Capital Group promises no “scope creep” in bond fund

global corporate bond fund Capital Group, one of the world’s largest asset managers, has launched an investment grade global corporate bond fund as part of its Luxembourg Ucits offering.

The firm, which has $1.6 trillion (€1.3 trillion) of assets under management and runs $300 billion in fixed income, made a point of saying that the Global Corporate Bond Fund (Lux) would not “scope creep” into high yield.

Jeremy Cunningham, fixed income investment director at Capital Group, said: “At this point in the cycle we think investors should ensure they understand the risks in their fixed income holdings and consider upgrading their bond portfolios, so we believe that our clear risk profile and focus on pure investment-grade opportunities could be attractive.”

Capital is in the process of opening up its US strategies to a wider range of people – including in Europe and Asia – with the Luxembourg Ucits platform.

In the past year it has launched a US high yield fund and US corporate bond fund.

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