At Capital Group, we believe bond portfolios should provide reliable outcomes. Capital Group’s Global High Income Opportunities (GHIO) strategy is designed to provide consistent levels of income and more stable returns through diversification across investments in high-yield bonds and emerging market debt.
Consistent high income
Income focus drives strategy’s total return
Diversification
Diversified sources of income through investing across higher yielding sectors
Building income bond by bond
Deep fundamental research drives bottom-up convictions, not top-down macro calls
Consistent high income
7.0%
Fund's average income yield1 over the last 10 years
Diversified sources
A cross-market approach allows our investment team to source assets with the most attractive risk-reward characteristics – across geography, asset class, currency and the capital structure – without straying into less liquid assets.
Investing broadly across higher yielding sectors that have different return drivers throughout the credit cycle maximises the investment opportunity set and allows for a more holistic approach to risk management.
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Building income bond by bond
Deep fundamental research drives bottom-up convictions, not top-down macro calls.
Kirstie Spence
Portfolio manager
Kirstie Spence, who is a London-based portfolio manager of Capital Group Global High Income Opportunities, explains the key characteristics of the fund’s investment process.
Fundamental research is the beating heart of the investment process
“Good credit decisions will always be a function of quality research. The strategy is able to rely on two groups of analysts that are separately dedicated to corporate high-yield bonds and emerging market debt.”
Communication between equity and fixed income teams enhances overall understanding of company
“Sharing insights across asset classes is one of our competitive advantages as a company. Such discussions encourage analysts to discuss investment themes and challenge one another’s assumptions.”
This dynamic investment approach, focusing on fundamental, bottom-up analysis, is the cornerstone of the strategy's long-term success. It has been instrumental in allowing us to add value through security selection rather than asset allocation
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
Associate 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.
1. Data is based on a representative account of the Global High Income Opportunities strategy, in US$ terms. 10-year average annual income yield is to 31 December 2022. Dividend yields distributed by share classes will differ dependent on type and how investors choose to pay management fees and expenses. Income yield is total income earned by the fund, net of withholding taxes and before management fees and expenses, divided by average net assets over the past 12 months. Source: Capital Group
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.
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