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 $106.2 million
Benchmark FTSE WORLD GOVERNMENT BOND INDEX GBP 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 $106.2 million
Average Duration 8.6 years
Average Maturity 10.6 years
Yield to Maturity (hedged) 0.4%
Maturity Breakdown
Years Percent of Portfolio
0-18%
1-36%
3-527%
5-79%
7-1014%
10+36%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA48%
AA19%
A24%
BBB9%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Government/Gov't Related97%
Money Markets3%
Total 100%
Country Breakdown
Country Percent of Portfolio
Euroland35.0%
US33.0%
Japan19.0%
UK6.0%
Scandinavia2.0%
Australia2.0%
Canada1.0%
Mexico1.0%
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 (6/30/2020) 4.68% 5.49% 3.88% 3.41% 3.50% 4.02%
Month-end (7/31/2020) 5.61% 5.75% 4.15% 3.33% 3.53% 4.07%
Yearly Returns
20195.54%
20180.83%
20170.81%
20163.22%
20151.57%
20148.51%
20130.08%
20124.39%
20115.82%
20103.42%
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
June started with a positive market tone as risk appetite continued to be supported by economic stimulus measures. However, a pick-up in global COVID-19 cases caused investor sentiment to wane, as participants questioned the impact of a potential second wave of Coronavirus cases.
The US Federal Reserve pledged to buy US corporate bonds for the first time through their secondary market corporate credit facility in June, with Jerome Powell urging congress not to pull back on essential relief measures too soon. This was followed by a pickup in economic data figures, as US jobless claims surprised to the upside. However, investors remained wary of Coronavirus developments, with a pickup in cases amongst several US states, along with countries such as Iran and China also seeing spikes. Market sentiment was marginally buoyed as China agreed to purchase more US farm goods in accordance with the Phase 1 trade agreement; slightly easing the build-up of tension between the two countries. Given this multifarious market tone, 10-year US Treasury yields slightly fell by 3 basis points over the course of the month, to 0.62%.
In Europe, the European Central Bank announced a €600 billion increase in the Pandemic Emergency Purchase Programme, with an extension to June 2021. Angela Merkel’s coalition also agreed to a €130 billion stimulus package to support the German economy, with measures including VAT cuts and spending on infrastructure. Elsewhere, the Bank of England announced a £100 billion increase to their quantitative easing programme over the next 4.5 months; arguably a less dovish stance than expected, especially given the Brexit no-deal December deadline fast approaching.
In commodities space, oil prices continued to recover as the likelihood of an extension of crude output cuts increased, with talks that Saudi Arabia and Russia reportedly reached a tentative deal with Iraq.

OUTLOOK
Central banks and governments’ actions have been the primary support of risk assets. While this positive technical backdrop is likely to continue soon, we believe that the gap between risk asset prices and the fundamental picture warrants some cautiousness. Given the recent spike in Coronavirus cases and the halting of phased economic reopening in some areas, we see a considerable amount of uncertainty hovering over markets and global growth. The focus would remain on the chances of a second wave of infections, along with continuing vaccine progress.
Against this backdrop, we favour overweight positions in credit markets but with a focus on sectors targeted by central banks. We prefer to maintain a modestly defensive tilt in sub-sectoral allocations and issuer selection, with a bias towards less cyclical sectors and securities that we expect are better positioned to navigate turbulent waters. We keep a light positioning duration management with a bias towards relative country and curve trades that are less sensitive to broader market directionality. In currency space, we favour long, albeit modest, bias in the euro supported by more favourable interest differentials, contained risks at the periphery and positive political/fiscal developments at the regional level.

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.