Capital Group sees new investment opportunities in fixed-income bonds and is entering into a partnership with the asset management division of UBS to that end.
Fund manager Capital Group is entering into a partnership with the asset management division of UBS. According to a statement Tuesday, the investment firm has launched the Capital Group multi-sector income fund (MSI) through an exclusive distribution partnership with UBS Global Wealth Management (GWM) for investors in Europe and Asia.
MSI combines four fixed-income sectors: investment-grade and high-yield corporate bonds, emerging market bonds, and securitized credit into a single portfolio.
The Luxembourg-domiciled fund is based on and managed by the same investment team as the US-based MSI strategy launched in 2019. In line with Capital Group’s investment approach, MSI is managed by five portfolio managers with an average investment experience of 23 years.
According to Mike Gitlin, head of fixed income at Capital Group, the partnership will make Capital Group’s fixed-income business available to UBS investors globally.
Capital Group is one of the world’s largest and most experienced investment firms with active investment strategies, with more than $2.1 trillion in assets under management.
Founded in Los Angeles in 1931, Capital Group opened its first foreign office in Geneva in 1962 and added a Zurich office in 2015. In Switzerland, the firm employs about 130 people, 11 of them in Zurich, the majority in sales.
Organized as a partnership, Capital Group is not listed on stock exchanges. Another distinctive feature is the relatively few strategies it offers, around 50, compared to other large asset managers. In addition, around 60 percent of the investments are held for over five years.