Payden Floating Rate Fund (PYFRX)
$9.95
NAV ($)
$-0.01
NAV change ($) as of 9/17/2019
- 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 | $81.1 million |
| Benchmark | Credit Suisse Institutional Leverage Loan BB Index |
| Net Expense Ratio | 0.75% |
| 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 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 | $81.1 million |
| Average Duration | 0.3 years |
| Average Maturity | 5.1 years |
| 30-Day SEC Yield (09/06/19) | 4.21% |
| 30-Day SEC Yield (unsubsidized) | 3.51% |
Top Holdings
| Top Holdings | Percent of Portfolio |
|---|---|
| MGM Growth Properties | 1.9% |
| US Foods | 1.8% |
| GOBP Holdings | 1.7% |
| Reynolds | 1.6% |
| Jane Street | 1.6% |
| Burlington Coat Factory | 1.5% |
| Berry Plastics | 1.5% |
| Dell | 1.5% |
| Marriott | 1.5% |
| BJ'S Wholesale Club | 1.5% |
Credit Breakdown
| Credit Quality | Percent of Portfolio |
|---|---|
| AAA | 5% |
| BBB | 6% |
| BB | 41% |
| B | 42% |
| CCC | 5% |
| Unrated | 1% |
| Total | 100% |
Sector Breakdown
| Sector | Percent of Portfolio |
|---|---|
| Floating Rate Loans | 76% |
| Corporate Bonds | 10% |
| Asset Backed Securities | 9% |
| Cash | 5% |
| 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.
| Number of funds | |||
|---|---|---|---|
 |
Overall |  |
219 |
| 3 Year | |
219 | |
| Category: Bank Loan | 5 Year | |
197 |
| Criterion: Risk-Adjusted Return | |||
Total Returns
| YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
|---|---|---|---|---|---|---|
| Quarter-end (6/30/2019) | 5.32% | 4.43% | 4.06% | 3.31% | N/A | 3.39% |
| Month-end (8/31/2019) | 6.08% | 4.07% | 3.73% | 3.44% | N/A | 3.42% |
Yearly Returns
| 2018 | 0.31% |
| 2017 | 2.82% |
| 2016 | 6.73% |
| 2015 | 2.11% |
| 2014 | 1.41% |
| 2013 | 0.50% |
Expenses
| Total Annual Operating Expense | 0.86% |
| 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.
(A) An overall rating is based on a weighted average of the fund’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 Paydenfunds
Fund Commentary
| MARKET | |
| The Credit Suisse BB Institutional Leveraged Loan Index returned +1.7% in the second quarter. Single-Bs underperformed as they returned +1.5% while triple-Cs outperformed +2.4%. | |
| Loans generated positive performance in the second quarter but lagged bonds, which benefited from falling interest rates and call protection. The average loan price rose to $98.24 during the quarter. | |
| The default rate, or the par-weighted value of issuers that violated the terms of their credit agreement relative to the total number of issuers in the universe, was 1.27% as of June 30, 2019. | |
| OUTLOOK | |
| Loans have posted solid absolute returns in 2019 but performance relative to bonds has been lackluster as this floating rate asset class has priced in lower interest rates. Nonetheless, year-to-date performance is solid for the asset class. | |
| Loans trading in the low $98 range could offer an attractive opportunity to deploy capital into an asset class that typically offers senior security compared to bonds which are usually unsecured. | |
| Although trade issues and geopolitics will likely continue to drive volatility, positive fundamentals and reasonable valuations leave us constructive on leveraged loans. | |
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.