Payden & Rygel Investment Management

US Funds

Payden Floating Rate Fund (PYFRX)

$9.78

NAV ($)

$0.00

NAV change ($) as of 10/11/2024

Overview
Portfolio Statistics
Performance & Expenses
Fund Commentary

Investment Strategy

The Payden Floating Rate Fund’s investment objective is to seek a high level of current income through floating-rate debt instruments, with a secondary objective of long-term capital appreciation. At least 80% of fund assets will be floating rate. The fund generally invests in the higher-quality segment of the market and looks for companies with good growth prospects, superior products, and strong management teams.

Role In Portfolio

High-yield loans – Appropriate for investors who seek higher yields but do not want significant exposure to interest rate risk. Loans can be used as a hedge against rising interest rates in fixed-income portfolios as they are historically negatively correlated with Treasuries.

Fund Highlights

	High-yield loan focus. Opportunistic exposure to short-term high-yield corporates.
	Payden primarily focuses on the higher quality end of the high-yield loan market. We believe that the risk-return profile of BB and high single-B rated loans is superior to that of lower-rated loans.
	Due to the size of the fund, we can buy the loans we want and get meaningful new issuance allocations, which is difficult for funds with assets above $1 billion.
	The primary risk to the fund is a downturn in the economy.

Fund Snapshot - 09/30/2024

Fund Inception Date	Nov 11, 2013
Share Class Inception Date	Nov 11, 2013
Ticker	PYFRX
CUSIP	704329226
Fund Total Net Assets	$120.3 million
Benchmark	Credit Suisse Institutional Leveraged Loan BB Index
Net Expense Ratio	0.71%
Sales Charge	None

Investment Minimum
Investor Class - Regular Account	$100,000
Investor Class - IRA Account	$100,000
Adviser Class - Regular Account	$5,000
Adviser Class - IRA Account	$2,000
SI Class	$10,000,000
Additional Investment - All Classes	$250

A Low Cost leader

	Payden Floating Rate Fund (PYFRX)	Morningstar average: Bank Loan
Net Expense Ratio	0.71%	1.10%

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investorsâ€™ 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 Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.

Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.

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 - 09/30/2024

Fund Inception Date	Nov 11, 2013
Share Class Inception Date	Nov 11, 2013
Total Net Assets	$120.3 million

Average Duration	0.3 years
Average Maturity	5.1 years
30-Day SEC Yield	8.04%
30-Day SEC Yield (unsubsidized)	7.82%

Top Holdings

Top Holdings	Percent of Portfolio
Aggreko	1.3%
Flynn Restaurant	1.2%
Banijay Entertainment	1.1%
Tk Elevator	1.1%
Omnia Partners Llc	1.1%
Perrigo Co Ltd	1.1%
Frontier Communications	1.1%
Madison	1.0%
Cloud Software Grp	1.0%
CNT Holdings I	1.0%

Credit Breakdown

Credit Quality	Percent of Portfolio
AAA	1%
BBB	3%
BB	42%
B	46%
CCC	4%
Unrated	4%
Total	100%

Security ratings are assigned using the highest rating of Moody’s, S&P, and Fitch.

Sector Breakdown

Sector	Percent of Portfolio
Bank Loans	87%
Corporate Bonds	7%
Asset Backed Securities	5%
Cash	1%
Total	100%

		Number of funds
	Overall	209
	3 Year	209
Category: Bank Loan	5 Year	204
Criterion: Risk-Adjusted Return	10 Year	166

Total Returns

	YTD	1 Year	3 Year	5 Year	10 Year	Since Inception
Quarter-end (9/30/2024)	6.55%	9.79%	6.66%	5.30%	4.50%	4.31%
Month-end (9/30/2024)	6.55%	9.79%	6.66%	5.30%	4.50%	4.31%

Yearly Returns

2023	12.86%
2022	0.28%
2021	3.93%
2020	1.72%
2019	8.49%
2018	0.31%
2017	2.82%
2016	6.73%
2015	2.11%
2014	1.41%

Expenses

Total Annual Operating Expense	0.91%
Net or Actual Operating Expense	0.71%

(A) An overall rating is based on a weighted average of the fundâ€™s ratings for the three-, five- and ten-year periods, if applicable. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating (based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars and the next 22.5% receive four stars. Highly rated funds are defined as those that have a four or five star Morningstar rating. Data provided by Morningstar, Inc. Although gathered from reliable sources, data completeness and accuracy cannot be guaranteed. Morningstar is a registered trademark of Morningstar, Inc. and is not affiliated with Payden Funds

Fund Commentary - 09/30/2024

MARKET
	The Credit Suisse BB Institutional Leveraged Loan Index returned +1.9% during the quarter. Compared to this return, high-yield bonds returned +5.3% and high-grade bonds returned +5.7%.
	Loan issuance during the quarter was $205 billion ($44 billion net of refinancing and repricing) as loan issuance decelerated dramatically due to expectations for falling rates.
	The loan default rate was 3.7% over the trailing 12 months.

OUTLOOK
	Declining Secured Overnight Financing Rate (SOFR) rates may reduce yields, but they also increase cash flows to bank loan issuers, which is positive for fundamentals.
	Interest coverage ratios have fallen from all-time highs but are moderating well above historical averages. Now that the Federal Reserve has entered the rate-cut phase of the monetary policy cycle, most loan issuers are well positioned from a balance-sheet standpoint.
	While loan returns have been consistently positive over the last several quarters, we believe loan valuations nonetheless remain attractive at a roughly 8.25% yield to maturity.

U.S. mutual funds

Disaster Recovery and Business Continuity Preperations

Payden & Rygel has developed a Business Continuity Plan to ensure that all critical functions continue in the event of a disruption in normal operations.

The firm has configured data replication servers and related infrastructure in its Boston, Massachusetts office. Data on critical Los Angeles servers is replicated to corresponding servers in the Boston location on a live basis throughout each day. In addition, other servers and databases are backed up, sent electronically to Boston, and restored at the end of each day. The firm has established a dedicated high-speed connection between the Los Angeles and Boston offices to facilitate the secure transmission of data backups.

A number of individuals from the Trading, Portfolio Operations, Information Technology, Compliance and Portfolio Management departments have been selected to connect remotely to the Boston office to complete their daily responsibilities, in the event of a disruption to normal business operations. The firm has implemented a VMWare virtual environment for each of these individuals so that they each have their own remote desktop in Boston to which they securely connect using a laptop or desktop computer with an Internet connection. Our expectation is that routine business operations will resume within 24 hours of a business continuity event. In addition, the Boston office has capacity to accommodate additional employees if a physical relocation of selected Los Angeles employees is necessary.

The firm uses a third-party hosted mass notification system to quickly communicate with all employees in the event of a disruption in operations. The system allows management to compose a text or voice message notifying employees of the event, which is then sent automatically to employees' mobile phones, home phones, and e-mail addresses. Employees indicate their receipt of the message from their phone or mobile device, which allows management to immediately review summary reports of the employees who are aware of the disruption. Additional instructions and updates can then be sent to all staff, as necessary under the circumstances.

In the event that our Business Continuity Plan is activated and Los Angeles office phone lines are down, the Los Angeles phone numbers are re-directed to the Boston office. Boston-based staff will direct callers to the mobile phones of key portfolio professionals, as necessary. All key investment personnel have access to firm e-mail on mobile devices. E-mail delivery to Payden & Rygel addresses is not dependent on the availability of either Los Angeles or Boston servers. Finally, Boston-based staff has access to portfolio management and reporting information independent of Los Angeles technology availability.

The transfer agent for the Payden Funds is not located in Payden & Rygel's offices. The transfer agent for all of the funds maintains all shareholder records and will continue to receive all shareholder calls related to their accounts.

On at least a quarterly basis, several employees from the departments specified above will remotely connect to the Boston office to test the infrastructure by conducting their daily job responsibilities, including the execution, ticketing, settlement and processing of securities trades.

The Business Continuity Plan was developed and is monitored by a committee of senior managers, including the heads of the Trading, Portfolio Operations, Compliance and Information Technology departments. The committee meets regularly to discuss any necessary updates to the Plan and coordinates ongoing tests of the Boston location by a team of employees from various departments. The committee also solicits feedback from personnel based on the ongoing tests and promptly makes adjustments to the Plan and the Boston office resources, as necessary.

Updates to the Business Continuity Plan will be posted on this website page and a copy of the Plan may also be obtained by written request.

Privacy Notice

Payden & Rygel respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner and in compliance with applicable legal and regulatory requirements.

Collection of Information

To meet those expectations, we must collect and maintain certain personal information that is required by state and federal agencies, such as name, address and tax ID. We may collect or capture nonpublic information about you from the following sources:

Client onboarding forms;
Oral conversations or written correspondence between you and your Payden & Rygel representatives; and
Electronic sources, such as our Web site, or E-Mails.

Payden & Rygel clients have the right to: (i) be informed, at or before the point of collection, of the categories of personal information to be collected and the purposes for which the categories of personal information shall be used; and (ii) be informed of (a) the categories of personal information Payden & Rygel has collected about them; (b) the specific pieces of personal information Payden & Rygel has collected about them; (c) the categories of sources from which Payden & Rygel has collected the personal information; (d) the business or commercial purpose for collecting the personal information; and (e) the categories of third parties with whom Payden & Rygel share personal information about any client.

Disclosure of information

We do not disclose any nonpublic personal and account information about our clients, or former clients, to anyone, except as permitted by law.

In this regard, we may disclose such information to our affiliates, including Payden & Rygel Global Limited; Treasury Plus, Inc.; and Payden & Rygel Distributors. We also may disclose such information to unaffiliated third parties who are service providers to Payden & Rygel, such as broker-dealers, transfer agents or custodians. In each case, such disclosure is permitted by law, and the recipients are permitted to use it only as needed to provide agreed services to you. Finally, we may also disclose information to appropriate government agencies, and to others, as required by law or to prevent fraud.

We do not sell personal information collected, nor make that personal information available on-line. To change your personal information, call Payden & Rygel at (213) 625-1900 and request to speak to your Payden & Rygel representative.

Internal access to information and safeguards

We limit access to your personal and account information to those employees who need to know that information so that we can provide products and services to you. We also maintain physical, electronic and procedural safeguards to protect your nonpublic personal and account information. Finally, when we dispose of such information, we have in place policies and procedures to assure that such information is properly stored and shredded in the case of documentary material and erased in the case of electronic media so that in either case the information cannot be practicably read or reconstructed.

As required by U.S. federal law, Payden & Rygel will update this information at least annually.

Revised: August 4, 2020

Prospectus APPENDIX B

Privacy Notice

The Funds respect your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner and in compliance with applicable legal and regulatory requirements.

Collection of Information

The Fund application, or other forms;
Oral conversations or written correspondence between you and our representatives;
Your transactions with us; and
Electronic sources, such as our Web site, or E-Mails.

Disclosure of Information

We do not disclose any nonpublic personal and account information about our customers, or former customers, to anyone, except as permitted by law.

In this regard, we may disclose such information to our affiliates, including the Funds’ investment adviser, Payden & Rygel; administrator, Treasury Plus, Inc.; and distributor, Payden & Rygel Distributors. We also may disclose such information to unaffiliated third parties who are service providers to you or to the Funds, such as broker-dealers, transfer agents, custodians, or our mail processing firm. In each case, such disclosure is permitted by law, and the recipients are permitted to use it only as needed to provide agreed services to you. Finally, we may also disclose information to appropriate government agencies, and to others, as required by law or to prevent fraud.

We do not sell personal information collected, nor make that personal information available on-line. To change your personal information, call Paydenfund Shareholder Services at 800-572-9366 and request the forms necessary to make any such changes.

Internal Access to Information and Safeguards

As required by U.S. federal law, Payden & Rygel will update this information at least annually.

Revised: July 2020

Payden Floating Rate Fund (PYFRX)

$9.78

$0.00

Investment Strategy

Role In Portfolio

Fund Highlights

Fund Snapshot - 09/30/2024

A Low Cost leader

Portfolio Characteristics - 09/30/2024

Top Holdings

Credit Breakdown

Sector Breakdown

Total Returns

Yearly Returns

Expenses

Fund Commentary - 09/30/2024

U.S. mutual funds

Contact US - Payden Funds

Career Opportunities

Disaster Recovery and Business Continuity Preperations

Environmental, Social, and Governance (ESG)

& STEWARDSHIP

Privacy Notice

Collection of Information

Disclosure of information

Internal access to information and safeguards

Payden & Rygel Global Limited

Legal Notices

Payden Global SIM SpA

Legal Notices

Terms of Use

Legal Disclaimer

KEY INVESTOR INFORMATION DOCUMENTS (KIIDS)

Privacy Notice

Collection of Information

Disclosure of Information

Internal Access to Information and Safeguards