UCITS Funds

Payden USD Low Duration Credit Fund (PRULDUD 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 August 2023
Fund Inception Date Dec 5, 2013
Ticker PRULDUD ID
ISIN Number IE00BD1NVK53
Sedol Number BD1NVK5
Fund Total Net Assets $99.3 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 August 2023
Fund Inception Date Dec 5, 2013
Total Net Assets $99.3 million
Average Duration 2.6 years
Average Maturity 3.5 years
Yield to Maturity 5.97%
Duration Breakdown
Years Percent of Portfolio
0-113%
1-357%
3-530%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA3%
AA5%
A39%
BBB45%
BB and Below7%
Unrated1%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financials49%
Industrials44%
Cash2%
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 (6/30/2023) 1.73% 2.06% -0.42% 1.77% N/A 1.68%
Month-end (8/31/2023) 2.66% 2.46% -0.52% 1.77% N/A 1.77%
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 - 31 August 2023

MARKET
In August the US economy remained resilient with low unemployment and solid gross domestic product (GDP) growth of 2.1%. However, we are beginning to see some signs of cracks in the system both domestically from increasing credit card delinquencies as well as internationally from China with its property crisis and slower growth. That said, Powell maintained his hawkish tone at the Jackson Hole Symposium, which seemed to be the catalyst to drive interest rates higher into month-end. In sympathy, 1- to 5-year corporate yields over similar-maturity US Treasuries moved 0.11% higher on the month pushing all-in yields on 1- to 5-year investment-grade (IG) corporate bonds to 5.61%.
Corporate issuance for the month finished at $69 billion, the lowest August supply since 2015, pushing the year-to-date (YTD) total to $873 billion, which is down 7% year-over-year. Financials made up 37% of monthly supply versus 63% for non-financials whilst issuers remain biased to the front-end of the curve with 49% of monthly supply maturing five years and earlier.

OUTLOOK
During the month, the Fund utilized the new issue calendar to add credits across a broad range of sectors, mainly targeting trades that kept the Fund’s duration and curve posture neutral versus its index. On the other side, the Fund sold similar sector credits whilst also reducing out-of-index positions within taxable municipals and emerging markets based on relative value considerations.
The corporate market ended August on a strong note, and we believe it is well positioned to perform into year-end. All-in corporate yields are back near their highs on the year, and we have seen a pick-up in demand for the asset class. We believe investment-grade bonds offer good value at these higher yields, though we wouldn’t be surprised to see further bouts of volatility down the road.

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.