Approach

• Research is the cornerstone of Capital’s investment process, which integrates macroeconomic, fixed income and equity analysis from all regions of the globe
• Our fixed income analysts leverage our integrated approach, typically specializing in one or more industries and/or sectors, and drawing on the work of their counterparts in our equity research group
• Emerging markets analysts further cover a geographical region to better understand the investability of their universe and potential contagion correlation effects. Other fixed income analysts focus on quantitative and qualitative research on securitized debt. In addition, a strategic group is dedicated to currencies, asset allocation, quantitative research, politics and other macro issues
• The Global High-Income Opportunities team consists of two portfolio managers, each of whom manages a portion of the total portfolio, ensuring that the portfolio has diverse sources of return
• The portfolio managers seek to add value through research-driven country, currency, sector and security selection, which may include substantial investments in individual bond markets and currencies based on our views of the macroeconomic cycle, monetary policy and similar issues
• The portfolio managers also work closely with Capital’s traders, who provide invaluable information about anomalies, inefficiencies and deal flow in the market in addition to executing trades
• We have a comprehensive framework for addressing risk
  • Our research process and The Capital System℠ help diversify the portfolio
  • Capital’s independent global investment control group monitors compliance with portfolio guidelines
  • Our legal and compliance team provides guidance on the 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 had $365.5 billion in assets under management as of March 31, 2020.

We began managing a global high-yield strategy in 1998, after nearly a decade of experience managing both emerging markets debt and high-yield debt separately. We began investing in emerging markets debt in 1991, created an emerging markets debt fund in 1994, and most recently (2007) began managing emerging markets debt “linkers” strategies for institutional clients. We were one of the first to begin managing emerging markets equities in 1986 and launched our first private equity fund for emerging markets investments in 1992. Capital began managing high-yield bonds in 1984.
 

Portfolio Management Team

Fund Characteristics

Defined Benefit Plans (PDF)

Defined Contribution Plans (PDF)

Endowments/Foundations (PDF)

Additional Reports

Annual Report (PDF)

Profile

Global High-Income Opportunities Profile (PDF)