A flexible approach to the higher yielding bond universe

1. Diverse portfolio
   The strategy combines two key components – high-yield bonds and emerging markets debt – that offer similar risk-return profiles but follow different credit cycles. Investing broadly across the higher yielding universe can potentially drive consistent return throughout the credit cycle and maximise the investment opportunity set.
2. Proven strategy
   Since the strategy’s inception in 1998, credit decisions have been the dominant contributor to excess returns. The portfolio’s dynamic investment approach, focusing on fundamental, bottom-up analysis, has been instrumental in allowing the investment team to add value through security selection rather than asset allocation, a characteristic the team believes offers greater scope to deliver consistent, attractive returns.
3. Total return from high income
   May be suited to investors looking for consistent high income or total return, as the fund aims to generate 90% of the total return from income.
4. ESG integration and beyond
   We integrate ESG into our investment process with the goal of identifying material issues that matter most to investors. Furthermore, the fund applies specific ESG and norms-based exclusions as well as having an explicit carbon footprint target¹, which helps promote social and environmental characteristics.

Past results are not a guarantee of future results.

Considering the uncertain and volatile nature of today’s markets, the Global High Income Opportunities fund offers a broadly diversified exposure to high-yield bonds and emerging markets debt opportunities, with a holistic approach to risk management.

Benefit from:

• The fund’s broad investment universe across the high-yielding sectors combined with its flexible investment approach, which allows the team to select from the best opportunities across multiple market environments, is designed to provide a more consistent outcome for your clients despite volatile markets.
• A rising portfolio yield, supported by the current inflationary environment, which could offer a return cushion particularly for new investors.
• A fundamental income focus, which aims to deliver consistent returns despite market volatility.
• The inclusion of ESG criteria helps promote social and environmental characteristics.

The fund seeks to provide, over the long term, a high level of total return, of which a large component is current income by investing primarily in emerging market bonds and corporate high yield bonds from around the world, denominated in USD and various national currencies (including emerging markets currencies).

The fund also aims to manage a carbon footprint at least 30% lower than its corporate indices¹, and evaluates and applies ESG and norms-based screening to implement an exclusion policy relating to investments in corporate and sovereign issuers.

We take a fundamental approach, with security and country selection accounting for the majority of returns since inception.²

Capital Group has more than 30 years of experience investing in both emerging markets debt and high yield credit. We launched our first US high-yield strategy in 1984, and started investing in emerging markets debt in 1988.

Our dedicated emerging markets debt and high yield teams have vast, specialist experience in their specific sectors, and our integrated research process that brings together both fixed income and equity analysts further enhances our understanding of portfolio holdings.

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. Global High Income Opportunities managers are rewarded for their results, not the level of assets they manage.