UCITS Funds

Payden USD Low Duration Credit Fund (PRULDUD ID)

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

The Payden USD Low Duration Credit Fund invests in a diversified portfolio of investment-grade corporate bonds. In an environment of heightened sensitivity to rising interest rates, the fund invests primarily in short-maturity (1-5 year) bonds and floating-rate notes to limit the impact of interest rate movements whilst still capturing the upside of compressing credit spreads. The fund employs tactical allocations to emerging-market debt and high-yield bonds as opportunities present themselves, but the focus remains on US investment-grade companies.

Fund Snapshot
Fund Inception Date Dec 5, 2013
Ticker PRULDUD ID
ISIN Number IE00BD1NVK53
Sedol Number BD1NVK5
Fund Total Net Assets $186.5 million
Benchmark Bloomberg US Corporate 1-5 Years Index USD Unhedged
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee 0.23%
Total Expense Ratio 0.30%
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 Dec 5, 2013
Total Net Assets $186.5 million
Average Duration 2.4 years
Average Maturity 2.5 years
Yield to Maturity 5.53%
Duration Breakdown
Years Percent of Portfolio
0-115%
1-357%
3-526%
5-72%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA7%
AA4%
A36%
BBB42%
BB and Below10%
Unrated1%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials46%
Financials42%
Cash6%
Utilities3%
Other3%
Total 100%

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 (12/31/2022) -5.35% -5.35% -0.35% 1.39% N/A 1.53%
Month-end (12/31/2022) -5.35% -5.35% -0.35% 1.39% N/A 1.53%
Yearly Returns
2022-5.35%
2021-0.08%
20204.61%
20197.53%
20180.70%
20173.28%
2016-0.75%
Expenses
Management Fee 0.23%
Total Expense Ratio 0.30%

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
In December, 1- to 5-year corporate spreads over similar-maturity US Treasuries remained range-bound and ended the month unchanged at 0.91%, finishing 0.41% wider on the year. US Treasury rates initially rallied after the December Federal Reserve rate hike, however, yields spiked higher across the curve into year-end, with 5-year Treasury yields rising 0.27% to 4.01%. This propelled all-in yields on 1-to 5-year investment-grade corporate bonds 0.11% higher on the month to close at 5.26%, although this is still down 0.64% compared to the the 2022 high of 6.13% reached in October.
December’s new issue supply came in at a measly $9 billion, bringing full-year 2022 supply to $1.2 trillion, 12% lower compared to 2021. Supply for financials and non-financials was evenly split on the year at 49% and 51%, respectively.

OUTLOOK
During the month, the Fund added cheap bank names, whilstreducing some existing energy, consumer and financial exposure on the other side.
Heading into 2023, corporate fundamentals remain solid. Management teams are noting that supply chain and labor shortage issues are easing. We are seeing companies being proactive about managing costs and maintaining strong balance sheets by taking actions such as reducing capital expenditures, cutting dividends and share buybacks, as well as announcing layoffs or hiring freezes. Whilst we expect continued volatility in the months ahead, we are beginning to see these higher all-in yields on investment-grade corporate bonds attract investors to the asset class and we believe the asset class is poised to produce some nice positive total returns in 2023.

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.