Payden & Rygel has launched a global bond fund with initial committed funding of $150 million (€126.2 million) from European pension funds, insurance companies and corporates.
The Payden Global Aggregate Bond Fund Ucits is said to be structured to maximise total return by primarily investing in investment grade bonds, both fixed and floating rate, across the globe.
Robin Creswell, who heads Payden & Rygel’s international business from London, said: “With spreads continuing at current levels, institutional investors are looking for further opportunities to enhance returns.”
He added that the firm believes the fund responds to this need.
Creswell also said that the fund should grow to at least $300 million by the end of the year due to the level of interest expressed by current and prospective clients.
US dollars form the base currency of the fund, which is available in a range of currency-hedged share classes including sterling, euro, and Norwegian krona.
The management fee is 30 basis points with a capped total expense ratio of 35 basis points. The minimum investment for the fund is $1 million.
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