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 £256.1 million
Benchmark Payden 1 Week Sterling LIBID
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 £256.1 million
Average Duration 0.7 years
Average Maturity 2.2 years
Yield to Maturity 1.1%
Duration Breakdown
Years Percent of Portfolio
0-177%
1-317%
3-56%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
A1/P15%
AAA58%
AA+4%
AA14%
AA-19%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financial Institutions39%
Asset-Backed21%
Government Related17%
Covered12%
UK Gilts6%
Other5%
Total 100%
Country Breakdown
Country Percent of Portfolio
UK45.0%
Euroland16.0%
Scandinavia10.0%
US7.0%
Supranational6.0%
Canada6.0%
Australia5.0%
New Zealand3.0%
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 (12/31/2019) 1.42% 1.42% 0.80% 0.86% N/A 1.10%
Month-end (12/31/2019) 1.42% 1.42% 0.80% 0.86% N/A 1.10%
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 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 fund outperformed by 7 basis points net of fees with its benchmark net of fees.

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.