Payden GNMA Fund
NAV / Daily Prices
NAV ($)
7.84
NAV Change ($)
0.03
Change %
0.38%
MTD Return
0.78%
YTD Return
1.48%
Statistics
30-Day SEC YieldA
3.87%
30-Day SEC Yield (Unsubsidized)B
3.63%
Average Maturity
6.15 Years
Effective DurationC
5.22 Years
Expenses
Total Fund Operating Expenses
0.67%D
With Expense Cap
0.45%
| Total Returns | Month-End (01/31/2026) | Quarter-End (12/31/2025) |
| YTD | 0.70% | 7.52% |
| 1 Year | 7.66% | 7.52% |
| 3 Year | 3.46% | 4.25% |
| 5 Year | -0.39% | -0.55% |
| 10 Year | 1.00% | 1.04% |
| Since Inception | 3.69% | 3.68% |
Yearly Returns
2025
7.52%
2024
0.82%
2023
4.52%
2022
-12.55%
2021
-1.84%
2020
4.26%
2019
5.67%
2018
0.38%
2017
1.31%
2016
1.78%
Past performance is no guarantee of future results.
DividendsG
Dividend
$0.0241
Dividend Reinvest NAV
$7.79
Record Date
01/30/2026
Ex Date
01/30/2026
Payable Date
01/30/2026
Dividends Paid
Monthly, with Daily Accural
Capital GainsG
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
$5,000
Investor Class - IRA Account
$2,000
Additional Investment - All Classes
$250
Fund Snapshot
Fund Inception Date
08/27/1999
Share Class Inception Date
08/27/1999
Share Class
Investor Class
Ticker
PYGNX
CUSIP
704329473
Fund Total Net Assets
As of 01/31/2026
$85.1 Million
Sales Charge
None
Benchmark
ICE BofA U.S. GNMA Mortgage Backed Securities Index
Date as of
Role in Portfolio
Appropriate for investors who seek higher yields and diversification through debt issued by the Government National Mortgage Association.
Investment Strategy
The Payden GNMA Fund invests at least 80% of its assets in mortgage-backed securities that are guaranteed by the full faith and credit of the U.S. government. The Fund invests in a range of mortgage-backed security pools. The balance of the Fund’s assets is invested in other obligations guaranteed by the U.S. government or its agencies.
Why Investors Choose This Fund?
Yields generally exceed intermediate-maturity U.S. Treasuries.
100% invested in securities issued by the U.S. government or its agencies.
While share values will fluctuate as interest rates move up and down, there is no corporate credit risk associated with the portfolio's holdings.
Duration Allocation
Duration
Percent of Portfolio
0-3 yrs
24%
3-5 yrs
15%
5-7 yrs
41%
7-10 yrs
20%
GNMA Coupon Allocation
GNMA Coupon
Percent of Portfolio
2.0%
12%
2.5%
17%
3.0%
13%
3.5%
12%
4.0%
6%
4.5%
6%
5.0%
10%
5.5%
13%
6.0% and Above
11%
Market
In January, the Ginnie Mae (GNMA) mortgage market (and the Fund) delivered positive total returns and outperformed U.S. Treasuries and credit-sensitive fixed-income markets. U.S. interest rates moved modestly higher amid stronger-than-expected economic activity and signs of labor market stabilization. Mortgage rates, however, were anchored on headlines that the government-sponsored enterprises (GSEs) – Fannie Mae and Freddie Mac – plan to buy a combined $200 billion in mortgage-backed securities (MBS).
After three consecutive rate cuts in the latter half of 2025, the Federal Reserve (Fed) elected to keep the federal funds rate unchanged at 3.50%–3.75% at its January meeting. Despite this pause, markets continue to price in additional rate cuts by year-end 2026. News of Kevin Warsh’s nomination for Fed Chair heightened market sensitivity to the future direction of monetary policy, with Fed independence remaining a key focus for investors.
GNMA mortgage risk premiums narrowed meaningfully, driven by a favorable shift in technical conditions. Financial institutions and money managers increased allocations to agency MBS in anticipation of strong GSE sponsorship. However, richer valuations prompted some hedge fund selling, reflecting concerns about increased refinancing risk should mortgage rates move lower.
Outlook
We remain constructive on the outlook for fixed-income and GNMA bonds. Our view continues to anticipate more Fed rate cuts than currently priced into the market, supported by further progress on inflation and our assessment that labor market conditions are softer than headline data suggest.
In an environment of subdued volatility, we believe GNMA bonds continue to offer attractive relative value compared to U.S. Treasuries, and in an uncertain economic environment, they provide a compelling alternative to corporate credit.
The Payden GNMA Fund is positioned with a longer duration than its benchmark, while underweighting the highest coupons to mitigate prepayment (call) risk. The Fund also holds allocations to adjustable-rate mortgages (ARM) and collateralized mortgage obligations (CMO) floating-rate bonds, that have witnessed increased demand from financial institutions. Additionally, we continue to prioritize securities with stable prepayment behavior, such as seasoned, low loan balance, and manufactured housing (mobile home) pools.
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. Payden & Rygel ("Payden") has contractually agreed that, for so long as it is the investment adviser to the Fund, Total Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement will not exceed 0.50%. Please note that the 0.50% expense level does not include Acquired Fund Fees and Expenses, interest, taxes, and extraordinary expenses. Payden has contractually agreed to further waive its investment advisory fee or reimburse Fund expenses to the extent that the Total Annual Fund Operating Expenses After Further One-Year Fee Waiver or Expense Reimbursement exceed 0.45%. This agreement has a one-year term ending February 28, 2026. Please note that the 0.45% expense level does not include Acquired Fund Fees and Expenses, interest, taxes, and extraordinary 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. 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.
H. 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.
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.
The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA.