MSI will complement Deutsche Bank Private Bank’s ESG Strategic Asset Allocation Funds, which offer investors access to Deutsche Bank’s core index multi-asset solution, the firm said in a statement.

MSI combines four key fixed income sectors with distinctive income characteristics in a single portfolio – investment-grade corporate bonds, high-yield corporate bonds, emerging market bonds and securitised credit, all offering the potential for attractive and reliable income. Other potential benefits of the fund include diversification with four income drivers, flexibility to tilt exposure in changing markets, and a balanced risk profile.

“Around the world, many investors have taken flight from markets into cash. However, as the Fed rate hikes near an end, history shows that fixed income outpaced cash after the Fed finished hiking rates,” Grant Leon, head of financial intermediaries, Europe and Asia, Capital Group, said. “We believe it is time to make the shift out of cash. Taking a multi-sector approach to fixed income could help investors better capture the income-generating power of bonds.” 

Consistent with Capital Group’s investment approach, MSI is managed by many portfolio managers, rather than a single manager. It has five portfolio managers with an average investment experience of 23 years. MSI is categorised as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR) and is not equivalent to approval or recognition as an ESG fund by regulators in Asia Pacific.