Capital Group Global Corporate Bond Fund (LUX)

We believe deep, fundamental research of every individual security should form the basis for returns and yield – not high yield names that add risks and distort an investment-grade portfolio’s risk profile. To take full advantage of our global research, we take a unique approach whereby research analysts, as sector specialists, invest in their best ideas to build an information advantage in the portfolio.

High quality approach to credit

Avoids scope creep with reliable investment-grade credit exposure

Fundamental research has driven returns

Targets sector and security selection for long-term excess returns

Sector specialists build the portfolio

Portfolio is built directly by investment analysts

High quality approach to credit

The portfolio does not allow the purchase of sub-investment-grade securities to boost yield or short-term returns. With active allocations limited to high-quality issuers, our Global Corporate portfolio provides a clear risk profile – and more stable outcomes – to investors looking for investment grade credit exposure.

Investment guidelines of Capital Group Global Corporate

No active allocation to
sub-investment grade bonds

Investments must at least be rated BBB- and equivalent.

Fallen angels must be sold within three months

Portfolio managers are not forced to sell at the point of downgrade when values are typically at their lowest.

Fallen angels: bonds that were once investment grade but has since fallen to high yield status.

Data as at 31 December 2021. Sources: eVestment, Capital Group, Standard & Poor’s
Universe breakdown is based on latest available data from eVestment.
Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch, as an indication of an issuer’s creditworthiness.
If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the strategy’s investment policies.

Fundamental research has been key driver of returns

Our signature approach is bottom-up investing, based on global, on-the-ground research. Instead of relying on top-down macro calls, for example, we stick to our strengths in fundamental research.

Damir Bettini
Fixed Income Portfolio manager

“We aim to generate the majority of our excess returns from the credit rather than the rates component of returns.

“Typically, in our global corporate funds, we would expect to derive 90% of our excess return from sector and security selection.”

Damir Bettini, Principal Investment Officer of Capital Group Global Corporate.

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Sector specialists build the portfolio

Uniquely at Capital Group, our research analysts invest in their best ideas. They are specialists in their respective industries and have built up a deep understanding of the companies within their coverage. Putting this knowledge to work, the investment analysts invest in their convictions and we believe the portfolio benefits from an information advantage.

16

Investors in the strategy

13

Average years of investment experience

Courtney Wolf
Investment analyst
15 years’ experience

“We don't call ourselves research analysts. We call ourselves investment analysts, because the goal is to come up with the best investment idea we can on a risk adjusted basis.

“Rather than being a good credit rater or figuring out what the best company or issuer looks like, we’re focused on coming up with the best investment idea.”

Team information based on the Global Corporate representative account as at 31 December 2021. Years of experience as at 31 December 2021. Source: Capital Group