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 $98.7 million
Benchmark Bloomberg Barclays World Government Inflation-Linked G7
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 $98.7 million
Average Duration 12.1 years
Average Maturity 13.2 years
Yield to Maturity (hedged) 3.0%
Maturity Breakdown
Years Percent of Portfolio
0-110%
1-316%
3-56%
5-719%
7-1012%
10+37%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA55%
AA39%
BBB6%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Inflation-Linked Government Bonds98%
Money Markets2%
Total 100%
Country Breakdown
Country Percent of Portfolio
United States49.0%
United Kingdom30.0%
France10.0%
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 (3/31/2019) 3.98% 3.47% 4.05% 4.17% N/A 4.32%
Month-end (4/30/2019) 3.87% 4.16% 4.17% 3.92% N/A 4.28%
Yearly Returns
2018-0.52%
20172.99%
201610.02%
2015-1.16%
20148.46%
2013-6.00%
20125.04%
201110.49%
20105.11%
20094.40%
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
At the start of the month, headline US jobs numbers for February came in weaker than expected and the European Central Bank (ECB) revised down their forecast for eurozone growth. As such a bearish tone set into markets and was exacerbated later in the month with the US Federal Reserve (Fed) citing they were unlikely to continue to tighten monetary policy this year and revised down their forecast for growth. In the UK, Theresa May put her deal to parliament not once but twice and despite offering to stand down to get her deal across the line, the deal was rejected both times. Parliament has yet to come to a consensus on a potential way forward to Brexit.
As central banks turned dovish and market participants seemed more concerned about global growth, developed sovereign debt staged a strong rally and yield curves flattened. In the US, the yield curve inverted between the 3-month and 10-year points. Despite this, central banks on hold and possibly a softer approach to Brexit have meant euro, sterling, and US dollar-denominated investment-grade corporate markets all posted positive excess returns on the month. Inflation-linked universe of bonds outperformed their conventional counterparts.

OUTLOOK
Should the labour market remain robust and growth dynamics improve we believe the Fed could still hike rates later in the year.
Despite strong economic prospects for the US economy, we believe that a combination of monetary policy convergence, a protectionist attitude from the US administration and a current account deficit could weigh modestly on the US dollar.
Despite softening eurozone data, we anticipate momentum in the eurozone may pick up later in the year and expect that the ECB could continue to be cautious and accommodative over the foreseeable future. However, given strengths and improvement in the economy, the ECB should be able to remove some of their ultra-accommodative policies faster than currently priced-in.
For now, we believe sentiment toward sterling markets should continue to be subdued by Brexit-related uncertainty.

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.