LOS ANGELES, April 30, 2020 /PRNewswire/ -- Capital Group, one of the world's largest investment management firms, has announced the launch of a new fixed income fund, American Funds Multi-Sector Income FundSM. Capital Group manages $365 billion in fixed income assets.*
The new fund invests across four sectors in the credit spectrum: high-yield corporates, investment-grade corporates, emerging markets and securitized debt. The fund also may use up to 20% of assets under management to invest opportunistically in other fixed income securities, including U.S. government debt, municipal debt and non-corporate credit.
"We began designing our Multi-Sector Income Fund in September 2018, knowing at that time we were late in the bull market cycle and that investors would be seeking a bond fund that could consistently generate income with lower volatility for investors through an entire market cycle," said Mike Gitlin, head of fixed income at Capital Group. "The new fund is designed to do just that and will be managed using the disciplined, long-term view and rigorous research that we have applied to our suite of bond funds for the past 40 years."
The Multi-Sector Income Fund will be managed by five portfolio managers: Damien McCann, Kirstie Spence, Scott Sykes, Shannon Ward and Vince Gonzales. It will be benchmarked against the Bloomberg Barclays U.S. Aggregate Index.
"Our new fund seeks to provide investors with income and lower volatility through both bull and bear markets alike," said McCann. "With the deep and diverse sector experience of the fund's five fixed income portfolio managers, built off the foundation of our global research capabilities, the Multi-Sector Income Fund will help investors pursue resilient income in today's historically low interest rate environment."
About Capital Group
Since 1931, Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. As of March 31, 2020, Capital Group manages more than $1.7 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.
The Capital Group companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses which can be obtained from a financial professional and should be read carefully before investing.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
Higher yielding, higher risk bonds can fluctuate in price more than investment-grade bonds, so investors should maintain a long-term perspective.
The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional cash securities, such as stocks and bonds.
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*Assets managed by Capital Fixed Income Investors. All values in USD. Data as of March 31, 2020.
SOURCE Capital Group