Capital Group Builds Bond Team to Chase Pimco in Fixed Income
- Bond Fund of America second-largest in active bond management
- By one measure, it’s also beating all peers for returns, too
Capital Group Inc., better known as a behemoth in stock picking, is putting up some of the best results and strongest growth among actively run bond funds, elbowing past fixed-income rivals who are enduring a siege from cheaper index funds and rising interest rates.
By the end of last year, Capital Group had amassed $498 billion in its fixed-income holdings, more than doubling assets since 2015. It now runs the second-largest actively managed bond mutual fund in the US — Bond Fund of America — trailing only an income fund offered by industry leader Pacific Investment Management Co. As for returns, one measure tracked by Morningstar shows a specific share class of Bond Fund of America has beaten all other peers over the past four years, when a new manager took over.