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 $3322.4 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 $3322.4 million
Average Duration 1.8 years
Average Maturity 3.2 years
Yield to Maturity (hedged) 2.9%
Duration Breakdown
Years Percent of Portfolio
0-163%
1-318%
3-517%
5+2%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA21%
AA2%
A15%
BBB25%
BB and Below26%
Unrated11%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Mortgage-Backed Securities26%
Investment Grade Corporates20%
Asset-Backed Securities12%
Gov't Related12%
CMBS10%
Emerging Markets7%
High Yield4%
Cash4%
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 (12/31/2019) 5.89% 5.89% 3.05% 2.82% N/A 2.69%
Month-end (12/31/2019) 5.89% 5.89% 3.05% 2.82% N/A 2.69%
Yearly Returns
20195.89%
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
In December, US Treasury yields steepened moderately and equity markets hit all-time highs. The S&P 500 index returned just over 3% and the MSCI World Equity Index returned 2.28%. The Bloomberg US Consumer Comfort Index rose 1.6 points to 63.9, a five-month high heading into 2020. Optimism surrounding a US trade deal with China buoyed markets and generated positive sentiment. President Trump announced he will sign phase one of the deal on January 15, which should reduce US tariffs on Chinese goods whilst boosting Chinese purchases of American farm, energy and manufactured goods.
Credit performed well over the month, with the "risk-on" tone generating stronger returns for lower quality assets than their higher-quality counterparts. In the collateralised loan obligation market, we saw high quality (AAA/AA-rated) assets return 0.37%, while the subordinated assets (A/BBB/BB-rated) rebounded from weakness earlier in the fourth quarter and returned 2.58%. Emerging-market debt and high-yield corporate debt experienced a similar phenomenon, with lower quality issuers outperforming.

OUTLOOK
Looking ahead, we believe that the US economy is in a healthy position, with the US Federal Reserve in easing mode, unemployment and inflation at depressed levels, and a continued strong consumer. We also expect that the global economy may have bottomed out following its recent weakness and is on course for slow growth in 2020. This is not to say that there aren't headwinds ahead. Continued uncertainty surrounding trade, politics, and events (i.e., Brexit) will likely generate volatility. The strategy continues to be well-diversified across asset classes, with elevated liquidity available to be deployed when opportunities present themselves.

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.