Capital Group Canada Launches World Bond Fund for Prudently Managed Global Diversification

Capital Group World Bond Fund^SM (Canada) provides a solution for investors looking to diversify equity portfolios

TORONTO, Dec. 7, 2017 /CNW/ - Capital Group announced today a globally diversified fixed income portfolio for Canadian investors: Capital Group World Bond Fund (Canada). This strategy seeks to provide a prudently managed portfolio of bonds and other debt securities of global issuers and can act as a good complement to equity portfolios.

"In this low interest rate environment, it's tempting to reach for yield," says Thomas Høgh, a portfolio manager and the mandate's Principal Investment Officer. "The risk is that high-yielding bond strategies could be at risk of sharp price declines due to their high correlation to equity markets. We believe bonds should anchor a portfolio and behave like bonds. A prudently managed bond portfolio should provide income, capital preservation, inflation protection and diversification from equities."

With a focus on investment-grade bonds, World Bond Fund provides exposure to global bond markets — with different economic cycles, yields and currency valuations — which can add an extra layer of bond diversification. It can invest in any country, currency, credit quality, coupon or maturity, including a mix of government/agency, corporate, and mortgage- and asset-backed bonds from around the world.

The portfolio is offered by Capital International Asset Management (Canada), Inc., part of Capital Group. Capital Group began managing fixed income portfolios for U.S. investors in 1973 and today manages more than US$295 billion in fixed income assets globally.¹ "Capital Group provides access to global markets with a commitment to low fees," notes Mark Tiffin, president of Capital International Asset Management (Canada). "Deep global research and experience also enable Capital Group to be in front of trends rather than chasing them," he added. "That can lead to better outcomes for investors."

The fund's four portfolio managers — Mark Brett, David Daigle, Thomas Høgh and Rob Neithart — will each manage a portion of the fund's assets independently and have a median 30 years of investment experience. Capital Group's fixed income portfolio managers are supported by 40 analysts and 28 traders based in Los Angeles, Singapore, London and New York.

About Capital Group
Since 1931, Capital Group has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. Today, Capital Group manages more than US$1.6 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.²

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.

¹ Assets managed by Capital Fixed Income Investors, as of September 30, 2017.

² As of June 30, 2017.

© 2017 The Capital Group Companies, Inc.

SOURCE Capital Group Canada

Caroline Semerdjian, [phone], [email protected]