Prospectus | FUND SUMMARIES – MONEY MARKET FUND | 1 |
|
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden &
Rygel (“Payden” or the “Adviser”) has contractually agreed to waive its
investment advisory fee or reimburse Fund expenses to the extent that the
Total Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement (excluding Acquired Fund Fees and Expenses, interest, taxes,
and extraordinary expenses) exceed 0.25%. This agreement has a one‑year
term ending |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund invests at least 99.5% of its total assets in cash, Government
Securities, and repurchase agreements collateralized by cash or Government
Securities. “Government Securities” generally means any security issued or
guaranteed as to principal or interest by the U.S. Government or certain
of its agencies or instrumentalities; or any certificate of deposit for
any of the foregoing.
|
ª |
The
Fund intends to be a “government money market fund,” as defined by Rule
2a-7 under the Investment Company Act of 1940, as amended, that seeks to
maintain a stable price of $1.00 per share by using the amortized cost
method to value portfolio securities and rounding the share value to the
nearest cent. The Fund does not currently intend to impose liquidity fees
or redemption gates on Fund redemptions; however, the Fund’s Board of
Trustees may reserve the ability to subject the Fund to a liquidity fee
and/or redemption gate in the future, after providing prior notice to Fund
shareholders. |
ª |
The
Fund maintains a dollar-weighted average portfolio maturity of 60 days or
less, and a dollar-weighted average portfolio life (portfolio maturity
measured without reference to any maturity shortening provisions of
adjustable rate securities by reference to their interest rate reset date)
of 120 days or less. In addition, the Fund only purchases securities that
mature within 397 days of the date of purchase (with certain exemptions
permitted by applicable regulations).
|
ª |
|
ª |
The
primary risks of the debt securities in which the Fund invests are
interest rate risk and credit risk.
|
ª |
Interest Rates. Interest rate risk is
the risk that the value of the Fund’s debt securities will fluctuate with
changes in interest rates. For example, a decline in short-term interest
rates would lower the Fund’s yield and the return on your investment.
|
ª |
Credit Risk. Credit risk is the risk
that the issuer of a debt security will be unable to make interest or
principal payments on time and the related risk that the value of a debt
security may decline because of concerns about the issuer’s ability or
willingness to make such payments. Generally, credit risk is often higher
for bank, corporate, mortgage-backed, asset-backed and foreign government
debt securities than for government securities.
|
2 | FUND SUMMARIES – MONEY MARKET FUND | Payden Funds |
PAYDEN CASH RESERVES MONEY MARKET FUND (continued) |
ª |
Low Yields. Within the last few years,
money market funds have experienced historically low yields on securities
they can hold. Therefore, it is possible that the Fund may not be able to
maintain a positive yield. In addition, inflation may outpace and diminish
investment returns over time.
|
ª |
Repurchase Agreement Risk. If the seller
of a repurchase agreement defaults or otherwise does not fulfill its
obligations, the Fund may incur delays and losses arising from selling the
underlying securities, enforcing its rights, or declining collateral
value. |
ª |
Government Securities Risk. Obligations
of U.S. Government agencies and authorities receive varying levels of
support and may not be backed by the full faith and credit of the U.S.
Government, which could affect the Fund’s ability to recover should they
default. No assurance can be given that the U.S. Government will provide
financial support to its agencies and authorities if it is not obligated
by law to do so. |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired results.
|
ª |
No Government Guarantee. An investment
in the Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
|
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Cash Reserves Money Market Fund |
% | % | % | |||||||||
Lipper
Government Money Market Average |
% | % | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 5,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 2,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 2,000 | $ | 250 | ||||
No
set schedule |
$ | 5,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Prospectus | FUND SUMMARIES – MONEY MARKET FUND | 3 |
PAYDEN CASH RESERVES MONEY MARKET FUND (continued) |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden &
Rygel (“Payden” or the “Adviser”) has contractually agreed to waive its
investment advisory fee or reimburse Fund expenses to the extent that the
Total Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement (excluding Acquired Fund Fees and Expenses, interest, taxes,
and extraordinary expenses) exceed 0.30%. This agreement has a one‑year
term ending |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
4 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN LIMITED MATURITY FUND (continued) |
ª |
The
Fund invests in a wide variety of debt instruments and income-producing
securities payable primarily in U.S. dollars. These include
(1) debt securities issued or guaranteed by the U.S. Government
and foreign governments and their agencies and instrumentalities,
political subdivisions of foreign governments (such as provinces and
municipalities), and supranational organizations (such as the World Bank);
(2) debt securities, loans and commercial paper issued by
U.S. and foreign companies; (3) U.S. and foreign
mortgage-related securities, including collateralized mortgage-backed
obligations, credit risk transfer securities and commercial
mortgage-backed obligations, and U.S. and foreign asset-backed debt
securities, including collateralized debt obligations and collateralized
loan obligations; (4) municipal securities, which are debt
obligations issued by state and local governments, territories and
possessions of the United States, regional governmental authorities, and
their agencies and instrumentalities, the interest on which may, or may
not, be exempt from Federal income tax; and (5) convertible bonds and
preferred stock. |
ª |
The
Fund invests at least 90% of its total assets in investment grade debt
securities, but may invest up to 10% of its total assets in debt
securities rated below investment grade. The overall average credit
quality of the Fund will remain investment grade. Investment grade debt
securities are rated within the four highest grades by at least one
Nationally Recognized Statistical Rating Organization, or are securities
that the Fund’s adviser, Payden & Rygel (“Payden” or the “Adviser”),
determines to be of comparable
quality. |
ª |
The
Fund invests in debt securities of any maturity, although under normal
market conditions the Fund’s maximum average portfolio maturity (on a
dollar-weighted basis) is two and one-half years. In calculating the
Fund’s average portfolio maturity, the Fund uses a security’s stated
maturity, or if applicable, an earlier date based on the Adviser’s belief
that the security may be subject, for example, to a call, a put, a
refunding, a prepayment, a redemption provision, an adjustable coupon
rate, or the like, that will cause the security to be repaid
earlier. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or
short. |
ª |
Interest Rates. As with most bond funds,
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. Generally, the market
price of debt securities with longer maturities will fluctuate more in
response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt
securities. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a
pandemic. |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 5 |
PAYDEN LIMITED MATURITY FUND (continued) |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic
difficulty. |
ª |
Mortgage-Backed/Asset-Backed Securities.
Investing in mortgage-backed and asset-backed securities poses additional
risks, principally driven by changes in interest rates. When interest
rates increase the market values of mortgage-backed securities decline. At
the same time, mortgage refinancings and prepayments slow, which lengthens
the effective duration of these securities. As a result, the negative
effect of increasing interest rates on the market value of mortgage-backed
securities is usually more pronounced than it is for other types of fixed
income securities, potentially increasing the volatility of the Fund.
Conversely, many mortgage-backed securities may be prepaid prior to
maturity and when interest rates decline, while the value of such
securities may increase, the rate of prepayment also tends to increase,
which shortens the effective duration of the securities. Mortgage-backed
securities are also subject to the risk that underlying borrowers will be
unable to meet their obligations, or that the value of property that
secures the mortgage may decline in value and be insufficient, upon
foreclosure, to repay the associated loan. Investments in asset-backed
securities are subject to similar
risks. |
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these
securities. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial
investment. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In
addition, |
6 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN LIMITED MATURITY FUND (continued) |
redemption
risk is heightened during periods of overall market turmoil. The
redemption by one or more large shareholders of their holdings in the Fund
could adversely affect the Fund’s performance. If the Fund is forced to
liquidate its assets under unfavorable conditions or at inopportune times,
the value of the Fund’s shares may
decline. |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired
results. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity
incidents. |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Limited Maturity Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
ICE
BofA US 3-Month Treasury Bill Index |
% | % | % |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 7 |
PAYDEN LIMITED MATURITY FUND (continued) |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
PAYDEN LOW DURATION FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden &
Rygel (“Payden” or the “Adviser”) has contractually agreed to waive its
investment advisory fee or reimburse Fund expenses to the extent that the
Total Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement (excluding Acquired Fund Fees and Expenses, interest, taxes,
and extraordinary expenses) exceed 0.43%. This agreement has a one‑year
term ending |
8 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN LOW DURATION FUND (continued) |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund invests in a wide variety of debt instruments and income-producing
securities payable primarily in U.S. dollars. These include
(1) debt securities issued or guaranteed by the U.S. Government
and foreign governments and their agencies and instrumentalities,
political subdivisions of foreign governments (such as provinces and
municipalities), and supranational organizations (such as the World Bank);
(2) debt securities, loans and commercial paper issued by
U.S. and foreign companies; (3) U.S. and foreign
mortgage-related securities, including collateralized mortgage-backed
obligations, credit risk transfer securities and commercial
mortgage-backed obligations, and U.S. and foreign asset-backed debt
securities, including collateralized debt obligations and collateralized
loan obligations; (4) municipal securities, which are debt
obligations issued by state and local governments, territories and
possessions of the United States, regional governmental authorities, and
their agencies and instrumentalities, the interest on which may, or may
not, be exempt from Federal income tax; and (5) convertible bonds and
preferred stock.
|
ª |
The
Fund invests at least 75% of its total assets in investment grade debt
securities, but may invest up to 25% of its total assets in debt
securities rated below investment grade. The overall average credit
quality of the Fund will remain investment grade. Investment grade debt
securities are rated within the four highest grades by at least one
Nationally Recognized Statistical Rating Organization, or are securities
that the Fund’s adviser, Payden & Rygel (“Payden”), determines to be
of comparable quality.
|
ª |
The
Fund invests in debt securities of any maturity, although under normal
market conditions the Fund’s maximum average portfolio maturity (on a
dollar-weighted basis) is four years. In calculating the Fund’s average
portfolio maturity, the Fund uses a security’s stated maturity, or if
applicable, an earlier date based on the Adviser’s belief that the
security may be subject, for example, to a call, a put, a refunding, a
prepayment, a redemption provision, an adjustable coupon rate, or the
like, that will cause the security to be repaid earlier.
|
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or short.
|
ª |
Interest Rates. As with most bond funds,
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. Generally, the market
price of debt securities with longer maturities will fluctuate more in
response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 9 |
PAYDEN LOW DURATION FUND (continued) |
obligation.
Generally, higher-rated debt securities involve lower credit risk than
lower-rated debt securities. Credit risk is often higher for corporate,
mortgage-backed, asset-backed and foreign government debt securities than
for U.S. Government debt securities.
|
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a pandemic.
|
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic difficulty.
|
ª |
Mortgage-Backed/Asset-Backed Securities.
Investing in mortgage-backed and asset-backed securities poses additional
risks, principally driven by changes in interest rates. When interest
rates increase the market values of mortgage-backed securities decline. At
the same time, mortgage refinancings and prepayments slow, which lengthens
the effective duration of these securities. As a result, the negative
effect of increasing interest rates on the market value of mortgage-backed
securities is usually more pronounced than it is for other types of fixed
income securities, potentially increasing the volatility of the Fund.
Conversely, many mortgage-backed securities may be prepaid prior to
maturity and when interest rates decline, while the value of such
securities may increase, the rate of prepayment also tends to increase,
which shortens the effective duration of the securities. Mortgage-backed
securities are also subject to the risk that underlying borrowers will be
unable to meet their obligations, or that the value of property that
secures the mortgage may decline in value and be insufficient, upon
foreclosure, to repay the associated loan. Investments in asset-backed
securities are subject to similar risks.
|
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these securities.
|
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
|
10 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN LOW DURATION FUND (continued) |
causing
the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial investment.
|
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment
company or ETF presents the risk that the investment company or ETF in
which the Fund invests will not achieve its investment objective or
execute its investment strategies effectively or that significant purchase
or redemption activity by shareholders of such an investment company might
negatively affect the value of the investment company’s shares.
|
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by others.
|
ª |
Redemption Risk. The Fund may experience heavy
redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may decline.
|
ª |
Management Risk. The investment techniques and analysis
used by the Fund’s portfolio managers may not produce the desired results.
|
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents.
|
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 11 |
PAYDEN LOW DURATION FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden Low Duration Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
ICE
BofA 1-3 Year US Treasury Index |
% | % | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
12 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN U.S. GOVERNMENT FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Acquired
Fund Fees and Expenses1 |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement2 |
% | |||
Total
Annual Fund Operating Expenses After Guaranteed Fee Waiver or Expense
Reimbursement |
% | |||
One-year
Fee Waiver or Expense Reimbursement3 |
% | |||
Total
Annual Fund Operating Expenses After Further One-Year Fee Waiver or
Expense Reimbursement |
% |
1 |
2 | Payden
& Rygel (“Payden”) has contractually agreed that, for so long as it is
the investment adviser to the Fund, the Total Annual Fund Operating
Expenses After Fee Waiver or Expense Reimbursement (excluding Acquired
Fund Fees and Expenses, interest, taxes, and extraordinary expenses) will
not exceed 0.60%. |
3 | 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
(excluding Acquired Fund Fees and Expenses, interest, taxes, and
extraordinary expenses) exceed 0.43%. This agreement has a one-year term
ending |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund invests 100% of its total assets in “U.S. Government
Obligations,” which are defined as U.S. Treasury bills, notes and
bonds, and other bonds and obligations issued or guaranteed by the
U.S. Government, or in Government National Mortgage Association
(GNMA) mortgage-backed securities, which are debt securities representing
part ownership in a pool of mortgage loans backed by the full faith and
credit of the U.S. Government, or in Government-sponsored enterprises
(such as the Federal Home Loan Mortgage Corporation (FHLMC) and the
Federal National Mortgage Association (FNMA)). In addition, the Fund may
also invest in collateralized mortgage obligations and repurchase
agreements collateralized by U.S. Government
Obligations. |
ª |
Under
normal market conditions, the Fund’s average portfolio maturity (on a
dollar-weighted basis) is generally less than five years. In calculating
the Fund’s average portfolio maturity, the Fund uses a security’s stated
maturity, or if applicable, an earlier date based on the Adviser’s belief
that the security may be subject, for example, to a call, a put, a
refunding, a prepayment, a redemption provision, an adjustable coupon
rate, or the like, that will cause the security to be repaid earlier. The
Fund invests in mortgage-backed U.S. Government Obligations with a
maximum effective duration of ten years. Duration is a mathematical
concept which |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 13 |
PAYDEN U.S. GOVERNMENT FUND (continued) |
uses
anticipated cash flows to measure the price volatility of a security and
is calculated in terms of years. For example, when interest rates move up
or down, the price of a security with a duration of four years will move
roughly twice as much as a security with a duration of two
years. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or
short. |
ª |
Interest Rates. As with most bond funds,
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. Generally, the market
price of debt securities with longer maturities will fluctuate more in
response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Extension Risk. Rising interest rates
can cause the average maturity of the Fund’s holdings of mortgage-backed
securities to lengthen unexpectedly due to a drop in prepayments. This
would increase the sensitivity of the Fund to rising rates, and could
cause certain of the Fund’s investments to decline in value more than they
would have declined due to the rise in interest rates
alone. |
ª |
U.S. Treasury and Agency Obligations.
Debt obligations issued by the U.S. Treasury, which include
U.S. Treasury bills, notes and bonds, are backed by the full faith
and credit of the U.S. Government. Debt obligations issued by
agencies chartered by the U.S. Government, which are classified as
government sponsored enterprises, may or may not be backed by the full
faith and credit of the U.S. Government. For example, principal and
interest payments of GNMA mortgage-backed securities are backed by the
full faith and credit of the U.S. Government. On the other hand, FNMA
and FHLMC mortgage-backed securities are not guaranteed by the U.S.
Government. However, currently, each of the FNMA and FHLMC benefits from
the Senior Preferred Stock Purchase Agreement it has with the U.S.
Treasury which is expected to provide them with the necessary cash
resources to meet their obligations. Although the U.S. Government has
provided financial support to FNMA and FHLMC in the past (including as
part of the Senior Preferred Stock Purchase Agreements), no assurance can
be given that the U.S. Government will provide financial support in the
future to these or other U.S. Government agencies, authorities or
instrumentalities that are not supported by the full faith and credit of
the United States. |
ª |
Prepayment Risk. The Fund is subject to
the prepayment risk applicable to mortgages underlying the GNMA
mortgage-backed securities and other mortgage-backed U.S. Government
Obligations. Prepayment risk is the chance that the mortgage-backed bonds
will be paid off early due to homeowners refinancing their mortgages
during periods of falling interest rates. Forced to reinvest the
unanticipated proceeds at lower rates, the Fund would experience a decline
in income and lose the opportunity for additional price appreciation
associated with falling rates. Prepayment risk is high for the Fund. In
addition, the Fund is subject to the credit risk associated with these
securities, including the market’s perception of the creditworthiness of
the issuing Federal agency, as well as the credit quality of the
underlying assets. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a
pandemic. |
14 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN U.S. GOVERNMENT FUND (continued) |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial
investment. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience heavy
redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may
decline. |
ª |
Management Risk. The investment techniques and analysis
used by the Fund’s portfolio managers may not produce the desired
results. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity
incidents. |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 15 |
PAYDEN U.S. GOVERNMENT FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
U.S. Government Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
ICE
BofA 1‑5 Year US Treasury Index |
% | % | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 5,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 2,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 2,000 | $ | 250 | ||||
No
set schedule |
$ | 5,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
16 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN U.S. GOVERNMENT FUND (continued) |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Guaranteed Fee Waiver or Expense
Reimbursement |
% | |||
One‑year
Fee Waiver or Expense Reimbursement2 |
% | |||
Total
Annual Fund Operating Expenses After Further One‑Year Fee Waiver or
Expense Reimbursement |
% |
1 | Payden &
Rygel (“Payden”) has contractually agreed that, for so long as it is the
investment adviser to the Fund, the Total Annual Fund Operating Expenses
After Fee Waiver or Expense Reimbursement (excluding Acquired Fund Fees
and Expenses, interest, taxes, and extraordinary expenses) will not exceed
0.50%. |
2 | 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
(excluding Acquired Fund Fees and Expenses, interest, taxes, and
extraordinary expenses) exceed 0.45%. This agreement has a one‑year term
ending |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 17 |
PAYDEN GNMA FUND (continued) |
ª |
The
Fund invests at least 80% of its total assets in Government National
Mortgage Association mortgage-backed securities (GNMA Securities), which
are debt securities representing part ownership in a pool of mortgage
loans backed by the full faith and credit of the U.S. Government. The
Fund invests the balance of its assets primarily in other
“U.S. Government Obligations,” which are defined as
U.S. Treasury bills, notes and bonds, and other bonds and
mortgage-backed securities issued or guaranteed by the
U.S. Government, or by government sponsored enterprises (such as the
Federal Home Loan Mortgage Corporation (FHLMC) or Federal National
Mortgage Association (FNMA)). However, the Fund may also invest in
repurchase agreements collateralized by U.S. Government Obligations
or GNMA
Securities. |
ª |
The
Fund invests in debt securities of any maturity, and there is no limit on
the Fund’s minimum or maximum average portfolio
maturity. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or
short. |
ª |
Interest Rates. As with most bond funds,
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. However, falling interest
rates may not affect the prices of GNMA Securities as much as the prices
of comparable debt securities because the markets may discount GNMA
Security prices for prepayment risk when interest rates fall. Further, the
market price of debt securities with longer maturities will fluctuate more
in response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Extension Risk. Rising interest rates
can cause the average maturity of the Fund’s holdings of mortgage-backed
securities to lengthen unexpectedly due to a drop in prepayments. This
would increase the sensitivity of the Fund to rising rates, and could
cause certain of the Fund’s investments to decline in value more than they
would have declined due to the rise in interest rates
alone. |
ª |
Prepayment Risk. The Fund is subject to
the prepayment risk applicable to mortgages underlying the GNMA Securities
and other mortgage-backed U.S. Government Obligations. Prepayment
risk is the chance that the mortgage-backed bonds will be paid off early
due to homeowners refinancing their mortgages during periods of falling
interest rates. Forced to reinvest the unanticipated proceeds at lower
rates, the Fund would experience a decline in income and lose the
opportunity for additional price appreciation associated with falling
rates. Prepayment risk is high for the Fund. In addition, the Fund is
subject to the credit risk associated with these securities, including the
market’s perception of the creditworthiness of the issuing Federal agency,
as well as the credit quality of the underlying
assets. |
ª |
U.S. Treasury and Agency Obligations.
Debt obligations issued by the U.S. Treasury, which include
U.S. Treasury bills, notes and bonds, are backed by the full faith
and credit of the U.S. Government. Debt obligations issued by
agencies chartered by the U.S. Government, which are classified as
government sponsored enterprises, may or may not be backed by the full
faith and credit of the U.S. Government. For example, principal and
interest payments of GNMA Securities are backed by the full faith and
credit of the U.S. Government. On the other hand, FNMA and FHLMC
mortgage-backed securities are not guaranteed by the U.S. Government.
However, currently, each of the FNMA and FHLMC benefits from the Senior
Preferred Stock Purchase Agreement it has with the U.S. Treasury which is
expected to provide them with the necessary cash resources to meet their
obligations. Although the U.S. Government has provided financial support
to FNMA and FHLMC in the past (including as part of the Senior Preferred
Stock Purchase Agreements), no assurance can be given that the U.S.
Government will provide financial support in the future to these or other
U.S. Government agencies, authorities or instrumentalities that are not
supported by the full faith and credit of the United
States. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a
pandemic. |
18 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN GNMA FUND (continued) |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial
investment. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience heavy
redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may
decline. |
ª |
Management Risk. The investment techniques and analysis
used by the Fund’s portfolio managers may not produce the desired
results. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 19 |
PAYDEN GNMA FUND (continued) |
and
financial intermediaries, to suffer data breaches, data corruption or loss
of operational functionality or prevent fund investors from purchasing,
redeeming or exchanging shares or receiving distributions. The Fund and
the Fund’s portfolio managers have limited ability to prevent or mitigate
cybersecurity incidents affecting third party service providers.
Cybersecurity incidents may result in financial losses to the Fund and its
shareholders, and substantial costs may be incurred in order to prevent
any future cybersecurity
incidents. |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
GNMA Fund |
||||||||||||
Before
Taxes |
% | – |
% | % | ||||||||
After
Taxes on Distributions |
% | – |
% | – |
% | |||||||
After Taxes on Distributions and Sale of Fund Shares |
% | – |
% | – |
% | |||||||
ICE
BofA US GNMA Mortgage-Backed Securities Index |
% | % | % |
20 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN GNMA FUND (continued) |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 5,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 2,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 2,000 | $ | 250 | ||||
No
set schedule |
$ | 5,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of
your investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Acquired
Fund Fees and Expenses1 |
% | |||
Total
Annual Fund Operating Expenses |
% |
1 |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 21 |
PAYDEN CORE BOND FUND (continued) |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
Under
normal market conditions, the Fund invests at least 80% of its total
assets in a wide variety of debt instruments and income-producing
securities payable primarily in U.S. dollars. These include
(1) debt securities issued or guaranteed by the U.S. Government,
and foreign governments and their agencies and instrumentalities,
political subdivisions of foreign governments (such as provinces and
municipalities), and supranational organizations (such as the World Bank);
(2) debt securities, loans and commercial paper issued by
U.S. and foreign companies; (3) U.S. and foreign
mortgage-backed and asset-backed debt securities; (4) municipal
securities, which are debt obligations issued by state and local
governments, territories and possessions of the United States, regional
governmental authorities, and their agencies and instrumentalities, the
interest on which may, or may not, be exempt from Federal income tax; and
(5) convertible bonds and preferred stock.
|
ª |
The
Fund invests at least 75% of its total assets in investment grade debt
securities, but may invest up to 25% of its total assets in debt
securities rated below investment grade. The overall average credit
quality of the Fund will remain investment grade. Investment grade debt
securities are rated within the four highest grades by at least one
Nationally Recognized Statistical Rating Organization, or are securities
that the Fund’s adviser, Payden & Rygel (“Payden”), determines to be
of comparable quality.
|
ª |
The
Fund invests in debt securities of any maturity, and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its principal.
|
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or short.
|
ª |
Interest Rates. As with most bond funds,
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. Generally, the market
price of debt securities with longer maturities will fluctuate more in
response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Extension Risk. Rising interest rates
can cause the average maturity of the Fund’s holdings of mortgage-backed
securities to lengthen unexpectedly due to a drop in prepayments. This
would increase the sensitivity of the Fund to rising rates, and could
cause certain of the Fund’s investments to decline in value more than they
would have declined due to the rise in interest rates alone.
|
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt securities.
|
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by
|
22 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN CORE BOND FUND (continued) |
the
U.S. Federal Reserve or foreign central banks, market disruptions caused
by trade disputes or other factors, political developments, armed
conflict, investor sentiment and the global and domestic effects of a
pandemic. |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities fluctuate more than the market
prices of investment grade debt securities and may decline more
significantly in periods of general economic difficulty.
|
ª |
Mortgage-Backed/Asset-Backed Securities.
Investing in mortgage-backed and asset-backed securities poses additional
risks, principally driven by changes in interest rates. When interest
rates increase the market values of mortgage-backed securities decline. At
the same time, mortgage refinancings and prepayments slow, which lengthens
the effective duration of these securities. As a result, the negative
effect of increasing interest rates on the market value of mortgage-backed
securities is usually more pronounced than it is for other types of fixed
income securities, potentially increasing the volatility of the Fund.
Conversely, many mortgage-backed securities may be prepaid prior to
maturity and when interest rates decline, while the value of such
securities may increase, the rate of prepayment also tends to increase,
which shortens the effective duration of the securities. Mortgage-backed
securities are also subject to the risk that underlying borrowers will be
unable to meet their obligations, or that the value of property that
secures the mortgage may decline in value and be insufficient, upon
foreclosure, to repay the associated loan. Investments in asset-backed
securities are subject to similar risks.
|
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these securities.
|
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of the Fund
shares may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial investment.
|
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 23 |
PAYDEN CORE BOND FUND (continued) |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment
company or ETF presents the risk that the investment company or ETF in
which the Fund invests will not achieve its investment objective or
execute its investment strategies effectively or that significant purchase
or redemption activity by shareholders of such an investment company might
negatively affect the value of the investment company’s shares.
|
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by others.
|
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may decline.
|
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired results.
|
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents.
|
24 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN CORE BOND FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Core Bond Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
Bloomberg
US Aggregate Bond Index |
% | % | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax‑Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 25 |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Acquired
Fund Fees and Expenses2 |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden
& Rygel (“Payden”) has contractually agreed to waive its investment
advisory fee or reimburse Fund expenses to the extent that the Total
Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement
(excluding Acquired Fund Fees and Expenses, interest, taxes, and
extraordinary expenses) exceed 0.65%. This agreement has a one-year term
ending |
2 |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund invests in a wide variety of securities across many asset classes in
an unconstrained fashion. It seeks opportunities by employing a flexible
approach that evaluates security attractiveness on a global basis and
across currencies.
|
ª |
The
Fund will invest in income-producing securities and equity related
securities payable in U.S. dollars and other currencies. These include (1)
debt securities issued or guaranteed by the U.S. Government, and foreign
governments and their agencies and instrumentalities, political
subdivisions of foreign governments (such as provinces and
municipalities), and supranational organizations (such as the World Bank);
(2) debt securities, loans and commercial paper issued by U.S. and foreign
companies; (3) U.S. and foreign mortgage-backed and asset-backed debt
securities; (4) municipal securities, which are debt obligations issued by
state and local governments, territories and possessions of the United
States, regional governmental authorities, and their agencies and
instrumentalities, the interest on which may, or may not, be exempt from
Federal income tax; (5) convertible bonds and preferred stock; and (6)
equity securities and equity related securities such as common stock and
master limited partnerships.
|
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund will invest in both developed and emerging markets.
|
ª |
The
Fund invests in both investment grade debt securities and securities rated
below investment grade. Investment grade debt securities are rated within
the four highest grades by at least one Nationally Recognized Statistical
Rating Organization, or are securities that the Fund’s adviser, Payden
& Rygel (“Payden”), determines to be of comparable quality.
|
26 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN STRATEGIC INCOME FUND (continued) |
ª |
In
evaluating preferred stocks, convertible bonds, equity securities and
equity-related securities such as common equity and master limited
partnerships, Payden seeks instruments consistent with the income
generating focus of the Fund.
|
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or short.
|
ª |
The
Fund invests in debt securities of any maturity, and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its principal. There
may be circumstances when the duration of the Fund is negative to protect
against rising interest rates. Duration is an analytic measure of the
Fund’s sensitivity to interest rate movements.
|
ª |
Interest Rates. 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.
Generally, the market price of debt securities with longer maturities will
fluctuate more in response to changes in interest rates than the market
price of shorter-term securities. The Fund faces a heightened risk that
interest rates may rise. The negative impact on fixed income securities
resulting from such rate increases could be swift and significant. A
general rise in interest rates may cause investors to move out of fixed
income securities on a large scale, which could adversely affect the price
and liquidity of fixed income securities and could also result in
increased redemptions from the Fund.
|
ª |
Credit Risk. Debt instruments are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt securities.
|
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a pandemic.
|
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 27 |
PAYDEN STRATEGIC INCOME FUND (continued) |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities fluctuate more than the market
prices of investment grade debt securities and may decline more
significantly in periods of general economic difficulty.
|
ª |
Mortgage-Backed/Asset-Backed Securities.
Investing in mortgage-backed and asset-backed securities poses additional
risks, principally driven by changes in interest rates. When interest
rates increase the market values of mortgage-backed securities decline. At
the same time, mortgage refinancings and prepayments slow, which lengthens
the effective duration of these securities. As a result, the negative
effect of increasing interest rates on the market value of mortgage-backed
securities is usually more pronounced than it is for other types of fixed
income securities, potentially increasing the volatility of the Fund.
Conversely, many mortgage-backed securities may be prepaid prior to
maturity and when interest rates decline, while the value of such
securities may increase, the rate of prepayment also tends to increase,
which shortens the effective duration of the securities. Mortgage-backed
securities are also subject to the risk that underlying borrowers will be
unable to meet their obligations, or that the value of property that
secures the mortgage may decline in value and be insufficient, upon
foreclosure, to repay the associated loan. Investments in asset-backed
securities are subject to similar risks.
|
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these securities.
|
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading markets.
|
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day-to-day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund owns.
Moreover, purchasing stocks perceived to be undervalued brings additional
risks. For example, the issuing company’s condition may worsen instead of
improve, or the pace and extent of any improvement may be less than
expected. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial investment.
|
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment
company or ETF presents the risk that the investment company or ETF in
which the Fund invests will not achieve its investment objective or
execute its investment strategies effectively or that significant purchase
or redemption activity by shareholders of such an investment company might
negatively affect the value of the investment company’s shares.
|
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by others.
|
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may decline.
|
28 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN STRATEGIC INCOME FUND (continued) |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired results.
|
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents.
|
1 Year | 5 Years | Since Inception ( |
||||||||||
Payden
Strategic Income Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
Bloomberg
US Aggregate Bond Index |
% | % | % |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 29 |
PAYDEN STRATEGIC INCOME FUND (continued) |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax‑Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden
& Rygel (“Payden”) has contractually agreed to waive its investment
advisory fee or reimburse Fund expenses to the extent that the Total
Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement
(excluding Acquired Fund Fees and Expenses, interest, taxes, and
extraordinary expenses) exceed 0.70%. This agreement has a one-year term
ending |
30 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN ABSOLUTE RETURN BOND FUND (continued) |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund’s absolute return 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. Downside risk
protection is a part of the strategy, but there is no guarantee or
implication that negative returns will be avoided.
|
ª |
Under
normal market conditions, the Fund will invest at least 80% of its
investable assets (net assets plus borrowing for investment purposes, if
any) in bonds or investments that provide exposure to bonds. Investments
in “bonds” may include, but are not limited to (1) debt securities issued
or guaranteed by the U.S. Government, and foreign governments and their
agencies and instrumentalities, political subdivisions of foreign
governments (such as provinces and municipalities), and supranational
organizations (such as the World Bank); (2) debt securities and commercial
paper issued by U.S. and foreign companies; (3) U.S. and foreign
mortgage-related securities, including collateralized mortgage-backed
obligations, credit risk transfer securities and commercial
mortgage-backed obligations; (4) U.S. and foreign asset-backed debt
securities, including collateralized debt obligations and collateralized
loan obligations; (5) loans, including floating rate loans; and (6)
municipal securities, which are debt obligations issued by state and local
governments, territories and possessions of the United States, regional
governmental authorities, and their agencies and instrumentalities, the
interest on which may, or may not, be exempt from Federal income tax.
|
ª |
The
Fund may also invest in (1) convertible bonds, contingent convertible
bonds and preferred stock; (2) real estate investment trusts; and (3)
master limited partnerships. In evaluating these types of investments,
Payden seeks instruments consistent with the income generating focus of
the Fund. |
ª |
The
Fund invests in both investment grade debt securities and securities rated
below investment grade. Investment grade debt securities are rated within
the four highest grades by at least one Nationally Recognized Statistical
Rating Organization, or are securities that the Fund’s adviser, Payden
& Rygel (“Payden”), determines to be of comparable quality.
|
ª |
The
Fund will invest in both developed and emerging markets. In making these
investments, the Fund invests in securities payable in U.S. dollars and
foreign currencies. The Fund may hedge this foreign currency exposure to
the U.S. dollar. However, the Fund may also choose to have currency
exposure through outright currency purchases unrelated to a foreign
currency-denominated security.
|
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or short.
|
ª |
The
Fund invests in debt securities of any maturity, and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its principal. In
addition, there may be circumstances when the duration of the Fund is
negative to protect against rising interest rates. Duration is an analytic
measure of the Fund’s sensitivity to interest rate movements. The absolute
return nature of the Fund will generally lead to durations that are
between negative 2 years and positive 5 years.
|
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 31 |
PAYDEN ABSOLUTE RETURN BOND FUND (continued) |
ª |
Absolute return strategy risk. As
indicated in the Fund’s Principal Investment Strategies, the absolute
return strategy seeks to have positive absolute returns over the long term
through price appreciation or income or a combination of both. In seeking
to achieve that goal, the Fund seeks opportunities by employing a flexible
approach that evaluates security attractiveness globally. However, while
downside risk protection is a part of the strategy, there is no guarantee
that negative returns will be avoided. The performance of absolute return
strategies is designed to be independent of longer term movements in the
stock and bond markets. But, interest rate levels and currency valuations
will not always respond as expected and portfolio securities may remain
over-or under-valued. Similarly, absolute return strategies may not
generate current income when interest rates decline.
|
ª |
Interest Rates. 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.
Generally, the market price of debt securities with longer maturities will
fluctuate more in response to changes in interest rates than the market
price of shorter-term securities. The Fund faces a heightened risk that
interest rates may rise. The negative impact on fixed income securities
resulting from such rate increases could be swift and significant. A
general rise in interest rates may cause investors to move out of fixed
income securities on a large scale, which could adversely affect the price
and liquidity of fixed income securities and could also result in
increased redemptions from the Fund.
|
ª |
Credit Risk. Debt instruments are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt securities.
|
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a pandemic.
|
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities fluctuate more than the market
prices of investment grade debt securities and may decline more
significantly in periods of general economic difficulty.
|
32 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN ABSOLUTE RETURN BOND FUND (continued) |
ª |
Mortgage-Backed/Asset-Backed Securities.
Investing in mortgage-backed and asset-backed securities poses additional
risks, principally driven by changes in interest rates. When interest
rates increase the market values of mortgage-backed securities decline. At
the same time, mortgage refinancings and prepayments slow, which lengthens
the effective duration of these securities. As a result, the negative
effect of increasing interest rates on the market value of mortgage-backed
securities is usually more pronounced than it is for other types of fixed
income securities, potentially increasing the volatility of the Fund.
Conversely, many mortgage-backed securities may be prepaid prior to
maturity and when interest rates decline, while the value of such
securities may increase, the rate of prepayment also tends to increase,
which shortens the effective duration of the securities. Mortgage-backed
securities are also subject to the risk that underlying borrowers will be
unable to meet their obligations, or that the value of property that
secures the mortgage may decline in value and be insufficient, upon
foreclosure, to repay the associated loan. Investments in asset-backed
securities are subject to similar risks.
|
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these securities.
|
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading markets.
|
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day-to-day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund owns.
Moreover, purchasing stocks perceived to be undervalued brings additional
risks. For example, the issuing company’s condition may worsen instead of
improve, or the pace and extent of any improvement may be less than
expected. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial investment.
|
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s shares.
|
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by others.
|
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may decline.
|
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired results.
|
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 33 |
PAYDEN ABSOLUTE RETURN BOND FUND (continued) |
and
financial intermediaries, to suffer data breaches, data corruption or loss
of operational functionality or prevent fund investors from purchasing,
redeeming or exchanging shares or receiving distributions. The Fund and
the Fund’s portfolio managers have limited ability to prevent or mitigate
cybersecurity incidents affecting third party service providers.
Cybersecurity incidents may result in financial losses to the Fund and its
shareholders, and substantial costs may be incurred in order to prevent
any future cybersecurity incidents.
|
1 Year | 5 Years | Since Inception ( |
||||||||||
Payden
Absolute Return Bond Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
Bloomberg
US Treasury Bills 1-Month Index |
% | % | % |
34 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN ABSOLUTE RETURN BOND FUND (continued) |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax‑Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
PAYDEN CORPORATE BOND FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Acquired
Fund Fees and Expenses1 |
% | |||
Total
Annual Fund Operating Expenses |
% |
1 |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 35 |
PAYDEN CORPORATE BOND FUND (continued) |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund invests in a wide variety of debt instruments and income-producing
securities. These include (1) debt securities, loans and commercial
paper issued by U.S. and foreign companies; (2) debt securities
issued or guaranteed by the U.S. Government and foreign governments
and their agencies and instrumentalities, political subdivisions of
foreign governments (such as provinces and municipalities), and
supranational organizations (such as the World Bank); (3) U.S. and
foreign mortgage-backed and asset-backed securities; (4) municipal
securities, which are debt obligations issued by state and local
governments, territories and possessions of the United States, regional
governmental authorities, and their agencies and instrumentalities, the
interest on which may, or may not, be exempt from Federal income tax; and
(5) convertible bonds and preferred stock.
|
ª |
Under
normal market conditions, the Fund invests at least 80% of its total
assets in corporate bonds or similar corporate debt instruments. In
addition, in order to gain exposure to corporate debt markets, the Fund
may use derivatives to a significant extent, including in particular,
credit default swaps with respect to individual corporate names and with
respect to various credit indices.
|
ª |
Under
normal market conditions, the Fund invests at least 65% of its total
assets in securities rated investment grade at the time of purchase, and
may invest up to 35% of its total assets in securities rated below
investment grade. Investment grade debt securities are rated within the
four highest grades by at least one Nationally Recognized Statistical
Rating Organization, or are securities that the Fund’s adviser, Payden
& Rygel (“Payden”), determines to be of comparable quality.
|
ª |
The
Fund may invest up to 25% of its total assets in securities of issuers
organized or headquartered in emerging market countries.
|
ª |
The
Fund may invest up to 20% of its total assets in equity securities of U.S.
or foreign issuers, and may use derivatives to gain exposure to such
equity markets.
|
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or short.
|
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund invests in debt securities payable in U.S. dollars and in
foreign currencies. The Fund may hedge this foreign currency exposure to
the U.S. dollar.
|
ª |
The
Fund invests in debt securities of any maturity and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its principal.
|
ª |
Interest Rates. As with most bond funds,
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. Generally, the market
price of debt securities with longer maturities will fluctuate more in
response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt |
36 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN CORPORATE BOND FUND (continued) |
obligation.
Generally, higher-rated debt securities involve lower credit risk than
lower-rated debt securities. Credit risk is often higher for corporate,
mortgage-backed, asset-backed and foreign government debt securities than
for U.S. Government debt securities.
|
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a pandemic.
|
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic difficulty.
|
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these securities.
|
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading markets.
|
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss
|
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 37 |
PAYDEN CORPORATE BOND FUND (continued) |
on
derivative transactions may substantially exceed the initial investment.
As noted above in the Principal Investment Strategies discussion, the Fund
expects in particular to use credit default swaps. A principal risk of
credit default swaps is the credit risk of the issuer, which is similar to
a principal risk of owning a traditional bond.
|
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day-to-day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund owns.
Moreover, purchasing stocks perceived to be undervalued brings additional
risks. For example, the issuing company’s condition may worsen instead of
improve, or the pace and extent of any improvement may be less than
expected. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s shares.
|
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by others.
|
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may decline.
|
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired results.
|
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents.
|
38 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN CORPORATE BOND FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Corporate Bond Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
Bloomberg
US Corporate Bond Index |
% | % | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax‑Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 39 |
PAYDEN CORPORATE BOND FUND (continued) |
PAYDEN HIGH INCOME FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Acquired
Fund Fees and Expenses1 |
% | |||
Total
Annual Fund Operating Expenses |
% |
1 |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund invests in a wide variety of debt instruments and income-producing
securities. These include (1) debt securities, loans and commercial
paper issued by U.S. and foreign companies; (2) debt securities
issued or guaranteed by the U.S. Government and foreign governments
and their agencies and instrumentalities, political subdivisions of
foreign governments (such as provinces and municipalities), and
supranational organizations (such as the World Bank); (3) municipal
securities, which are debt obligations issued by state and local
governments, territories and possessions of the United States, regional
governmental authorities, and their agencies and instrumentalities, the
interest on which may, or may not, be exempt from Federal income tax; and
(4) convertible bonds and preferred
stock. |
ª |
Under
normal market conditions, the Fund invests at least 80% of its total
assets in corporate debt securities rated below investment grade (commonly
called “high yield”). Below investment grade debt securities are rated
below the four highest grades by at least one Nationally Recognized
Statistical Rating Organization, or are securities that the Fund’s
adviser, Payden & Rygel (“Payden”), determines to be of comparable
quality. |
40 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN HIGH INCOME FUND (continued) |
ª |
The
Fund emphasizes investments in debt securities of (1) issuers with
credit ratings at the mid to high quality end of the high yield bond
spectrum, which Payden believes have stable to improving business
prospects; (2) issuers Payden believes have reasonable prospects for
improved operating results and improved credit
ratings. |
ª |
The
Fund may invest up to 30% of its total assets in securities of issuers
organized or headquartered in emerging market
countries. |
ª |
The
Fund may invest up to 20% of its total assets in equity securities of
U.S. or foreign
issuers. |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or
short. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund primarily invests in debt securities payable in U.S. dollars and
may invest in foreign currencies. The Fund may hedge this foreign currency
exposure to the
U.S. dollar. |
ª |
The
Fund invests in debt securities of any maturity and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its
principal. |
ª |
Interest Rates. As with most bond funds,
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. Generally, the market
price of debt securities with longer maturities will fluctuate more in
response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt
securities. |
ª |
Below Investment Grade Credit. Below
investment grade securities (commonly called “high yield”) are speculative
and involve a greater risk of default and price change due to changes in
the issuer’s creditworthiness. The market prices of these debt securities
may fluctuate more than the market prices of investment grade debt
securities and may decline more significantly in periods of general
economic
difficulty. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a
pandemic. |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 41 |
PAYDEN HIGH INCOME FUND (continued) |
difficult
to value. If the Fund must sell illiquid assets to meet redemption
requests or other cash needs, the Fund may be unable to sell such assets
at an advantageous time or price or achieve its desired level of exposure
to certain market segments. Liquidity risk may result from the lack of an
active market, as well as the reduced number and capacity of traditional
market participants to make a market in fixed income securities, for
instance, when there are few, if any, interested buyers or sellers or when
dealers are unwilling or unable to make a market for certain securities.
As a general matter, dealers recently have been less willing to make
markets for fixed income securities. Recent federal banking regulations
may also cause certain dealers to reduce their inventories of certain
securities, which may further decrease the Fund’s ability to buy or sell
such securities. Liquidity risk is likely to be magnified in a rising
interest rate environment or other circumstances where investor
redemptions from fixed income mutual funds are higher than
normal. |
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these
securities. |
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading
markets. |
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day‑to‑day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund
owns. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial
investment. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may
decline. |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired
results. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund
investors |
42 | FUND SUMMARIES – U.S. BOND FUNDS | Payden Funds |
PAYDEN HIGH INCOME FUND (continued) |
from
purchasing, redeeming or exchanging shares or receiving distributions. The
Fund and the Fund’s portfolio managers have limited ability to prevent or
mitigate cybersecurity incidents affecting third party service providers.
Cybersecurity incidents may result in financial losses to the Fund and its
shareholders, and substantial costs may be incurred in order to prevent
any future cybersecurity
incidents. |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
High Income Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
ICE
BofA BB-B US Cash Pay High Yield Constrained Index |
% | % | % |
Prospectus | FUND SUMMARIES – U.S. BOND FUNDS | 43 |
PAYDEN HIGH INCOME FUND (continued) |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax‑Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
PAYDEN FLOATING RATE FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Acquired
Fund Fees and Expenses2 |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden
& Rygel (“Payden”) has contractually agreed to waive its investment
advisory fee or reimburse Fund expenses to the extent that the Total
Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement
(excluding Acquired Fund Fees and Expenses, interest, taxes, and
extraordinary expenses) exceed 0.70%. This agreement has a one-year term
ending |
2 |
44 | FUND SUMMARIES – U.S. LOAN FUND | Payden Funds |
PAYDEN FLOATING RATE FUND (continued) |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
Under
normal market conditions the Fund invests at least 80% of its total assets
in income producing floating rate loans and other floating rate debt
instruments. Floating rate loans are typically debt obligations with
interest rates that adjust or “float” periodically, often on a daily,
monthly, quarterly, or semiannual basis by reference to a base lending
rate plus a
premium. |
ª |
The
Fund invests primarily in senior floating rate loans of domestic and
foreign borrowers. The reason these loans are called “senior” is because
loans are considered senior in a borrower’s capital structure in that no
debt is ahead of the loans in terms of priority of payment. Where an
instrument ranks in priority of payment is referred to as seniority. Based
on this ranking, a corporate issuer in the event of a default will
direct payments such that the senior most creditors are paid first, while
the most junior equity holders are paid last. In a typical structure,
senior secured and unsecured creditors will be first in right of payment,
followed by subordinate bond holders, junior bondholders, preferred
shareholders and common shareholders. Loans are typically senior, secured
debt instruments and rank highest in the capital structure of
corporations. Thus, throughout this discussion, the floating rate loans in
which the Fund invests are referred to as “Senior
Loans.” |
ª |
The
Fund invests in Senior Loans that are syndicated loans. These loans are
structured by a syndicator, such as a bank or other lender, which also
markets the loans to potential investors, such as the Fund. The Fund may
invest in Senior Loans in one of three ways. First, much like an initial
public offering of equity securities, the Fund could be one of the initial
investors in the Senior Loan and thus would invest directly as a signatory
to the original loan agreement. Second, the Fund could also invest
directly in the Senior Loan by assignment from an original lender. Third,
the Fund may invest indirectly in the Senior Loan through a loan
participation
agreement. |
ª |
Under
normal market conditions, the Fund invests a substantial portion of its
total assets in Senior Loans and other debt instruments that are rated
below investment grade. Investment grade debt securities are rated within
the four highest grades by at least one Nationally Recognized Statistical
Rating Organization, or are securities that the Fund’s adviser, Payden
& Rygel (“Payden”), determines to be of comparable
quality. |
ª |
Payden
seeks to maintain broad borrower and industry diversification among the
Fund’s Senior Loans. When selecting Senior Loans, Payden seeks to
implement a systematic risk-weighted approach that utilizes fundamental
analysis of risk/return characteristics. Senior Loans may be sold if, in
Payden’s opinion, the risk-return profile deteriorates or to pursue more
attractive investment
opportunities. |
ª |
The
Fund may also invest in secured and unsecured subordinated loans, second
lien loans and subordinated bridge loans, other floating rate debt
securities, fixed income debt obligations and money market instruments.
Money market holdings with a remaining maturity of less than 60 days are
deemed floating rate
assets. |
ª |
To
the extent the Fund invests in assets that are denominated in a currency
other than the U.S. dollar, the Fund may engage in foreign currency
exchange contracts and other currency strategies to convert such foreign
currencies into U.S. dollars to hedge against fluctuations in currency
exchange
rates. |
ª |
To
the extent the Fund invests in fixed rate Senior Loans, other fixed rate
loans or other fixed rate debt instruments, the Fund may engage in
interest rate swaps in which it pays a fixed rate of interest to a
counterparty and receives a floating rate of interest from the
counterparty to hedge against fluctuations in interest rates. In addition,
the notional amount of the Fund’s investments in interest rate swaps will
be the amount that is counted toward satisfaction of the Fund’s policy of
investing 80% of its total assets in floating rate loans or other floating
rate debt
instruments. |
ª |
The
Fund may invest up to 20% of its assets in fixed rate fixed income
securities in which the Fund has not entered into any interest rate swaps.
Such fixed rate fixed income securities include, but are not limited to,
corporate bonds, preferred securities, convertible securities,
asset-backed securities, mortgage-backed securities and U.S. Government
debt securities. |
Prospectus | FUND SUMMARIES – U.S. LOAN FUND | 45 |
PAYDEN FLOATING RATE FUND (continued) |
ª |
The
Fund’s investments in any floating rate and fixed income securities may be
of any
maturity. |
ª |
The
Fund may invest up to 20% of its total assets in equity securities of U.S.
or foreign
issuers. |
ª |
The
Fund may invest up to 30% of its total assets in collateralized loan
obligations (“CLOs”). CLOs are asset-backed securities that are formed to
hold and manage diversified pools of Senior Loans. These asset-backed
structures issue several debt tranches that typically include at least an
AAA-rated tranche, an AA-rated tranche and a BBB-rated tranche and that
have rights to the collateral and payment stream, in descending order. The
proceeds from the debt tranches are used to purchase the corporate loans.
CLOs are usually rated by two of the three major ratings agencies and
impose a series of covenant tests on the respective collateral managers,
including minimum rating and industry diversification. The Fund would
potentially invest in these rated debt tranches issued by the
CLOs. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
Credit Risk. Debt instruments are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
instrument will be unable to make interest or principal payments on time
and the related risk that the value of a debt security may decline because
of concerns about the issuer’s ability or willingness to make such
payments. A debt instrument’s credit rating reflects the credit risk
associated with the debt obligation. Generally, higher-rated debt
instruments involve lower credit risk than lower-rated debt instruments.
Credit risk is often higher for corporate, mortgage-backed, asset-backed
and foreign government debt instruments than for U.S. Government debt
instruments. |
ª |
Senior Loans Risk. There is less readily
available, reliable information about most Senior Loans than is the case
for many other types of securities. An economic downturn generally leads
to a higher non-payment rate, and a Senior Loan may lose significant value
before a default occurs. Moreover, any specific collateral used to secure
a Senior Loan may decline in value or become illiquid, which would
adversely affect the Senior Loan’s value. No active trading market may
exist for certain Senior Loans, which may impair the ability of the Fund
to realize full value in the event of the need to sell a Senior Loan and
which may make it difficult to value Senior Loans. Also, because Payden
relies mainly on its own evaluation of the creditworthiness of borrowers,
the Fund is particularly dependent on portfolio management’s analytical
abilities. Although Senior Loans in which the Fund will invest generally
will be secured by specific collateral, there can be no assurance that
liquidation of such collateral would satisfy the borrower’s obligation in
the event of non-payment of scheduled interest or principal or that such
collateral could be readily liquidated. In addition, bank loans are
subject to various restrictive covenants that protect the lender or
investor. Loans with fewer or no restrictive covenants, “covenant light”
loans, provide the issuer more flexibility and reduce investor protections
in the event of a breach, and may cause the fund to experience more
difficulty or delay in enforcing its right. A significant portion of bank
loans are “covenant light.” Transactions in Senior Loans and other loans
may settle on a delayed basis (which in some cases may be several weeks or
longer). As a result, the proceeds from the sale of a loan may not be
immediately available to make additional investments or to meet the Fund’s
redemption obligations. Senior Loans and other loans may not be considered
“securities” for certain purposes, and purchasers (such as the Fund)
therefore may not be entitled to rely on the anti-fraud protections and
other safeguards provided by U.S. federal securities
laws. |
ª |
Below Investment Grade Credit. Below
investment grade instruments are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt instruments may fluctuate more than the
market prices of investment grade debt instruments and may decline more
significantly in periods of general economic
difficulty. |
ª |
Interest Rates. As interest rates rise,
the value of fixed income investments is likely to decline. Conversely,
when interest rates decline, the value of fixed income investments is
likely to rise. The impact of interest rate changes on floating rate
investments is typically mitigated by the periodic interest rate reset of
the investments. Investments with longer maturities typically offer higher
yields, but are more sensitive to changes in interest rates than
investments with shorter maturities, making them more volatile. The Fund
faces a heightened risk that interest rates may rise. The negative impact
on fixed income securities resulting from such rate increases could be
swift and significant. In a declining interest rate environment,
prepayment of loans may increase. In such circumstances, the Fund may have
to reinvest the repayment proceeds at lower yields. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken
by |
46 | FUND SUMMARIES – U.S. LOAN FUND | Payden Funds |
PAYDEN FLOATING RATE FUND (continued) |
the
U.S. Federal Reserve or foreign central banks, market disruptions caused
by trade disputes or other factors, political developments, armed
conflict, investor sentiment and the global and domestic effects of a
pandemic. |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these
securities. |
ª |
Collateralized Loan Obligations Risk. In
addition to the normal interest rate, liquidity, credit, default and other
risks of debt instruments, collateralized loan obligations carry
additional risks, including the possibility that distributions from
collateral securities will not be adequate to make interest or other
payments, the quality of the collateral may decline in value or default,
the Fund may invest in collateralized loan obligations that are
subordinate to other classes, values may be volatile, and disputes with
the issuer may produce unexpected investment
results. |
ª |
Mortgage-Backed/Asset-Backed Securities.
Investing in mortgage-backed and asset-backed securities poses additional
risks, principally driven by changes in interest rates. When interest
rates increase the market values of mortgage-backed securities decline. At
the same time, mortgage refinancings and prepayments slow, which lengthens
the effective duration of these securities. As a result, the negative
effect of increasing interest rates on the market value of mortgage-backed
securities is usually more pronounced than it is for other types of fixed
income securities, potentially increasing the volatility of the Fund.
Conversely, many mortgage-backed securities may be prepaid prior to
maturity and when interest rates decline, while the value of such
securities may increase, the rate of prepayment also tends to increase,
which shortens the effective duration of the securities. Mortgage-backed
securities are also subject to the risk that underlying borrowers will be
unable to meet their obligations, or that the value of property that
secures the mortgage may decline in value and be insufficient, upon
foreclosure, to repay the associated loan. Investments in asset-backed
securities are subject to similar
risks. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is |
Prospectus | FUND SUMMARIES – U.S. LOAN FUND | 47 |
PAYDEN FLOATING RATE FUND (continued) |
unable
to honor its commitments, the value of Fund shares may decline and the
Fund could experience delays in the return of collateral or other assets
held by the counterparty. The loss on derivative transactions may
substantially exceed the initial investment. As noted above in the
Principal Investment Strategies discussion, the Fund expects in particular
to use interest rate swaps. A principal risk of interest rate swaps is
that the Fund’s investment adviser could incorrectly forecast interest
rates. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may
decline. |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired
results. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity
incidents. |
48 | FUND SUMMARIES – U.S. LOAN FUND | Payden Funds |
PAYDEN FLOATING RATE FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Floating Rate Fund |
||||||||||||
Before
Taxes |
% | % | ||||||||||
After
Taxes on Distributions |
% | % | ||||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | ||||||||||
Credit
Suisse Institutional Leveraged Loan BB Index |
% | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax‑Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Prospectus | FUND SUMMARIES – TAX EXEMPT BOND FUND | 49 |
PAYDEN CALIFORNIA MUNICIPAL SOCIAL IMPACT FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden &
Rygel (“Payden”) has contractually agreed to waive its investment advisory
fee or reimburse Fund expenses to the extent that the Total Annual Fund
Operating Expenses After Fee Waiver or Expense Reimbursement (excluding
Acquired Fund Fees and Expenses, interest, taxes, and extraordinary
expenses) exceed 0.45%. This agreement has a one‑year term ending
|
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
Under
normal market circumstances, the Fund invests at least 80% of its net
assets (plus borrowings for investment purposes, if any) in “California
Municipal Securities,” which are defined as debt obligations issued by the
State of California, local governments and other authorities in
California, and their agencies and instrumentalities, or by other issuers,
all of which pay interest income exempt from Federal and California
personal income tax. The policy of the Fund to invest at least 80% of its
net assets in California Municipal Securities is fundamental, which means
that it may be changed only with shareholder approval.
|
ª |
The
Fund may invest up to 20% of its net assets in a wide variety of debt
instruments and income-producing securities. These include (1) debt
securities, loans and commercial paper issued by U.S. and foreign
companies; (2) debt securities issued or guaranteed by the U.S.
Government and foreign governments and their agencies and
instrumentalities, political subdivisions of foreign governments (such as
provinces and municipalities), and supranational organizations (such as
the World Bank); (3) U.S. and foreign mortgage-backed and
asset-backed securities; (4) “Municipal Securities,” which are debt
obligations issued by state and local governments, territories and
possessions of the United States, regional governmental authorities, and
their agencies and instrumentalities, the interest on which may, or may
not, be exempt from Federal income tax; and (5) convertible bonds and
preferred stock.
|
ª |
However,
the interest income which may be paid by either the California Municipal
Securities or the Municipal Securities, may in each case be subject to the
Federal alternative minimum tax.
|
ª |
Social Impact Investing. Under normal
market circumstances, the Fund invests at least 80% of its total assets in
California Municipal Securities or other Municipal Securities, each as
defined above, with respect to which, in the opinion of the Adviser the
proceeds raised are used consistent with positive social impact practices
and outcomes. While the fundamental credit research process utilized by
the Adviser already includes consideration of material environmental,
social, and governance (ESG) risks, the Adviser applies additional
screening metrics when selecting suitable investments for the Fund.
Investment opportunities are evaluated for project and issuer alignment
with the Green and Social Bond Principles of the International Capital
Markets Association (ICMA), which serves as the primary inclusionary
screening tool for securities with qualifying impact attributes. The
impact assessment |
50 | FUND SUMMARIES – TAX EXEMPT BOND FUND | Payden Funds |
PAYDEN CALIFORNIA MUNICIPAL SOCIAL IMPACT FUND (continued) |
framework
is further enhanced by key indicators that help identify issuers with
strong governance and risk management practices, as well as a deliberative
approach to the management and mitigation of material environmental and
social risks through sound sustainability policies and practices. These
indicators include, but are not limited to, clarity in the application of
the use of proceeds, prudent stewardship of bond proceeds and other
financial resources, prioritization of projects and initiatives with
positive social and environmental outcomes, timely disclosure and
transparency, and other governance practices that signal strong commitment
to accountability and stakeholder engagement. Although investment
opportunities can come from any municipal market sector or issuer,
regional and socioeconomic relevance of the deployment of capital
resources will also be taken into consideration. To that end, the Adviser
focuses on what it believes to be the principal impact sectors, such as
essential services and utilities, primary and community college education,
healthcare and social services, affordable housing, renewable energy and
resource recovery and economic development and connectivity.
|
ª |
Under
normal market circumstances, the Fund invests at least 75% of its total
assets in investment grade debt securities, but may invest up to 25% of
its total assets in debt securities rated below investment grade. The
overall average credit quality of the Fund will remain investment grade.
Investment grade debt securities are rated within the four highest grades
by at least one Nationally Recognized Statistical Rating Organization, or
are securities that the Fund’s adviser, Payden, determines to be of
comparable quality.
|
ª |
The
Fund invests in debt securities of any maturity and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its principal.
However, the Fund’s average portfolio maturity (on a dollar-weighted
basis) is generally three to ten years. In calculating the Fund’s average
portfolio maturity, the Fund uses a security’s stated maturity, or if
applicable, an earlier date based on the Adviser’s belief that the
security may be subject, for example, to a call, a put, a refunding, a
prepayment, a redemption provision, an adjustable coupon rate, or the
like, that will cause the security to be repaid earlier.
|
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or short.
|
ª |
Interest Rates. As with most bond funds,
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. Generally, the market
price of debt securities with longer maturities will fluctuate more in
response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Municipal Securities. Investing in the
Municipal Securities market involves certain risks. The amount of public
information available about Municipal Securities is generally less than
that for corporate equities or bonds, and the Fund’s investment
performance may therefore be more dependent on Payden’s analytical
abilities than if the Fund were to invest in stocks or taxable bonds.
|
ª |
California Municipal Securities. Because
the Fund invests primarily in California Municipal Securities, its
performance is subject to economic and political developments in the State
of California. California Municipal Securities may be adversely affected
by political and economic conditions and developments within California
and the nation as a whole. |
Prospectus | FUND SUMMARIES – TAX EXEMPT BOND FUND | 51 |
PAYDEN CALIFORNIA MUNICIPAL SOCIAL IMPACT FUND (continued) |
ª |
Social Impact Investing Risk. The Fund’s
policy of investing in California Municipal Securities or other Municipal
Securities with respect to which, in the Adviser’s opinion, the proceeds
raised are used consistent with positive social and/or environmental
practices and outcomes could cause the Fund to perform differently
compared to other mutual funds that do not have such a policy. For
example, investing in securities with respect to which, in the Adviser’s
opinion, the proceeds raised are consistent with positive social and/or
environmental practices and outcomes may result in the Fund (a) foregoing
opportunities to buy certain other California Municipal Securities or
other Municipal Securities when it might otherwise be advantageous to
invest in them, or (b) selling such securities when it might
otherwise be disadvantageous for the Fund to do so. In addition, there is
a risk that the proceeds of California Municipal Securities or other
Municipal Securities identified by the Adviser’s use of proceeds
determination do not provide the anticipated positive social and/or
environmental benefits. The Adviser’s impact investment criteria may
affect the Fund’s relative investment performance depending on the
performance of the Fund’s California Municipal Securities or other
Municipal Securities relative to the broader municipal securities market.
In addition, the factors that the Adviser considers in evaluating whether
the proceeds raised in connection with the offering of a California
Municipal Security or other Municipal Security are used consistent with
positive social and/or environmental benefits may change over time.
Further there are significant differences in interpretations of what it
means to promote positive social and/or environmental benefits. While the
Adviser believes its definitions are reasonable, the portfolio decisions
it makes may differ with others’ views. Finally, in making investment
decisions, the Adviser relies on information and third-party data that
could be incomplete or erroneous, which in turn, could cause the Adviser
to incorrectly assess whether the proceeds raised in a California
Municipal Security or other Municipal Security offering are used
consistent with positive social and/or environmental practices and
outcomes. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a pandemic.
|
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic difficulty.
|
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
|
52 | FUND SUMMARIES – TAX EXEMPT BOND FUND | Payden Funds |
PAYDEN CALIFORNIA MUNICIPAL SOCIAL IMPACT FUND (continued) |
causing
the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial investment.
|
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s shares.
|
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by others.
|
ª |
Redemption Risk. The Fund may experience heavy
redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may decline.
|
ª |
Management Risk. The investment techniques and analysis
used by the Fund’s portfolio managers may not produce the desired results.
|
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents.
|
Prospectus | FUND SUMMARIES – TAX EXEMPT BOND FUND | 53 |
PAYDEN CALIFORNIA MUNICIPAL SOCIAL IMPACT FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
California Municipal Social Impact Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
Bloomberg
Municipal Bond 7-Year Index |
% | % | % | |||||||||
Bloomberg
Municipal Bond California Intermediate Index |
% | % | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
54 | FUND SUMMARIES – TAX EXEMPT BOND FUND | Payden Funds |
PAYDEN CALIFORNIA MUNICIPAL SOCIAL IMPACT FUND (continued) |
PAYDEN GLOBAL LOW DURATION FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Guaranteed Fee Waiver or Expense
Reimbursement |
% | |||
One-year
Fee Waiver or Expense Reimbursement2 |
% | |||
Total
Annual Fund Operating Expenses After Further One-Year Fee Waiver or
Expense Reimbursement |
% |
1 | Payden
& Rygel (“Payden”) has contractually agreed that, for so long as it is
the investment adviser to the Fund, the Total Annual Fund Operating
Expenses After Fee Waiver or Expense Reimbursement (excluding Acquired
Fund Fees and Expenses, interest, taxes, and extraordinary expenses) will
not exceed 0.70%. |
2 | 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
(excluding Acquired Fund Fees and Expenses, interest, taxes, and
extraordinary expenses) exceed 0.53%. This agreement has a one-year term
ending |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 55 |
PAYDEN GLOBAL LOW DURATION FUND (continued) |
ª |
The
Fund invests in a wide variety of debt instruments and income-producing
securities. These include (1) debt securities issued or guaranteed by
the U.S. Government and foreign governments and their agencies and
instrumentalities, political subdivisions of foreign governments (such as
provinces and municipalities), and supranational organizations (such as
the World Bank); (2) debt securities, loans and commercial paper
issued by U.S. and foreign companies; (3) U.S. and foreign
mortgage-related securities, including collateralized mortgage-backed
obligations, credit risk transfer securities and commercial
mortgage-backed obligations, and U.S. and foreign asset-backed debt
securities, including collateralized debt obligations and collateralized
loan obligations; (4) municipal securities, which are debt
obligations issued by state and local governments, territories and
possessions of the United States, regional governmental authorities, and
their agencies and instrumentalities, the interest on which may, or may
not, be exempt from Federal income tax; and (5) convertible bonds and
preferred stock. |
ª |
The
Fund invests at least 65% of its total assets in investment grade debt
securities. However, the Fund may invest up to 35% of its total assets in
debt securities rated below investment grade. The overall average credit
quality of the Fund will remain investment grade. Investment grade debt
securities are rated within the four highest grades by at least one
Nationally Recognized Statistical Rating Organization, or are securities
that the Fund’s adviser, Payden & Rygel (“Payden”), determines to be
of comparable
quality. |
ª |
Under
normal market conditions, the Fund invests at least 65% of its total
assets in debt securities of issuers organized or headquartered in at
least three countries, one of which may be the United States. The Fund may
invest in debt securities of issuers organized or headquartered in
emerging market
countries. |
ª |
The
Fund invests in debt securities payable in U.S. dollars and in
foreign currencies, and the Fund generally hedges most of its foreign
currency exposure to the
U.S. dollar. |
ª |
The
Fund invests in debt securities of any maturity. Maturity is the date when
each bond or other debt security pays back its principal. Under normal
market conditions, the Fund’s maximum average portfolio maturity (on a
dollar-weighted basis) is four years. In calculating the Fund’s average
portfolio maturity, the Fund uses a security’s stated maturity, or if
applicable, an earlier date based on the Adviser’s belief that the
security may be subject, for example, to a call, a put, a refunding, a
prepayment, a redemption provision, an adjustable coupon rate, or the
like, that will cause the security to be repaid
earlier. |
ª |
The
Fund may invest up to 20% of its total assets in equity securities of
U.S. or foreign
issuers. |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or
short. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
Interest Rates. Because the Fund invests
principally 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. Generally, the market price of debt securities with longer
maturities will fluctuate more in response to changes in interest rates
than the market price of shorter-term securities. The Fund faces a
heightened risk that interest rates may rise. The negative impact on fixed
income securities resulting from such rate increases could be swift and
significant. A general rise in interest rates may cause investors to move
out of fixed income securities on a large scale, which could adversely
affect the price and liquidity of fixed income securities and could also
result in increased redemptions from the
Fund. |
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt
securities. |
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these
securities. |
56 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN GLOBAL LOW DURATION FUND (continued) |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a
pandemic. |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading
markets. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic
difficulty. |
ª |
Mortgage-Backed/Asset-Backed Securities.
Investing in mortgage-backed and asset-backed securities poses additional
risks, principally driven by changes in interest rates. When interest
rates increase the market values of mortgage-backed securities decline. At
the same time, mortgage refinancings and prepayments slow, which lengthens
the effective duration of these securities. As a result, the negative
effect of increasing interest rates on the market value of mortgage-backed
securities is usually more pronounced than it is for other types of fixed
income securities, potentially increasing the volatility of the Fund.
Conversely, many mortgage-backed securities may be prepaid prior to
maturity and when interest rates decline, while the value of such
securities may increase, the rate of prepayment also tends to increase,
which shortens the effective duration of the securities. Mortgage-backed
securities are also subject to the risk that underlying borrowers will be
unable to meet their obligations, or that the value of property that
secures the mortgage may decline in value and be insufficient, upon
foreclosure, to repay the associated loan. Investments in asset-backed
securities are subject to similar
risks. |
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day‑to‑day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund owns.
Moreover, purchasing stocks perceived to be undervalued brings additional
risks. For example, the issuing company’s condition may worsen instead of
improve, or the pace and extent of any improvement may be less than
expected. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or
market |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 57 |
PAYDEN GLOBAL LOW DURATION FUND (continued) |
segment,
their performance may not correlate as expected to the performance of such
market thereby causing the Fund to fail to achieve its original purpose
for using such derivatives. A decision as to whether, when and how to use
derivatives involves the exercise of specialized skill and judgment, and a
transaction may be unsuccessful in whole or in part because of market
behavior or unexpected events. Derivative instruments may be difficult to
value, may be illiquid, and may be subject to wide swings in valuation
caused by changes in the value of the underlying instrument. If a
derivative’s counterparty is unable to honor its commitments, the value of
Fund shares may decline and the Fund could experience delays in the return
of collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial
investment. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may
decline. |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired
results. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity
incidents. |
58 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN GLOBAL LOW DURATION FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Global Low Duration Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
ICE
BofA 1-3 Year US Corporate & Government Index |
% | % | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 5,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 2,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 2,000 | $ | 250 | ||||
No
set schedule |
$ | 5,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 59 |
PAYDEN GLOBAL FIXED INCOME FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Acquired
Fund Fees and Expenses1 |
% | |||
Total
Annual Fund Operating Expenses |
% |
1 |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
Under
normal market conditions, the Fund invests at least 80% of its total
assets in a wide variety of debt instruments and income-producing
securities. These include (1) debt securities issued or guaranteed by
the U.S. Government and foreign governments and their agencies and
instrumentalities, political subdivisions of foreign governments (such as
provinces and municipalities), and supranational organizations (such as
the World Bank); (2) debt securities, loans and commercial paper
issued by U.S. and foreign companies; (3) U.S. and foreign
mortgage-backed and asset-backed debt securities; (4) municipal
securities, which are debt obligations issued by state and local
governments, territories and possessions of the United States, regional
governmental authorities, and their agencies and instrumentalities, the
interest on which may, or may not, be exempt from Federal income tax; and
(5) convertible bonds and preferred
stock. |
ª |
The
Fund invests at least 65% of its total assets in investment grade debt
securities. However, the Fund may invest up to 35% of its total assets in
debt securities rated below investment grade. The overall average credit
quality of the Fund will remain investment grade. Investment grade debt
securities are rated within the four highest grades by at least one
Nationally Recognized Statistical Rating Organization, or are securities
that the Fund’s adviser, Payden & Rygel (“Payden”), determines to be
of comparable
quality. |
ª |
Under
normal market conditions, the Fund invests at least 65% of its total
assets in debt securities of issuers organized or headquartered in at
least three countries, one of which may be the United States. The Fund may
invest in debt securities of issuers organized or headquartered in
emerging market
countries. |
ª |
The
Fund invests in debt securities payable in U.S. dollars and in
foreign currencies, and the Fund generally hedges most of its foreign
currency exposure to the
U.S. dollar. |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated bonds or to take an active
position in a currency, both long or
short. |
60 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN GLOBAL FIXED INCOME FUND (continued) |
ª |
The
Fund invests in debt securities of any maturity, and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its principal.
However, under normal market conditions, the Fund’s average portfolio
maturity (on a dollar-weighted basis) will not exceed ten years. In
calculating the Fund’s average portfolio maturity, the Fund uses a
security’s stated maturity, or if applicable, an earlier date based on the
Adviser’s belief that the security may be subject, for example, to a call,
a put, a refunding, a prepayment, a redemption provision, an adjustable
coupon rate, or the like, that will cause the security to be repaid
earlier. |
ª |
The
Fund may invest up to 10% of its total assets in equity securities of
U.S. or foreign
issuers. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
Interest Rates. Because the Fund invests
principally 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. Generally, the market price of debt securities with longer
maturities will fluctuate more in response to changes in interest rates
than the market price of shorter-term securities. The Fund faces a
heightened risk that interest rates may rise. The negative impact on fixed
income securities resulting from such rate increases could be swift and
significant. A general rise in interest rates may cause investors to move
out of fixed income securities on a large scale, which could adversely
affect the price and liquidity of fixed income securities and could also
result in increased redemptions from the
Fund. |
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt
securities. |
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these
securities. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a
pandemic. |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 61 |
PAYDEN GLOBAL FIXED INCOME FUND (continued) |
market
participants to make a market in fixed income securities, for instance,
when there are few, if any, interested buyers or sellers or when dealers
are unwilling or unable to make a market for certain securities. As a
general matter, dealers recently have been less willing to make markets
for fixed income securities. Recent federal banking regulations may also
cause certain dealers to reduce their inventories of certain securities,
which may further decrease the Fund’s ability to buy or sell such
securities. Liquidity risk is likely to be magnified in a rising interest
rate environment or other circumstances where investor redemptions from
fixed income mutual funds are higher than
normal. |
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading
markets. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic
difficulty. |
ª |
Mortgage-Backed/Asset-Backed Securities.
Investing in mortgage-backed and asset-backed securities poses additional
risks, principally driven by changes in interest rates. When interest
rates increase the market values of mortgage-backed securities decline. At
the same time, mortgage refinancings and prepayments slow, which lengthens
the effective duration of these securities. As a result, the negative
effect of increasing interest rates on the market value of mortgage-backed
securities is usually more pronounced than it is for other types of fixed
income securities, potentially increasing the volatility of the Fund.
Conversely, many mortgage-backed securities may be prepaid prior to
maturity and when interest rates decline, while the value of such
securities may increase, the rate of prepayment also tends to increase,
which shortens the effective duration of the securities. Mortgage-backed
securities are also subject to the risk that underlying borrowers will be
unable to meet their obligations, or that the value of property that
secures the mortgage may decline in value and be insufficient, upon
foreclosure, to repay the associated loan. Investments in asset-backed
securities are subject to similar
risks. |
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day‑to‑day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund owns.
Moreover, purchasing stocks perceived to be undervalued brings additional
risks. For example, the issuing company’s condition may worsen instead of
improve, or the pace and extent of any improvement may be less than
expected. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial
investment. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment
company or ETF presents the risk that the investment company or ETF in
which the Fund invests will not achieve its investment objective or
execute its investment strategies effectively or that significant purchase
or redemption activity by shareholders of such an investment company might
negatively affect the value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may
decline. |
62 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN GLOBAL FIXED INCOME FUND (continued) |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired
results. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity
incidents. |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Global Fixed Income Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
Bloomberg
Global Aggregate Index (USD Hedged) |
% | % | % |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 63 |
PAYDEN GLOBAL FIXED INCOME FUND (continued) |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 5,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 2,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 2,000 | $ | 250 | ||||
No
set schedule |
$ | 5,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
PAYDEN EMERGING MARKETS BOND FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
64 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN EMERGING MARKETS BOND FUND (continued) |
ª |
The
Fund invests in a wide variety of debt instruments and income-producing
securities. These include (1) debt securities issued or guaranteed by
the U.S. Government and foreign governments and their agencies and
instrumentalities, political subdivisions of foreign governments (such as
provinces and municipalities), and supranational organizations (such as
the World Bank); (2) debt securities, loans and commercial paper
issued by U.S. and foreign companies; and (3) convertible bonds and
preferred stock. |
ª |
Under
normal market conditions, the Fund invests at least 80% of its total
assets in debt securities and similar debt instruments issued by
governments, agencies and instrumentalities of emerging market countries
(or economically linked with such securities), and other issuers
organized, headquartered or principally located in emerging market
countries. Generally, an “emerging market country” is any country which
the International Monetary Fund, the World Bank, the International Finance
Corporation, the United Nations or another third party organization
defines as having an emerging or developing
economy. |
ª |
The
Fund may invest up to 20% of its total assets in other debt securities and
similar debt instruments, including those of issuers located in countries
with developed securities
markets. |
ª |
Under
normal market conditions, the Fund may invest a substantial portion of its
total assets in debt securities of issuers whose securities are rated
below investment grade. Investment grade debt securities are rated within
the four highest grades by at least one Nationally Recognized Statistical
Rating Organization, or are securities that the Fund’s adviser, Payden
& Rygel (“Payden”), determines to be of comparable
quality. |
ª |
The
Fund invests a majority of its assets in debt securities payable in
U.S. dollars, but will also invest in debt securities payable in
foreign
currencies. |
ª |
Permitted
investments also include currencies and derivative instruments (including,
but not limited to, spot and currency contracts, futures, options and
swaps) used to hedge or gain exposure to the securities markets of
emerging market countries or
currencies. |
ª |
The
Fund invests in debt securities of any maturity, and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its
principal. |
ª |
The
Fund may invest up to 10% of its total assets in equity securities of U.S.
or foreign issuers, and may use derivatives to hedge or to gain exposure
to such equity
markets. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
Interest Rates. Because the Fund invests
principally 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. Generally, the market price of debt securities with longer
maturities will fluctuate more in response to changes in interest rates
than the market price of shorter-term securities. The Fund faces a
heightened risk that interest rates may rise. The negative impact on fixed
income securities resulting from such rate increases could be swift and
significant. A general rise in interest rates may cause investors to move
out of fixed income securities on a large scale, which could adversely
affect the price and liquidity of fixed income securities and could also
result in increased redemptions from the
Fund. |
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt
securities. |
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these
securities. |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 65 |
PAYDEN EMERGING MARKETS BOND FUND (continued) |
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading
markets. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a
pandemic. |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic
difficulty. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and the underlying instrument. Derivatives risk may be more
significant when derivatives are used to enhance return or as a substitute
for a cash investment position, rather than solely to hedge the risk of a
position held by the Fund. When derivatives are used to gain or limit
exposure to a particular market or market segment, their performance may
not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial
investment. |
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day-to-day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund owns.
Moreover, purchasing stocks perceived to be undervalued brings additional
risks. For example, the issuing company’s condition may worsen instead of
improve, or the pace and extent of any improvement may be less than
expected. |
66 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN EMERGING MARKETS BOND FUND (continued) |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may
decline. |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired
results. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity
incidents. |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 67 |
PAYDEN EMERGING MARKETS BOND FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Emerging Markets Bond Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | – |
% | % | ||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | – |
% | % | ||||||||
J.P.
Morgan EMBI Global Diversified Index |
% | % | % | |||||||||
(The
returns for the index are before any deduction for taxes, fees or
expenses.)
|
|
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
68 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN EMERGING MARKETS LOCAL BOND FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden &
Rygel (“Payden”) has contractually agreed to waive its investment advisory
fee or reimburse Fund expenses to the extent that the Total Annual Fund
Operating Expenses After Fee Waiver or Expense Reimbursement (excluding
Acquired Fund Fees and Expenses, interest, taxes, and extraordinary
expenses) exceed 0.99%. This agreement has a one-year term ending
|
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
Under
normal market conditions, the Fund invests at least 80% of its total
assets in a wide variety of Bonds. “Bonds” include (1) debt
securities issued or guaranteed by the U.S. Government and foreign
governments and their agencies and instrumentalities, political
subdivisions of foreign governments (such as provinces and
municipalities), and supranational organizations (such as the World Bank),
or credit-linked notes issued with respect to such securities and
(2) debt securities and commercial paper issued by U.S. and
foreign companies, or credit-linked notes issued with respect to such
securities. |
ª |
Under
normal market conditions, the Fund invests at least 80% of its total
assets in Emerging Market Investments. “Emerging Market Investments”
include Bonds and other debt instruments and income-producing securities
that are issued by governments, agencies and instrumentalities of emerging
market countries and other issuers organized, headquartered or principally
located in emerging market countries, or that are denominated in the local
currency of an emerging market country (“Emerging Market Currency”), or
whose performance is linked to an emerging market country’s currency,
markets, economy or ability to repay loans. Generally, an “emerging market
country” is any country which the International Monetary Fund, the World
Bank, the International Finance Corporation, the United Nations or another
third party organization defines as having an emerging or developing
economy. |
ª |
Emerging
Market Investments also include Emerging Market Currencies and derivative
instruments (including, but not limited to, spot and currency contracts,
futures, options and swaps) used to hedge or gain exposure to the
securities markets of emerging market countries or Emerging Market
Currencies. The Fund may use derivatives to a significant extent,
including in particular, currency contracts, futures, interest rate swaps
and credit-linked
notes. |
ª |
Under
normal market conditions, a significant portion of the Fund’s investments
will be denominated in Emerging Market Currencies. However, Emerging
Market Investments may be denominated in non-Emerging Market Currencies,
including the
U.S. dollar. |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 69 |
PAYDEN EMERGING MARKETS LOCAL BOND FUND (continued) |
ª |
The
Fund may invest up to 20% of its total assets in debt instruments and
income-producing securities that are not Bonds, including for example,
loans made by U.S. and foreign companies, the Payden Emerging Markets Bond
Fund and the Payden Emerging Markets Corporate Bond
Fund. |
ª |
The
Fund may invest up to 20% of its total assets in Bonds and other debt
instruments and income-producing securities other than Emerging Market
Investments, including those of issuers located in countries with
developed securities
markets. |
ª |
Under
normal market conditions, the Fund may invest a substantial portion of its
total assets in debt securities of issuers whose securities are rated
below investment grade. Investment grade debt securities are rated within
the four highest grades by at least one Nationally Recognized Statistical
Rating Organization, or are securities that the Fund’s adviser, Payden
& Rygel (“Payden”), determines to be of comparable
quality. |
ª |
Permitted
investments also include currencies and derivative instruments (including,
but not limited to, spot and currency contracts, futures, options and
swaps) used to hedge or gain exposure to the securities markets of
emerging market countries or
currencies. |
ª |
Under
normal market conditions, the average portfolio duration of the Fund
varies within two years (plus or minus) of the duration of the J.P. Morgan
Government Bond Index-Emerging Markets Global Diversified Index
(Unhedged), which as of February 12, 2024 was 4.97 years. Duration is
a measure of the expected life of a fixed income security that is used to
determine the sensitivity of a security’s price to changes in interest
rates. For example, the impact of either an increase or a decrease in
interest rates will be greater for a fund that has a longer duration than
for a fund that has a shorter
duration. |
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
The
Fund is “non-diversified,” which means that Payden may from time to time
invest a larger percentage of the Fund’s assets in securities of a limited
number of
issuers. |
ª |
Interest Rates. As with most bond funds,
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. Generally, the market
price of debt securities with longer maturities will fluctuate more in
response to changes in interest rates than the market price of
shorter-term securities. The Fund faces a heightened risk that interest
rates may rise. The negative impact on fixed income securities resulting
from such rate increases could be swift and significant. A general rise in
interest rates may cause investors to move out of fixed income securities
on a large scale, which could adversely affect the price and liquidity of
fixed income securities and could also result in increased redemptions
from the Fund. |
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt
securities. |
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these
securities. |
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading
markets. |
ª |
Local Currency. Because the Fund’s
emphasis will be on investing in securities denominated in the currencies
of emerging market countries, the Fund is subject to the significant risk
that it could experience losses based solely on the weakness of foreign
currencies versus the U.S. dollar and changes in the exchange rates
between such currencies and the
U.S. dollar. |
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken
by |
70 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN EMERGING MARKETS LOCAL BOND FUND (continued) |
the
U.S. Federal Reserve or foreign central banks, market disruptions caused
by trade disputes or other factors, political developments, armed
conflict, investor sentiment and the global and domestic effects of a
pandemic. |
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and the underlying instrument. Derivatives risk may be more
significant when derivatives are used to enhance return or as a substitute
for a cash investment position, rather than solely to hedge the risk of a
position held by the Fund. When derivatives are used to gain or limit
exposure to a particular market or market segment, their performance may
not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If a derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial investment.
As noted above in the Principal Investment Strategies discussion, the Fund
expects in particular to use interest rate swaps. A principal risk of
interest rate swaps is that the Fund’s investment adviser could
incorrectly forecast interest
rates. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic
difficulty. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s
shares. |
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by
others. |
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may
decline. |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 71 |
PAYDEN EMERGING MARKETS LOCAL BOND FUND (continued) |
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired
results. |
ª |
Non-Diversification. The Fund is
“non-diversified,” which means that compared with diversified funds, the
Fund may invest a greater percentage of its assets in a particular issuer.
Accordingly, events that affect a few — or even one — of the
Fund’s investments may have a greater impact on the value of the Fund’s
shares than they would if the Fund were
diversified. |
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity
incidents. |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Emerging Markets Local Bond Fund |
||||||||||||
Before
Taxes |
% | % | – |
% | ||||||||
After
Taxes on Distributions |
% | % | – |
% | ||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | – |
% | ||||||||
J.P.
Morgan GBI-EM Global Diversified Index |
% | % | % |
72 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN EMERGING MARKETS LOCAL BOND FUND (continued) |
Account Type | Initial Investment |
Additional Investment |
||||||
Regular |
$ | 5,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 2,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 2,000 | $ | 250 | ||||
No
set schedule |
$ | 5,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
PAYDEN EMERGING MARKETS CORPORATE BOND FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Acquired
Fund Fees and Expenses2 |
% | |||
Total
Annual Fund Operating Expenses |
% | |||
Fee
Waiver or Expense Reimbursement1 |
% | |||
Total
Annual Fund Operating Expenses After Fee Waiver or Expense
Reimbursement |
% |
1 | Payden
& Rygel (“Payden”) has contractually agreed to waive its investment
advisory fee or reimburse Fund expenses to the extent that the Total
Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement
(excluding Acquired Fund Fees and Expenses, interest, taxes, and
extraordinary expenses) exceed 0.95%. This agreement has a one-year term
ending |
2 |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 73 |
PAYDEN EMERGING MARKETS CORPORATE BOND FUND (continued) |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund invests in a wide variety of debt instruments and income-producing
securities. These include (1) debt securities, loans and commercial paper
issued by U.S. and foreign companies and (2) debt securities issued or
guaranteed by the U.S. Government and foreign governments and their
agencies and instrumentalities, political subdivisions of foreign
governments (such as provinces and municipalities), and supranational
organizations (such as the World Bank).
|
ª |
Under
normal market conditions, the Fund invests at least 80% of its total
assets in corporate bonds issued by Corporate issuers (as defined below)
organized or headquartered in emerging market countries, or whose business
operations are principally located in emerging market countries.
Generally, an “emerging market country” is any country which the
International Monetary Fund, the World Bank, the International Finance
Corporation, the United Nations or another third party organization
defines as having an emerging or developing economy. A Corporate issuer is
an issuer located in an emerging market country or an issuer deriving at
least 50% of its revenues or profits from goods produced or sold,
investments made, or services performed in one or more emerging markets
countries or that has at least 50% of its assets in one or more emerging
market countries. For these purposes, Corporate issuers may include
corporate or other business entities in which a sovereign or governmental
agency or entity may have, indirectly or directly, an interest, including
a majority or greater ownership interest.
|
ª |
The
Fund may invest up to 20% of its total assets in other debt securities and
similar debt instruments, including those of issuers located in countries
with developed securities markets.
|
ª |
Under
normal market conditions, the Fund may invest a substantial portion of its
total assets in debt securities of issuers whose securities are rated
below investment grade. Investment grade debt securities are rated within
the four highest grades by at least one Nationally Recognized Statistical
Rating Organization, or are securities that the Fund’s adviser, Payden
& Rygel (“Payden”), determines to be of comparable quality.
|
ª |
Permitted
investments also include currencies and derivative instruments (including,
but not limited to, spot and currency contracts, futures, options and
swaps) used to hedge or gain exposure to the securities markets of
emerging market countries or currencies.
|
ª |
The
Fund invests a majority of its assets in debt securities payable in U.S.
dollars, but will also invest in debt securities payable in foreign
currencies. The Fund may hedge this foreign currency exposure to the U.S.
dollar. |
ª |
The
Fund invests in debt securities of any maturity, and there is no limit on
the Fund’s minimum or maximum average portfolio maturity. Maturity is the
date when each bond or other debt security pays back its principal.
|
ª |
The
Fund may invest up to 20% of its total assets in equity securities of U.S.
or foreign issuers, and may use derivatives to hedge or to gain exposure
to such equity markets.
|
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies, and including investment companies for
which the Adviser provides investment management services (affiliated
funds). |
ª |
Interest Rates. Because the Fund invests
principally 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. Generally, the market price of debt securities with longer
maturities will fluctuate more in response to changes in interest rates
than the market price of shorter-term securities. The Fund
|
74 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN EMERGING MARKETS CORPORATE BOND FUND (continued) |
faces
a heightened risk that interest rates may rise. The negative impact on
fixed income securities resulting from such rate increases could be swift
and significant. A general rise in interest rates may cause investors to
move out of fixed income securities on a large scale, which could
adversely affect the price and liquidity of fixed income securities and
could also result in increased redemptions from the Fund.
|
ª |
Credit Risk. Debt securities are also
subject to credit risk. Credit risk is the risk that the issuer of a debt
security will be unable to make interest or principal payments on time and
the related risk that the value of a debt security may decline because of
concerns about the issuer’s ability or willingness to make such payments.
A debt security’s credit rating reflects the credit risk associated with
the debt obligation. Generally, higher-rated debt securities involve lower
credit risk than lower-rated debt securities. Credit risk is often higher
for corporate, mortgage-backed, asset-backed and foreign government debt
securities than for U.S. Government debt securities.
|
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities. The value of the Fund’s
investments may decline because of factors affecting the particular issuer
as well as foreign markets and issuers generally, such as unfavorable or
unsuccessful government actions, reduction of government or central bank
support and political or financial instability. Lack of information may
also affect the value, volatility and liquidity of these securities.
|
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading markets.
|
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a pandemic.
|
ª |
Liquidity Risk. Some investments may be
difficult to purchase or sell, particularly during times of market
instability, or due to adverse changes in the conditions of a particular
issuer. In addition, the Fund may not receive proceeds from the sale of
certain securities for an extended period of time, which in some cases
could exceed several weeks or longer. The Fund will not receive sales
proceeds until settlement occurs, which may constrain the Fund’s ability
to meet redemption requests or other obligations. Illiquid assets may also
be difficult to value. If the Fund must sell illiquid assets to meet
redemption requests or other cash needs, the Fund may be unable to sell
such assets at an advantageous time or price or achieve its desired level
of exposure to certain market segments. Liquidity risk may result from the
lack of an active market, as well as the reduced number and capacity of
traditional market participants to make a market in fixed income
securities, for instance, when there are few, if any, interested buyers or
sellers or when dealers are unwilling or unable to make a market for
certain securities. As a general matter, dealers recently have been less
willing to make markets for fixed income securities. Recent federal
banking regulations may also cause certain dealers to reduce their
inventories of certain securities, which may further decrease the Fund’s
ability to buy or sell such securities. Liquidity risk is likely to be
magnified in a rising interest rate environment or other circumstances
where investor redemptions from fixed income mutual funds are higher than
normal. |
ª |
Below Investment Grade Credit. Below
investment grade securities are speculative and involve a greater risk of
default and price change due to changes in the issuer’s creditworthiness.
The market prices of these debt securities may fluctuate more than the
market prices of investment grade debt securities and may decline more
significantly in periods of general economic difficulty.
|
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and the underlying instrument. Derivatives risk may be more
significant when derivatives are used to enhance return or as a substitute
for a cash investment position, rather
|
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 75 |
PAYDEN EMERGING MARKETS CORPORATE BOND FUND (continued) |
than
solely to hedge the risk of a position held by the Fund. When derivatives
are used to gain or limit exposure to a particular market or market
segment, their performance may not correlate as expected to the
performance of such market thereby causing the Fund to fail to achieve its
original purpose for using such derivatives. A decision as to whether,
when and how to use derivatives involves the exercise of specialized skill
and judgment, and a transaction may be unsuccessful in whole or in part
because of market behavior or unexpected events. Derivative instruments
may be difficult to value, may be illiquid, and may be subject to wide
swings in valuation caused by changes in the value of the underlying
instrument. If a derivative’s counterparty is unable to honor its
commitments, the value of Fund shares may decline and the Fund could
experience delays in the return of collateral or other assets held by the
counterparty. The loss on derivative transactions may substantially exceed
the initial investment.
|
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day-to-day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund owns.
Moreover, purchasing stocks perceived to be undervalued brings additional
risks. For example, the issuing company’s condition may worsen instead of
improve, or the pace and extent of any improvement may be less than
expected. |
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s shares.
|
ª |
Affiliated Fund Risk. When the Adviser
invests Fund assets in an investment company that is also managed by the
Adviser, the risk presented is that, due to its own financial interest or
other business considerations, the Adviser may have had an incentive to
make that investment in lieu of investments by the Fund directly in
portfolio securities, or in lieu of investment in investment companies
sponsored or managed by others.
|
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may decline.
|
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired results.
|
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents.
|
76 | FUND SUMMARIES – GLOBAL BOND FUNDS | Payden Funds |
PAYDEN EMERGING MARKETS CORPORATE BOND FUND (continued) |
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Emerging Markets Corporate Bond Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
J.P.
Morgan CEMBI Broad Diversified Index |
% | % | % |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 5,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 2,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 2,000 | $ | 250 | ||||
No
set schedule |
$ | 5,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Prospectus | FUND SUMMARIES – GLOBAL BOND FUNDS | 77 |
PAYDEN EMERGING MARKETS CORPORATE BOND FUND (continued) |
PAYDEN EQUITY INCOME FUND |
Shareholder Fees (fees paid directly from
your investment) |
||||
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
||||
Management
Fee |
% | |||
Other
Expenses |
% | |||
Total
Annual Fund Operating Expenses |
% |
1 Year | 3 Years | 5 Years | 10 Years | |||||||||
$ |
$ | $ | $ |
ª |
The
Fund invests primarily in large capitalization value stocks, defined as
stocks with sustainable cash flows that have the ability to pay and grow
their dividends over time, and other income producing equity securities,
including by way of example, preferred stocks, real estate investment
trusts and master limited partnerships. Payden uses a combination of
quantitative techniques and fundamental analysis to identify large
capitalization companies with durable cash flows that are capable of
paying and increasing their dividend over time, which may drive price
appreciation. The Fund seeks to construct a portfolio of equity securities
that will provide market participation with an above-market dividend yield
and better risk-adjusted returns over a long-term time horizon. The Fund’s
benchmark is the Russell 1000 Value Index. However, the Fund’s investments
include only a limited portion of the common stocks included in the
benchmark and also include income producing equity securities that are not
included in the benchmark. In addition, the Fund will seek to provide a
higher level of current income than the benchmark.
|
ª |
The
Fund invests principally in U.S. securities, but may invest up to 30% of
its total assets in foreign securities, including companies organized or
headquartered in emerging markets. The Fund may invest in foreign
securities either directly or through American Depositary Receipts on U.S.
exchanges. |
78 | FUND SUMMARIES – U.S. EQUITY FUND | Payden Funds |
PAYDEN EQUITY INCOME FUND (continued) |
ª |
The
Fund may invest in many different types of derivatives, such as futures,
forwards, swaps and options. These positions may be used for the purposes
of either hedging currency exposure in the portfolio or to obtain exposure
to various market sectors. Currency positions may be employed for the
purposes of hedging non-dollar denominated securities or to take an active
position in a currency, both long or short.
|
ª |
To
gain exposure to various markets consistent with the investment strategies
of the Fund, the Fund may invest in exchange-traded funds (“ETFs”) and
other investment companies, including for example, other open-end or
closed-end investment companies.
|
ª |
Equity Securities. Investing in equity
securities poses certain risks, including a sudden decline in a holding’s
share price, or an overall decline in the stock market. The value of the
Fund’s investment in any such securities will fluctuate on a day‑to‑day
basis with movements in the stock market, as well as in response to the
activities of individual companies whose equity securities the Fund owns.
Moreover, purchasing stocks perceived to be undervalued brings additional
risks. For example, the issuing company’s condition may worsen instead of
improve, or the pace and extent of any improvement may be less than
expected. |
ª |
Fund versus Index Fund. The Fund is not
an index fund, as indicated above, and is managed in ways that diverge
from the benchmark. Thus, changes in the Fund’s net asset value per share
will not track changes in the general stock market or the Fund’s
benchmark. |
ª |
Foreign Investments. Investing in
foreign securities poses additional risks. The performance of foreign
securities can be adversely affected by the different political,
regulatory and economic environments in countries where the Fund invests,
and fluctuations in foreign currency exchange rates may also adversely
affect the value of foreign securities.
|
ª |
Emerging Markets. The risks of foreign
investing are heightened for securities of issuers in emerging market
countries. Emerging market countries tend to have economic structures that
are less diverse and mature, and political systems that are less stable,
than those of developed countries. In addition to all of the risks of
investing in foreign developed markets, emerging markets are more
susceptible to governmental interference, local taxes being imposed on
foreign investments, restrictions on gaining access to sales proceeds, and
less liquid and efficient trading markets.
|
ª |
Derivatives. The use of derivatives can
lead to losses due to: (1) adverse movements in the price or value of the
asset, index, rate or instrument underlying a derivative; (2) failure of a
counterparty; or (3) tax or regulatory constraints. Derivatives may create
economic leverage in the Fund, which magnifies the Fund’s sensitivity to
market events and to the underlying instrument. Derivatives risk may be
more significant when derivatives are used to enhance return or as a
substitute for a cash investment position, rather than solely to hedge the
risk of a position held by the Fund. When derivatives are used to gain or
limit exposure to a particular market or market segment, their performance
may not correlate as expected to the performance of such market thereby
causing the Fund to fail to achieve its original purpose for using such
derivatives. A decision as to whether, when and how to use derivatives
involves the exercise of specialized skill and judgment, and a transaction
may be unsuccessful in whole or in part because of market behavior or
unexpected events. Derivative instruments may be difficult to value, may
be illiquid, and may be subject to wide swings in valuation caused by
changes in the value of the underlying instrument. If derivative’s
counterparty is unable to honor its commitments, the value of Fund shares
may decline and the Fund could experience delays in the return of
collateral or other assets held by the counterparty. The loss on
derivative transactions may substantially exceed the initial investment.
|
ª |
Investment Company and Exchange-Traded Fund
Risk. Investing in an investment company or ETF presents the risk
that the investment company or ETF in which the Fund invests will not
achieve its investment objective or execute its investment strategies
effectively or that significant purchase or redemption activity by
shareholders of such an investment company might negatively affect the
value of the investment company’s shares.
|
ª |
Market Events Risk. The value of the
Fund’s securities may increase or decrease, rapidly or unpredictably. Some
factors that may affect securities markets include changes in general
market conditions, overall economic trends or events, governmental actions
or intervention, threat of a U.S. government shutdown, a downgrade of the
ratings of U.S. government debt obligations, actions taken by the U.S.
Federal Reserve or foreign central banks, market disruptions caused by
trade disputes or other factors, political developments, armed conflict,
investor sentiment and the global and domestic effects of a pandemic.
|
Prospectus | FUND SUMMARIES – U.S. EQUITY FUND | 79 |
PAYDEN EQUITY INCOME FUND (continued) |
ª |
Redemption Risk. The Fund may experience
heavy redemptions that could cause the Fund to liquidate its assets at
inopportune times or at a loss or depressed value, particularly during
periods of declining or illiquid markets. Redemption risk is greater to
the extent that the Fund has investors with large shareholdings, short
investment horizons, or unpredictable cash flow needs. In addition,
redemption risk is heightened during periods of overall market turmoil.
The redemption by one or more large shareholders of their holdings in the
Fund could adversely affect the Fund’s performance. If the Fund is forced
to liquidate its assets under unfavorable conditions or at inopportune
times, the value of the Fund’s shares may decline.
|
ª |
Management Risk. The investment
techniques and analysis used by the Fund’s portfolio managers may not
produce the desired results.
|
ª |
Cybersecurity Risk. Cybersecurity
incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data, including
private shareholder information, or proprietary information, cause the
Fund, the Fund’s portfolio managers and/or their service providers,
including, but not limited to, Fund accountants, custodians, transfer
agents and financial intermediaries, to suffer data breaches, data
corruption or loss of operational functionality or prevent fund investors
from purchasing, redeeming or exchanging shares or receiving
distributions. The Fund and the Fund’s portfolio managers have limited
ability to prevent or mitigate cybersecurity incidents affecting third
party service providers. Cybersecurity incidents may result in financial
losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents.
|
1 Year | 5 Years | 10 Years | ||||||||||
Payden
Equity Income Fund |
||||||||||||
Before
Taxes |
% | % | % | |||||||||
After
Taxes on Distributions |
% | % | % | |||||||||
After
Taxes on Distributions and Sale of Fund Shares |
% | % | % | |||||||||
Russell
1000 Value Index |
% | % | % |
80 | FUND SUMMARIES – U.S. EQUITY FUND | Payden Funds |
PAYDEN EQUITY INCOME FUND (continued) |
ACCOUNT TYPE | INITIAL INVESTMENT |
ADDITIONAL INVESTMENT |
||||||
Regular |
$ | 100,000 | $ | 250 | ||||
Tax-Sheltered |
$ | 100,000 | $ | 250 | ||||
Electronic
Investment |
||||||||
Set
schedule |
$ | 100,000 | $ | 250 | ||||
No
set schedule |
$ | 100,000 | $ | 250 | ||||
Automatic
Exchange |
NA | $ | 250 |
Prospectus |
MORE ABOUT
INVESTMENT STRATEGIES, RELATED RISKS AND DISCLOSURE OF PORTFOLIO HOLDINGS |
81 |
82 |
MORE ABOUT
INVESTMENT STRATEGIES, RELATED RISKS AND DISCLOSURE OF PORTFOLIO HOLDINGS |
Payden Funds |
ª |
The
Government National Mortgage Association (GNMA) issues mortgage-backed
securities that are collateralized by home loans. Principal and interest
payments of GNMA securities are backed by the full faith and credit of the
U.S. Government; however, this support does not apply to losses resulting
from declines in the market value of GNMA
securities. |
ª |
Each
of the Federal National Mortgage Association (FNMA) and the Federal Home
Loan Mortgage Corporation (FHLMC) issue debt obligations in order to
purchase home mortgages. Both agencies package a portion of these
mortgages into mortgage-backed securities that are sold to investors such
as the Funds. These securities are not backed by the full faith and credit
of the U.S. Government. However, both FNMA and FHLMC benefit from a
contractual agreement with the U.S. Treasury (the Senior Preferred
Stock Purchase Agreement), as discussed below. |
ª |
The
Federal Home Loan Bank System (FHLB) is comprised of eleven regional banks
that provide liquidity and credit to thrift institutions, credit unions
and commercial banks. FHLB issues debt obligations to fund its operations.
These debt obligations are not backed by the full faith and credit of the
U.S. Government. |
ª |
The
Federal Farm Credit Bank System (FFCB) is comprised of cooperatively owned
lending institutions that provide credit to farmers and farm-affiliated
businesses. FFCB issues debt obligations to fund its operations. These
debt obligations are not backed by the full faith and credit of the
U.S. Government, nor can FFCB borrow from the
U.S. Treasury. |
Prospectus |
MORE ABOUT
INVESTMENT STRATEGIES, RELATED RISKS AND DISCLOSURE OF PORTFOLIO HOLDINGS |
83 |
84 |
MORE ABOUT
INVESTMENT STRATEGIES, RELATED RISKS AND DISCLOSURE OF PORTFOLIO HOLDINGS |
Payden Funds |
Prospectus |
MORE ABOUT
INVESTMENT STRATEGIES, RELATED RISKS AND DISCLOSURE OF PORTFOLIO HOLDINGS |
85 |
86 |
MORE ABOUT
INVESTMENT STRATEGIES, RELATED RISKS AND DISCLOSURE OF PORTFOLIO HOLDINGS |
Payden Funds |
Prospectus |
MANAGEMENT OF THE FUNDS |
87 |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Adam
Congdon, Director |
10 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Kerry
Rapanot, Director |
22 years | |||
Mary
Beth Syal, Managing Director |
33 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Adam
Congdon, Director |
10 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Brian
Matthews, Managing Director |
38 years | |||
Kerry
Rapanot, Director |
22 years | |||
Mary
Beth Syal, Managing Director |
33 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Adam
Congdon, Director |
10 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Kerry
Rapanot, Director |
22 years | |||
Paul
Saint-Pasteur, Director |
15 years | |||
Mary
Beth Syal, Managing Director |
33 years |
88 |
MANAGEMENT OF THE FUNDS |
Payden Funds |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Timothy
Crawmer, Director |
6 years | |||
Gary
Greenberg, Director |
29 years | |||
Michael
Salvay, Managing Director |
27 years | |||
Mary
Beth Syal, Managing Director |
33 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Timothy
Crawmer, Director |
6 years | |||
Gary
Greenberg, Director |
29 years | |||
Michael
Salvay, Managing Director |
27 years | |||
Mary
Beth Syal, Managing Director |
33 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Timothy
Crawmer, Director |
6 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Brian
Matthews, Managing Director |
38 years | |||
Michael
Salvay, Managing Director |
27 years | |||
Mary
Beth Syal, Managing Director |
33 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Kristin
Ceva, Managing Director |
26 years | |||
Timothy
Crawmer, Director |
6 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Michael
Salvay, Managing Director |
27 years | |||
Natalie
Trevithick, Director |
12 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Kristin
Ceva, Managing Director |
26 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Brian
Matthews, Managing Director |
38 years | |||
Michael
Salvay, Managing Director |
27 years | |||
Eric
Souders, Director |
10 years |
Prospectus |
MANAGEMENT OF THE FUNDS |
89 |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Timothy
Crawmer, Director |
6 years | |||
Alfred
Giles, Managing Director |
11 years | |||
Michael
Salvay, Managing Director |
27 years | |||
Natalie
Trevithick, Director |
12 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Nicholas
Burns, Senior Vice President |
9 years | |||
Timothy
Crawmer, Director |
6 years | |||
Alfred
Giles, Managing Director |
11 years | |||
Jordan
Lopez, Director |
19 years | |||
Natalie
Trevithick, Director |
12 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Nicholas
Burns, Senior Vice President |
9 years | |||
Timothy
Crawmer, Director |
6 years | |||
Alfred
Giles, Managing Director |
11 years | |||
Jordan
Lopez, Director |
19 years | |||
Natalie
Trevithick, Director |
12 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Adam
Congdon, Director |
10 years | |||
Michael
Salvay, Managing Director |
27 years | |||
Mary
Beth Syal, Managing Director |
33 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Kristin
Ceva, Managing Director |
26 years | |||
Timothy
Crawmer, Director |
6 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Paul
Saint-Pasteur, Director |
15 years | |||
Michael
Salvay, Managing Director |
27 years |
90 |
MANAGEMENT OF THE FUNDS |
Payden Funds |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Kristin
Ceva, Managing Director |
26 years | |||
Arthur
Hovsepian, Director |
19 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Zubin
Kapadia, Senior Vice President |
7 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Kristin
Ceva, Managing Director |
26 years | |||
Arthur
Hovsepian, Director |
19 years | |||
Nigel
Jenkins, Managing Director |
18 years | |||
Zubin
Kapadia, Senior Vice President |
7 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Kristin
Ceva, Managing Director |
26 years | |||
Alfred
Giles, Managing Director |
11 years | |||
Arthur
Hovsepian, Director |
19 years | |||
Zubin
Kapadia, Senior Vice President |
7 years |
Portfolio Managers | Years Employed by Investment Advisor |
|||
Alfred
Giles, Managing Director |
11 years | |||
Micheal
Huynh, Senior Vice President |
19 years | |||
Natalie
Trevithick, Director |
12 years | |||
James
Wong, Managing Director |
29 years |
Prospectus |
MANAGEMENT OF THE FUNDS |
91 |
92 |
SHAREHOLDER INFORMATION |
Payden Funds |
Prospectus |
SHAREHOLDER INFORMATION |
93 |
94 |
SHAREHOLDER INFORMATION |
Payden Funds |
ª |
Your
financial institution must be a member of the
ACH. |
ª |
You
must complete and return an Account Privileges Change Form along with a
voided check or deposit slip, and it must be received by the Fund at least
15 days before the initial transaction. |
ª |
You
must establish an account with the Fund before the Electronic Investment
Plan goes into effect. |
ª |
The
Electronic Investment Plan will automatically terminate if all your shares
are redeemed, or if your financial institution rejects the transfer for
any reason, e.g., insufficient
funds. |
ª |
You
can terminate your participation in the Electronic Investment Plan by
writing to Payden Funds, P.O. Box 1611, Milwaukee, WI
53201-1611, or by phone, at 1‑800‑572‑9336, and it will become effective
the month following receipt. |
ª |
To
add bank information to an existing account. |
ª |
To
change your existing bank account of record. |
ª |
To
add telephone privileges. |
ª |
To
change account name due to marriage or divorce (you can also provide a
copy of the certified legal documents). |
ª |
To
change registered account holders. |
Prospectus |
SHAREHOLDER INFORMATION |
95 |
ª |
To
request a redemption in excess of $100,000, which must be in
writing. |
ª |
To
request a wire transfer of redemption proceeds to a bank account other
than the bank account of record. |
ª |
To
request redemption proceeds to be mailed to an address other than the
address of record. |
ª |
To
request redemption proceeds to be mailed to a person other than the record
owner of the shares. |
ª |
To
request a redemption within 30 days of an address
change. |
ª |
On
the IRA Transfer Form, if you are transferring your Payden Funds IRA to
another fund family. |
ª |
Certain
transactions on accounts involving executors, administrators, trustees or
guardians. |
96 |
SHAREHOLDER INFORMATION |
Payden Funds |
Prospectus |
SHAREHOLDER INFORMATION |
97 |
98 |
APPENDIX A |
Payden Funds |
Description of Ratings |
Prospectus |
APPENDIX A |
99 |
Description of Ratings (continued) |
100 |
APPENDIX A |
Payden Funds |
Description of Ratings (continued) |
Prospectus |
APPENDIX A |
101 |
Description of Ratings (continued) |
102 |
APPENDIX B |
Payden Funds |
Privacy Notice |
ª |
The
Fund application, or other forms; |
ª |
Oral
conversations or written correspondence between you and our
representatives; |
ª |
Your
transactions with us; and |
ª |
Electronic
sources, such as our Website, or E-Mails. |
Prospectus |
APPENDIX C |
103 |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
|
||||||||||||||||||||
Income
from investment activities: |
||||||||||||||||||||
Net
investment income |
0.04 | 0.01 | 0.00 | (1) | 0.01 | 0.02 | ||||||||||||||
Net
realized and unrealized gain |
(0.00 | )(1) | 0.00 | (1) | 0.00 | (1) | 0.00 | (1) | — | |||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.04 | 0.01 | 0.00 | 0.01 | 0.02 | |||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.04 | ) | (0.01 | ) | (0.00 | )(1) | (0.01 | ) | (0.02 | ) | ||||||||||
From
net realized gains |
— | — | — | (0.00 | )(1) | (0.00 | )(1) | |||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.04 | ) | (0.01 | ) | (0.00 | )(1) | (0.01 | ) | (0.02 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||||||
|
||||||||||||||||||||
Total
return |
4.57 | % | 0.78 | % | 0.02 | % | 0.57 | % | 2.10 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 446,743 | $ | 475,935 | $ | 500,758 | $ | 351,597 | $ | 274,957 | ||||||||||
Ratio
of gross expense to average net assets |
0.38 | % | 0.37 | % | 0.38 | % | 0.39 | % | 0.38 | % | ||||||||||
Ratio
of net expense to average net assets |
0.25 | % | 0.18 | % | 0.05 | % | 0.23 | % | 0.25 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
4.34 | % | 0.57 | % | (0.32 | )% | 0.35 | % | 1.94 | % | ||||||||||
Ratio
of net investment income to average net assets |
4.47 | % | 0.76 | % | 0.01 | % | 0.51 | % | 2.07 | % | ||||||||||
Portfolio
turnover rate |
n/a | n/a | n/a | n/a | n/a |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.36 | $ | 9.51 | $ | 9.50 | $ | 9.49 | $ | 9.46 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.44 | 0.10 | 0.06 | 0.15 | 0.25 | |||||||||||||||
Net
realized and unrealized gains (losses) |
0.11 | (0.14 | ) | 0.01 | 0.01 | 0.03 | ||||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.55 | (0.04 | ) | 0.07 | 0.16 | 0.28 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.41 | ) | (0.11 | ) | (0.06 | ) | (0.15 | ) | (0.25 | ) | ||||||||||
From
net realized gains |
(0.04 | ) | — | — | (0.00 | )(1) | (0.00 | )(1) | ||||||||||||
Return
of capital |
(0.00 | )(1) | — | — | — | — | ||||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.45 | ) | (0.11 | ) | (0.06 | ) | (0.15 | ) | (0.25 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.46 | $ | 9.36 | $ | 9.51 | $ | 9.50 | $ | 9.49 | ||||||||||
|
||||||||||||||||||||
Total
return |
5.76 | % | (0.41 | )% | 0.75 | % | 1.75 | % | 2.99 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 641,777 | $ | 546,444 | $ | 851,146 | $ | 1,219,514 | $ | 783,645 | ||||||||||
Ratio
of gross expense to average net assets |
0.48 | % | 0.52 | % | 0.49 | % | 0.54 | % | 0.55 | % | ||||||||||
Ratio
of net expense to average net assets |
0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
4.18 | % | 0.74 | % | 0.41 | % | 1.24 | % | 2.29 | % | ||||||||||
Ratio
of net investment income to average net assets |
4.42 | % | 1.02 | % | 0.64 | % | 1.53 | % | 2.59 | % | ||||||||||
Portfolio
turnover rate |
80 | % | 36 | % | 60 | % | 63 | % | 74 | % |
(1) |
Amount
is less than $0.005. |
104 |
APPENDIX C |
Payden Funds |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.47 | $ | 10.12 | $ | 10.22 | $ | 10.10 | $ | 9.91 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.31 | 0.13 | 0.18 | 0.18 | 0.24 | |||||||||||||||
Net
realized and unrealized gains (losses) |
0.08 | (0.60 | ) | 0.00 | (1) | 0.12 | 0.19 | |||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.39 | (0.47 | ) | 0.18 | 0.30 | 0.43 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.32 | ) | (0.14 | ) | (0.19 | ) | (0.18 | ) | (0.24 | ) | ||||||||||
From
net realized gains |
— | (0.03 | ) | (0.09 | ) | — | — | |||||||||||||
Return
of capital |
(0.01 | ) | (0.01 | ) | — | — | (0.00 | )(1) | ||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.33 | ) | (0.18 | ) | (0.28 | ) | (0.18 | ) | (0.24 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.53 | $ | 9.47 | $ | 10.12 | $ | 10.22 | $ | 10.10 | ||||||||||
|
||||||||||||||||||||
Total
return |
4.16 | % | (4.65 | )% | 0.84 | % | 3.00 | % | 4.39 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 572,864 | $ | 901,416 | $ | 1,604,077 | $ | 1,532,982 | $ | 1,523,037 | ||||||||||
Ratio
of gross expense to average net assets |
0.53 | % | 0.53 | % | 0.51 | % | 0.53 | % | 0.54 | % | ||||||||||
Ratio
of net expense to average net assets |
0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
3.20 | % | 1.27 | % | 0.75 | % | 1.64 | % | 2.27 | % | ||||||||||
Ratio
of net investment income to average net assets |
3.30 | % | 1.37 | % | 0.83 | % | 1.74 | % | 2.38 | % | ||||||||||
Portfolio
turnover rate |
102 | % | 98 | % | 138 | % | 211 | % | 166 | % |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.30 | $ | 10.29 | $ | 10.54 | $ | 10.35 | $ | 10.11 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.31 | (2) | 0.24 | (2) | 0.15 | (2) | 0.19 | (2) | 0.24 | (2) | ||||||||||
Net
realized and unrealized gains (losses) |
(0.14 | ) | (0.97 | ) | (0.18 | ) | 0.25 | 0.30 | ||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.17 | (0.73 | ) | (0.03 | ) | 0.44 | 0.54 | |||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.32 | ) | (0.26 | ) | (0.22 | ) | (0.25 | ) | (0.30 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.16 | $ | 9.30 | $ | 10.29 | $ | 10.54 | $ | 10.35 | ||||||||||
|
||||||||||||||||||||
Total
return |
1.90 | % | (7.14 | )% | (0.31 | )% | 4.26 | % | 5.36 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 59,974 | $ | 53,471 | $ | 28,876 | $ | 47,360 | $ | 39,301 | ||||||||||
Ratio
of gross expense to average net assets |
0.67 | % | 0.82 | % | 0.77 | % | 0.73 | % | 0.73 | % | ||||||||||
Ratio
of net expense to average net assets |
0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
3.13 | % | 2.06 | % | 1.10 | % | 1.51 | % | 2.00 | % | ||||||||||
Ratio
of net investment income to average net assets |
3.36 | % | 2.45 | % | 1.44 | % | 1.81 | % | 2.30 | % | ||||||||||
Portfolio
turnover rate |
39 | % | 39 | % | 22 | % | 48 | % | 49 | % |
(1) |
Amount
is less than $0.005. |
(2) |
Based
on average shares outstanding. |
Prospectus |
APPENDIX C |
105 |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 7.47 | $ | 9.12 | $ | 9.47 | $ | 9.42 | $ | 8.97 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.26 | 0.25 | 0.07 | 0.18 | 0.20 | |||||||||||||||
Net
realized and unrealized gains (losses) |
(0.41 | ) | (1.59 | ) | (0.15 | ) | 0.15 | 0.56 | ||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
(0.15 | ) | (1.34 | ) | (0.08 | ) | 0.33 | 0.76 | ||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.24 | ) | (0.31 | ) | (0.27 | ) | (0.28 | ) | (0.31 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 7.08 | $ | 7.47 | $ | 9.12 | $ | 9.47 | $ | 9.42 | ||||||||||
|
||||||||||||||||||||
Total
return |
(2.19 | )% | (15.01 | )% | (0.91 | )% | 3.52 | % | 8.63 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 88,544 | $ | 91,243 | $ | 102,013 | $ | 122,509 | $ | 132,455 | ||||||||||
Ratio
of gross expense to average net assets |
0.63 | % | 0.70 | % | 0.69 | % | 0.71 | % | 0.69 | % | ||||||||||
Ratio
of net expense to average net assets |
0.45 | % | 0.45 | % | 0.47 | % | 0.50 | % | 0.50 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
3.08 | % | 2.03 | % | 1.15 | % | 1.92 | % | 2.51 | % | ||||||||||
Ratio
of net investment income to average net assets |
3.26 | % | 2.28 | % | 1.38 | % | 2.13 | % | 2.70 | % | ||||||||||
Portfolio
turnover rate |
17 | % | 29 | % | 28 | % | 25 | % | 18 | % |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 8.80 | $ | 10.84 | $ | 11.13 | $ | 10.90 | $ | 10.20 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.37 | (1) | 0.26 | (1) | 0.21 | (1) | 0.26 | (1) | 0.33 | (1) | ||||||||||
Net
realized and unrealized gains (losses) |
(0.26 | ) | (2.01 | ) | 0.09 | 0.25 | 0.71 | |||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.11 | (1.75 | ) | 0.30 | 0.51 | 1.04 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.34 | ) | (0.28 | ) | (0.42 | ) | (0.28 | ) | (0.32 | ) | ||||||||||
From
net realized gains |
— | (0.01 | ) | (0.17 | ) | — | — | |||||||||||||
Return
of capital |
(0.01 | ) | (0.00 | )(2) | — | — | (0.02 | ) | ||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.35 | ) | (0.29 | ) | (0.59 | ) | (0.28 | ) | (0.34 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 8.56 | $ | 8.80 | $ | 10.84 | $ | 11.13 | $ | 10.90 | ||||||||||
|
||||||||||||||||||||
Total
return |
1.07 | % | (16.43 | )% | 1.15 | % | 4.76 | % | 10.36 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 230,480 | $ | 294,877 | $ | 409,453 | $ | 589,061 | $ | 695,683 | ||||||||||
Ratio
of gross expense to average net assets |
0.52 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.53 | % | ||||||||||
Ratio
of net expense to average net assets |
0.52 | % | 0.52 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
4.03 | % | 2.63 | % | 1.93 | % | 2.40 | % | 3.10 | % | ||||||||||
Ratio
of net investment income to average net assets |
4.03 | % | 2.63 | % | 1.92 | % | 2.40 | % | 3.10 | % | ||||||||||
Portfolio
turnover rate |
52 | % | 51 | % | 88 | % | 125 | % | 86 | % |
(1) |
Based
on average shares outstanding. |
(2) |
Amount
is less than $0.005. |
106 |
APPENDIX C |
Payden Funds |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.10 | $ | 11.96 | $ | 12.04 | $ | 11.73 | $ | 10.63 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.36 | 0.29 | 0.46 | 0.34 | 0.38 | |||||||||||||||
Net
realized and unrealized gains (losses) |
(0.15 | ) | (2.53 | ) | 0.09 | 0.31 | 1.10 | |||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.21 | (2.24 | ) | 0.55 | 0.65 | 1.48 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.37 | ) | (0.34 | ) | (0.47 | ) | (0.33 | ) | (0.38 | ) | ||||||||||
From
net realized gains |
— | (0.28 | ) | (0.16 | ) | (0.01 | ) | — | ||||||||||||
Return
of capital |
— | (0.00 | )(1) | — | — | — | ||||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.37 | ) | (0.62 | ) | (0.63 | ) | (0.34 | ) | (0.38 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 8.94 | $ | 9.10 | $ | 11.96 | $ | 12.04 | $ | 11.73 | ||||||||||
|
||||||||||||||||||||
Total
return |
2.20 | % | (19.53 | )% | 3.27 | % | 5.65 | % | 14.20 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 139,288 | $ | 222,269 | $ | 460,135 | $ | 479,951 | $ | 463,203 | ||||||||||
Ratio
of gross expense to average net assets |
0.65 | % | 0.66 | % | 0.65 | % | 0.66 | % | 0.66 | % | ||||||||||
Ratio
of net expense to average net assets |
0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
3.92 | % | 2.90 | % | 2.47 | % | 2.82 | % | 3.43 | % | ||||||||||
Ratio
of net investment income to average net assets |
3.91 | % | 2.90 | % | 2.47 | % | 2.83 | % | 3.43 | % | ||||||||||
Portfolio
turnover rate |
41 | % | 31 | % | 49 | % | 58 | % | 49 | % |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.16 | $ | 10.46 | $ | 10.28 | $ | 10.21 | $ | 9.77 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.45 | 0.31 | 0.26 | 0.29 | 0.33 | |||||||||||||||
Net
realized and unrealized gains (losses) |
(0.02 | ) | (1.20 | ) | 0.20 | 0.08 | 0.45 | |||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.43 | (0.89 | ) | 0.46 | 0.37 | 0.78 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.42 | ) | (0.33 | ) | (0.27 | ) | (0.30 | ) | (0.32 | ) | ||||||||||
From
net realized gains |
(0.01 | ) | (0.08 | ) | (0.01 | ) | — | — | ||||||||||||
Return
of capital |
(0.01 | ) | — | — | — | (0.02 | ) | |||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.44 | ) | (0.41 | ) | (0.28 | ) | (0.30 | ) | (0.34 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.15 | $ | 9.16 | $ | 10.46 | $ | 10.28 | $ | 10.21 | ||||||||||
|
||||||||||||||||||||
Total
return |
4.57 | % | (8.72 | )% | 4.37 | % | 3.74 | % | 8.09 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 95,213 | $ | 113,587 | $ | 147,966 | $ | 84,881 | $ | 115,545 | ||||||||||
Ratio
of gross expense to average net assets |
0.86 | % | 0.87 | % | 0.85 | % | 0.88 | % | 0.87 | % | ||||||||||
Ratio
of net expense to average net assets |
0.65 | % | 0.65 | % | 0.66 | % | 0.70 | % | 0.70 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
4.29 | % | 2.94 | % | 2.30 | % | 2.68 | % | 3.14 | % | ||||||||||
Ratio
of net investment income to average net assets |
4.49 | % | 3.16 | % | 2.49 | % | 2.86 | % | 3.30 | % | ||||||||||
Portfolio
turnover rate |
51 | % | 40 | % | 90 | % | 65 | % | 72 | % |
(1) |
Amount
is less than $0.005. |
Prospectus |
APPENDIX C |
107 |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.18 | $ | 10.03 | $ | 9.92 | $ | 10.06 | $ | 9.93 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.53 | 0.30 | 0.20 | 0.25 | 0.32 | |||||||||||||||
Net
realized and unrealized gains (losses) |
0.10 | (0.83 | ) | 0.12 | (0.13 | ) | 0.16 | |||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.63 | (0.53 | ) | 0.32 | 0.12 | 0.48 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.50 | ) | (0.20 | ) | (0.21 | ) | (0.26 | ) | (0.35 | ) | ||||||||||
From
net realized gains |
— | (0.03 | ) | — | — | — | ||||||||||||||
Return
of capital |
(0.00 | )(1) | (0.09 | ) | — | — | — | |||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.50 | ) | (0.32 | ) | (0.21 | ) | (0.26 | ) | (0.35 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.31 | $ | 9.18 | $ | 10.03 | $ | 9.92 | $ | 10.06 | ||||||||||
|
||||||||||||||||||||
Total
return |
6.93 | % | (5.32 | )% | 3.22 | % | 1.23 | % | 4.93 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 139,081 | $ | 123,311 | $ | 151,027 | $ | 132,299 | $ | 124,347 | ||||||||||
Ratio
of gross expense to average net assets |
0.76 | % | 0.74 | % | 0.74 | % | 0.74 | % | 0.75 | % | ||||||||||
Ratio
of net expense to average net assets |
0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
5.73 | % | 3.00 | % | 1.93 | % | 2.44 | % | 3.21 | % | ||||||||||
Ratio
of net investment income to average net assets |
5.79 | % | 3.03 | % | 1.96 | % | 2.48 | % | 3.26 | % | ||||||||||
Portfolio
turnover rate |
132 | % | 104 | % | 95 | % | 67 | % | 82 | % |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.38 | $ | 9.91 | $ | 9.51 | $ | 9.89 | $ | 9.93 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.80 | 0.40 | 0.30 | 0.33 | 0.48 | |||||||||||||||
Net
realized and unrealized gains (losses) |
0.23 | (0.51 | ) | 0.39 | (0.38 | ) | (0.06 | ) | ||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
1.03 | (0.11 | ) | 0.69 | (0.05 | ) | 0.42 | |||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.79 | ) | (0.42 | ) | (0.28 | ) | (0.33 | ) | (0.46 | ) | ||||||||||
Return
of capital |
(0.00 | )(1) | (0.00 | )(1) | (0.01 | ) | — | (0.00 | )(1) | |||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.79 | ) | (0.42 | ) | (0.29 | ) | (0.33 | ) | (0.46 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.62 | $ | 9.38 | $ | 9.91 | $ | 9.51 | $ | 9.89 | ||||||||||
|
||||||||||||||||||||
Total
return |
11.39 | % | (1.10 | )% | 7.29 | % | (0.41 | )% | 4.33 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 27,057 | $ | 24,160 | $ | 20,753 | $ | 19,569 | $ | 21,962 | ||||||||||
Ratio
of gross expense to average net assets |
0.90 | % | 0.86 | % | 0.92 | % | 0.97 | % | 0.89 | % | ||||||||||
Ratio
of net expense to average net assets |
0.70 | % | 0.70 | % | 0.72 | % | 0.75 | % | 0.75 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
8.06 | % | 4.12 | % | 2.80 | % | 3.22 | % | 4.22 | % | ||||||||||
Ratio
of net investment income to average net assets |
8.27 | % | 4.28 | % | 3.00 | % | 3.44 | % | 4.36 | % | ||||||||||
Portfolio
turnover rate |
28 | % | 33 | % | 40 | % | 53 | % | 29 | % |
(1) |
Amount
is less than $0.005. |
108 |
APPENDIX C |
Payden Funds |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 5.82 | $ | 6.87 | $ | 6.45 | $ | 6.53 | $ | 6.25 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.43 | 0.35 | 0.33 | 0.34 | 0.35 | |||||||||||||||
Net
realized and unrealized gains (losses) |
0.00 | (1) | (1.05 | ) | 0.42 | (0.08 | ) | 0.28 | ||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.43 | (0.70 | ) | 0.75 | 0.26 | 0.63 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.41 | ) | (0.35 | ) | (0.33 | ) | (0.34 | ) | (0.35 | ) | ||||||||||
From
net realized gains |
— | — | — | — | — | |||||||||||||||
Return
of capital |
(0.00 | )(1) | (0.00 | )(1) | — | — | — | |||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.41 | ) | (0.35 | ) | (0.33 | ) | (0.34 | ) | (0.35 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 5.84 | $ | 5.82 | $ | 6.87 | $ | 6.45 | $ | 6.53 | ||||||||||
|
||||||||||||||||||||
Total
return |
7.54 | % | (10.45 | )% | 11.75 | % | 4.23 | % | 10.37 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 141,392 | $ | 227,112 | $ | 740,403 | $ | 525,196 | $ | 440,406 | ||||||||||
Ratio
of gross expense to average net assets |
0.59 | % | 0.60 | % | 0.60 | % | 0.62 | % | 0.62 | % | ||||||||||
Ratio
of net expense to average net assets |
0.59 | % | 0.60 | % | 0.60 | % | 0.62 | % | 0.62 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
6.91 | % | 5.22 | % | 4.75 | % | 5.28 | % | 5.41 | % | ||||||||||
Ratio
of net investment income to average net assets |
6.91 | % | 5.22 | % | 4.75 | % | 5.28 | % | 5.41 | % | ||||||||||
Portfolio
turnover rate |
75 | % | 70 | % | 74 | % | 124 | % | 74 | % |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.38 | $ | 10.49 | $ | 10.58 | $ | 10.62 | $ | 9.98 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.29 | 0.16 | 0.34 | 0.22 | 0.26 | |||||||||||||||
Net
realized and unrealized gains (losses) |
0.05 | (1.11 | ) | 0.09 | 0.18 | 0.65 | ||||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.34 | (0.95 | ) | 0.43 | 0.40 | 0.91 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.29 | ) | (0.16 | ) | (0.34 | ) | (0.22 | ) | (0.26 | ) | ||||||||||
From
net realized gains |
— | — | (0.18 | ) | (0.22 | ) | (0.01 | ) | ||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.29 | ) | (0.16 | ) | (0.52 | ) | (0.44 | ) | (0.27 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.43 | $ | 9.38 | $ | 10.49 | $ | 10.58 | $ | 10.62 | ||||||||||
|
||||||||||||||||||||
Total
return |
3.55 | % | (9.12 | )% | 2.38 | % | 3.90 | % | 9.22 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 152,393 | $ | 141,705 | $ | 87,753 | $ | 64,088 | $ | 61,866 | ||||||||||
Ratio
of gross expense to average net assets |
0.63 | % | 0.68 | % | 0.71 | % | 0.81 | % | 0.70 | % | ||||||||||
Ratio
of net expense to average net assets |
0.45 | % | 0.45 | % | 0.47 | % | 0.53 | % | 0.53 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
2.81 | % | 1.39 | % | 1.27 | % | 1.80 | % | 2.29 | % | ||||||||||
Ratio
of net investment income to average net assets |
2.99 | % | 1.62 | % | 1.50 | % | 2.08 | % | 2.46 | % | ||||||||||
Portfolio
turnover rate |
181 | % | 105 | % | 140 | % | 209 | % | 132 | % |
(1) |
Amount
is less than $0.005. |
Prospectus |
APPENDIX C |
109 |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.42 | $ | 10.10 | $ | 10.10 | $ | 10.04 | $ | 9.87 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.43 | 0.18 | 0.13 | 0.19 | 0.28 | |||||||||||||||
Net
realized and unrealized gains (losses) |
(0.06 | )(1) | (0.64 | ) | (0.01 | ) | 0.07 | 0.17 | ||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.37 | (0.46 | ) | 0.12 | 0.26 | 0.45 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.35 | ) | (0.17 | ) | (0.12 | ) | (0.20 | ) | (0.28 | ) | ||||||||||
From
net realized gains |
— | (0.05 | ) | — | — | — | ||||||||||||||
Return
of capital |
(0.00 | )(2) | — | — | (0.00 | )(2) | (0.00 | )(2) | ||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.35 | ) | (0.22 | ) | (0.12 | ) | (0.20 | ) | (0.28 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.44 | $ | 9.42 | $ | 10.10 | $ | 10.10 | $ | 10.04 | ||||||||||
|
||||||||||||||||||||
Total
return |
3.99 | % | (4.55 | )% | 1.16 | % | 2.63 | % | 4.61 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 45,150 | $ | 74,440 | $ | 86,225 | $ | 96,311 | $ | 91,028 | ||||||||||
Ratio
of gross expense to average net assets |
0.79 | % | 0.82 | % | 0.76 | % | 0.72 | % | 0.69 | % | ||||||||||
Ratio
of net expense to average net assets |
0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.53 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
3.29 | % | 1.44 | % | 0.91 | % | 1.76 | % | 2.63 | % | ||||||||||
Ratio
of net investment income to average net assets |
3.55 | % | 1.74 | % | 1.13 | % | 1.95 | % | 2.78 | % | ||||||||||
Portfolio
turnover rate |
94 | % | 128 | % | 169 | % | 197 | % | 107 | % |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 7.65 | $ | 9.17 | $ | 9.33 | $ | 9.24 | $ | 8.89 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
(0.86 | ) | (0.13 | ) | 0.19 | 0.23 | 0.19 | |||||||||||||
Net
realized and unrealized gains (losses) |
0.99 | (1.08 | ) | (0.04 | ) | 0.12 | 0.63 | |||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.13 | (1.21 | ) | 0.15 | 0.35 | 0.82 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.49 | ) | (0.25 | ) | (0.23 | ) | (0.26 | ) | (0.47 | ) | ||||||||||
From
net realized gains |
— | (0.06 | ) | (0.08 | ) | — | — | |||||||||||||
Return
of capital |
(0.16 | ) | — | — | — | — | ||||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.65 | ) | (0.31 | ) | (0.31 | ) | (0.26 | ) | (0.47 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 7.13 | $ | 7.65 | $ | 9.17 | $ | 9.33 | $ | 9.24 | ||||||||||
|
||||||||||||||||||||
Total
return |
1.68 | % | (13.49 | )% | 0.59 | % | 3.87 | % | 9.56 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 43,519 | $ | 92,024 | $ | 178,480 | $ | 180,074 | $ | 138,387 | ||||||||||
Ratio
of gross expense to average net assets |
0.68 | % | 0.70 | % | 0.71 | % | 0.78 | % | 0.78 | % | ||||||||||
Ratio
of net expense to average net assets |
0.68 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
2.92 | % | 1.60 | % | 1.19 | % | 1.43 | % | 1.81 | % | ||||||||||
Ratio
of net investment income to average net assets |
2.83 | % | 1.54 | % | 1.20 | % | 1.51 | % | 1.88 | % | ||||||||||
Portfolio
turnover rate |
42 | % | 55 | % | 60 | % | 88 | % | 67 | % |
(1) |
The
amount presented is inconsistent with the fund’s aggregate gains and
losses because of the timing of sales and redemptions of fund shares in
relation to fluctuating market values for the investment
portfolio. |
(2) |
Amount
is less than $0.005. |
110 |
APPENDIX C |
Payden Funds |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 9.17 | $ | 13.12 | $ | 12.99 | $ | 13.58 | $ | 12.68 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.63 | (1) | 0.64 | (1) | 0.70 | (1) | 0.68 | (1) | 0.75 | |||||||||||
Net
realized and unrealized gains (losses) |
0.42 | (3.94 | ) | 0.14 | (0.62 | ) | 0.91 | |||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
1.05 | (3.30 | ) | 0.84 | 0.06 | 1.66 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.64 | ) | (0.65 | ) | (0.71 | ) | (0.65 | ) | (0.76 | ) | ||||||||||
Return
of capital |
(0.14 | ) | — | — | — | — | ||||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.78 | ) | (0.65 | ) | (0.71 | ) | (0.65 | ) | (0.76 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 9.44 | $ | 9.17 | $ | 13.12 | $ | 12.99 | $ | 13.58 | ||||||||||
|
||||||||||||||||||||
Total
return |
11.16 | % | (25.82 | )% | 6.48 | % | 0.58 | % | 13.45 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 268,578 | $ | 321,800 | $ | 279,531 | $ | 282,521 | $ | 409,458 | ||||||||||
Ratio
of gross expense to average net assets |
0.72 | % | 0.73 | % | 0.71 | % | 0.73 | % | 0.72 | % | ||||||||||
Ratio
of net expense to average net assets |
0.72 | % | 0.73 | % | 0.71 | % | 0.73 | % | 0.72 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
6.43 | % | 5.88 | % | 5.22 | % | 5.16 | % | 5.65 | % | ||||||||||
Ratio
of net investment income to average net assets |
6.43 | % | 5.88 | % | 5.22 | % | 5.16 | % | 5.65 | % | ||||||||||
Portfolio
turnover rate |
73 | % | 52 | % | 63 | % | 79 | % | 73 | % |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 4.34 | $ | 5.72 | $ | 5.84 | $ | 6.50 | $ | 5.97 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.30 | (1) | 0.28 | (1) | 0.28 | (1) | 0.58 | 0.37 | ||||||||||||
Net
realized and unrealized gains (losses) |
0.25 | (1.38 | ) | (0.10 | ) | (0.93 | ) | 0.52 | ||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.55 | (1.10 | ) | 0.18 | (0.35 | ) | 0.89 | |||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.11 | ) | (0.03 | ) | — | — | (0.15 | ) | ||||||||||||
Return
of capital |
(0.16 | ) | (0.25 | ) | (0.30 | ) | (0.31 | ) | (0.21 | ) | ||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.27 | ) | (0.28 | ) | (0.30 | ) | (0.31 | ) | (0.36 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 4.62 | $ | 4.34 | $ | 5.72 | $ | 5.84 | $ | 6.50 | ||||||||||
|
||||||||||||||||||||
Total
return |
12.11 | % | (19.76 | )% | 2.92 | % | (5.41 | )% | 15.34 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 6,646 | $ | 4,200 | $ | 43,551 | $ | 128,212 | $ | 216,368 | ||||||||||
Ratio
of gross expense to average net assets |
1.30 | % | 1.12 | % | 1.05 | % | 0.93 | % | 0.91 | % | ||||||||||
Ratio
of net expense to average net assets |
0.99 | % | 0.99 | % | 0.99 | % | 0.93 | % | 0.91 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
5.90 | % | 5.19 | % | 4.55 | % | 5.08 | % | 5.71 | % | ||||||||||
Ratio
of net investment income to average net assets |
6.21 | % | 5.32 | % | 4.61 | % | 5.08 | % | 5.71 | % | ||||||||||
Portfolio
turnover rate |
72 | % | 65 | % | 39 | % | 54 | % | 62 | % |
(1) |
Based
on average shares outstanding. |
Prospectus |
APPENDIX C |
111 |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 7.90 | $ | 10.18 | $ | 9.99 | $ | 9.99 | $ | 9.59 | ||||||||||
|
||||||||||||||||||||
Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.47 | (1) | 0.41 | (1) | 0.43 | (1) | 0.42 | (1) | 0.48 | (1) | ||||||||||
Net
realized and unrealized gains (losses) |
0.26 | (2.18 | ) | 0.19 | 0.00 | (2) | 0.41 | |||||||||||||
|
||||||||||||||||||||
Total
from investment activities |
0.73 | (1.77 | ) | 0.62 | 0.42 | 0.89 | ||||||||||||||
|
||||||||||||||||||||
Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.44 | ) | (0.41 | ) | (0.43 | ) | (0.40 | ) | (0.49 | ) | ||||||||||
From
net realized gains |
— | (0.10 | ) | — | — | — | ||||||||||||||
Return
of capital |
(0.04 | ) | — | — | (0.02 | ) | — | |||||||||||||
|
||||||||||||||||||||
Total
distributions to shareholders |
(0.48 | ) | (0.51 | ) | (0.43 | ) | (0.42 | ) | (0.49 | ) | ||||||||||
|
||||||||||||||||||||
Net
asset value – end of period |
$ | 8.15 | $ | 7.90 | $ | 10.18 | $ | 9.99 | $ | 9.99 | ||||||||||
|
||||||||||||||||||||
Total
return |
9.17 | % | (17.91 | )% | 6.08 | % | 4.53 | % | 9.46 | % | ||||||||||
|
||||||||||||||||||||
Ratios/supplemental
data: |
||||||||||||||||||||
Net
assets, end of period (000s) |
$ | 24,856 | $ | 18,845 | $ | 5,208 | $ | 3,845 | $ | 3,681 | ||||||||||
Ratio
of gross expense to average net assets |
1.26 | % | 1.32 | % | 1.28 | % | 1.38 | % | 1.32 | % | ||||||||||
Ratio
of net expense to average net assets |
0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
5.29 | % | 4.39 | % | 3.80 | % | 3.89 | % | 4.55 | % | ||||||||||
Ratio
of net investment income to average net assets |
5.60 | % | 4.77 | % | 4.13 | % | 4.31 | % | 4.92 | % | ||||||||||
Portfolio
turnover rate |
104 | % | 95 | % | 84 | % | 105 | % | 94 | % |
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net
asset value – beginning of period |
$ | 16.92 | $ | 21.25 | $ | 15.97 | $ | 18.15 | $ | 16.20 | ||||||||||
|
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Income
(loss) from investment activities: |
||||||||||||||||||||
Net
investment income |
0.28 | 0.33 | 0.38 | 0.36 | 0.40 | |||||||||||||||
Net
realized and unrealized gains (losses) |
(1.36 | ) | (0.93 | ) | 5.24 | (1.66 | ) | 2.03 | ||||||||||||
|
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Total
from investment activities |
(1.08 | ) | (0.60 | ) | 5.62 | (1.30 | ) | 2.43 | ||||||||||||
|
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Distributions
to shareholders: |
||||||||||||||||||||
From
net investment income |
(0.28 | ) | (0.52 | ) | (0.34 | ) | (0.33 | ) | (0.37 | ) | ||||||||||
From
net realized gains |
(0.71 | ) | (3.21 | ) | — | (0.52 | ) | (0.11 | ) | |||||||||||
Return
of capital |
— | — | — | (0.03 | ) | — | ||||||||||||||
|
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Total
distributions to shareholders |
(0.99 | ) | (3.73 | ) | (0.34 | ) | (0.88 | ) | (0.48 | ) | ||||||||||
|
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Net
asset value – end of period |
$ | 14.85 | $ | 16.92 | $ | 21.25 | $ | 15.97 | $ | 18.15 | ||||||||||
|
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Total
return |
(6.75 | )% | (3.64 | )% | 35.41 | % | (7.49 | )% | 15.39 | % | ||||||||||
|
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Ratios/supplemental
data: |
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Net
assets, end of period (000s) |
$ | 318,111 | $ | 472,728 | $ | 536,613 | $ | 483,678 | $ | 570,662 | ||||||||||
Ratio
of gross expense to average net assets |
0.73 | % | 0.74 | % | 0.72 | % | 0.74 | % | 0.74 | % | ||||||||||
Ratio
of net expense to average net assets |
0.73 | % | 0.74 | % | 0.72 | % | 0.74 | % | 0.74 | % | ||||||||||
Ratio
of investment income less gross expenses to average net assets |
1.81 | % | 1.97 | % | 1.87 | % | 2.17 | % | 2.36 | % | ||||||||||
Ratio
of net investment income to average net assets |
1.81 | % | 1.97 | % | 1.87 | % | 2.17 | % | 2.36 | % | ||||||||||
Portfolio
turnover rate |
111 | % | 96 | % | 95 | % | 63 | % | 49 | % |
(1) |
Based
on average shares outstanding. |
(2) |
Amount
is less than $0.005. |