Payden High Income Fund SI Class (PYCHX)

Overview

The fund operates as an investment entity, focusing on generating returns through the acquisition of a diverse range of debt instruments and income-generating securities. A significant portion of its investment, at least 80%, is allocated to corporate debt securities that are rated below investment grade. These are securities that have not achieved the top four ratings by accredited rating agencies or are deemed by the fund’s adviser, Payden & Rygel ("Payden"), to possess comparable quality standards. This strategic focus on below-investment-grade debt instruments places the fund in a specific market niche, aiming to capitalize on the higher return potential associated with these riskier assets.

Products and Services

The fund offers a specialized investment product characterized by a focus on high-yield, below-investment-grade debt. Below are the key products and services it provides:

• High-Yield Corporate Debt Investment: The primary product of the fund involves investing in corporate debt securities that are rated below investment grade. These securities, often referred to as "junk bonds," offer higher interest rates compared to investment-grade bonds due to the increased risk of default. By investing at least 80% of its total assets in such securities, the fund aims to offer attractive returns to investors willing to assume a higher level of credit risk.
• Income-Producing Securities Investment: Apart from high-yield corporate debt, the fund seeks to enhance its portfolio by incorporating a variety of other income-producing securities. This may include, but is not limited to, preferred stocks, convertible bonds, and other debt instruments from various issuers that can provide regular income. These investments are chosen based on their potential to contribute to the fund’s income generation objectives, diversifying the investment risks associated with high-yield debt.
• Advisory Services by Payden & Rygel: Payden & Rygel, the adviser to the fund, plays a crucial role in the selection and management of the fund’s investments. Leveraging their expertise, Payden evaluates securities that, while rated below the top investment grades by rating agencies, are considered to be of comparable quality. This evaluation process underpins the fund’s strategic focus, emphasizing its commitment to identifying undervalued or misrated securities that offer potential for returns in the below-investment-grade market.