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 $152.6 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 $152.6 million
Average Duration 3.0 years
Average Maturity 3.3 years
Yield to Maturity 1.3%
Duration Breakdown
Years Percent of Portfolio
0-17%
1-341%
3-547%
5+5%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA1%
AA6%
A39%
BBB51%
BB and Below3%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials49%
Financials45%
Utilities4%
Other2%
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 (9/30/2020) 3.12% 4.27% 3.78% N/A N/A 3.52%
Month-end (9/30/2020) 3.12% 4.27% 3.78% N/A N/A 3.52%
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
Corporate yields over similar maturity Treasuries increased by 0.07% to 0.76% as volatility showed up in September due to growing Covid-19 cases, softening economic data, and stalled stimulus talks. Still, investor demand for corporates remains robust as investors seek incremental yield over Treasuries in the relative safe haven of corporates. Corporate yields moved away from the all-time low yield of 0.88% set last month by 0.07% to 0.95%. However, yields are still down 1.21% when compared to the end of 2019.
Record breaking issuance continued through the month of September as companies continued to capitalize on what is still a very attractive borrowing environment. New issuance in September set a record for the month with $166 billion, a 21% increase compared to the previous four-year average of $137 billion. The relatively strong issuance activity observed in August and September laid the foundation for Q3 with $371billion being priced, 17% more compared to Q3 2019.

OUTLOOK
We continued to take advantage of the new issue calendar to continue rotating into more Covid-19 defensive sectors including consumer products and pharmaceuticals. We used the strong bid for higher beta credits to reduce exposure to sectors prone to underperform in a prolonged pandemic environment such as energy, insurance, and airline lessors.
We remain constructive on top tier global banks, particularly within the U.S., which are much better capitalized than they were during the Great Recession. Looking ahead, we believe spreads could experience greater volatility in Q4 given pending elections, an uptick in Covid-19 cases and a rise in permanent layoffs with a greater concentration in higher paying jobs. Throughout the quarter the strategy was positioned with a modestly long to neutral duration position and we expect to maintain that 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.