Capital Group partners with UBS Global Wealth Management (GWM) to launch Multi-Sector Income fund

by | Jan 24, 2023

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Four fixed income drivers in a single fund for investors in Europe and Asia seeking reliable income.

Capital Group, one of the largest and most experienced investment companies in the world, with assets under management of over US$2.1 trillion1, has launched Capital Group Multi-Sector Income Fund (LUX) (“MSI”) through an exclusive distribution partnership with UBS GWM for investors in Europe and Asia2.

MSI combines four key fixed income sectors with distinctive income characteristics – investment-grade corporate bonds, high-yield corporate bonds, emerging market bonds and securitised credit3 – 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 inception4 and delivered reliable yield5.

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 23 years.

Mike Gitlin, Head of Fixed Income, Capital Group, said: “Capital Group is one of the largest, active fixed income managers globally with around US$450 billion in assets6 and almost 50 years of experience investing in bond markets. We are delighted to partner with UBS GWM, the world’s largest wealth manager, to distribute the Capital Group Multi-Sector Income Fund (LUX) (MSI) to investors in Europe and Asia. We believe our new multi-sector income fund, offering a mix of high quality and higher yielding assets, is particularly compelling in the current market environment.”

 

“MSI combines the power of four fixed income sectors to target reliable income in 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 look forward to bringing the strength, breadth and depth of Capital Group’s fixed income business to UBS investors globally.”

Bruno Marxer, Head Global Investment Management, UBS GWM, said: “We are pleased to team up with such an esteemed partner and offer our clients prime access to this unique and differentiated strategy. Earning more predictable returns from income strategies is particularly appealing amid ongoing market volatility, making this a timely addition to our overall offering.”

UBS GWM is the exclusive launch partner for MSI in Europe and Asia2 until 31 March 2023.  

 

The fund is categorised as Article 8 under SFDR and applies both exclusions and a carbon footprint target of at least 30% lower than its reference index7

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