UCITS Funds

Payden USD Low Duration Credit Fund (PRULDUD ID)

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 PRULDUD ID
ISIN Number IE00BD1NVK53
Sedol Number BD1NVK5
Fund Total Net Assets $102.8 million
Benchmark BLOOMBERG BARCLAYS US CORPORATE BOND INDEX 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 $102.8 million
Average Duration 2.8 years
Average Maturity 3.1 years
Yield to Maturity 1.4%
Duration Breakdown
Years Percent of Portfolio
0-110%
1-340%
3-545%
5+5%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA1%
AA5%
A34%
BBB54%
BB and Below5%
Unrated1%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials46%
Financials45%
Utilities6%
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 (6/30/2020) 1.92% 4.16% 3.68% N/A N/A 3.44%
Month-end (7/31/2020) 2.90% 5.01% 3.84% N/A N/A 3.62%
Yearly Returns
20197.53%
20180.70%
20173.28%
2016-0.75%
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
All-in yields on the Bloomberg Barclays U.S. Corporate 1-5 Year Index fell 0.21% to an all-time low yield of 0.93% during the month of July. Corporate yields over similar maturity Treasurys decreased 0.16% as strong demand for corporate bonds continued and new issue supply was light during the month. Corporate yields over similar maturity Treasurys are now only wider by 0.24% on the year.
Investment grade credit new issuance took a breather in July, with only $62 Billion being issued. While the summer months historically have less supply, July supply was 31% lower compared to the previous four-year average. Investment grade corporate new issuance is at a historic pace with $1.23 Trillion having been issued over the last seven months.

OUTLOOK
The technical demand for credit continued in July and we believe this could push yields over similar maturity Treasurys even tighter, particularly in the near term. The Federal Reserve’s purchases of front-end corporate debt slowed in July as 1-5 year corporates have recovered significantly, with yields over similar maturity Treasurys only wider by 0.17% on the year. Still, the Federal Reserve has extended their corporate buying programs from the end of September to the end of December and has shown a willingness to buy if yields over similar maturity U.S. Treasurys increase. Demand is also coming from the aid corporations have received from the government’s CARES program along with proceeds from record corporate issuance as corporations without immediate cash liquidity needs are looking to pick up incremental yield. These supportive technicals have seemingly outweighed any longer-term fundamental concerns for now which has resulted in a remarkable recovery in credit, with many issues trading at historically low yields.
We continued to use the new issue calendar to rotate into more defensive sectors including pharmaceuticals, technology, and communications. We remain more cautious on energy but see value in globally integrated oil producers as well as in high-quality BBB pipelines and natural gas credits. We expect to maintain the fund's duration position close to neutral in the near term.

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.