Capital Group has launched the Global Corporate Bond Fund (GCB), an OEIC for UK investors.
GCB OEIC mirrors the investment approach and management team of its Luxembourg-domiciled UCITS counterpart, Capital Group Global Corporate Bond Fund (LUX), which has outpaced its reference index over the past five years.
GCB invests primarily in investment-grade (IG) bonds globally and is focused on providing a high level of total return over the long term.
This approach offers UK investors market diversification and potential long-term stability through high-quality credit exposure. Managed by a lead portfolio manager and a team of 16 sector analysts, GCB’s portfolio is 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.”
Chris Miles, head of UK Client Group at Capital Group, said: “We are witnessing a growing demand among our clients for global investment solutions, particularly in high-quality corporate bonds. Our commitment to providing UK intermediaries with durable, time-tested strategies remains steadfast. As one of the largest active fixed income investors globally, managing over £414 billion in assets and leveraging over 50 years of experience in bond markets, we are dedicated to delivering solutions that meet our clients’ needs.”
