28 Jun 2023

HSBC to distribute Capital Group’s Global Corporate Bond Fund to investors globally

LUXEMBOURG, 28^th June 2023: Capital Group and HSBC will extend a long-standing relationship through the distribution of the Capital Group Global Corporate Bond Fund (LUX) (GCB) to HSBC’s clients globally¹. HSBC will work with Capital Group to launch the fund globally across its Global Private Banking, Wealth Management, and Retail client segments, in several markets globally.

Capital Group is one of the largest and most experienced investment management companies in the world, with assets under management of approximately US$2.3 trillion².

HSBC is a leading global wealth manager and offers a market-leading mutual funds proposition to its clients.

The GCB fund aligns with the HSBC Global Private Banking and Wealth CIO’s high conviction theme Opportunities in Quality Credit, which focuses on global investment grade corporate credit. GCB’s global approach provides diversification across markets and greater liquidity, while its focus on high quality may offer a degree of long-term stability. The fund could form a core allocation in clients’ investment portfolios, where appropriate for that client, with high-quality credit potentially playing a stabilising effect due to its low correlation to equities, should volatility remain elevated.

Launched in 2018, over the past five years the Luxembourg-domiciled UCITS fund outperformed the reference index and peer group³. The portfolio, driven by fundamental research, is managed by a lead portfolio manager and a global team of 16 sector analysts investing in their highest convictions.

Mike Gitlin, Global Head of Fixed Income, Capital Group, said: “We are delighted to deepen our relationship with HSBC as Capital Group celebrates 50 years of fixed income investing. We’re proud to be one of the largest, active fixed income managers globally with around US$470 billion in assets².

“While markets have been challenged over the last few years, the return of income to fixed income means that investors can benefit from putting cash to work in high quality bonds with attractive yield for potential future income. Harnessing Capital Group’s strong fixed income capabilities and the Global Corporate Bond fund’s track record with HSBC’s global distribution network, we look forward to supporting more clients around the world to build a balanced portfolio.”

Annabel Spring, Chief Executive of HSBC Global Private Banking & Wealth, said: “We are pleased to be working with Capital Group to offer our clients access to its Global Corporate Bond Fund (LUX). This fund firmly aligns with our CIO view to focus on quality bonds, where current yields are at a decade high and we are nearing the end of the Fed’s tightening cycle. Historically, investing at current levels has provided investors with attractive total returns from income and capital growth.

“This arrangement further enriches our strong mutual funds offering and underscores our approach of offering a wide range of leading investment solutions to help clients unlock opportunities globally.”

Notes to editors

Stampa

Pieter Segaert
capitalgroup@stampacommunications.com
+32 474 837 599

About Capital Group

Capital Group is one of the oldest and largest asset management companies in the world, managing multi-asset, equity and fixed income investment strategies for different types of investors. Since 1931, Capital Group has been singularly focused on delivering superior, consistent results for long-term investors using high conviction portfolios, rigorous research and individual accountability. Today, Capital Group works with financial intermediaries and institutions to manage approximately US$2.3 trillion² in long-term assets for investors around the world.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.

The information in relation to the index is provided for context and illustration only. The fund is an actively managed UCITS. It is not managed in reference to a benchmark. Past results are not a guarantee of future results.

Data as at 31 May 2023 and attributed to Capital Group, unless otherwise specified.

¹This includes Hong Kong, Singapore, UK, Switzerland, France, Luxembourg, Germany, US Offshore, The Channel Islands and Isle of Man.

² AUM as at 31 March 2023. Fixed income assets are managed by Capital Fixed Income Investors.

³5-year returns p.a. to 31 May 2023 in USD. Source: Morningstar. Returns for GCB are after management fees and expenses for the Z share class, as a representative share class, ap plying the maximum total expense ratio. The impact of fees on returns may vary depending on the investor, share class and any arrangements with distributors or intermediaries. The index is the Bloomberg Global Aggregate Corporate hedged to USD. Morningstar Peer Group (5%-95%): Europe/Asia/Africa Fund Global Corporate Bond –hedged to USD (oldest share class).

FOR PROFESSIONAL / QUALIFIED INVESTORS ONLY – NOT FOR PUBLIC DISTRIBUTION

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In Hong Kong, this communication has been prepared by Capital International, Inc. (CIInc), a member of Capital Group, a company incorporated in California, United States of America. The liability of members is limited. In Singapore, this communication has been prepared by Capital Group Investment Management Pte. Ltd. (CGIMPL), a member of Capital Group, a company incorporated in Singapore. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore, the Securities & Futures Commission of Hong Kong, or any other regulator.

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The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
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