Payden GNMA Fund (PYGNX)
$9.15
NAV ($)
$-0.01
NAV change ($) as of 1/18/2019
- 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 | $157.5 million |
| Benchmark | ICE BofA ML US GNMA Mortgage Backed Securities Index |
| Net Expense Ratio | 0.50% |
| Sales Charge | None |
| Investment Minimum | |
| Investor Class - Regular Account | $100,000 |
| Investor Class - IRA Account | $100,000 |
| 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 | $157.5 million |
| Average Duration | 5.1 years |
| Average Maturity | 8.3 years |
| 30-Day SEC Yield (01/11/19) | 3.15% |
| 30-Day SEC Yield (unsubsidized) | 3.20% |
Duration Breakdown
| Years | Percent of Portfolio |
|---|---|
| 0-1 | 2% |
| 1-3 | 3% |
| 3-5 | 60% |
| 5-7 | 35% |
| Total | 100% |
GNMA Coupon Allocation
| Coupon | Percent of Portfolio |
|---|---|
| 3.0% | 31% |
| 3.5% | 38% |
| 4.0% | 14% |
| 4.5% | 9% |
| 5.0% and Above | 8% |
| 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 |  |
209 |
| 3 Year | |
209 | |
| Category: Intermediate Government | 5 Year | |
194 |
| Criterion: Risk-Adjusted Return | 10 Year | |
150 |
Total Returns
| YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
|---|---|---|---|---|---|---|
| Quarter-end (12/31/2018) | 0.38% | 0.38% | 1.16% | 2.11% | 3.18% | 4.67% |
| Month-end (12/31/2018) | 0.38% | 0.38% | 1.16% | 2.11% | 3.18% | 4.67% |
Yearly Returns
| 2018 | 0.38% |
| 2017 | 1.31% |
| 2016 | 1.78% |
| 2015 | 1.20% |
| 2014 | 5.95% |
| 2013 | -3.24% |
| 2012 | 3.60% |
| 2011 | 8.18% |
| 2010 | 6.70% |
| 2009 | 6.48% |
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 rising volatility, a negative tone for equity and credit markets, and a strong rally in safe-haven asset classes such as gold, U.S. Treasuries and agency mortgage-backed securities (MBS). Although the U.S. economy remained the anchor for global growth, economic data was less encouraging out of Europe and Asia. In addition, geopolitical risks such as "Brexit" in the U.K. and the trade war between the U.S. and China, remained largely unresolved. | |
| Despite softening sentiment, the Federal Reserve (Fed) continued to tighten monetary policy notching their ninth hike since the end of 2015. The Fed also ended reinvestment of paydowns of their $1.7 Trillion agency MBS portfolio. | |
| The Ginnie Mae mortgage market participated in the flight-to-quality rally with its best results since the start of 2016. Yields fell across the mortgage coupon spectrum albeit spreads widened relative to U.S. Treasuries. Prepayments have moderated as Ginnie Mae continues to modify rules on refinances of Veteran's Administration (VA) loans. | |
| OUTLOOK | |
| We expect an increase in risk premiums as the Fed ends its direct support of the agency mortgage market. The private market is tasked to do the heavy lifting to digest net supply. | |
| Despite the adverse supply/demand landscape, GNMA mortgages are at their cheapest valuation in years, with nominal yields on new purchases over 3.5%. Today's higher mortgage rates provide the lowest refi environment in over a decade which should lead to higher realized yields for the fund. | |
| The fund remains positioned slightly on the defensive side, anticipating a continuation in the move to monetary policy normalization. | |
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.