UCITS Funds

Payden Global Government Bond Index Fund (PGVBISD ID)

Base Share Class: GBP

Share Class
  • 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 that 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.

Share Class Snapshot - 31 August 2023
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 $438.2 million
Benchmark FTSE World Government Bond Index GBP Hedged
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee 0.12%
Total Expense Ratio 0.15%
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 - 31 August 2023
Fund Inception Date May 26, 2016
Share Class Inception Date Jul 14, 2008
Total Net Assets $438.2 million
Average Duration 7.3 years
Average Maturity 9.1 years
Yield to Maturity (hedged) 4.73%
Maturity Breakdown
Years Percent of Portfolio
0-116%
1-321%
3-515%
5-716%
7-1012%
10+20%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA15%
AA61%
A18%
BBB6%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Government/Gov't Related96%
Money Markets4%
Total 100%
Country Breakdown
Country Percent of Portfolio
US46.0%
Euroland31.0%
Japan14.0%
UK5.0%
Canada2.0%
Australia1.0%
Scandinavia1.0%

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 (6/30/2023) 2.22% -2.66% -4.69% -0.70% 1.10% 2.22%
Month-end (8/31/2023) 1.68% -2.25% -4.79% -0.74% 1.04% 2.15%
Yearly Returns
2022-13.75%
2021-2.52%
20205.45%
20195.54%
20180.83%
20170.81%
20163.22%
20151.57%
20148.51%
20130.08%
Expenses
Management Fee 0.12%
Total Expense Ratio 0.15%

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 - 31 August 2023

MARKET
Risk assets lost ground in August as the global economy showed signs of weakness, and investors feared interest rates would stay higher for longer. US, European, and Asian equities suffered a blow, meanwhile, credit yields rose.
The month began with Fitch, one of the three major rating agencies, downgrading US government debt from a AAA to AA+ rating, citing recession concerns, high national debt, and repeated political debt ceiling standoffs. Debt sustainability fears sparked by this decision, coupled with skepticism around the narrative that the Federal Reserve will cut interest rates anytime soon, drove 10-year yields to their highest levels since 2008. Against this backdrop, the S&P500 suffered its worst month since February, and 10-year US Treasury yields rose 15 basis points (bps) higher to end the month at 4.11%.
In Europe, the economy showed further signs of weakening in August. The euro area composite Purchasing Managers Index (PMI) fell to 47 (expected: 48.5). Similarly, the UK composite PMI dipped into contractionary for the first time since January. Additionally, inflation in the country remained well above target in August. UK wage data showed annual pay up 7.8% over the three months ending in June; meanwhile, inflation data came in slightly above expectations at 6.9% year-on-year (expected: 6.8%). Against this backdrop, yields on 10-year German Bund yields fell by 3 bps, whilst 10-year UK Gilt yields rose by 5 bps.

OUTLOOK
The global economy may avoid a recession in 2023, but we believe that risks of an economic slowdown/recession have been pushed back rather than gone away. In our view, economic headwinds seen in Europe and China over the last few months are likely to persist. In the US, the effects of tighter monetary policies are likely to weigh more heavily on the economy going forward, especially as the positive impact from some of the factors that have supported growth in the recent past lessen. Inflation levels have, for the most part, declined, but they remain higher than central banks’ target. Against this backdrop, we think most major central banks are at or near peak in this current hiking cycle, but the stickiness of inflation will probably require central banks to keep monetary rates in restrictive territory for a sustained period.
From a duration point of view, we are biased towards long-duration and curve-steepener positions in countries we view as advanced in their monetary policy/economic cycle, such as the US, the UK, and some emerging-markets. We hold curve-steepener positions in the US and Europe. We maintain an underweight duration in Japan as we continue to expect the Bank of Japan (BoJ) will further tweak its yield curve control parameters later this year.
From a credit perspective, we hold a modest overweight to credit sectors with a focus toward less cyclical and more widely traded parts of the universe such as investment-grade corporate, agency mortgage-backed securities, and high quality/AAA-rated securitised assets.
In currency space, we hold an overweight to the Japanese yen relative to a basket of other developed market currencies. We expect the yen to perform well if the Bank of Japan is to further tweak its yield curve control parameters and/or risks of an economic slowdown grow. We also hold a modest long exposure to some emerging-markets’ currencies.

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.