Grant Samuel launches global income opportunities fund (mFund code GSF08)
Access the Payden Global Income Opportunities Fund via mFund code: GSF08
An unconstrained fixed income opportunity
Traditional income sources have not delivered for some time. Low rates have made term deposits unattractive, and government bond yields – in Australia and many other markets – have been at their lowest point for many years. However, the unwinding of quantitative easing programs in the United States and Europe, coupled with rising rates across a range of markets, will drive bond yields higher and prices lower, ushering in challenging times ahead for fixed income investors.
Unlike traditional bond funds which are anchored to a bond index, unconstrained fixed income strategies are typically managed to beat a cash or equivalent benchmark; this removes constraints around duration and sector positioning.
An unconstrained strategy is designed to be better able to navigate the complexities of the evolving fixed income landscape and changing economic environment. The lower duration exposure tends to benefit performance in a rising interest rate environment, while the multiplicity of sectoral exposures diversifies risk and can mitigate total portfolio risk. At the same time, such portfolios generally retain the conservative return profile associated with bonds.
Payden Global Income Opportunities Fund
The Payden Global Income Opportunities Fund (the Fund) is managed by Payden & Rygel Investment Management (Payden), is actively managed and aims to provide a return of Bloomberg AusBond Bank Bill Index +250 basis points (after fees), over the medium term and pay quarterly income distributions.
It provides investors with access to a highly diversified and well-researched portfolio of global fixed income and equity-related investments from developed and emerging markets.
Payden’s unconstrained approach enables the Fund to invest in the full spectrum of fixed income assets, of both long and short duration, providing a large degree of flexibility – as markets change, Payden can significantly change the portfolio. In other words, Payden can invest anywhere, anytime, to deliver on the Fund’s objective.
How is this Fund different to other Fixed Income Funds?
There are a number of features that differentiate the Payden Global Income Opportunities Fund from other global fixed income products:
- The Fund is unconstrained by a benchmark that dictates its duration, country or sector allocation, or security selection
- The integration of risk management into the portfolio construction process, including the allocation of a percentage of the portfolio to purchase tail risk hedge protection
- Managed by a specialist investment house that’s large enough to get access to new issues, but small enough to execute trades nimbly, using cash rather than derivatives
- Payden strongly believes that portfolios should be constructed so they are not dependent on a single economic outcome or thesis; in other words, Payden ensures that no single theme or risk factor dominates asset allocation or performance.
About Payden & Rygel
LA-based Payden is an independent global investment manager focused on fixed income investing. It was founded in 1983 and is privately owned by 22 senior executives, including CEO Joan Payden.
The cornerstone of Payden’s investment philosophy is that active management of fixed income investments should focus on managing risk consistent with the spirit of the investment guidelines – Payden believes in providing its clients with no surprises.
Payden uses a team approach that exploits the collective wisdom of a highly qualified group of professionals, many of whom have worked together for more than a decade. The firm has an international presence, with over 350 client relationships worldwide and, at 30 June 2018, managed A$151.8 billion for those clients.
Grant Samuel Fund Services Limited ABN 48 129 256 104 AFSL 321517 (Grant Samuel Fund Services) is the responsible entity of the Payden Global Income Opportunities Fund ARSN 130 353 310 (Fund) and is the issuer of this information. The Fund is registered as a managed investment scheme under the Corporations Act 2001 (Cth). Grant Samuel Fund Services has appointed Payden & Rygel as the investment manager of the Fund. Class A Units in the Fund are available for issue by Grant Samuel Fund Services, as responsible entity of the Fund. This information has been prepared without taking account of the objectives, financial situation or needs of individuals. Before making an investment decision in relation to the Fund, investors should consider the appropriateness of this information, having regard to their own objectives, financial situation and needs and read and consider the product disclosure statement (PDS) for the Fund dated 1 August 2018 and the Additional Information to the PDS. Copies of these documents can be obtained by calling 1300 133 451 or from this website. Applications to invest in the Fund must be made on the application form which can be downloaded from this website or obtained by calling 1300 133 451.