US Funds

Payden Absolute Return Bond Fund (PYARX)

$10.00

NAV ($)

$0.00

NAV change ($) as of 5/22/2019

  • 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 $498.2 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 $100,000
Investor Class - IRA Account $100,000
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 $498.2 million
Average Duration 1.7 years
Average Maturity 4.1 years
30-Day SEC Yield (05/17/19) 3.76%
30-Day SEC Yield (unsubsidized) 2.94%
Duration Breakdown
Years Percent of Portfolio
0-152%
1-325%
3-519%
5+4%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA9%
AA19%
A5%
BBB26%
BB and Below24%
Unrated17%
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 Securities22%
Gov't Related17%
Investment Grade Corporates17%
Asset-Backed Securities16%
Emerging Markets10%
CMBS9%
High Yield5%
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 (3/31/2019) 2.26% 2.73% 3.34% N/A N/A 2.53%
Month-end (4/30/2019) 2.79% 3.32% 3.21% N/A N/A 2.60%
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 April was underscored by continued improvement in financial conditions and corresponding asset prices when compared to the end of 2018. Central banks remained dovish and global economic data stabilized, causing volatility to decline and investor confidence to improve.
More Brexit “deadlines” have come and gone, leaving further uncertainty over how negotiations will play out, while also dampening concerns in the region regarding a near-term adverse outcome. The US and China have yet to come to terms on a new trade deal, yet there is newfound optimism surrounding an expected deal in the first weeks of May.
Global equities returned nearly 4% in April, bringing the year to date return up to 17%. Most fixed income asset classes generated positive returns over the month. Moreover, most developed global government bond yields modestly increased in April, contrasted by Australia where 2-year and 5-year government yields declined following further indications of a weakening economy. Meanwhile, oil crept higher over the month, peaking over $66 per barrel (almost $21 higher than the price at the end of 2018).

OUTLOOK
Economic data continues to favor the cycle progressing through the end of 2019. US manufacturing and services purchasing managers index (PMI) remains in expansionary territory. The bearish tone surrounding the European economy has slightly dissipated in the last month, with Eurozone manufacturing PMI showing a minor improvement after declining for eight straight months. China’s manufacturing PMI rose into expansionary territory, a signal that typically leads Eurozone activity.
The risk of an imminent global recession (in 2019) remains low as global growth remains stable (strong in the US and relatively benign in China/Europe), global unemployment figures are still improving (declining), and global central banks exhibit continued support for markets.
Given implied volatility is low relative to historic averages, the strategy aims to modestly increase the tail risk hedging program via select cheap insurance options for implementation. Considering prices have recovered back toward end of Q3 2018 levels, the strategy maintains a balanced posture, well-diversified among sub-sectors and skewed toward higher quality bonds.

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.