US Funds

Payden Strategic Income Fund (PYSGX)

$9.54

NAV ($)

$-0.02

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

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

The Payden Strategic Income Fund invests in a customized mix of fixed-income sectors, across the entire bond universe and maturity curve. This strategy invests in a diverse mix of securities across a multitude of sectors including: emerging-markets, high-yield and investment-grade corporates, and mortgage-backed and asset-backed securities, investing with a long-term outlook.

Role In Portfolio

Strategic Income – Appropriate for investors with a long-term investment horizon who seek higher income and diversification across the full bond universe.

Fund Highlights
Seeks income with a custom mix of investments across the yield curve.
Focuses on “best ideas” to uncover relative value opportunities globally, with the ability to invest anywhere.
Strategic investment horizon encourages a flexible and creative approach to structuring the portfolio.
The value of an investment will generally fall when interest rates rise.

Fund Snapshot - 05/31/2024
Fund Inception Date May 8, 2014
Share Class Inception Date May 8, 2014
Ticker PYSGX
CUSIP 704329168
Fund Total Net Assets $174.9 million
Benchmark BLOOMBERG US AGGREGATE BOND INDEX

Net Expense Ratio 0.66%
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 Strategic Income Fund (PYSGX) Morningstar average:
Short-Term Bond
Net Expense Ratio 0.66% 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 - 05/31/2024
Fund Inception Date May 8, 2014
Share Class Inception Date May 8, 2014
Total Net Assets $174.9 million
Average Duration 3.8 years
Average Maturity 6.3 years
30-Day SEC Yield (05/31/24) 5.3%
30-Day SEC Yield (unsubsidized) 5.09%
Duration Breakdown
Years Percent of Portfolio
0-122%
1-322%
3-526%
5-717%
7-109%
10+4%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA37%
AA5%
A10%
BBB25%
BB11%
B4%
CCC1%
Unrated7%
Total 100%
Security ratings are assigned using the highest rating of Moody’s, S&P, and Fitch.
Sector Breakdown
Sector Percent of Portfolio
Investment Grade Corporates26%
Securitized20%
U.S. Government16%
Agency MBS12%
High Yield10%
Emerging Market Debt7%
Muni4%
Other5%
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.

    Number of funds
Overall 525
3 Year 525
Category: Short-Term Bond 5 Year 485
Criterion:  10 Year 356

Total Returns
YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Quarter-end (3/31/2024) 0.99% 5.90% 1.12% 2.74% N/A 2.72%
Month-end (5/31/2024) 1.37% 6.10% 0.72% 2.53% 2.67% 2.72%
Yearly Returns
20237.42%
2022-6.62%
20211.72%
20206.19%
20198.33%
2018-0.51%
20174.24%
20163.65%
20151.78%
20140.61%
Expenses
Total Annual Operating Expense 0.87%
Net or Actual Operating Expense 0.66%

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.

(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 - 05/31/2024

MARKET
May was characterized by cautious optimism in financial markets as central banks indicated potential rate cuts amidst mixed economic data, leading to fluctuations among asset classes.
The month in the U.S. began with the Federal Reserve’s (Fed’s) decision to keep the federal funds rate unchanged at 5.5%. The Federal Open Market Committee (FOMC) also announced a reduction in the speed of its balance sheet drawdown. Starting in June, the Fed will reduce its cap on securities it allows to run off and not be replaced, from $60 billion to $25 billion. As the month progressed, economic data reports signaled a cooling labor market and softening inflation. In April, the U.S. economy added 175,000 new jobs, significantly under the forecasted 240,000. This led to more optimistic bets that the Fed would cut rates sooner, resulting in U.S. Treasury yields falling across the curve. Soft inflation data further sustained this rally with the core year-on-year Consumer Price Index (CPI) falling to 3.6% from 3.8% last month marking the lowest annual core inflation rate in two years. The soft data reports encouraged market optimism, causing U.S. Treasury yields to decline by 0.18% and the S&P 500 to gain 4.80%.

OUTLOOK
As the year has progressed, economic growth has remained resilient, and while the disinflation process is underway, inflation has not slowed as quickly as markets initially expected. Some regions, such as the U.S., have begun to show signs of an inflation rebound. This backdrop has added some uncertainty to the Fed and other central bank reaction functions. While most central banks moved concurrently during 2022/2023 hiking cycles, we expect regional divergences to emerge in cutting cycles. We maintain our view that the U.S. may likely delay the start and speed of its cutting cycle by more than markets expect. Meanwhile, we are more confident that we should see other major central banks (Bank of England and European Central Bank) begin cutting key interest rates as soon as this summer.
Given the low volatility environment thus far in 2024, credit risk appetite has remained strong, and fixed-income risk assets have outperformed underlying government bonds. We expect greater volatility in risk assets going forward and believe current levels of valuations, investor positioning and volatility indicators do not appropriately reflect these risks.

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.