UCITS Funds

Payden Global High Yield Bond Fund (PARGLHI ID)

Base Share Class: USD
  • Overview
  • Portfolio Statistics
  • Performance & Expenses
  • Fund Commentary
Investment Strategy

The Payden Global High Yield Bond Fund invests in corporate high-yield bonds, which provide a premium to US Treasury bonds. The fund generally invests in the higher-quality segment of the market and looks for companies with good growth prospects, superior and defensible products and strong management teams.

Fund Snapshot
Fund Inception Date Jul 11, 2001
Share Class Inception Date Jul 11, 2001
Ticker PARGLHI ID
ISIN Number IE0030624831
Sedol Number 3062483
Fund Total Net Assets $12.3 million
Benchmark ICE BOFA BB/B GLOBAL HIGH YIELD CONSTRAINED INDEX (USD HEDGED)
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee 0.60%
Total Expense Ratio 0.75%
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 Jul 11, 2001
Share Class Inception Date Jul 11, 2001
Total Net Assets $12.3 million
Average Duration 3.2 years
Average Maturity 7.8 years
Yield to Maturity (hedged) 5.0%
Duration Breakdown
Years Percent of Portfolio
0-116%
1-316%
3-532%
5-721%
7+15%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
BBB and Above10%
BB41%
B46%
CCC3%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials16%
Communications15%
Consumer Cyclical13%
Financials12%
Energy11%
Government9%
Loans8%
Consumer Non-Cyclical7%
Mortgage Securities6%
Other3%
Total 100%
Country Breakdown
Country Percent of Portfolio
US55.0%
Euroland17.0%
Colombia3.0%
Mexico2.0%
Canada2.0%
Chile2.0%
Brazil2.0%
Mongolia2.0%
Egypt2.0%
Thailand2.0%

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 (9/30/2020) -1.73% 1.24% 3.71% 5.40% 5.50% 5.57%
Month-end (9/30/2020) -1.73% 1.24% 3.71% 5.40% 5.50% 5.57%
Yearly Returns
201916.49%
2018-2.80%
20176.24%
201610.40%
2015-1.49%
20143.18%
20134.41%
201214.74%
20115.12%
201012.28%
Expenses
Management Fee 0.60%
Total Expense Ratio 0.75%

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
The first month of the quarter saw a continuation of themes we saw during the second quarter: strong demand for bonds met with increasing supply. However, the dynamic began to turn as new issuance turned into a gusher in August, while demand began to taper in September, resulting in the first negative monthly return since March.
The ICE BofA BB-B Global High Yield Constrained Index (USD Hedged) returned +3.9% during the quarter, while BB-rated bonds returned +3.8%, B-rated bonds returned +4.0%, and CCC-rated bonds returned +6.3%.
New bonds were issued at historic rates during the third quarter. Despite the slowdown in September, net new issuance of $229.3 billion year-to-date has already surpassed 2013’s record levels.
High yield mutual funds and ETFs saw an inflow of +$10.7 billion during the quarter, bringing YTD inflows to +$39.3 billion.

OUTLOOK
The third quarter delivered another positive return of +3.9% for the ICE BofA Global High Yield BB/B Constrained Index hedged to USD. This positive return came on the heels of the large recovery we saw in the 2nd quarter and has resulted in a positive year to date return of approximately +0.5%.
Most of the quarterly positive momentum came in July and slowly dissipated in August and September as we moved into the fall and the 4th quarter. The main drivers of the slowdown have been an uptick in Covid-19 cases in Europe and the US, growing uncertainty around the upcoming US presidential election, an increase in the HY default rate, and a slowing pace of the economic recovery.
The increase in the default rate coupled with a rise in fallen angels (previously investment grade companies) year to date has continued to upgrade the aggregate quality of the high-yield universe. The companies that have defaulted were for the most part already priced and expected to default so their demise came as no surprise to the market and ended up having a cleansing effect on the market.
The new issue market has also been robust and has provided high yield issuers with an opportunity to further extend maturities and inject liquidity during this uncertain Covid-19 impacted period. A cautiously optimistic view on the market is warranted given this flexibility and upgraded quality of the overall high yield market. However, active management remains paramount in the current environment.

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.