US Funds

Payden GNMA Fund (PYGNX)

$7.71

NAV ($)

$0.06

NAV change ($) as of 11/30/2022

  • 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 $91.1 million
Benchmark ICE BOFA US GNMA MORTGAGE BACKED SECURITIES INDEX

Net Expense Ratio 0.45%
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 0.45% 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.

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
Fund Inception Date Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Total Net Assets $91.1 million
Average Duration 6.4 years
Average Maturity 9.0 years
30-Day SEC Yield (11/30/22) 2.92%
30-Day SEC Yield (unsubsidized) 2.70%
Duration Breakdown
Years Percent of Portfolio
0-12%
1-310%
3-511%
5-749%
7-1028%
Total 100%
GNMA Coupon Allocation
Coupon Percent of Portfolio
2.0%18%
2.5%21%
3.0%20%
3.5%14%
4.0%10%
>=4.5%17%
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.

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.


Total Returns
YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Quarter-end (9/30/2022) -13.62% -14.30% -4.00% -1.34% 0.00% 3.59%
Month-end (10/31/2022) -14.67% -15.01% -4.47% -1.55% -0.08% 3.52%
Yearly Returns
2021-1.84%
20204.26%
20195.67%
20180.38%
20171.31%
20161.78%
20151.20%
20145.95%
2013-3.24%
20123.60%
Expenses
Total Annual Operating Expense 0.69%
Net or Actual Operating Expense 0.45%

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.

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.

Fund Commentary

MARKET
The Ginnie Mae ("GNMA") mortgage market, including competing fixed-income and equity sectors, remains under pressure from higher interest rates and macro market turbulence. GNMA bond prices and risk premiums are hovering near their weakest levels of the market cycle with the sector underperforming U.S. Treasuries.
The markets are currently weighing high current inflation readings with recessionary fears given the cumulative impact of higher rates over the past year. The Federal Reserve (Fed) remains committed to tighter monetary policy until inflation is under control.
Mortgage prepayment speeds have normalized at low levels with primary mortgage rates at 7.0%.

OUTLOOK
Volatility should remain elevated but normalize with time as the Fed’s rate hike path becomes more certain. Higher mortgage rates have stabilized the prepayment outlook. Mortgage valuations are at their cheapest levels in a decade.
Higher yields may encourage traditional investors to return to the agency mortgage market to replace the Fed as the marginal buyer. New GNMA yield opportunities range between 5.5% and 6.5%.
The fund has a modest underweight to lower mortgage coupons that are most sensitive to higher rates and an exit of Fed support. The Fund is positioned for an environment of slower refinance activity by pivoting to semi-seasoned mortgage and adjustable-rate mortgage bonds that should exhibit higher baseline turnover prepayment experiences.

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.

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.