UCITS Funds

Payden USD Low Duration Credit Fund (PRULDUA ID)

Base Share Class: USD

Share Class
  • 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.

Share Class Snapshot - 31 January 2025
Fund Inception Date Dec 5, 2013
Ticker PRULDUA ID
ISIN Number IE00BD1NVL60
Sedol Number BD1NVL6
Fund Total Net Assets $700.8 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 - 31 January 2025
Fund Inception Date Dec 5, 2013
Total Net Assets $700.8 million
Average Duration 2.6 years
Average Maturity 2.9 years
Yield to Maturity 5.12%
Duration Breakdown
Years Percent of Portfolio
0-115%
1-349%
3-533%
5-73%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA3%
AA3%
A39%
BBB46%
BB and Below9%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financials50%
Industrials39%
Utilities6%
Other5%
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 (12/31/2024) 4.98% 4.98% 1.87% 2.02% 2.58% 2.52%
Month-end (1/31/2025) 0.59% 5.22% 2.52% 1.96% 2.55% 2.56%
Yearly Returns
20244.98%
20236.40%
2022-5.34%
2021-0.08%
20204.62%
20197.53%
20180.70%
20173.28%
20163.30%
20151.02%
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 - 31 January 2025

MARKET
In December, investors were met with the final rate cut of 2024 with the Federal Reserve (Fed) reducing the federal funds rate by 0.25% to 4.50%. Despite this, the Fed moved to a more hawkish stance given the continued strong economic backdrop, which resulted in fewer rate cuts being priced in for 2025. Throughout the month, the US Treasury yield curve steepened, with 2-year yields increasing by just 0.09% to 4.24%, whilst 10-year yields rose by 0.40% to 4.57%. Corporate bond yields relative to similar-maturity US Treasuries’ yields widened by 0.06% in December to 0.60% but ended the year 0.17% lower. Thus, all-in yields on 1- to 5-year corporate bonds rose by 0.18% to 4.92%.
December investment-grade supply totalled $40 billion, bringing the 2024 full-year total of $1.51 trillion, a 25% increase year-over-year. Non-financials made up 60% of total supply, the highest share since 2020. There was also an increase in long-duration paper with 30-year issuance reaching $254 billion, up 55% year-over-year. Expectations for 2025 are around the $1.5 trillion range.

OUTLOOK
During the month, the Fund increased exposure to banking, communications, and utilities, focusing on names that appeared undervalued. Conversely, the Fund reduced its exposure to consumer cyclicals, non-cyclicals, and US Treasury holdings. The Fund continues to maintain a duration close to neutral relative to its index.
Given the strong macroeconomic backdrop and the market pricing out future Fed rate cuts, US Treasury yields spiked higher during the month. This led to some weakness in corporate bonds, particularly at the front-end of the curve. Looking ahead, we remain positive on the macroeconomic outlook and employment, though we are closely monitoring the potential impact of higher interest rates on earnings and borrowing costs. We expect increased dispersion in company results, with some delivering strong returns whilst others may fall short and lower profit expectations. As a result, we expect corporate credit selection will become increasingly important as the market differentiates between top-performing and underperforming companies.

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.