Payden USD Low Duration Credit Fund
NAV / Daily Prices
NAV ($)
14.14
NAV Change ($)
0.02
Statistics
Yield to Maturity
4.45%
Effective Duration
2.67 Years
Average Maturity
3.00 Years
Average Fund Credit Rating
A-
Number of Issuers
280
Expenses
Management Fee
0.23%
Maximum Total Expense Ratio (TER) Capped at
0.30%
Initial Charge
NONE
Redemption Fee
NONE
1
# of Funds
Overall
★★★★
144
3 Year
★★★★☆
00
Category
USD Corporate Bond - Short Term
Data as of
1/31/2026
Payden USD Low Duration Credit Fund - USD Accumulating
Bloomberg US Corporate 1-5 Years Index USD Unhedged
| Total Returns | Month-End (31 Jan 2026) | Bloomberg US Corporate 1-5 Years Index USD Unhedged |
| YTD | 0.33% | 0.34% |
| 1 Year | 6.36% | 6.55% |
| 3 Year | 5.65% | 5.54% |
| 5 Year | 2.49% | 2.34% |
| 10 Year | 3.10% | 2.98% |
| Since Inception | 2.86% | 2.75% |
Yearly Returns
Past performance is no guarantee of future results.
Fund Snapshot
Fund Inception Date
5 Dec 2013
Fund Share Class Inception Date
5 Dec 2013
Fund Share Class
USD Accumulating
Hedged
N/A
ISIN Number
IE00BD1NVL60
Ticker
PRULDUA
Irish Stock Exchange Listed
Yes
UCITS Compliant
Yes
Liquidity
Daily
Investment Minimum*
$1,000,000 Initial
Overall Fund AUM
As of 31 Jan 2026
$840.9 Million
Total Payden Low Duration Strategy AUM
As of 31 Dec 2025
$31.3 Billion
Benchmark
Bloomberg US Corporate 1-5 Years Index USD Unhedged
Date as of
Role in Portfolio
Appropriate for investors who seek the income and potential for capital appreciation offered by corporate bonds, whilst minimising exposure to interest rate movements.
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.
Why Investors Choose This Fund?
Actively managed by Payden & Rygel with more than 40 years' experience managing institutional low duration fixed-income accounts.
Fund inception date 5 Dec 2013.
Global markets experience.
KIID SRRI: 3/PRIIPs KID SRI: 2.
Duration Allocation
Duration
Percent of Portfolio
0-1 yr
18%
1-3 yrs
47%
3-5 yrs
30%
5-7 yrs
4%
7-10 yrs
1%
Credit Allocation
Credit
Percent of Portfolio
AAA
14%
AA
3%
A
34%
BBB
43%
BB and Below
6%
Sector Allocation
Sector
Percent of Portfolio
Financials
43%
Industrials
35%
Utilities
7%
CMO
7%
CMBS
3%
Other
5%
Market
January’s data releases suggest solid growth in economic activity, a weak labour market, and moderating inflation. Estimates suggest the US economy expanded at a 4.2% annualised rate in the fourth quarter of 2025, with private demand growth rising at a solid 2.5% rate. We expect technology spending, a major driver of private demand growth in 2025, to continue fueling the economy in 2026. US Treasury yields rose during the month, with the 2-year yield rising 0.05% to 3.52%, whilst the 10-year yield rose by 0.07% to 4.24%.
Demand for corporate bonds remained robust to start the year. As a result, 1- to 30-year corporate yields over similar-maturity US Treasuries fell 0.05% to 0.73%. Still, the overall yield on 1- to 30-year corporate bonds rose 0.03% to 4.84%.
It was a record January, with companies issuing $217 billion of new corporate bonds, which was 29% higher than the four-year January average of $168 billion.
Outlook
During the month, the Fund selectively participated in the new issue calendar, adding credits across a broad range of sectors, including energy, consumer cyclicals, and financials (banking). At the same time, it reduced positions in credits that screened as expensive, in addition to names on credit concerns, particularly within real estate investment trusts (REITs) and insurance. Duration has been modestly long relative to the benchmark.
We expect corporate bonds to continue performing well in 2026, as strong investor demand suggests many still find corporate bond yields attractive at current levels. Corporate fundamentals remain solid and are even showing signs of improvement. However, we are closely monitoring capital expenditures, particularly in the technology sector. Significant spending related to AI could lead to a materially increased supply and add higher debt to corporate balance sheets, which could put some pressure on bond performance, but so far, investors seem more than willing to soak up this incremental supply.
This environment is likely to present both increased risks and opportunities. Careful credit selection will be essential, as we expect greater dispersion across sectors and individual companies in the year ahead.
1. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics.
© 2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Overall rating out of 144 USD Corporate Bond - Short Term funds as of 31-01-26.
2. Returns less than one year are not annualised. Performance does not take account of the commissions and costs incurred on the issue and redemption of shares. Future performance is subject to taxation which depends on the personal situation of each investor, and which may change in the future. Complete information on risks can be found in the prospectus.
Payden USD Low Duration Credit Fund is a sub-fund of Payden Global Funds plc, an open-ended investment company with variable capital incorporated under Ireland law and is authorised by FINMA for offering to non-qualified investors. The prospectus for Switzerland, the key investor information documents ("KIID"), the articles, the semi-annual and annual reports and other information can be obtained free of charge from the Fund's representative and paying agent in Switzerland: Reyl & Cie SA., 4, rue de Rhône, 1204 Geneva, Switzerland.
The Fund is actively managed with reference to the Bloomberg US Corporate 1-5 Years Index USD Unhedged (the "Index"). The Index is used (i) as a universe from which to select or hold securities; and (ii) to measure performance of the Fund. The investment manager has discretion over the composition of the portfolio of the Fund and may select securities not included in the Index. However, in normal market circumstances, it is expected that a significant portion of the Fund’s constituents will also be Index constituents and deviations from the Index may be limited. Whilst the investment manager does not employ a defined strategy to align with a benchmark during periods of volatility, it will take account of market environment and perceived risks at any given time and will employ its investment discretion as described in the investment policy accordingly.
This is a marketing communication. Please refer to the prospectus of Payden Global Funds plc and to the PRIIPs KID or KIID before making any final investment decision. This material has been prepared by Payden & Rygel Global Limited, a company authorised and regulated by the Financial Conduct Authority of the United Kingdom, and by Payden Global SIM S.p.A., an investment firm authorised and regulated by Italy’s CONSOB with passporting to provide services in certain EU jurisdictions. It is directed exclusively at professional investors or eligible parties and counterparties as defined by the rules of the Financial Conduct Authority or, for EU jurisdictions, by the rules of the Markets in Financial Instruments Directive (“MiFID”), as transposed in the relevant EU jurisdictions, and is not intended for use by retail investors. Suitability/appropriateness of the investment is the responsibility of the investor, no assurance can be given that the stated investment objectives will be achieved, and the value of investments may fall as well as rise. This information does not constitute an invitation or offer to subscribe for or purchase any of the products mentioned which will only be accepted on the basis of the relevant prospectus. The law may restrict distribution of this information in certain jurisdictions, therefore, persons into whose possession this message comes should inform themselves about and observe any such restrictions. Waystone Management Company (IE) Limited, the Manager, is authorised in Ireland and regulated by the Central Bank of Ireland.