US Funds

Payden U.S. Government Fund (PYUSX)

$10.24

NAV ($)

$0.01

NAV change ($) as of 2/23/2018

  • 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
Fund Inception Date Jan 1, 1995
Share Class Inception Date Jan 1, 1995
Ticker PYUSX
CUSIP 704329796
Fund Total Net Assets $104.2 million
Benchmark ICE BofA Merrill Lynch 1-5 Year Treasury Index
Net Expense Ratio 0.43%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $100,000
Investor Class - IRA $100,000
Advisor Class - Regular Account $5,000
Advisor Class $2,000
Additional Investment - All Classes$250

A Low Cost leader
Payden U.S. Government Fund (PYUSX) Morningstar average:
Short Government
Net Expense Ratio 0.43% 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.

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 Jan 1, 1995
Share Class Inception Date Jan 1, 1995
Total Net Assets $104.2 million
Average Duration 3.0 years
Average Maturity 4.5 years
30-Day SEC Yield (02/16/18) 2.01%
30-Day SEC Yield (unsubsidized) 1.83%
Duration Breakdown
Years Percent of Portfolio
0-115%
1-332%
3-551%
5+2%
Total 100%
Sector Breakdown
Sector Percent of Portfolio
Mortgage-Backed105%
U.S. Treasuries-5%
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.

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 100
3 Year 100
Category: Short Government 5 Year 91
Criterion: Risk-Adjusted Return 10 Year 69

Total Returns
YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Quarter-end (12/31/2017) 0.81% 0.81% 0.68% 0.59% 2.08% 4.07%
Month-end (1/31/2018) -0.69% -0.03% 0.19% 0.48% 1.79% 4.03%
Yearly Returns
20170.81%
20160.78%
20150.46%
20141.89%
2013-0.97%
20122.02%
20112.70%
20102.91%
20092.89%
20087.59%
Expenses
Total Annual Operating Expense 0.60%
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.

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
Rates have increased sharply in the early going of 2018. Inflation expectations have increased with the markets pricing a greater likelihood of Fed increases rather than the former more gradual pace.
Adjustable rate agency mortgage-backed securities (ARMs) narrowly outperformed U.S. Treasury securities over the first month of the year as spreads moved tighter in response to decreasing supply.
In the near term, we continue to favor short, average-life agency mortgages due to their additional yield above equivalent duration U.S. Treasury securities. A rate environment of gradually higher rates will decrease prepayment concerns and remain supportive to agency MBS.

OUTLOOK
The Fed will continue the process of shrinking their $4.2 trillion portfolio of MBS and U.S. Treasuries by restricting the amounts that can be reinvested from their portfolio. Initially, the market impact should be very small but will gradually call for the private markets to fill the void as the Fed steps away. Additional headwinds to lower yields could come from an increase in economic activity and inflation fears as wage increases have gradually increased.
Despite headwinds from the Fed, a favorable macro picture for short duration agency securities could evolve as investors seek high quality short duration assets in the face of rising volatility and equity turbulence.
The Fund has recently decreased its exposure to fixed rate mortgages and increased exposure to adjustable-rate mortgages to decrease the sensitivity to changes in rates. The fund continues to provide significant additional yield over equivalent maturity U.S. Treasury securities.

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.

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.