Top 3 Payden Mutual Funds for Balanced Portfolios

Payden & Rygel, the $165.7 billion private investment adviser, is highlighted by Zacks for three mutual funds deemed buy-worthy for long-term investors: Payden High Income (PYHRX) — a high‑yield bond fund led by Jordan Lopez, with 3‑yr/5‑yr annualized returns of 9.8%/5.6%, a 0.69% net expense ratio and a Zacks Rank #1; Payden Limited Maturity (PYLMX) — a short-duration, investment‑grade total‑return fund managed by Mary Beth Syal, with 3‑yr/5‑yr returns of 5.8%/3.6%, a 0.30% expense ratio and Zacks Rank #1; and Payden Emerging Markets Bond (PYEMX) — an EM sovereign/corporate debt fund run by Kristin Ceva, with 3‑yr/5‑yr returns of 11.7%/2.7%, a 0.81% expense ratio and Zacks Rank #2. Together these funds offer differentiated income and risk exposures (high yield, limited‑duration investment‑grade, and EM debt), competitive fees below category averages and strong recent performance, making them candidates for portfolio diversification and income allocation.

Analysis

Payden & Rygel manages $165.7 billion and offers fixed-income, equity and multi-asset mutual funds across offices in Los Angeles, Boston, London and Milan; Zacks highlights three Payden funds as buy candidates for long-term investors based on Zacks Mutual Fund Ranks (#1 or #2), positive multi-year returns and expense ratios below category averages. The three funds cited provide differentiated credit exposures: Payden High Income (PYHRX) targets below-investment-grade high yield with Jordan Lopez as lead manager since Aug. 14, 2012, showing 3-year/5-year annualized returns of 9.8% and 5.6%, a 0.69% net expense ratio and holdings concentrated in Misc Bonds (68.2%) and cash (9.4%) as of July 31, 2025.

Payden Limited Maturity (PYLMX), run by Mary Beth Syal since Feb. 28, 2008, pursues total return with investment-grade and short-duration instruments, posting 3-year/5-year returns of 5.8%/3.6% and a 0.30% expense ratio with sizable allocations to Misc Bonds (63.8%) and U.S. Treasury bills. Payden Emerging Markets Bond (PYEMX), managed by Kristin Ceva since Dec. 17, 1998, seeks high total return in EM sovereign and corporate debt, with 3-year/5-year returns of 11.7%/2.7%, a 0.81% expense ratio and notable holdings including Brazil treasury notes (2.4%).

The citation of low fees and experienced managers supports these funds as income/diversification options, but the divergence between 3-year and 5-year returns (notably PYEMX’s 11.7% vs 2.7%) and concentration in broad "Misc Bonds" and EM sovereign exposure signal credit, duration and country risks. Investors should weigh higher yield opportunities in PYHRX against elevated credit risk, use PYLMX for lower-duration preservation, and treat PYEMX as a volatility-prone source of EM beta while monitoring spreads, sovereign fundamentals and liquidity.

Key Decisions for Investors

• Consider adding one or more of these Payden funds to a diversified fixed-income sleeve: use PYHRX for higher income exposure, PYLMX for short-duration, lower-volatility allocation, and PYEMX for emerging-market yield and diversification
• Monitor credit spreads, default rates and sovereign fundamentals closely—particularly for PYHRX's high-yield concentration and PYEMX's EM country exposure (e.g., Brazil)—and trim positions if spreads widen materially or liquidity deteriorates
• Prefer modest position sizing and consider laddering or hedging interest-rate/credit exposure given the performance divergence between 3-year and 5-year returns and the funds' concentrated bond allocations