Capital Group has launched a US high yield fund as the firm continues to grow its fixed income capabilities.
The Capital Group US High Yield fund sits in the Luxembourg-domiciled Ucits range alongside the Capital Group US Corporate Bond fund, which launched earlier this year.
The US High Yield fund aims to provide a high level of total return with a focus on income while avoiding non-corporate and emerging market corporate bonds. The strategy is research-driven, using a bottom-up approach.
Shannon Ward, high yield portfolio manager at Capital Group, says: “Over the past decade the US high yield market has grown in breadth and depth and is ideally suited for Capital Group’s fundamental research approach.
“A well-constructed portfolio of high yield bonds offers investors the potential for relatively attractive and secure returns and can help investors achieve their financial goals. Downside protection is particularly important for our clients and that is a key element to the way in which the portfolio is managed.”
Hamish Forsyth, European President of Capital Group, adds: “This new fund launch is further evidence of our commitment to European markets. The Capital Group US High Yield fund will be the sixth launch as part of our strategy to bring the best of Capital Group’s funds to Europe.”
Capital Group manages $296bn in fixed income assets globally.