US Funds

Payden GNMA Fund (PYGNX)

$7.75

NAV ($)

$0.01

NAV change ($) as of 9/29/2025

  • 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 - 08/31/2025
Fund Inception Date Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Ticker PYGNX
CUSIP 704329473
Fund Total Net Assets $87.0 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 - 08/31/2025
Fund Inception Date Aug 27, 1999
Share Class Inception Date Aug 27, 1999
Total Net Assets $87.0 million
Average Duration 5.6 years
Average Maturity 6.9 years
30-Day SEC Yield 4.29%
30-Day SEC Yield (unsubsidized) 4.09%
Duration Breakdown
Years Percent of Portfolio
0-12%
1-310%
3-527%
5-745%
7-1016%
Total 100%
GNMA Coupon Allocation
Coupon Percent of Portfolio
2.0%12%
2.5%18%
3.0%13%
3.5%11%
4.0%6%
4.5%5%
5.0%10%
5.5%13%
>=6.0%12%
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 (8/31/2025) 5.21% 3.06% 2.11% -0.88% 0.86% 3.64%
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 - 08/31/2025

MARKET
The Ginnie Mae (GNMA) mortgage market recorded positive performance in August as interest rates declined following a disappointing employment report and more dovish comments from Federal Reserve (Fed) committee members. Markets now see a greater chance of rate cuts, even though economic growth has been solid, and inflation remains above the Fed’s 2.0% objective.
Short-term yields fell sharply, with the 2-year U.S. Treasury down 30 basis points (bps) to 3.65%. Longer-term yields moved less, with the 10-year down 15 bps to 4.20%. Primary mortgage rates eased slightly lower near 6.50%–6.625%.
The yield curve steepened, typically seen when the Fed cuts rates, amplified by political pressure on Fed independence. The administration’s push to replace a Fed governor with more dovish voices raised concerns of an added inflation premium, potentially keeping long rates elevated.
Agency mortgage-backed securities significantly outperformed both U.S. Treasuries and corporate bonds during the month. After lagging their credit counterparts for most of the year, they benefited from lower volatility, expectations of rate cuts, and renewed demand from banks and investors drawn to the sector at attractive valuations.

OUTLOOK
Upcoming employment data will play a critical role in whether the Fed moves ahead with a rate cut. With the labor market showing signs of weakening, a September easing looks increasingly likely, even though inflation remains higher than the Fed’s 2.0% objective.
We believe GNMA mortgage-backed securities are well-positioned to benefit from lower volatility and potential Fed monetary policy easing. GNMA bonds continue to offer attractive relative value compared to U.S. Treasuries, and in an uncertain economic environment, they provide a compelling alternative to corporate credit.
The Payden GNMA Fund is positioned with a longer duration than its benchmark, while underweighting the highest coupons to mitigate prepayment (call) risk. The Fund also holds allocations to adjustable-rate mortgages (ARM) and collateralized mortgage obligations (CMO) floating-rate bonds, which are likely to see increased demand from financial institutions. In addition, 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.