Payden Limited Maturity Fund (PYLMX)

Overview

The fund described is primarily focused on investing in a broad spectrum of debt instruments and income-producing securities that are mostly denominated in U.S. dollars. This investment strategy emphasizes the allocation of at least 90% of its total assets into investment grade debt securities, which attests to a conservative investment approach aimed at achieving stable returns with controlled risk. However, the fund also retains the flexibility to invest a smaller portion, up to 10%, in debt securities that are rated below investment grade, introducing a modest level of risk in pursuit of potentially higher yields. The commitment to maintaining the overall average credit quality at investment grade denotes a balanced approach to risk management, aligning with the interests of investors seeking reliable income with a prudent risk profile.

Products and Services

• Investment Grade Debt Securities

These are high-quality bonds issued by corporations or governments with a lower risk of default. Investing in these securities is a cornerstone of the fund's strategy, aiming to provide investors with steady income while minimizing risk. The fund's commitment to allocate at least 90% of its assets to such securities underscores a conservative investment philosophy.

• Below Investment Grade Debt Securities

Also known as high-yield or junk bonds, these securities come with a higher risk of default but offer the potential for more significant returns. The fund's strategic allocation of up to 10% of its assets in these securities is designed to enhance overall portfolio yields while carefully managing exposure to risk. This balance allows for diversification and the opportunity for higher income, appealing to investors with a modest appetite for risk.

• Income-Producing Securities Payable in U.S. Dollars

The focus on securities that produce income and are payable in U.S. dollars is ideal for investors seeking exposure to U.S. dollar-denominated assets. This approach can provide a hedge against currency risk for investors whose base currency is not the U.S. dollar and offers stability and predictability in returns for all investors, considering the global standing of the U.S. dollar.