How good is Capital Group's growing Fixed Income team?

Capital is known for equities but have been expanding their FI funds (almost $500bn AUM now). What is their reputation in the FI space?

Some observations from checking out their website:

  • Most of their big funds (core bonds/corporates) do beat their indices over a long period, but just slightly after fees
  • Big funds are highly correlated with their indices, so it feels like closet indexing
  • Meanwhile, their more active funds (multisector, strategic bond) have relatively AUMs and haven't been around that long

Given active FI funds beat the AGG more often than equity funds do, what is the future of FI at Capital Group?

 

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