US Funds

Payden Low Duration Fund (PYSBX)

$9.63

NAV ($)

$-0.03

NAV change ($) as of 3/27/2023

  • 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 or 12b-1 fees (other fees apply)
The value of an investment will generally fall when interest rates rise

Fund Snapshot - 02/28/2023
Fund Inception Date Dec 31, 1993
Share Class Inception Date Dec 31, 1993
Ticker PYSBX
CUSIP 704329200
Fund Total Net Assets $1.2 billion
Benchmark ICE BOFA 1-3 YEAR US TREASURY INDEX

Net Expense Ratio 0.43%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $5,000
Investor 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 $1.2 billion
Average Duration 1.7 years
Average Maturity 2.1 years
30-Day SEC Yield (03/24/23) 4.54%
30-Day SEC Yield (unsubsidized) 4.39%
Duration Breakdown
Years Percent of Portfolio
0-126%
1-372%
3-72%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA56%
AA4%
A15%
BBB18%
BB4%
Unrated3%
Total 100%
Security ratings are assigned using the highest rating of Moody’s, S&P, and Fitch.
Sector Breakdown
Sector Percent of Portfolio
Government/Gov't Related35%
Corporates30%
Asset-Backed19%
Mortgage-Backed14%
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 (12/31/2022) -3.41% -3.41% -0.04% 0.99% 0.99% 3.25%
Month-end (2/28/2023) 0.61% -1.69% -0.29% 1.15% 1.01% 3.25%
Yearly Returns
2022-3.41%
2021-0.05%
20203.45%
20194.12%
20181.01%
20171.47%
20161.85%
20150.43%
20140.71%
20130.46%
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
Over the course of the month, as the U.S. Treasury curve notched higher, we looked to lock-in attractive yields. We maintain an overweight to a diversified mix of credit sectors for income generation. Exposure to credit remains at the lower end of historical positioning in favor of increased portfolio liquidity.
February U.S. investment-grade (“IG”) gross supply ended at $152 billion beating estimates of $90-$100 billion (J.P. Morgan). Total gross supply was heavy in the long end of the curve with only 30% of issuance five years and in. IG supply was concentrated in fixed-rate securities and 86% from industrial issuers. We continue to participate in the primary markets in names with strong fundamentals and a commitment to keeping investment-grade ratings.

OUTLOOK
The U.S. debt-ceiling limit was reached in mid-January and the U.S. Treasury has begun extraordinary measures to continue meeting liabilities. Looking ahead, we view the likelihood of a default on marketable debt as minimal. While the U.S. Treasury’s operating cash balances have started to trend lower as they pay out tax refunds and borrowing authority is inhibited, upcoming April tax receipts should provide support. We will look to limit impacts from a potential delay in payments by avoiding U.S. Treasury securities with maturities around the anticipated default date, curtailing exposure to coupon payments in the respective space and avoiding collateral that could be affected.
Following upside surprises to key economic indicators such as nonfarm payroll and the consumer price index, the market drastically repriced the probability of cuts in 2023 and terminal rates increased from 5.0% to 5.5%. Given the recent momentum, coupled with bearish sentiment surrounding growth and recessionary fears, we continue to monitor the confluence of factors guiding the Federal Reserve.
With the implied path aligning more closely with the Federal Open Market Committee’s projections and a more symmetric balance of risks, we continue to move our duration position toward neutral versus the index, adding incrementally at higher yields with a stronger emphasis on carry. The portfolio maintains ample liquidity and an up-in-quality mix of credit sectors.

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.