US Funds

Payden U.S. Government Fund (PYUSX)

$9.43

NAV ($)

$-0.04

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

  • 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 - 02/28/2023
Fund Inception Date Jan 3, 1995
Share Class Inception Date Jan 3, 1995
Ticker PYUSX
CUSIP 704329796
Fund Total Net Assets $63.2 million
Benchmark ICE BOFA 1-5 YEAR US TREASURY INDEX

Net Expense Ratio 0.60%
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 0.60% 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 - 02/28/2023
Fund Inception Date Jan 3, 1995
Share Class Inception Date Jan 3, 1995
Total Net Assets $63.2 million
Average Duration 2.4 years
Average Maturity 3.3 years
30-Day SEC Yield (03/24/23) 3.63%
30-Day SEC Yield (unsubsidized) 3.48%
Duration Breakdown
Years Percent of Portfolio
0-114%
1-352%
3-532%
5-72%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
U.S. Treasuries56%
Mortgage-Backed43%
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 (12/31/2022) -5.62% -5.62% -0.83% 0.43% 0.51% 3.41%
Month-end (2/28/2023) 0.09% -3.99% -1.32% 0.65% 0.52% 3.40%
Yearly Returns
2022-5.62%
2021-1.14%
20204.54%
20194.25%
20180.48%
20170.81%
20160.78%
20150.46%
20141.89%
2013-0.97%
Expenses
Total Annual Operating Expense 0.82%
Net or Actual Operating Expense 0.60%

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 - 02/28/2023

MARKET
The Federal Reserve (Fed) has remained firm in its message to bring inflation down to 2.0%.
Markets are digesting the cumulative impact of the Fed's 450 basis point increase in rates since last March on both inflation and economic growth. Currently, the market is pricing the peak in the federal funds rate (“FFR”) just shy of 5.5% to be reached in the third quarter of 2023. Just as important to what the peak in rates will be, is how long rates will stay there, as growth slows and the potential for a recession increases.
The Fund is primarily invested in U.S. Treasury securities and short average-life residential and commercial agency mortgage-backed securities with average lives ranging from three to five years. The Fund has recently increased exposure to agency mortgage-backed securities as valuations have improved relative to U.S. Treasuries.

OUTLOOK
We expect the Fed to continue to raise the targeted FFR with additional increases in the first quarter of 2023 and a terminal FFR of 5.25-5.5% by mid-2023. Shorter maturity U.S. Treasuries will remain anchored to the FFR with longer maturity rates yielding less as the market looks to easier policy in early 2024. The Fund is positioned conservatively versus its benchmark.
Agency mortgages have cheapened over the past year as the Fed has exited quantitative easing and is now allowing their mortgage holdings to roll off their balance sheet. The Fund is targeting newly issued agency mortgage pools with coupons of 4.5% to 5.0%.
Agency mortgage securities should perform well over the ensuing quarters. Mortgage securities provide higher yields relative to U.S Treasuries and will likely benefit as supply will drop sharply due to the impact of higher mortgage rates on housing activity.

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.