Payden Corporate Bond Fund Adviser Class
NAV / Daily Prices
NAV ($)
10.10
NAV Change ($)
0.05
Change %
0.50%
MTD Return
1.00%
YTD Return
1.24%
Statistics
30-Day SEC YieldA
4.28%
Average Maturity
10.69 Years
Effective DurationB
7.05 Years
Expenses
Total Fund Operating Expenses
0.93%C
With Expense Cap
0.91%
| Total Returns | Quarter-End (12/31/2025) | Month-End (01/31/2026) |
| YTD | 7.20% | 0.24% |
| 1 Year | 7.20% | 6.74% |
| 3 Year | - | - |
| 5 Year | - | - |
| 10 Year | - | - |
| Since Inception | 7.39% | 7.21% |
Yearly Returns
2025
7.20%
2024
3.77%
2023
4.33%<sup>*</sup>
Past performance is no guarantee of future results.
DividendsF
Dividend
$0.0337
Dividend Reinvest NAV
$10.01
Record Date
01/28/2026
Ex Date
01/29/2026
Payable Date
01/29/2026
Dividends Paid
Monthly
Capital GainsF
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
03/12/2009
Share Class Inception Date
11/30/2023
Share Class
Adviser Class
Ticker
PYAYX
CUSIP
70432T834
Fund Total Net Assets
As of 01/31/2026
$422.3 Million
Sales Charge
None
Benchmark
Bloomberg U.S. Corporate Bond Index
Date as of
Role in Portfolio
Appropriate as a fixed-income holding for investors seeking a dedicated corporate bond strategy.
Investment Strategy
The Payden Corporate Bond Fund’s strategy is to purchase investment-grade corporate bonds of companies that have leading market positions, strong cash flow generation, stable management teams and predictable earnings. The strategy’s focus is on bottom-up credit selection with an emphasis placed on adding issues with a near-term catalyst to outperform. Our credit research process looks to capitalize on opportunities in the corporate bond market across sectors and maturities; including the early identification of potential rising stars - companies that we believe will be upgraded to investment grade in the near term. A forward-looking approach is taken to credit analysis. A priority is placed on assessing a company’s future trajectory and the corresponding risk and opportunities for bondholders under various scenarios. Up to 20% of fund assets may be below investment grade.
Why Investors Choose This Fund?
The Fund is a well-diversified portfolio of U.S. dollar investment-grade corporate securities backed by extensive in-house credit research.
It invests in credits across the full maturity spectrum and its duration and curve positioning are actively managed.
The Fund has the flexibility to opportunistically invest in below investment-grade securities and emerging-market debt.
No loads (other fees apply).
Duration Allocation
Duration
Percent of Portfolio
0-1 yr
7%
1-3 yrs
17%
3-5 yrs
22%
5-7 yrs
18%
7-10 yrs
12%
10+ yrs
24%
Credit AllocationH
Credit
Percent of Portfolio
AAA
12%
AA
11%
A
30%
BBB
40%
BB
6%
Unrated
1%
Sector Allocation
Sector
Percent of Portfolio
Financial Institutions
37%
Industrials
36%
Mortgage-Backed
11%
Utilities
10%
Municipal Bonds
2%
Other
4%
Market
January’s data releases suggest solid growth in economic activity, a weak labor market, and moderating inflation. Estimates suggest the U.S. economy expanded at a 4.2% annualized rate in the fourth quarter of 2025, with private demand growth rising at a solid 2.5% rate. We expect technology spending, a major driver of private demand growth in 2025, to continue fueling the economy in 2026. U.S. Treasury yields rose during the month, with the 2-year yield rising 0.05% to 3.52%, while the 10-year yield rose by 0.07% to 4.24%.
Demand for corporate bonds remained robust to start the year. As a result, 1- to 30-year corporate yields over similar-maturity U.S. Treasuries fell 0.05% to 0.73%. Still, the overall yield on 1- to 30-year corporate bonds rose 0.03% to 4.84%.
Companies issued $36 billion of new corporate bonds in December. Issuance for 2025 finished at $1.6 trillion, up 8% from 2024.
Outlook
During the month, the Fund selectively participated in the new issue calendar, adding credits across a broad range of sectors, including banking and technology. At the same time, it reduced positions in credits that screened as expensive, particularly in consumer cyclicals and consumer non-cyclicals. The Fund continued to increase out-of-index exposure to securitized products, while maintaining duration modestly long relative to the benchmark.
We expect corporate bonds to continue performing well in 2026, as strong investor demand suggests many still find corporate bond yields attractive at current levels. Corporate fundamentals remain solid and are even showing signs of improvement. However, we are closely monitoring capital expenditures, particularly in the technology sector. Significant spending related to AI could lead to a materially increased supply and add debt to corporate balance sheets, which could create some pressure on bond performance, but so far, investors seem more than willing to soak up this incremental supply.
This environment is likely to present both increased risks and opportunities. Careful credit selection will be essential, as we expect greater dispersion across sectors and individual companies in the year ahead.
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. Effective duration is a measure of the Fund’s price sensitivity to changes in interest rates.
C. 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 0.65%. This agreement has a one-year term ending February 28, 2026. Please note that the 0.91% Expense Cap includes the 0.65% expense, the 0.25% 12b-1 Distribution Fees, and the 0.01% Acquired Fund Fees and Expenses.
D. 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.
E. Returns less than one year are not annualized.
F. 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.
G. 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.
H. 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.
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.
Interest Rate Risk: As with most funds that invest in debt securities, the income on and value of your shares in the Fund will fluctuate along with interest rates. When interest rates rise, the market prices of the debt securities the Fund owns usually decline. When interest rates fall, the prices of these securities usually increase.
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.