US Funds

Payden Absolute Return Bond Fund (PYARX)

$10.07

NAV ($)

$-0.01

NAV change ($) as of 7/19/2019

  • Overview
  • Portfolio Statistics
  • Performance & Expenses
  • Fund Commentary
Investment Strategy

The fund's absolute return strategy seeks to have positive absolute returns over the long term, regardless of different market environments. To achieve this goal, the fund seeks to provide total return, whether through price appreciation, or income, or a combination of both. It seeks opportunities by employing a flexible approach that evaluates security attractiveness globally, both inside and outside the U.S. A special emphasis is placed on risk management seeking to mitigate potential downside.

Role In Portfolio

Absolute Return – appropriate for investors seeking steady returns, limited downside and reduced correlations with traditional asset classes. Not intended to outperform stocks and bonds during strong market rallies.

Fund Highlights
Seeks to have positive absolute returns over the long term, regardless of different market environments.
Utilizes all sectors of the fixed-income market.
Portfolio is structured with relatively low interest rate sensitivity.
The fund may not achieve its goals if the economy weakens.

Fund Snapshot
Fund Inception Date Nov 6, 2014
Share Class Inception Date Nov 6, 2014
Ticker PYARX
CUSIP 70432T107
Fund Total Net Assets $579.0 million
Benchmark ICE BofA ML US Dollar 1-Month Deposit Offered Rate Constant Maturity Index
Net Expense Ratio 0.70%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $5,000
Investor Class - IRA Account $2,000
SI Class $50,000,000
Additional Investment - All Classes$250

A Low Cost leader
Payden Absolute Return Bond Fund (PYARX) Morningstar average:
Nontraditional Bond
Net Expense Ratio 0.70% 1.40%

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.

To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.

The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.

Portfolio Characteristics
Fund Inception Date Nov 6, 2014
Share Class Inception Date Nov 6, 2014
Total Net Assets $579.0 million
Average Duration 1.8 years
Average Maturity 3.7 years
30-Day SEC Yield (07/12/19) 3.01%
30-Day SEC Yield (unsubsidized) 3.15%
Duration Breakdown
Years Percent of Portfolio
0-158%
1-319%
3-520%
5+3%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA14%
AA4%
A9%
BBB28%
BB and Below25%
Unrated20%
Total 100%
Credit breakdown represents the lower of the ratings provided by Standard & Poor's and Moody's
Sector Breakdown
Sector Percent of Portfolio
Mortgage-Backed Securities25%
Asset-Backed Securities18%
Investment Grade Corporates18%
CMBS11%
Emerging Markets9%
High Yield6%
Gov't Related4%
Money Markets3%
Cash3%
Bank Loans3%
Total 100%

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.

To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.

The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.


Total Returns
YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Quarter-end (6/30/2019) 4.07% 4.48% 3.38% N/A N/A 2.78%
Month-end (6/30/2019) 4.07% 4.48% 3.38% N/A N/A 2.78%
Yearly Returns
20180.95%
20173.40%
20163.81%
20150.93%
2014-0.20%
Expenses
Total Annual Operating Expense 0.84%
Net or Actual Operating Expense 0.70%

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.

To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.

The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.

Fund Commentary

MARKET
The month of June continued to see more trade war headlines as the G20 summit approached. Meanwhile, most major global central banks eased rates or pledged to do so in the future. As expected, the Reserve Bank of Australia (RBA) brought its key policy rate 0.25% lower to 1.25%. Citing sluggish growth, the European Central Bank also reaffirmed its commitment to accommodative actions as needed. The Federal Reserve elected to hold their policy rate steady, but the median policymaker now expects interest rates to be 0.25% lower by the end of 2020, as trade policy "crosscurrents" weighs on the outlook. Given this backdrop, government bond yields fell across developed markets whereby 5-year yields fell 0.50% in the U.S., 0.40% in Australia, and 0.20% in Europe. Moreover, the S&P 500 Index posted its best first half in 22 years, up 17% since the start of the year. Bonds also performed well, with the Bloomberg Barclays Global Aggregate Index up 1.4% for the month.
The fund continues to invest across a diversified mix of fixed-income sectors including corporate bonds, mortgage-backed, and asset-backed securities. We trimmed opportunistic exposure, primarily in emerging-market debt, high-yield corporate bonds, and BBB-rated collateralized loan obligations in an effort to crystalize profits and increase liquidity for future opportunities.

OUTLOOK
Developments on trade and the direction of global economic data continue to be drivers of market direction in the near-term. We expect U.S. GDP to slow toward trend, with growth in China and the euro area stabilizing in the latter half of 2019. U.S. core personal consumption expenditures (PCE) will revert toward 2% by year-end as transitory effects wear off. Correspondingly, faster wage growth in the U.K. and euro area point to higher core inflation. Overall, more dovish global central banks should foster economic growth and "sustain the cycle." With that said, valuations look fair and the threshold for policy missteps are high.

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.

To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.

The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.