Capital Group Global High Income Opportunities (LUX) (GHIO) Q&A with Rob Neithart

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Q&A with Rob Neithart, Fixed Income Portfolio Manager Based in Los Angeles

We have experienced an extraordinary year so far. How did GHIO navigate the volatility and what have you done in the portfolio since then?

Going into the period of volatility experienced earlier this year, the portfolio was positioned relatively defensively based on a view that valuations looked stretched across the broad fixed income opportunity set, and particularly within high yield. The overall risk profile of the portfolio was towards the lower end of its typical range, and we had also built up a cash buffer with higher levels of cash …

Key takeaways

• Going into the period of volatility earlier this year, GHIO was positioned defensively on the back of relatively full valuations. As markets sold-off quite dramatically, we were able to take advantage of the market dislocations created by the volatility, increasing the portfolio’s risk using our deep bench of credit research and the cash buffer we had built up.
• Markets have since recovered quite significantly, and we have reduced our overall risk profile again, especially given there still remains a lot of uncertainty. We stand ready, however, to adopt a more risk-on stance should volatility reemerge and assets reprice again.
• Fixed income is a key strategic priority for Capital Group, and we will continue to grow and strengthen the team, bringing new and fresh perspectives.