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 while 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 IG companies.

Fund Snapshot
Fund Inception Date Dec 5, 2013
Ticker PRULDUD ID
ISIN Number IE00BD1NVK53
Sedol Number BD1NVK5
Fund Total Net Assets $111.6 million
Benchmark BLOOMBERG BARCLAYS US CREDIT CORPORATE 1-5 YEAR
Currency Share Classes Available CAD, CHF, EUR, GBP, JPY, NOK, SGD, USD
Management Fee 0.29%
Total Expense Ratio 0.35%
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 $111.6 million
Average Duration 2.8 years
Average Maturity 3.3 years
Yield to Maturity 2.5%
Duration Breakdown
Years Percent of Portfolio
0-19%
1-339%
3-546%
5-76%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA3%
AA3%
A33%
BBB57%
BB and Below4%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financials46%
Industrials45%
Utilities5%
Other4%
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 (12/31/2019) 7.53% 7.53% 3.80% N/A N/A 3.37%
Month-end (12/31/2019) 7.53% 7.53% 3.80% N/A N/A 3.37%
Yearly Returns
20197.53%
20180.70%
20173.28%
2016-0.75%
Expenses
Management Fee 0.29%
Total Expense Ratio 0.35%

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 yields on the Bloomberg Barclays US Corporate 1-5 Year Index ended at 2.16%, higher by 0.08% on the month and 1.42% lower on the year. As of December 31st, 2019, 1-5 year corporate bonds yielded 0.57% more than similar-maturity US Treasuries.
December saw $19 billion in new supply, bringing the total new issuance in 2019 to $1.98 trillion. This was down 2.5% relative to 2018's supply.

OUTLOOK
We continue to have a positive macroeconomic outlook, particularly for the US. We are also seeing improving signs out of Europe and the UK as well. However, expect to see continued market volatility driven by the ebbs and flows of trade talk negotiations globally.
Corporate fundamentals remain solid and we are seeing a renewed commitment from management teams to strengthen their balance sheets, particularly from BBB rated credits.
We expect global demand for US corporates to remain healthy in 2020. Corporate still represents an attractive risk-adjusted profile for investors given limited opportunities globally for high-quality assets. That said, we do expect some further bouts of spread volatility ahead and greater performance dispersion across names. Avoiding credit landmines is equally as important as the names selected in the portfolio, and we continue to focus on bottom-up fundamental analysis.

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.