Payden & Rygel Investment Management

US Funds

Payden Global Low Duration Fund (PYGSX)

$9.48

NAV ($)

$0.02

NAV change ($) as of 12/1/2022

Overview
Portfolio Statistics
Performance & Expenses
Fund Commentary

Investment Strategy

The Payden Global Low Duration Fund seeks to benefit from the opportunities available through broadening the investment universe to include issuers and currencies outside of the U.S. while avoiding the volatility of longer-maturity bond funds. The fund is primarily comprised of government securities, investment-grade and high-yield corporate bonds, mortgage- and asset-backed securities from U.S. and foreign issuers.

Role In Portfolio

Short-Term Global Bond – Appropriate for investors who desire the diversification available from sovereign and corporate debt of global issuers, but want the lower volatility of a short maturity profile.

Fund Highlights

	Invests primarily in government securities, investment-grade and high-yield corporate bonds, mortgage- and asset-backed securities from U.S. and foreign issuers
	Shorter maturity typically means volatility is less than an intermediate bond fund
	Ideal for investors with a short to intermediate horizon who want exposure to the global investment universe
	No loads or 12b-1 fees (other fees apply)
	The value of an investment will generally fall when interest rates rise

Fund Snapshot

Fund Inception Date	Sep 18, 1996
Ticker	PYGSX
CUSIP	704329697
Fund Total Net Assets	$74.4 million
Benchmark	ICE BOFA 1-3 YEAR US CORPORATE & GOVERNMENT INDEX
Net Expense Ratio	0.53%
Sales Charge	None

Investment Minimum
Investor Class - Regular Account	$5,000
Investor Class - IRA Account	$2,000
Additional Investment	$250

A Low Cost leader

	Payden Global Low Duration Fund (PYGSX)	Morningstar average: World Bond
Net Expense Ratio	0.53%	1.04%

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	Sep 18, 1996
Total Net Assets	$74.4 million

Average Duration	1.6 years
Average Maturity	2.0 years
30-Day SEC Yield (11/30/22)	4.54%
30-Day SEC Yield (unsubsidized)	4.26%

Sector Breakdown

Sector	Percent of Portfolio
Corporates	34%
Government/Gov't Related	29%
Asset-Backed	16%
Mortgage-Backed	11%
Money Markets	9%
Municipal Bonds	1%
Total	100%

Country Breakdown

Country	Percent of Portfolio
United States	57.6%
Canada	9.9%
Cayman Islands	5.2%
Japan	4.6%
Sweden	3.3%
United Kingdom	2.5%
Netherlands	2.4%
Germany	2.1%
France	2.0%
Australia	1.5%

Credit Breakdown

Credit Quality	Percent of Portfolio
AAA	50%
AA	9%
A	14%
BBB	19%
BB	5%
Unrated	3%
Total	100%

Security ratings are assigned using the highest rating of Moody’s, S&P, and Fitch.

		Number of funds
	Overall	186
	3 Year	186
Category: World Bond	5 Year	164
Criterion: Risk-Adjusted Return	10 Year	128

Total Returns

	YTD	1 Year	3 Year	5 Year	10 Year	Since Inception
Quarter-end (9/30/2022)	-4.31%	-4.87%	-0.17%	0.84%	1.05%	3.20%
Month-end (10/31/2022)	-4.39%	-4.55%	-0.30%	0.81%	1.02%	3.18%

Yearly Returns

2021	0.17%
2020	3.14%
2019	4.77%
2018	0.58%
2017	1.89%
2016	1.70%
2015	0.29%
2014	1.03%
2013	0.71%
2012	6.16%

Expenses

Total Annual Operating Expense	0.76%
Net or Actual Operating Expense	0.53%

(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
	We remain defensively positioned against further upward repricing of the federal funds rate. Portfolio credit risk continues to decline broadly though we maintained overall market value percentage exposures throughout the month. We uphold an increased allocation to government securities to increase overall portfolio liquidity to be responsive to market opportunities.
	To position ourselves amidst this macro uncertainty, we retain an up-in-quality bias due to slowing economic activity and “hawkish” central banks’ influence on risk assets.
	U.S. investment-grade corporate issuance for October was at the upper end of the $75.0 billion-$85.0 billion estimate, finishing the month at $83.7 billion. Supply was predominately issued in mid-October after earnings, half in financials, concentrated in A-rated bonds and across the curve in terms of maturity.

OUTLOOK
	Looking ahead, we believe that the cumulative impact of tighter monetary policies experienced this year will continue to emanate on the broad economy. As such, we expect market volatility to remain high as the need and magnitude of further monetary actions needed remains highly uncertain. We remain skeptical that the Federal Reserve will relent on the pursuit for price stability in the near term and expect higher policy rates to remain through 2023. The probability of a recession in the next twelve months has increased, leading us to continue favoring higher-quality issuers across our investable security segments.
	With volatility likely to remain elevated into 2023, our portfolio durations will extend modestly but remain conservative versus relative benchmarks. Our portfolios are positioned to be responsive to changing market conditions and any opportunities that the markets present.

US mutual funds

Disaster Recovery and Business Continuity Preperations

Payden & Rygel has developed a Business Continuity Plan to ensure that all critical functions continue in the event of a disruption in normal operations.

The firm has configured data replication servers and related infrastructure in its Boston, Massachusetts office. Data on critical Los Angeles servers is replicated to corresponding servers in the Boston location on a live basis throughout each day. In addition, other servers and databases are backed up, sent electronically to Boston, and restored at the end of each day. The firm has established a dedicated high-speed connection between the Los Angeles and Boston offices to facilitate the secure transmission of data backups.

A number of individuals from the Trading, Portfolio Operations, Information Technology, Compliance and Portfolio Management departments have been selected to connect remotely to the Boston office to complete their daily responsibilities, in the event of a disruption to normal business operations. The firm has implemented a VMWare virtual environment for each of these individuals so that they each have their own remote desktop in Boston to which they securely connect using a laptop or desktop computer with an Internet connection. Our expectation is that routine business operations will resume within 24 hours of a business continuity event. In addition, the Boston office has capacity to accommodate additional employees if a physical relocation of selected Los Angeles employees is necessary.

The firm uses a third-party hosted mass notification system to quickly communicate with all employees in the event of a disruption in operations. The system allows management to compose a text or voice message notifying employees of the event, which is then sent automatically to employees' mobile phones, home phones, and e-mail addresses. Employees indicate their receipt of the message from their phone or mobile device, which allows management to immediately review summary reports of the employees who are aware of the disruption. Additional instructions and updates can then be sent to all staff, as necessary under the circumstances.

In the event that our Business Continuity Plan is activated and Los Angeles office phone lines are down, the Los Angeles phone numbers are re-directed to the Boston office. Boston-based staff will direct callers to the mobile phones of key portfolio professionals, as necessary. All key investment personnel have access to firm e-mail on mobile devices. E-mail delivery to Payden & Rygel addresses is not dependent on the availability of either Los Angeles or Boston servers. Finally, Boston-based staff has access to portfolio management and reporting information independent of Los Angeles technology availability.

The transfer agent for the Paydenfunds is not located in Payden & Rygel's offices. The transfer agent for all of the funds maintains all shareholder records and will continue to receive all shareholder calls related to their accounts.

On at least a quarterly basis, several employees from the departments specified above will remotely connect to the Boston office to test the infrastructure by conducting their daily job responsibilities, including the execution, ticketing, settlement and processing of securities trades.

The Business Continuity Plan was developed and is monitored by a committee of senior managers, including the heads of the Trading, Portfolio Operations, Compliance and Information Technology departments. The committee meets regularly to discuss any necessary updates to the Plan and coordinates ongoing tests of the Boston location by a team of employees from various departments. The committee also solicits feedback from personnel based on the ongoing tests and promptly makes adjustments to the Plan and the Boston office resources, as necessary.

Updates to the Business Continuity Plan will be posted on this website page and a copy of the Plan may also be obtained by written request.

Privacy Notice

Payden & Rygel respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner and in compliance with applicable legal and regulatory requirements.

Collection of Information

To meet those expectations, we must collect and maintain certain personal information that is required by state and federal agencies, such as name, address and tax ID. We may collect or capture nonpublic information about you from the following sources:

Client onboarding forms;
Oral conversations or written correspondence between you and your Payden & Rygel representatives; and
Electronic sources, such as our Web site, or E-Mails.

Payden & Rygel clients have the right to: (i) be informed, at or before the point of collection, of the categories of personal information to be collected and the purposes for which the categories of personal information shall be used; and (ii) be informed of (a) the categories of personal information Payden & Rygel has collected about them; (b) the specific pieces of personal information Payden & Rygel has collected about them; (c) the categories of sources from which Payden & Rygel has collected the personal information; (d) the business or commercial purpose for collecting the personal information; and (e) the categories of third parties with whom Payden & Rygel share personal information about any client.

Disclosure of information

We do not disclose any nonpublic personal and account information about our clients, or former clients, to anyone, except as permitted by law.

In this regard, we may disclose such information to our affiliates, including Payden & Rygel Global Limited; Treasury Plus, Inc.; and Payden & Rygel Distributors. We also may disclose such information to unaffiliated third parties who are service providers to Payden & Rygel, such as broker-dealers, transfer agents or custodians. In each case, such disclosure is permitted by law, and the recipients are permitted to use it only as needed to provide agreed services to you. Finally, we may also disclose information to appropriate government agencies, and to others, as required by law or to prevent fraud.

We do not sell personal information collected, nor make that personal information available on-line. To change your personal information, call Payden & Rygel at (213) 625-1900 and request to speak to your Payden & Rygel representative.

Internal access to information and safeguards

We limit access to your personal and account information to those employees who need to know that information so that we can provide products and services to you. We also maintain physical, electronic and procedural safeguards to protect your nonpublic personal and account information. Finally, when we dispose of such information, we have in place policies and procedures to assure that such information is properly stored and shredded in the case of documentary material and erased in the case of electronic media so that in either case the information cannot be practicably read or reconstructed.

As required by U.S. federal law, Payden & Rygel will update this information at least annually.

Revised: August 4, 2020

Prospectus APPENDIX B

Privacy Notice

The Funds respect your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner and in compliance with applicable legal and regulatory requirements.

Collection of Information

The Fund application, or other forms;
Oral conversations or written correspondence between you and our representatives;
Your transactions with us; and
Electronic sources, such as our Web site, or E-Mails.

Disclosure of Information

We do not disclose any nonpublic personal and account information about our customers, or former customers, to anyone, except as permitted by law.

In this regard, we may disclose such information to our affiliates, including the Funds’ investment adviser, Payden & Rygel; administrator, Treasury Plus, Inc.; and distributor, Payden & Rygel Distributors. We also may disclose such information to unaffiliated third parties who are service providers to you or to the Funds, such as broker-dealers, transfer agents, custodians, or our mail processing firm. In each case, such disclosure is permitted by law, and the recipients are permitted to use it only as needed to provide agreed services to you. Finally, we may also disclose information to appropriate government agencies, and to others, as required by law or to prevent fraud.

We do not sell personal information collected, nor make that personal information available on-line. To change your personal information, call Paydenfund Shareholder Services at 800-572-9366 and request the forms necessary to make any such changes.

Internal Access to Information and Safeguards

As required by U.S. federal law, Payden & Rygel will update this information at least annually.

Revised: July 2020

Payden Global Low Duration Fund (PYGSX)

$9.48

$0.02

Investment Strategy

Role In Portfolio

Fund Highlights

Fund Snapshot

A Low Cost leader

Portfolio Characteristics

Sector Breakdown

Country Breakdown

Credit Breakdown

Total Returns

Yearly Returns

Expenses

Fund Commentary

US mutual funds

Contact US – PaydenFunds

Career Opportunities

Disaster Recovery and Business Continuity Preperations

Environmental, Social, and Governance (ESG) Statement

Privacy Notice

Collection of Information

Disclosure of information

Internal access to information and safeguards

Terms of Use

Legal Disclaimer

KEY INVESTOR INFORMATION DOCUMENTS (KIIDS)

Privacy Notice

Collection of Information

Disclosure of Information

Internal Access to Information and Safeguards