Capital Group's global bond fund combines four strategies

Rudy Luukko 7 December, 2017 | 6:00PM

Capital International Asset Management (Canada) Inc., a subsidiary of the U.S.-based Capital Group, has brought its multi-manager approach to the Global Fixed Income category. The company today announced the launch of Capital Group World Bond (Canada).

Managed by in-house personnel, the fund has four portfolio managers -- Mark Brett, David Daigle, Thomas Høgh and Rob Neithart -- who will each manage a portion of the fund's assets independently. They are supported by 40 analysts and 28 traders based in Los Angeles, Singapore, London and New York, Capital Group said in a release. Globally, Capital Group manages roughly US$300 billion in fixed-income assets.

Though investing primarily in higher-quality government and corporate securities, the fund may also hold up to 25% of its assets in securities whose credit quality is below investment grade. The fund's managers may invest in any country, currency, credit quality or maturity. Along with bonds, the fund may also hold other debt instruments such as mortgage- and asset-backed securities.

The fund's Series A, which has a management fee is 1.15%, pays trailer commissions to dealers of 0.5% annually and enables them to charge a front-end load. Series F, for fee-based accounts, has a management fee of 0.65%. The management fees do not include fund expenses, most of which are covered by an administration fee. Currency-hedged units of the various retail purchase options, including a high-net-worth series, are also available.

About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.