UCITS Funds

Payden Absolute Return Bond Fund (PYARBUA ID)

Base Share Class: USD
  • Overview
  • Portfolio Statistics
  • Performance & Expenses
  • Fund Commentary
Investment Strategy

The Payden Absolute Return Bond Fund invests in a multi-sector portfolio of global government, corporate, securitised and emerging market debt as well as select equity-related investments. It moves dynamically among sectors and individual securities with the aim of achieving its 1-month LIBOR +3% return objective. The fund takes advantage of Payden's broad investment resources by incorporating the most compelling risk-adjusted opportunities from each sector team. A special emphasis is also placed on risk management and mitigating downside potential.

Fund Snapshot
Fund Inception Date Jun 12, 2013
Share Class Inception Date Jun 12, 2013
Ticker PYARBUA ID
ISIN Number IE00B88XTT84
Sedol Number B88XTT8
Fund Total Net Assets $2602.4 million
Benchmark ICE BofA ML US Dollar 1-Month Deposit Offered Rate Constant Maturity Index
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee 0.45%
Total Expense Ratio 0.50%
Investment Minimum $1,000,000 initial

Unless otherwise indicated, all listed data represents past performance. There is no guarantee of future performance, nor are fund shares guaranteed. Funds are issued by Payden & Rygel Global, Ltd., which is authorised and regulated by the Financial Conduct Authority. The investment products and services of Payden & Rygel are not available in the United Kingdom to private investors. The value of an investment may fall as well as rise and an investor may get back less than the amount that has been invested. Income from an investment may fluctuate in value in money terms. Changes in rates of exchange may cause the value of an investment to go up or down.

Portfolio Characteristics
Fund Inception Date Jun 12, 2013
Share Class Inception Date Jun 12, 2013
Total Net Assets $2602.4 million
Average Duration 1.7 years
Average Maturity 4.4 years
Yield to Maturity (hedged) 3.9%
Duration Breakdown
Years Percent of Portfolio
0-160%
1-317%
3-519%
5+4%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA21%
AA3%
A7%
BBB25%
BB and Below33%
Unrated11%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Mortgage-Backed Securities29%
Investment Grade Corporates18%
Asset-Backed Securities13%
CMBS11%
Emerging Markets9%
Money Markets7%
High Yield5%
Cash4%
Bank Loans4%
Total 100%

Unless otherwise indicated, all listed data represents past performance. There is no guarantee of future performance, nor are fund shares guaranteed. Funds are issued by Payden & Rygel Global, Ltd., which is authorised and regulated by the Financial Conduct Authority. The investment products and services of Payden & Rygel are not available in the United Kingdom to private investors. The value of an investment may fall as well as rise and an investor may get back less than the amount that has been invested. Income from an investment may fluctuate in value in money terms. Changes in rates of exchange may cause the value of an investment to go up or down.


Total Returns
YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Quarter-end (3/31/2019) 2.40% 2.40% 2.93% 2.24% N/A 2.46%
Month-end (4/30/2019) 3.07% 3.22% 2.90% 2.27% N/A 2.53%
Yearly Returns
20180.46%
20172.86%
20163.88%
20151.09%
20141.24%
20132.33%
Expenses
Management Fee 0.45%
Total Expense Ratio 0.50%

Unless otherwise indicated, all listed data represents past performance. There is no guarantee of future performance, nor are fund shares guaranteed. Funds are issued by Payden & Rygel Global, Ltd., which is authorised and regulated by the Financial Conduct Authority. The investment products and services of Payden & Rygel are not available in the United Kingdom to private investors. The value of an investment may fall as well as rise and an investor may get back less than the amount that has been invested. Income from an investment may fluctuate in value in money terms. Changes in rates of exchange may cause the value of an investment to go up or down.

Fund Commentary

MARKET
The month of April was underscored by continued improvement in financial conditions and corresponding asset prices when compared to the end of 2018. Central banks remained dovish and global economic data stabilized, causing volatility to decline and investor confidence to improve.
More Brexit “deadlines” have come and gone, leaving further uncertainty over how negotiations will play out, while also dampening concerns in the region regarding a near-term adverse outcome. The US and China have yet to come to terms on a new trade deal, yet there is newfound optimism surrounding an expected deal in the first weeks of May.
Global equities returned nearly 4% in April, bringing the year to date return up to 17%. Most fixed income asset classes generated positive returns over the month. Moreover, most developed global government bond yields modestly increased in April, contrasted by Australia where 2-year and 5-year government yields declined following further indications of a weakening economy. Meanwhile, oil crept higher over the month, peaking over $66 per barrel (almost $21 higher than the price at the end of 2018).

OUTLOOK
Economic data continues to favor the cycle progressing through the end of 2019. US manufacturing and services purchasing managers index (PMI) remains in expansionary territory. The bearish tone surrounding the European economy has slightly dissipated in the last month, with Eurozone manufacturing PMI showing a minor improvement after declining for eight straight months. China’s manufacturing PMI rose into expansionary territory, a signal that typically leads Eurozone activity.
The risk of an imminent global recession (in 2019) remains low as global growth remains stable (strong in the US and relatively benign in China/Europe), global unemployment figures are still improving (declining), and global central banks exhibit continued support for markets.
Given implied volatility is low relative to historic averages, the strategy aims to modestly increase the tail risk hedging program via select cheap insurance options for implementation. Considering prices have recovered back toward end of Q3 2018 levels, the strategy maintains a balanced posture, well-diversified among sub-sectors and skewed toward higher quality bonds.

Unless otherwise indicated, all listed data represents past performance. There is no guarantee of future performance, nor are fund shares guaranteed. Funds are issued by Payden & Rygel Global, Ltd., which is authorised and regulated by the Financial Conduct Authority. The investment products and services of Payden & Rygel are not available in the United Kingdom to private investors. The value of an investment may fall as well as rise and an investor may get back less than the amount that has been invested. Income from an investment may fluctuate in value in money terms. Changes in rates of exchange may cause the value of an investment to go up or down.