This remained the bulk of the Los Angeles-based firm's assets of around USD 135 billion as of November 2022, with smaller equities and multisector capabilities. Equity is held by 30 staff members, with Payden having a majority stake. The shop plans to hold Payden's equity in a charitable trust when she eventually departs the business and ultimately recycle this back to employees. This transparency is welcome and may help to maintain a consistent strategic direction and promote staff longevity. Indeed, the shop boasts enviable tenure among its investment personnel — many have worked there for well over a decade.
Interestingly, the firm's equity does not pay dividends. Incentive remuneration is paid out in cash and is measured mostly on qualitative factors rather than being quantitatively linked to how individual funds perform. Payden believes that tying remuneration directly to investment performance can at times create conflicts of interest. A greater linkage to portfolio performance and deferring a portion of staff bonuses to vest over time would, however, be welcome, though some staff members do invest meaningfully in the funds, particularly via the firm’s pension scheme. GSFM Pty Ltd distributes this vehicle in Australia, and GSFM Responsible Entity Services Ltd acts as the responsible entity. As well as setting the fee, GSFM appoints Payden & Rygel to run this strategy.