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 - 30 April 2025
Fund Inception Date Dec 5, 2013
Ticker PRULDUA ID
ISIN Number IE00BD1NVL60
Sedol Number BD1NVL6
Fund Total Net Assets $703.3 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 - 30 April 2025
Fund Inception Date Dec 5, 2013
Total Net Assets $703.3 million
Average Duration 2.6 years
Average Maturity 2.9 years
Yield to Maturity 4.87%
Duration Breakdown
Years Percent of Portfolio
0-116%
1-349%
3-532%
5-73%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA4%
AA3%
A37%
BBB47%
BB and Below9%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financials47%
Industrials41%
Utilities6%
CMO2%
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 (3/31/2025) 1.82% 6.22% 3.69% 3.45% 2.64% 2.63%
Month-end (4/30/2025) 2.42% 7.48% 4.35% 2.82% 2.71% 2.66%
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 - 30 April 2025

MARKET
Market volatility continued to escalate in April following “Liberation Day,” when the U.S. imposed sweeping tariffs across global markets, fueling concerns about the repercussions of a global trade war. Markets initially showed signs of recovery following a 90-day tariff reprieve, however volatility remained elevated from macroeconomic and tariff-related headlines. April concluded with first quarter GDP contracting by 0.3%, raising concerns of stagflation.
US Treasury yields steepened over the month, with the 2-year yield falling by 0.28% to 3.89%, whilst the 10-year yield declined by just 0.04% to 4.21%. Corporate yields over similar-maturity US Treasuries rose by as much as 0.29% to 0.98% before settling at 0.84%. As a result, all-in yields on 1- to 5-year corporate bonds fell 0.01% to 4.64%.
Despite continued volatility, primary supply finished the month at $100 billion, resulting in year-to-date supply totals of $639 billion, effectively flat compared to the same time last year.

OUTLOOK
During the month, the Fund reduced its overall risk using periods of market strength to reduce exposure in high-yield, emerging markets, and higher risk investment-grade corporates. The most affected sectors include energy and consumer cyclicals. The Fund selectively participated in the new issue calendar, adding higher-quality names within technology, consumer cyclicals, and financials whilst further diversifying by adding within securitised sectors. The Fund maintained a modestly long duration relative to its benchmark.
Whilst corporate markets experienced heightened selling pressure following “Liberation Day,” they posted a solid recovery towards month-end as the initial extent of tariffs was slowly talked back. Like the rest of the market, we remain highly data-dependent amid continued uncertainty surrounding the tariff endgame. This, combined with further weakness in recent macroeconomic data reports, suggest investors should demand a higher risk premium to own corporates.
We are closely monitoring earnings this season. Whilst many companies have yet to show significant deterioration in their fundamentals, outlooks have generally become more cautious. On a positive note, these factors have increased investor expectations for the Federal Reserve rate cuts this year, potentially boosting the total return potential for corporate bonds. We believe volatility will remain heightened; however, valuations have become more attractive, with investors stepping in to buy corporates at weaker levels and compelling all-in yields. We recognise that this new environment presents both increased risks and opportunities. As such, careful credit selection and the ability to adapt positioning to the evolving market conditions will be critical in the months ahead.

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.