The fund has not yet launched in other Asian markets, FE data shows.
The fund invests at least 80% of assets in global corporate bonds with an investment grade credit rating, according to its key investor information sheet. Other fixed income securities, including government bonds, may also be purchased.
In total, the firm now offers 22 mutual funds in Hong Kong, SFC records show. Nine of those funds received approval from the regulator to be launched last year, while the remaining 12 received the green light in 2016.
FSA sought more information from Capital Group, but the firm did not respond in time for publication.
Asia staff expansion
In 2015, the firm announced it would expand in the region. Plans include extending distribution to the retail investor and financial intermediary segments, introducing new and existing strategies to these market segments and boosting its investment management and research personnel in the region, Andrew Economos, senior vice president for strategic solutions for Asia, said in a statement.
Several regional hires followed. The firm appointed Stanley Chan in Hong Kong as relationship manager responsible for expanding the institutional and financial intermediary segment in the SAR, Masaki Takada in Tokyo as a senior relationship manager, and Scott Baker and Nigel Waugh as key account managers in Sydney.
North Asia sales coverage was also built up with the appointments of Berry Hsieh as director for strategic solutions in Taiwan and Andrew Hwang as director for strategic solutions in Korea.
Last year, the firm strengthened institutional sales capabilities in the region with the appointment of Tan Shen as Hong Kong-based managing director for institutional distribution for Asia ex-Japan.
Capital Group established its first retail distribution partnership in Hong Kong with HSBC in 2016, according to a separate statement. At the time, the bank agreed to distribute the firm’s Capital Group New Perspective Fund (Lux), with plans of introducing additional funds from the firm.
In spite of its efforts in the region, the firm, which is one of the 10 biggest asset managers globally, has shown no signs of tapping the Chinese market, according to a Z-Ben report.
Although it has an office in Beijing, the firm does not have a joint venture and has not established an investment management wholly foreign-owned enterprise (IM WFOE) in China. Other asset management giants that have no joint venture or IM WFOE are State Street Global Advisors and Goldman Sachs.