Capital Group launches Multi-Sector Income fund

Capital Group, one of the largest and most experienced investment companies in the world, with assets under management of over US$2.2 trillion, has launched Capital Group Multi-Sector Income Fund (LUX) (“MSI”) for investors in Europe and Asia. 

MSI combines four key fixed-income sectors with distinctive income characteristics – investment-grade corporate bonds, high-yield corporate bonds, emerging market bonds, and securitized credit – in a single portfolio, offering the potential for an attractive but reliable income. Other potential benefits of the fund include diversification with four income drivers, flexibility to tilt exposure in 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 based on, and managed by, the same investment team as the Multi-Sector Fixed Income strategy from the US, which was seeded in 2019. The strategy has made a very strong start with a top quartile track record since inception and delivered reliable yield. 

Consistent with Capital Group’s investment approach, the strategy is managed by multiple portfolio managers, rather than a single manager. MSI has five portfolio managers with an average investment experience of 24 years.

The fund is categorized as Article 8 under SFDR and applies both exclusions and a carbon footprint target of at least 30% lower than its reference index.