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 $108.5 million
Benchmark CITIGROUP 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 $108.5 million
Average Duration 7.5 years
Average Maturity 9.4 years
Yield to Maturity (hedged) 1.3%
Maturity Breakdown
Years Percent of Portfolio
0-16%
1-327%
3-56%
5-715%
7-1015%
10+31%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA49%
AA17%
A25%
BBB9%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Government/Gov't Related98%
Money Markets2%
Total 100%
Country Breakdown
Country Percent of Portfolio
US35.0%
Euroland34.0%
Japan20.0%
UK6.0%
Canada2.0%
Australia2.0%
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 (6/30/2018) -0.08% 0.56% 1.99% 2.93% N/A 3.71%
Month-end (7/31/2018) -0.43% 0.10% 1.43% 2.80% 3.62% 3.64%
Yearly Returns
20170.81%
20163.22%
20151.57%
20148.51%
20130.08%
20124.39%
20115.82%
20103.42%
20090.93%
20088.73%
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
After the May sell-off in Italian and European assets, the beginning of June offered some respite as the Five Star Movement and the League received approval from President Mattarella to form a government. Despite the volatility, senior members of the European Central Bank (ECB) had a more bullish tone as they felt fundamentals would prevail and inflation progress closer to their target, increasing expectations that the ECB was closer to removing some of their stimulus.
In the US, the Federal Reserve (Fed) delivered on a widely anticipated 25 basis point rate hike in June, citing their improved outlook for the US economy. Risk markets subsequently faltered due to President Trump's threats of US import tariffs of this and political volatility in Europe, which also flattened the longer end of the US Treasury curve.
In the UK, the Bank of England struck a more hawkish tone in June citing progressively less capacity in the economy and leading to a stabilisation in gilt yields and sterling. The fund performed in-line with its benchmark.

OUTLOOK
A robust labour market and stable growth dynamics should allow the Fed to raise rates above market expectations by the end of 2019. However, longer US bond yields may only see a small rise. Even with a strong US economic outlook, we believe that monetary policy convergence, a protectionist attitude, and a current account deficit will weigh modestly on the US dollar.
Despite softer eurozone data earlier in the year, we expect continued momentum and a cautious ECB. However, we expect the ECB will remove some of their ultra-accommodative policies faster than currently priced-in due to growing economic improvement.
The Japanese economy has shown signs of improving growth and inflation. Policymakers have started to hint at a potential unwind of easy monetary policy next year should conditions remain favourable. Coupled with good growth dynamics we believe this could inject volatility into Japanese markets.

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.