UCITS Funds

Payden Sterling Reserve Fund (PAYSRSD ID)

Base Share Class: GBP

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

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 - 29 February 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 £181.7 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 - 29 February 2024
Fund Inception Date Nov 16, 2010
Share Class Inception Date Nov 16, 2010
Total Net Assets £181.7 million
Average Duration 0.9 years
Average Maturity 1.6 years
Yield to Maturity 5.39%
Duration Breakdown
Years Percent of Portfolio
0-166%
1-329%
3-55%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA40%
AA+3%
AA3%
AA-33%
A+11%
A10%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financial Institutions24%
UK Gilts19%
Covered17%
Government Related17%
Industrials9%
Asset-Backed8%
Mortgage-Backed4%
Other2%
Total 100%
Country Breakdown
Country Percent of Portfolio
UK38.0%
Euroland20.0%
Canada17.0%
Scandinavia9.0%
US8.0%
Australia7.0%
Switzerland1.0%

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 (12/31/2023) 5.64% 5.64% 1.44% 1.38% 1.12% 1.19%
Month-end (2/29/2024) 0.50% 5.30% 1.62% 1.45% 1.14% 1.21%
Yearly Returns
20235.64%
2022-1.11%
2021-0.07%
20201.18%
20191.42%
20180.23%
20170.76%
20161.36%
20150.56%
20141.34%
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 - 29 February 2024

MARKET
General risk-on sentiment ruled February, boosting both equity and credit markets. Meanwhile, government bond yields broadly rose as inflation remained above target and investors re-assessed the likelihood of rate cuts this spring.
In the US, healthy economic data propelled risk assets, whilst higher-than-expected inflation reports gave bond investors pause. Labour markets held steady, with the economy adding 353,000 new jobs (expected: 185,000) and the unemployment rate remaining at 3.7%. In mid-February, the year-on-year headline consumer price index (CPI) was at 3.1% (expected: 2.9%), and year-on-year core CPI rose by 3.9% (expected: 3.7%). The combination of sticky inflation and hawkish comments from Federal Reserve officials led investors to reprice the chance of rate cuts this year. Throughout the month, markets priced out more than 60 basis points (bps) of rate cuts before year-end, and US Treasury yields broadly rose, with the 10-year moving 35 bps higher to end the month at 4.27%.
Across the pond, growth remained modest, although more robust than expected, and inflation continued its downward trajectory. The euro area composite purchasing managers index (PMI) rose by 1 bp to 48.9. The higher composite PMI was driven by a rising services PMI, which moved out of the contractionary territory for the first time since last summer. Both UK and German inflation was lower than consensus, yet still well above central bank targets. The UK headline CPI remained at 4% year-on-year, and the German headline CPI fell to 2.7%. Against this backdrop, yields on 10-year German Bunds rose by 29 bps, and 10-year UK Gilt yields rose by 39 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.
That said, 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 believe these cutting cycles might not be as synchronised as markets currently anticipate.
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 UK, Europe, and some emerging-markets countries.
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 as the interest rate differential becomes more favorable 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.