The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Capital Group, DBS
Asset manager Capital Group has partnered with DBS to distribute its Capital Group Global Corporate Bond Fund (LUX) (GCB) to clients in Singapore and Hong Kong. DBS’ personal banking, Treasures and private banking clients will now be able to make direct investments to the fund, the firm said in a statement.

GCB invests in corporate investment grade bonds worldwide and is designed for long-term stability. Its global approach provides diversification.

Launched in 2018, the Luxembourg-domiciled UCITS is backed by research, managed by a principal investment officer and a team of 16 sector analysts. DBS will now distribute Capital Group Global Corporate Bond Fund (LUX) and Capital Group New Economy Fund (LUX), a global equity fund focused on growth and innovation.

“DBS clients can now access the high-quality fixed income opportunities of Capital Group’s Global Corporate Bond fund alongside our existing Capital Group New Economy fund, a global equity fund focused on growth and innovation,” Grant Leon, head of financial intermediaries, Asia and Europe at Capital Group, said.

“History shows that as Fed rate hikes near an end, fixed income has generated superior returns to cash. GCB provides an opportunity to lock in future income by investing at current yields today, while offering a potential stabilising effect in times of volatility,” he continued.

“High starting yields in bonds today are indicative of strong future returns. Barring an unexpected resurgence of inflation, a scenario of slow rate cuts amid a soft landing in the US economy bodes well for credit. Investors should therefore stay invested, deploying excess cash into bonds to lock in today’s higher yields while they are still available,” Hou Wey Fook, chief investment officer at DBS, added. He believes the sweet spot to be with A/BBB investment grade corporates, with an average portfolio duration in the three to five-year region given the inverted yield curve. 

Capital Group works with financial intermediaries and institutions, managing more than $2.5 trillion in long-term assets for investors around the world.