UCITS Funds

Payden Sterling Reserve Fund (PAYSRSD ID)

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

The 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.

Fund Snapshot
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 £262.9 million
Benchmark ICE BOFA BRITISH POUND 1-MONTH DEPOSIT BID RATE CONSTANT MATURITY 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
Fund Inception Date Nov 16, 2010
Share Class Inception Date Nov 16, 2010
Total Net Assets £262.9 million
Average Duration 0.6 years
Average Maturity 2.0 years
Yield to Maturity 0.4%
Duration Breakdown
Years Percent of Portfolio
0-179%
1-318%
3-53%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA67%
AA+2%
AA3%
AA-15%
A+10%
A1%
BBB+2%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financial Institutions27%
Asset-Backed23%
Covered19%
Government Related19%
Industrials6%
UK Gilts4%
Other2%
Total 100%
Country Breakdown
Country Percent of Portfolio
UK44.0%
Euroland10.0%
Scandinavia10.0%
US9.0%
Canada8.0%
Australia5.0%
Supranational5.0%
New Zealand3.0%
Japan2.0%
Singapore2.0%

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 (6/30/2020) 0.42% 1.03% 0.80% 0.90% N/A 1.09%
Month-end (8/31/2020) 0.78% 1.08% 0.84% 0.95% N/A 1.11%
Yearly Returns
20191.42%
20180.23%
20170.76%
20161.36%
20150.56%
20141.34%
20130.71%
20122.05%
20111.61%
20100.05%
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

MARKET
Last month, investors continued to look past the rise in global Coronavirus cases, as better-than-expected earnings results, ongoing vaccine progress, and positive economic data releases buoyed risk assets. Equity and credit markets rallied, with the S&P 500 surpassing February highs, whilst spread levels on the broad US dollar investment-grade (IG) aggregate corporate index tightened by 4 basis points.
In the US, July manufacturing and jobs data beat analyst expectations to the upside, as President Trump signed executive orders to increase and extend economic support measures. Global Central Bank policies remained dovish as anticipated, with US Federal Reserve (Fed) chair Powell, announcing that the Fed will seek to keep average inflation at 2%. With investors reassured, the continued risk-on tone caused 10-year US Treasury yields to increase by 18 basis points over the month to 0.71%. Amidst this backdrop, the US dollar continued to weaken, and real rates moved lower while inflation expectations increased.
Investors remained wary of the pace of recovery, however, especially as US Democrats and Republicans were yet to agree upon a new Coronavirus relief package– with chances of new fiscal stimulus measures diminishing as US elections draw nearer. Such caution was accentuated as US-China tensions teetered, with Trump declaring a US-wide ban on the Chinese firm, Tik-Tok, to start in September, along with proposed sanctions on Chinese officials and their allies in Hong-Kong.
Elsewhere, euro area manufacturing data also beat analyst expectations with figures suggesting an expansion for the first time in one and a half years. However, flash Purchasing Managers' Index (PMI) data for August came below market expectations, with data suggesting the v-shaped recovery may be starting to fade.
In commodities space, a disruption to oil operations in the Gulf coast due to storms Marco and Laura caused prices to increase, with Western Texas Intermediate increasing to $42.61 from $40.27 over the month.

OUTLOOK
Against the backdrop of central bank support, we favour overweight positions in credit markets backed by the respective monetary policy measures. We continue to maintain a modestly defensive tilt in sub-sectoral allocations and issuer selection, with a bias towards less cyclical sectors.
While our stance towards credit sectors remain generally constructive, current tight valuation levels coupled with the uncertainty continuing to surround global growth dynamics encourage us to look for opportunities to lighten up some of our credit risk exposures as we enter the last few months of the year.
In rates space, we’d look to have a preference towards relative country and curve trades, which are less sensitive to broader market directionality.
Within FX, we see scope for further broad US dollar weakness and remain particularly constructive on the euro over the medium run. However, we favour some shorter-term active position management to account for general investors’ positioning and prefer to express our core views through a diversified range of currency crosses.

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.