US Funds

Payden U.S. Government Fund (PYUSX)

$9.33

NAV ($)

$-0.01

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

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

The Payden U.S. Government Fund seeks to provide income while avoiding the volatility of longer-maturity bond funds and the credit risk involved in non-government issuers. The fund is comprised of U.S. Treasuries, government agency debentures and agency mortgage-backed securities. Average portfolio maturity is less than five years.

Role In Portfolio

Short-Term Government Bond – Appropriate for investors who seek exposure to short-term securities issued by the U.S. Government and its agencies.

Fund Highlights
No corporate credit risk.
The average maturity ranges between 3-5 years. Shorter average maturities generally provide less price sensitivity to changes in rates.
Ideal for investors with a short-to-intermediate horizon who seek the safety of government securities.
The value of an investment will generally fall when interest rates rise.

Fund Snapshot - 05/31/2024
Fund Inception Date Jan 3, 1995
Share Class Inception Date Jan 3, 1995
Ticker PYUSX
CUSIP 704329796
Fund Total Net Assets $67.9 million
Benchmark ICE BOFA 1-5 YEAR US TREASURY INDEX

Net Expense Ratio 0.44%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $5,000
Investor Class - IRA Account $2,000
Additional Investment - All Classes$250

A Low Cost leader
Payden U.S. Government Fund (PYUSX) Morningstar average:
Short Government
Net Expense Ratio 0.44% 0.82%

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 Jan 3, 1995
Share Class Inception Date Jan 3, 1995
Total Net Assets $67.9 million
Average Duration 2.5 years
Average Maturity 3.0 years
30-Day SEC Yield (05/31/24) 4.22%
30-Day SEC Yield (unsubsidized) 4.01%
Duration Breakdown
Years Percent of Portfolio
0-19%
1-363%
3-528%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
U.S. Treasuries54%
Mortgage-Backed45%
U.S. Agencies1%
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) 0.29% 2.74% -0.77% 0.88% 0.97% 3.41%
Month-end (5/31/2024) 0.38% 2.99% -0.86% 0.72% 0.91% 3.39%
Yearly Returns
20233.94%
2022-5.62%
2021-1.14%
20204.54%
20194.25%
20180.48%
20170.81%
20160.78%
20150.46%
20141.89%
Expenses
Total Annual Operating Expense 0.68%
Net or Actual Operating Expense 0.44%

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 - 05/31/2024

MARKET
Interest rates dropped modestly over the month. Positive signs of inflation moving toward the Federal Reserve (Fed) target of 2.0% were evident, but more importantly did not reflect the resurgence of inflation that data from the first quarter 2024 displayed.
Interest rates closed the month with the 2-year U.S. Treasury down 15 basis points (bps) to 4.86% and the 10-year U.S. Treasury closing at 4.50%, down 18 bps from the year-to-date high of 4.71%.
The yield curve remains inverted with shorter maturity U.S. Treasuries yielding more than longer maturities as the markets assess the timing and magnitude of future interest rates cuts by the Fed. The markets are currently pricing one to two interest rate cuts by year-end 2024.
The agency mortgage markets outperformed their U.S. Treasury brethren over the past month. The agency mortgage sector is viewed as having positive attributes, such as limited supply, due to high mortgage rates limiting housing activity and attractive yields that should lead to outperformance over the course of the year.

OUTLOOK
The market is more balanced and in line with the possibility of interest rates staying at current levels for longer. The expectation for an imminent decline in rates has been tempered by sticky inflation data and the Fed’s consistent messaging to keep rates high until it is clear that inflation is firmly on the way down toward the Fed’s 2% objective.
While acknowledging that the lagged effects of restrictive monetary policy could cause extra stress on the economy, we currently see few signs of an impending recession and side with a “soft-landing” base case for the economy.
We continue to favor a modest overweight to agency mortgage-backed securities due to their additional yield and return potential above similar duration U.S. Treasury securities
The Funds duration position is just shy of the benchmark due to the ongoing inversion of the yield curve which provides investors with higher yields for shorter maturities relative to benchmarks. Going forward, we look for opportunities to scale into higher yields and lengthen duration as the markets reassess the likelihood of lower rates due to higher-than-expected inflation.

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.