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 May 2025
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 $885.3 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 May 2025
Fund Inception Date May 26, 2016
Share Class Inception Date Jul 14, 2008
Total Net Assets $885.3 million
Average Duration 6.6 years
Average Maturity 8.4 years
Yield to Maturity (hedged) 4.44%
Maturity Breakdown
Years Percent of Portfolio
0-18%
1-321%
3-519%
5-716%
7-1010%
10+26%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA11%
AA54%
A29%
BBB6%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Government/Gov't Related93%
Money Markets7%
Total 100%
Country Breakdown
Country Percent of Portfolio
US45.0%
Euroland27.0%
Japan10.0%
China8.0%
UK5.0%
Canada2.0%
Australia1.0%
Scandinavia1.0%
Other1.0%

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 (3/31/2025) 0.76% 2.98% -0.76% -1.64% 0.51% 2.31%
Month-end (5/31/2025) 1.38% 4.90% 0.66% -1.62% 0.71% 2.32%
Yearly Returns
20241.82%
20235.13%
2022-13.75%
2021-2.52%
20205.45%
20195.54%
20180.83%
20170.81%
20163.22%
20151.57%
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 May 2025

MARKET
May 2025 delivered a strong performance for most financial assets, as improved economic data and a de-escalation of tensions between the United States and China led investors to discount the likelihood of a global downturn. The S&P 500 Index posted its largest gain in 18 months, whilst credit spreads (the difference in yield between government securities and comparable corporate or other non-government securities) narrowed meaningfully, largely reversing the moves seen during the turmoil following Liberation Day.
Early May in the United States saw markets buoyed by encouraging trade developments, including a United States–United Kingdom trade agreement and signals from President Trump suggesting potential tariff reductions on Chinese goods from 145% to 80%. Markets rallied following better-than-expected April consumer price index (CPI) data of 2.3% year-on-year. However, sentiment weakened in the final weeks as fiscal concerns took centre stage. The US House of Representative’s narrow passage of a tax bill extending Trump-era cuts and raising the debt ceiling by almost $4 trillion sent shockwaves through bond markets, whilst Moody’s credit rating downgrade of the United States reminded investors of the challenging fiscal and debt position of the country. The 30-year US Treasury yield spiked to 5.15% intraday, levels not seen since 2007, before moderating as the month progressed. Investors initially felt relief after a US court blocked most of Trump’s tariffs, but this quickly faded as the Court of Appeal left the tariffs temporarily in effect whilst considering the case, amid reports that the administration is exploring alternative paths to reimpose tariffs. The S&P 500 finished the month up 6.15%, whilst the 10-year US Treasury yield ended the month at 4.40%.
European markets saw further weakness in sentiment and economic activity. The month began positively with robust UK gross domestic product (GDP) growth of 0.7% quarter-on-quarter, driven by strong services performance and investment growth ahead of expected tariff changes. However, economic momentum began to falter as May progressed, with the euro area’s flash composite purchasing managers’ index (PMI) falling below the 50 threshold for the first time since December. This weakness was broad-based, with Germany, France, and the United Kingdom all reporting PMI readings below 50. UK April inflation surprised to the upside, prompting markets to scale back expectations for Bank of England rate cuts. The Stoxx 600 Index finished up 4.02%, whilst the 10-year German Bund and UK Gilt yields closed at 2.50% and 4.65%, respectively.

OUTLOOK
Global economic uncertainty remains elevated due to ongoing tariff threats and concerns around fiscal policies, particularly in the United States. These factors have weakened consumer and business confidence and have contributed to rising inflation expectations.
Unlike sentiment and other soft indicators, hard economic data, such as income growth, resilient consumer spending, and a healthy labour market suggest underlying economic strength. Outside of the United States, new expansionary fiscal packages in regions like Europe and China have improved growth expectations.
We anticipate below-average economic growth in the near term, with potential challenges that could further slow progress.
Given this backdrop, we aim to distribute risk in our portfolios more evenly across duration and credit. Given our central views, we maintain a preference for higher-quality credit investments, such as investment-grade corporate bonds and AAA-rated securitised assets which offer attractive relative value and diversification benefits. Regionally, we seek to hold balanced exposure to both U.S. dollar and euro-denominated issuers, particularly in corporate sectors, to mitigate currency risk.
From a duration standpoint, we prefer a modestly longer duration, with a focus on the front end of the US Treasury yield curve and select emerging markets. We are adjusting our investment approach to benefit from a steeper yield curve, particularly in the United States and Germany to position for potential economic slowdowns or shifts toward more expansionary fiscal policies. In currencies, we hold a modest underweight position in the US dollar, particularly against currencies like the euro and Japanese yen, whilst keeping overall currency risk limited for now.

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.