We have a consistent and risk-aware investment approach that puts an emphasis on limiting downside risk by deep credit research. Capital Group has managed bond portfolios since 1973 and long duration strategies since 1998.
year when we began managing long duration portfolios.
1Assets under management as of June 30, 2020. Fixed income assets managed by Capital Fixed Income Investors. 2As of December 31, 2019.
Deep credit research
Finding return through research.
Research is key to helping to avoid downgrades and finding excess return in LDI. And our risk-adjusted results speak for themselves. Our goal is to help clients match their liabilities, narrow funding gaps, and lower their contributions.
Sources of potential excess returns
We expect issuer and sector selection to be the main drivers of our returns.
Holistic portfolio construction
Constructing a well-established process.
Our investment committee seeks investment managers who have repeatable processes and can clearly demonstrate how they pursue superior results.
We draw upon a well-established portfolio construction process including:
Diverse ideas, high-conviction portfolio construction approach
Multidimensional approach to risk management
Bottom-up credit decision-making is primary source of excess return
Delivering superior results.
Our primary focus is superior investor outcomes through rigorous fundamental research.
Through rigorous fundamental research, we have helped investors pursue superior investment outcomes, including:
Strong long-term investment results1
Top-quartile information ratio2
Extended track record of returns
1Based on Capital Group Long Duration Credit composite versus Bloomberg Barclays Long Credit Index 3-year, 5-year and lifetime returns as of June 30, 2020. Composite inception date is February 1, 2010.
2Based on 3-, 5- and 7-year information ratio as of June 30, 2020 for the Capital Group Long Duration Credit Composite calculated against the Bloomberg Barclays U.S. Long Credit Index with percentile ranks relative to the eVestment Long Credit Universe. Capital Group Long Duration Credit Composite is represented by gross returns. Sources: Bloomberg Investment Services Ltd., eVestment Alliance.
Past results are no guarantee of results in future periods.
Bloomberg Barclays U.S. Long Credit Index is a market-value weighted index that tracks the total return results of publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements, with maturities of 10 years or more. To qualify, bonds must be SEC-registered and must be an investment grade security. This index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, account fees, expenses or U.S. federal income taxes.
Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
Capital Group’s LDI Solutions Team.
Our dedicated LDI Solutions Team has experience in pension plan risk management across assets and liabilities and can help address your plan's unique needs.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants’ plan provider or employer.
This investment strategy and/or related material is designed for use solely by Qualified Purchasers, institutional investors and consultants.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
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