The fund aims to complement equity portfolios and provide valuable protection for investors
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Capital Group has announced the Capital Group World Bond Fund, a globally diversified fixed-income portfolio for Canadian investors. Managed by Capital International Asset Management (Canada), the fund strategy aims to prudently invest in bonds and other debt securities of global issuers.
“In this low-interest-rate environment, it's tempting to reach for yield," said Thomas Høgh, portfolio manager and principal investment officer of the mandate. “The risk is that high-yielding bond strategies could be at risk of sharp price declines due to their high correlation to equity markets. … A prudently managed bond portfolio should provide income, capital preservation, inflation protection, and diversification from equities.”
The World Bond Fund is focused on investment-grade bonds from different geographies with varying economic cycles, yields, and currency valuations. It can be invested in any country, currency, credit quality, coupon, or maturity. That includes a mix of government/agency, corporate, and mortgage- and asset-backed bonds.
“Capital Group provides access to global markets with a commitment to low fees,” said Mark Tiffin, president of Capital International Asset Management (Canada). “Deep global research and experience also enable Capital Group to be in front of trends rather than chasing them; that can lead to better outcomes for investors.”
The fund is managed by four portfolio managers with a median 30 years of investment experience: Mark Brett, David Daigle, Thomas Høgh and Rob Neithart. They will each manage a portion of the fund's assets independently.
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“In this low-interest-rate environment, it's tempting to reach for yield," said Thomas Høgh, portfolio manager and principal investment officer of the mandate. “The risk is that high-yielding bond strategies could be at risk of sharp price declines due to their high correlation to equity markets. … A prudently managed bond portfolio should provide income, capital preservation, inflation protection, and diversification from equities.”
The World Bond Fund is focused on investment-grade bonds from different geographies with varying economic cycles, yields, and currency valuations. It can be invested in any country, currency, credit quality, coupon, or maturity. That includes a mix of government/agency, corporate, and mortgage- and asset-backed bonds.
“Capital Group provides access to global markets with a commitment to low fees,” said Mark Tiffin, president of Capital International Asset Management (Canada). “Deep global research and experience also enable Capital Group to be in front of trends rather than chasing them; that can lead to better outcomes for investors.”
The fund is managed by four portfolio managers with a median 30 years of investment experience: Mark Brett, David Daigle, Thomas Høgh and Rob Neithart. They will each manage a portion of the fund's assets independently.
Related stories:
RBC GAM announces new income-oriented ETFs
The investment case for emerging-markets fixed income
