Fixed Income
KEY BENEFITS
A flexible total return approach to global fixed income investing
Combining our global fixed income research process with disciplined volatility management, the Global Total Return Bond fund aims to build a high conviction portfolio that maximises total return without outsized risk levels.
Established capability
Capital Group’s global fixed income platform has been delivering outcomes for over 30 years
Distinctive investment process
A tried and tested approach with over US$28bn in global fixed income strategies
Proven success
90% of our fixed income LUX funds scored above Morningstar’s peer median over 5 years1
THINGS TO CONSIDER
A disciplined approach to risk
The fund seeks to mitigate risks in two distinct ways. The first focuses on a volatility management framework that helps portfolio managers scale positions according to the conviction and level of risk.
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
Seeking to capture the best ideas for global fixed income success
The fund is managed by an experienced global team, who construct a high conviction portfolio with rigorous volatility analysis. The aim? To deliver long-term total returns within a defined level of volatility.
The experience to deliver
The investment team behind this fund
Andrew A. Cormack
London
5 years with Capital
Philip Chitty
London
19 years with Capital
Thomas Høgh
London
33 years with Capital
Shannon Ward
Los Angeles
6 years with Capital
Let's kickstart your client conversation
Additional information on how this fund can help meet your clients’ needs
- 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. - 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. - 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.
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 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.
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 today.
Global investing credentials
US$2.2trn
in total assets managed
26 years
average experience of our fixed income portfolio managers
US$452bn
Fixed income assets managed*
*Assets under management by Capital Fixed Income Investors.
Data as at 31 December 2022 and attributed to Capital Group, unless otherwise specified.
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 ESG is key to successful investing. So we consider environmental, social and governance issues before we invest.
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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
Data as at 31 December 2022, in USD terms, and attributed to Capital Group, unless otherwise specified.
1. Data as of 31 December 2022. Figures based on results of Z share class. Peer group is defined as the Morningstar category for each fund. Total return statistic is the percentage of Capital Group strategies in which the average annual total return exceeded the peer group median. Morningstar risk-adjusted return is calculated by Morningstar. There were 10 Capital Group strategies in the five-year period. The impact of fees on returns may vary depending on the investor, share class and any arrangements with distributors or intermediaries. Source: Morningstar
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.