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 June 2025
Fund Inception Date Dec 5, 2013
Ticker PRULDUA ID
ISIN Number IE00BD1NVL60
Sedol Number BD1NVL6
Fund Total Net Assets $685.9 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 June 2025
Fund Inception Date Dec 5, 2013
Total Net Assets $685.9 million
Average Duration 2.7 years
Average Maturity 3.1 years
Yield to Maturity 4.73%
Duration Breakdown
Years Percent of Portfolio
0-116%
1-346%
3-535%
5-73%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA4%
AA2%
A37%
BBB49%
BB and Below7%
Unrated1%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financials48%
Industrials38%
Utilities7%
CMO3%
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 (6/30/2025) 3.72% 7.02% 5.14% 2.38% 2.84% 2.73%
Month-end (7/31/2025) 3.83% 5.71% 4.65% 2.20% 2.85% 2.72%
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 June 2025

MARKET
Despite inflation continuing to moderate, the Federal Reserve (Fed) held rates steady in June as the labour market continued to remain resilient and uncertainty around the tariff fallout remained elevated. Markets also digested, and seemingly brushed off, the geopolitical tensions between Israel and Iran. US Treasury yields fell across the curve with the 2-year yield lower by 0.18% to 3.72%, whilst 10-year yields fell 0.17% to 4.23%. Corporate yields over similar-maturity US Treasuries continued to recover, falling 0.03% to 0.63%, now just 0.09% away from year-to-date lows. Thus, all in yields on 1- to 5-year corporate bonds fell 0.22% to 4.43%, the lowest level since October 2024.
Primary supply finished the month at $111 billion, resulting in year-to-date supply totals of $909 billion, up 4% compared to the same time last year.

OUTLOOK
During the month, the Fund sought to add back risk as sentiment across multiple facets showed positive momentum. The Fund participated in the new issue calendar, increasing exposure to sectors such as banking and technology. On the other side, it sold rich credits within consumer non-cyclicals, whilst also selling higher beta credits with headline risk within consumer cyclicals. The Fund added duration across the month and now maintains a flat to modestly long duration relative to its benchmark.
Heading into summer, we believe corporate bonds can continue to perform well, supported by a strong technical bid for credit as investors look to lock in these still-high corporate yields ahead of another round of Federal Reserve rate cuts. As of now, corporate fundamentals remain generally solid; however, we are closely monitoring for any signs of deterioration or the potential impact of tariffs on gross margins.
We believe this new environment will present both increased risks and opportunities. Going forward, careful credit selection and the ability to adjust positioning based on evolving global trade negotiations and incoming macro data will be critical to navigating these market conditions effectively.

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.