UCITS Funds

Payden USD Low Duration Credit Fund (PRULDUA)

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 PRULDUA
ISIN Number IE00BD1NVL60
Sedol Number BD1NVL6
Fund Total Net Assets $84.3 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 $84.3 million
Average Duration 2.5 years
Average Maturity 3.2 years
Yield to Maturity 3.6%
Duration Breakdown
Years Percent of Portfolio
0-124%
1-340%
3-534%
5-72%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA11%
AA3%
A26%
BBB50%
BB and Below10%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financials42%
Industrials41%
Cash11%
Agency3%
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 (3/31/2018) -0.57% 1.66% 1.94% N/A N/A 2.12%
Month-end (4/30/2018) -0.55% 1.11% 1.96% N/A N/A 2.08%
Yearly Returns
20173.28%
20163.30%
20151.02%
20142.51%
2013-0.34%
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
During April, yields on corporate bonds relative to similar-maturity U.S. Treasuries fell by 0.07%, bringing the overall yield differential to 0.68%. This brings the total yield of corporate bonds to 3.30%, 0.74% higher on the year.
April saw $111 billion in new supply. Overall, 2018 issuance is 1% slower than the pace of the previous year. This is supported by blockbuster deals such as the $40 billion in new bonds issued by CVS earlier this month, ranking as the third largest corporate deal on record.

OUTLOOK
We are cautiously constructive on investment-grade credit as we foresee continued spread volatility through 2018. The corporate market is supported by solid US macroeconomic growth and an improving growth trajectory out of Europe and Asia, as well as a generally solid performance from emerging markets. Still, as the market cycle progresses, we are becoming more selective with the higher beta names we choose and are seeking to minimize idiosyncratic risk.
Since tax reform, the technical demand for corporates has been challenged particularly in the front end. Still, corporates remain fundamentally strong with healthy free cash flow generation.

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.