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 $66.3 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 $66.3 million
Average Duration 2.5 years
Average Maturity 3.0 years
Yield to Maturity (hedged) 3.2%
Duration Breakdown
Years Percent of Portfolio
0-111%
1-350%
3-538%
5-101%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA1%
AA3%
A23%
BBB59%
BB and Below14%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Industrials47%
Financials46%
Utilities3%
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 (12/31/2017) 3.28% 3.28% 2.52% N/A N/A 2.39%
Month-end (1/31/2018) -0.04% 2.80% 2.22% N/A N/A 2.33%
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 January, yields on corporate bonds relative to similar-maturity US Treasuries fell by 0.03%, bringing the overall yield differential to 0.52%, near post-crisis lows. This moved 0.35% lower over 2017 after falling 0.23% during the prior year.
January saw $127 billion in new supply, 24% behind January of 2017. This was easily absorbed by the market and performed nicely. Issuance was largely driven by banks and other financial issuers.

OUTLOOK
We continue to be constructive on investment-grade credit and do not foresee material spread volatility through 2018. The corporate market is supported by solid US macroeconomic growth and an improving growth trajectory out of Europe and Asia, as well as a generally solid performance from emerging markets. Still, as the market cycle progresses, we are becoming more selective with the higher beta names we choose and are seeking to minimize idiosyncratic risk.
The technical demand for investment-grade credit continues unabated from corporations, insurance companies, and sovereign wealth funds. Healthy corporate fundamentals along with strong, free cash flow generation should prove to keep this trend going.

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.