The Payden Sterling Reserve Fund seeks to provide capital security, liquidity, and a yield in excess of that offered by money market funds and bank deposits, by investing in a diversified range of sterling-denominated, investment-grade, fixed- and floating-rate securities. The intention is to invest the Fund in a way that is consistent with the maintenance of a AAA rating or equivalent, from one of the major rating agencies.
Share Class Snapshot - 31 August 2024
Fund Inception Date
Nov 16, 2010
Share Class Inception Date
Nov 16, 2010
Ticker
PAYSRSD ID
ISIN Number
IE00B5N7VM10
Sedol Number
B5N7VM1
Fund Total Net Assets
£147.2 million
Benchmark
ICE BofA SONIA Overnight Rate Index
Currency Share Classes Available
CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee
0.12%
Total Expense Ratio
0.18%
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 August 2024
Fund Inception Date
Nov 16, 2010
Share Class Inception Date
Nov 16, 2010
Total Net Assets
£147.2 million
Average Duration
0.9 years
Average Maturity
1.7 years
Yield to Maturity
5.08%
Duration Breakdown
Years
Percent of Portfolio
0-1
65%
1-3
29%
3-5
6%
Total
100%
Credit Breakdown
Credit Quality
Percent of Portfolio
AAA
48%
AA+
8%
AA
5%
AA-
21%
A+
10%
A
5%
A-
2%
BBB+
1%
Total
100%
Sector Breakdown
Sector
Percent of Portfolio
Financial Institutions
24%
UK Gilts
21%
Covered
20%
Government Related
17%
Asset-Backed
7%
Industrials
6%
Mortgage-Backed
5%
Total
100%
Country Breakdown
Country
Percent of Portfolio
UK
40.0%
Euroland
16.0%
Canada
15.0%
US
10.0%
Australia
8.0%
Scandinavia
7.0%
Japan
2.0%
Switzerland
1.0%
Cayman Islands
1.0%
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 (6/30/2024)
2.34%
6.72%
2.18%
1.69%
1.31%
1.31%
Month-end (8/31/2024)
3.47%
6.41%
2.54%
1.85%
1.38%
1.38%
Yearly Returns
2023
5.64%
2022
-1.11%
2021
-0.07%
2020
1.18%
2019
1.42%
2018
0.23%
2017
0.76%
2016
1.36%
2015
0.56%
2014
1.34%
Expenses
Management Fee
0.12%
Total Expense Ratio
0.18%
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 August 2024
MARKET
August 2024 began with significant market volatility, primarily driven by disappointing US employment data. The Chicago Board Options Exchange (CBOE) Volatility Index surged to nearly 65% in early August (from 17% at end July), reflecting heightened investor anxiety as major US stock indices, including the S&P 500 and Nasdaq, experienced sharp declines. This turbulence was exacerbated by the unwinding of leveraged trades and concerns about a potential recession, which resulted in a sell-off that erased approximately $6.4 trillion from global equity markets within the first week. Despite this initial turmoil, markets began to stabilise and recover as the month progressed, highlighting the ongoing uncertainty in the economic landscape.
The US economy demonstrated resilience over August despite initial market volatility. The Conference Board's Consumer Confidence Index rose to a 6-month high of 103.3, countering narratives of a significant economic downturn. Gross domestic product (GDP) growth was revised upward to an annualised rate of 3.0%, indicating a robust year-over-year increase of 3.1%. Notably, the Jackson Hole Economic Symposium became a focal point for economic discussions, with Federal Reserve (Fed) Chairman Jerome Powell signalling a shift in monetary policy towards easing and emphasising the importance of labour market signals. The S&P 500 index showed positive momentum, trading up 2.28% for the month, whilst the 10-year US Treasury yield dipped to 3.90%.
In Europe, economic indicators presented a mixed picture. Initial flash Consumer Price Index (CPI) releases came in weaker than expected, with Germany's CPI falling to 2.0% on the European Union-harmonised measure, its lowest level since March 2021. French consumer confidence ticked up to 92 in August, reaching its highest point since February 2022. Regarding monetary policy, markets expect the European Central Bank (ECB) to initiate a series of rate cuts, with a quarter-point reduction anticipated at its September meeting, reflecting a cautious approach to supporting economic growth whilst managing inflation. Yields on 10-year Bunds and Gilts ended the month at 2.30% and 4.01%, respectively, with the Stoxx 600 Index trading up 1.33% on the month.
OUTLOOK
With signs of inflation moving closer to central banks' targets and some indications of weaker labour markets, investors' attention has shifted from being primarily focussed on elevated inflation to having some concerns around employment and economic growth. Most central banks have now drifted towards the dovish side of the monetary policy spectrum with some central banks starting their cutting cycle and others hinting at a forthcoming start. Meanwhile, markets' expectations of future policy rates have moved lower. Whilst we do believe that the recent weakening in labour market data, particularly in the US, and the moderation in inflation warrant some downwards revisions to our expected policy rates in the US, we still see a "soft landing" as the most probable case for the next six months and we continue to push back against renewed recession calls. In the US, the current rally in US Treasury yields is probably more than would be justified in a "soft landing", reflecting market fears of a recession. Outside of the US, we still believe that global economic trajectories remain divergent. Consequently, we continue to expect the path of monetary policy to diverge. Notably, we expect the Fed to be less dovish than other central banks as US growth remains more resilient than forecasters expect. We still see the Bank of Japan (BoJ) as an outlier and expect more rate hikes going forward.
Overall, we expect the macro and fundamental backdrop to generally remain supportive of risk assets in the second half of the year, consistent with our view. However, we believe macro volatility may stay elevated and with election risks looming in the US, we do not believe current levels of valuations are adequately compensating investors.
From a duration point of view, we are biased towards curve-steepener positions in the US and Europe as well as long positions in the euro area, and some emerging-market (EM) countries. We like to be underweight of duration at the front end of the US as we expect markets are pricing in too many cuts from the Fed. We maintain an underweight duration in Japan as we continue to expect the BoJ to further normalise its monetary policy settings.
From a credit perspective, we maintain an overweight to non-government sectors focusing on less cyclical, lower beta, and more liquid parts of the universe such as investment-grade corporate, agency mortgage-backed securities, and high-quality/AAA-rated securitised assets.
In currency space, we keep our level of risk relatively low with modest long positions in select EM countries and regional cross-currency plays.
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.
Payden Funds PO Box 534496 Pittsburgh, PA 15253-4496
Overnight: Payden Funds Attention: 534496 500 Ross Street 154-0520 Pittsburgh, PA 15262
Career Opportunities
Payden & Rygel provides superior solutions by employing a staff whose education, experience and vision have made the firm a leader in the field. We welcome the opportunity to speak with talented and motivated individuals who wish to meet this challenge.
If you are interested in a career with Payden & Rygel, please submit your resume to the firm's human resources department at careers@payden.com.
Disaster Recovery and Business Continuity Preperations
Payden & Rygel has developed a Business Continuity Plan to ensure that all critical functions continue in the event of a disruption in normal operations.
The firm has configured data replication servers and related infrastructure in its Boston, Massachusetts office. Data on critical Los Angeles servers is replicated to corresponding servers in the Boston location on a live basis throughout each day. In addition, other servers and databases are backed up, sent electronically to Boston, and restored at the end of each day. The firm has established a dedicated high-speed connection between the Los Angeles and Boston offices to facilitate the secure transmission of data backups.
A number of individuals from the Trading, Portfolio Operations, Information Technology, Compliance and Portfolio Management departments have been selected to connect remotely to the Boston office to complete their daily responsibilities, in the event of a disruption to normal business operations. The firm has implemented a VMWare virtual environment for each of these individuals so that they each have their own remote desktop in Boston to which they securely connect using a laptop or desktop computer with an Internet connection. Our expectation is that routine business operations will resume within 24 hours of a business continuity event. In addition, the Boston office has capacity to accommodate additional employees if a physical relocation of selected Los Angeles employees is necessary.
The firm uses a third-party hosted mass notification system to quickly communicate with all employees in the event of a disruption in operations. The system allows management to compose a text or voice message notifying employees of the event, which is then sent automatically to employees' mobile phones, home phones, and e-mail addresses. Employees indicate their receipt of the message from their phone or mobile device, which allows management to immediately review summary reports of the employees who are aware of the disruption. Additional instructions and updates can then be sent to all staff, as necessary under the circumstances.
In the event that our Business Continuity Plan is activated and Los Angeles office phone lines are down, the Los Angeles phone numbers are re-directed to the Boston office. Boston-based staff will direct callers to the mobile phones of key portfolio professionals, as necessary. All key investment personnel have access to firm e-mail on mobile devices. E-mail delivery to Payden & Rygel addresses is not dependent on the availability of either Los Angeles or Boston servers. Finally, Boston-based staff has access to portfolio management and reporting information independent of Los Angeles technology availability.
The transfer agent for the Payden Funds is not located in Payden & Rygel's offices. The transfer agent for all of the funds maintains all shareholder records and will continue to receive all shareholder calls related to their accounts.
On at least a quarterly basis, several employees from the departments specified above will remotely connect to the Boston office to test the infrastructure by conducting their daily job responsibilities, including the execution, ticketing, settlement and processing of securities trades.
The Business Continuity Plan was developed and is monitored by a committee of senior managers, including the heads of the Trading, Portfolio Operations, Compliance and Information Technology departments. The committee meets regularly to discuss any necessary updates to the Plan and coordinates ongoing tests of the Boston location by a team of employees from various departments. The committee also solicits feedback from personnel based on the ongoing tests and promptly makes adjustments to the Plan and the Boston office resources, as necessary.
Updates to the Business Continuity Plan will be posted on this website page and a copy of the Plan may also be obtained by written request.
Environmental, Social, and Governance (ESG)
& STEWARDSHIP
To assure that Payden & Rygel meets their fiduciary responsibilities as an investment adviser, we have in place policies and procedures to support our ESG & Stewardship efforts
In addition to our applicable firm wide policies, Payden & Rygel and affiliated companies have been appointed as investment manager/adviser to various EU domiciled collective investment schemes. Payden manages many of these investments so that they can be designated as Article 8 financial products pursuant to the Sustainable Finance Disclosure Regulation (EU 2019/2088). Payden has further been appointed by certain clients under separately managed accounts to manage assets in accordance with SFDR Article 8.
Payden & Rygel respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner and in compliance with applicable legal and regulatory requirements.
Collection of Information
To meet those expectations, we must collect and maintain certain personal information that is required by state and federal agencies, such as name, address and tax ID. We may collect or capture nonpublic information about you from the following sources:
Client onboarding forms;
Oral conversations or written correspondence between you and your Payden & Rygel representatives; and
Electronic sources, such as our Web site, or E-Mails.
Payden & Rygel clients have the right to: (i) be informed, at or before the point of collection, of the categories of personal information to be collected and the purposes for which the categories of personal information shall be used; and (ii) be informed of (a) the categories of personal information Payden & Rygel has collected about them; (b) the specific pieces of personal information Payden & Rygel has collected about them; (c) the categories of sources from which Payden & Rygel has collected the personal information; (d) the business or commercial purpose for collecting the personal information; and (e) the categories of third parties with whom Payden & Rygel share personal information about any client.
Disclosure of information
We do not disclose any nonpublic personal and account information about our clients, or former clients, to anyone, except as permitted by law.
In this regard, we may disclose such information to our affiliates, including Payden & Rygel Global Limited; Treasury Plus, Inc.; and Payden & Rygel Distributors. We also may disclose such information to unaffiliated third parties who are service providers to Payden & Rygel, such as broker-dealers, transfer agents or custodians. In each case, such disclosure is permitted by law, and the recipients are permitted to use it only as needed to provide agreed services to you. Finally, we may also disclose information to appropriate government agencies, and to others, as required by law or to prevent fraud.
We do not sell personal information collected, nor make that personal information available on-line. To change your personal information, call Payden & Rygel at (213) 625-1900 and request to speak to your Payden & Rygel representative.
Internal access to information and safeguards
We limit access to your personal and account information to those employees who need to know that information so that we can provide products and services to you. We also maintain physical, electronic and procedural safeguards to protect your nonpublic personal and account information. Finally, when we dispose of such information, we have in place policies and procedures to assure that such information is properly stored and shredded in the case of documentary material and erased in the case of electronic media so that in either case the information cannot be practicably read or reconstructed.
As required by U.S. federal law, Payden & Rygel will update this information at least annually.
This website is for information purposes only. It is not intended to be a solicitation, offering or recommendation of any security, investment management service or investment advisory service. Nor does Payden & Rygel intend to provide investment, tax or legal advice through this website. In particular, Payden & Rygel does not represent that the securities, products or services discussed on this website are suitable or appropriate for all investors.
The information on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Payden & Rygel to any registration requirement within such jurisdiction or country.
The reliability and accuracy of the material on this website cannot be assured because of possible technical malfunctions and unauthorized tampering. In addition, the material on this website, including any opinions expressed herein, is subject to change without notice. Past performance is not a guarantee of future results.
No part of this website may be reproduced in any of form, or referred to in any other publication without the express written consent of Payden & Rygel. Any links to other Internet sites ("hyperlinks") are included only as a convenience for visitors to this website. Payden & Rygel assumes no liability for the content or presentation of such hyperlink sites.
Legal Disclaimer
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
The Funds respect your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner and in compliance with applicable legal and regulatory requirements.
Collection of Information
To meet those expectations, we must collect and maintain certain personal information that is required by state and federal agencies, such as name, address and tax ID. We may collect or capture nonpublic information about you from the following sources:
The Fund application, or other forms;
Oral conversations or written correspondence between you and our representatives;
Your transactions with us; and
Electronic sources, such as our Web site, or E-Mails.
Payden & Rygel clients have the right to: (i) be informed, at or before the point of collection, of the categories of personal information to be collected and the purposes for which the categories of personal information shall be used; and (ii) be informed of (a) the categories of personal information Payden & Rygel has collected about them; (b) the specific pieces of personal information Payden & Rygel has collected about them; (c) the categories of sources from which Payden & Rygel has collected the personal information; (d) the business or commercial purpose for collecting the personal information; and (e) the categories of third parties with whom Payden & Rygel share personal information.
Disclosure of Information
We do not disclose any nonpublic personal and account information about our customers, or former customers, to anyone, except as permitted by law.
In this regard, we may disclose such information to our affiliates, including the Funds’ investment adviser, Payden & Rygel; administrator, Treasury Plus, Inc.; and distributor, Payden & Rygel Distributors. We also may disclose such information to unaffiliated third parties who are service providers to you or to the Funds, such as broker-dealers, transfer agents, custodians, or our mail processing firm. In each case, such disclosure is permitted by law, and the recipients are permitted to use it only as needed to provide agreed services to you. Finally, we may also disclose information to appropriate government agencies, and to others, as required by law or to prevent fraud.
We do not sell personal information collected, nor make that personal information available on-line. To change your personal information, call Paydenfund Shareholder Services at 800-572-9366 and request the forms necessary to make any such changes.
Internal Access to Information and Safeguards
We limit access to your personal and account information to those employees who need to know that information so that we can provide products and services to you. We also maintain physical, electronic and procedural safeguards to protect your nonpublic personal and account information. Finally, when we dispose of such information, we have in place policies and procedures to assure that such information is properly stored and shredded in the case of documentary material and erased in the case of electronic media so that in either case the information cannot be practicably read or reconstructed.
As required by U.S. federal law, Payden & Rygel will update this information at least annually.