UCITS Funds

Payden USD Low Duration Credit Fund (PRULDUD 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 - 29 February 2024
Fund Inception Date Dec 5, 2013
Ticker PRULDUD ID
ISIN Number IE00BD1NVK53
Sedol Number BD1NVK5
Fund Total Net Assets $393.8 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 - 29 February 2024
Fund Inception Date Dec 5, 2013
Total Net Assets $393.8 million
Average Duration 2.6 years
Average Maturity 4.1 years
Yield to Maturity 5.64%
Duration Breakdown
Years Percent of Portfolio
0-19%
1-350%
3-541%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA1%
AA3%
A41%
BBB45%
BB and Below9%
Unrated1%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Financials48%
Industrials46%
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 (12/31/2023) 6.40% 6.40% 0.21% 2.51% N/A 2.20%
Month-end (2/29/2024) -0.12% 6.01% 0.30% 2.13% N/A 2.13%
Yearly Returns
20236.40%
2022-5.35%
2021-0.08%
20204.61%
20197.53%
20180.70%
20173.28%
2016-0.75%
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 - 29 February 2024

MARKET
Sticky inflation rhetoric was back in the picture for February as economic data, such as the jobs report and consumer price index (CPI), all surprised to the upside. US Treasury yields rose steadily throughout February and finished higher across the curve by as much as 0.43%. Elevated 1- to 5-year all-in yields, which rose 0.23% in February to 5.31% continued to keep demand for credit robust, which resulted in corporate yields over similar-maturity US Treasuries falling 0. 04% to 0.72%, which is now 0.05% lower on the year
Primary issuance was a record $196 billion in February, pushing year-to-date total supply to $390 billion, up 30% year-over-year. Non-financial issuance dominated the month comprising 75% of total supply, driven by several large mergers & acquisitions (M&A) deals that came to market. Whilst demand for credit continues to remain robust, we have started to see some indigestion given the sheer volume of issuance.

OUTLOOK
During the month, the Fund took advantage of the heavy new issue calendar, adding credits across a broad range of sectors including financials, consumers, utilities, and energy. The Fund also increased its high-yield exposure within energy. To fund these purchases, the Fund sold out of similar sectors in credits that were trading historically expensive. The Fund had a neutral-to-slightly-long duration bias throughout the month.
Despite economic data still coming in strong, combined with a solid earnings season, credit began to experience some weakness into month-end. This pressure was largely driven by the unprecedented amount of new issue supply year-to-date. Whilst supply was met with voracious appetite, with many deals more than 5 times subscribed, issuers were also taking advantage of this demand by pricing deals with limited concessions or even through existing bonds in the secondary market. This resulted in many deals trading higher, on a corporate yields over similar-maturity U.S. Treasuries basis, relative to where they initially priced. Meanwhile, some investors are funding these new issue buys with secondary market sales. This has expanded dealer balance sheets and has resulted in dealers backing up their bids for corporate bonds. We believe this theme could continue into March, which is generally a weaker month for credit, although there is still a heavy supply calendar expected. That said, we are still constructive on the market and believe this could present some buying opportunities. However, given some higher-than-anticipated inflation readings over the past month, we do expect there could be some continued volatility as Federal Reserve rate cuts get pushed back later in the year. Nonetheless, we anticipate current yields will still present a compelling buying opportunity for investors and that corporate bonds are well positioned to perform over the course of the year.

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.