OPPORTUNITIES
Income in the new investment regime
With the end of the ultra-low policy rate era and bond yields for income generating sectors at attractive levels, investors could once again derive meaningful income from a globally diversified portfolio of bonds.
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Bond yields: Could history be repeating itself?
Past results are not a guarantee of future results.
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Income generation strategies
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THE POWER OF 4
Capital Group Multi-Sector Income Fund (LUX)
A fund that combines the four sectors in a single portfolio offers the potential to benefit from attractive income along with a smoother ride.
The fund is designed to incorporate a wide array of opportunities within the entire income universe, all within a single portfolio. It actively pursues the most promising investment ideas throughout the income spectrum. The investment approach is dynamic, with the resulting portfolio allocation steered towards the sector with the greatest opportunities.
The fund seeks an optimal balance between high-quality and high-yielding assets. High-quality bonds offer stability and resilience, while bonds with higher income potential can enhance cash flows and yield. A well-balanced mix of these assets can deliver a robust level of income while aiming to keep risks in check.
The investment approach occupies the sweet spot between sector-specific and unconstrained ‘go-anywhere’ strategies. It offers the flexibility to seize opportunistic ideas as they arise, while its broad allocation range can mitigate the risk of overconcentration in any single sector.
ESG FOCUS
ESG integration and beyond
ESG is woven into our investment process through three tightly integrated components: investment frameworks, monitoring and engagement. The fund also applies ESG and norms-based screens and has an explicit carbon target.3
For more information on our approach, to ESG please see ESG at Capital Group.
Screens
The fund excludes issuers within certain sectors, those that violate UN Global Compact principles and sovereigns that score below the Capital Group proprietary framework’s ESG threshold.
Carbon target
The fund’s carbon footprint is also monitored and managed to be lower than its reference index (for all eligible corporate bonds in the portfolio).2,3
The fund has adopted Sustainable Finance Disclosure Regulation (SFDR) article 8 requirements. The SFDR classification is related to the EU’s regulation and is not equivalent to approval or recognition as an ESG fund by regulators in Asia Pacific.
EXPERIENCE COUNTS
Managed by an experienced and specialist team
Each of the four sectors is managed by an experienced sector specialist portfolio manager. They are supported by large, dedicated investment analyst teams that help create a portfolio built on deep insights into each of the securities the fund invests in.
Damien J. McCann
Principal Investment Officer
24 years with Capital
24 years of industry experience
Shannon Ward
US High Yield
7 years with Capital
31 years of industry experience
Scott Sykes
US investment-grade corporates
18 years with Capital
23 years of industry experience
Kirstie Spence
Emerging markets debt
28 years with Capital
28 years of industry experience
Xavier Goss
Securitised credit
3 years with Capital
20 years of industry experience
Years of experience as at 31st December 2023.
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. We have also grown to become one of the world’s largest active fixed income fund managers.
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
Capital Group Multi-Sector Income Fund (LUX)
We're here with the support and solutions you need.
Don't hesitate to reach out if you have questions or need assistance.
Toby Chan
Head of Client Group
Hong Kong & Greater China
+852 2842 6418
Toby.Chan@capitalgroup.com
Angela Jin
Head of Financial Intermediaries
Hong Kong
+852 2842 6419
Angela.Jin@capitalgroup.com
Henry Chan
Managing Director
Financial Intermediaries
Hong Kong & Greater China
+852 2842 6451
Henry.Chan@capitalgroup.com
Eugene Wong
Associate Director
Financial Intermediaries
Greater China
+852 2842 6413
Eugene.Wong@capitalgroup.com
Leo Lee
Business Development Associate
Financial Intermediaries
Hong Kong & Greater China
+852 2842 6411
Leo.Lee@capitalgroup.com
WARNING:
Professional investors in Hong Kong should read carefully the Hong Kong Supplement and the accompanying Prospectus and key investor information document(s) (“Hong Kong Private Offering Document”) before making an investment decision. This material and the Hong Kong Private Offering Document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in doubt about the contents of this material and/or the Hong Kong Private Offering Document, you should obtain independent professional advice.
Capital Group Multi-Sector Income Fund (LUX) is a “complex product” for the purposes of the Code of Conduct for Persons Licensed By or Registered with the Securities and Futures Commission. Participating Shares may not be offered or sold in Hong Kong by means of this Placing Memorandum or any other document other than to persons who are “professional investors” as defined in the Hong Kong Securities and Futures Ordinance (“SFO”) and rules made thereunder or in circumstances which do not constitute an offer to the public for the purposes of the SFO or any other applicable legislation in 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 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 any 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.
The information in relation to the index is provided for context and illustration only. The fund is an actively managed UCITS. It is not managed in reference to a benchmark.
All data as at 31 December 2023 and attributed to Capital Group, unless otherwise specified.
- Indices used to represent US high yield corporates: Bloomberg US High Yield Index 2% Issuer Cap; US investment-grade corporates: Bloomberg US Corporate Index; emerging market government bonds: JPMorgan EMBI Global Diversified Index
- Reference index: 45% Bloomberg US High Yield Index 2% Issuer Cap; 30% Bloomberg US Corporate Index; 15% JPMorgan EMBI Global Diversified Index; 8% Bloomberg CMBS Ex AAA Index; 2% Bloomberg ABS Ex AAA Index
- Carbon footprint data is based on weighted average carbon intensity