Objective: Seeks long-term growth of capital and income by investing in global fixed income securities.
Strategy inception date: 1987
Assets in stratregy (billions): $24.3
Benchmark: Global Plus Fixed Income Index
Duration range: +/- 1.25 years of benchmark duration
Assets in strategy as of March 31, 2020.
Research is the cornerstone of our investment process, which integrates macroeconomic, fixed income and equity analysis from all regions of the globe
Each credit analyst specializes in one or more industries or sectors and thoroughly examines the individual issues within his or her coverage, seeking out hidden risks and benefits
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
Our investment process incorporates top-down and bottom-up considerations. Top-down decisions made regarding duration in the major bond markets and the size of the allocation to global high yield. All other decisions — such as country, currency, yield curve positioning and security selection — are made by the individual portfolio managers for the segments they manage
In global plus accounts, the allocation to global high yield — which invests in high yield developed-market corporate bonds and emerging markets debt — is an important source of potential excess return, while duration decisions are intended to have a minimal impact on relative results
The investment team consists of three portfolio managers, each of whom is responsible for a portion of the portfolio and manages it as if it were a stand-alone entity, which ensures the portfolio has diverse sources of return
Portfolio managers look for value across a broad universe of marketable securities, including those issued by sovereign governments and their agencies, corporate bonds, and mortgage-backed and asset-backed securities throughout the worldwide investment-grade market
The portfolio’s currency exposure is actively managed. Duration positions relative to the benchmark are modest, while relative yield curve positions may be significant
Portfolio managers also work 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 System℠ 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
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 fi ed 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.
Any collective investment trusts (“CITs”) available under the strategy shown are maintained by Capital Bank and Trust Company (“trustee”), which has retained an affiliate to serve as investment adviser to the trustee for the CITs.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund prospectuses/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.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.