Payden U.S. Government Fund
NAV / Daily Prices
NAV ($)
9.57
NAV Change ($)
0.02
Change %
0.21%
MTD Return
0.31%
YTD Return
0.52%
Statistics
30-Day SEC YieldA
3.42%
30-Day SEC Yield (Unsubsidized)B
3.14%
Average Maturity
2.34 Years
Effective DurationC
2.70 Years
Expenses
Total Fund Operating Expenses
0.66%D
With Expense Cap
0.43%
| Total Returns | Month-End (01/31/2026) | Quarter-End (12/31/2025) |
| YTD | 0.21% | 5.92% |
| 1 Year | 5.69% | 5.92% |
| 3 Year | 4.13% | 4.41% |
| 5 Year | 1.20% | 1.21% |
| 10 Year | 1.61% | 1.68% |
| Since Inception | 3.51% | 3.51% |
Yearly Returns
2025
5.92%
2024
3.40%
2023
3.94%
2022
-5.62%
2021
-1.14%
2020
4.54%
2019
4.25%
2018
0.48%
2017
0.81%
2016
0.78%
Past performance is no guarantee of future results.
DividendsG
Dividend
$0.0298
Dividend Reinvest NAV
$9.54
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
01/03/1995
Share Class Inception Date
01/03/1995
Share Class
Investor Class
Ticker
PYUSX
CUSIP
704329796
Fund Total Net Assets
As of 01/31/2026
$59.2 Million
Sales Charge
None
Benchmark
ICE BofA 1-5 Year U.S. Treasury Index
Date as of
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.
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. The average portfolio maturity is less than five years.
Why Investors Choose This Fund?
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 time horizon who seek the safety of government securities.
Duration Allocation
Duration
Percent of Portfolio
0-1 yr
3%
1-3 yrs
68%
3-5 yrs
21%
5-7 yrs
8%
Government Sector Allocation
Government Sector
Percent of Portfolio
Treasury
48%
Agency Pass Through
22%
Agency CMBS
15%
Agency ARM
10%
Agency CMO
5%
U.S. Government Obligations
U.S. Government Obligations
Percent of Portfolio
Treasury
49%
FHLMC
21%
FNMA
21%
GNMA
3%
Other (SBIC, FHLB, SBA)
6%
Market
U.S. interest rates moved slightly higher over the past month as 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. The Fed cited stabilization in labor markets and still lingering inflation above their 2.0% target as support for the pause in rate cuts.
Despite the pause, the markets have still priced in a couple of interest rate cuts by year end 2026. Our view remains that rate cuts may be more aggressive than what markets expect, as we anticipate further progress on inflation and believe that the labor markets are weaker than current economic data suggests.
The recent news of Kevin Warsh's nomination for Fed Chair has made the markets sensitive to his policy leanings, with Fed independence top of mind for the marketplace. The prospective Fed chair has a history of shrinking the Fed balance sheet and is currently aligned with the administration’s view for lower rates.
The agency mortgage-backed securities (MBS) sector performed very well over the past month. The administration directed Fannie Mae and Freddie Mac to use cash reserves to purchase $200 billion of agency mortgages to lower mortgage rates and increase housing affordability. With the program as a tailwind, agency mortgages handily outperformed U.S. Treasury securities.
Outlook
We expect continued progress toward the Feds 2.0% inflation target and remain concerned about the softening employment market.
We maintain an overweight position in agency MBS. The potential for lower interest rates and the newly announced mortgage purchase program should provide continued support for agency MBS to perform well.
The Fund’s duration is modestly long compared to its benchmark. We believe there is room for rates to fall further than what is reflected in the market’s current pricing.
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 0.60%. Please note that the 0.60% 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 0.43%. This agreement has a one-year term ending February 28, 2026. Please note that the 0.43% 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.