US Funds

Payden Low Duration Fund (PYSBX)

$9.69

NAV ($)

$-0.02

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

  • Overview
  • Portfolio Statistics
  • Performance & Expenses
  • Fund Commentary
Investment Strategy

The Payden Low Duration Fund seeks income and capital appreciation while avoiding the volatility of longer-maturity bond funds. The fund is primarily comprised of U.S. government securities, investment-grade and high-yield corporate bonds, mortgage- and asset-backed securities. Under normal market conditions, the fund’s maximum average portfolio maturity (on a dollar-weighted basis) is four years. The fund will hold a minimum of 75% in investment-grade securities.

Role In Portfolio

Appropriate for investors who desire a high average credit quality and potential for returns greater than cash alternatives, with some fluctuation in net asset value (NAV).

Fund Highlights
Invests primarily in short-term, fixed-income securities with a minimum of 75% rated investment-grade.
Primarily comprised of U.S. government securities, investment-grade and high-yield corporate bonds, mortgage- and asset-backed securities.
Incorporates active duration, curve and currency exposure management.
No loads (other fees apply).
The value of an investment will generally fall when interest rates rise.

Fund Snapshot - 05/31/2024
Fund Inception Date Dec 31, 1993
Share Class Inception Date Dec 31, 1993
Ticker PYSBX
CUSIP 704329200
Fund Total Net Assets $978.7 million
Benchmark ICE BOFA 1-3 YEAR US TREASURY INDEX

Net Expense Ratio 0.43%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $100,000
Investor Class - IRA Account $100,000
Adviser Class - Regular Account $5,000
Adviser Class - IRA Account $2,000
SI Class $10,000,000
Additional Investment - All Classes$250

A Low Cost leader
Payden Low Duration Fund (PYSBX) Morningstar average:
Short-Term Bond
Net Expense Ratio 0.43% 0.84%

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 Dec 31, 1993
Total Net Assets $978.7 million
Average Duration 1.9 years
Average Maturity 2.0 years
30-Day SEC Yield (05/31/24) 4.89%
30-Day SEC Yield (unsubsidized) 4.75%
Duration Breakdown
Years Percent of Portfolio
0-117%
1-373%
3-59%
5-71%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA50%
AA6%
A18%
BBB17%
BB6%
B1%
Unrated2%
Total 100%
Security ratings are assigned using the highest rating of Moody’s, S&P, and Fitch.
Sector Breakdown
Sector Percent of Portfolio
Corporates34%
Government/Gov't Related28%
Asset-Backed21%
Mortgage-Backed11%
Money Markets4%
Municipal Bonds2%
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) 0.81% 4.69% 0.88% 1.77% 1.54% 3.33%
Month-end (5/31/2024) 1.32% 4.94% 0.94% 1.69% 1.55% 3.33%
Yearly Returns
20235.66%
2022-3.41%
2021-0.05%
20203.45%
20194.12%
20181.01%
20171.47%
20161.85%
20150.43%
20140.71%
Expenses
Total Annual Operating Expense 0.53%
Net or Actual Operating Expense 0.43%

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

MARKET
After moving sharply higher over the calendar year through April, U.S. Treasury yields moved lower in May with a modest flattening bias. Yields rallied in the first half of the month, with two-year U.S. Treasury yields moving 30 basis points (bps) lower, as the Federal Reserve Open Market Committee (FOMC) reiterated their very low expectation that further policy rate increases will be needed to continue bringing inflation down toward their target level. That move was partially retraced in the second half of the month as economic data continues to show signs of a stable economy and strong inflation that has reduced and delayed the market outlook for policy rate reductions.
Investment-grade corporates supply topped expectations for the fifth straight month but has been met with healthy investor demand. Risk premiums in corporates continued the trend lower on the month, albeit at a more modest pace, delivering positive excess returns for the seventh consecutive month. The primary supply for asset-backed-securities (ABS) for May was also robust, here too the supply has been well digested as risk premiums continue to tighten. Additional yields for both investment-grade corporate and ABS above equal-tenor US Treasuries are at the lowest level in over two years.

OUTLOOK
We are wary of reinflation risk and that the economy may have not sufficiently cooled to merit a change in the current monetary policy stance. We acknowledge that the lagged effects of restrictive monetary policy could cause extra stress on the economy, but currently we see few signs of an impending recession. Given the uncertain nature of various risk factors, we are biased toward maintaining liquidity as current risk premiums do not compensate for additional risk.
We favor a high-quality tilt in our credit positioning and a duration position close to neutral. The timing and pace of rate cuts and the tapering of quantitative tightening will be our primary focus as we anticipate the timing of the Federal Reserve’s easing cycle. With credit risk premium trading toward the lower band of their historical levels, we are not reaching for yield nor rushing to sell. We believe the market will be stable for the foreseeable future. We continue to be judicious in our risk investments as narrow risk premium currently does not reward investors to add to marginal risk positions.

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.