The latest news on investment offers, financial products and other services relevant to wealth advisors and their clients.
Capital Group, DBS
Asset manager Capital Group has partnered with DBS to distribute the Capital Group Global Corporate Bond Fund (LUX) (GCB) to clients in Singapore and Hong Kong. DBS retail banking, treasure and private banking clients will now be able to invest directly in the fund, the company said in a statement.
GCB invests in investment grade corporate bonds around the world and is designed for long-term stability. Its global approach provides diversification.
Launched in 2018, the Luxembourg-based UCITS is research-backed and managed by a Chief Investment Officer and a team of 16 sector analysts. DBS will distribute Capital Group Global Corporate Bond Fund (LUX) and Capital Group New Economy Fund (LUX), global equity funds focused on growth and innovation.
“DBS clients can now access high-quality fixed income investment opportunities from Capital Group’s Global Corporate Bond Fund, in addition to the existing Capital Group New Economy Fund, a global equity fund focused on growth and innovation,” said Grant Leong, Capital Group’s head of Asia and Europe financial intermediation.
“History has shown that bonds have generated better returns than cash as the Fed comes to an end in its rate hikes. GCBs offer the opportunity to lock in future income by investing at current yields, while also providing a potential stabilizing effect during periods of volatility,” he continued.
“Today’s high bond yields suggest robust future returns. Barring an unexpected resurgence in inflation, a scenario of continued gradual rate cuts amid a soft landing for the US economy bodes well for credit. Investors should therefore stay invested and put excess funds into bonds to lock in today’s high yields while they are still available,” added DBS chief investment officer Hou Wei Fook. He believes that A/BBB investment-grade corporate bonds with an average portfolio duration in the three-to-five year range is the sweet spot given the inverted yield curve.
Capital Group works with financial intermediaries and institutions to manage more than $2.5 trillion in long-term assets for investors around the world.
