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 $2631.6 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 $2631.6 million
Average Duration 1.8 years
Average Maturity 4.2 years
Yield to Maturity (hedged) 3.8%
Duration Breakdown
Years Percent of Portfolio
0-159%
1-319%
3-520%
5+2%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA20%
AA3%
A12%
BBB23%
BB and Below31%
Unrated11%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Mortgage-Backed Securities29%
Investment Grade Corporates20%
Asset-Backed Securities14%
CMBS10%
Emerging Markets8%
Money Markets5%
High Yield5%
Bank Loans4%
Other5%
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 (6/30/2019) 4.46% 4.57% 3.12% 2.43% N/A 2.69%
Month-end (6/30/2019) 4.46% 4.57% 3.12% 2.43% N/A 2.69%
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 June continued to see more trade war headlines as the G20 summit approached. Meanwhile, most major global central banks eased rates or pledged to do so in the future. As expected, the Reserve Bank of Australia (RBA) brought their key policy rate 0.25% lower to 1.25%. Citing sluggish growth, the European Central Bank also reaffirmed its commitment to accommodative actions as needed. The Federal Reserve elected to hold their policy rate steady, but the median policymaker now expects interest rates to be 0.25% lower by the end of 2020, as trade policy “crosscurrents” weigh on the outlook. Given this backdrop, government bond yields fell across developed markets whereby 5-year yields fell 0.5% in the U.S., 0.4% in Australia, and 0.2% in Europe. Moreover, the S&P 500 Index posted its best first half in 22 years, up 17% since the start of the year. Bonds also performed well, with the Bloomberg Barclays Global Aggregate Index up 1.4% for the month.
The fund continues to invest across a diversified mix of fixed-income sectors including corporate bonds, mortgage-backed, and asset-backed securities. We trimmed opportunistic exposure, primarily in emerging-market debt, high-yield corporate bonds, and BBB-rated collateralized loan obligations to crystalize profits and increase liquidity for future opportunities.

OUTLOOK
Developments on trade and the direction of global economic data continue to be drivers of market direction in the near-term. We expect U.S. GDP to slow toward trend, with growth in China and the euro area stabilizing in the latter half of 2019. U.S. core personal consumption expenditures (PCE) will revert toward 2% by year-end as transitory effects wear off. Correspondingly, faster wage growth in the U.K. and euro area point to higher core inflation. Overall, more dovish global central banks should foster economic growth and “sustain the cycle.” With that said, valuations look fair and the threshold for policy missteps are high.

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.