Emerging Markets Corporate Debt (Investment Grade) | Capital Group

TOTAL RETURN FIXED INCOME

Emerging Markets Corporate Debt (Investment Grade)

Vehicle: Separate Account

Overview

Objective: Seeks high total return, with a large current income component, by investing in fixed income securities in developing countries.

  • Strategy inception date: 2012
  • Assets in strategy (millions): $234.6
  • Benchmark: J.P. Morgan CEMBI Broad Diversified Investment Grade
  • Currency (%):
    • USD allocation: 100
  • Minimum account size (millions):
    • Separate account: $100
  • Invests in:
    • Emerging markets debt
      • Corporate
      • Quasi-sovereign


Assets in strategy as of June 30, 2018.


Approach
  • Research is the cornerstone of our investment process, which integrates macroeconomic, fixed income and equity analysis from all regions of the globe
  • An emerging markets debt analyst at Capital typically focuses on countries in a geographic area — for example, Latin America, Eastern Europe or Africa — to enhance their assessment of relative value and the characteristics of each market
  • The fixed income analysts also work with Capital’s equity research team. In addition, a strategic group is dedicated to currencies, asset allocation, quantitative research, politics and other macro issues
  • The Emerging Markets Corporate Debt strategy is guided by one portfolio manager
  • The portfolio manager looks for value in securities that feature solid or improving credit quality not yet recognized by the market and for which significant risk premiums are being paid by the issuer
  • The portfolio manager also works closely with Capital’s traders, who provide valuable information about market anomalies, inefficiencies and deal flow in addition to executing trades
  • We have a comprehensive framework for addressing risk
    • Our research process and The Capital SystemSM help diversify the portfolio
    • Capital’s independent global investment control group monitors compliance with portfolio guidelines
    • Our legal and compliance team helps make certain we adhere to regulations in the markets in which we invest

History of Fixed Income at Capital Group

We began managing fixed income assets for institutional clients in 1973, and Capital Fixed Income Investors has $321.4 billion in assets under management as of June 30, 2018. Capital has more than 20 years’ experience investing in emerging markets. We began investing in emerging markets debt in 1991, had our first dedicated emerging markets debt account in 1994, and established a global high-yield strategy that combined emerging markets and U.S. high-yield debt in 1998.

 


Portfolio Management Team

 


 


 


Resources

 

 


The Capital Group companies manage 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 organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.


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 fund prospectuses and summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing.