Payden & Rygel launches Payden Emerging Markets Corporate Bond Fund

By Toni Weeks

San Luis Obispo, Calif., Nov. 8 - The Payden & Rygel Investment Group gave details in an N-1A filing with the Securities and Exchange Commission about its newly launched Payden Emerging Markets Corporate Bond Fund.

The fund seeks a high level of total return. Under normal circumstances, it invests at least 80% of its total assets in corporate bonds issued by companies organized or with headquarters in emerging market countries, or whose business operations are principally located in emerging market countries.

The fund will invest in a wide variety of debt instruments and income-producing securities, including debt securities, loans and commercial paper issued by U.S. and foreign companies as well as in debt securities issued or guaranteed by the U.S. government and foreign governments and their agencies and instrumentalities, political subdivisions of foreign governments, such as provinces and municipalities, and supranational organizations, such as World Bank. Up to 20% of the fund's total assets may be invested in other debt securities and similar debt instruments, including those of issuers located in countries with developed securities markets.

Under normal market conditions, the fund invests a substantial portion of its total assets in debt securities of issuers whose securities are rated below investment grade. It also invests most of its assets in debt securities payable in dollars, although it does intend to invest some of its assets in debt securities payable in foreign currencies.

Kristin Ceva, Arthur Hovsepian, Natalie Trevithick and Vladimir Milev are the portfolio managers.

The fund will offer investor class shares. The ticker symbol is "PYCEX."

Shareholder fees consist of a 2% redemption fee on shares exchanged or redeemed within 30 days of purchase.

Management fees are 0.8%. A fee waiver agreement with the investment adviser will limit total annual fund operating expenses to 0.95% until Nov. 11, 2014.

Los Angeles-based Payden & Rygel is the fund's investment adviser.

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