Payden & Rygel excels in managing balanced mandates that are available in multiple currencies. Designed for large institutions and high net-worth individuals, the firm’s balanced mandates vary greatly. The firm manages accounts with blended stock/bond benchmark indices as well as those with absolute return orientations.

Constructing a balanced portfolio
The stock/bond mix is based on a combination of fundamental economic analysis, valuation measures for bonds and stocks, global asset flows, technical analysis, and client objectives.

Stock/bond mix
Payden & Rygel considers an array of domestic assets when formulating a balanced strategy. Within equities, strategists use the full spectrum of large-cap, mid-cap, and small-cap equities. Style tilts are used to favor growth or value stocks. Real estate investment trusts (REITs) are also considered in the equity allocation. Within fixed income, a broad range of securities and maturities are employed. Government securities, corporate bonds, mortgage and asset-backed bonds, and high-yield securities each play an important role in Payden & Rygel’s asset allocation strategy.

A combination of top-down and bottom-up strategies
While the asset allocation decision is top-down, the individual securities used in the balanced portfolio are constructed using a bottom-up approach. The combination of top-down and bottom-up strategies produces an optimal balanced portfolio.

More information on Payden & Rygel's fixed-income, equity and balanced investment strategies.