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
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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.”
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
“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
Capital Group Global Corporate
Fundamental security selection in global corporate bonds.
We're here with the support and solutions you need.
Don't hesitate to reach out if you have questions or need assistance.
John Griffiths
Head of UK Client Group
+44 (0)20 7864 5580
John.Griffiths@capitalgroup.com
Shannon Gaughan
Director
UK & Ireland Institutional
+44 (0)20 7864 5687
Shannon.Gaughan@capitalgroup.com
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.
- Depending on the strategy, risks may be associated with investing in fixed income, derivatives, emerging markets and/or high-yield securities; emerging markets are volatile and may suffer from liquidity problems.
Statements attributed to an individual represent the opinions of that individual as of the date published and may not necessarily reflect the view of Capital Group or its affiliates. This communication is intended for the internal and confidential use of the recipient and not for onward transmission to any other third party. This communication is of a general nature, and not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities. All information is as at the date indicated and attributed to Capital Group unless otherwise stated. While Capital Group uses reasonable efforts to obtain information from third-party sources that it believes to be accurate, this cannot be guaranteed.