Payden Absolute Return Bond Fund Adviser Class
NAV / Daily Prices
NAV ($)
9.43
NAV Change ($)
0.00
Change %
0.00%
MTD Return
0.32%
YTD Return
0.82%
Statistics
30-Day SEC YieldA
5.29%
30-Day SEC Yield (Unsubsidized)B
5.27%
Average Maturity
4.66 Years
Effective DurationC
2.10 Years
Expenses
Total Fund Operating Expenses
1.05%D
With Expense Cap
0.96%
| Total Returns | Quarter-End (12/31/2025) | Month-End (01/31/2026) |
| YTD | 5.57% | 0.50% |
| 1 Year | 5.57% | 5.65% |
| 3 Year | - | - |
| 5 Year | - | - |
| 10 Year | - | - |
| Since Inception | 6.49% | 6.47% |
Yearly Returns
2025
5.57%
2024
7.38%
2023
0.61%<sup>*</sup>
Past performance is no guarantee of future results.
DividendsH
Dividend
$0.0370
Dividend Reinvest NAV
$9.41
Record Date
01/28/2026
Ex Date
01/29/2026
Payable Date
01/29/2026
Dividends Paid
Monthly
Capital GainsH
Short Term
None
Long Term
None
Reinvest NAV
None
Record Date
N/A
Ex Date
N/A
Payable Date
N/A
Investment Minimum
Investor Class - Regular Account
$100,000
Adviser Class - Regular Account
$5,000
SI Class
$10,000,000
Investor Class - IRA Account
$100,000
Adviser Class - IRA Account
$2,000
Additional Investment - All Classes
$250
Fund Snapshot
Fund Inception Date
11/06/2014
Share Class Inception Date
11/30/2023
Share Class
Adviser Class
Ticker
PYABX
CUSIP
70432T792
Fund Total Net Assets
As of 01/31/2026
$672.8 Million
Sales Charge
None
Benchmark
ICE BofA U.S. 1-Month Treasury Bill IndexG
Bloomberg U.S. Treasury Bills 1-Month Index
Date as of
Role in Portfolio
Absolute Return – appropriate for investors seeking steady returns, limited downside and reduced correlations with traditional asset classes. Not intended to outperform stocks and bonds during strong market rallies.
Investment Strategy
The Payden Absolute Return Bond Fund's strategy seeks to have positive absolute returns over the long term, regardless of different market environments. To achieve this goal, the Fund seeks to provide total return, whether through price appreciation, or income, or a combination of both. It seeks opportunities by employing a flexible approach that evaluates security attractiveness globally, both inside and outside the U.S. A special emphasis is placed on risk management seeking to mitigate potential downside.
Why Investors Choose This Fund?
Seeks to have positive absolute returns over the long term, regardless of different market environments.
Utilizes all sectors of the fixed-income market.
Portfolio is structured with relatively low interest rate sensitivity.
The Fund may not achieve its goals if the economy weakens.
Duration Allocation
Duration
Percent of Portfolio
0-1 yr
4%
1-3 yrs
76%
3-5 yrs
15%
5-7 yrs
12%
7+ yrs
-7%
Credit AllocationJ
Credit
Percent of Portfolio
AAA
24%
AA
6%
A
7%
BBB
21%
BB and Below
30%
Unrated
12%
Sector Allocation
Sector
Percent of Portfolio
Emerging Markets
26%
Mortgage-Backed Securities
19%
Asset-Backed Securities
18%
CMBS
12%
High Yield
10%
Bank Loans
8%
Investment Grade Corporates
8%
Other
-1%
Market
Markets began the year with a broadly constructive tone, as risk assets delivered positive returns across most sectors, supported by steady earnings and improving investor confidence. January’s data releases suggest solid growth in economic activity, a weak labor market, and moderating inflation. Against this backdrop, fixed-income markets delivered positive returns despite modest upward pressure on interest rates, as income and credit risk premium compression helped offset rate-related headwinds. Credit markets proved resilient, with strong demand supporting compressed credit risk premiums across corporate and structured credit, even as primary market issuance remained elevated. While volatility increased at times amid shifting rate expectations and global headlines, market conditions stabilized into month-end, allowing risk sentiment to improve and supporting performance across a broad range of asset classes.
Outlook
We see a divided path ahead for the U.S. economy, with meaningful upside and downside outcomes driven by the trajectory of the labor market, growth trends, and inflation dynamics. Against this backdrop, and with credit risk premiums reflecting unattractive valuations, we are modestly cautious on downside risk while emphasizing yield optimization through disciplined relative-value positioning. Interest rate pricing in the U.S. suggests a "soft-landing", with expectations that the federal funds rate will settle near 3%, and that inflation indicators will remain stable.
We remain constructive on the short- and medium-term of the U.S. Treasury curve, where yields appear more stable than longer-term bonds, which are more affected by supply pressures and policy uncertainty. Within credit, we prefer an elevated degree of exposure to emerging-market debt, as higher real yields, moderating inflation, and ongoing policy easing make these bonds more attractive.
Our positioning in developed-market credit remains selective, while we prioritize higher-quality opportunities in securitized credit, such as commercial mortgage-backed securities (CMBS), where credit risk premiums and yields compare favorably to lower-quality corporate alternatives. Overall, we believe this approach strikes a better balance between bond quality, potential price risk, and yield, while preserving liquidity and flexibility across portfolios.
A. The 30-day SEC yield represents the dividends and interest earned for a 30-day period, annualized, and divided by the net asset values per share at the end of the period. The SEC yield is computed under a standardized formula which assumes all portfolio securities are held to maturity. This value may differ from the actual distribution rate of the fund.
B. Represents a 30-day SEC yield without adjusting for fee waivers or expense reimbursements.
C. Effective duration is a measure of the Fund’s price sensitivity to changes in interest rates.
D. Total Annual Fund Operating Expenses include all direct operating expenses of the Fund, as well as 0.01% Acquired Fund Fees and Expenses incurred indirectly by the Fund through its investment in other mutual funds and a Rule 12b-1 Distribution Fee of 0.25%. Payden & Rygel has contractually agreed to limit Total Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement to 0.70%. This agreement has a one-year term ending February 28, 2026. Please note that the 0.96% Expense Cap includes the 0.70% expense, the 0.25% 12b-1 Distribution Fees, and the 0.01% Acquired Fund Fees and Expenses.
E. 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.
F. Returns less than one year are not annualized.
G. Effective February 28, 2025, the Fund’s benchmark changed from the Bloomberg U.S. Treasury Bills 1-Month Index to the ICE BofA U.S. 1-Month Treasury Bill Index.
H. Why do Payden mutual fund shareholders receive a distribution? Mutual funds are required by the IRS to distribute substantially all realized profits they earn to shareholders on at least an annual basis. If a fund has net gains from the sale of securities, or if it earns dividends or interest from securities, the fund must distribute those earnings to its shareholders. All distributions are taxable, unless an investor's shares are held in a tax-deferred or tax-exempt account such as an IRA. Payden shareholders have the option to receive their distributions in cash or to automatically reinvest the distribution back into the Fund. This information is not intended to provide tax advice. Please consult a qualified tax professional for advice specific to your circumstances. Dividends shown are historical and not guaranteed. Amounts may vary and do not predict future income.
I. The minimum initial investment may be modified for certain financial intermediaries that submit trades on behalf of underlying investors. Payden Funds’ distributor may lower or waive the minimum initial investment for certain categories of investors at their discretion.
J. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest) and are subject to change. Security ratings are assigned using the highest rating of Moody’s, S&P, and Fitch. If a security is unrated by Moody’s, S&P, and Fitch, then we use the rating from other nationally recognized statistical ratings organizations (NRSROs).
For more information and to obtain a prospectus or summary prospectus, visit payden.com or call 800 572-9336. Before investing, investors should carefully read and consider investment objectives, risks, charges, expenses and other important information about the Fund, which is contained in these documents.
Investment in foreign securities entails certain risks from investing in domestic securities, including changes in exchange rates, political changes, differences in reporting standards, and, for emerging-market securities, higher volatility.
Investing in high-yield securities entails certain risks from investing in investment-grade securities, including higher volatility, greater credit risk, and the issues’ more speculative nature.
The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.