Payden & Rygel’s Global Core Equity strategy takes a unique approach to global equity investing; it is a top-down strategy. The strategy mixes the best of active and passive approaches to drive investment returns – passive stock selection with active country, currency and sector selection.
Often, traditional equity managers will rely on a bottom-up approach to security selection. However, we believe that domicile plays a significant role in the determination of equity returns. As a result, we use a top-down approach, scouring the global macroeconomic backdrop to develop overweights and underweights for country, currency and sector. We closely follow both the level and trend of economic growth to evaluate the sensitivity that each sector will have to such an environment. And, of course, we also follow corporate earnings growth within each sector.
Our experienced global equity team invests in stock index futures contracts, exchange-traded funds or passive baskets of stocks. This enables us to implement our investment decisions with lower transaction costs. We can also easily accommodate customized risk targets, benchmarks or socially responsible investing.
The Payden & Rygel global equity product is managed as a core product, without a growth or value style bias. This unique approach has attracted some of the most sophisticated institutional investors across five continents since 1997.