UCITS Funds

Payden Global Inflation-Linked Bond Fund (PRGILBU ID)

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

The purpose of the Global Inflation-Linked Bond Fund is to provide investors with the diversification benefit of holding global inflation-linked securities (GILS) as a portion of their overall fixed-income allocation. Inflation-linked securities protect investors from unforeseen jumps in global inflation as the fund’s holdings accrue actual inflation while also earning a real yield. The fund’s benchmark, the G-7 Barclays Global Inflation-Linked Index, is composed exclusively of government securities issued by G-7 countries and 100% of the fund’s holdings are government-issued debt. Currency-hedged and currency-exposed share classes are available. As investors may use this fund as a form of inflation insurance within their overall portfolio, the fund will not hold any non-government issued debt to ensure returns remain consistent with a global inflation-linked product.

Fund Snapshot
Fund Inception Date Aug 10, 2009
Share Class Inception Date Aug 10, 2009
Ticker PRGILBU ID
ISIN Number IE00B41T6832
Sedol Number B41T683
Fund Total Net Assets $108.7 million
Benchmark BLOOMBERG BARCLAYS WORLD GOVERNMENT INFLATION-LINKED G7 BOND INDEX USD HEDGED
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee 0.25%
Total Expense Ratio 0.30%
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 Aug 10, 2009
Share Class Inception Date Aug 10, 2009
Total Net Assets $108.7 million
Average Duration 12.1 years
Average Maturity 13.1 years
Yield to Maturity (hedged) 0.1%
Maturity Breakdown
Years Percent of Portfolio
0-18%
1-317%
3-53%
5-721%
7-1012%
10+39%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA58%
AA36%
BBB6%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Inflation-Linked Government Bonds97%
Money Markets3%
Total 100%
Country Breakdown
Country Percent of Portfolio
United States52.0%
United Kingdom29.0%
France8.0%
Italy6.0%
Germany3.0%
Canada2.0%

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 (12/31/2019) 8.26% 8.26% 3.51% 3.82% 4.14% 4.41%
Month-end (12/31/2019) 8.26% 8.26% 3.51% 3.82% 4.14% 4.41%
Yearly Returns
20198.26%
2018-0.52%
20172.99%
201610.02%
2015-1.16%
20148.46%
2013-6.00%
20125.04%
201110.49%
20105.11%
Expenses
Management Fee 0.25%
Total Expense Ratio 0.30%

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
Last month began with a flurry of economic data and headlines, filled with yet another engendering wave of trade rhetoric. The start of the month was met with President Trump reinstating levies on steel and aluminum imports from South America; threatening further tariffs on European countries, whilst alluding to a delay in trade negotiations between China. However, a more positive trade stance later in the month, saw US equities reach record highs as the S&P 500 pushed past 3200 for the first time in its history. This came off the back of better-than-expected manufacturing and housing data, combined with further ‘Phase 1’ trade talks between the US and China; staving off the scheduled December 15th tariff hike by the US, amid China’s agreement to purchase more American farm goods.
Elsewhere, Brexit developments continued to be under the spotlight after Boris Johnson and the Conservative Party won the UK General Election. A strong Tory majority allowed some short-term certainty with regards to the Brexit path, as Boris Johnson is set to publish the withdrawal legislation with the aim of getting it passed through parliament before the new Brexit deadline set for the 31st January 2020.
Overall, global economic indicators were skewed to the upside, as waning recession fears allowed the 10-year US Treasury yield to reached highs of 1.92% over the month. US dollar-denominated investment-grade corporates outperforming their euro and sterling counterparts; although all three markets posted robust positive excess returns. The inflation-linked universe of bonds underperformed their conventional counterparts.

OUTLOOK
With a series of balanced remarks following the Federal Reserve’s most recent rate cut; accentuating the likelihood of an extended period of monetary policy neutrality, we believe the hurdle to cut rates in 2020 is high.
Despite relatively strong economic data releases for the US, we believe that a protectionist attitude from the US administration and a current account deficit will weigh modestly on the US dollar.
Although the ability for Lagarde to further utilise expansionary monetary policy to stem eurozone economic slowdown is limited, we believe that investor sentiment towards the eurozone is overly pessimistic. If economic weakness in certain countries continues to persist, we believe the chances of fiscal loosening implementation in 2020, is high.
Given the new conservative majority following the UK general elections we believe the scope for sterling corporates to perform well in the medium term, is now higher. However, the political situation remains fluid and volatility in UK asset classes is likely to remain more elevated relative to peers.

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.