Capital Group has announced the launch of Capital Group UK – Global Corporate Bond Fund (GCB), an Open-Ended Investment Company (OEIC) for UK investors.
The fund will mirror the investment approach and management team of its Luxembourg-domiciled UCITS counterpart, Capital Group Global Corporate Bond Fund (LUX).
The company said the fund will invest primarily in investment-grade bonds globally and be focused on providing a high level of total return over the long term.
The approach is aimed to offer UK investors market diversification and potential long-term stability through high-quality credit exposure.
It will be managed by a lead portfolio manager and a team of 16 sector analysts and driven by fundamental research and high-conviction investments.
Damir Bettini, Global Corporate Bond Fund portfolio manager, said: “In our view, this is one of the most exciting times for fixed income investing in 20 years. Yields appear to be at their peak, signalling the potential for strong returns. Fixed income now looks highly attractive and could provide a good balance of income and capital preservation.”
“Investment-grade corporate bonds are key to a diversified fixed income portfolio and could provide attractive risk-adjusted returns. A global approach offers broader yield, risk, and return sources compared to regional strategies. Allocating to global IG corporate bonds can potentially enhance returns and reduce volatility through diversification.”
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