PAYDEN EMERGING MARKETS BOND FUND
MARCH 31, 2015
STOCK | GLOBAL BOND | US BOND | TAX-EXEMPT BOND
FUND HIGHLIGHTS
SECTOR ALLOCATION
» Primarily sovereign focus - opportunistic exposure in corporates
Money
Markets
3%
» 15 years of experience managing emerging-market portfolios
» Local markets expertise - opportunistic exposure to local markets
Corporates
20%
» 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 Bond Fund invests in a diversified portfolio of emerging-market sovereign and
corporate bonds. The fund invests in countries that are identified through extensive analysis of their
macroeconomic variables, sovereign credit ratios, political stability, and the quality of the country’s business
environment. 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
Government/
Gov't Related
77%
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
PYEMX (Investor)
1.85%
4.04%
6.11%
7.70%
10.07%
03/31/15
PYEWX (Adviser)
1.86%
3.87%
5.85%
N/A
6.75%
Unrated
CC 1% AAA AA
CCC
1%
5% 1% A
7%
2%
B
21%
BBB
36%
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's) 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.
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.
BB
26%
TOP-10 COUNTRY ALLOCATION
Country
Mexico
Indonesia
Brazil
Turkey
Kazakhstan
Colombia
Panama
Dominican Rep
Peru
Philippines
Percentage
7.0%
5.8%
4.8%
4.3%
3.7%
3.5%
3.5%
3.4%
3.2%
3.2%
Total Operating Fund Expenses
Investor
0.78%
1.03%C
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 EMERGING MARKETS BOND FUND
ROLE IN PORTFOLIO
SHARE CLASS
INVESTOR
ADVISER
Appropriate for investors with long investment
time horizons who seek diversification via
sovereign and corporate bonds issued by
emerging-market countries.
Ticker
Ticker
Inception
Inception Date
Date
PYEMX
PYEMX
PYEWX
PYEWX
12/17/98
12/17/98
11/02/09
11/02/09
Investment
Investment Minimum
Minimum D
IRA
IRA Minimum
Minimum D
$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
$417.1 million
million
$417.1
$25.7 million
million
$25.7
Monthly
Monthly
Monthly
Monthly
Dividends
Dividends (last
(last 12
12 months)
months)
$0.705
$0.705
$0.673
$0.673
Effective
Effective Duration
Duration E
Average
Average Maturity
Maturity
7.2
7.2 years
years
7.2
7.2 years
years
11.3 years
years
11.3
11.3 years
years
11.3
30-Day SEC
SEC Yield
Yield (03/31/15)
(03/31/15)
30-Day
5.39%
5.39%
5.14%
5.14%
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.
PORTFOLIO ANALYTICS
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
Arthur Hovsepian, CFA
Principal
2004 - Joined Payden & Rygel
Vladimir Milev, CFA
Senior Vice President
2003 - Joined Payden & Rygel
EMERGING MARKETS BOND INDEX - GLOBAL DIVERSIFIED
CREDIT QUALITY (% OF TOTAL INDEX)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
12/93
Non-Investment Grade
EMBI Global Diversified
Investment Grade
EMBI Global Diversified
8/96
4/99
12/01
8/04
3/07
11/09
7/12
3/15
Source: JP Morgan; since Index inception
The JP Morgan Emerging Market Bond Index Global Diversified consists of debt securities issued by
emerging market sovereigns and 100% sovereign-owned enterprises. The investment grade component,
which includes securities with credit ratings between AAA and BBB-, is considered higher quality than the
non-investment grade component, which includes securities rated below BBB-.
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 Total
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 Total
Annual Fund Operating Expenses include all direct operating expenses of the fund and a Rule 12b-1 Distribution Fee of 0.25%. D The minimum initial investment may be modified
Annual Fund Operating Expenses include all direct operating expenses of the fund and a Rule 12b-1 Distribution Fee of 0.25%. D 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
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. E Effective duration is a measure of the fund’s price sensitivity to changes in interest rates.
categories of investors at their discretion. E 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 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