Capital Group Global High Income Opportunities (LUX) marks 20 years
Capital Group Global High Income Opportunities (LUX) marks 20 years
Capital Group, one of the world’s largest and most experienced investment firms, with over US$1.6 trillion in assets under management, marks 20 years of generating consistent returns for clients in Europe and Asia through Capital Group Global High Income Opportunities (LUX) (GHIO).
At its launch as a Luxembourg-domiciled fund on 7 May 1999, GHIO was one of the first funds to combine the higher yielding parts of the fixed income universe – primarily developed market corporate high yield – and emerging market hard and local currency debt. These asset classes offer similar risk-return profiles but follow different market cycles, allowing Capital Group to diversify the risks associated with high-yield investing with the potential for more consistent income and less volatile returns.
GHIO has a proven track record spanning 20 years, delivering attractive total returns with a high level of income over multiple credit cycles. The fund is rated five stars by Morningstar1 and has a 10-year average distribution yield of 7.7%2 .
Jeremy Cunningham, Fixed Income Investment Director, Capital Group, said: “With the backdrop of low yields and low interest rates, fixed income investors continue facing a challenge of finding income and total return with lower volatility. Over two decades ago, we recognised the diversification benefits and attractive income opportunity of combining high-yield and emerging market bonds. As we mark 20 years of Capital Group Global High Income Opportunities (LUX), we believe an important factor contributing to its consistent and strong track record has been our focus on income as the primary driver of return, while delivering capital appreciation. With an investible global high income universe of over US$7 trillion3, we continue to see opportunities to provide investors a high level of income in a risk-controlled environment.”