OPPORTUNITIES
Income in the new investment regime
With the end of the ultra-low policy rate era and bond yields for income generating sectors at attractive levels, investors could once again derive meaningful income from a globally diversified portfolio of bonds.
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Bond yields: Could history be repeating itself?
Past results are not a guarantee of future results.
As at 31 December 2024. Source: Bloomberg. US 10 year: US Government 10-year index
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Income generation strategies
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THE POWER OF 4
Capital Group Multi-Sector Income Fund (LUX)
The Multi-Sector Income Fund combines the power of four key fixed income credit sectors, each of which has distinctive income characteristics. We believe that diversifying across multiple income-generating sectors and dynamically adjusting allocations to maintain a balanced risk profile could deliver a reliable income stream.
Hear from Damien McCann, Principal Investment Officer of the Multi-Sector Income Fund, on how the fund’s key characteristics of diversification, balanced, and flexibility can help deliver reliable and attractive income to investors.
The fund is designed to incorporate a wide array of opportunities within the entire income universe, all within a single portfolio. It actively pursues the most promising investment ideas throughout the income spectrum. The investment approach is dynamic, with the resulting portfolio allocation steered towards the sector with the greatest opportunities.
The fund seeks an optimal balance between high-quality and high-yielding assets. High-quality bonds offer stability and resilience, while bonds with higher income potential can enhance cash flows and yield. A well-balanced mix of these assets can deliver a robust level of income while aiming to keep risks in check.
The investment approach occupies the sweet spot between sector-specific and unconstrained ‘go-anywhere’ strategies. It offers the flexibility to seize opportunistic ideas as they arise, while its broad allocation range can mitigate the risk of overconcentration in any single sector.
ESG FOCUS
ESG integration and beyond
ESG is woven into our investment process through three tightly integrated components: investment frameworks, monitoring and engagement. The fund also applies ESG and norms-based screens and has an explicit carbon target.²
For more information on our approach, to ESG please see ESG at Capital Group.
Screens
The fund excludes issuers within certain sectors, those that violate UN Global Compact principles and sovereigns that score below the Capital Group proprietary framework’s ESG threshold.
Carbon target
The fund’s carbon footprint is also monitored and managed to be lower than its reference index (for all eligible corporate bonds in the portfolio).1,2
The fund has adopted Sustainable Finance Disclosure Regulation (SFDR) article 8 requirements. The SFDR classification is related to the EU’s regulation and is not equivalent to approval or recognition as an ESG fund by regulators in Asia Pacific.
EXPERIENCE COUNTS
Managed by an experienced and specialist team
The portfolio is managed by a Principal Investment Officer and a team of seasoned sector specialist portfolio managers. They are supported by large, dedicated investment analyst teams that help create a portfolio built on deep insights into each of the securities the fund invests in.
Damien J. McCann
Principal Investment Officer
25 years with Capital
25 years of industry experience
Shannon Ward
US high yield
8 years with Capital
32 years of industry experience
Sandro Lazzarini
US high yield
9 years with Capital
17 years of industry experience
Scott Sykes
US investment-grade corporates
19 years with Capital
24 years of industry experience
Robert Burgess
Emerging markets debt
9 years with Capital
33 years of industry experience
Xavier Goss
Securitised credit
4 years with Capital
21 years of industry experience
Years of experience as at 31 December 2024.
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$2.8T
in total assets managed
25 years
average investment experience of our fixed income portfolio managers
US$550.3B
Fixed income assets managed*
*Assets under management by Capital Fixed Income Investors.
Data as at 31 December 2024
Capital Group Multi-Sector Income Fund (LUX)
We're here with the support and solutions you need.
Don't hesitate to reach out if you have questions or need assistance.
Toby Chan
Head of Client Group
Hong Kong & Greater China
+852 2842 6418
Toby.Chan@capitalgroup.com
Henry Chan
Managing Director
Financial Intermediaries
Hong Kong & Greater China
+852 2842 6451
Henry.Chan@capitalgroup.com
William Yu
Director
Financial Intermediaries
Greater China
+852 2842 6413
William.Yu@capitalgroup.com
Leo Lee
Associate Director
Financial Intermediaries
Greater China
+852 2842 6411
Leo.Lee@capitalgroup.com
The information in relation to the index is provided for context and illustration only. The fund is actively managed. It is not managed in reference to a benchmark.
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.
- The Prospectus - together with locally required offering documentation - sets 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.
All data as at 31 December 2024 and attributed to Capital Group, unless otherwise specified.
- Reference index: 45% Bloomberg US High Yield Index 2% Issuer Cap; 30% Bloomberg US Corporate Index; 15% JPMorgan EMBI Global Diversified Index; 8% Bloomberg CMBS Ex AAA Index; 2% Bloomberg ABS Ex AAA Index
- Carbon footprint data is based on weighted average carbon intensity