Asset manager Capital Group has launched the Capital Group UK – Global Corporate Bond Fund, an open-ended investment company (OEIC), providing UK investors access to a diversified portfolio of investment-grade bonds with a long-term total return focus.
An OEIC is a type of investment fund domiciled in the UK that is structured as a company in its own right to invest in stocks and other securities. OEIC shares do not trade on the London Stock Exchange ( Investopedia).
The new fund mirrors the strategy and management of its Luxembourg-domiciled Ucits counterpart, which has outperformed its reference index over the past five years, according to the asset manager.
BlackRock launches UK fund targeting low carbon transition
Managed by a lead portfolio manager and 16 sector analysts, the fund is built on fundamental research and high-conviction investments, offering UK investors access to “high-quality credit exposure and long-term stability”.
“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,” said Damir Bettini, portfolio manager of the Global Corporate Bond Fund. “Fixed income now looks highly attractive and could provide a good balance of income and capital preservation.”
Bettini emphasised the importance of investment-grade corporate bonds in a well-diversified fixed-income portfolio, noting that a global approach offers broader yield, risk, and return sources than regional strategies. “Allocating to global IG corporate bonds can potentially enhance returns and reduce volatility through diversification,” he added.
Chris Miles, head of UK Client Group at Capital Group, added: “Our commitment to providing UK intermediaries with durable, time-tested strategies remains steadfast,” he said. “As one of the largest active fixed income investors globally, managing over £414 billion in assets, we are dedicated to delivering solutions that meet our clients’ needs.”
