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Payden

Payden Parent Rating

Above Average

Joan Payden co-founded Payden& Rygel in 1983 to specialize in cash and fixed-interest strategies.

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.

Payden Investments

Market

US Open-end ex MM ex FoF ex Feeder

Total Net Assets

8.68 Bil

Investment Flows (TTM)

−661.76 Mil

Asset Growth Rate (TTM)

−7.66%

# of Share Classes

47
Morningstar Rating # of Share Classes
6
15
18
5
1
Not Rated 2

Quick Definitions: Key Morningstar Terms

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