UCITS Funds

Payden Sterling Reserve Fund (PAYSRSD ID)

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

The Payden Sterling Reserve Fund seeks to outperform bank deposits and money market funds by utilizing investment-grade short-term securities. The fund is primarily comprised of UK Government securities and government guaranteed securities and investment-grade corporate bonds. The average maturity of the fund is limited to two and one half years, and the fund’s average interest rate duration is limited to two years.

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 £440.4 million
Benchmark BofA ML 1-Month GBP LIBID
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee 0.14%
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 £440.4 million
Average Duration 1.0 years
Average Maturity 2.1 years
Yield to Maturity (hedged) 0.8%
Duration Breakdown
Years Percent of Portfolio
0-171%
1-316%
3-513%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
A1/P19%
AAA65%
AA+4%
AA3%
AA-12%
A+6%
A1%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Asset-Backed25%
Financials21%
Government Related16%
Covered16%
Mortgage-Backed14%
Industrials6%
UK Gilts2%
Total 100%
Country Breakdown
Country Percent of Portfolio
UK52.0%
Euroland19.0%
Scandinavia9.0%
Canada7.0%
US6.0%
New Zealand3.0%
Other4.0%

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 (12/31/2017) 0.76% 0.76% 0.89% 0.95% N/A 1.18%
Month-end (12/31/2017) 0.76% 0.76% 0.89% 0.95% N/A 1.18%
Yearly Returns
20170.76%
20161.36%
20150.56%
20141.34%
20130.71%
20122.05%
20111.61%
20100.05%
Expenses
Management Fee 0.14%
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
Stronger-than-expected employment growth in the US showed a continued addition to the workforce and a better-than-expected increase in wages. The US Federal Reserve (Fed) hiked rates for the third time in 2017 as the economic picture continued to improve. Furthermore, President Trump managed to pass a historic $1.5 trillion tax reform. As a result, the yield curve in the US continued to flatten as investors priced in more rate hikes for the coming year.
Portugal received its second investment-grade rating from a large agency, as the country has continued to recover from the eurozone debt crisis. This second rating increases its eligibility for inclusion into large indices. In regional Catalonian elections, pro-independence parties won an absolute majority, however, market impact was muted. Britain reached a deal with the eurozone on exit terms agreeing to a settlement for its liabilities in the region of €40-€60 billion and to align regulation in Northern Ireland to that of the Republic of Ireland. This move paves the way for talks on the future of trade. Inflation reached 3.1% in the UK due mostly to the weakness in sterling. Sterling was the weakest performer in G10 space and yields moved lower over the month. The fund outperformed its benchmark by 11 basis points.

OUTLOOK
We believe the US Fed will raise rates at a faster rate than currently priced-in by markets. Still, such a shallow path by historical standards should keep any yield rises moderate.
The Japanese economy is showing signs of improved growth and we expect this could lead to a steady improvement in inflation expectations.
We believe the US dollar will be moderately stronger in the medium-term given our expectation that the US Fed will be raising interest rates.

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.