2. The Fund may invest in emerging market securities and may be subject to additional risks arising from factors such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
3. If the Fund invests in debt securities which are below investment grade or unrated, including high yield bonds, it may, as a result, be subject to liquidity, volatility, default and counterparty risk.
4. While the Fund uses derivative instruments in a prudent manner and only for hedging and/or efficient portfolio management purposes, in an adverse situation, derivative instruments may expose the Fund to a risk of significant loss.
5. The Fund may at its discretion pay dividends out of and/or effectively out of capital. This amounts to a return of part of an investor’s original investment or distribution of capital gains. This may result in an immediate reduction in the net asset value per share.
6. The currency hedging process used for currency hedged share classes may not give a precise hedge; there is no guarantee that hedging will be totally successful.
7. Investors should not make any investment decision solely based on this document.
KEY BENEFITS
A research-driven fund designed for long-term growth
Leveraging on-the-ground knowledge of sector specialists and its high-quality portfolio, the Global Corporate Bond fund aims to provide you with resilient, long-term results.
High-quality investments only
Portfolio does not permit an active allocation to high-yield bonds as a source for potential excess returns
Clear risk profile with no additives
Aiming to create a stable building block for your portfolio
Direct ideas from sector specialists
This distinctive, analyst-led investment process seeks to improve investment outcomes
WHY INVEST IN THIS FUND
In this video, Manusha Samaraweera, our Fixed Income Investment Director, discusses how Capital Group Global Corporate Bond Fund (LUX) could offer an attractive stepping-stone for you to supplement income should interest rates begin to fall.
Find out more about what this fund has to offer
WHY CAPITAL GROUP
A leader in global investing
For more than 90 years, we’ve been searching the world for long-term opportunities, making Capital one of the oldest global investors today.
Global investing credentials
US$2.5T
in total assets managed
26 years
average investment experience of our fixed income portfolio managers
US$498.0B
Fixed income assets managed*
*Assets under management by Capital Fixed Income Investors.
Data as at 31 December 2023
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This material has not been reviewed by the Securities and Futures Commission of Hong Kong.
Risk factors you should consider before investing:
- This material is not intended to provide investment advice or be considered a personal recommendation.
- The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
- Past results are not a guarantee of future results.
- If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
- Some portfolios may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.
- The Prospectus - together with locally required offering documentation - sets out risks which, depending on the fund, may include risks associated with investing in fixed income, derivatives, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.
All data as at 31 December 2023 in US$ terms and attributable to Capital Group, unless otherwise stated.
Glossary
Bond – A debt instrument, essentially a loan, issued by governments (a sovereign bond) or corporates (a corporate bond) and financed by investors. The bond holders receive interest payments, known as a coupon, and the principal of the bond when it is due.
Excess return – Returns achieved above and beyond returns of a proxy, such as an index.
High-yield bond – A high yield bond is one with a lower credit rating than an investment grade bond. High yield bonds typically offer a higher rate of interest because of a greater risk of default.
Investment-grade bond – A bond issued by a corporation or sovereign that has been awarded a ‘Baa3’ or higher credit rating by Moody’s, or ‘BBB-’ or higher credit rating by Standard & Poor’s or Fitch.