Payden & Rygel believes in the practical application of fundamental analysis to build portfolios that meet client objectives.
Innovation is a constant characteristic of financial markets. Payden & Rygel embraces the
practical application of innovation. Our experienced investment team carefully analyzes all quantitative aspects of a new product or strategy. Then we ask the practical questions, including whether there is enough liquidity and depth in the market, and who benefits from the strategy and who loses. Protecting client assets through in-depth analysis is an important component of Payden & Rygel’s investment philosophy.
Payden & Rygel makes investment decisions based primarily on
fundamental analysis. In fixed income portfolios, we carefully consider economic conditions, central bank policy, yield curve shape, bond issuance, and liquidity in portfolio construction. Equity portfolios are comprised of stocks we believe have attractive earnings growth and valuation ratios.
Diversification is an important part of how we
build portfolios. Payden & Rygel excels at risk management, and diversification is a cornerstone of that philosophy. We scrutinize portfolios in an effort to identify sources of unintended risk. We forecast expected returns globally to build portfolios with maximum return potential, subject to each client's risk constraints.
Our core mission is to
meet client objectives. Often those objectives are client specific, such as a targeted absolute return, a liability driven investment, or a constraint on realized gains or losses. We excel in helping clients evaluate investment issues and provide practical solutions.
Team Approach
Payden & Rygel uses a team approach that exploits the collective wisdom of a highly qualified group of professionals, many of whom have worked together for more than a decade. Product portfolio management teams regularly report portfolio attribution and risk to the Investment Policy Committee, which oversees the investment process for the company.
Analysts provide unbiased research to portfolio management teams and are organized by sector and by geography. Traders focus on minimizing transaction costs and achieving competitive execution.
Consistent Process
Payden & Rygel seeks to add alpha from at least three sources. The sources will vary depending on the type of product (equity, fixed income, cash) and scope of the mandate (single country, regional, or global). For example, US fixed income portfolios add value through duration management, sector rotation, and yield curve management. Global equity portfolios add alpha through country selection, sector selection, and currency management.
Teams of experienced analysts research opportunities worldwide. The product portfolio management team uses the research to derive expected returns and build the portfolio. Risk management is a critical component at every statge of the portfolio construction process. Payden & Rygel’s investment process is flexible and adaptable and can easily incorporate different risk targets, custom benchmarks, and socially responsible investing.
Dedicated client portfolio manager
Clients interact often with a dedicated client portfolio manager who monitors the portfolio and attends to client needs. The client portfolio manager understands each client's goals, tolerance for risk, and ensures compliance with investment guidelines.
Portfolio transparency
The firm values transparency in the portfolio management process. Each client receives access to Juneau, the firm's proprietary on-line system, for an in-depth view of the portfolio on a real-time, secure basis.
