Four fixed income drivers in a single fund for investors in Europe and Asia seeking reliable income

AMSTERDAM, 3 April 2023: Capital Group, one of the largest and most experienced investment companies in the world, with assets under management of over US$2.2 trillion, has launched Capital Group Multi-Sector Income Fund (LUX) (“MSI”) for investors in Europe and Asia.

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 Luxembourg-domiciled UCITS 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 very strong start with a top quartile track record since inception2 and delivered reliable yield3.

Consistent with Capital Group’s investment approach, the strategy is managed by multiple portfolio managers, rather than a single manager. MSI has five portfolio managers with an average investment experience of 24 years.

The fund is categorised as Article 8 under SFDR and applies both exclusions and a carbon footprint target of at least 30% lower than its reference index4.

Mike Gitlin, Global Head of Fixed Income, Capital Group, said: “Capital Group is one of the largest, active fixed income managers globally with around US$450 billion in assets5 and a track record of delivering long-term results. As part of expanding our fixed income offerings, we are delighted to bring Capital Group Multi-Sector Income Fund (LUX) (MSI) to investors in Europe and Asia. We believe our multi-sector income fund, providing a mix of high quality and higher yielding assets, is particularly compelling in the current market environment. MSI combines the power of four fixed income sectors to target reliable income in different market conditions.”

Feike Goudsmit, Managing Director, Nordics, Benelux and Middle East at Capital Group, said: “Against a backdrop of economic uncertainty, the ability to find reliable sources of income has become increasingly important for investors, making the MSI fund a timely addition to Capital Group’s overall offering. We are focused on supporting our clients in the Netherlands with active fixed income solutions that best meet their needs in the journey towards achieving their long-term financial goals.”