Payden & Rygel has launched a UCITS fund holding primarily investment-grade corporate securities.
The Payden Global Investment Grade Corporate Bond fund, which is seeded with $50m, will look to outperform the Bloomberg Global Aggregate Corporate index.
The fund offers an opportunity for investors to “lock yield” into their fixed income portfolios in the midst of central bank interest rate changes, Payden & Rygel stated. The strategy will look for mispriced opportunities including in the primary market, fallen angels and relative value across the capital structure.
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The fund will be classified under Article 8 of SFDR and offered in US dollar, pound sterling, and euro share classes, with currency risk typically hedged to the currency of the share class.
Frasat Shah, senior vice president of Payden & Rygel, said: “The fund is well placed to enable investors to take advantage of the higher yields currently available across the global spectrum of investment grade bonds with a specific focus on enhancing value through active management to generate superior risk-adjusted returns.
“Positions in the fund reflect our key, top-down macroeconomic views with an emphasis on generating alpha through bottom-up credit selection. Our approach is team-based with different perspectives influencing position sizes. The fund is constructed so that no single position drives performance.”
