US Funds

Payden Floating Rate Fund (PYFRX)

$9.97

NAV ($)

$0.01

NAV change ($) as of 8/13/2018

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

The 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
Fund Inception Date Nov 11, 2013
Share Class Inception Date Nov 11, 2013
Ticker PYFRX
CUSIP 704329226
Fund Total Net Assets $164.7 million
Benchmark Credit Suisse Institutional Leverage Loan BB Index
Net Expense Ratio 0.75%
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 Floating Rate Fund (PYFRX) Morningstar average:
Bank Loan
Net Expense Ratio 0.75% 1.10%

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 11, 2013
Share Class Inception Date Nov 11, 2013
Total Net Assets $164.7 million
Average Duration 0.4 years
Average Maturity 5.2 years
30-Day SEC Yield (08/10/18) 3.88%
30-Day SEC Yield (unsubsidized) 3.97%
Top Holdings
Top Holdings Percent of Portfolio
Ineos Group Holdings1.5%
US Foods1.5%
Reynolds1.4%
Sterigenics-Nordion Holdings1.3%
Sinclair Broadcasting1.3%
MGM Growth Properties1.3%
Aramark1.2%
Harbor Freight Tools1.2%
Air Canada1.2%
Caesars Entertainment Op1.2%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA4%
AA1%
A1%
BBB8%
BB44%
B40%
CCC2%
Total 100%
Credit breakdown represents the lower of the ratings provided by Standard & Poor's and Moody's
Sector Breakdown
Sector Percent of Portfolio
Floating Rate Loans74%
Corporate Bonds17%
Other5%
Cash4%
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 (6/30/2018) 1.16% 2.57% 3.25% N/A N/A 3.16%
Month-end (7/31/2018) 1.91% 2.76% 3.37% N/A N/A 3.27%
Yearly Returns
20172.82%
20166.73%
20152.11%
20141.41%
20130.50%
Expenses
Total Annual Operating Expense 0.85%
Net or Actual Operating Expense 0.75%

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 Credit Suisse BB Institutional Leveraged Loan Index generated a +0.6% return in the second quarter. Lower quality loans outperformed as single-Bs returned +0.7% and triple-Cs returned +1.8%.
Loan performance decelerated relative to the first quarter but still outperformed other fixed-income asset classes as issuers continued to feed robust demand for loans from collateralized loan obligations (CLOs) and retail investors.
The default rate, or the number of issuers that violated the terms of their credit agreement relative to the total number of issuers in the universe, was 1.99% at the end of June.

OUTLOOK
As inflows and new CLO formation continues apace, it's important to remember that fundamentals matter. Sentiment and reality appear aligned because credit fundamentals for loan issuers appear solid.
Lower yields on loans compared to high-yield bonds have been offset by near-zero sensitivity to interest rates. Loans' floating rate feature should continue to benefit the asset class as the Federal Reserve continues to raise rates.
It's notable that while coupon payments resulted in positive performance for the quarter, loan prices actually dipped a few cents relative to March 31st. This could be an opportunity for fund managers to put cash to work as loans trade slightly below par for the first time since August 2017.

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.