UCITS Funds

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

The Payden Euro Liquidity Fund seeks to outperform current money market funds by utilizing investment-grade short-term securities. The fund is primarily comprised of euro government securities, investment-grade corporate bonds. The average duration of the fund is generally kept below one year.

Fund Snapshot - 28 February 2022
Fund Inception Date Jun 29, 2007
Share Class Inception Date
Ticker
ISIN Number
Sedol Number
Fund Total Net Assets €0.2 million
Benchmark
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee
Total Expense Ratio
Investment Minimum

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 - 28 February 2022
Fund Inception Date Jun 29, 2007
Share Class Inception Date
Total Net Assets €0.2 million
Average Duration 0.2 years
Average Maturity 0.2 years
Duration Breakdown
Years Percent of Portfolio
0-1100%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA56%
AA44%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Money Markets100%
Total 100%
Country Breakdown
Country Percent of Portfolio
Euroland100.0%

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 ()
Month-end ()
Yearly Returns
Expenses
Management Fee
Total Expense Ratio

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 - 28 February 2022

MARKET
Last month was a month of two halves for market sentiment. There was a risk-on environment during the first half of the month followed by a risk-off environment.
In the first half of February, investors continued to focus on the inflationary and monetary policy tightening theme. This was due to high inflation figures and the higher probability of a more aggressive monetary policy tightening cycle than anticipated by central banks including the US Federal Reserve (“Fed”). This triggered yields to increase across the global rates space and pushed equities higher. The Bank of England (“BoE”) hiked rates by 25 basis points (“bps”) to 0.50% with four out of the nine-member panel pushing for a 50bps increase. The US experienced its fastest pace of inflation in 40 years, with headline inflation reaching 7.5% year-on-year in January. This put further pressure on the Fed, with the swap market pricing in 7 rate hikes for the year, at the time. This caused the US Treasury 10-year yield increase to reach 2% for the first time since August 2019.
However, in the second half of the month, markets attention turned to the geopolitical tensions between Russia and Ukraine. Despite efforts to find a diplomatic resolution to the conflicts, Russia launched military action in Ukraine, invading various regions across the country. In response, Western leaders announced significant sanctions against Russia, and fears of further escalations rose meaningfully. Risk sentiment fell over that period with investors typically moving away from risk assets in favour of safer, higher-quality securities. As a result, global bond yields fell in the second half of February, with the 10-year US Treasury yield declining by 22bps from its monthly high, ending the month yielding 1.83%. Oil and other commodities prices rallied, with crude oil reaching its highest price since 2014, at just over $100 per barrel. Equities erased their earlier gains and finished the month in negative territory, with the S&P 500 down 4% and the EuroStoxx 600 down 5%.

OUTLOOK
The conflict between Russia and Ukraine is increasing the level of uncertainty around our central expectations. In addition to the regrettable humanitarian consequences, the conflict poses near-term and potentially longer-term threats which can alter the economic outlook. For the time being, we broadly maintain our thematic fundamental views on the global economy but acknowledge that risks to our economic growth forecasts are tilted to the downside, especially for the euro area. Higher energy costs and further supply disruptions are adding upwards pressures on inflation, complicating the trade-off between growth and inflation that central bankers have been facing.
Overall, we expect that the need for ultra-loose monetary policy settings has significantly lessened. With inflation at elevated levels and surprising to the upside, combined with strong and improving labour markets, most developed central banks have now announced their intentions to remove monetary accommodation. Overall, we expect market volatility to stay at elevated levels as inflation remains stubbornly high and as global central banks pivot to a much less accommodative stance. Higher inflationary pressures due to the conflict in Russia/Ukraine are likely to reinforce the need for higher monetary rates, especially in the US, although at this stage we do not expect the path of normalisation to accelerate relative to our pre-conflict expectations.
From a duration perspective, we favour holding underweight positions in anticipation of some further yield increases around the world. Where possible, we prefer expressing this view by being underweight of real yields, where we see a more attractive risk/reward potential.
In credit markets, we continue to favour keeping portfolios with an overall overweight tilt, albeit lower than in the last 12 months and with a more selective stance. We maintain the view that excess returns should be primarily driven by carry, partially offset by modest spread widening pressures. We believe the risk to reward payoffs are better in securitised, developed, high-yield corporates and hard currency emerging-market sectors, especially given the lower interest rate sensitivity in the high-yield corporate and securitised markets. We hold a neutral-to-underweight stance on investment-grade corporates and keep an underweight position in agency mortgage-backed securities. Given the uncertainty around the Central and Eastern European region, we prefer to keep our exposure to the region at low levels and are not looking to add risk for the time being.
In currency space, we think monetary policy divergences are likely to be one of the key drivers of returns in the next few months. However, in the near term, higher global risk aversion is likely to be the main driver of currency performance. Over the longer run, we favour long positions in currencies of economies where we see the risk of more monetary policy tightening being under-priced.

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.