Payden & Rygel named Insurance Asset Manager of the Year
Payden & Rygel brings over four decades of experience and expertise to the European re/insurance asset management markets, partnering with insurance groups around the world.
Among the highlights of the past twelve months were the launch of the first bond fund on Lloyd’s Investment Platform; winning the mandate for $2bn of assets from a large re/insurer with several global entities across multiple fixed income strategies; and enhancing returns for a global reinsurer on the proceeds of a $1.3bn share offering through use of its Series Fund.
With about $159bn in assets under management (AuM), Payden & Rygel is one of the largest 100% employee-owned asset managers in the world and has cultivated a specialisation in low duration fixed income, which accounts for over half its total AuM.
That, in turn, has allowed it to predominantly focus its insurance expertise on non-life insurer assets, which make up approximately 89% of its over $28bn in insurance AuM. Not least, is its involvement with Lloyd’s of London, where it manages approximately $4.5bn for 11 syndicates across the entire Lloyd’s capital structure, a market it first entered 15 years ago.
This expertise led to a collaboration with Lloyd’s which saw it launch the first bond fund on the Lloyd’s Investment Platform in December 2023. As a mark of its success, the USD Enhanced Cash strategy used by Lloyd’s and others has a forty-year track record and Payden’s USD Enhanced Cash Composite has never had a negative total return calendar year.
The asset manager showed more innovation with its dedicated Series Fund, which represents the first innovation of its kind for insurers with multiple legal entities and regulatory jurisdictions and allows insurers to have their own fund-of-one, which only affiliated entities may invest in. During 2024, the company also significantly enhanced its ESG reporting and engagement capabilities, as well as its proprietary ESG portfolio management tool. The appeal to insurers in Europe is obvious. Maeve Grant, chief investment officer of Inigo, praised Payden in providing knowledge for its own sustainability pathway within investments.
'They have made people, resources and thought leadership freely available,' said Grant. 'I have found that they have put real effort into getting to the heart and intention of our responsible investment aims rather than simply rolling out a one-size fits all approach.'
Payden & Rygel was founded in 1983 to provide investment management solutions to institutions around the world; sensitivity to liquidity needs and capital preservation is deeply entrenched in our investment culture.
