Payden Low Duration Fund SI Class
NAV / Daily Prices
NAV ($)
9.90
NAV Change ($)
0.01
Change %
0.10%
MTD Return
0.20%
YTD Return
0.48%
Statistics
30-Day SEC YieldA
4.25%
30-Day SEC Yield (Unsubsidized)B
4.10%
Average Maturity
1.98 Years
Effective DurationC
2.21 Years
Expenses
Total Fund Operating Expenses
0.57%D
With Expense Cap
0.38%
| Total Returns | Month-End (01/31/2026) | Quarter-End (12/31/2025) |
| YTD | 0.27% | 5.76% |
| 1 Year | 5.54% | 5.76% |
| 3 Year | 5.22% | 5.51% |
| 5 Year | - | - |
| 10 Year | - | - |
| Since Inception | 3.65% | 3.66% |
Yearly Returns
2025
5.76%
2024
5.06%
2023
5.71%
2022
-2.25%<sup>*</sup>
Past performance is no guarantee of future results.
DividendsG
Dividend
$0.0369
Dividend Reinvest NAV
$9.88
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
$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
12/31/1993
Share Class Inception Date
02/28/2022
Share Class
SI Class
Ticker
PYLDX
CUSIP
70432T875
Fund Total Net Assets
As of 01/31/2026
$808.1 Million
Sales Charge
None
Benchmark
ICE BofA 1-3 Year U.S. Treasury Index
Date as of
Role in Portfolio
Appropriate for investors who desire a high average credit quality and potential for returns greater than cash alternatives, with some fluctuation in net asset value (NAV).
Investment Strategy
The Payden Low Duration Fund seeks income and capital appreciation while avoiding the volatility of longer-maturity bond funds. The Fund is primarily comprised of U.S. government securities, investment-grade and high-yield corporate bonds, mortgage- and asset-backed securities. Under normal market conditions, the Fund’s maximum average portfolio maturity (on a dollar-weighted basis) is four years. The Fund will hold a minimum of 75% in investment-grade securities.
Why Investors Choose This Fund?
Invests primarily in short-term, fixed-income securities with a minimum of 75% rated investment grade.
Primarily comprised of U.S. government securities, investment-grade and high-yield corporate bonds, mortgage- and asset-backed securities.
Incorporates active duration, curve, and currency exposure management.
No loads (other fees apply).
Duration Allocation
Duration
Percent of Portfolio
0-1 yr
-6%
1-3 yrs
96%
3-5 yrs
10%
Credit AllocationI
Credit
Percent of Portfolio
AAA
23%
AA
35%
A
18%
BBB
14%
BB
4%
Unrated
6%
Sector Allocation
Sector
Percent of Portfolio
Corporates
30%
Government/Gov't Related
28%
Mortgage-Backed
22%
Asset-Backed
17%
Other
3%
Market
U.S. interest rates moved slightly higher over the past month as the markets priced in the potential for fewer rate cuts in the immediate future. After three consecutive 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, citing stabilizing labor markets and inflation that remains above its 2.0% target. Despite the pause, markets continue to price in a couple of cuts by the end of 2026.
Our view remains that rate cuts may ultimately be more aggressive than markets expect, as we anticipate further progress on inflation and believe labor-market conditions appear weaker than current economic data reflects. Markets have also grown more sensitive to policy signals following the news of Kevin Warsh’s nomination for Fed Chair, with Fed independence top of mind for the marketplace. We view the prospective chair as a qualified elite insider, aligned with the administration’s policy, but likely to uphold the Fed's institutional credibility.
The public fixed-income capital markets started the year hot. In January, the investment-grade corporate market had the highest volume of issuance ever for that month. Risk premiums (the additional yield above U.S. Treasuries) remain close to historic lows. Markets have been buoyed by investor expectations for lower rates, alongside a resilient economic outlook. Securitized products also saw robust issuance, and across securitized subsectors (mortgages, consumer credit, and corporate loans) with all deals readily absorbed as risk premiums moved closer to their historical lows.
Outlook
We have approached this "risk-on" environment as a great time to judiciously prune and rotate holdings. As an example, we sold asset-backed securities (ABS) data center financing due to future supply shocks that may weigh on the sector. We have maintained our exposure to the credit markets but are increasingly passing on deals at today’s pricier levels.
We continue to position investment portfolios longer compared to their respective benchmarks. As the year moves on, we expect lower interest rates due primarily to softening employment and continued progress toward lower inflation.
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 has contractually agreed to limit Total Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement to 0.38%. This agreement has a one-year term ending February 28, 2026. Please note that the 0.38% 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.
I. 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.