Asset manager Capital Group has launched Capital Group Multi-Sector Income Fund (AU) (“MSI”) to the Australian market.
MSI combines four key fixed income sectors with distinctive income characteristics – investment-grade corporate bonds, high-yield corporate bonds, emerging market bonds and securitised credit1 – in a single portfolio, offering the potential for an attractive but reliable income. Other potential benefits of the fund include diversification with four income drivers, flexibility to tilt exposure in changing markets and a balanced risk profile. The fund is designed to provide a high level of current income and capital appreciation.
This fund is based on, and managed by, the same investment team as the Multi-Sector Fixed Income strategy from the US, which was seeded in 2019. The strategy has made a strong start and delivered a reliable yield.2
Consistent with Capital Group’s investment approach, the strategy is managed by multiple portfolio managers, rather than a single manager.
Capital Group Managing Director Financial Intermediaries (Australia & New Zealand), Jorden Brown said: “We are pleased to be introducing the Capital Group MSI Fund to Australian investors as the investment case for an exposure to fixed income assets continues to strengthen, particularly for long-term focused investors, and as Capital Group celebrates 50 years of fixed income investing.
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“Against a backdrop of economic uncertainty, the ability to find reliable sources of income has become increasingly important. Capital Group’s MSI strategy was originally created to help address this need in a meaningful and consistent way. We believe our new multi-sector income fund, offering a mix of high quality and higher yielding assets, is particularly compelling in the current market environment.
“We look forward to continuing to work with advisors and investors in Australia on their long-term wealth creation plans, now with this flexible multi-sector income strategy being part of the mix.”
Capital Group has globally more than doubled the size of its fixed income assets under management to approximately US$470 billion3 in the past 10 years, with a wide range of global fixed income strategies and portfolio solutions that pursue consistent, long-term superior outcomes to meet client needs.
Capital Group first entered fixed income investing in the US in 1973 and now has over 230 fixed income associates based in Los Angeles, New York, London and Singapore.
Data as at 31 March 2023 and attributed to Capital Group, unless otherwise specified.
1. The fund may also invest a small proportion outside these sectors as an opportunistic exposure.
2. 12-month distribution yield from 31 March 2019 to 31 March 2023 in US$ terms. Based on a representative account of the Capital Group Multi-Sector Fixed Income strategy, which is not registered for sale outside of the United States and may have a lower total expense ratio than the fund share class.
3. Fixed income assets are managed by Capital Fixed Income Investors.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
