US Funds

Payden GNMA Fund (PYGNX)

$7.59

NAV ($)

$0.02

NAV change ($) as of 7/25/2025

  • 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 U.S. 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 - 06/30/2025
Fund Inception Date Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Ticker PYGNX
CUSIP 704329473
Fund Total Net Assets $90.4 million
Benchmark ICE BofA U.S. 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

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 Payden Funds 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 - 06/30/2025
Fund Inception Date Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Total Net Assets $90.4 million
Average Duration 5.6 years
Average Maturity 6.7 years
30-Day SEC Yield 4.11%
30-Day SEC Yield (unsubsidized) 3.90%
Duration Breakdown
Years Percent of Portfolio
0-12%
1-39%
3-526%
5-752%
7-1011%
Total 100%
GNMA Coupon Allocation
Coupon Percent of Portfolio
2.0%12%
2.5%17%
3.0%14%
3.5%12%
4.0%6%
4.5%5%
5.0%10%
5.5%13%
>=6.0%11%
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 Payden Funds 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 (6/30/2025) 3.96% 5.99% 1.62% -1.15% 0.77% 3.61%
Month-end (6/30/2025) 3.96% 5.99% 1.62% -1.15% 0.77% 3.61%
Yearly Returns
20240.82%
20234.52%
2022-12.55%
2021-1.84%
20204.26%
20195.67%
20180.38%
20171.31%
20161.78%
20151.20%
Expenses
Total Annual Operating Expense 0.67%
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 Payden Funds 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 - 06/30/2025

MARKET
During the quarter, the Ginnie Mae (GNMA) mortgage market was subject to higher levels of price volatility amid shifting U.S. trade policy, growing fiscal deficit concerns, and heightened geopolitical tensions. The sector, however, recovered in June to post positive total returns for the period alongside a retracement in risk premiums.
The Federal Reserve (Fed) maintained its current monetary policy stance during its May and June meetings, adopting a “wait-and-see” approach in response to mixed economic data and ongoing fiscal uncertainty. U.S. tariff policy continues to pose a challenge, compelling the Fed to balance near-term inflationary pressures with the need to support long-term growth and employment. In response, market expectations for federal rate cuts in 2025 were revised downward, from four cuts to two.
The agency mortgage market outperformed U.S. Treasuries at the end of the quarter as interest rate volatility eased and trade tensions abated. The sector also benefited from signals from the Trump administration supporting the continuation of the implicit guarantee, amid ongoing discussions about the potential privatization of Fannie Mae and Freddie Mac. Meanwhile, 30-year primary mortgage rates edged lower to 6.75%, though affordability remains a challenge for many homeowners.

OUTLOOK
U.S. tariff policy puts the Fed in a difficult position, forcing it to weigh short-term inflationary pressures against the risk of weaker long-term growth and employment. We expect this uncertainty will dampen growth more than it will drive inflation, leading to more rate cuts than the market currently anticipates.
We believe GNMA mortgage-backed securities are well-positioned to benefit from a return to market stability and a potential economic slowdown that leads to lower interest rates. GNMA valuations remain near their most attractive levels relative to U.S. Treasuries since late 2024, making them appealing to domestic banks and money managers. In an uncertain economic environment, GNMA bonds offer a compelling alternative to corporate credit.
The Payden GNMA Fund maintains a slight long-duration position relative to its benchmark, while underweighting the highest coupon securities to mitigate prepayment (call) risk. The Fund also holds allocations in adjustable-rate mortgages and collateralized mortgage obligations, floating-rate bonds, which should benefit from increased demand among financial institutions. Additionally, the Fund favors securities with stable prepayment behavior, such as seasoned, low loan balance, and manufactured housing (mobile home) pools.

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 Payden Funds 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.