US Funds

Payden GNMA Fund (PYGNX)

$9.38

NAV ($)

$-0.01

NAV change ($) as of 9/17/2019

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

The Payden GNMA Fund invests at least 80% of its assets in mortgage-backed securities that are guaranteed by the full faith and credit of the U.S. Government. The fund invests in a range of mortgage-backed security pools. The balance of the fund’s assets is invested in other obligations guaranteed by the U.S. Government or its agencies.

Role In Portfolio

Appropriate for investors who seek higher yields and diversification through debt issued by the Government National Mortgage Association.

Fund Highlights
Yields generally exceed intermediate-maturity Treasuries
100% invested in securities issued by the U.S. Government or its agencies
While share values will fluctuate as interest rates move up and down, there is no corporate credit risk associated with the portfolio's holdings
The value of an investment will generally fall when interest rates rise

Fund Snapshot
Fund Inception Date Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Ticker PYGNX
CUSIP 704329473
Fund Total Net Assets $135.2 million
Benchmark ICE BofA ML US GNMA Mortgage Backed Securities Index
Net Expense Ratio 0.50%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $5,000
Investor Class - IRA Account $2,000
Additional Investment - All Classes$250

A Low Cost leader
Payden GNMA Fund (PYGNX) Morningstar average:
Intermediate Government
Net Expense Ratio 0.50% 0.94%

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 Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Total Net Assets $135.2 million
Average Duration 2.3 years
Average Maturity 5.5 years
30-Day SEC Yield (09/06/19) 3.04%
30-Day SEC Yield (unsubsidized) 3.02%
Duration Breakdown
Years Percent of Portfolio
0-126%
1-338%
3-536%
Total 100%
GNMA Coupon Allocation
Coupon Percent of Portfolio
3.0%26%
3.5%39%
4.0%22%
4.5%6%
5.0% and Above7%
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 208
3 Year 208
Category: Intermediate Government 5 Year 192
Criterion: Risk-Adjusted Return 10 Year 149

Total Returns
YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Quarter-end (6/30/2019) 4.16% 5.82% 1.51% 2.18% 3.30% 4.76%
Month-end (8/31/2019) 5.52% 6.76% 1.90% 2.34% 3.25% 4.79%
Yearly Returns
20180.38%
20171.31%
20161.78%
20151.20%
20145.95%
2013-3.24%
20123.60%
20118.18%
20106.70%
20096.48%
Expenses
Total Annual Operating Expense 0.68%
Net or Actual Operating Expense 0.50%

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
Bonds have the peculiar habit of performing well when times are tough. Despite underperforming U.S. Treasuries and other risk assets, the second quarter was an exceptionally strong period for Ginnie Mae mortgage-backed securities (GNMA MBS), adding to the already robust first quarter. Interest rates fell sharply, thus prices rose, stemming from political headlines, global tremors, and changing central bank views.
The Federal Open Market Committee maintained its targeted range for the federal funds rate at 2.25% to 2.50%, given solid growth and jobs fundamentals; however, the Federal Reserve (Fed) indicated that the potential for rate cuts has increased given global uncertainties.
Prepayments have steadily increased on the agency mortgage complex as mortgage rates declined to levels that expose forty-percent of the mortgage market to a refinance opportunity. We have biased the fund to lower coupons to mitigate reinvestment risk.

OUTLOOK
We expect the mortgage sector to perform well over the rest of the year. Valuations are fair and if the market is correct in forecasting an economic slowdown, the high-quality cash flows from agency mortgage-backed securities will get additional investor support in the form of flows from riskier asset classes.
The fund is positioned to benefit from declining interest rates, higher volatility, and a dovish shift in Fed monetary policy accommodation with a longer duration and lower coupon bias.
With the expectation of a pickup in refinance activity over the coming months, the fund favors securities that exhibit stable-to-slower prepayment attributes.

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.