UCITS Funds

Payden USD Low Duration Credit Fund (PRULDUA)

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 PRULDUA
ISIN Number IE00BD1NVL60
Sedol Number BD1NVL6
Fund Total Net Assets $87.9 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 $87.9 million
Average Duration 2.6 years
Average Maturity 3.2 years
Yield to Maturity 3.7%
Duration Breakdown
Years Percent of Portfolio
0-123%
1-342%
3-533%
5-72%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AA8%
A27%
BBB56%
BB and Below9%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials49%
Financials43%
Utilities5%
Agency3%
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 (9/30/2018) 0.67% 0.79% 2.37% N/A N/A 2.16%
Month-end (9/30/2018) 0.67% 0.79% 2.37% N/A N/A 2.16%
Yearly Returns
20173.28%
20163.30%
20151.02%
20142.51%
2013-0.34%
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 September, yields on 1-5 year corporate bonds, relative to similar-maturity US Treasuries, tightened by 6 basis points, bringing the total overall yield differential of 0.62%. This brings the total yield on the Bloomberg Barclays US Corporate 1-5 Year Bond Index to 3.50%, 0.94% higher on the year.
September saw $131 billion in new supply, mostly coming early in the month. Overall, 2018 issuance is now 6% slower than the pace of the previous year. New issuance has been supported by blockbuster mergers and acquisitions' (M&A) deals, which are already equivalent in size to M&A issuance in all of 2017.

OUTLOOK
We are cautious on investment-grade credit as we foresee continued volatility throughout 2018. The corporate market is supported by solid US macroeconomic growth and an improving growth trajectory out of Europe and Asia. Still, as the market cycle progresses, we are becoming more careful with security selection and are seeking to minimize idiosyncratic risk.
Since tax reform, the front-end has experienced decreased technical demand for corporates. Still, rising rates have made the space considerably more attractive, drawing buyers who typically may have invested otherwise. Corporates remain fundamentally strong with healthy, free cash-flow generation.

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.