US Funds

Payden Absolute Return Bond Fund (PYARX)

$10.07

NAV ($)

$0.01

NAV change ($) as of 2/23/2018

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

The Payden Absolute Return Bond Fund invests in a diversified, multi-sector portfolio of government, corporate, securitized and emerging-market debt. The fund can move dynamically among sectors and individual securities to add value while aiming to achieve its LIBOR +3% return objective. It benefits from Payden's broad investment resources by incorporating the most compelling risk-adjusted opportunities from each sector team. 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 $248.8 million
Benchmark ICE BofA ML LIBOR 1-Month Constant Maturity Index
Net Expense Ratio 0.70%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $100,000
Investor Class - IRA $100,000
Advisor Class - Regular Account $5,000
Advisor Class $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 $248.8 million
Average Duration 1.8 years
Average Maturity 3.4 years
30-Day SEC Yield (02/16/18) 2.14%
30-Day SEC Yield (unsubsidized) 1.85%
Duration Breakdown
Years Percent of Portfolio
0-149%
1-331%
3-517%
5-103%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA19%
AA16%
A16%
BBB20%
BB and Below22%
Unrated7%
Total 100%
Credit breakdown represents the lower of the ratings provided by Standard & Poor's and Moody's
Sector Breakdown
Sector Percent of Portfolio
Gov't Related24%
MBS24%
Investment Grade Corporates20%
ABS18%
Emerging Markets7%
Bank Loans3%
Other4%
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 (12/31/2017) 3.40% 3.40% 2.70% N/A N/A 2.51%
Month-end (1/31/2018) 0.07% 3.07% 2.62% N/A N/A 2.46%
Yearly Returns
20173.40%
20163.81%
20150.93%
2014-0.20%
Expenses
Total Annual Operating Expense 0.97%
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
In the month of January, evidence of the global growth recovery continued to pile up. Data in the International Monetary Fund’s January World Economic Outlook suggested that 2018 will see the fewest countries in recession on record (the data goes back to 1980), with just 3% of the world’s economies expected to be contracting in 2018.
Although valuations appear stretched, spread sectors continued to grind tighter to start the year. Investment-grade corporate, emerging market debt and high yield corporate spreads compressed approximately 0.1%, 0.2% and 0.3%, respectively.
However, total returns were negative for most spread sectors as higher government bond yields weighed more on performance than tighter credit spreads. Notably, 5-year government bond yields were higher by +0.31% in the US, +0.29% in Germany, and +0.26% in the UK.

OUTLOOK
The portfolio remains structured with low interest rate sensitivity as we continue to invest in a diversified mix of fixed-income sectors including corporate, mortgage-backed and asset-backed securities.
Although we are comforted by positive developments in the global economy, we believe geopolitical risk and fair valuations across risk assets remain harbingers of heightened volatility going forward.

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.