KEY BENEFITS
Your proven source of consistent high income
The fund invests broadly across the higher-yielding universe to construct a diverse portfolio built to deliver consistent high income for your clients.
Experienced team, established process
Benefit from our experienced team, who take a fundamental, bottom-up approach to security selection, and global resources
Holistic risk management
Broad investable universe captures different return drivers, enabling a more holistic approach to risk management
Designed for sustainable income
Diversified portfolio designed to deliver consistent high income
ESG integration and beyond
Integrates investment-led ESG considerations as well as specific ESG and norms-based screens and a carbon footprint target1
THINGS TO CONSIDER
Pursuing income while being mindful of risks
The fund seeks to mitigate risks in two distinct ways. Firstly, its diversified and flexible approach means the team is able to employ different and varied return drivers across the higher yielding sectors the fund invests in.
Secondly, an independent risk team utilises a multi-layer approach that considers investment, operational and strategy-level risks.
Risk considerations
Why invest in this fund
A proven source of consistent high income over the long term
The Global High Income Opportunities portfolio is built by selecting high-conviction ideas only across the higher yielding fixed income universe – high-yield bonds and emerging markets debt – from a global team with over two decades of investment experience.
The investment team behind the fund
David Daigle
New York
29 years with Capital
Luis Freitas De Oliveira
Geneva
30 years with Capital
Kirstie Spence
London
28 years with Capital
Shannon Ward
Los Angeles
7 years with Capital
Reflects portfolio manager team from 1 November 2023.
Kickstart your client conversation
Additional information on how this fund can help meet your clients’ needs
- 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. - 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. - 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. - 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 screens 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.
Invested capital is at risk; the fund aims to achieve a positive return over the long term although there is no guarantee this will be achieved over that or any time period.
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.
You could 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, and 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 application of ESG criteria to security and country selection, helping 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, which brings together both fixed income and equity analysts, further enhances our understanding of portfolio holdings.
We believe a proactive approach makes us better stewards of our clients’ financial future. We integrate ESG into our investment process with the goal of identifying material issues that matter most to investors.
The incorporation of material ESG risks and opportunities is deeply woven into our fundamental, bottom-up research process.
- The fund applies specific ESG and norms-based screens. It excludes companies within certain sectors as well as UN Global Compact violators.3
- The fund has an explicit carbon footprint target that is at least 30% lower than the reference index.1
Norms-based analysis determines whether an issuer complies with the universal principles in the United Nations Global Compact (UNGC).
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.
Breadth of experience
Our process enables individual investment professionals to act on their highest convictions while limiting the risk associated with isolated decision-making. We draw on their diverse 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.
A proactive approach to ESG
The incorporation of ESG risks and opportunities is deeply woven into our fundamental, bottom-up research process. Our active investment process ensures a focus on the most material issues for each investment.
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.
Find out more about what this fund has to offer
WHY CAPITAL GROUP
A leader in global investing
For more than 90 years, we’ve been searching the world for long-term opportunities, making Capital one of the oldest global investors. We have also grown to become one of the world’s largest active fixed income fund managers.
Global investing credentials
US$2.5T
in total assets managed
26 years
average investment experience of our fixed income portfolio managers
US$498.0B
Fixed income assets managed*
*Assets under management by Capital Fixed Income Investors.
Data as at 31 December 2023
High conviction investments. Diverse perspectives.
The Capital SystemTM is designed to produce highly diverse portfolios that deliver consistent long-term results, a smoother ride and management continuity over a range of market conditions.
We believe that incorporating ESG considerations is key to successful investing. Our robust approach focuses on material ESG risks and opportunities.
Explore insights to help you navigate today's market
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We're here with the support and solutions you need.
Don't hesitate to reach out if you have questions or need assistance.
Feike Goudsmit
Head of Client Group
Nordics, Benelux, France and
Middle East
+31 (0)20 797 7575
Feike.Goudsmit@capitalgroup.com
Jaap Kraan
Relationship Manager
Netherlands and Nordics
+31 (0)20 797 7583
Jaap.Kraan@capitalgroup.com
Thomas van Onna, CFA
Relationship Manager
Netherlands and Nordics
+31 (0)20 797 7579
Thomas.van-Onna@capitalgroup.com
Adinda Brouwer
Business Development Associate
+31 (0)20 797 7581
Adinda.Brouwer@capitalgroup.com
Lediane Toledo
Senior Client Manager
+31 (0)20 797 7582
Lediane.Toledo@capitalgroup.com
Martin Hofman
Managing Director
Marketing Northern Europe
+31 (0)20 797 7578
Martin.Hofman@capitalgroup.com
Elleke Reipen
Marketing Director
+31 (0)20 797 7574
Elleke.Reipen@capgroup.com
Sharina Abdoel
EU Client Group Assistant
+31 (0)20 797 7577
Sharina.Abdoel@capitalgroup.com
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. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
- Some portfolios may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.
- There are additional Bond Connect, Bonds, China IBM, Counterparty, Derivative instruments, Emerging markets, High yield bonds, Liquidity, Operational and Sustainability risks associated with this fund.
Fund risks
Bond Connect risk: Investments in Chinese onshore bonds traded on CIBM via Bond Connect are subject to various risks associated with clearing and settlement, as well as liquidity, regulatory and counterparty risks.
Bonds risk: The value of bonds can change as a result of interest rate changes – typically when interest rates rise, bond values fall. Funds investing in bonds are exposed to credit risk. A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
China IBM risk: The fund may invest on the China Interbank Bond Market. This market can be volatile and subject to liquidity constraints due to low trading volumes. As a result, the price of debt securities traded on this market can fluctuate significantly, spreads may be large, and realisation costs may be significant.
Counterparty risk: Other financial institutions provide services to the fund such as safekeeping of assets, or may serve as a counterparty to financial contracts such as derivatives. There is a risk the counterparty will not meet their obligations.
Derivative instruments risk: Derivatives are financial instruments deriving their value from an underlying asset and may be used to hedge existing exposures or to gain economic exposure. A derivative instrument may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
Emerging markets risk: Investments in emerging markets are generally more sensitive to risk events such as changes in the economic, political, fiscal and legal environment.
High yield bonds risk: Lower rated or unrated debt securities, including high yield bonds, may, as a result, be subject to liquidity, volatility, default and counterparty risk.
Liquidity risk: In stressed market conditions, certain securities held by the fund may not be able to be sold at full value, or at all. This could cause the fund to defer or suspend redemptions of its shares, meaning investors may not have immediate access to their investment.
Operational risk: The risk of potential loss resulting from inadequate or failed internal processes, people and systems or from external events.
Sustainability risk: Environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment of the fund.
As at 30 June 2022, Capital Group Global High Income Opportunities (LUX) has adopted Sustainable Finance Disclosure Regulation (SFDR) article 8 requirements.
Data as at 31 December 2023 and attributed to Capital Group, unless otherwise specified.
- Carbon footprint target is based on weighted average carbon intensity, for eligible corporate bonds within the reference index (50% Bloomberg US Corporate High Yield 2% Issuer Capped, 20% JPMorgan EMBI Global, 20% JPM GBI-EM Global Diversified and 10% JPM CEMBI Broad Diversified).
- Based on attribution data for Capital Group Global High Income Opportunities (LUX) on a before fees and expenses basis in US$ terms. Sources: Capital Group, BISAM Bone
- Companies that have any ties to cluster munitions, landmines, biological/chemical weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, nuclear weapons and/or non-detectable fragments.