Payden & Rygel
Payden & Rygel is one of the largest independent, employee-owned investment managers globally. Founded in 1983 and managing in excess of $137 billion in assets, we are a leader in the active management of fixed income, equity and multi-asset portfolios. Payden & Rygel joined the Net Zero Asset Managers Initiative in July 2021 and made its initial target disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
30% of total AUM (USD $45 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
Of our in-scope assets, 40% are net zero, aligned or aligning with a net zero pathway/1.5 degrees or lower.
Engagement threshold baseline
Financed emissions net zero or aligned: Of our in-scope assets, 40% are aligned or aligning with a net zero pathway/1.5 degrees or lower.
Financed emissions under engagement: Of our in-scope assets, 45% are aligned or aligning with a net zero pathway/1.5 degrees or lower or have been previously engaged.
Portfolio coverage target
Of AUM in-scope, our target for the percentage of issuers that are aligned with a net zero pathway/1.5 degrees or lower is: 50% by 2030, 100% by 2040
Engagement threshold target
Of AUM in-scope, our target percentage of issuers that are aligned with a net zero pathway/1.5 degrees or lower is: 50% by 2030, 100% by 2040.
Of AUM in-scope, our target for engagement with issuers is: 60% by 2025, 90% by 2030, 100% by 2040.
GHG scopes included:
We plan to measure scope 1 and scope 2 emissions across relevant AUM. We will take scope 3 into account where appropriate. As data quality and availability improves, we plan to further incorporate scope 3 into our analysis.
Net Zero Investment Framework
IPCC special report on global warming of 1.5°C
Proportion of AUM committed:
Of our assets under management 98% are fixed income and 2% are equities. Our 30% in scope assets encompass corporate debt and equity issuers as we believe there are existing and credible methodologies associated with these asset classes.
Currently, sovereign, municipal and securitised bonds are not included in our in-scope AUM. We will aim to update our commitment and increase the AUM in-scope over time to include sovereign, municipal and securitised bonds as we establish climate plans for additional asset classes. This commitment assumes that governments will follow through on their own commitments to ensure the objectives of the Paris Agreement are met. Our business model is comprised mostly of customised, institutional, separately managed accounts where clients determine their investment objectives and parameters. Our ability to adjust client guidelines is dependent on client consent which includes adjusting portfolio positioning to meet climate objectives. Therefore, we intend to meet our net zero commitment through engagement with in-scope issuers with respect to their decarbonization goals.
Policy on coal and other fossil fuel investments:
We do not currently have a firm wide policy on coal and other fossil fuel investment, we believe engagement with issuers is our primary lever advocate for progress toward decarbonisation goals. We will continue to review our policies and processes going forward.