Capital Groupone of the world’s largest investment firms with over $2.1 trillion in assets under management, has launched Capital Group Multi-Sector Income Fund (LUX) (“MSI”) through an exclusive distribution partnership with UBS Global Wealth Management for investors in Europe and Asia.
MSI combines four key fixed income sectors with distinctive income characteristics – investment-grade and high yield corporate bonds, emerging market bonds and securitized credit – into a single portfolio, offering the potential for an attractive yet reliable return.
Other potential benefits of the fund are diversification with four income drivers, the flexibility to adjust exposure with ever-changing markets and a balanced risk profile.
The fund is designed to provide a high level of current income and capital appreciation. This Luxembourg-domiciled UCITS fund is managed by the same investment team as the US Multi-Sector Fixed Income strategy, which was launched in 2019. Consistent with Capital Group’s investment approach, the strategy draws on contributions from 5 portfolio managers, with an average of 23 years’ experience, rather than a single manager.
Mike GitlinHead of Fixed Income at Capital Group, said:
“Capital Group is one of the largest active fixed income managers globally, with approximately $450 billion of assets and nearly 50 years of investment experience in the fixed income markets. We are delighted to partner with UBS Global Wealth Management, the world’s largest wealth manager, to distribute the Capital Group Multi-Sector Income Fund (LUX) (MSI) to investors across Europe and Asia. We believe our new multi-sector fund, which offers a mix of high quality and higher yielding fixed income assets, is particularly attractive in the current market environment. MSI combines the strength of four fixed income sectors to achieve stable income under different market conditions. Against a backdrop of economic uncertainty, the ability to find reliable sources of income has become increasingly important for investors. Through our partnership with UBS GWM, we will be able to offer Capital Group’s expertise and experience in fixed income management to UBS investors globally.”
Bruno MarxerHead Global Investment Management at UBS GWM, said:
“We are delighted to collaborate with such a valued partner and to offer our clients privileged access to this unique and distinctive strategy. Obtaining more predictable returns from bond strategies is particularly attractive in a volatile market environment, such as the current one, which makes this an appropriate addition to our offering”.
UBS GWM is the exclusive launch partner for MSI in Europe and Asia until 31 March 2023. The fund is classified as Article 8 under the SFDR and applies both exclusions and a carbon footprint target of at least 30% lower compared to its benchmark index.