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 $2756.5 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 $2756.5 million
Average Duration 1.7 years
Average Maturity 5.0 years
Yield to Maturity (hedged) 4.8%
Duration Breakdown
Years Percent of Portfolio
0-157%
1-319%
3-520%
5+4%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA17%
AA2%
A11%
BBB25%
BB and Below34%
Unrated11%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Mortgage-Backed Securities29%
Investment Grade Corporates19%
Asset-Backed Securities14%
CMBS13%
Emerging Markets9%
Bank Loans9%
High Yield5%
Other2%
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 (12/31/2018) 0.46% 0.46% 2.39% 1.90% N/A 2.13%
Month-end (12/31/2018) 0.46% 0.46% 2.39% 1.90% N/A 2.13%
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 fourth quarter was underscored by rising volatility, declining prices across risk assets, and a persistent flattening (with subtle inversion) of the US yield curve. Specifically, the difference between 2-year US Treasury yields and 5-year yields (2s5s) inverted on December 3rd.
Global yields declined in conjunction with the tone in risk assets and flattening of the US Government yield curve. Notably, 5-year maturity government yields were lower in the US by 0.44%, the UK by 0.26%, Europe by 0.22%, and Australia by 0.33%.
Weak market sentiment and tightening financial conditions caused equities to decline (Global Equities -13%) and risk premium to widen (US high-yield bond risk premium +2%). Oil experienced its worst quarter of performance this year with oil prices dropping 38%.

OUTLOOK
The portfolio remains structured with low interest-rate sensitivity as we continue to invest in a diversified mix of fixed-income sectors including corporate, mortgage-backed and asset-backed securities.
Despite persistently negative headlines and weak tone across risk assets, we believe underlying fundamentals and higher risk premiums are reason for optimism.
We acknowledge the path of global growth has softened, but expect the US economy to remain an anchor for the rest of the world as unemployment remains at its lowest levels since the 1960s and 2019 expectations for US GDP are north of 2%.

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.