Fund Overview

As an unconstrained or absolute return investment strategy, the Fund is not beholden to a benchmark. It is designed to be better able to navigate the complexities of the evolving fixed income landscape and changing economic environment than traditional benchmark aware bond funds.

Unconstrained strategies are typically managed to beat a cash or equivalent benchmark, rather than a bond index; this removes constraints around duration and sector positioning. The result? A Fund that has the flexibility to dynamically alter its investment mix to find the best opportunities across securities, duration and geography.

The Fund is managed using the Payden Absolute Return Investing (PARI) strategy, which was designed to produce a reasonable level of return and protect the investment principal. With that objective in mind, this approach has been refined over more than 12 years while adhering to the following core concepts: produce positive returns, protect downside risk and capture ‘smart’ yield.

Payden’s 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, rates move up or down, Payden can significantly change the portfolio. In other words, Payden can invest anywhere, anytime, to produce a positive rate of return above the Bloomberg AusBond Bank Bill Index.