UCITS Funds

Payden Global Short Bond Fund (PARISBI ID)

Base Share Class: USD

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

Payden's bond funds aim to outperform passive strategies in both rising and falling interest rate environments. The Payden Global Short Bond Fund invests in a full range of (mostly investment grade) debt securities with a view to outperforming short-dated global governments, whilst at the same time outperforming bank deposits and other money market securities, including money market funds.

Share Class Snapshot - 31 January 2024
Fund Inception Date Jul 22, 1999
Share Class Inception Date Jul 22, 1999
Ticker PARISBI ID
ISIN Number IE0008461414
Sedol Number 0846141
Fund Total Net Assets $503.9 million
Benchmark FTSE World Government Bond 1-3 Year Index USD Hedged
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SEK, SGD, USD
Management Fee 0.30%
Total Expense Ratio 0.35%
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 January 2024
Fund Inception Date Jul 22, 1999
Share Class Inception Date Jul 22, 1999
Total Net Assets $503.9 million
Average Duration 1.9 years
Average Maturity 1.6 years
Yield to Maturity (hedged) 5.15%
Duration Breakdown
Years Percent of Portfolio
0-150%
1-336%
3-511%
5-72%
7+1%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA9%
AA44%
A19%
BBB20%
BB and Below7%
Unrated1%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Governments/Cash58%
Corporates31%
Asset-Backed6%
Other5%
Total 100%
Country Breakdown
Country Percent of Portfolio
United States44.6%
Euroland39.6%
United Kingdom4.4%
Scandinavia1.7%
Canada1.6%
Bermuda1.3%
Mexico1.3%
Switzerland1.0%
Cayman Islands0.9%
Japan0.5%

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 (12/31/2023) 4.64% 4.64% 0.29% 1.46% 1.43% 2.17%
Month-end (1/31/2024) 0.33% 4.17% 0.40% 1.39% 1.45% 2.18%
Yearly Returns
20234.64%
2022-3.37%
2021-0.22%
20202.17%
20194.29%
20180.81%
20172.15%
20161.68%
20151.07%
20141.34%
Expenses
Management Fee 0.30%
Total Expense Ratio 0.35%

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 January 2024

MARKET
It was a mixed start to 2024. Whilst economic data held steady in the US and much of Europe, geopolitical tensions escalated abroad as Houthi rebels attacked commercial ships in the Red Sea, and the US retaliated. Investors experienced broad gains in equities and credit; meanwhile, sovereign bonds struggled as markets priced out chances of central bank first-quarter rate cuts.
January's data reports showed no signs of a slowdown in the US economy, adding to market hopes for a “soft-landing.” Fourth-quarter gross domestic product (GDP) beat expectations once again, growing at an annual rate of 3.3%, and the unemployment rate held steady at 3.7%. On the final day of the month, the Federal Reserve (Fed) officials left the federal funds rate unchanged for the fourth consecutive meeting. In the press conference following, Fed Chairman Jerome Powell stressed that a rate cut as soon as March was unlikely. Against this backdrop, 10-year US Treasury yields rose by 4 basis points (bps), ending the month at 3.91%.
The divergence in US and European economic data persisted into the new year, although the euro area avoided recession in the fourth quarter. As expected, the European Central Bank's (ECB) Governing Council left the key policy rate unchanged. Through the month, markets dialed back chances of an ECB rate cut before March from 65% to 23%. Against this backdrop, European sovereign bond yield movements were more pronounced than moves in the US. Yields on 10-year German Bunds rose by 14 bps, and 10-year UK Gilt yields rose by 26 bps.

OUTLOOK
The global economy is expected to see slower growth in 2024 as the effects of tighter monetary policies are transmitted more vigorously to the real economy. Inflation levels are likely to continue their downward trend towards central bank targets. Against this backdrop, a soft-landing of the economy has emerged as the central case for investors, and the probabilities attributed by investors to other outcomes have come down.
Whilst we agree that the probability of a “soft-landing” scenario has come up lately, we still expect that 2024 is likely to see a high level of volatility as the macro backdrop remains uncertain. Regional divergences have emerged in recent months, with the resilience of the US economy contrasting with an economic slowdown in other parts of the world like the euro area, the UK, and China. We believe these differences are likely to persist over the coming months. Whilst we do expect major central banks to start their rate-cutting cycles in 2024, we expect these cutting cycles might not be as synchronized as markets currently anticipate.
From a credit perspective, we hold a modest overweight to credit sectors with a focus towards less cyclical and more widely traded parts of the universe, such as investment-grade corporate, agency mortgage-backed securities, and high-quality/AAA-rated securitised assets.
In currency space, we hold an overweight to the Japanese yen relative to a basket of other developed-market currencies. We expect the yen to perform well if the Bank of Japan is to further tweak its yield curve control parameters and/or if risks of an economic slowdown grow. We also hold a modest long exposure to some emerging-markets currencies.

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.