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 $96.8 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 $96.8 million
Average Duration 2.9 years
Average Maturity 3.1 years
Yield to Maturity 3.2%
Duration Breakdown
Years Percent of Portfolio
0-110%
1-347%
3-540%
5-103%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA2%
AA7%
A30%
BBB58%
BB and Below3%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials47%
Financials45%
Utilities4%
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 (3/31/2019) 2.95% 4.26% N/A N/A N/A 2.57%
Month-end (4/30/2019) 3.37% 4.66% N/A N/A N/A 2.65%
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 April, yields on corporate bonds relative to similar-maturity U.S. Treasuries tightened by 0.02%, bringing the overall yield differential to 0.69%. This brings the total yield on the Bloomberg Barclays 1-5yr US Corporate Index to 2.9%, -0.03% lower on the month and -0.63% lower on the year.
April saw $92 billion in new supply, bringing the year-to-date total to $412 billion. So far new issue supply is 6% below the 2018 supply year-to-date.

OUTLOOK
Spreads continued to march another 3bps tighter in April and are now 40bps tighter on the year with an OAS of +66 basis points on the Bloomberg Barclays 1-5 year US Corporate Index. The yield on the Bloomberg Barclays 1-5yr US Corporate Index is now 63 basis tighter on the year at 2.95%. The automotive sector was the best performing sector this month as the industry, driven primarily by Ford, posted better than expected earnings.
Investor appetite for credit remains strong and was easily able to absorb the $92B of new supply in April. This bring YTD issuance up to $412B, down 6% relative to YTD 2018. We were selectively active in the new issue calendar and continue to favor moving up in quality and liquidity as higher beta valuations are beginning to look a little stretched. We are maintaining a flat to modestly long duration position.

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.