Payden Emerging Markets Local Bond Fund SI Class (PYILX)

Overview

The described fund primarily focuses on investing in a broad spectrum of bonds, dedicating a minimum of 80% of its total assets to this endeavor. Its investment scope spans across various types of debt securities and commercial paper. This includes bonds issued or guaranteed by entities such as the U.S. government, foreign governments, and their respective agencies and instrumentalities. Additionally, the fund participates in investments in political subdivisions of foreign governments, such as provinces and municipalities, and supranational organizations like the World Bank. It also involves itself in purchasing credit-linked notes related to these securities. Furthermore, the fund includes debt securities and commercial paper issued by U.S. and foreign corporations within its investment portfolio, as well as credit-linked notes associated with such securities. It is noteworthy that the fund operates as non-diversified, meaning it may focus its investments more narrowly than diversified funds.

Products and Services

The fund offers investment products and services centered around bond investments, delineated as follows:

• Government and Agency Bonds: This category includes debt securities issued or guaranteed by the U.S. government, foreign governments, and their agencies and instrumentalities. Investments are made in bonds aimed at supporting government and agency activities, which typically offer lower risk compared to corporate bonds.
• Political Subdivisions and Supranational Organizations Bonds: The fund invests in debt securities issued by political subdivisions of foreign governments, such as provinces and municipalities, and by supranational organizations, such as the World Bank. These bonds can offer a blend of risk and return, influenced by the creditworthiness of the issuing entity.
• Credit-Linked Notes: This investment involves credit-linked notes issued concerning the aforementioned government, agency, and supranational securities. Credit-linked notes offer investors exposure to fixed income, with return and risk profiles linked to the performance of the reference securities.
• Corporate Debt Securities and Commercial Paper: The fund also invests in debt securities and commercial paper issued by U.S. and foreign corporations. These investments can offer higher yields compared to government and agency bonds, reflecting the higher risk associated with corporate debt.