Fund Fact Sheet - Payden & Rygel

PAYDEN HIGH INCOME FUND
MARCH 31, 2015
STOCK | GLOBAL BOND | US BOND | TAX-EXEMPT BOND
FUND HIGHLIGHTS
SECTOR ALLOCATION
» Primary
Primary focus
focus on
on the
the upper
upper tier
tier (BB
(BB or
or B
B rated)
rated) of
of the
the global
global high-yield
high-yield bond
bond market
market A
Utilities
Loans Other
2%
1% 4%
Communications
Financials
21%
11%
» Potential for both income and capital appreciation
» Pure bond strategy – no credit default swaps, no distressed debt, no leverage
» The value of an investment will generally fall when interest rates rise
Energy
13%
INVESTMENT STRATEGY
The Payden High Income Fund invests in corporate high-yield bonds, which provide a premium to US Treasury
bonds. The fund generally invests in the higher-quality segment of the market and looks for companies with
good growth prospects, superior and defensible products and strong management teams.
TOTAL RETURNS
RETURNS B
TOTAL
As Of Date
Ticker
Year To Date
1 Year
5 Year
10 Year
Since
Since Inception
Inception
03/31/15
PYHRX (Investor)
2.36%
2.43%
7.36%
6.05%
5.68%
03/31/15
PYHWX (Adviser)
2.31%
2.17%
7.06%
N/A
7.60%
Industrials
18%
Consumer
Non-Cyclical
15%
Cash
2%
Consumer
Cyclical
13%
CREDIT
CREDIT ALLOCATION
ALLOCATION A
LOWER OF MOODY'S AND S&P
CCC AAA* BBB*
2% 2%
9%
MARKET
» The high-yield market got off to a strong start in the first quarter of 2015, with the Merrill Lynch BB/B Index up
2.42% for the quarter and 20 basis points tighter. The bulk of the rally occurred in February, when the market
returned 2.26% on the back of global macroeconomic tailwinds and stabilization in the energy sector. Energy
comprises 15% of the high-yield market. The sector was up 6% in February. Even though it was softer in
January and March it is up 2.4% for the year, which is in line with the high-yield market.
» Flows into the high-yield market were generally positive in the quarter. The European Central Bank’s
announcement of a quantitative easing program in late January was a catalyst for investors, both foreign and
domestic, to seek yield. Furthermore, stabilizing oil prices removed a lot of the fear that the market
experienced in the fourth quarter of last year and brought investors back into high yield. Year-to-date mutual
funds and ETFs have enjoyed $10 billion in inflows.
» The positive inflows have been met with a strong new issuance calendar. $106 billion in high-yield deals
printed in the first quarter (versus $104 billion in Q1 2014), and the majority were well received and traded
up. Despite the volatility in the energy sector, energy companies were still able to place over $11 billion worth
of deals in the quarter which is a positive sign that capital markets are still receptive to them.
OUTLOOK
»
BB
38%
B
49%
*Not High-Yield
TOP-10 HOLDINGS
Sprint
Ally
Community Health Systems
Chrysler Group
Genon Energy
HCA
Levi Strauss
Mobile Mini
Arcelormittal
UPC Holding
1.4%
1.3%
1.0%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
Fourth quarter earnings, which were mostly reported in February, generally exceeded expectations and the
average high-yield company remains healthy from both a leverage and liquidity standpoint.
» The market will surely keep an eye on the Federal Reserve and the price of oil, but we remain positive on the
outlook for the high-yield market heading into the second quarter.
Total Operating Fund Expenses
Investor
0.68%C
0.93%D
Adviser
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 HIGH INCOME FUND
ROLE IN PORTFOLIO
SHARE CLASS
INVESTOR
ADVISER
High-Yield Bond – Appropriate for investors
who seek higher yields and diversification in
the growing $2 trillion high-yield bond market.
Ticker
Ticker
PYHRX
PYHRX
PYHWX
PYHWX
Inception
Inception Date
Date
Investment
Minimum E
Investment Minimum
12/30/97
12/30/97
11/02/09
11/02/09
$100,000
$100,000
$5,000
$5,000
IRA
IRA Minimum
Minimum E
Total Net
Net Assets
Assets
Total
$100,000
$100,000
$2,000
$2,000
$654.6 million
million
$654.6
$24.6 million
million
$24.6
Dividends
Dividends Paid
Paid
Dividends
(last
12 months)
months)
Dividends (last 12
Monthly
Monthly
Monthly
Monthly
$0.390
$0.390
$0.372
$0.372
Effective Duration
Duration F
Effective
4.4 years
years
4.4
4.4 years
years
4.4
Average Maturity
Maturity
Average
30-Day SEC
SEC Yield
Yield (03/31/15)
(03/31/15)
30-Day
6.4 years
years
6.4
6.4 years
years
6.4
4.52%
4.52%
4.27%
4.27%
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 ANALYTICS
MERRILL LYNCH BB/B HIGH YIELD INDEX
6.5
Sabur Moini, MBA
Principal
2000 - Joined Payden & Rygel
6.0
Jordan H. Lopez, CFA
Vice President
2004 - Joined Payden & Rygel
Yield* to Worst (%)
PORTFOLIO TEAM
5.5
5.0
4.5
3/15
1/15
12/14
10/14
8/14
6/14
4/14
2/14
12/13
4.0
Source: Merrill Lynch
* Yields are subject to change and are not guaranteed
FOOTNOTES
Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest) and are subject to change. B Returns less than one year are not annualized. C Total
Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest) and are subject to change. B Returns less than one year are not annualized. C Total
Annual Fund Operating Expenses include all direct operating expenses of the fund, as well as 0.02% acquired fund fees and expenses incurred indirectly by the fund through its
Annual Fund Operating Expenses include all direct operating expenses of the fund, as well as 0.02% acquired fund fees and expenses incurred indirectly by the fund through its
investment in other mutual funds. D Total Annual Fund Operating Expenses include all direct operating expenses of the fund, a Rule 12b-1 Distribution Fee of 0.25%, as well as
investment in other mutual funds. D Total Annual Fund Operating Expenses include all direct operating expenses of the fund, a Rule 12b-1 Distribution Fee of 0.25%, as well as
0.02% Acquired Fund Fees and Expenses incurred indirectly by the fund through its investment in other mutual funds. E The minimum initial investment may be modified for certain
0.02% Acquired Fund Fees and Expenses incurred indirectly by the fund through its investment in other mutual funds. 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 certain categories of
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.
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. Investing in
high-yield securities entails certain risks from investing in investment-grade securities, including higher volatility, greater credit risk, and the issuers’ more
speculative nature. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.
333 South Grand Avenue • Los Angeles, California 90071 • 800 572-9336 • payden.com