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 $2890.4 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 $2890.4 million
Average Duration 1.8 years
Average Maturity 3.6 years
Yield to Maturity (hedged) 3.0%
Duration Breakdown
Years Percent of Portfolio
0-159%
1-318%
3-520%
5-103%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA22%
AA3%
A12%
BBB25%
BB and Below27%
Unrated11%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Mortgage-Backed Securities27%
Investment Grade Corporates21%
Asset-Backed Securities13%
CMBS11%
Emerging Markets7%
Gov't Related7%
Money Markets4%
High Yield4%
Cash3%
Bank Loans3%
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 (9/30/2019) 5.27% 4.62% 2.87% 2.57% N/A 2.71%
Month-end (10/31/2019) 5.57% 5.04% 2.99% 2.62% N/A 2.72%
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
Markets traded roughly sideways over the month of October, with modest gains across corporate debentures and equities, and modestly negative returns across leveraged loans and select securitized products. In the United States, the Federal Reserve (Fed) cut its target range for the federal funds rate for the third time in three months at October's FOMC meeting. The new range is 1.50-1.75%. The FOMC's economic assessment still cites moderate growth, low unemployment, and 'muted' inflation. In Europe, long-time European Central Bank (ECB) President Mario Draghi retired, passing duties to Christine Lagarde, the former Chairwoman of the IMF. In his parting speech, Draghi reiterated the importance of unity and coordinated fiscal policy in the euro area. Meanwhile, in the United Kingdom, the EU agreed to offer a Brexit extension until January 31, 2020. Finally, in China, signs of macroeconomic improvement emerged as the Caixin manufacturing Purchasing Managers Index (PMI) rose to 51.7 in October from 51.4 in September, the strongest reading since December 2016.
Over the past few months, we have experienced a bifurcation of the high-yield credit market, with higher quality issuers in the asset class performing markedly better than their lower quality counterparts. This bifurcation trickled into the leveraged loan market and further into the collateralized loan obligation (CLO) market during October. AAA-rated CLO drove a modest return of 0.14% over the month, but BB-rated CLO ended the month down 3.21%. We believe this "flight to quality" approach, even in riskier sub-sectors, is a function of the global uncertainty pervading markets currently. Geopolitical headlines have continued to whipsaw markets, with US/China trade negotiations and Brexit talks continually generating market movements. We are cognisant of this uncertainty and have positioned the portfolio conservatively, with liquidity available to deploy if opportunities arise.

OUTLOOK
In the US, despite broad global weakness and a manufacturing slowdown, we learned in August that the US consumer turned in one of the all-time best quarters in Q2 2019. Housing market sentiment has also advanced, although the manufacturing sector remains weak, evidenced by the September manufacturing PMI report coming in at a contractionary level. The Fed cut their policy rate twice over the quarter, a move that appeased investors. Similarly, the ECB Governing Council signaled a willingness to lower their policy rate and acted on that in early September with a 0.10% cut. The Reserve Bank of Australia (RBA) also cut its policy rate 0.25% to support employment growth and inflation. Looking ahead, we think central bank correspondence and action will be dependent on various growth and trade policy scenarios.

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.