Capital Group, a Los Angeles-based investment management firm overseeing $365 billion in fixed income assets, has rolled out a new fixed income fund, the company announced in a news release.
The American Funds Multi-Sector Income Fund invests across four sectors in the credit spectrum: high-yield corporates, investment-grade corporates, emerging markets, and securitized debt. It 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.
Damien McCann, Kirstie Spence, Scott Sykes, Shannon Ward and Vince Gonzales will be managing the new Multi-Sector Income Fund, which will be benchmarked against the Bloomberg Barclays U.S. Aggregate Index.
Mike Gitlin, head of fixed income at Capital Group, said that the firm began designing its Multi-Sector Income Fund in September 2018 with the intention of meeting investor demand for a bond fund that could consistently generate income with lower volatility through an entire market cycle, be it a bull or bear market.
“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,” Gitlin said in the news release.
Founded in 1931 by Jonathan Bell Lovelace, Capital Group is one of the world’s oldest and largest investment management firms, with $1.7 trillion in equity and fixed income assets under management as of March 31, 2020.