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PAYDEN LIMITED MATURITY FUND
MARCH 31, 2015
STOCK | GLOBAL BOND | US BOND | TAX-EXEMPT BOND
FUND HIGHLIGHTS
SECTOR ALLOCATION
» Invests primarily in high-quality, short-term securities
» Low annual expense ratio, no loads or 12b-1 fees
» Seeks
Seeks to
to earn
earn aa higher
higher yield
yield than
than aa traditional
traditional money
money market
market fund
fund A
Mortgage-Backed
14%
Other
2%
Money
Markets
6%
» The value of an investment will generally fall when interest rates rise
INVESTMENT STRATEGY
Corporates
44%
Government/
The Payden Limited Maturity Fund seeks to outperform current money market rates by utilizing short-term Gov't Related
securities that are primarily investment-grade. The fund is primarily comprised of US Government securities,
15%
investment-grade corporate bonds, mortgage- and asset-backed securities and money markets. The maximum
average portfolio maturity is two and one-half years.
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
PYLMX
0.38%
0.68%
0.94%
1.61%
3.09%
Asset-Backed
19%
CREDIT
CREDIT ALLOCATION
ALLOCATION C
LOWER OF MOODY'S AND S&P
BB B
5% 2%
MARKET
» US economic data disappointed in March as weaker overseas demand, labor disputes along the West Coast
ports and bad weather in the East Coast affected activity. The Federal Reserve has signaled a possible rate
hike as early as June as the unemployment rate decreased to 5.5% in February, but reiterated that any initial
hike will be dependent on improving data. The front-end of the US Treasury curve flattened as rates rallied
with two- and three-year maturity yields ending the month at 0.56% and 0.88%, respectively.
» Corporate issuance in the primary markets topped $137 billion in March as US investment-grade corporate
bond spreads widened by 5 basis points. The BofA Merrill Lynch 1-3 Year US Corporate Index returned
0.20% and underperformed similar maturity Treasuries by 0.05%.
» Participants used up $378 billion of the Federal Reserve’s reverse repo program at the end of March, split
between $202 billion in the overnight facility and $176 billion in the term facility. The use of the facility seems
to have stabilized US Treasury bill levels during the quarter-end rush.
AAA
19%
BBB
28%
AA
31%
A
15%
DURATION ALLOCATION
1-3 yrs
21%
OUTLOOK
» The Federal Reserve will continue to test its fixed-rate full allotment reverse repo program with money market
fund participants as an additional tool to manage front-end rates.
» An increase in corporate leveraging activities will provide opportunities to benefit from total return potential as
demand for corporate securities remains strong.
» The fund will continue its overweight to the corporate sector, participating in the primary markets to benefit
from new issue concessions. It will also utilize high-quality asset-backed securities for additional yield and
diversification benefits.
0-1 yr
79%
Total Operating Fund Expenses
Expenses Cap
0.57%D
0.29%
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 LIMITED MATURITY FUND
ROLE IN PORTFOLIO
SHARE CLASS
INVESTOR
Ultra Short-Term Bond – Appropriate for
investors who desire yields greater than
money market funds while maintaining a high
degree of liquidity, but can tolerate
fluctuations in the net asset value (NAV).
Ticker
Ticker
Inception
Inception Date
Date
PYLMX
PYLMX
Investment
Investment Minimum
Minimum E
IRA
IRA Minimum
Minimum E
$5,000
$5,000
INVESTMENT MANAGER
Total Net
Net Assets
Assets
Total
Dividends Paid
Paid
Dividends
$361.5 million
million
$361.5
Dividends
Dividends (last
(last 12
12 months)
months)
$0.069
$0.069
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
05/02/94
05/02/94
Monthly
Monthly
PORTFOLIO ANALYTICS
Effective
Effective Duration
Duration F
Average
Average Maturity
Maturity
0.6
0.6 years
years
30-Day SEC
SEC Yield
Yield (03/31/15)
(03/31/15)
30-Day
30-Day SEC
SEC Yield
Yield (unsubsidized)
(unsubsidized)
30-Day
0.73%
0.73%
0.3 years
years
0.3
0.48%
0.48%
THREE
THREE MONTH
MONTH DURATION
DURATION BOND
BOND YIELDS
YIELDS †
Limited Maturity Universe
1.0
PORTFOLIO TEAM
0.9
Mary Beth Syal, CFA
Managing Principal
1991 - Joined Payden & Rygel
0.8
Money Market Universe
0.7
Yield (%)
Eric M. Hovey, CFA
Senior Vice President
2006 - Joined Payden & Rygel
$2,000
$2,000
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Treasury
Bills
Treasury
FRN*
Agency
Discount
Notes
Financial
Commercial
Paper
Industrial
Commercial
Paper
“A” Corporate
Fixed
“A2/P2”
Commercial
Paper
“BBB”
Corporate Fixed
“A” Corporate
Floating
Source: Bloomberg, Payden & Rygel
*1 day duration † Yields are subject to change and are not guaranteed
FOOTNOTES
NAV is not held at $1.00. B Returns less than one year are not annualized. C Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest) and are
NAV is not held at $1.00. B Returns less than one year are not annualized. C Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest) and are
subject to change. D Payden & Rygel has contractually agreed to waive its investment advisory fee or reimburse fund expenses to the extent that the Total Annual Fund Operating
subject to change. D 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 Acquired Fund Fees and Expenses, interest and taxes) exceed 0.29%. This agreement has a one-year term
Expenses After Fee Waiver or Expense Reimbursement (excluding Acquired Fund Fees and Expenses, interest and taxes) exceed 0.29%. 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
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 certain categories of investors at their discretion. F Effective duration is a measure of the fund’s price sensitivity to
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.
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 high yield 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