US Funds

Payden GNMA Fund (PYGNX)

$7.54

NAV ($)

$-0.03

NAV change ($) as of 6/17/2024

  • 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 - 05/31/2024
Fund Inception Date Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Ticker PYGNX
CUSIP 704329473
Fund Total Net Assets $100.5 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 - 05/31/2024
Fund Inception Date Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Total Net Assets $100.5 million
Average Duration 5.8 years
Average Maturity 8.2 years
30-Day SEC Yield (05/31/24) 3.89%
30-Day SEC Yield (unsubsidized) 3.67%
Duration Breakdown
Years Percent of Portfolio
0-38%
3-517%
5-773%
7-102%
Total 100%
GNMA Coupon Allocation
Coupon Percent of Portfolio
2.0%16%
2.5%20%
3.0%16%
3.5%13%
4.0%7%
4.5%5%
5.0%6%
5.5%10%
>=6.0%7%
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 (3/31/2024) -1.09% 0.85% -3.60% -0.88% 0.65% 3.56%
Month-end (5/31/2024) -2.07% 0.24% -3.86% -1.29% 0.38% 3.49%
Yearly Returns
20234.52%
2022-12.55%
2021-1.84%
20204.26%
20195.67%
20180.38%
20171.31%
20161.78%
20151.20%
20145.95%
Expenses
Total Annual Operating Expense 0.63%
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 - 05/31/2024

MARKET
The Ginnie Mae (GNMA) mortgage market and the Fund experienced their best monthly performance for the year as interest rates declined on positive inflation signs and moderating employment conditions.
GNMA mortgage-backed securities also outperformed U.S. Treasuries and corporate bonds in a rebound from April. GNMA mortgage risk premiums compressed on solid demand from money managers and increased participation from domestic financial institutions. Implied volatility continued its trend lower which proved supportive of agency mortgage valuations.
For the month, the GNMA mortgage current coupon yield fell 0.25% to 5.73%, a level that remains historically elevated.

OUTLOOK
We remain constructive on the GNMA mortgage market with an expectation of modestly lower yields and a compression in risk premiums to long-term averages. The asset class is relatively attractive to corporate credit and higher rates have stabilized the prepayment outlook. We expect money manager demand to remain strong with incremental support from domestic and foreign banks.
The Payden GNMA Fund has a slight long-duration bias, relative to the benchmark, expressed in an overweight to discount, lower coupons. We also expect the “higher for longer” Federal Reserve monetary policy narrative to benefit the Fund’s allocation to short-duration mortgage securities, including adjustable-rate mortgages, agency multifamily commercial mortgage-backed securities, and collateralized mortgage obligations floating-rate bonds.
The Fund favors securities that exhibit stable prepayment attributes including seasoned, loan balance, and 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 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.