Capital Group Global High Inc Opps H (CIM3839AU) Report & Performance

What is the Capital Group Global High Inc Opps H fund?

Capital Group Global High Income Opportunities Hedged (AU) aims to achieve over the long-term, a high level of total return, of which a large component is current income by investing in emerging market government bonds and corporate high yield bonds from around the world, while limiting exposure to currencies other than A$ through passive hedging. To achieve over the long term, a high level of total return, of which a large component is current income by investing in emerging market government bonds and corporate high yield bonds from around the world, while limiting exposure to currencies other than A$ through passive hedging.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Capital Group Global High Inc Opps H

Capital Group Global High Inc Opps H Fund Commentary December 31, 2022

• For the three months ended 31 December 2022, Capital Group Global High Income Opportunities Hedged (AU) returned 6.3%4 before fees, while the index returned 5.3%. 5 Net of fees, the fund returned 6.1%. 6 Over a one-year period, the fund returned -12.7%4 before fees and -13.4%6 after fees, compared to the index’s return of -13.8%5 .

• All four sectors that GHIO invests in – EM hard currency sovereign bonds, EM local currency sovereign bonds, EM corporate bonds and corporate high-yield (HY) bonds – rebounded to deliver positive total returns in the fourth quarter. This was mostly the result of a fall in bond yields driven by market expectations that inflation might have peaked enabling central banks to ease policy during 2023.

• Within EM local currency sovereign bonds, positions in South Africa and Ukraine were both notable contributors to results. After contracting during Q2, South Africa’s GDP rebounded strongly during Q3.

• The markets positioning for a slowing global economy and less aggressive interest rate hikes fed through to a weakening of the US dollar over the quarter. This in turn helped support hard currency EM. The largest contribution to results was the fund’s holdings in an Argentinian bond. The strong return helping to pare losses from previous quarters. News around the 2023 elections has created volatility in the Argentine bond market and this is likely to remain the case at least until the second quarter of the year when there should be some insight into candidates and coalitions.

• Within corporate HY, all sectors made a positive contribution to fund results. The highest contribution came from the consumer sectors, both cyclical and non-cyclical. Other notable contributions to the portfolios total returns included energy, capital goods and technology

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Capital Group Global High Inc Opps HCIM3839AUManaged FundsFixed IncomeHigh Yield CreditFixed Income - High Yield Credit IndexGlobal High Yield Credit Hdg Index37.71 M0.85%0.00%0%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Capital Group Global High Inc Opps H3.61%7.56%9.83%-1.52%2.31%8.56%8.84%9.92%-4.53%-19.43%-19.43%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Capital Group Global High Inc Opps HFixed Income - High Yield Credit Index0.18%-3.77%-0.37%-0.15%-0.15%1.865.63%8.27%0.870.67

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Capital Group Global High Inc Opps HYesLevel 18 56 Pitt Street Sydney NSW 2000 Australia+61 2 8038 0808https://www.capitalgroup.com/au/en-

Product Due Diligence

What is Capital Group Global High Inc Opps H

Capital Group Global High Inc Opps H is an Managed Funds investment product that is benchmarked against Global High Yield Credit Hdg Index and sits inside the Fixed Income - High Yield Credit Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Capital Group Global High Inc Opps H has Assets Under Management of 37.71 M with a management fee of 0.85%, a performance fee of 0.00% and a buy/sell spread fee of 0%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Capital Group Global High Inc Opps H has returned 3.61% in the last month. The previous three years have returned -1.52% annualised and 9.92% each year since inception, which is when the Capital Group Global High Inc Opps H first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Capital Group Global High Inc Opps H first started, the Sharpe ratio is 0.14 with an annualised volatility of 9.92%. The maximum drawdown of the investment product in the last 12 months is -4.53% and -19.43% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Capital Group Global High Inc Opps H has a 12-month excess return when compared to the Fixed Income - High Yield Credit Index of 0.18% and -3.77% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Capital Group Global High Inc Opps H has produced Alpha over the Fixed Income - High Yield Credit Index of -0.37% in the last 12 months and -0.15% since inception.

What are similar investment products?

For a full list of investment products in the Fixed Income - High Yield Credit Index category, you can click here for the Peer Investment Report.

What level of diversification will Capital Group Global High Inc Opps H provide?

Capital Group Global High Inc Opps H has a correlation coefficient of 0.67 and a beta of 1.86 when compared to the Fixed Income - High Yield Credit Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Capital Group Global High Inc Opps H and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Capital Group Global High Inc Opps H with the Global High Yield Credit Hdg Index?

For a full quantitative report on Capital Group Global High Inc Opps H compared to the Global High Yield Credit Hdg Index, you can click here.

Can I sort and compare the Capital Group Global High Inc Opps H to do my own analysis?

To sort and compare the Capital Group Global High Inc Opps H financial metrics, please refer to the table above.

Has the Capital Group Global High Inc Opps H been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Capital Group Global High Inc Opps H?

If you or your self managed super fund would like to invest in the Capital Group Global High Inc Opps H please contact Level 18 56 Pitt Street Sydney NSW 2000 Australia via phone +61 2 8038 0808 or via email -.

How do I get in contact with the Capital Group Global High Inc Opps H?

If you would like to get in contact with the Capital Group Global High Inc Opps H manager, please call +61 2 8038 0808.

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Capital Group Global High Inc Opps H. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - November 30, 2022

For the month ended 30 November 2022, Capital Group Global High Income Opportunities Hedged (AU) returned 4.8%2 , while the index returned 4.2%3 . Net of fees, the fund returned 4.7%4 . For the 12-month period, the fund returned -11.4%2 before fees, and -12.1% after fees4 , compared with the index’s return of -12.7%3 .

• EM bonds had the largest positive impact on the portfolio’s absolute returns over the month. EM hard currency government and agency bonds contributed the most, particularly holdings in Argentina and Egypt. EM local currency nominal government bonds also had a positive impact on absolute returns, led by South Africa and Ukraine, although positions in Russia and Brazil detracted. Holdings of EM corporate bonds added absolute value too, most notably in the basic industry sector where petrochemical company Braskem Idesa was a key contributor. In contrast, EM local currency inflation-linked bonds had little impact on overall absolute results.

• High yield corporate bonds also contributed on an absolute basis. The consumer cyclical sector was the largest contributor on an absolute basis, particularly a holding in Melco Resorts. The consumer non-cyclical sector also contributed to absolute returns, with a position in Teva Pharmaceutical among the largest contributors. While no sectors detracted on an absolute basis, party goods supplier Party City was the largest detractor at a security level.

Performance Commentary - September 30, 2022

• For the three months ended 30 September 2022, Capital Group Global High Income Opportunities Hedged (AU) returned -2.5%4 before fees, while the index returned -2.9%. 5 Net of fees, the fund returned -2.7%. 6 Over a one-year period, the fund returned -17.9%4 before fees and -18.6%6 after fees, compared to the index’s return of -18.5%5 .
• All four sectors that GHIO primarily invests in – EM hard currency sovereign bonds, EM local currency sovereign bonds, EM corporate bonds and corporate high-yield bonds – delivered negative total returns in the third quarter, driving down GHIO’s results. This was mostly driven by the increase in government bond yields as major developed market central banks continued to tighten monetary policy. EM currency weakness weighed on EM local currency debt, against a backdrop of broad US dollar strength over the period.
• Within EM local currency sovereign bonds, positions in South Africa and Colombia detracted. The South African rand weakened over the quarter. The South African Reserve Bank has been proactively raising interest rates, despite relatively contained core inflation, partly to help stem the weakness in the rand.
• Within EM hard currency sovereign and agency bonds, a position in Argentine bonds weighed on the portfolio’s absolute returns. The main sources of volatility remain the election in Argentina next year and the current government’s compliance with the International Monetary Fund programme. Holdings in Mexico also detracted amid high inflation, declining business confidence and softer non-manufacturing PMI. The central bank continued to tighten monetary policy over the quarter and revised its growth projections downwards.
• Both hard and local currency Russian bond holdings were marked higher over the quarter, which had a beneficial impact.
• Within corporate high yield, transportation and communications holdings delivered larger than average negative total returns, which weighed on the portfolio’s total returns. Meanwhile the energy sector had a positive impact.

Performance Commentary - June 30, 2022

For the three months ended 30 June 2022, Capital Group Global High Income Opportunities Hedged (AU) returned -10.0%4 before fees, while the index returned -9.9%. 5 Net of fees, the fund returned -10.2%. 6 Over a one-year period, the fund returned -15.8%4 before fees and -16.5%6 after fees, compared to the index’s return of -16.3%.

Performance Commentary - March 31, 2022

For the three months ended 31 March 2022, Capital Group Global High Income Opportunities Hedged (AU) returned -6.4% before fees, in line with the index return. Net of fees, the fund returned -6.6%. Over a oneyear period, the fund returned -3.4% before fees and -4.2% after fees, compared to the index’s return of -4.3%.

Performance Commentary - August 31, 2021

• For the month ended 31 August 2021, Capital Group Global High Income Opportunities Hedged (AU) returned 0.9%2 while the index returned 0.7%3 Net of fees, the fund returned 0.9%4 For the 12-month period, the fund returned 8.4%2 before fees, and 7.4% after fees4 compared with the index’s return of 6.8%3

• Emerging market (EM) bonds had a beneficial impact on the portfolio’s absolute returns. The main positive contribution came from hard-currency government bonds and agency bonds, particularly Argentina and, to a lesser extent, Mexico; in contrast, Sri Lanka had a negative impact on the portfolio’s absolute returns. EM Localcurrency government bonds also had a beneficial impact on the portfolio’s absolute returns over the month: Indonesia, Colombia, Malaysia and South Africa were the main positives, while Mexico slightly detracted. EM corporate bonds and local-currency inflation-linked bonds both delivered marginally positive absolute contributions.

Performance Commentary - December 31, 2020

For the three months ended 31 December 2020, Capital Group Global High Income Opportunities Hedged (AU) returned 7.5%4 before fees, while the index returned 6.4%.5 Net of fees, the fund returned 7.3%.6 Over a one-year period, the fund returned 8.4%4 before fees and 7.5%6 after fees, compared to the index’s return of 4.0%5.

Areas that helped the portfolio in Q4:

– Mexican local currency and hard currency sovereign bonds Mexican local currency bonds offer relatively high real yields, scope for policy easing, and a well-supported currency. Meanwhile, the hard currency bonds have been supported by an improving external outlook, helped by US fiscal stimulus and hopes for a vaccine.
– Indonesian local currency sovereign bonds The Indonesian rupiah appreciated almost 6% relative to the US dollar over the quarter, helping returns for the local currency bonds. Subdued inflation should continue to provide support to Indonesian local currency bonds.

Areas that hurt the portfolio in Q4:

– Argentine hard currency sovereign bonds Argentina defaulted on its sovereign debt repayments in 2020, resulting in capital outflows. It has also been suffering from double-digit inflation, a weak fiscal position and the impact of the COVID-19 lockdown.
– Frontier Communications (integrated telecom services) The heavily indebted US telecoms group entered Chapter 11 in early 2020, but is widely expected to exit from that early in 2021. The company owns significant fibre assets across the US and our analyst sees potential for growth in that area as well as scope for meaningful de-leveraging.

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