UCITS Funds

Payden Global Government Bond Index Fund (PGVBIUA ID)

Base Share Class: USD
  • 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 May 26, 2016
Ticker PGVBIUA ID
ISIN Number IE00B2QPJ058
Sedol Number B2QPJ05
Fund Total Net Assets $157.2 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 May 26, 2016
Total Net Assets $157.2 million
Average Duration 7.6 years
Average Maturity 9.6 years
Yield to Maturity (hedged) 2.9%
Maturity Breakdown
Years Percent of Portfolio
0-15%
1-321%
3-513%
5-714%
7-1017%
10+30%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA48%
AA18%
A25%
BBB9%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Government/Gov't Related97%
Money Markets3%
Total 100%
Country Breakdown
Country Percent of Portfolio
US34.0%
Euroland34.0%
Japan20.0%
UK6.0%
Canada2.0%
Australia2.0%
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 (3/31/2018) 0.52% 2.59% N/A N/A N/A 1.06%
Month-end (4/30/2018) 0.11% 1.51% N/A N/A N/A 0.80%
Yearly Returns
20171.96%
2016-0.51%
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
Protectionism worries descended upon markets as US President Donald Trump announced plans to impose a 25% tariff on steel imports and 10% on aluminium imports. The move subsequently led to the departure of Gary Cohn, top economic adviser to the White House. Risk markets and the Canadian dollar (the biggest exporter of these commodities to the US) faltered as a result. President Trump later made exemptions on the tariff to many traditional ‘allies’. The Federal Reserve made good on a widely expected 25 basis points rate hike and delivered a more hawkish outlook.
Governor Kuroda of the Bank of Japan (BOJ) suggested that 2019 could mark the end of the extraordinary easing measures in Japan subject to conditions on inflation and wage growth being met. GDP growth for the fourth quarter was also revised upward. The yen benefitted from the increased global political turmoil and the hawkish statement by the BOJ.
The outcome of the Italian election saw Italy’s anti-establishment parties make significant gains. However, no one party gained enough votes to form a government, resulting in a hung parliament. Market reaction was relatively muted.
In the UK, a draft of a 21-month Brexit transition period was agreed upon with the EU, a positive result that along with the Bank of England (hinting at a May rate rise) helped the pound to be the strongest performer in G10 space last month. The fund performed in-line with its benchmark.

OUTLOOK
The Japanese economy has shown signs of improving growth and inflation. Policymakers have started to hint at a potential unwinding of easy monetary policy next year should conditions remain favourable. Coupled with good growth dynamics we believe this could inject volatility into Japanese markets.
The Eurozone has continued to show signs of improvement. We believe the European Central Bank (ECB) will continue to be cautious and accommodative over the foreseeable future but we believe that given the strengths and improvement in the economy the ECB should be able to remove some of their ultra-accommodative policies faster than currently priced in.
Despite strong economic prospects for the US economy, we expect that a combination of monetary policy convergence, a protectionist attitude from the US administration and a current account deficit will weigh modestly on the US dollar.

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.