U.S. Core Fixed Income | Capital Group

INCOME AND PRESERVATION

U.S. Core Fixed Income

Vehicle: Collective Investment Trust, Separate Account

Overview

Objective: Seeks high total return and capital conservation by investing in U.S. dollar–denominated fixed income securities. 

  • Strategy inception date: 1973
  • Assets in strategy (billions): $96.5
  • Benchmark: Bloomberg Barclays U.S. Aggregate Bond Index
  • Duration range: +/– one year of benchmark duration
  • Maximum below-investment-grade bonds (%): 0
  • Invests in:
    • U.S. government securities
    • Corporate bonds
    • Securitized debt (ABS, CMBS and MBS)
  • Minimum account size (millions):
    • Collective investment trust: $5
    • Separate account: $100

Assets in strategy as of June 30, 2018.

For a DC collective investment trust, plan size of $250 million may be used to satisfy the minimum account size requirement.


Approach
  • 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
  • A dedicated group is responsible for quantitative and qualitative analysis of securitized debt, including mortgage-backed and asset-backed securities
  • 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 are made regarding duration. The team also determines the allocations to government securities, corporate bonds and securitized debt
  • The allocations to the investment-grade sectors are an important source of potential excess return, while duration decisions are designed to have minimal impact on a portfolio’s relative returns
  • The portfolio manager seeks to add value by research-driven security selection
  • 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 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

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.


Portfolio Management Team

 


Returns


Portfolio Composition

Get a breakdown of holdings for this strategy and the benchmark.


 


Resources


Fund Characteristics

Defined Benefit Plans (PDF)

Defined Contribution Plans (PDF)

Endowments/Foundations (PDF)

 


Additional Reports

Annual Report (PDF)

Endowments/Foundations

Tax-Exempt Trusts Annual Report (PDF)

 

 

 

 

 


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 this strategy 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.