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 $93.6 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 $93.6 million
Average Duration 2.7 years
Average Maturity 3.1 years
Yield to Maturity 3.5%
Duration Breakdown
Years Percent of Portfolio
0-113%
1-351%
3-534%
5-102%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA1%
AA7%
A30%
BBB58%
BB and Below4%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials50%
Financials42%
Utilities5%
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 (12/31/2018) 0.70% 0.70% N/A N/A N/A 1.49%
Month-end (2/28/2019) 1.74% 2.95% N/A N/A N/A 2.14%
Yearly Returns
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
During February, yields on corporate bonds relative to similar-maturity U.S. Treasuries tightened by 0.07%, bringing the overall yield differential to 1.21%. This brings the total yield on the Bloomberg Barclays US Corporate 1-5 Year Bond Index to 3.25%, 0.02% lower on the month and -0.33% lower on the year.
February saw $99 billion in new supply, bringing the year-to-date total to $205 billion. So far new issue supply is slightly outpacing the 2018 supply year to date.

OUTLOOK
While US macroeconomic growth is healthy and for the most part corporate earnings have been solid, we are seeing some cracks and expect a deceleration of growth going forward. In light of this, we continue to reduce our higher risk credits and are moving up in quality and liquidity. We have reduced our energy overweight and maintain our underweight to technology and communications.
The technical demand for credit remains strong, particularly for higher quality front-end issues. We very selectively participated in the February new issue calendar as deals were generally priced very aggressively. We are maintaining a flat to modestly long duration position and our spread duration is now roughly neutral with the index.

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.