industry selection
Recent global events have set the stage for uncertain economic times.
Offering the potential for stability and resilience
Periods of uncertainty highlight the importance of having a fixed income allocation in a portfolio. Our Global Corporate Bond fund is especially suited; its portfolio is dedicated to investment-grade issues and does not actively allocate to high yield credit, resulting in greater stability and resilience from its lower credit risk
Volatility can exacerbate risk
With today’s market volatility, scope creep (an intentional allocation to riskier, high yield issues) should be avoided more than ever, as any risks can be amplified. We believe bond funds should behave like bond funds
An information advantage
With the macroeconomic environment shifting rapidly, this is a good time for active management. This is especially true for the Global Corporate Bond fund, where a team of sector specialists build the portfolio alongside the Principal Investment Officer. With a deep understanding of the individual industries and sectors, our analysts can react quickly when the market environment changes
The fund’s investment objective is to provide your clients, over the long term, with a high level of total return consistent with capital preservation and prudent risk management by investing in corporate investment grade bonds worldwide.
High quality returns: This fund consists of exclusively investment-grade credit, selected by a global team of sector specialists, in contrast to its peers which may be actively allocating to high yield securities. The goal? To provide more stable outcomes for your clients’ investment grade credit exposure
Long-term vision: Excluding riskier high yield bonds to avoid uncertain short-term wins enables the Global Corporate Bond fund to stick to its longer-term vision, and provides a clear risk profile when incorporated as part of your client’s investment portfolio
Fundamental research drives security selection within the Global Corporate Bond fund portfolio. Integration with equity research allows our fixed income analysts to build truly differentiated insights, and 90% of expected excess returns are driven through security and industry selection. The fund’s consistent track record evidences Capital Group’s success when investing in this corporate bond asset class.
Adopting a truly long-term investment strategy is a crucial part of the Global Corporate Bond approach.
Past results are not a guarantee of future results.
Taking the long view
We base our investment decisions on a long-term perspective, aligning our goals with the interests of your clients. Superior, long-term returns are our goal. The Global Corporate Bond investment team is rewarded for their results, not the level of assets they manage.
Breadth of experience
Our process enables individual investment professionals to act on their highest convictions while limiting the riskassociated with isolated decision-making. We draw on their diverse expertise and experience to build the portfolio.
Deep, fundamental research
Few firms can match the scale and scope of our proprietary research . Investment analysts conduct thousands of research visits globally every year. This research is then combined with comprehensive macro analysis. This approach has been essential to the results we have delivered to our investors.
Capital Group manages equity assets through three investment groups. These groups 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.
Data as at 31 December 2021 and attributed to Capital Group, unless otherwise specified.
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 guide to 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. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
The Prospectus – together with any locally-required offering documentation – set 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.
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