CAPITAL Group has launched a US high-yield bond fund for Asian investors. The fund, the Capital Group US High Yield Fund (LUX), is the most recent addition to the Luxembourg-domiciled UCITS fund range, and is part of a multi-year, strategic plan to build up Capital Group’s fixed-income business.

The new fund joins the Capital Group US Corporate Bond Fund (LUX), which was launched earlier this year. The new fund seeks to provide, over the long term, a high-level of total return with a focus on generating reliable and consistent income. It invests in a portfolio of US high-yield bonds with a clear risk profile, having explicit restrictions on non-corporate and emerging market corporate bonds. The fund is built on a research-driven, fundamental approach that seeks to drive returns from a bottom-up security and industry selection.

Shannon Ward, a high-yield portfolio manager at Capital Group, says, “Over the past decade the US high-yield market has grown in breadth and depth and is ideally suited for Capital Group’s fundamental research approach. A well-constructed portfolio of high-yield bonds offers investors the potential for relatively attractive and secure returns and can help investors achieve their financial goals. Downside protection is particularly important for our clients and is a key element in the way the portfolio is managed.”

Thomas Quantrille, president and head of Asia for Capital Group, says, “This new fund launch is further evidence of Capital Group’s commitment to both fixed income and our Asian businesses. The US High Yield Fund (LUX) will be our sixth launch as part of our broader strategy to enhance the suite of funds available to Asian investors with the best of Capital Group’s global offerings.”

As of 30 September 2017, Capital Group manages US$296 billion of fixed-income assets globally.