The Payden Global Aggregate Bond Fund invests in a range of fixed-income instruments across a variety of sectors, maturities, and currencies of denomination with a primary focus on investment-grade securities. The Fund combines top-down and bottom-up views across duration, country, credit, and foreign exchange markets. The Fund is actively managed against the Bloomberg Barclays Global Aggregate Index hedged into the base currency of the investor's chosen share class.
Fund Snapshot - 28 February 2023
Fund Inception Date
May 28, 2021
Share Class Inception Date
May 28, 2021
Ticker
PAGABUA ID
ISIN Number
IE00BMBRV223
Sedol Number
BMBRV22
Fund Total Net Assets
$135.2 million
Benchmark
Bloomberg Global Aggregate Index USD Hedged
Currency Share Classes Available
CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee
0.30%
Total Expense Ratio
0.35%
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 - 28 February 2023
Fund Inception Date
May 28, 2021
Share Class Inception Date
May 28, 2021
Total Net Assets
$135.2 million
Average Duration
6.3 years
Average Maturity
7.8 years
Yield to Maturity (hedged)
5.18%
Duration Breakdown
Years
Percent of Portfolio
0-1
20%
1-3
17%
3-5
18%
5-7
14%
7-10
13%
10+
18%
Total
100%
Credit Breakdown
Credit Quality
Percent of Portfolio
AAA
41%
AA
9%
A
22%
BBB
18%
BB and Below
9%
Unrated
1%
Total
100%
Sector Breakdown
Sector
Percent of Portfolio
Governments/Cash
48%
Corporates
33%
Mortgage-Backed
12%
Asset-Backed
1%
Government Related
1%
Other
5%
Total
100%
Country Breakdown
Country
Percent of Portfolio
United States
53.4%
Euroland
19.8%
Japan
10.1%
United Kingdom
4.2%
Canada
4.1%
Australia
2.0%
Switzerland
1.1%
Mexico
1.1%
Brazil
0.8%
Scandinavia
0.7%
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 (12/31/2022)
-11.58%
-11.58%
N/A
N/A
N/A
-6.94%
Month-end (2/1/2023)
2.50%
-8.00%
N/A
N/A
N/A
-5.21%
Yearly Returns
2022
-11.58%
2021
0.82%
Expenses
Management Fee
0.30%
Total Expense Ratio
0.35%
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 2023
MARKET
After a strong January, markets retraced many of their gains in February as investors grew fearful that inflation would not slow as expected and central banks would need to hold interest rates higher for longer. Equities decreased over the month, with the S&P 500 losing 2.4%, whilst US and European bond yields rose.
In the US, the Federal Reserve (Fed) began the month by slowing the pace of interest rate hikes. The committee increased the benchmark rate by 25 basis points (bps) to 4.75%. As the month progressed, data prints illustrated a strong economy and no signs of inflation easing. The nonfarm payroll headline figure printed much higher than expected at 517,000 (estimated: 188,000); meanwhile, the unemployment rate dropped. US retail sales accelerated by 3.0%, and consumer spending increased last month. To accompany these positive economic prints, the Consumer Price Index (CPI) remained robust, further fuelling the fear of persistent inflation. The combination of this data led investors to speculate that the Fed would need to keep rates higher for longer to fight sticky inflation. The 2-year to 10-year segment of the US Treasury curve reached its most inverted level in 42 years, at -0.89%, and the terminal interest rate priced by markets reached its highest point in the current cycle closing the month at 5.42%.
In Europe, the European Central Bank (ECB) increased interest rates by 50 bps bringing the deposit rate to 2.5%. The hike was as expected, and ECB President Christine Lagarde pre-committed to another 50 bps hike in March. The theme of a growing economy and persistent inflation was also present in Europe during February. Euro area unemployment remained at a record low level of 6.6%, whilst core CPI reached a record high of 5.2%. In the UK, the Bank of England also increased interest rates by 50 bps and dropped previous guidance that they would “respond forcefully” to inflationary pressures. The yield on the 10-year German Bund and UK Gilt increased by 36 bps and 49 bps, respectively, over the month.
OUTLOOK
Recent economic data has led markets to revise down their probabilities of seeing a recession in the very near future. Whilst we agree with this near-term repricing, we expect the global economy to enter a phase of slower growth but still elevated inflation as we progress into 2023, with risks biased to the downside for growth and to the upside for inflation. Although some inflation measures have started to move lower, the pace of deceleration has been slower than expected, and uncertainty around a timely return of inflation towards central banks’ targets is high. We expect policy rate increases to slow going forward but see a need for monetary policy settings to stay in restrictive territory for some time. As major central banks maintain their focus on returning inflation to target and guarding inflation expectations from becoming unanchored, we see risks biased towards an overtightening of monetary conditions, the magnitude of which should influence the depth and length of the upcoming slowdown.
Underlying government bond yields already reflect a large degree of tightening of financial conditions. Against this backdrop of increasing government bond yields, credit spreads have performed relatively well in 2023, moving tighter year-to-date. Given these tighter credit valuation levels, our expectations of volatile macroeconomics, and as we approach the end of the economic cycle, we favour a relatively conservative risk posture with a preference towards the higher quality and most liquid part of the fixed-income market. Thematically, we expect 2023 to see a greater level of divergence across regions, with the US economy seemingly better positioned to navigate the turbulences lying ahead whilst the euro area and the UK face greater challenges in terms of real income squeeze and a worse growth/inflation backdrop.
In duration space, we like to start adding some duration in markets where we believe monetary policy expectations might have gone too far, like the US. Although given the level of uncertainty around economic data and the strong momentum that has characterised rates markets in the last 12 months, we favour starting with modest position sizes. We would also like to start legging into steepener positions in some markets, given the latest price action and attractive levels of valuation. We maintain an underweight duration in Japan as we still like the risk-return profile offered by said position ahead of potentially more monetary policy changes from the Bank of Japan.
From a credit perspective, we hold a modest overweight to credit markets with a focus towards less cyclical sectors, lower beta, and highly liquid names. As we approach the end of the cycle and the economy slows, we expect downgrades to tick up in the coming year, highlighting the need for careful security selection. Within emerging-markets and absent positive developments on a potential resolution of the Ukraine/Russia conflict, we still favour issuers that are less exposed to the conflict. Within high yield, we maintain a preference towards shorter-dated and higher-quality securities with a bias towards energy issuers.
In currency space, 2022 saw a strong performance of the US dollar across most other currencies, taking the US dollar to what is generally described as rich valuation levels. Whilst US rates may be approaching the top end of this cycle, and the interest rate differential with other economies might stabilise or narrow going forward, our late-cycle view would still be consistent with a supportive environment for the US dollar. Given the mixed assessment across fundamentals and valuations, we maintain a broadly neutral position in the US dollar at this stage. Our favoured theme in currency is centred around a long Japanese position against higher beta currencies that are usually underperformers in a global economic slowdown.
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.
Payden Mutual Funds PO Box 1611 Milwaukee, WI 53201-1611
Overnight: Payden Mutual Funds 235 W Galena St Milwaukee, WI 53212-3948
Career Opportunities
Payden & Rygel provides superior solutions by employing a staff whose education, experience and vision have made the firm a leader in the field. We welcome the opportunity to speak with talented and motivated individuals who wish to meet this challenge.
If you are interested in a career with Payden & Rygel, please submit your resume to the firm's human resources department at careers@payden.com.
Disaster Recovery and Business Continuity Preperations
Payden & Rygel has developed a Business Continuity Plan to ensure that all critical functions continue in the event of a disruption in normal operations.
The firm has configured data replication servers and related infrastructure in its Boston, Massachusetts office. Data on critical Los Angeles servers is replicated to corresponding servers in the Boston location on a live basis throughout each day. In addition, other servers and databases are backed up, sent electronically to Boston, and restored at the end of each day. The firm has established a dedicated high-speed connection between the Los Angeles and Boston offices to facilitate the secure transmission of data backups.
A number of individuals from the Trading, Portfolio Operations, Information Technology, Compliance and Portfolio Management departments have been selected to connect remotely to the Boston office to complete their daily responsibilities, in the event of a disruption to normal business operations. The firm has implemented a VMWare virtual environment for each of these individuals so that they each have their own remote desktop in Boston to which they securely connect using a laptop or desktop computer with an Internet connection. Our expectation is that routine business operations will resume within 24 hours of a business continuity event. In addition, the Boston office has capacity to accommodate additional employees if a physical relocation of selected Los Angeles employees is necessary.
The firm uses a third-party hosted mass notification system to quickly communicate with all employees in the event of a disruption in operations. The system allows management to compose a text or voice message notifying employees of the event, which is then sent automatically to employees' mobile phones, home phones, and e-mail addresses. Employees indicate their receipt of the message from their phone or mobile device, which allows management to immediately review summary reports of the employees who are aware of the disruption. Additional instructions and updates can then be sent to all staff, as necessary under the circumstances.
In the event that our Business Continuity Plan is activated and Los Angeles office phone lines are down, the Los Angeles phone numbers are re-directed to the Boston office. Boston-based staff will direct callers to the mobile phones of key portfolio professionals, as necessary. All key investment personnel have access to firm e-mail on mobile devices. E-mail delivery to Payden & Rygel addresses is not dependent on the availability of either Los Angeles or Boston servers. Finally, Boston-based staff has access to portfolio management and reporting information independent of Los Angeles technology availability.
The transfer agent for the Paydenfunds is not located in Payden & Rygel's offices. The transfer agent for all of the funds maintains all shareholder records and will continue to receive all shareholder calls related to their accounts.
On at least a quarterly basis, several employees from the departments specified above will remotely connect to the Boston office to test the infrastructure by conducting their daily job responsibilities, including the execution, ticketing, settlement and processing of securities trades.
The Business Continuity Plan was developed and is monitored by a committee of senior managers, including the heads of the Trading, Portfolio Operations, Compliance and Information Technology departments. The committee meets regularly to discuss any necessary updates to the Plan and coordinates ongoing tests of the Boston location by a team of employees from various departments. The committee also solicits feedback from personnel based on the ongoing tests and promptly makes adjustments to the Plan and the Boston office resources, as necessary.
Updates to the Business Continuity Plan will be posted on this website page and a copy of the Plan may also be obtained by written request.
Environmental, Social, and Governance (ESG)
& STEWARDSHIP
To assure that Payden & Rygel meets their fiduciary responsibilities as an investment adviser, we have in place policies and procedures to support our ESG & Stewardship efforts
In addition to our applicable firm wide policies, Payden & Rygel and affiliated companies has been appointed as investment manager/adviser to various EU domiciled collective investment schemes. Payden manages many of these investments so that they can be designated as Article 8 financial products pursuant to the Sustainable Finance Disclosure Regulation (EU 2019/2088). Payden has further been appointed by certain clients under separately managed accounts to manage assets in accordance with SFDR Article 8.
Payden & Rygel respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner and in compliance with applicable legal and regulatory requirements.
Collection of Information
To meet those expectations, we must collect and maintain certain personal information that is required by state and federal agencies, such as name, address and tax ID. We may collect or capture nonpublic information about you from the following sources:
Client onboarding forms;
Oral conversations or written correspondence between you and your Payden & Rygel representatives; and
Electronic sources, such as our Web site, or E-Mails.
Payden & Rygel clients have the right to: (i) be informed, at or before the point of collection, of the categories of personal information to be collected and the purposes for which the categories of personal information shall be used; and (ii) be informed of (a) the categories of personal information Payden & Rygel has collected about them; (b) the specific pieces of personal information Payden & Rygel has collected about them; (c) the categories of sources from which Payden & Rygel has collected the personal information; (d) the business or commercial purpose for collecting the personal information; and (e) the categories of third parties with whom Payden & Rygel share personal information about any client.
Disclosure of information
We do not disclose any nonpublic personal and account information about our clients, or former clients, to anyone, except as permitted by law.
In this regard, we may disclose such information to our affiliates, including Payden & Rygel Global Limited; Treasury Plus, Inc.; and Payden & Rygel Distributors. We also may disclose such information to unaffiliated third parties who are service providers to Payden & Rygel, such as broker-dealers, transfer agents or custodians. In each case, such disclosure is permitted by law, and the recipients are permitted to use it only as needed to provide agreed services to you. Finally, we may also disclose information to appropriate government agencies, and to others, as required by law or to prevent fraud.
We do not sell personal information collected, nor make that personal information available on-line. To change your personal information, call Payden & Rygel at (213) 625-1900 and request to speak to your Payden & Rygel representative.
Internal access to information and safeguards
We limit access to your personal and account information to those employees who need to know that information so that we can provide products and services to you. We also maintain physical, electronic and procedural safeguards to protect your nonpublic personal and account information. Finally, when we dispose of such information, we have in place policies and procedures to assure that such information is properly stored and shredded in the case of documentary material and erased in the case of electronic media so that in either case the information cannot be practicably read or reconstructed.
As required by U.S. federal law, Payden & Rygel will update this information at least annually.
This website is for information purposes only. It is not intended to be a solicitation, offering or recommendation of any security, investment management service or investment advisory service. Nor does Payden & Rygel intend to provide investment, tax or legal advice through this website. In particular, Payden & Rygel does not represent that the securities, products or services discussed on this website are suitable or appropriate for all investors.
The information on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Payden & Rygel to any registration requirement within such jurisdiction or country.
The reliability and accuracy of the material on this website cannot be assured because of possible technical malfunctions and unauthorized tampering. In addition, the material on this website, including any opinions expressed herein, is subject to change without notice. Past performance is not a guarantee of future results.
No part of this website may be reproduced in any of form, or referred to in any other publication without the express written consent of Payden & Rygel. Any links to other Internet sites ("hyperlinks") are included only as a convenience for visitors to this website. Payden & Rygel assumes no liability for the content or presentation of such hyperlink sites.
Legal Disclaimer
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
The Funds respect your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner and in compliance with applicable legal and regulatory requirements.
Collection of Information
To meet those expectations, we must collect and maintain certain personal information that is required by state and federal agencies, such as name, address and tax ID. We may collect or capture nonpublic information about you from the following sources:
The Fund application, or other forms;
Oral conversations or written correspondence between you and our representatives;
Your transactions with us; and
Electronic sources, such as our Web site, or E-Mails.
Payden & Rygel clients have the right to: (i) be informed, at or before the point of collection, of the categories of personal information to be collected and the purposes for which the categories of personal information shall be used; and (ii) be informed of (a) the categories of personal information Payden & Rygel has collected about them; (b) the specific pieces of personal information Payden & Rygel has collected about them; (c) the categories of sources from which Payden & Rygel has collected the personal information; (d) the business or commercial purpose for collecting the personal information; and (e) the categories of third parties with whom Payden & Rygel share personal information.
Disclosure of Information
We do not disclose any nonpublic personal and account information about our customers, or former customers, to anyone, except as permitted by law.
In this regard, we may disclose such information to our affiliates, including the Funds’ investment adviser, Payden & Rygel; administrator, Treasury Plus, Inc.; and distributor, Payden & Rygel Distributors. We also may disclose such information to unaffiliated third parties who are service providers to you or to the Funds, such as broker-dealers, transfer agents, custodians, or our mail processing firm. In each case, such disclosure is permitted by law, and the recipients are permitted to use it only as needed to provide agreed services to you. Finally, we may also disclose information to appropriate government agencies, and to others, as required by law or to prevent fraud.
We do not sell personal information collected, nor make that personal information available on-line. To change your personal information, call Paydenfund Shareholder Services at 800-572-9366 and request the forms necessary to make any such changes.
Internal Access to Information and Safeguards
We limit access to your personal and account information to those employees who need to know that information so that we can provide products and services to you. We also maintain physical, electronic and procedural safeguards to protect your nonpublic personal and account information. Finally, when we dispose of such information, we have in place policies and procedures to assure that such information is properly stored and shredded in the case of documentary material and erased in the case of electronic media so that in either case the information cannot be practicably read or reconstructed.
As required by U.S. federal law, Payden & Rygel will update this information at least annually.