US Funds

Payden GNMA Fund (PYGNX)

$9.19

NAV ($)

$0.01

NAV change ($) as of 2/23/2018

  • 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 $218.4 million
Benchmark ICE BofA Merrill Lynch GNMA Master Index
Net Expense Ratio 0.50%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $100,000
Investor Class - IRA $100,000
Advisor Class - Regular Account $5,000
Advisor Class $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 $218.4 million
Average Duration 5.6 years
Average Maturity 9.0 years
30-Day SEC Yield (02/16/18) 2.88%
30-Day SEC Yield (unsubsidized) 2.80%
Duration Breakdown
Years Percent of Portfolio
0-13%
1-32%
3-559%
5-736%
Total 100%
GNMA Coupon Allocation
Coupon Percent of Portfolio
Less than 3%0%
3.0%36%
3.5%37%
4.0%7%
4.5%10%
5.0% and Above10%
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 230
3 Year 230
Category: Intermediate Government 5 Year 221
Criterion: Risk-Adjusted Return 10 Year 167

Total Returns
YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Quarter-end (12/31/2017) 1.31% 1.31% 1.43% 1.36% 3.90% 4.90%
Month-end (1/31/2018) -1.12% 0.34% 0.81% 1.29% 3.60% 4.82%
Yearly Returns
20171.31%
20161.78%
20151.20%
20145.95%
2013-3.24%
20123.60%
20118.18%
20106.70%
20096.48%
20087.69%
Expenses
Total Annual Operating Expense 0.69%
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
The fourth quarter was underscored by monetary policy normalization as the global economic outlook brightened. The Federal Reserve (Fed) raised the overnight lending rate for the third time in 2017 and commenced the gradual exit from quantitative easing by reducing asset purchases of agency mortgage and U.S. Treasury holdings. With inflation expectations contained, the differential between short-maturity and long-maturity U.S. Treasury rates have compressed, led by an increase in two-year yields by 0.40% compared to a modest 0.07% increase in longer-term 10-year securities.
A favorable risk and volatility environment helped U.S. agency mortgages outperform U.S. Treasuries; however, risk was not uniform as Ginnie Mae (GNMA) securities struggled against Fannie Mae and Freddie Mac, with heavy supply and faster prepayment expectations.
The change in yields also favored mortgage pools with lower coupons (and longer-maturities) compared to seasoned, higher coupon securities. Aggressive refinancing (churning) of Veteran's Administration continued to have an adverse impact on GNMA valuations.

OUTLOOK
We expect the Fed to continue to normalize monetary policy with incremental rate hikes and an end to their balance sheet reinvestment program by late summer of 2018.
Despite headwinds from the Fed, a favorable macro picture of low inflation, robust demand for yield, and a stable refinance environment should support agency mortgage market valuations.
The fund is managed as an intermediate-bond vehicle ideal for investors desiring a safe haven from credit risk with an incremental yield over U.S. Treasury securities. The fund is positioned to benefit from a benign to modestly higher interest rate environment. The fund is also underweight the mortgage current/production coupons that are most at risk to a limited footprint by the Federal Reserve. We continue to add securities that have favorable attributes to mitigate prepayment risk.

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.