Capital Group Global High Income Opportunities (LUX) | Capital Group

 

 

Global High Income Opportunities

At Capital Group, we believe bond portfolios should provide reliable outcomes. Capital Group's Global High Income Opportunities strategy addresses the investors’ need for income in a low interest rate environment. The portfolio is designed to provide consistent levels of income and more stable returns through diversification across investments in high-yield bonds and emerging market debt.

 

20 years of consistent high income

The portfolio has delivered a consistently high income yield – 7.7% on average over the past 10 years – as a result of combining diversified income sources. Income is not paid out to investors from capital.

Investing across the full breadth of the higher yielding universe

Combining corporate high-yield bonds and emerging market debt in one portfolio diversifies some of the risks associated with high-yield investing and has historically provided a less volatile pattern of returns.

Driving returns through security selection

The breadth of our analyst team allows for extensive fundamental research and evaluation of securities. Security and country selection has accounted for the majority of returns since the composite’s inception in 1998 through a consistent, bottom-up investment approach.

Past results are not a guarantee of future results. 

Rob Neithart has been investing in Global High Income Opportunities since the composite's inception in 1998. Here he reflects on his experience in different market environments across two decades.

31 years of investment experience and with Capital Group
Based in Los Angeles

 

Access to a diverse and growing opportunity set

A cross-market approach allows our investment team to source assets with the most attractive risk-reward characteristics – across geography, asset class, currency and the capital structure – without straying into less liquid assets.

Why blend?

Blending assets that have different return drivers and credit cycles provides diversification benefits. Disparate returns across the universe can potentially be smoothed out to deliver more stable returns.



Segment sizes are for illustrative purposes only and are not representative of actual portfolio holdings.


Other less significant holdings may include frontier market bonds, European peripherals and local currency exposure.

 

 

Global High Income Opportunities

A flexible approach to the higher yielding bond universe

Available as a separate account and Luxembourg-domiciled fund

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Data as at 31 December 2018 for Capital Group Global High Income Opportunities (LUX), unless otherwise stated. Source: Capital Group
 

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 can go down as well as up and you may lose some or all of your initial investment.
  • 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.
  • Depending on the strategy, risks may be associated with investing in fixed income, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.