The Luxembourg-domiciled Ucits product focuses on investment-grade US corporate bonds.
“For many Asian investors facing the challenge of low yield in domestic bond markets, US investment-grade corporate bonds offer an attractive way to access higher yield without significant risk exposure,” said Eric Delomier, Capital Group’s investment specialist.
According to him, US corporates have typically fared well even in periods of gradual interest rate rises coming from the Fed.
The launch is scheduled for 21 March in Singapore, with later dates planned for Hong Kong and Korea.
The fund was previously only available to US investors, and is the fourth US investment strategy to be introduced by the firm to Asian investors, the statement said. The fund will also be launched in Europe.
Previously in Asia, the firm rolled out the New Perspective Fund in October 2015, the Investment Company of America in June 2016 and the New World Fund in October 2016.
The products have gathered around $1bn of assets from Asian investors, the firm said.
US-based Capital Group manages around $1.4trn (£1.15trn, €1.3trn) in client assets.
