A flexible total return approach with disciplined volatility management

1. Established global fixed income capabilities
   Managed by one of the biggest asset managers in the world, the portfolio benefits from Capital Group’s global research resources and fixed income experience. The innovative Global Total Return Bond fund offers a considered, long-term approach to diversified bond investing.
2. Customised volatility framework
   A volatility management framework drives a disciplined approach to scaling positions in the portfolio according to conviction, risk levels and the need to diversify risks. Our independent Risk and Quantitative Solutions team is tasked to provide a real-time view of scenario analysis to ensure the portfolio can be resilient in multiple market environments.
3. Robust and efficient process
   A distinctive investment process, driven by fundamental research, allows the Global Total Return Bond fund to identify only the best, high conviction ideas from its global team, and invest flexibly across the investment universe.

Uncertainty around inflation, interest rates and global growth present challenges to investors. Many find that traditional global fixed income exposure needs to work harder to maximise return, but seeking higher yields can add risk.

• Our total return approach aims to build a flexible and diversified portfolio, designed to provide investors with a consistent total return
• The fund’s customised volatility framework ensures risk is monitored throughout the investment process and facilitates the investment team’s objective of delivering total returns without increasing the volatility budget

We believe core bond allocations should provide dependable balance in an investor’s portfolio.

• The Global Total Return Bond fund is designed to provide core bond characteristics – such as duration and yield levels in line with global bonds – while not being constrained by index composition
• All Capital Group fixed income funds target low correlations to equity and diversification, supported by fundamental analysis of every investment opportunity

The fund’s investment objective is to maximise total return over the long term. It invests worldwide primarily in investment grade bonds and high yield bonds of governmental, supranational and corporate issuers and in other fixed income securities.

• Portfolio construction The fund uses our tried and tested investment process to build a diverse, high conviction portfolio using the best ideas from our global research platform
• Total return approach The investment team start with investment ideas – rather than a reference index – and build the portfolio based on seeking a 3-4% total return on an annualised basis, over a full market cycle
• Credit quality The Global Total Return Bond portfolio consists of primarily investment grade credit – minimum 50% – with a typical allocation to high yield of 20%, adding diversification to mitigate risk when appropriate

For illustrative purposes only. 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.

Capital Group has extensive global fixed income capabilities, and has consistently delivered for clients in this asset class. With over 30 years of global fixed income experience, the Global Total Return Bond fund takes advantage of a tried and tested investment process designed to build successful fixed income portfolios.

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 Total Return Bond managers are rewarded for their results, not the level of assets they manage.