UCITS Funds

Payden Global Government Bond Index Fund (PGVBISD ID)

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

The Payden & Rygel approach to index replication centers on picking appropriate bonds to represent key risks. We assess the trade-off between constructing a portfolio of bonds which track the benchmark, whilst also limiting the number of securities owned to control transaction costs, to maintain liquidity and at the margin, to reflect relative value. We use statistical and qualitative analysis to find the appropriate balance between minimizing tracking error and boosting returns. Ultimately, we strive to match the return of the benchmark with no deliberate performance drift relative to that benchmark.

Fund Snapshot
Fund Inception Date May 26, 2016
Share Class Inception Date Jul 14, 2008
Ticker PGVBISD ID
ISIN Number IE00B2QPHQ75
Sedol Number B2QPHQ7
Fund Total Net Assets $123.2 million
Benchmark FTSE WORLD GOVERNMENT BOND INDEX USD HEDGED
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee 0.15%
Total Expense Ratio 0.20%
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 May 26, 2016
Share Class Inception Date Jul 14, 2008
Total Net Assets $123.2 million
Average Duration 8.3 years
Average Maturity 10.3 years
Yield to Maturity (hedged) 0.9%
Maturity Breakdown
Years Percent of Portfolio
0-13%
1-316%
3-523%
5-712%
7-1014%
10+32%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA50%
AA17%
A25%
BBB8%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Government/Gov't Related99%
Money Markets1%
Total 100%
Country Breakdown
Country Percent of Portfolio
US38.0%
Euroland31.0%
Japan18.0%
UK6.0%
Scandinavia2.0%
Australia2.0%
Mexico1.0%
Canada1.0%
Singapore1.0%

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 (9/30/2019) 7.49% 9.50% 1.94% 3.30% 3.55% 4.04%
Month-end (10/31/2019) 6.88% 9.03% 2.28% 3.05% 3.50% 3.96%
Yearly Returns
20180.83%
20170.81%
20163.22%
20151.57%
20148.51%
20130.08%
20124.39%
20115.82%
20103.42%
20090.93%
Expenses
Management Fee 0.15%
Total Expense Ratio 0.20%

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
Last month began with a string of disappointing economic data which, coupled with continuing trade tensions, perpetuated market participant fears of a global economic slowdown. Such fears were heightened as the IMF's steering committee downgraded its 2019 global growth outlook for the fifth time. Incongruously, investor sentiment quickly improved as extended negotiations between US and Chinese officials highlighted their willingness to progress towards a "phase one" trade deal. This did little to stop another rate cut by the Federal Reserve (Fed), however, as they cited economic growth and inflationary targets as the reasoning behind their expansionary monetary policy.
Elsewhere, Brexit developments were under the spotlight after a meaningful vote on Johnson's deal was deferred, with the UK Parliament refusing to fast-track the process ahead of the October 31st deadline. Although this led to a new January 31, 2020, Brexit extension deadline being granted by the EU, with a general election scheduled for the 12th of December. The likelihood of a no-deal Brexit remains low, providing an opportunity for the pound to extend its gains.
In this environment, developed sovereign debt yields ended the month higher having retraced their lows from the beginning of the month. Risk markets were buoyed by improving investor sentiment as the month progressed, with US dollar-denominated investment-grade corporates outperforming their euro and sterling counterparts. The fund underperformed by 4 basis points net of fees with the global government bond universe.

OUTLOOK
We believe that balanced remarks following the Fed's most recent rate cut marks the start of an extended period of monetary policy neutrality; with Powell stating the US economy is in a 'good place' and that the hurdle to cut rates further, is high.
Despite relatively strong economic data releases for the US, we expect that a protectionist attitude from the US administration and a current account deficit may weigh modestly on the US dollar.
Although the ability for Lagarde to further utilise expansionary monetary policy to stem the eurozone economic slowdown is limited, we believe that investor sentiment towards the eurozone is overly pessimistic. If economic weakness in certain countries continues to persist, we expect the chances of fiscal loosening being implemented could be high.
For now, we believe sentiment toward sterling markets will continue to be subdued by Brexit related uncertainty.

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.