Fund Fact Sheet - Payden and Rygel

PAYDEN EMERGING MARKETS CORPORATE BOND FUND
MARCH 31, 2015
STOCK | GLOBAL BOND | US BOND | TAX-EXEMPT BOND
FUND HIGHLIGHTS
SECTOR ALLOCATION
» Emerging Market corporate focus – opportunistic exposure to sovereigns and quasi-sovereigns
Government/
Gov't Related
10%
» 15 years of experience managing emerging-market portfolios
» Corporate market expertise – dedicated credit analysts
» Pure bond strategy – limited use of credit default swaps or distressed debt
» The value of an investment will generally fall when interest rates rise
INVESTMENT STRATEGY
The Payden Emerging Markets Corporate Bond Fund invests in a diversified portfolio of emerging-market
corporate bonds. The fund invests in companies that are identified through extensive global industry and
company analysis, consistent with our sovereign views. The fund maintains geographic diversification across
Latin America, Europe and Asia. Most of our investments are US dollar-denominated, but we also see attractive
opportunities in select local markets.
TOTAL RETURNS
RETURNS A
TOTAL
Corporates
90%
CREDIT
CREDIT ALLOCATION
ALLOCATION B
LOWER OF MOODY'S AND S&P
As Of Date
Ticker
Year To Date
1 Year
5 Year
10 Year
Since
Since Inception
Inception
03/31/15
PYCEX (Investor)
1.72%
3.97%
N/A
N/A
5.48%
03/31/15
PYCAX (Adviser)
1.65%
4.07%
N/A
N/A
5.42%
B
17%
CCC
2%
Unrated AA
1% 2%
A
15%
MARKET
» Emerging-markets (EM) fixed-income performance was weak in the first half of March, but improved following
the US Federal Reserve’s (Fed's) monetary policy announcement, which was perceived as relatively dovish
by markets. Sentiment around the euro area remained optimistic due to improving economic data and the
European Central Bank’s (ECB) quantitative easing program. Local currency EM debt underperformed US
dollar-pay bonds, particularly as currencies depreciated against the US dollar.
» The political toll of the Petrobras corruption scandal continued to mount. In response to the scandal, large
scale protests were staged across Brazil on March 15th, with many protestors calling for the impeachment of
President Rousseff. As the political dynamics played out, S&P affirmed the country’s BBB- credit rating with a
stable outlook. The stable outlook is an important positive for the government's new economic team as they
attempt to implement a fiscal adjustment program to retain Brazil's investment-grade status.
BBB
34%
BB
29%
DURATION ALLOCATION
10+ yrs 0-1 yr
3%
9%
7-10 yrs
17%
1-3 yrs
17%
OUTLOOK
» Monetary policy in the developed world is diverging; the US Fed is cautiously approaching a hiking cycle,
while the ECB has embarked on quantitative easing. However, the abundance of global liquidity and the
prevailing low inflation environment have kept developed market interest rates subdued. While EM central
banks have flexibility, investors will scrutinize countries’ monetary policy and external vulnerabilities as the
Fed normalizes rates. Also, disparate growth and structural reform prospects among EMs support the theme
of country differentiation.
5-7 yrs
15%
3-5 yrs
39%
Investor Share Class
Total Operating Fund Expenses
Expenses Cap
1.42%
0.95%
C
Adviser Share Class
Total Operating Fund Expenses
Expenses Cap
1.63%D
0.95%
PLEASE SEE FOOTNOTE ON REVERSE
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value
will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. For the most recent month-end
performance, which may be higher or lower than that quoted, visit our website at payden.com or call 800 572-9336.
333 South Grand Avenue • Los Angeles, California 90071 • 800 572-9336 • payden.com
PAYDEN EMERGING MARKETS CORPORATE BOND FUND
ROLE IN PORTFOLIO
SHARE CLASS
INVESTOR
ADVISER
Appropriate for investors with long investment
time horizons who seek diversification via
corporate bonds issued by emerging-market
countries.
Ticker
Ticker
Inception
Inception Date
Date
PYCEX
PYCEX
PYCAX
PYCAX
11/11/13
11/11/13
11/11/13
11/11/13
Investment
Investment Minimum
Minimum E
IRA
IRA Minimum
Minimum E
$100,000
$100,000
$5,000
$5,000
$100,000
$100,000
$2,000
$2,000
Total Net
Net Assets
Assets
Total
Dividends Paid
Paid
Dividends
$1.4 million
million
$1.4
$17,000
$17,000
Monthly
Monthly
Monthly
Monthly
Dividends
Dividends (last
(last 12
12 months)
months)
$0.453
$0.453
$0.414
$0.414
Effective
Effective Duration
Duration F
Average
Average Maturity
Maturity
5.3
5.3 years
years
5.3
5.3 years
years
7.0 years
years
7.0
7.0 years
years
7.0
30-Day SEC
SEC Yield
Yield (03/31/15)
(03/31/15)
30-Day
30-Day SEC
SEC Yield
Yield (unsubsidized)
(unsubsidized)
30-Day
4.48%
4.48%
4.25%
4.25%
4.08%
4.08%
3.85%
3.85%
INVESTMENT MANAGER
Payden & Rygel has served the needs of
institutional and individual investors for over a
quarter century. We offer a full array of
investment strategies and products, including
equity, fixed-income and balanced portfolios
as well as open-end mutual funds and
offshore funds, to a varied client base around
the world. While we have grown and
expanded considerably since our inception,
we remain committed to our mission of
providing customized investment
management services that focus on each
client’s specific needs and objectives.
Headquarters: Los Angeles
Assets Under Management: $90 billion
(as of 03/31/15)
Founded: 1983
PORTFOLIO TEAM
Kristin J. Ceva, Ph.D., CFA
Managing Principal
1998 - Joined Payden & Rygel
Natalie N. Trevithick, CFA
Senior Vice President
2012 - Joined Payden & Rygel
Vladimir Milev, CFA
Senior Vice President
2003 - Joined Payden & Rygel
PORTFOLIO ANALYTICS
CORPORATE EMERGING MARKET BOND INDEX – BROAD DIVERSIFIED
Pulp & Paper
Diversified 1%
4%
Real Estate
4%
Industrial
5%
Infrastructure
1%
Transport
1%
Financial
33%
Metals & Mining
6%
Consumer
7%
Utilities
10%
Oil & Gas
13%
TMT*
15%
Source: JP Morgan
* TMT includes Technology, Media & Telecommunications
FOOTNOTES
Returns less than one year are not annualized. B Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest) and are subject to change. C Payden &
Returns less than one year are not annualized. B Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest) and are subject to change. C Payden &
Rygel 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
Rygel 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 and taxes) exceed 0.95%. This agreement has a one-year term ending February 28, 2016. D Total
Expense Reimbursement (excluding Acquired Fund Fees and Expenses, interest and taxes) exceed 0.95%. This agreement has a one-year term ending February 28, 2016. D Total
Expense Ratio includes all direct operating expenses of the fund and a Rule 12b-1 Distribution Fee of 0.25%. Payden & Rygel has contractually agreed to waive its investment
Expense Ratio includes all direct operating expenses of the fund and a Rule 12b-1 Distribution Fee of 0.25%. Payden & Rygel 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 12b-1 Distribution
advisory fee or reimburse fund expenses to the extent that the Total Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement (excluding 12b-1 Distribution
Fees, Acquired Fund Fees and Expenses, interest and taxes) exceed 0.95%. This agreement has a one-year term ending February 28, 2016. E The minimum initial investment may
Fees, Acquired Fund Fees and Expenses, interest and taxes) exceed 0.95%. This agreement has a one-year term ending February 28, 2016. E The minimum initial investment may
be modified for certain financial intermediaries that submit trades on behalf of underlying investors. Paydenfund’s distributor may lower or waive the minimum initial investment for
be modified for certain financial intermediaries that submit trades on behalf of underlying investors. Paydenfund’s distributor may lower or waive the minimum initial investment for
certain categories of investors at their discretion. F Effective duration is a measure of the fund’s price sensitivity to changes in interest rates.
certain categories of investors at their discretion. F Effective duration is a measure of the fund’s price sensitivity to changes in interest rates.
A
A
For more information and to obtain a prospectus or summary prospectus, visit payden.com or call 800 572-9336. Before investing, investors should carefully read
and consider investment objectives, risks, charges, expenses and other important information about the fund, which is contained in these documents. Investment
in foreign securities entails certain risks from investing in domestic securities, including changes in exchange rates, political changes, differences in reporting
standards, and, for emerging market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.
333 South Grand Avenue • Los Angeles, California 90071 • 800 572-9336 • payden.com