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 $91.2 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 $91.2 million
Average Duration 2.6 years
Average Maturity 3.4 years
Yield to Maturity 4.0%
Duration Breakdown
Years Percent of Portfolio
0-120%
1-346%
3-533%
5-101%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA1%
AA7%
A27%
BBB58%
BB and Below7%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials50%
Financials41%
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 (12/31/2018) 0.70% 0.70% 2.42% 2.15% N/A 2.05%
Month-end (12/31/2018) 0.70% 0.70% 2.42% 2.15% N/A 2.05%
Yearly Returns
20180.70%
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 December, yields on 1-5 year corporate bonds, relative to similar-maturity US Treasuries, widened by 12 basis points, bringing the total overall yield differential of 1.06%. This brings the total yield on the Bloomberg Barclays US Corporate 1-5 Year Bond Index to 3.58%, 1.02% higher on the year.
December saw $8 billion in new supply, bringing the year-to-date total to $1.13 trillion. Overall, 2018 issuance was 10% slower than the pace of the previous year. New issuance has been supported by blockbuster mergers & acquisitions (M&A) deals, which has already surpassed M&A issuance in all of 2017.

OUTLOOK
We expect continued volatility in investment-grade credit. While fundamentals are fine, the decline has begun and will continue to weigh on market sentiment. We still see value in BBB-rated securities, but are cautious on more volatile credits, preferring to own larger and more liquid names. We have favourable views on both our current energy overweight relative to the index as well as the insurance sector. We believe that there is room for performance in the energy sector even if oil doesn’t move much higher.
We view shorter maturity corporates as offering select compelling opportunities given higher all-in yields. We expect that new issue supply could be down 5-10% this year which could help support the investment-grade credit market.

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.