<PAGE> 1
PAYDEN & RYGEL INVESTMENT GROUP [Full page graphic with corporate
SEMI-ANNUAL REPORT logo for Payden and Rygel.]
APRIL 30, 1997
<PAGE> 2
CONTENTS
President's Letter
-------------------------
1
Management Discussion
Equity Markets
Bond Markets
-------------------------
8
Portfolio Highlights
-------------------------
16
Statements of Assets
and Liabilities
-------------------------
20
Statements of Operations
-------------------------
24
Statements of Changes
in Net Assets
-------------------------
31
Schedules of Portfolio
Investments
-------------------------
77
Notes to Financial Statements
-------------------------
92
Financial Highlights
-------------------------
<PAGE> 3
Dear Shareholders:
It's been an exciting six-month period for the Payden & Rygel mutual funds. Our
commitment to long-term investment strategies and our conviction that inflation
in the U.S. economy would remain under wraps during 1997 helped boost the
investment performance of our funds.
Going into this year, many market observers and economists questioned whether
inflation would be held in check. A tightening labor market, which increased
pressures on employee wages for the first time in several years, and a robust
economy, which boosted GDP by 5.8%, seemed to confirm the fears of inflation
hawks and contributed to the extremely volatile market sessions that
characterized the first quarter of 1997. The Fed's 0.25% tightening of
short-term interest rates in March and public concern over the sustainability of
U.S. corporate profits also helped roil the markets.
In the second quarter, however, it became apparent that inflation was not as
close to hatching as the markets and the Fed had supposed. Renewed investor
confidence and a wave of unexpectedly higher earnings reports from many of the
biggest U.S. companies drove the Dow Jones Industrial Average to record highs.
Prices in the bond market were also driven higher as investors bet that the Fed
would leave short-term interest rates unchanged at its FMOC meeting in May,
which it did.
Yet, despite the positive economic reports of the second quarter, Payden & Rygel
believes that the Fed's concerns about the labor market and its role in pushing
up consumer prices will continue to dominate market news in 1997. Therefore, we
have decided to stick to a conservative investment style in the coming months.
Indeed, the solid performance of our investment portfolios in general has
stemmed from our fairly conservative approach to the markets. Our high-quality,
domestic fixed-income funds have benefited from a relatively market-neutral
duration vis-a-vis the broad, investment-grade bond market. Short Bond Fund,
Intermediate Bond Fund, and Investment Quality Bond Fund have all turned in
notable performances. Our large-cap domestic equity funds have also done well.
Market Return Fund, which invests in S&P futures contracts and a portfolio of
enhanced cash, has beaten the S&P 500 Index over the trailing twelve months and
year-to-date, a feat that, according to Morningstar, only 3% of all actively
managed U.S. diversified stock funds have been able to accomplish. On the
international front, Global Fixed Income Fund, the third biggest global bond
fund in the mutual fund industry, has continued to post strong numbers. This
year's performance adds to a fine long-term record. For the three-year period
ending April 30, 1997, the Fund earned a 5-star rating by Morningstar (based on
its risk-adjusted performance against 1,193 fixed income funds for that period).
It achieved its strong returns with an average credit weighting of AAA and
without engaging in high risk securities such as emerging markets debt.
<PAGE> 4
As you may know, in mid-to-late 1996, several new funds joined the Payden &
Rygel fund family. Among the new offerings were Growth & Income Fund,
International Equity Fund, Global Balanced Fund, Global Short Bond Fund, and
Total Return Fund.
[PHOTO OF JOAN PAYDEN]
Within the last six months, all of these funds have offered competitive returns.
But, two of the funds, in particular, have stood out. Growth & Income Fund,
launched on November 1, 1996, now has approximately $100 million in assets and
has risen in tandem with the strong-performing big-cap stocks of the Dow and the
S&P 500 Index. The Fund employs the well-known Dow Dogs strategy, which invests
in the ten highest-yielding stocks in the Dow Jones Industrial Average, and
combines it with the S&P 500 Index to provide added diversification to the
portfolio. Global Short Bond Fund has also had a very positive showing
year-to-date relative to other global bond funds. The Fund, which has an average
credit quality of AAA, provides money market and short-bond fund investors with
a way to diversify into foreign bonds with limited interest-rate, credit
quality, and currency risks.
Looking forward, we believe that moderate inflation growth, large-cap equities,
and high-quality global bonds will continue to benefit our shareholders and will
provide us with a very positive outlook for the rest of the year and beyond. We
appreciate your investment in our funds and we hope to produce another
profitable six months for you in 1997.
Best Wishes,
/s/Joan A. Payden
- -----------------
Joan A. Payden
Chairman of the Board
Payden & Rygel Investment Group
Morningstar's proprietary ratings reflect historical risk-adjusted performance,
are subject to change monthly and are calculated from the Fund's three-year
average annual returns in excess of 90-day T-bill returns with appropriate fee
adjustments. Return scores that fall into the top 10% of the Fund's broad
investment category are labeled High; the next 22.5% are considered Above
Average; the middle 35% are Average; the next 22.5% are labeled Below Average;
and the bottom 10% are considered Low.
<PAGE> 5
MANAGEMENT DISCUSSION AND ANALYSIS
EQUITY MARKETS
The U.S. stock market continued its bull market run, with the S&P 500 Index
earning 14.72% for the six months ended April 30, 1997. The Dow Jones Industrial
Average did even better than that, posting a 17.48% return over the same period.
The DJIA index led all other U.S. stock market indices over this time period. As
the semi-annual review comes to a close, the S&P 500 Index and the Dow Jones
Industrial Average are approaching the highs that they reached in the previous
month.
<TABLE>
<CAPTION>
DATE S&P 500 Dow Jones Industrial Average
- ---- ------- ----------------------------
<S> <C> <C>
N '96 703.77 6021.93
11/8/96 730.82 6219.82
11/15/96 737.62 6348.03
11/22/96 748.73 6471.76
D 757.02 6521.7
12/6/96 739.6 6381.94
12/13/96 728.64 6304.87
12/20/96 748.87 6484.4
J '97 756.79 6560.91
1/3/97 748.03 6544.09
1/10/97 759.5 6703.79
1/17/97 776.17 6833.1
F 770.52 6696.48
1/31/97 786.16 6813.09
2/7/97 789.56 6855.8
2/14/97 808.48 6988.96
M 801.77 6931.62
2/28/97 790.82 6877.74
3/7/97 804.97 7000.89
3/14/97 793.17 6935.46
A 784.1 6804.79
3/28/97 773.88 6740.59
4/4/97 757.9 6526.07
4/11/97 737.65 6391.69
M 766.34 6703.55
4/25/97 765.37 6738.87
5/2/97 812.97 7071.2
</TABLE>
The GROWTH & INCOME FUND earned a very respectable 13.69% in its first six
months of operation. The Fund's strategy of investing half of its assets in the
S&P 500 Index and the other half in the 10 highest yielding stocks in the Dow
Jones Industrial Average (popularly known as the Dow Dogs) worked well. The
assets invested in the S&P 500 contributed the bulk of the portfolio return, as
the Dow Dogs lagged the market over this six month period. Among the best
performers in the portfolio were Exxon, which gained 20.5%, and Philip Morris,
which gained 28.9%, despite a slew of well-publicized (and potentially costly)
law suits that have been brought against the company's tobacco unit. AT&T Corp.
was the worst performer in the portfolio and the only stock in the Dow Jones
Industrial Average to post a negative return. Other underachievers were Chevron,
International Paper, and General Motors, which each earned less than half of the
Index return. Management believes that with the benefit of time, the Dow Dogs
strategy will work as successfully as it has for the past 24 years. That is,
these stocks will eventually recover from temporary problems within their
businesses and from undervalued stock prices because they are among some of
America's best managed and most globally diversified corporations.
Despite considerable volatility in the U.S. bond market, which will be addressed
later in the report, the MARKET RETURN FUND posted a strong return of 13.50%.
Management is generally pleased with this result and believes that the Fund's
good strategy of using short-intermediate bonds and S&P 500 stock index futures
will produce very competitive returns.
SEMI-ANNUAL REPORT 1
<PAGE> 6
MANAGEMENT DISCUSSION AND ANALYSIS (Continued)
<TABLE>
<CAPTION>
DATE German DAX UK FTSE 100 Japan Nikkei 225
- ---- ---------- ----------- ----------------
<S> <C> <C> <C>
N '96 2683.25 3948.5 20633.1
11/8/96 2739.83 3910.8 21201
11/15/96 2795.8 3958.2 20929.7
11/22/96 2763.69 4018.7 21216.1
D 2845.52 4058 21020.4
12/6/96 2791.96 3963 20276.7
12/13/96 2799.71 3972.4 20341.4
12/20/96 2854.45 4077.6 19690.5
J '97 2852.88 4091 19369
1/3/97 2859.28 4089.5 19361.3
1/10/97 2933.39 4056.6 17303.7
1/17/97 3001.37 4207.7 18090
F 2998.24 4218.8 17689.4
1/31/97 3035.15 4275.8 18330
2/7/97 3138.01 4307.8 17867
2/14/97 3248.18 4341 18722
M 3184.09 4336.8 19034.5
2/28/97 3259.64 4308.3 18557
3/7/97 3376.2 4420.3 18198.7
3/14/97 3359.29 4424.3 17923.6
A 3298.24 4254.8 18633.2
3/28/97 3429.05 4312.9 18189.7
4/4/97 3244.93 4236.6 17860.6
4/11/97 3340.05 4270.7 17847
M 3344.39 4310.5 18352.1
4/25/97 3374.1 4369.7 18612.9
5/2/97 3460.37 4455.6 19514.8
</TABLE>
The INTERNATIONAL EQUITY FUND performed well in a difficult environment. Since
the Fund's inception on December 9, 1996, through April 30, 1997, the Fund has
posted a return of 2.18%, while the MSCI Europe, Australia and Far East Index
has lost 0.45% over the same period.
Stock selection, particularly in Japan, was the primary reason for the
relatively strong performance of the Fund. An emphasis on import-related stocks,
such as Sony and Toyota Motors, helped boost the portfolio's return. The decline
of the Japanese yen, down 11.1% for the six months ended April 30, 1997, was the
primary reason that these Japanese exporters did so well.
Within Europe, the Fund was overweight in the high-performing German, Dutch, and
Swiss stock markets. The German DAX index gained 20.3% since the Fund's
inception date. As in Japan, export-related companies were the big gainers,
helped by a 10.5% decline in the German mark. Unfortunately, the stock positions
in the Fund were unhedged and its European currency exposure negatively impacted
its return. In the U.K., the stock market gained 11.9% since the Fund's
inception date. The Fund was overweight in the U.K. market, and the British
pound stayed generally stable versus the dollar, so the Fund was able to keep
nearly all of its gains.
<TABLE>
<CAPTION>
DATE Japanese Yen German Mark
- ---- ------------ -----------
<S> <C> <C>
N '96 113.3 1.512
11/8/96 111.74 1.5015
11/15/96 111.05 1.509
11/22/96 111.45 1.5066
D 113.92 1.539
12/6/96 112.95 1.547
12/13/96 113.85 1.557
12/20/96 114.25 1.5515
J '97 115.25 1.553
1/3/97 116.41 1.567
1/10/97 116.13 1.5854
1/17/97 117.36 1.6172
F 118.85 1.6285
1/31/97 121.25 1.637
2/7/97 123.15 1.662
2/14/97 124.25 1.6878
M 122.91 1.6885
2/28/97 120.33 1.69
3/7/97 121.92 1.7135
3/14/97 123.5 1.694
A 122.6 1.6863
3/28/97 123.91 1.6761
4/4/97 124.26 1.685
4/11/97 125.87 1.7204
M 125.8 1.7098
4/25/97 126.43 1.727
5/2/97 126.65 1.7294
</TABLE>
2 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 7
The GLOBAL BALANCED FUND earned 0.22% for the period from its inception on
December 9, 1996 through April 30, 1997. The portfolio was split approximately
50% in bonds and 50% in stocks over this time period. The large weighting in
bonds hurt the portfolio, particularly as half of the bond allocation, or 25% of
the total Fund, was invested in U.S. bonds. The U.S. bond market was among the
worst performing markets over this time period. In addition, the Fund had
significant exposure to European currency, and since 25% of the Fund was
invested in foreign bonds, those bonds did not rise in value enough to offset
the losses in the European currency over that time.
Management is generally satisfied that the Fund is meeting its investment
objective, as the Fund seeks maximum appreciation within a balanced framework
over long periods of time. The portfolio's conservative construction reflects
our worries about the level of stock market valuations worldwide. We believe
they are expensive, and this contributed to the Fund's conservative equity
allocation. Should the equity markets correct significantly, bringing valuations
more in line with what we believe is a reasonable price for stocks, then the
equity allocation of this Fund may be substantially increased.
BOND MARKETS
<TABLE>
<CAPTION>
MUNICIPAL BOND YIELD CURVE TREASURY BOND YIELD CURVE
-------------------------- -------------------------
11/1/96 4/30/97 11/1/96 4/30/97
------- ------- ------- -------
<S> <C> <C> <C> <C>
1 yr 3.60% 3.85% 5.40% 5.88%
2 yr 3.85% 4.40% 5.73% 6.27%
3 yr 4.05% 4.60% 5.86% 6.39%
5 yr 4.35% 4.80% 6.07% 6.56%
10 yr 4.85% 5.10% 6.34% 6.70%
15 yr 5.25% 5.45% 6.44% 6.75%
20 yr 5.40% 5.60% 6.44% 6.80%
25 yr 5.45% 5.65% 6.54% 6.85%
30 yr 5.50% 5.70% 6.64% 6.95%
</TABLE>
During the six months ended April 30, 1997, bond yields moved modestly higher,
rising approximately 0.25%. This increase in rates was prompted by stronger
economic growth and fears that the Federal Reserve would raise interest rates to
keep inflation under wraps. Yields first began ticking upward in late February,
when it became apparent that the Fed was indeed going to make a preemptive
strike on inflation. It announced a rate hike of 0.25% on March 20.
SEMI-ANNUAL REPORT 3
<PAGE> 8
MANAGEMENT DISCUSSION AND ANALYSIS (Continued)
Tax-Exempt Bonds
The agreement to balance the budget by the year 2002 and the inclusion
of some form of tax cut have the potential to impact the bond market.
However, the tax cuts that are proposed, i.e., a reduction in the
capital gains tax rate, an increase in the child credit and tax relief
for college savings plans, should have little impact on the municipal
bond market. The issue of a flat tax continues to surface on Capital
Hill, as well; however, there is little popular support for it at this
time.
The emphasis in the core of Payden & Rygel's Tax-Exempt Funds continues
to be high quality, non-callable bonds. Management has also targeted
some high quality housing bonds, which have stable price movement and
provide incremental yield over other high quality bonds. The Funds have
been broadly diversified across states and issuer types to limit the
risk undertaken from any one economic area or issuer. Over the past six
months, we have emphasized the two- and three-year maturity area for
the SHORT DURATION TAX EXEMPT FUND, in order to take advantage of the
steep slope of this portion of the yield curve, and the 10-15 year
maturity range in the TAX EXEMPT BOND FUND. The 10-15 year maturity
range produced the greatest return over the past six months and proved
to be a profitable position for the Tax Exempt Fund.
For the six months ended April 30, 1997, the Short Duration Tax Exempt
Fund total return was 1.82%. The Tax Exempt Bond Fund returned 1.74%.
The outlook for the municipal bond market continues to be positive in
our opinion. Tax-exempt bonds provide attractive after-tax total
returns, when compared to other fixed income investments. The credit
quality of municipal issuers has firmed, as states continue to benefit
from the strength of the U.S. economy, and tax revenues remain high. We
weigh the maturity characteristics, structure, credit quality and
appreciation potential of every bond we analyze for purchase in the
Funds. We currently favor the three-year maturity range for the Short
Duration Tax Exempt Fund, and the 10-15 year maturity range for the Tax
Exempt Bond Fund.
Taxable Bonds
The LIMITED MATURITY FUND earned 2.51% for the six months ended April
30, 1997. The Fund recently earned a 4-star rating from Morningstar for
the trailing 3-years (based on its risk-adjusted performance against
1,193 fixed income funds for the period
4 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 9
ended April 30, 1997).* The Fund's stake in corporate and
mortgage-backed bonds contributed significantly to the portfolio's
performance. Higher yielding mortgage securities performed especially
well over this period due to a combination of higher yield, tighter
yield spreads, and decreased prepayment risk.
The SHORT BOND FUND returned 2.23% for the six months ended April 30,
1997. The Short Bond Fund, which primarily invests in securities with
maturities less than 5 years, also carries a 4-star rating from
Morningstar for the trailing 3-years (based on its risk-adjusted
performance against 1,193 fixed income funds for the period ended April
30, 1997).* Management overweighted the corporate bond and
mortgage-backed bond sectors and shortened the Fund's maturity to
protect it from a rising interest rate environment. The combination of
lower average maturities, along with the use of mortgages and
corporates, reduced portfolio volatility and enhanced returns.
The U.S. TREASURY FUND returned 1.50% for the six months ended April
30, 1997. The Fund invests 100% of its assets in U.S. Treasury
securities, concentrated its investments in the two- to seven-year
maturity buckets. Intermediate-term Treasuries offer yield advantages
over shorter-term securities because they are positioned at the
steepest part of the yield curve and can benefit from "rolling" down
the yield curve, thereby increasing significantly in price.
The INTERMEDIATE BOND FUND earned 2.02% for the six months ended April
30, 1997. The Fund invests in Treasuries, corporate bonds, mortgages
and asset-backed securities with maturities generally under 10 years.
The Fund carries a 3-star rating from Morningstar for the trailing
3-years (based on its risk-adjusted performance against 1,193 fixed
income funds for the period ended April 30, 1997).* Despite the rising
interest-rate environment, the inclusion of mortgages, corporates and
asset-backeds helped performance as these higher yield securities
performed well.
The INVESTMENT QUALITY BOND FUND returned 1.50% for the six months
ended April 30, 1997. The Fund invests in intermediate- and long-term
bonds, including Treasuries, corporate bonds, mortgages, and
asset-backed. The Fund carries a 3-star rating from Morningstar for the
trailing 3-years (based on its risk-adjusted performance against 1,193
fixed income funds for the period ended April 30, 1997).*
* Morningstar's proprietary ratings reflect historical risk-adjusted
performance, are subject to change monthly and are calculated from the
Fund's three-year average annual returns in excess of 90-day T-Bill
returns with appropriate fee adjustments. Return scores that fall into
the top 10% of the Fund's broad investment category are labeled High;
the next 22.5% are considered Above Average, the middle 35% are
Average; the next 22.5% are labeled Below Average; and the bottom 10%
are considered Low.
SEMI-ANNUAL REPORT 5
<PAGE> 10
MANAGEMENT DISCUSSION AND ANALYSIS (Continued)
Although the recent rise in interest rates negatively affected returns,
the impact was muted because the Fund's overall maturity profile was
shortened in March. As with our other fixed-income funds, an increased
allocation to non-Treasury securities provided an enhancement to
returns during this period. The tightening of mortgage-backed and
corporate bond yields further boosted portfolio returns, as did our
aggressive use of high quality asset-backed securities.
The TOTAL RETURN FUND returned 0.31% since inception on December 9,
1996, through April 30, 1997. Interest rates rose significantly during
the past several months which negatively impacted bond returns.
However, the Fund's performance was enhanced by the use of mortgages,
corporate bonds and asset-backeds. Each of these sectors has performed
relatively well and has contributed to overall returns. Payden & Rygel
continues to believe that these sectors offer attractive return
opportunities. In addition, 20% of the portfolio is invested in
intermediate-maturity, BB-rated corporate bonds which offer additional
returns because of their below investment-grade ratings. These
securities provide over 1% of additional yield while limiting risk
because of the positive credit conditions of the individual securities.
International Bonds
The geographical investment focus of the three Payden & Rygel GLOBAL
BOND FUNDS is on the major industrialized economies of the world,
(e.g., Germany, Japan, United Kingdom, Canada, France, etc.). Over the
past six months, several major themes have influenced the bond
performance in these regions around the world. European bonds have been
strongly influenced by the viability of European Monetary Union and its
ability to start on January 1, 1999. Japanese bonds have been affected
by the weakness in the Japanese economy and the loose monetary policy
of the Bank of Japan, which has held short term rates at 0.50% for the
past six months. In the U.S. and the U.K., bond investors have been
worried about economies, which appear to be gaining steam, and thus may
be subject to future inflation pressures.
6 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 11
In addition, the U.S. dollar has risen relative to most of the major
currencies in the world because of higher interest rates and a strong
domestic economy. THE INTERNATIONAL BOND FUND took advantage of this
situation by hedging a significant percentage of its foreign currency
exposure. This strategy enabled the Fund to outperform the JP Morgan
International Bond Index by 3.72% over the half year.
Another strategy employed by all three Funds was to sell their exposure
to the Japanese bond market in anticipation of interest rates rising
from historically low levels. The move paid off. Japanese bond yields
rose throughout the month of April, thereby lowering bond prices, which
helped the GLOBAL FIXED INCOME FUND and the International Bond Fund
outperform that segment of their respective indices. Overall, the
Global Fixed Income Fund returned 2.18%, the GLOBAL SHORT BOND FUND
returned 3.25% and the International Bond Fund returned - 3.19% over
the past six months.
SEMI-ANNUAL REPORT 7
<PAGE> 12
--------------------
GROWTH & INCOME FUND
--------------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
S&P Depositary
Receipts 51% Other Issues, and Cash 2%
Texaco 3%
AT&T 4%
Dupont 5%
International Paper 5%
General Motors 5%
Minnesota Mining & Manufacturing 5%
Exxon 5% J.P. Morgan 5%
Chevron 5% Philip Morris 5%
</TABLE>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
Net Assets: $81,567,000 Fund Not In
Number of Issues: 13 Operation
- --------------------------------------------------------------------------------
------------------
MARKET RETURN FUND
------------------
Portfolio Composition
<TABLE>
<CAPTION>
<S> <C> <C>
Asset-Backed 9%
Corporate 10% Equity
Exposure
--------
S&P Futures 98%
Mortgage Backed 18% S&P Depositary
S&P Depositary Receipts 2%
Treasury/ Receipts 2%
Agency 57% Cash 4%
</TABLE>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
Net Assets: $10,814,000 $5,789,000
Number of Issues: 24 22
Average Maturity: 0.4 years 2.1 years
SEC Yield: 5.15% 6.03%
- --------------------------------------------------------------------------------
8 Payden & Rygel Investment Group
<PAGE> 13
-------------------------
INTERNATIONAL EQUITY FUND
-------------------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C> <C>
Japan 29% Top 5 Countries
---------------
Japan 29%
U.K. 14%
Other 5% Switzerland 9%
Pacific Rim 11% France 8%
Netherlands 7%
U.K. 14%
Continental
Europe 41%
</TABLE>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
Net Assets: $8,800,000 Fund Not In
Number of Issues: 55 Operation
- --------------------------------------------------------------------------------
--------------------
GLOBAL BALANCED FUND
--------------------
<TABLE>
<CAPTION>
Portfolio Composition
Stocks Bonds
53% 47% Top 5 Countries
---------------
<S> <C> <C> <C> <C>
U.S. 19% U.S. 21% U.S. 40%
U.K. 13%
Japan 8%
Europe 21% Germany 6%
Europe 21% Australia 5%
Japan 8% Pacific Rim 5%
Pacific Rim 4%
Other 1%
</TABLE>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
Net Assets: $10,393,000 Fund Not In
Number of Issues: 73 Operation
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT 9
<PAGE> 14
- ------------------------------
SHORT DURATION TAX EXEMPT FUND
- ------------------------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
General Obligation Bonds 16%
Insured Bonds 31%
Revenue Bonds 39%
Cash 8%
Pre-refunded Bonds 6%
</TABLE>
<TABLE>
<CAPTION>
Credit
Quality
-------
<S> <C>
AAA 48%
AA 16%
A 27%
BBB 9%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $32,420,000 $36,336,000
Number of Issues: 34 35
Average Maturity: 1.8 years 2.1 years
SEC Yield: 3.97% 3.76%
- --------------------------------------------------------------------------------
</TABLE>
- --------------------
TAX EXEMPT BOND FUND
- --------------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
General Obligation Bonds 30%
Revenue Bonds 29%
Cash 3%
Pre-refunded Bonds 5%
Insured Bonds 33%
</TABLE>
<TABLE>
<CAPTION>
Credit
Quality
-------
<S> <C>
AAA 54%
AA 35%
A 7%
BBB 4%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $48,365,000 $49,862,000
Number of Issues: 42 43
Average Maturity: 9.6 years 9.3 years
SEC Yield: 4.88% 4.75%
- --------------------------------------------------------------------------------
</TABLE>
10 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 15
- ---------------------
LIMITED MATURITY FUND
- ---------------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
Treasury/Agency 15%
Commercial Paper 39%
Mortgage Backed 17%
Cash 1%
Asset Backed 6%
Corporate 22%
</TABLE>
<TABLE>
<CAPTION>
Credit
Quality
-------
<S> <C>
AAA 75%
AA 12%
A 13%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $113,775,000 $50,771,000
Number of Issues: 36 27
Average Maturity: 0.4 years 0.7 years
SEC Yield: 5.58% 5.63%
</TABLE>
- ---------------
SHORT BOND FUND
- ---------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
Mortgage Backed 20%
Corporate 41%
Asset Backed 9%
Commercial Paper 12%
Cash 4%
Treasury/Agency 14%
</TABLE>
<TABLE>
<CAPTION>
Credit
Quality
-------
<S> <C>
AAA 59%
AA 15%
A 26%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $109,504,000 $97,966,000
Number of Issues: 40 34
Average Maturity: 1.3 years 1.9 years
SEC Yield: 6.12% 5.80%
- --------------------------------------------------------------------------------
</TABLE>
SEMI-ANNUAL REPORT 11
<PAGE> 16
- ------------------
U.S. TREASURY FUND
- ------------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
Treasury/Agency 100%
</TABLE>
<TABLE>
<CAPTION>
Credit
Quality
-------
<S> <C>
AAA 100%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $21,524,000 $22,114,000
Number of Issues: 8 13
Average Maturity: 2.5 years 4.7 years
SEC Yield: 6.14% 5.85%
- --------------------------------------------------------------------------------
</TABLE>
- ----------------------
INTERMEDIATE BOND FUND
- ----------------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
Treasury/Agency 33%
Commercial Paper 4%
Mortgage Backed 20%
Asset Backed 13%
Corporate 30%
</TABLE>
<TABLE>
<CAPTION>
Credit
Quality
-------
<S> <C>
AAA 70%
AA 9%
A 13%
BBB 8%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $35,968,000 $52,767,000
Number of Issues: 24 31
Average Maturity: 3.8 years 3.1 years
SEC Yield: 6.33% 5.74%
- --------------------------------------------------------------------------------
</TABLE>
12 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 17
- -----------------------
INVESTMENT QUALITY FUND
- -----------------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
Treasury/Agency 22%
Asset Backed 8%
Mortgage Backed 35%
Cash 1%
Corporate 34%
</TABLE>
<TABLE>
<CAPTION>
Credit
Quality
-------
<S> <C>
AAA 82%
AA 6%
A 7%
BBB 5%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $48,141,000 $32,304,000
Number of Issues: 37 32
Average Maturity: 6.5 years 8.8 years
SEC Yield: 6.30% 6.63%
- --------------------------------------------------------------------------------
</TABLE>
- -----------------
TOTAL RETURN FUND
- -----------------
<TABLE>
<CAPTION>
Portfolio Composition
<S> <C>
Mortgage Backed 34%
Treasury/Agency 10%
Cash 1%
Non-U.S.$ 10%
Asset Backed 20%
Corporate 25%
</TABLE>
<TABLE>
<CAPTION>
Credit
Quality
-------
<S> <C>
AAA 77%
BBB 3%
BB 17%
B 3%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $12,583,000 Fund
Number of Issues: 37 Not In
Average Maturity: 6.4 years Operation
SEC Yield: 6.26%
- --------------------------------------------------------------------------------
</TABLE>
SEMI-ANNUAL REPORT 13
<PAGE> 18
- -----------------------
INTERNATIONAL BOND FUND
- -----------------------
<TABLE>
<CAPTION>
Maturity Composition
<S> <C>
Italy 4.4
Spain 5.1
Germany 7.2
U.K. 4.3
Denmark 7.6
Netherlands 7.8
Sweden 6.4
Australia 5.4
</TABLE>
<TABLE>
<CAPTION>
Country Allocation
------------------
<S> <C>
U.K. 27%
Germany 21%
Sweden 11%
Denmark 10%
Spain 4%
Italy 4%
Australia 21%
Netherlands 2%
</TABLE>
<TABLE>
<CAPTION>
Currency Composition
<S> <C>
U.S. 41%
Germany 20%
Spain 4%
U.K. 11%
Japan 12%
Canada 12%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $22,432,000 $18,364,000
Number of Issues: 24 23
Average Maturity: 5.5 years 6.6 years
SEC Yield: 6.01% 5.31%
- --------------------------------------------------------------------------------
</TABLE>
14 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 19
- ------------------------
GLOBAL FIXED INCOME FUND
- ------------------------
<TABLE>
<CAPTION>
Maturity Composition
<S> <C>
Spain 5.1
U.S. 3.4
U.K. 7.6
Sweden 4.7
Germany 7.0
Australia 8.5
</TABLE>
<TABLE>
<CAPTION>
Country Allocation
------------------
<S> <C>
U.S. 51%
U.K. 15%
Germany 9%
Sweden 10%
Australia 10%
Spain 5%
</TABLE>
CURRENCY 100%
HEDGED INTO
U.S. $
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $597,510,000 $651,165,000
Number of Issues: 17 21
Average Maturity: 5.2 years 5.7 years
SEC Yield: 6.22% 5.40%
- --------------------------------------------------------------------------------
</TABLE>
- ----------------------
GLOBAL SHORT BOND FUND
- ----------------------
<TABLE>
<CAPTION>
Maturity Composition
<S> <C>
U.S. 1.2
Sweden 2.2
Australia 3.5
Germany 2.5
U.K. 2.1
</TABLE>
<TABLE>
<CAPTION>
Country Allocation
<S> <C>
U.S. 21%
U.K. 10%
Germany 24%
Sweden 15%
Spain 10%
Australia 20%
</TABLE>
CURRENCY 100%
HEDGED INTO
U.S. $
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
April 30, 1997 October 31, 1996
-------------- ----------------
<S> <C> <C>
Net Assets: $153,877,000 $28,913,000
Number of Issues: 15 13
Average Maturity: 2.3 years 2.4 years
SEC Yield: 5.15% 5.12%
- --------------------------------------------------------------------------------
</TABLE>
SEMI-ANNUAL REPORT 15
<PAGE> 20
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
GLOBAL GLOBAL INTERNATIONAL SHORT DURATION TAX EXEMPT
SHORT BOND FIXED INCOME BOND TAX EXEMPT BOND
FUND FUND FUND FUND FUND
============ ============ ============ ============ ============
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value*.............. $147,884,722 $580,988,569 $ 21,784,381 $ 31,969,812 $ 47,725,256
Interest receivable................. 4,087,116 14,431,478 603,288 474,051 716,197
Dividends receivable................
Open forward currency contracts..... 1,906,900 2,457,364 37,038
Closed forward currency contracts... 14,504 43,513 7,991
Receivable for investments sold.....
Receivable for open futures
contracts.........................
Receivable for fund shares sold.....
Unamortized organization costs (Note
4)................................ 1,254 6,185 2,674 1,643 3,897
Deferred expense subsidy (Note 5)... 86,141 126,135 216,184 302,598
Other assets........................
------------ ------------ ----------- ----------- -----------
Total Assets.................... 153,980,637 597,927,109 22,561,507 32,661,690 48,747,948
------------ ------------ ----------- ----------- -----------
LIABILITIES:
Open forward currency contracts.....
Closed forward currency contracts...
Payable for investments purchased...
Payable for open futures
contracts......................... 13,406
Payable for fund shares redeemed.... 9,993 20,000 60,000
Payable to Payden & Rygel (Note
5)................................
Accrued expenses:
Investment advisory fees.......... 60,453 235,735 93,685 172,953 247,056
Administration fees............... 7,433 29,198 15,001 24,290 40,066
Other expenses.................... 34,661 140,212 21,093 24,218 20,948
Other liabilities................... 717 2,128 63 1,833
------------ ------------ ----------- ----------- -----------
Total Liabilities............... 103,264 417,266 129,842 241,461 383,309
------------ ------------ ----------- ----------- -----------
NET ASSETS...................... $153,877,373 $597,509,843 $ 22,431,665 $ 32,420,229 $ 48,364,639
============ ============ =========== =========== ===========
NET ASSETS:
Paid in capital..................... $153,697,373 $603,499,937 $ 23,022,341 $ 32,448,385 $ 49,610,327
Undistributed net investment
income............................ (567,895) (5,791,720) 366,749 7,246 12,700
Accumulated net realized gains
(losses) from:
Investments....................... (1,580,812) (11,994,986) (298,382) 85,706 (1,282,527)
Foreign currency transactions..... 3,790,489 21,383,195 21,597
Futures contracts................. 170,675 (108,515) (303,315)
Options contracts................. (863,801)
Net unrealized appreciation
(depreciation) from:
Investments....................... (3,264,903) (10,844,384) (700,851) (12,593) 322,485
Translation of assets and
liabilities in foreign
currencies...................... 1,803,121 1,950,927 20,211
Open futures contracts............ 4,969
Open options contracts written....
------------ ------------ ----------- ----------- -----------
NET ASSETS...................... $153,877,373 $597,509,843 $ 22,431,665 $ 32,420,229 $ 48,364,639
============ ============ =========== =========== ===========
Outstanding shares of beneficial
interest.......................... 15,230,124 58,920,948 2,268,493 3,242,863 5,139,012
============ ============ =========== =========== ===========
NET ASSET VALUE -- offering and
redemption price per share........ $ 10.10 $ 10.14 $ 9.89 $ 10.00 $ 9.41
============ ============ =========== =========== ===========
- ------------
*Investments, at cost............... $151,149,625 $591,832,953 $ 22,485,232 $ 31,982,405 $ 47,402,771
<CAPTION>
TREASURY
FUND
============
<S> <C>
ASSETS:
Investments, at value*.............. $ 21,285,362
Interest receivable................. 240,061
Dividends receivable................
Open forward currency contracts.....
Closed forward currency contracts...
Receivable for investments sold.....
Receivable for open futures
contracts.........................
Receivable for fund shares sold.....
Unamortized organization costs (Note
4)................................ 1,584
Deferred expense subsidy (Note 5)... 157,850
Other assets........................
-----------
Total Assets.................... 21,684,857
-----------
LIABILITIES:
Open forward currency contracts.....
Closed forward currency contracts...
Payable for investments purchased...
Payable for open futures
contracts.........................
Payable for fund shares redeemed....
Payable to Payden & Rygel (Note
5)................................ 21,921
Accrued expenses:
Investment advisory fees.......... 99,998
Administration fees............... 17,221
Other expenses.................... 22,077
Other liabilities...................
-----------
Total Liabilities............... 161,217
-----------
NET ASSETS...................... $ 21,523,640
===========
NET ASSETS:
Paid in capital..................... $ 21,758,768
Undistributed net investment
income............................ 6,472
Accumulated net realized gains
(losses) from:
Investments....................... (185,818)
Foreign currency transactions.....
Futures contracts.................
Options contracts.................
Net unrealized appreciation
(depreciation) from:
Investments....................... (55,782)
Translation of assets and
liabilities in foreign
currencies......................
Open futures contracts............
Open options contracts written....
-----------
NET ASSETS...................... $ 21,523,640
===========
Outstanding shares of beneficial
interest.......................... 2,069,453
===========
NET ASSET VALUE -- offering and
redemption price per share........ $ 10.40
===========
- ------------
*Investments, at cost............... $ 21,341,144
</TABLE>
See notes to financial statements.
16 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 21
<TABLE>
<CAPTION>
LIMITED SHORT INTERMEDIATE INVESTMENT TOTAL GLOBAL INTERNATIONAL
MATURITY BOND BOND QUALITY BOND RETURN BALANCED EQUITY
FUND FUND FUND FUND FUND FUND FUND
=========== =========== ========== ========== ========== ========== ==========
<S> <C> <C> <C> <C> <C> <C> <C>
$121,474,418 $108,079,793 $38,164,089 $59,004,044 $14,808,428 $10,264,044 $8,665,222
534,483 1,245,035 393,880 473,081 114,080 114,367 31
21,545 40,084
13,229
588
2,011,081 5,764,852 290,514 92,405
21,266 4,500
67,500 180,000 200 5,000
2,657 3,385 3,144
346,605 283,139 216,524 348,021 32,512 37,695 35,452
887
----------- ----------- ----------- ----------- ----------- ----------- ----------
122,423,006 109,787,967 40,785,574 65,590,198 15,283,573 10,446,124 8,841,338
----------- ----------- ----------- ----------- ----------- ----------- ----------
10,427
4,533
4,601,097 17,100,108 2,659,880
8,298,311
122,487 13,973 13,584 11,718
265,195 199,208 165,139 173,477 8,939 11,391 8,572
44,492 42,688 30,234 28,409 1,916 1,904 1,722
39,954 42,506 21,058 24,976 11,205 15,413 17,916
874 1,132
----------- ----------- ----------- ----------- ----------- ----------- ----------
8,647,952 284,402 4,817,528 17,449,457 2,700,446 53,593 41,060
----------- ----------- ----------- ----------- ----------- ----------- ----------
$113,775,054 $109,503,565 $35,968,046 $48,140,741 $12,583,127 $10,392,531 $8,800,278
=========== =========== =========== =========== =========== =========== ==========
$113,851,181 $109,971,895 $35,852,687 $48,844,577 $12,649,162 $10,388,041 $8,634,896
29,628 28,482 9,489 16,376 41,854 109,663 33,472
(120,732) (334,178) 233,706 (666,185) (60,748) (130,810) (23,999)
6,364 (60,897) (72,262)
165,973 (49,612)
14,977 (162,634) (127,836) (220,000) (20,464) 32,778 231,714
12,727 (12,562) (3,543)
3,844 49,950
16,368
----------- ----------- ----------- ----------- ----------- ----------- ----------
$113,775,054 $109,503,565 $35,968,046 $48,140,741 $12,583,127 $10,392,531 $8,800,278
=========== =========== =========== =========== =========== =========== ==========
11,334,193 11,065,278 3,789,871 4,983,342 1,274,484 1,038,321 861,759
=========== =========== =========== =========== =========== =========== ==========
$ 10.04 $ 9.90 $ 9.49 $ 9.66 $ 9.87 $ 10.01 $ 10.21
=========== =========== =========== =========== =========== =========== ==========
$121,459,441 $108,242,427 $38,291,925 $59,224,044 $14,828,892 $10,231,266 $8,433,508
<CAPTION>
INCOME RETURN
FUND FUND
========== ==========
<S> <C> <C>
$83,339,088 $10,729,100
115 38,644
24,281
8,075
39,000
226,869
10,102 33,697
26,374 147,700
----------- -----------
83,626,829 10,996,216
----------- -----------
1,990,234
30,295
135,841
28,585 18,060
3,410 3,870
6,912 24,641
----------- -----------
2,059,436 182,412
----------- -----------
$81,567,393 $10,813,804
=========== ===========
$79,080,648 $10,031,016
(19,910) 3,012
(405) (345,609)
1,107,960
2,507,060 11,600
5,825
----------- -----------
$81,567,393 $10,813,804
=========== ===========
7,224,929 937,363
=========== ===========
$ 11.29 $ 11.54
=========== ===========
$80,832,028 $10,717,500
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 17
<PAGE> 22
STATEMENTS OF OPERATIONS
Period ended April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHORT
GLOBAL GLOBAL INTERNATIONAL DURATION TAX-EXEMPT U.S.
SHORT BOND FIXED INCOME BOND TAX EXEMPT BOND TREASURY
FUND FUND FUND FUND FUND FUND
=========== =========== =========== =========== =========== ===========
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.................. $ 1,968,494 $19,317,161 $ 623,737 $686,862 $1,254,299 $788,201
Dividend income..................
---------- ----------- ---------- --------- ---------- ----------
Investment Revenues............ 1,968,494 19,317,161 623,737 686,862 1,254,299 788,201
---------- ----------- ---------- --------- ---------- ----------
EXPENSES:
Investment advisory fees (Note
5)............................. 108,425 925,302 28,639 51,279 77,154 37,135
Administration fees (Note 5)..... 21,685 185,060 5,728 9,615 14,466 7,958
Custodian fees................... 11,285 92,012 9,118 4,063 4,465 4,000
Accounting fees (Note 5)......... 11,845 114,443 6,229 8,611 11,551 7,613
Legal fees....................... 1,129 15,500 449 820 1,253 628
Audit fees....................... 8,809 20,071 11,943 8,184 8,322 8,007
Insurance........................ 2,332 28,534 835 1,440 2,195 1,182
Organization expenses (Note 4)... 259 9,027 980 1,462 2,664 761
Trustees' fees and expenses...... 2,712 35,641 1,036 1,835 2,728 1,294
Transfer agent fees (Note 5)..... 5,011 29,123 4,635 5,982 6,648 6,045
Registration and filing fees..... 22,196 21,983 3,226 7,989 7,399 6,091
Printing costs................... 740 16,341 480 739 1,215 611
Other expenses................... 1,905 20,816 1,147 3,571 4,984 1,867
Waived advisory fee (Note 5).....
Expense subsidy (Note 5)......... (35,683) (7,618) (33,474) (36,540) (23,506)
---------- ----------- ---------- --------- ---------- ----------
Net Expenses................... 162,650 1,513,853 66,827 72,116 108,504 59,686
---------- ----------- ---------- --------- ---------- ----------
Net Investment Income........ 1,805,844 17,803,308 556,910 614,746 1,145,795 728,515
---------- ----------- ---------- --------- ---------- ----------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Net realized gains (losses) from:
Investments.................... (1,580,812) (146,253) (67,698) 20,431 34,457 (51,586)
Foreign currency
transactions................. 3,790,489 21,383,195 21,597
Futures contracts.............. (145,483)
Options contracts.............. (863,801)
Change in net unrealized
appreciation (depreciation)
from:
Investments.................... (3,724,875) (29,289,677) (1,235,988) (65,144) (354,997) (291,633)
Translation of assets and
liabilities in foreign
currencies................... 2,160,759 4,815,651 108,179
Futures contracts.............. 173,407
Open options contracts
written......................
---------- ----------- ---------- --------- ---------- ----------
Net realized and unrealized
gains (losses)............. 645,561 (4,100,885) (1,173,910) (44,713) (292,616) (343,219)
---------- ----------- ---------- --------- ---------- ----------
CHANGE IN NET ASSETS RESULTING
FROM OPERATIONS................ $ 2,451,405 $13,702,423 $ (617,000) $570,033 $ 853,179 $385,296
========== =========== ========== ========= ========== ==========
- ------------
(a) The Fund commenced operations on December 9, 1996.
(b) The Fund commenced operations on November 1, 1996.
</TABLE>
See notes to financial statements.
18 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 23
<TABLE>
<CAPTION>
INVESTMENT
LIMITED SHORT INTERMEDIATE QUALITY TOTAL GLOBAL INTERNATIONAL
MATURITY BOND BOND BOND RETURN BALANCED EQUITY
FUND FUND FUND FUND FUND (A) FUND (A) FUND (A)
========== ========== ========== ========== ========== ========== ==========
<S> <C> <C> <C> <C> <C> <C> <C>
$2,294,291 $3,429,906 $1,056,395 $1,408,278 $ 210,067 $ 111,129 $ 14,819
28,709 50,067
---------- ---------- ---------- ---------- --------- --------- ---------
2,294,291 3,429,906 1,056,395 1,408,278 210,067 139,838 64,886
---------- ---------- ---------- ---------- --------- --------- ---------
110,787 154,929 45,788 62,052 8,939 15,865 17,222
23,740 33,199 9,812 13,297 1,916 1,904 1,722
4,905 5,526 4,070 4,429 4,661 8,758 8,924
15,581 22,960 9,610 10,965 3,575 3,506 3,513
1,681 2,725 914 1,351 161 154 155
8,335 8,691 8,050 8,648 7,793 9,419 9,420
3,338 5,132 1,704 1,996 288 264 267
880 598 678 655
4,052 6,473 2,062 2,443 339 337 342
7,684 8,055 6,658 5,905 4,521 4,519 4,519
18,522 19,532 8,855 13,963 12,839 12,507 12,546
1,579 2,305 893 1,070 124 115 115
3,540 6,216 3,417 3,537 1,126 1,882 1,886
(85,908) (54,399) (28,241) (29,921) (32,512) (37,695) (35,452)
---------- ---------- ---------- ---------- --------- --------- ---------
118,716 221,344 73,592 99,735 14,368 22,213 25,834
---------- ---------- ---------- ---------- --------- --------- ---------
2,175,575 3,208,562 982,803 1,308,543 195,699 117,625 39,052
---------- ---------- ---------- ---------- --------- --------- ---------
(57,689) 22,365 285,107 (231,303) (60,748) (130,810) (23,999)
6,364 (60,897) (72,262)
(49,612)
(99,247) (782,412) (578,190) (477,189) (20,464) 32,778 231,714
12,727 (12,562) (3,543)
3,844 49,950
16,368
---------- ---------- ---------- ---------- --------- --------- ---------
(156,936) (760,047) (293,083) (708,492) (107,889) (105,173) 131,910
---------- ---------- ---------- ---------- --------- --------- ---------
$2,018,639 $2,448,515 $ 689,720 $ 600,051 $ 87,810 $ 12,452 $170,962
========== ========== ========== ========== ========= ========= =========
<CAPTION>
GROWTH & MARKET
INCOME RETURN
FUND (B) FUND
========== ==========
<S> <C> <C>
$ 49,492 $215,519
287,369
---------- ----------
336,861 215,519
---------- ----------
75,606 10,029
9,073 2,149
3,829 3,666
6,324 4,141
592 158
8,948 7,683
871 241
1,345 7,730
1,022 375
6,883 5,418
20,898 318
465 1,727
2,421 902
(30,242)
(26,374) (28,418)
---------- ----------
81,661 16,119
---------- ----------
255,200 199,400
---------- ----------
(405) (7,166)
995,291
2,507,060 (23,398)
(219,950)
---------- ----------
2,506,655 744,777
---------- ----------
$2,761,855 $944,177
========== ==========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 19
<PAGE> 24
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GLOBAL SHORT BOND FUND
==============================
SIX MONTHS
ENDED PERIOD ENDED
APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (C)
============= ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................................................. $ 1,805,844 $ 130,720
Net realized gains (losses)........................................... 2,209,677 (8)
Change in net unrealized appreciation (depreciation).................. (1,564,116) 102,334
-------------- -----------
Change in net assets resulting from operations...................... 2,451,405 233,046
-------------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income................................................. (2,399,452) (104,999)
Net realized gains from investments...................................
In excess of net realized gains from investments......................
-------------- -----------
Change in net assets from distributions to shareholders............. (2,399,452) (104,999)
-------------- -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold........................................ 124,787,001 28,680,369
Reinvestment of distributions......................................... 2,232,171 104,999
Cost of fund shares redeemed.......................................... (2,107,167)
-------------- -----------
Change in net assets from capital transactions...................... 124,912,005 28,785,368
-------------- -----------
Total Change in Net Assets....................................... 124,963,958 28,913,415
NET ASSETS:
Beginning of period................................................... 28,913,415 0
-------------- -----------
End of period......................................................... $153,877,373 $28,913,415
============== ===========
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period............................. 2,871,151 0
-------------- -----------
Shares sold........................................................... 12,345,206 2,860,724
Shares issued in reinvestment of distributions........................ 220,802 10,427
Shares redeemed....................................................... (207,035) 0
-------------- -----------
Change in shares outstanding.......................................... 12,358,973 2,871,151
-------------- -----------
Outstanding shares at end of period................................... 15,230,124 2,871,151
============== ===========
</TABLE>
- ------------
(a) The Fund commenced operations on December 9, 1996.
(b) The Fund commenced operations on November 1, 1996.
(c) The Fund commenced operations on September 18, 1996.
(d) The Fund commenced operations on December 1, 1995.
See notes to financial statements.
20 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 25
<TABLE>
<CAPTION>
SHORT DURATION
GLOBAL FIXED INCOME FUND INTERNATIONAL BOND FUND TAX EXEMPT FUND
=================================== =================================== ===================================
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996
================ ================ ================ ================ ================ ================
<S> <C> <C> <C> <C> <C> <C>
$ 17,803,308 $ 36,295,168 $ 556,910 $ 1,048,759 $ 614,746 $ 1,063,571
20,373,141 476,129 (46,101) (956,437) 20,431 (43,242)
(24,474,026) 7,532,019 (1,127,809) 614,017 (65,144) (83,247)
--------------- --------------- -------------- -------------- --------------- --------------
13,702,423 44,303,316 (617,000) 706,339 570,033 937,082
--------------- --------------- -------------- -------------- --------------- --------------
(26,263,574) (44,142,948) (184,316) (51,924) (609,725) (1,063,018)
(126,510) (23,827) (32,675)
(110,019)
--------------- --------------- -------------- -------------- --------------- --------------
(26,263,574) (44,142,948) (310,826) (185,770) (609,725) (1,095,693)
--------------- --------------- -------------- -------------- --------------- --------------
79,368,229 230,552,397 4,986,878 4,234,969 9,651,839 28,660,093
23,076,972 40,665,055 289,719 180,026 470,791 826,992
(143,538,785) (160,254,143) (281,510) (5,765,447) (13,998,338) (9,011,463)
--------------- --------------- -------------- -------------- --------------- --------------
(41,093,584) 110,963,309 4,995,087 (1,350,452) (3,875,708) 20,475,622
--------------- --------------- -------------- -------------- --------------- --------------
(53,654,735) 111,123,677 4,067,261 (829,883) (3,915,400) 20,317,011
651,164,578 540,040,901 18,364,404 19,194,287 36,335,629 16,018,618
--------------- --------------- -------------- -------------- --------------- --------------
$ 597,509,843 $ 651,164,578 $ 22,431,665 $ 18,364,404 $ 32,420,229 $ 36,335,629
=============== =============== ============== ============== =============== ==============
62,918,935 52,327,237 1,766,919 1,912,673 3,630,620 1,589,820
--------------- --------------- -------------- -------------- --------------- --------------
7,744,694 22,249,887 500,834 421,938 965,018 2,854,221
2,249,818 4,006,005 27,887 17,707 47,000 82,428
(13,992,499) (15,664,194) (27,147) (585,399) (1,399,775) (895,849)
--------------- --------------- -------------- -------------- --------------- --------------
(3,997,987) 10,591,698 501,574 (145,754) (387,757) 2,040,800
--------------- --------------- -------------- -------------- --------------- --------------
58,920,948 62,918,935 2,268,493 1,766,919 3,242,863 3,630,620
=============== =============== ============== ============== =============== ==============
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 21
<PAGE> 26
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
TAX EXEMPT BOND FUND
====================================
SIX MONTHS
ENDED
APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996
================ ================
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income............................................ $ 1,145,795 $ 2,353,994
Net realized gains (losses)...................................... (111,026) (167,524)
Change in net unrealized appreciation (depreciation)............. (181,590) (707,043)
-------------- --------------
Change in net assets resulting from operations................. 853,179 1,479,427
-------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income............................................ (1,139,330) (2,352,923)
Net realized gains from investments..............................
In excess of net realized gains from investments.................
-------------- --------------
Change in net assets from distributions to shareholders........ (1,139,330) (2,352,923)
-------------- --------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold................................... 5,283,261 19,067,316
Reinvestment of distributions.................................... 940,975 1,985,629
Cost of fund shares redeemed..................................... (7,435,549) (10,369,014)
-------------- --------------
Change in net assets from capital transactions................. (1,211,313) 10,683,931
-------------- --------------
Total Change in Net Assets.................................. (1,497,464) 9,810,435
NET ASSETS:
Beginning of period.............................................. 49,862,103 40,051,668
-------------- --------------
End of period.................................................... $ 48,364,639 $ 49,862,103
============== ==============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period........................ 5,266,366 4,177,567
-------------- --------------
Shares sold...................................................... 556,508 1,986,272
Shares issued in reinvestment of distributions................... 99,137 208,658
Shares redeemed.................................................. (782,999) (1,106,131)
-------------- --------------
Change in shares outstanding..................................... (127,354) 1,088,799
-------------- --------------
Outstanding shares at end of period.............................. 5,139,012 5,266,366
============== ==============
</TABLE>
- ------------
(a) The Fund commenced operations on December 9, 1996.
(b) The Fund commenced operations on November 1, 1996.
(c) The Fund commenced operations on September 18, 1996.
(d) The Fund commenced operations on December 1, 1995.
See notes to financial statements.
22 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 27
<TABLE>
<CAPTION>
U.S. TREASURY FUND LIMITED MATURITY FUND SHORT BOND FUND
=================================== =================================== ===================================
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996
================ ================ ================ ================ ================ ================
<S> <C> <C> <C> <C> <C> <C>
$ 728,515 $ 992,553 $ 2,175,575 $ 2,049,447 $ 3,208,562 $ 3,057,159
(51,586) (130,766) (57,689) (60,491) 22,365 (353,688)
(291,633) (94,523) (99,247) 53,290 (782,412) 439,764
--------------- --------------- --------------- --------------- --------------- ---------------
385,296 767,264 2,018,639 2,042,246 2,448,515 3,143,235
--------------- --------------- --------------- --------------- --------------- ---------------
(729,339) (988,707) (2,158,775) (2,041,488) (3,202,577) (3,039,378)
(37,939) (16,883)
--------------- --------------- --------------- --------------- --------------- ---------------
(729,339) (1,026,646) (2,158,775) (2,041,488) (3,202,577) (3,056,261)
--------------- --------------- --------------- --------------- --------------- ---------------
11,285,075 21,850,747 119,464,960 111,950,760 46,580,699 95,063,381
378,269 821,001 2,158,459 2,027,495 4,143,522 2,857,489
(11,909,303) (11,192,992) (58,479,036) (81,622,509) (38,432,836) (19,198,388)
--------------- --------------- --------------- --------------- --------------- ---------------
(245,959) 11,478,756 63,144,383 32,355,746 12,291,385 78,722,482
--------------- --------------- --------------- --------------- --------------- ---------------
(590,002) 11,219,374 63,004,247 32,356,504 11,537,323 78,809,456
22,113,642 10,894,268 50,770,807 18,414,303 97,966,242 19,156,786
--------------- --------------- --------------- --------------- --------------- ---------------
$ 21,523,640 $ 22,113,642 $113,775,054 $ 50,770,807 $109,503,565 $ 97,966,242
=============== =============== =============== =============== =============== ===============
2,098,931 1,026,380 5,047,881 1,830,050 9,829,447 1,907,327
--------------- --------------- --------------- --------------- --------------- ---------------
1,066,679 2,071,280 11,882,862 11,140,482 4,814,349 9,562,749
36,100 78,390 214,919 201,954 287,125 287,635
(1,132,257) (1,077,119) (5,811,469) (8,124,605) (3,865,643) (1,928,264)
--------------- --------------- --------------- --------------- --------------- ---------------
(29,478) 1,072,551 6,286,312 3,217,831 1,235,831 7,922,120
--------------- --------------- --------------- --------------- --------------- ---------------
2,069,453 2,098,931 11,334,193 5,047,881 11,065,278 9,829,447
=============== =============== =============== =============== =============== ===============
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 23
<PAGE> 28
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
INTERMEDIATE INVESTMENT QUALITY
BOND FUND BOND FUND
================================== ==================================
SIX MONTHS SIX MONTHS
ENDED ENDED
APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996
================ ================ ================ ================
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................... $ 982,803 $ 2,345,073 $ 1,308,543 $ 1,904,675
Net realized gains (losses)............. 285,107 (52,914) (231,303) (268,919)
Change in net unrealized appreciation
(depreciation)........................ (578,190) (479,438) (477,189) (342,583)
--------------- -------------- --------------- --------------
Change in net assets resulting from
operations......................... 689,720 1,812,721 600,051 1,293,173
--------------- -------------- --------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income................... (985,273) (2,340,379) (1,359,349) (1,843,583)
Net realized gains from investments..... (255,413) (13,424)
In excess of net realized gains from
investments...........................
--------------- -------------- --------------- --------------
Change in net assets from distributions
to shareholders....................... (985,273) (2,595,792) (1,359,349) (1,857,007)
--------------- -------------- --------------- --------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold.......... 11,839,850 32,977,552 27,658,426 25,161,170
Reinvestment of distributions........... 664,823 1,610,996 1,167,398 1,728,421
Cost of fund shares redeemed............ (29,007,803) (15,429,671) (12,229,522) (19,843,931)
--------------- -------------- --------------- --------------
Change in net assets from capital
transactions....................... (16,503,130) 19,158,877 16,596,302 7,045,660
--------------- -------------- --------------- --------------
Total Change in Net Assets......... (16,798,683) 18,375,806 15,837,004 6,481,826
NET ASSETS:
Beginning of period..................... 52,766,729 34,390,923 32,303,737 25,821,911
--------------- -------------- --------------- --------------
End of period........................... $ 35,968,046 $ 52,766,729 $ 48,140,741 $ 32,303,737
=============== ============== =============== ==============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of
period................................ 5,497,972 3,490,147 3,294,124 2,591,405
--------------- -------------- --------------- --------------
Shares sold............................. 1,240,873 3,433,330 2,830,738 2,556,961
Shares issued in reinvestment of
distributions......................... 69,722 166,498 120,255 177,262
Shares redeemed......................... (3,018,696) (1,592,003) (1,261,775) (2,031,504)
--------------- -------------- --------------- --------------
Change in shares outstanding............ (1,708,101) 2,007,825 1,689,218 702,719
--------------- -------------- --------------- --------------
Outstanding shares at end of period..... 3,789,871 5,497,972 4,983,342 3,294,124
=============== ============== =============== ==============
</TABLE>
- ------------
(a) The Fund commenced operations on December 9, 1996.
(b) The Fund commenced operations on November 1, 1996.
(c) The Fund commenced operations on September 18, 1996.
(d) The Fund commenced operations on December 1, 1995.
See notes to financial statements.
24 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 29
<TABLE>
<CAPTION>
TOTAL RETURN GLOBAL BALANCED INTERNATIONAL GROWTH & INCOME
FUND FUND EQUITY FUND FUND MARKET RETURN FUND
================ ================= ================ ================ ===================================
PERIOD PERIOD PERIOD SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED ENDED PERIOD ENDED
APRIL 30, 1997 APRIL 30, 1997 APRIL 30, 1997 APRIL 30, 1997 APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) (A) (UNAUDITED) (A) (UNAUDITED) (A) (UNAUDITED) (B) (UNAUDITED) 1996 (D)
================ ================= ================ ================ ================ ================
<S> <C> <C> <C> <C> <C> <C>
$ 195,699 $ 117,625 $ 39,052 $ 255,200 $ 199,400 $ 171,576
(103,996) (191,707) (96,261) (405) 988,125 16,524
(3,893) 86,534 228,171 2,507,060 (243,348) 260,773
-------------- --------------- -------------- -------------- -------------- --------------
87,810 12,452 170,962 2,761,855 944,177 448,873
-------------- --------------- -------------- -------------- -------------- --------------
(153,845) (7,962) (5,580) (275,110) (197,925) (170,039)
(242,298)
-------------- --------------- -------------- -------------- -------------- --------------
(153,845) (7,962) (5,580) (275,110) (440,223) (170,039)
-------------- --------------- -------------- -------------- -------------- --------------
12,556,101 10,404,285 8,645,968 82,033,186 4,806,831 5,468,086
112,710 5,546 3,938 257,719 391,805 141,367
(19,649) (21,790) (15,010) (3,210,257) (677,988) (99,085)
-------------- --------------- -------------- -------------- -------------- --------------
12,649,162 10,388,041 8,634,896 79,080,648 4,520,648 5,510,368
-------------- --------------- -------------- -------------- -------------- --------------
12,583,127 10,392,531 8,800,278 81,567,393 5,024,602 5,789,202
0 0 0 0 5,789,202 0
-------------- --------------- -------------- -------------- -------------- --------------
$ 12,583,127 $10,392,531 $8,800,278 $ 81,567,393 $ 10,813,804 $5,789,202
============== =============== ============== ============== ============== ==============
0 0 0 0 532,943 0
-------------- --------------- -------------- -------------- -------------- --------------
1,265,082 1,039,982 862,835 7,498,965 429,240 528,431
11,407 554 393 23,444 34,790 13,760
(2,005) (2,215) (1,469) (297,480) (59,610) (9,248)
-------------- --------------- -------------- -------------- -------------- --------------
1,274,484 1,038,321 861,759 7,224,929 404,420 532,943
-------------- --------------- -------------- -------------- -------------- --------------
1,274,484 1,038,321 861,759 7,224,929 937,363 532,943
============== =============== ============== ============== ============== ==============
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 25
<PAGE> 30
GLOBAL SHORT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<S> <C> <C>
AUSTRALIA (AUSTRALIAN DOLLAR) (18.9%)
Government Bonds (18.9%)
4,950,000 Queensland Treasury Note, 8.00%, 7/14/99........ $ 3,978,553
8,550,000 Treasury Corporation of Victoria, 10.25%,
9/15/99......................................... 7,201,418
4,200,000 Government Bond, 13.00%, 7/15/00................ 3,853,912
7,400,000 Australian Treasury Corporation, 12.00%,
8/1/01.......................................... 6,775,769
9,100,000 New South Wales Treasury Note, 8.00%, 12/1/01... 7,292,775
--------------
Total Australia (Cost -- $29,080,702)............................... 29,102,427
--------------
GERMANY (GERMAN MARK) (23.0%)
Government Bonds (19.8%)
49,500,000 6.75%, 09/15/99................................. 30,508,607
U.S. Government Agencies (2.5%)
6,370,000 Federal National Mortgage Association, 6.00%,
8/23/00......................................... 3,867,553
Supranational Bonds (0.7%)
1,850,000 IBRD, 7.25%, 10/13/99........................... 1,149,518
--------------
Total Germany (Cost -- $36,972,840)................................. 35,525,678
--------------
GREAT BRITAIN (BRITISH POUND) (9.8%)
Government Bonds (4.6%)
4,000,000 Exchequer, 12.25%, 3/26/99...................... 7,103,208
Supranational Bonds (3.5%)
3,395,000 Abbey National Treasury, 6.00%, 8/10/99......... 5,366,380
Finance (1.7%)
840,000 KFW International Finance, 7.88%, 7/6/98........ 1,374,639
700,000 European Investment Bank, 8.75%, 12/7/00........ 1,185,731
--------------
2,560,370
--------------
Total Great Britain (Cost -- $14,998,367)........................... 15,029,958
--------------
SPAIN (SPANISH PESETA) (9.6%)
Government Bonds (9.6%)
1,850,000,000 12.25%, 3/25/00................................. 14,848,384
--------------
Total Spain (Cost -- $15,150,142)................................... 14,848,384
--------------
</TABLE>
See notes to financial statements.
26 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 31
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<S> <C> <C>
SWEDEN (SWEDISH KRONA) (13.7%)
Government Bonds (13.7%)
103,300,000 11.00%, 1/21/99................................. $ 14,445,692
46,300,000 10.25%, 5/5/00.................................. 6,655,363
--------------
Total Sweden (Cost -- $22,653,371).................................. 21,101,055
--------------
UNITED STATES (UNITED STATES DOLLAR) (21.1%)
U.S. Treasury Notes (20.6%)
12,650,000 5.13%, 3/31/98.................................. 12,566,257
4,700,000 6.13%, 5/15/98.................................. 4,706,533
2,300,000 5.88%, 8/15/98.................................. 2,293,675
6,200,000 5.88%, 10/31/98................................. 6,175,014
5,900,000 5.50%, 11/15/98................................. 5,843,360
--------------
Total U.S. Treasury Notes........................................... 31,584,839
--------------
Investment Companies (0.5%)
692,381 Dreyfus Treasury Cash Management................ 692,381
--------------
Total Investment Companies.......................................... 692,381
--------------
Total United States (Cost -- $32,294,203)........................... 32,277,220
--------------
TOTAL (COST -- $151,149,625) (A) (96.1%)............................ $ 147,884,722
==============
</TABLE>
- ------------
Percentages indicated are based on net assets of $153,877,373.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................. $ 169,251
Unrealized depreciation............................................. (3,434,154)
-----------
Net unrealized depreciation......................................... $(3,264,903)
===========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 27
<PAGE> 32
GLOBAL SHORT BOND FUND
FORWARD CURRENCY CONTRACTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT CONTRACT VALUE APPRECIATION DELIVERY
CURRENCY PRICE (U.S. DOLLARS) (DEPRECIATION) DATE
- ------------------------------------------- -------------- -------------- -------------- --------
<S> <C> <C> <C> <C>
ASSETS:
Australian Dollar (sell)................... 0.787150 $ (18,679,912) $ 211,687 06/24/97
Australian Dollar (sell)................... 0.786300 (10,896,616) 111,584 06/24/97
German Mark (sell)......................... 1.695780 (22,322,723) 380,694 06/13/97
German Mark (sell)......................... 1.660500 (14,553,256) 562,673 06/13/97
Spanish Peseta (sell)...................... 145.507000 (14,377,115) 55,181 05/21/97
British Pound (sell)....................... 1.646300 (6,318,624) 101,946 05/12/97
Swedish Krona (sell)....................... 7.764180 (3,187,190) 71,498 06/17/97
Swedish Krona (sell)....................... 7.648600 (18,165,439) 465,421 06/27/97
------------- -------------
$(108,500,875) $1,960,684
============= =============
LIABILITIES:
British Pound (sell)....................... 1.610200 $ (8,748,864) $ (53,784) 05/12/97
------------- -------------
$ (8,748,864) $ (53,784)
============= =============
</TABLE>
See notes to financial statements.
28 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 33
GLOBAL FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<S> <C> <C>
AUSTRALIA (AUSTRALIAN DOLLAR) (10.0%)
Government Bonds (10.0%)
32,430,000 9.50%, 5/15/03.................................. $ 27,808,996
35,725,000 10.00%, 10/15/07................................ 32,172,631
--------------
Total Australia (Cost -- $59,443,204)............................... 59,981,627
--------------
GERMANY (GERMAN MARK) (9.0%)
Government Bonds (9.0%)
20,000,000 Treuhandanstalt, 6.25%, 3/4/04.................. 12,136,091
66,600,000 Treuhandanstalt, 6.75%, 5/13/04................. 41,436,495
--------------
Total Germany (Cost -- $59,582,347)................................. 53,572,586
--------------
GREAT BRITAIN (BRITISH POUND) (14.6%)
Government Bonds (14.6%)
17,100,000 UK Gilt, 10.00%, 2/26/01........................ 30,331,541
34,900,000 UK Gilt, 7.25%, 12/7/06......................... 56,862,470
--------------
Total Great Britain (Cost -- $88,761,896)........................... 87,194,011
--------------
SPAIN (SPANISH PESETA) (4.6%)
Government Bonds (4.6%)
3,425,000,000 10.30%, 6/15/02................................. 27,679,515
--------------
Total Spain (Cost -- $28,371,416)................................... 27,679,515
--------------
SWEDEN (SWEDISH KRONA) (9.1%)
Government Bonds (9.1%)
82,700,000 11.00%, 1/21/99................................. 11,564,944
137,400,000 10.25%, 5/5/00.................................. 19,750,472
192,700,000 6.00%, 2/9/05................................... 23,158,305
--------------
Total Sweden (Cost -- $59,681,441).................................. 54,473,721
--------------
UNITED STATES (UNITED STATES DOLLAR) (49.9%)
U.S. Treasury Notes (49.1%)
20,000,000 5.13%, 3/31/98.................................. 19,867,600
125,200,000 5.88%, 2/15/00.................................. 123,467,232
19,000,000 5.88%, 6/30/00.................................. 18,694,860
32,000,000 6.25%, 8/31/00.................................. 31,797,440
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 29
<PAGE> 34
GLOBAL FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<S> <C> <C>
22,000,000 7.88%, 8/15/01.................................. $ 23,082,180
41,200,000 7.50%, 5/15/02.................................. 42,847,176
35,000,000 5.75%, 8/15/03.................................. 33,428,150
--------------
Total U.S. Treasury Notes........................................... 293,184,638
--------------
UNITED STATES (CONTINUED)
Investment Companies (0.8%)
4,902,471 Dreyfus Treasury Cash Management................ 4,902,471
--------------
Total Investment Companies.......................................... 4,902,471
--------------
Total United States (Cost -- $295,992,649).......................... 298,087,109
--------------
TOTAL (COST -- $591,832,953) (A) (97.2%)............................ $ 580,988,569
==============
</TABLE>
- ------------
Percentages indicated are based on net assets of $597,509,843.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................ $ 3,061,774
Unrealized depreciation............................................ (13,906,158)
------------
Net unrealized depreciation........................................ $(10,844,384)
============
</TABLE>
See notes to financial statements.
30 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 35
GLOBAL FIXED INCOME FUND
FORWARD CURRENCY CONTRACTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT CONTRACT VALUE APPRECIATION DELIVERY
CURRENCY PRICE (U.S. DOLLARS) (DEPRECIATION) DATE
- ---------------------------------------------- ---------- -------------- -------------- --------
<S> <C> <C> <C> <C>
ASSETS:
Australian Dollar (sell)...................... 0.787150 $ (59,153,056) $ 670,344 06/24/97
German Mark (sell)............................ 1.695780 (56,241,665) 959,151 06/13/97
Spanish Peseta (sell)......................... 145.507000 (28,754,230) 110,361..... 05/21/97
Swedish Krona (sell).......................... 7.671800 (36,333,967) 815,073 06/17/97
Swedish Krona (sell).......................... 7.648600 (17,961,476) 460,195 06/27/97
----------- ---------
$(198,444,394) $3,015,124
=========== =========
LIABILITIES:
British Pound (sell).......................... 1.610200 $ (90,728,960) $ (557,760) 05/12/97
----------- ---------
$ (90,728,960) $ (557,760)
=========== =========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 31
<PAGE> 36
INTERNATIONAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<C> <S> <C>
AUSTRALIA (AUSTRALIAN DOLLAR) (20.2%)
Government Bonds (20.2%)
1,250,000 Queensland Treasury Corp., 8.00%, 8/14/01....... $ 1,003,708
1,200,000 New South Wales Treasury Note, 8.00%, 12/1/01... 961,685
950,000 So. Australian Govt Financial Auth., 10.00%,
1/15/03........................................ 823,838
1,000,000 Government Bond, 9.50%, 5/15/03................. 857,508
1,100,000 Western Australia Treasury Corp, 8.00%,
7/15/03........................................ 873,636
--------------
Total Australia (Cost -- $4,504,331)................................ 4,520,375
--------------
DENMARK (DANISH KRONE) (8.6%)
Government Bonds (8.6%)
12,200,000 7.00%, 12/15/04................................. 1,934,169
--------------
Total Denmark (Cost -- $2,099,547).................................. 1,934,169
--------------
GERMANY (GERMAN MARK) (18.9%)
Government Bonds (13.5%)
2,575,000 Treuhandanstalt, 6.75%, 5/13/04................. 1,602,087
1,200,000 Austria, 6.00%, 2/1/06.......................... 704,945
1,250,000 Gemeinsame Bundeslaender, 6.25%, 8/21/06........ 741,754
--------------
3,048,786
--------------
U.S. Government Agencies (2.4%)
870,000 Federal National Mortgage Assn., 6.00%,
8/23/00........................................ 528,221
--------------
Finance (3.0%)
1,125,000 KFW International Finance, 6.25%, 10/15/03...... 681,160
--------------
Total Germany (Cost -- $4,655,805).................................. 4,258,167
--------------
GREAT BRITAIN (BRITISH POUND) (24.1%)
Government Bonds (13.0%)
525,000 UK Gilt, 10.00%, 2/26/01........................ 931,232
1,100,000 UK Gilt, 9.75%, 8/27/02......................... 1,977,918
--------------
2,909,150
--------------
</TABLE>
See notes to financial statements.
32 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 37
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<C> <S> <C>
GREAT BRITAIN (CONTINUED)
Finance (11.1%)
500,000 Abbey National Treasury, 6.00%, 8/10/99......... $ 790,336
475,000 General Electric Capital Corporation, 8.00%,
12/29/00....................................... 788,499
600,000 Federal Home Loan Bank-Global, 6.88%, 6/7/02.... 955,022
--------------
2,533,857
--------------
Total Great Britain (Cost -- $5,341,828)............................ 5,443,007
--------------
ITALY (ITALIAN LIRA) (3.6%)
Government Bonds (3.6%)
580,000,000 9.50%, 4/15/99.................................. 355,406
700,000,000 BTPS, 9.00%, 10/1/03............................ 440,719
--------------
Total Italy (Cost -- $840,986)...................................... 796,125
--------------
NETHERLANDS (DUTCH GUILDER) (2.3%)
Government Bonds (2.3%)
875,000 7.75%, 3/1/05................................... 513,221
--------------
Total Netherlands (Cost -- $577,480)................................ 513,221
--------------
SPAIN (SPANISH PESETA) (3.8%)
Government Bonds (3.8%)
105,000,000 10.30%, 6/15/02................................. 848,569
--------------
Total Spain (Cost -- $869,781)...................................... 848,569
--------------
SWEDEN (SWEDISH KRONA) (9.4%)
Government Bonds (9.4%)
12,600,000 6.00%, 2/9/05................................... 1,514,243
4,000,000 10.25%, 5/5/00.................................. 574,977
--------------
Total Sweden (Cost -- $2,213,886)................................... 2,089,220
--------------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 33
<PAGE> 38
INTERNATIONAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<C> <S> <C>
UNITED STATES (UNITED STATES DOLLAR) (6.2%)
U.S. Treasury Notes (2.2%)
250,000 5.50%, 11/15/98................................. $ 247,600
250,000 5.88%, 2/15/00.................................. 246,540
--------------
494,140
--------------
Investment Companies (4.0%)
887,388 Dreyfus Treasury Cash Management................ 887,388
--------------
Total Investment Companies.......................................... 887,388
--------------
Total United States (Cost -- $1,381,588)............................ 1,381,528
--------------
TOTAL (COST -- $22,485,232)(A) (97.1%).............................. $21,784,381
==============
</TABLE>
- ------------
Percentages indicated are based on net assets of $22,431,665.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 136,305
Unrealized depreciation............................................... (837,156)
---------
Net unrealized depreciation........................................... $(700,851)
=========
</TABLE>
See notes to financial statements.
34 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 39
INTERNATIONAL BOND FUND
FORWARD CURRENCY CONTRACTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT CONTRACT VALUE APPRECIATION DELIVERY
CURRENCY PRICE (U.S. DOLLARS) (DEPRECIATION) DATE
- --------------------------------------------- ----------- -------------- -------------- --------
<S> <C> <C> <C> <C>
ASSETS:
Australian Dollar (sell)..................... 0.787200 $ (4,436,479) $ 50,276 06/24/97
German Mark (sell)........................... 1.695780 (811,736) 13,844 06/13/97
Danish Krone (sell).......................... 6.339000 (1,517,357) 60,179 05/12/97
Danish Krone (sell).......................... 6.490000 (485,554) 7,512 05/12/97
Italian Lira (sell).......................... 1,702.900 (877,798) 3,052 05/21/97
Dutch Guilder (sell)......................... 1.909000 (518,430) 5,404 06/13/97
Swedish Krona (sell)......................... 7.671800 (1,529,851) 34,319 06/17/97
Swedish Krona (sell)......................... 7.648600 (522,655) 13,391 06/27/97
------------- ------------
$(10,699,860) $ 187,977
============= ============
LIABILITIES:
British Pound (sell)......................... 1.610200 $ (1,012,600) $ (6,225) 05/12/97
British Pound (sell)......................... 1.597000 (405,040) (5,790) 05/12/97
British Pound (sell)......................... 1.590000 (1,775,911) (26,911) 06/16/97
Canadian Dollar (buy)........................ 1.387750 (2,719,037) (19,209) 05/07/97
German Mark (buy)............................ 1.683920 869,716 (21,062) 06/13/97
Japanese Yen (buy)........................... 122.410000 2,664,963 (71,742) 05/20/97
------------- ------------
$ (2,377,909) $ (150,939)
============= ============
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 35
<PAGE> 40
SHORT DURATION TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
GENERAL OBLIGATIONS (30.5%)
Limited (12.6%)
1,000,000 Lewisville, Texas Independent School District,
6.25%,
8/15/02.......................................... $ 1,066,250
2,000,000 Massachusetts State, 4.75%, 9/1/98................ 2,020,000
1,000,000 Virginia State, 5.50%, 12/1/98.................... 1,021,090
-----------
4,107,340
-----------
Unlimited (17.9%)
1,000,000 Illinois State, 6.38%, 8/1/00..................... 1,047,500
2,000,000 Milwaukee County, Wisconsin, 5.13%, 12/1/97....... 2,014,800
700,000 Minnesota State, 6.80%, 8/1/00, Pre-refunded
8/1/98........................................... 722,750
1,000,000 New York City Series G, 5.60%, 2/1/02............. 1,018,750
1,000,000 Washington Suburban Sanitation District, MD,
5.00%,
6/1/97........................................... 1,000,900
-----------
5,804,700
-----------
Total General Obligations............................................. 9,912,040
-----------
REVENUE (59.7%)
Airport (6.2%)
1,000,000 Denver CO City & County Airport, 4.80%,
11/15/00......................................... 1,000,000
1,000,000 Washoe County, NV, Airport Authority, 5.25%,
7/1/00........................................... 1,007,500
-----------
2,007,500
-----------
Corrections (3.3%)
1,000,000 OH State Bldg Authority, 7.35%, 8/1/04,
Pre-refunded 8/1/99.............................. 1,080,000
-----------
Education (3.1%)
1,000,000 VA State Public School Authority Series C, 5.00%,
8/1/98........................................... 1,012,500
-----------
</TABLE>
See notes to financial statements.
36 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 41
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
REVENUE (CONTINUED):
Electric (12.9%)
700,000 Georgia Municipal Electric Authority, 4.50%,
1/1/98........................................... $ 702,653
1,000,000 Intermountain Power Agency Utah Power Supply,
8.63%, 7/1/21, Pre-refunded 7/1/97............... 1,027,160
1,000,000 Platte River Power Authority, 5.00%, 6/01/99...... 1,011,250
500,000 San Antonio Electric & Gas, 6.00%, 2/1/98......... 507,355
900,000 Tacoma, Washington Electric System, 4.90%,
1/1/98........................................... 905,724
-----------
4,154,142
-----------
Health (4.6%)
500,000 Michigan State Hospital Finance Auth., 4.10%,
10/15/97......................................... 500,195
1,000,000 Missouri State Health & Educ. Facilities, 4.25%,
12/1/99.......................................... 996,250
-----------
1,496,445
-----------
Housing (3.4%)
450,000 Alaska State Housing Finance Corporation, 4.35%,
12/1/98.......................................... 451,688
655,000 Maryland State Community Development, 4.45%,
4/1/99........................................... 655,000
-----------
1,106,688
-----------
Lease (1.4%)
450,000 Phoenix, AZ Civic Plaza Building Corporate, 4.70%,
7/1/98........................................... 453,938
-----------
Medical (3.2%)
1,000,000 New York State Dormitory, 6.00%, 2/15/03.......... 1,036,250
-----------
Sales Tax (6.2%)
2,000,000 Municipal Assistance Corp. for City of NY, 4.00%,
7/1/97........................................... 2,000,140
-----------
Sewer (4.5%)
1,000,000 Portland, Oregon Sewer, 7.00%, 6/1/97............. 1,002,180
435,000 Portland, Oregon Sewer, 6.50%, 6/1/00............. 459,469
-----------
1,461,649
-----------
Transportation (5.3%)
1,000,000 Delaware Transportation Auth., 5.80%, 7/1/99...... 1,027,500
675,000 New Jersey State Turnpike Auth., 6.00%, 1/1/98.... 683,168
-----------
1,710,668
-----------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 37
<PAGE> 42
SHORT DURATION TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
REVENUE (CONTINUED):
Water (5.6%)
755,000 Ohio State Water Development Auth., 4.95%,
12/1/98.......................................... $ 763,494
1,000,000 Orlando, Florida Utilities Commission, 5.70%,
10/1/04.......................................... 1,043,750
-----------
1,807,244
-----------
Total Revenue......................................................... 19,327,164
-----------
VARIABLE RATE DEMAND NOTES (6.8%)
900,000 Brazos River Auth. Texas Pollution Control, 5.10%
(a),
6/1/31........................................... 900,000
900,000 Guadalupe-Blanco River Authority Texas Pollution
Control Central Power & Light Project, 5.05% (a),
11/1/16.......................................... 900,000
400,000 Lincoln County Wyoming Pollution Control Exxon
Project Series B, 4.15% (a), 7/1/18.............. 400,000
-----------
Total Variable Rate Demand Notes...................................... 2,200,000
-----------
INVESTMENT COMPANIES (1.6%)
530,608 Dreyfus Tax Exempt Cash Management Fund........... 530,608
-----------
Total Investment Companies............................................ 530,608
-----------
TOTAL (COST -- $31,982,405) (B) (98.6%)............................... $31,969,812
===========
</TABLE>
- ------------
AMBAC: AMBAC Indemnity Corporation
FGIC: Financial Guaranty Insurance Company
MBIA: MBIA Insurance Corp.
PSF: Permanent School Fund
Percentages indicated are based on net assets of $32,420,229.
(a) This is a variable rate investment and the rate reflected on the Schedule of
Portfolio Investments is the rate in effect at April 30, 1997.
(b) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................................................ $ 65,631
Unrealized depreciation................................................ (78,224)
--------
Net unrealized depreciation............................................ $(12,593)
========
</TABLE>
See notes to financial statements.
38 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 43
TAX EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
GENERAL OBLIGATIONS (34.2%)
Limited (7.6%)
700,000 Clark County Nevada School District, 5.88%,
6/15/13.......................................... $ 708,750
1,100,000 Dallas, Texas, 5.90%, 2/15/03..................... 1,159,125
765,000 Du Page County, Illinois, Stormwater, 5.60%,
1/1/21........................................... 743,963
1,000,000 Port of Seattle, Washington, 5.25%, 5/1/03........ 1,010,000
-----------
3,621,838
-----------
Unlimited (26.6%)
1,500,000 Charleston County, South Carolina, 5.75%,
6/1/08........................................... 1,569,375
1,200,000 Chicago Metropolitan Water Reclamation Dist.,
6.30%, 12/1/09 (a)............................... 1,284,000
1,000,000 Fort Worth, TX, Independent School Dist., 0.00%,
2/15/06.......................................... 631,250
1,000,000 Honolulu, Hawaii, City & County, 5.00%, 10/1/02... 1,003,750
1,000,000 Mississippi State, 5.80%, 6/1/09.................. 1,031,250
1,250,000 Montgomery County, Maryland, 6.88%, 10/1/99....... 1,321,875
1,000,000 New York, New York, 6.20%, 8/1/07................. 1,027,500
1,000,000 Pennsylvania State, 5.20%, 6/15/04................ 1,010,000
1,000,000 Texas Public Finance Authority, 5.38%, 10/1/03.... 1,026,250
1,000,000 Texas State, 5.00%, 8/1/21........................ 895,000
1,000,000 Virginia State, 6.10%, 6/1/06..................... 1,071,250
1,000,000 Washington State, 5.25%, 9/1/05................... 1,012,500
-----------
12,884,000
-----------
Total General Obligations............................................. 16,505,838
-----------
REVENUE (58.0%)
Airport (10.4%)
2,800,000 Los Angeles, California Harbor Dept., 5.00%,
8/1/01........................................... 2,824,500
1,200,000 Los Angeles, CA, City Dept of Airports, 5.50%,
5/15/07.......................................... 1,213,500
1,010,000 San Francisco, CA, City & County Airports
Commission
International Airport, 5.00%, 5/1/07............. 992,325
-----------
5,030,325
-----------
Education (9.5%)
1,000,000 Avon, IN Community School Bldg Corp, 5.25%,
1/1/22........................................... 925,000
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 39
<PAGE> 44
TAX EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
REVENUE (CONTINUED):
1,250,000 New York State Dorm Authority, 6.13%, 7/1/07...... $ 1,337,500
1,100,000 PA State, Higher Ed. Facilities Auth., 5.85%,
9/1/13........................................... 1,116,500
1,160,000 University of Texas Permanent University Fund,
5.90%, 7/1/02.................................... 1,212,200
-----------
4,591,200
-----------
Electric (6.0%)
300,000 City of Knoxville, Tennessee Gas System, 4.85%,
3/1/06........................................... 292,125
2,000,000 Georgia Municipal Electric Authority, 5.55%,
1/1/07 (a)....................................... 2,050,000
575,000 IN Municipal Power Agency Power Supply, 5.13%,
1/1/01........................................... 581,469
-----------
2,923,594
-----------
Highway (2.0%)
900,000 Arapahoe County, CO, Capital Improvement, 6.90%,
8/31/15.......................................... 955,125
-----------
Housing (6.8%)
500,000 California Housing Finance Authority, 5.20%,
8/1/26........................................... 499,375
1,000,000 Idaho Housing and Finance Association, 5.20%,
7/1/27........................................... 993,750
3,000,000 Perris, California Single Family, 0.00%, 6/1/23... 607,800
1,000,000 VA State Housing Development Authority, 6.30%,
7/1/11........................................... 1,026,250
170,000 WI Housing & Economic Development, 5.30%,
11/1/05.......................................... 168,725
-----------
3,295,900
-----------
Sales Tax (5.3%)
5,000,000 Metropolitan Pier & Exposition Authority Illinois,
McCormick Place, 0.00%, 6/15/11.................. 2,550,000
-----------
Sewer (1.1%)
500,000 Portland, Oregon Sewer, 6.50%, 6/1/00............. 528,125
-----------
Transportation (7.4%)
1,000,000 MA Bay Transportation Authority, 5.60%, 3/1/08.... 1,027,500
1,465,000 Port Authority of New York & New Jersey, 5.80%,
12/1/12.......................................... 1,486,975
1,000,000 Puerto Rico Highway Auth., 6.75%, 7/1/05,
Pre-refunded, 7/1/00............................. 1,081,250
-----------
3,595,725
-----------
</TABLE>
See notes to financial statements.
40 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 45
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
Water (9.5%)
1,400,000 California State Dept of Water Resources, 6.00%,
12/1/06.......................................... $ 1,503,250
2,000,000 Cleveland Ohio Waterworks, 5.50%, 1/1/08 (a)...... 2,050,000
1,000,000 Ohio State Water Department Authority, 5.70%,
6/1/09........................................... 1,031,250
-----------
4,584,500
-----------
Total Revenue......................................................... 28,054,494
-----------
SPECIAL TAX (2.2%)
1,000,000 Connecticut State Special Tax Obligation Revenue,
6.25%, 10/1/09, Pre-refunded 10/1/01............. 1,075,000
-----------
Total Special Tax..................................................... 1,075,000
-----------
VARIABLE RATE DEMAND NOTES (3.7%)
500,000 Anchorage Alaska Electric Utility, 4.50% (b),
12/01/26......................................... 500,000
1,300,000 East Baton Rouge Parish, Louisiana, 4.05% (b),
11/1/19.......................................... 1,300,000
-----------
Total Variable Rate Demand Notes...................................... 1,800,000
-----------
INVESTMENT COMPANIES (0.6%)
289,924 Dreyfus Tax Exempt Cash Management Fund........... 289,924
-----------
Total Investment Companies............................................ 289,924
-----------
TOTAL (COST -- $47,402,771) (C) (98.7%)............................... $47,725,256
===========
</TABLE>
- ------------
AMBAC: AMBAC Indemnity Corporation
FGIC: Financial Guaranty Insurance Company
MBIA: MBIA Insurance Corp.
PSF: Permanent School Fund
Percentages indicated are based on net assets of $48,364,639.
(a) A portion of the security is held by the custodian in a segregated account
as collateral for open futures contracts.
At April 30, 1997, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Number of Expiration Current Unrealized
Contracts Contract Type Date Market Value Depreciation
- --------- --------------------------------- ---------- ------------ ------------
<C> <S> <C> <C> <C>
39 30 Year U.S. Treasury Bond Future 06/30/97 ($4,261,969) $4,969
</TABLE>
(b) This is a variable rate investment and the rate reflected on the Schedule of
Portfolio Investments is the rate in effect at April 30, 1997.
See notes to financial statements.
SEMI-ANNUAL REPORT 41
<PAGE> 46
TAX EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
(c) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 749,988
Unrealized depreciation............................................... (427,503)
---------
Net unrealized appreciation........................................... $ 322,485
=========
</TABLE>
See notes to financial statements.
42 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 47
U.S. TREASURY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
U.S. TREASURY NOTES (90.7%)
7,400,000 5.88%, 8/15/98.................................... $ 7,379,650
5,500,000 5.88%, 10/31/98................................... 5,477,835
1,000,000 6.38%, 5/15/99.................................... 1,001,360
1,000,000 7.75%, 2/15/01.................................... 1,041,220
2,600,000 5.75%, 8/15/03.................................... 2,483,234
2,000,000 7.88%, 11/15/04................................... 2,135,940
-----------
Total U.S. Treasury Notes............................................. 19,519,239
-----------
U.S. TREASURY STRIPS (6.8%)
1,200,000 0.00%, 8/15/99.................................... 1,041,156
550,000 0.00%, 8/15/01.................................... 417,681
-----------
Total U.S. Treasury Strips............................................ 1,458,837
-----------
INVESTMENT COMPANIES (1.4%)
307,286 Dreyfus Treasury Cash Management.................. 307,286
-----------
Total Investment Companies............................................ 307,286
-----------
TOTAL (COST -- $21,341,144) (A) (98.9%)............................... $21,285,362
===========
</TABLE>
- ------------
Percentages indicated are based on net assets of $21,523,640.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 21,744
Unrealized depreciation............................................... (77,526)
--------
Net unrealized depreciation........................................... $(55,782)
========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 43
<PAGE> 48
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (8.1%)
500,000 MBNA Master Credit Card Trust 1992-1, 7.25%,
6/15/99.......................................... $ 501,210
78,722 Honda 1994-A Auto Receivables, 4.80%, 8/15/99..... 78,223
4,990,298 Olympic Automobile Receivables Trust, 7.88%,
7/15/01.......................................... 5,071,390
426,757 Chase Manhattan Grantor Trust 1995-A, 6.00%,
9/17/01.......................................... 425,481
3,083,816 Contimortgage Home Equity, 6.76%, 2/15/11......... 3,086,225
-----------
Total Asset Backed Securities......................................... 9,162,529
-----------
COLLATERIZED MORTGAGE OBLIGATIONS (17.2%)
2,000,000 Federal Natl. Mortgage Assoc., 5.42%, 6/18/97..... 1,985,511
1,500,000 Federal Natl. Mortgage Assoc., 5.48%, 7/7/97...... 1,484,702
1,645,202 Federal Home Loan Mtg Corp 1914-C, 6.50%,
12/15/04......................................... 1,645,235
1,277,050 Residential Funding Mtg. Sec. 1995-S18, 7.00%,
11/25/10......................................... 1,275,007
1,493,763 Federal Natl. Mortgage Assoc., 6.00%, 8/25/13..... 1,489,357
4,500,000 Federal Natl. Mortgage Assoc., 5.50%, 2/25/14..... 4,460,355
5,000,000 Federal Home Loan Mtg Corp., 6.11%, 6/17/20....... 5,010,938
2,017,441 Federal Natl. Mortgage Assoc., 9.50%, 9/1/24...... 2,168,104
-----------
Total Collateralized Mortgage Obligations............................. 19,519,209
-----------
COMMERCIAL PAPER (35.6%)
4,500,000 Unliver Capital, 5.46%, 5/19/97................... 4,487,715
2,750,000 Toyota Motor Credit, 5.46%, 5/20/97............... 2,742,075
4,500,000 Xerox Credit Corporation, 5.47%, 5/22/97.......... 4,485,641
4,500,000 American Express, 5.54%, 5/29/97.................. 4,500,000
4,500,000 Canadian Wheat Board, 5.47%, 5/29/97.............. 4,480,855
5,000,000 Unliver Capital, 5.48%, 6/2/97.................... 4,975,644
5,000,000 Coca Cola, 5.48%, 6/5/97.......................... 4,973,361
4,000,000 Amoco Corporation, 5.49%, 6/18/97................. 3,970,720
6,000,000 General Electric Credit, 5.64%, 7/24/97........... 5,921,040
-----------
Total Commercial Paper................................................ 40,537,051
-----------
CORPORATE BONDS (18.9%)
Banking (3.5%)
4,000,000 Comerica Bank, 5.80%, 1/15/98..................... 3,995,520
-----------
</TABLE>
See notes to financial statements.
44 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 49
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED):
Computer Hardware (2.6%)
3,000,000 IBM Credit Corporation, 6.09%, 9/16/97............ $ 3,003,330
-----------
Defense (2.6%)
3,000,000 Lockheed Martin Corporation, 6.63%, 6/15/98....... 3,012,210
-----------
Financial (5.1%)
225,000 American General Finance, 7.15%, 5/15/97.......... 225,088
4,500,00 International Lease Finance, 8.13%, 1/15/98....... 4,565,520
1,000,000 Paccar Financial Corporation, 8.03%, 4/15/98...... 1,017,840
-----------
5,808,448
-----------
Industrial Equipment (1.3%)
1,500,000 Ingersoll-Rand, 6.54%, 8/24/98.................... 1,506,465
-----------
Industrial Food & Beverage (0.9%)
1,000,000 Pepsi Company Incorporated, 6.13%, 1/15/98........ 1,000,190
-----------
Industrial Goods and Services (0.5%)
600,000 Rockwell International, 7.63%, 2/17/98............ 606,624
-----------
Telecommunications (2.4%)
2,700,000 AT&T Capital Corporation, 6.39%, 1/22/99.......... 2,693,250
-----------
Total Corporate Bonds................................................. 21,626,037
-----------
U.S. GOVERNMENT AGENCIES (17.9%)
Federal Home Loan Mortgage Corporation (4.4%)
5,000,000 5.51%, 4/14/98.................................... 4,996,720
-----------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 45
<PAGE> 50
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (CONTINUED):
Federal National Mortgage Association (13.5%)
4,000,000 5.21%, 5/20/97.................................... $ 3,989,001
11,500,000 5.66%, 7/7/97..................................... 11,382,285
-----------
15,371,286
-----------
Total U.S. Government Agencies........................................ 20,368,006
-----------
U.S. TREASURY BILLS (7.0%)
8,000,000 U.S. Treasury Bill, 5.11%, 7/3/97................. 7,928,460
-----------
Total U.S. Treasury Bills............................................. 7,928,460
-----------
INVESTMENT COMPANIES (2.1%)
2,333,126 Dreyfus Treasury Cash Management.................. 2,333,126
-----------
Total Investment Companies............................................ 2,333,126
-----------
TOTAL (COST -- $121,459,441) (A) (106.8%)............................. $121,474,418
===========
</TABLE>
- ------------
Percentages indicated are based on net assets of $113,775,054.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 59,932
Unrealized depreciation............................................... (44,955)
--------
Net unrealized appreciation........................................... $ 14,977
========
</TABLE>
See notes to financial statements.
46 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 51
SHORT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (13.5%)
600,000 MBNA Master Credit Card Trust 1992-1, 7.25%,
6/15/99.......................................... $ 601,452
5,374,167 Olympic Automobile Receivables Trust, 7.88%,
7/15/01.......................................... 5,480,414
426,757 Chase Manhattan Grantor Trust 1995-A, 6.00%,
9/17/01.......................................... 425,481
4,533,724 Pacific SW97-1, 6.06%, 6/17/02.................... 4,528,057
2,652,081 Contimortgage Home Equity, 6.76%, 2/15/11......... 2,654,153
1,140,274 Fleetwood Credit Corp Grantor Trust 1996-A, 6.75%,
10/17/11......................................... 1,138,393
-----------
Total Asset Backed Securities......................................... 14,827,950
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (7.1%)
2,110,000 Capstead Securities Corp. IV 1992-12D, 7.60%,
8/25/07.......................................... 2,115,934
1,915,575 Residential Funding Mtg. Sec. 1995-S18, 7.00%,
11/25/10......................................... 1,912,511
609,523 Federal Home Loan Mtg. Corp. 1394D, 5.50%,
4/15/13.......................................... 608,139
1,867,204 Federal Natl. Mortgage Assoc., 6.00%, 8/25/13..... 1,861,696
1,284,607 Federal Natl. Mortgage Assoc. 1992-65 DA, 7.50%,
1/25/18.......................................... 1,284,324
-----------
Total Collateralized Mortgage Obligations............................. 7,782,604
-----------
COMMERCIAL PAPER (16.4%)
5,500,000 Xerox Credit Corporation, 5.47%, 5/22/97.......... 5,482,450
1,500,000 General Electric Credit, 5.35%, 5/28/97........... 1,500,000
5,500,000 American Express, 5.53%, 5/29/97.................. 5,500,000
5,500,000 Canadian Wheat Board, 5.47%, 5/29/97.............. 5,476,601
-----------
Total Commercial Paper................................................ 17,959,051
-----------
CORPORATE BONDS (36.4%)
Banking (4.1%)
3,600,000 First Chicago NBD, 8.50%, 6/1/98.................. 3,681,324
250,000 Citicorp, 6.65%, 5/15/00.......................... 248,438
500,000 Citicorp, 6.60%, 8/1/00........................... 496,875
-----------
4,426,637
-----------
Computer Hardware (0.4%)
400,000 IBM Credit Corporation, 6.38%, 6/15/00............ 396,500
-----------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 47
<PAGE> 52
SHORT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED):
Consumer Goods and Services (1.1%)
1,000,000 Disney Global Bond, 6.38%, 3/30/01................ $ 985,000
200,000 Walmart, 5.50%, 3/1/98............................ 199,316
-----------
1,184,316
-----------
Defense (4.1%)
4,500,000 Lockheed Martin Corporation, 6.63%, 6/15/98....... 4,518,315
-----------
Financial (8.0%)
3,500,000 Cit Group Holdings Incorporated, 6.75%, 4/30/98... 3,521,735
5,000,000 International Lease Finance, 8.13%, 1/15/98....... 5,072,800
225,000 American General Finance, 7.15%, 5/15/97.......... 225,088
-----------
8,819,623
-----------
Health Care (2.7%)
2,990,000 Columbia/HCA Health, 6.41%, 6/15/00............... 2,952,625
-----------
Industrial Equipment (6.3%)
3,500,000 Caterpillar Finance Incorporated, 6.41%,
6/11/98.......................................... 3,510,710
2,500,000 Ingersoll-Rand, 6.47%, 8/24/98.................... 2,508,625
900,000 Ingersoll-Rand, 6.55%, 8/7/00..................... 894,375
-----------
6,913,710
-----------
Industrial Goods and Services (3.9%)
200,000 Rockwell International, 7.63%, 2/17/98............ 202,208
4,000,000 Honeywell Incorporated, 7.70%, 4/1/98............. 4,055,840
-----------
4,258,048
-----------
Media (0.5%)
500,000 R.R. Donneley, 6.03%, 6/22/98..................... 499,630
-----------
Telecommunications (5.3%)
900,000 AT&T Capital Corporation, 5.90%, 7/10/98.......... 894,951
5,000,000 AT&T Capital Corporation, 6.57%, 1/21/00.......... 4,962,500
-----------
5,857,451
-----------
Total Corporate Bonds................................................. 39,826,855
-----------
</TABLE>
See notes to financial statements.
48 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 53
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (18.2%)
Federal Farm Credit Bank (4.6%)
5,000,000 6.44%, 11/5/99.................................... $ 4,994,150
Federal National Mortgage Association (3.5%)
3,460,118 10.00%, 7/1/21.................................... 3,788,829
Government National Mortgage Association (10.1%)
10,471,042 9.00%, 6/15/09.................................... 11,151,660
-----------
Total U.S. Government Agencies........................................ 19,934,639
-----------
U.S. TREASURY NOTES (3.2%)
2,000,000 5.00%, 1/31/99.................................... 1,959,900
1,500,000 5.88%, 2/15/00.................................... 1,479,240
-----------
Total U.S. Treasury Notes............................................. 3,439,140
-----------
INVESTMENT COMPANIES (3.9%)
4,309,554 Dreyfus Treasury Cash Management.................. 4,309,554
-----------
Total Investment Companies............................................ 4,309,554
-----------
TOTAL (COST -- $108,242,427) (A) (98.7%).............................. $108,079,793
===========
</TABLE>
- ------------
Percentages indicated are based on net assets of $109,503,565.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 125,261
Unrealized depreciation............................................... (287,895)
---------
Net unrealized depreciation........................................... $(162,634)
=========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 49
<PAGE> 54
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (10.0%)
133,223 Honda 1994-A Auto Receivables, 4.80%, 8/15/99..... $ 132,377
1,600,000 Navistar Financial Corp 1997-AA3, 6.75%,
3/15/02........................................... 1,598,500
1,000,000 First USA Credit Card Master Trust, 5.62%,
6/17/02........................................... 1,002,800
869,352 Merit Securities Corporation, 5.65%, 9/28/30...... 869,623
-----------
Total Asset Backed Securities......................................... 3,603,300
-----------
COLLATERIZED MORTGAGE OBLIGATIONS (4.2%)
1,500,000 Federal Home Loan Mtg. Corp., 6.11%, 6/17/20...... 1,503,281
-----------
Total Collateralized Mortgage Obligations............................. 1,503,281
-----------
CORPORATE BONDS (30.3%)
Banking (9.4%)
1,000,000 Old Kent Bank, 6.88%, 4/15/98..................... 1,006,500
850,000 Citicorp, 6.65%, 5/15/00.......................... 844,688
1,500,000 ABN-Amro Bank, 7.25%, 5/31/05..................... 1,501,875
-----------
3,353,063
-----------
Consumer Goods and Services (2.7%)
1,000,000 Disney Global Bond, 6.38%, 3/30/01................ 985,000
-----------
Electric Utility (4.1%)
1,500,000 Puget Sound Power & Light, 6.50%, 9/14/99......... 1,492,500
-----------
Financial Services (2.4%)
850,000 Transamerica Financial Corporation, 7.40%,
7/29/99........................................... 861,688
-----------
Industrial Goods and Services (3.4%)
1,250,000 Honeywell Incorporated, 6.60%, 4/15/01............ 1,235,938
-----------
Telecommunications (8.3%)
1,500,000 AT&T Capital Corporation, 5.90%, 7/10/98.......... 1,491,585
1,500,000 US West Capital Funding Note, 6.85%, 1/15/02...... 1,488,750
-----------
2,980,335
-----------
Total Corporate Bonds................................................. 10,908,524
-----------
</TABLE>
See notes to financial statements.
50 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 55
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
MORTGAGE BACKED SECURITIES (19.8%)
Federal Home Loan Mortgage Corporation (2.8%)
1,000,000 7.00%, 5/1/12..................................... $ 990,930
-----------
990,930
-----------
Federal National Mortgage Association (7.3%)
705,899 8.50%, 10/1/19.................................... 734,354
1,730,059 10.00%, 7/1/21.................................... 1,894,415
-----------
2,628,769
-----------
Government National Mortgage Association (9.7%)
1,454,274 8.00%, 12/15/26................................... 1,473,805
2,000,000 8.00%, 1/15/27.................................... 2,023,740
-----------
3,497,545
-----------
Total Mortgage Backed Securities...................................... 7,117,244
-----------
U.S. GOVERNMENT AGENCIES (6.6%)
Federal Home Loan Mortgage Corporation (2.8%)
1,000,000 5.41%, 5/7/97..................................... 999,098
Other Agencies (3.8%)
1,400,000 Tennessee Valley Authority, 6.38%, 6/15/05........ 1,349,250
-----------
Total U.S. Government Agencies........................................ 2,348,348
-----------
U.S. TREASURY NOTES (31.5%)
2,500,000 6.38%, 3/31/01.................................... 2,486,600
6,000,000 6.13%, 12/31/01................................... 5,896,800
3,000,000 6.25%, 2/28/02.................................... 2,959,770
-----------
Total U.S. Treasury Notes............................................. 11,343,170
-----------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 51
<PAGE> 56
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
INVESTMENT COMPANIES (3.7%)
1,340,222 Dreyfus Treasury Cash Management.................. $ 1,340,222
-----------
Total Investment Companies............................................ 1,340,222
-----------
TOTAL (COST -- $38,291,925)(A) (106.1%)............................... $38,164,089
===========
</TABLE>
- ------------
Percentages indicated are based on net assets of $35,968,046.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 91,900
Unrealized depreciation............................................... (219,736)
---------
Net unrealized depreciation........................................... $(127,836)
=========
</TABLE>
See notes to financial statements.
52 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 57
INVESTMENT QUALITY BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (17.5%)
750,000 Premier Auto Trust 1996-2 A4, 6.58%, 10/6/00...... $ 749,025
1,000,000 MBNA Master Credit Trust, 5.63%, 12/15/00......... 1,003,400
3,989,677 Pacific SW97-1, 6.06%, 6/17/02.................... 3,984,690
2,700,000 Green Tree Financial Corp 1996-7 A4, 6.8%,
10/15/27......................................... 2,688,188
-----------
Total Asset Backed Securities......................................... 8,425,303
-----------
COLLATERIZED MORTGAGE OBLIGATIONS (19.5%)
1,624,234 Federal Natl. Mortgage Ass., 6.10%, 5/25/99....... 1,636,887
2,478,258 Federal Natl. Mortgage Ass., 91-84, 5.87%,
2/25/06.......................................... 2,484,602
2,000,000 Federal Home Loan Mortgage Corp 61-F, 6.11%,
6/17/20.......................................... 2,004,375
1,546,878 General Electric Capital Mtg. Ser. 92-7A A6,
8.30%, 7/25/23................................... 1,567,034
118,000 Countrywide Funding Corporation, 6.50%, 3/25/24... 107,320
1,580,639 Merit Securities Corporation 8A-1, 5.65%,
9/28/30.......................................... 1,581,133
-----------
Total Collateralized Mortgage Obligations............................. 9,381,351
-----------
CORPORATE BONDS (21.9%)
Banking (2.3%)
400,000 ABN-Amro Bank, 7.25%, 5/31/05..................... 400,500
200,000 Citicorp, 6.65%, 5/15/00.......................... 198,750
500,000 Swiss Bank Corporation -- New York, 7.25%,
9/1/06........................................... 498,125
-----------
1,097,375
-----------
Consumer Goods and Services (2.7%)
300,000 Walmart, 5.50%, 3/1/98............................ 298,974
1,000,000 Walt Disney Company, 6.38%, 3/30/01............... 985,000
-----------
1,283,974
-----------
Electric Utility (2.1%)
500,000 Union Electric, 6.88%, 8/1/04..................... 492,500
500,000 Virginia Electric Power Company, 7.38%, 7/1/02.... 509,375
-----------
1,001,875
-----------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 53
<PAGE> 58
INVESTMENT QUALITY BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED):
Financial (8.1%)
1,500,000 General Electric Capital Corp, 8.13%, 5/15/12..... $ 1,601,250
500,000 General Motors Acceptance Corporation, 8.63%,
6/15/99.......................................... 520,000
1,500,000 Grand Metropolitan PLC, 8.63%, 8/15/01............ 1,590,000
190,000 Transamerica Financial Corporation, 7.40%,
7/29/99.......................................... 192,613
-----------
3,903,863
-----------
Industrial Goods and Services (1.5%)
500,000 Hanson Overseas, PLC, 6.75%, 9/15/05.............. 481,875
250,000 Rockwell International, 7.63%, 2/17/98............ 252,760
-----------
734,635
-----------
Telecommunications (5.2%)
2,500,000 US West Capital Funding Note, 6.85%, 1/15/02...... 2,481,250
-----------
Total Corporate Bonds................................................. 10,502,972
-----------
FOREIGN GOVT. BONDS -- U.S. DOLLAR DENOMINATED (1.8%)
1,000,000 British Columbia, Canada, 6.50%, 1/15/26.......... 890,000
-----------
Total Foreign Govt. Bonds -- U.S. Dollar Denominated.................. 890,000
-----------
MORTGAGE BACKED SECURITIES (31.9%)
Federal Home Loan Mortgage Corporation (13.7%)
2,700,000 7.00%, 5/1/12..................................... 2,675,511
1,127,325 8.50%, 6/1/17..................................... 1,174,526
2,743,207 7.50%, 3/1/26..................................... 2,727,763
-----------
6,577,800
-----------
Federal National Mortgage Association (12.0%)
5,700,000 8.00%, 6/01/27.................................... 5,778,375
Government National Mortgage Association (6.2%)
3,000,000 7.50%, 3/15/27.................................... 2,970,000
-----------
Total Mortgage Backed Securities...................................... 15,326,175
-----------
</TABLE>
See notes to financial statements.
54 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 59
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (7.4%)
U.S. Govt. Agency Debentures (6.2%)
3,000,000 Federal National Mortgage Ass., 5.21%, 5/20/97.... $ 2,991,751
Other Agencies (1.2%)
600,000 Tennessee Valley Authority, 6.38%, 6/15/05........ 578,250
-----------
Total U.S. Government Agencies........................................ 3,570,001
-----------
U.S. TREASURY NOTES (12.5%)
5,000,000 6.88%, 8/31/99.................................... 5,055,500
1,000,000 6.50%, 10/15/06................................... 982,730
-----------
Total U.S. Treasury Notes............................................. 6,038,230
-----------
U.S. TREASURY BONDS (9.2%)
500,000 8.13%, 8/15/19.................................... 558,950
4,300,000 6.25%, 8/15/23.................................... 3,892,403
-----------
Total U.S. Treasury Bonds............................................. 4,451,353
-----------
INVESTMENT COMPANIES (0.9%)
418,659 Dreyfus Treasury Cash Management.................. 418,659
-----------
Total Investment Companies............................................ 418,659
-----------
TOTAL (COST -- $59,224,044)(A) (122.6%)............................... $59,004,044
===========
</TABLE>
- ------------
Percentages indicated are based on net assets of $48,140,741.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 174,462
Unrealized depreciation............................................... (394,462)
---------
Net unrealized depreciation........................................... $(220,000)
=========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 55
<PAGE> 60
TOTAL RETURN FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<C> <S> <C>
AUSTRALIA (AUSTRALIAN DOLLAR) (3.0%)
Government Bonds (3.0%)
425,000 10.00%, 10/15/07................................ $ 382,739
--------------
Total Australia (Cost -- $376,019).................................. 382,739
--------------
SWEDEN (SWEDISH KRONA) (2.7%)
Government Bonds (2.7%)
2,400,000 10.25%, 5/5/00.................................. 344,986
--------------
Total Sweden (Cost -- $351,211)..................................... 344,986
--------------
UNITED STATES (UNITED STATES DOLLAR) (112.0%)
Asset Backed Securities (21.3%)
360,474 Nationsbank Auto Owner Trust 96A-A2, 6.13%,
7/15/99 (a).................................... 360,247
226,686 Pacific Southwest 97-1, 6.06%, 6/17/02 (a)...... 226,403
599,419 Daimler-Benz Vehicle Trust, 5.85%, 7/20/03...... 597,626
354,857 Student Loan Marketing Ass. 96-4A1, 5.60%,
7/25/04........................................ 354,964
215,867 Contimortgage Home Equity, 6.76%, 2/15/11....... 216,036
600,000 Green Tree Financial Corporation, 7.15%,
7/15/27........................................ 606,938
316,128 Merit Securities Corporation 8-A1, 5.65%,
9/28/30........................................ 316,227
--------------
Total Asset Backed Securities....................................... 2,678,441
--------------
Collaterized Mortgage Obligations (23.3%)
395,958 Federal Natl. Mortgage Ass. 92-62F, 6.10%,
5/25/99 (a).................................... 399,042
390,000 Capstead Securities Corporation IV, 7.60%,
8/25/07 (a).................................... 391,097
600,000 Merrill Lynch Mortgage Investors 91-F A2, 6.28%,
6/15/16........................................ 608,040
500,000 Federal Home Loan Mtg. Corp. 61-F, 6.11%,
6/17/20........................................ 501,094
200,000 Residential Funding Mtg. Sec I 3-530 A6, 7.00%,
8/25/23........................................ 189,238
488,797 Residential Funding Corp. 93-539 A1, 6.25%,
10/25/23....................................... 489,139
200,000 Prudential Home Mtg. Security 93-47 A10, 6.75%,
12/25/23....................................... 173,586
200,000 Countrywide Funding Corp. 94-7 A7, 6.50%,
3/25/24........................................ 181,898
--------------
Total Collateralized Mortgage Obligations........................... 2,933,134
--------------
</TABLE>
See notes to financial statements.
56 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 61
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<C> <S> <C>
UNITED STATES (CONTINUED):
Corporate Bonds (17.0%)
Airlines (2.0%)
250,000 Northwest Airlines Corporation, 8.375%,
03/15/04....................................... $ 246,250
Banking (3.7%)
200,000 First Nationwide, 9.13%, 12/1/03................ 201,500
250,000 Coast Savings Financial, 10.00%, 3/1/00 (a)..... 263,750
--------------
465,250
--------------
Energy (2.1%)
250,000 Gulf Canada Resources Limited, 9.63%, 7/1/05.... 261,875
Financial (3.4%)
200,000 Contifinancial Corporation, 8.38%, 8/15/03...... 202,500
225,000 Salomon Incorporated, 6.25%, 11/30/00 (a)....... 221,906
--------------
424,406
--------------
Health (1.7%)
200,000 Tenet Healthcare Corporation, 9.63%, 9/1/02..... 212,000
Multimedia (1.9%)
250,000 Time Warner Note, 6.10%, 12/30/01............... 236,250
Retail (2.2%)
250,000 Barnes & Noble Notes, 11.88%, 1/15/03........... 272,500
--------------
Total Corporate Bonds............................................... 2,118,531
--------------
Mortgage Backed Securities (21.1%)
Federal Home Loan Mortgage Corporation (21.1%)
700,000 7.00%, 5/1/12................................... 693,651
494,897 7.50%, 12/1/26.................................. 492,111
498,950 7.50%, 1/1/27................................... 496,141
1,000,000 7.00%, 1/15/27.................................. 969,680
--------------
Total Mortage Backed Securities..................................... 2,651,583
--------------
U.S. Government Agency Debentures (27.1%)
Federal Home Loan Mortgage Corporation (7.9%)
1,000,000 5.33%, 5/13/97 (a).............................. 998,223
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 57
<PAGE> 62
TOTAL RETURN FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE IN
IN LOCAL CURRENCY SECURITY DESCRIPTION U.S. DOLLARS
----------------- ------------------------------------------------ ---------------
<C> <S> <C>
UNITED STATES (CONTINUED):
Federal Home Loan Bank (7.9%)
1,000,000 5.32%, 5/5/97 (a)............................... $ 999,409
Federal National Mortgage Association (3.2%)
400,000 5.37%, 5/02/97.................................. 399,940
Government National Mortgage Association (8.1%)
1,000,000 8.00%, 1/15/27.................................. 1,011,870
--------------
Total U.S. Government Agencies...................................... 3,409,442
--------------
U.S. Treasury Bills (0.8%)
100,000 5.20%, 06/5/97 (a).............................. 99,503
--------------
Total U.S. Treasury Bills........................................... 99,503
--------------
Investment Companies (1.4%)
190,069 Dreyfus Treasury Cash Management................ 190,069
--------------
Total Investment Companies.......................................... 190,069
--------------
Total United States (Cost -- $14,101,662)........................... 14,080,703
--------------
TOTAL (COST -- $14,828,892)(B) (117.7%)............................. $14,808,428
==============
</TABLE>
- ------------
Percentages indicated are based on net assets of $12,583,127.
(a) A portion of the security is held by the custodian in a segregated account
as collateral for open futures contracts.
At April 30, 1997, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Number of Expiration Current Unrealized
Contracts Contract Type Date Market Value Appreciation
- --------- ------------------------ ----------- ------------ ------------
<C> <S> <C> <C> <C>
5 5 Year U.S. Treasury 6/19/97 $ 526,406 $ 3,750
Note Future
5 5 Year U.S. Treasury 6/19/97 (526,406) (4,531)
Note Future
10 10 Year U.S. Treasury 6/19/97 1,069,688 5,219
Note Future
13 20 Year U.S. Treasury 6/19/97 1,420,656 (594)
Bond Future
------------ --------
$2,490,344 $ 3,844
============ ========
</TABLE>
See notes to financial statements.
58 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 63
(b) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................................................ $ 40,532
Unrealized depreciation................................................ (60,996)
--------
Net unrealized depreciation............................................ $(20,464)
========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 59
<PAGE> 64
TOTAL RETURN FUND
FORWARD CURRENCY CONTRACTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT CONTRACT VALUE APPRECIATION DELIVERY
CURRENCY PRICE (U.S. DOLLARS) (DEPRECIATION) DATE
- ------------------------------------------------ -------- -------------- -------------- --------
<S> <C> <C> <C> <C>
ASSETS:
Australian Dollar (sell)........................ 0.787150 $ (389,165) $ 4,410 6/24/97
Swedish Krona (sell)............................ 7.851000 (31,371) 8,819 6/27/97
------------ -----------
$ (420,536) $ 13,229
============ ===========
</TABLE>
See notes to financial statements.
60 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 65
GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
IN LOCAL CURRENCY MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
----------------- ------------------------------------------------- ---------------
<C> <S> <C>
COMMON STOCKS (44.7%)
AEROSPACE & DEFENSE (0.9%)
4,228 British Aerospace PLC............................ $ 89,917
--------------
Total Aerospace & Defense............................................ 89,917
--------------
BASIC INDUSTRIES (2.8%)
Chemicals (2.4%)
1,168 Air Products & Chemicals Incorporated............ 83,804
1,085 CIBA Specialty Chemicals......................... 93,547
6,620 Laporte PLC...................................... 71,360
--------------
248,711
--------------
Packaging & Containers (0.4%)
7,240 Low & Bonar PLC.................................. 45,393
--------------
Total Basic Industries............................................... 294,104
--------------
CONGLOMERATES & HOLDING COMPANIES (2.2%)
Diversified Operations (1.0%)
9,000 Hutchison Whampoa................................ 66,809
6,000 United Engineers (Malaysia)...................... 42,558
--------------
109,367
--------------
Business & Public Service (1.2%)
243 Adecco SA........................................ 81,165
1,000 Nichii Gakkan Company............................ 45,010
--------------
126,175
--------------
Total Conglomerates & Holding Companies.............................. 235,542
--------------
CONSTRUCTION & REAL ESTATE (0.3%)
8,500 Land & House Public Company Limited.............. 26,034
--------------
Total Construction & Real Estate..................................... 26,034
--------------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 61
<PAGE> 66
GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
IN LOCAL CURRENCY MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
------- -----------
<C> <S> <C>
DURABLES (3.6%)
Automobiles (2.2%)
1,236 Daimler-Benz AG-Rights........................... $ 107
1,236 Daimler-Benz Ag.................................. 91,386
1,908 Scania AB - B Shares............................. 49,271
3,000 Toyota Motor..................................... 87,025
--------------
227,789
--------------
Consumer Products (0.8%)
700 Sony Corporation................................. 50,985
6,495 Srithai Superware Company Limited................ 29,839
--------------
80,824
--------------
Transportation (0.6%)
48,000 Cosco Pacific Limited............................ 67,235
--------------
Total Durables....................................................... 375,848
--------------
ENERGY (2.7%)
2,096 Exxon Corporation................................ 118,686
5,005 Shell Transporting & Trading Company PLC......... 88,498
2,400 Tosco Corporation................................ 71,100
--------------
Total Energy......................................................... 278,284
--------------
</TABLE>
See notes to financial statements.
62 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 67
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
IN LOCAL CURRENCY MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
------- -----------
<C> <S> <C>
FINANCE (5.6%)
Banking (4.1%)
3,369 Banco Galicia Y Bueno -- Sp ADR.................. $ 81,961
6,285 Bangkok Bank Company Limited..................... 41,387
19,029 Bank Of East Asia................................ 65,469
1,663 Banque Nationale De Paris........................ 70,964
12,024 Lloyds TSB Group PLC............................. 110,008
11,000 Sakura Bank Ltd. ................................ 58,182
--------------
427,971
--------------
Financial Services (1.5%)
1,500 Catalana Occidente SA............................ 78,872
1,435 ING Group N.V.................................... 56,363
2,000 Nomura Securities Corporation Limited............ 22,387
--------------
157,622
--------------
Total Finance........................................................ 585,593
--------------
HEALTH (5.1%)
Health Related (4.6%)
1,340 Bristol-Myers Squibb Company..................... 87,770
1,763 Columbia/HCA Healthcare Corporation.............. 61,705
5,700 Glaxo Wellcome PLC............................... 112,207
85 Novartis AG...................................... 112,064
6 Roche Holding AG................................. 50,713
2,000 Sankyo Corporation Limited....................... 53,602
--------------
478,061
--------------
Medical Equipment & Supplies (0.5%)
2,300 Laboratorio Chile-Sponsored ADR.................. 50,600
--------------
Total Health......................................................... 528,661
--------------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 63
<PAGE> 68
GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
IN LOCAL CURRENCY MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
------- -----------
<C> <S> <C>
INDUSTRIAL MACHINERY & EQUIPMENT (2.1%)
2,866 Atlas Copco AB-B Shares.......................... $ 71,086
2,050 KCI Konecranes International..................... 78,829
11,000 Mitsubishi Heavy Industries Limited.............. 72,663
--------------
Total Industrial Machinery & Equipment............................... 222,578
--------------
MEDIA & LEISURE (4.3%)
Hotels & Motels (0.9%)
5,400 Scandic Hotels AB................................ 90,210
--------------
Multimedia (3.4%)
6,527 Granada Group PLC................................ 94,234
12,394 News Corporation Limited......................... 57,236
1,400 Polygram NFLO 50................................. 68,645
6,000 Shochiku......................................... 49,188
6,000 Toppan Printing Corporation Limited.............. 77,566
--------------
346,869
--------------
Total Media & Leisure................................................ 437,079
--------------
NONDURABLES (1.1%)
Beverage & Tobacco (0.5%)
12,500 PT Hanjaya Mandala Sampoerna..................... 50,283
Auto Tires & Accessories (0.6%)
1,065 Valeo SA......................................... 65,705
--------------
Total Nondurables.................................................... 115,988
--------------
</TABLE>
See notes to financial statements.
64 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 69
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
IN LOCAL CURRENCY MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
------- -----------
<C> <S> <C>
RETAIL & WHOLESALE (3.6%)
Drug Stores (0.9%)
2,000 Walgreen Company................................. $ 92,000
--------------
Retail (1.5%)
1,000 Seven-Eleven Japan............................... 63,456
1,000 Metro AG......................................... 97,505
--------------
160,961
--------------
Distributors (0.6%)
8,680 Premier Farnell PLC.............................. 65,968
--------------
Restaurants (0.6%)
14,000 KFC Holding (Malaysia) Bhd....................... 57,462
--------------
Total Retail & Wholesale............................................. 376,391
--------------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 65
<PAGE> 70
GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
IN LOCAL CURRENCY MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
------- -----------
<C> <S> <C>
TECHNOLOGY (10.4%)
Data Processing (0.9%)
7,000 Ines............................................. $ 90,493
--------------
Electrical & Electronics (5.9%)
1,040 General Electric Company......................... 115,310
3,200 Micron Technology Inc............................ 112,800
2,000 Murata Manufacturing Corporation Limited......... 73,782
2,948 Philips Electronics.............................. 153,931
1,000 Rohm Company..................................... 77,566
1,412 Schneider Sa (Ex Spie Batig)..................... 79,611
--------------
613,000
--------------
Telecommunications (3.6%)
755 Alcatel Alsthom.................................. 83,972
6,000 Nippon Comsys Corporation........................ 68,580
9 Nippon Telegraph & Telephone Corporation......... 63,495
675 Telecel-Communicacoes Pessoai.................... 58,140
40,000 Telecom Italia................................... 105,303
--------------
379,490
--------------
Total Technology..................................................... 1,082,983
--------------
Total Common Stocks (Cost -- $4,531,288)............................. 4,649,002
--------------
BONDS AND NOTES (54.1%)
AUSTRALIA (AUSTRALIAN DOLLAR) (5.2%)
Government Bonds (5.2%)
600,000 10.00%, 10/15/07................................. 540,338
--------------
Total Australia (Cost -- $530,851)................................... 540,338
--------------
GERMANY (GERMAN MARK) (5.2%)
Government Bonds (5.2%)
895,000 Treuhandanstalt, 6.25%, 3/4/04................... 543,090
--------------
Total Germany (Cost -- $581,989)..................................... 543,090
--------------
</TABLE>
See notes to financial statements.
66 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 71
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
IN LOCAL CURRENCY MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
------- -----------
<C> <S> <C>
GREAT BRITAIN (BRITISH POUND) (8.6%)
Government Bonds (8.6%)
100,000 UK Gilt, 10.00%, 2/26/01......................... $ 177,377
440,000 UK Gilt, 7.50%, 12/7/06.......................... 716,891
--------------
Total Great Britain (Cost -- $906,698)............................... 894,268
--------------
ITALY (ITALIAN LIRA) (2.8%)
Government Bonds (2.8%)
475,000,000 9.50%, 4/15/99................................... 291,065
--------------
Total Italy (Cost -- $310,039)....................................... 291,065
--------------
SPAIN (SPANISH PESETA) (3.9%)
Government Bonds (3.9%)
50,000,000 10.30%, 6/15/02.................................. 404,081
--------------
Total Spain (Cost -- $408,869)....................................... 404,081
--------------
SWEDEN (SWEDISH KRONA) (2.8%)
Government Bonds (2.8%)
2,400,000 6.00%, 2/9/05.................................... 288,427
--------------
Total Sweden (Cost -- $321,033)...................................... 288,427
--------------
UNITED STATES (UNITED STATES DOLLAR) (25.6%)
U.S. Government Agency (1.2%)
3,041 Federal National Mortgage Association............ 125,061
U.S. Treasury Notes (22.8%)
2,400,000 5.88%, 6/30/00 (a)............................... 2,361,456
Investment Companies (1.6%)
167,256 Dreyfus Treasury Cash Management................. 167,256
--------------
Total United States (Cost -- $2,640,499)............................. 2,653,773
--------------
Total Bonds and Notes (Cost -- $5,699,978)........................... 5,615,042
--------------
TOTAL (COST -- $10,231,266) (B) (98.8%).............................. $10,264,044
==============
</TABLE>
- ------------
Percentages indicated are based on net assets of $10,392,531.
See notes to financial statements.
SEMI-ANNUAL REPORT 67
<PAGE> 72
GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
Distribution of investments by country of issue, as a percentage of total value
of investment securities, is as follows:
<TABLE>
<S> <C>
United States 33.3%
Great Britain 15.3%
Japan 9.3%
Germany 7.1%
Australia 5.8%
Spain 5.5%
Sweden 4.9%
Italy 3.9%
Switzerland 3.3%
France 2.9%
Netherlands 2.7%
Hong Kong 1.9%
Malaysia 1.0%
Thailand 0.9%
Other, less than 1% 2.2%
-------
100.0%
=======
</TABLE>
(a) A portion of the security is held by the custodian in a segregated account
as collateral for open futures contracts.
At April 30, 1997, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION CURRENT UNREALIZED
CONTRACTS CONTRACT TYPE DATE MARKET VALUE APPRECIATION
- ---------- -------------------------------- ----------- ------------- -------------
<S> <C> <C> <C> <C>
3 S&P 500 Future September 1997 9/16/97 $1,216,200 $49,950
</TABLE>
(b) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 352,726
Unrealized depreciation............................................... (319,948)
---------
Net unrealized appreciation........................................... $ 32,778
=========
</TABLE>
See notes to financial statements.
68 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 73
GLOBAL BALANCED FUND
FORWARD CURRENCY CONTRACTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT CONTRACT VALUE APPRECIATION DELIVERY
CURRENCY PRICE (U.S. DOLLARS) (DEPRECIATION) DATE
- ---------------------------------------------- ---------- -------------- -------------- --------
<S> <C> <C> <C> <C>
ASSETS:
Australian Dollar (sell)...................... 0.787150 $ (544,831) $ 6,174 6/24/97
Australian Dollar (sell)...................... 0.785300 (62,266) 558 6/24/97
Spanish Peseta (sell)......................... 145.507000 (171,156) 657 5/21/97
Italian Lira (sell)........................... 1,702.900 (292,599) 1,017 5/21/97
Italian Lira (sell)........................... 1,702.900 (96,558) 336 5/21/97
Swedish Krona (sell).......................... 7.671800 (127,488) 2,860 6/17/97
Swedish Krona (sell).......................... 7.671800 (254,975) 5,720 6/17/97
Swedish Krona (sell).......................... 7.648600 (165,720) 4,246 6/27/97
------------ -----------
$ (1,715,593) $ 21,568
============ ===========
LIABILITIES:
Canadian Dollar (buy)......................... 1.387750 $ 465,098 $ (3,286) 5/07/97
German Mark (buy)............................. 1.683920 115,962 (2,808) 6/13/97
British Pound (sell).......................... 1.610200 (356,435) (2,191) 5/12/97
British Pound (sell).......................... 1.590000 (161,447) (2,447) 6/16/97
Japanese Yen (buy)............................ 122.410000 (357,980) (9,637) 5/20/97
Japanese Yen (buy)............................ 119.830000 119,327 (5,851) 5/20/97
Japanese Yen (buy)............................ 119.902000 119,327 (5,775) 5/20/97
------------ -----------
$ (56,148) $(31,995)
============ ===========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 69
<PAGE> 74
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
----------------- ------------------------------------------------- ---------------
<C> <S> <C>
COMMON STOCKS (87.0%)
AEROSPACE & DEFENSE (1.8%)
7,448 British Aerospace PLC............................ $ 158,397
-------------
Total Aerospace & Defense............................................ 158,397
-------------
BASIC INDUSTRIES (4.1%)
Chemicals (3.0%)
1,879 CIBA Specialty Chemicals......................... 162,005
9,328 Laporte PLC...................................... 100,551
-------------
262,556
-------------
Packaging & Containers (1.1%)
15,287 Low & Bonar PLC.................................. 95,846
-------------
Total Basic Industries............................................... 358,402
-------------
CONGLOMERATES & HOLDING COMPANIES (5.9%)
Diversified Operations (2.3%)
18,000 Hutchison Whampoa................................ 133,617
10,000 United Engineers (Malaysia)...................... 70,930
-------------
204,547
-------------
Business & Public Service (3.6%)
546 Adecco SA........................................ 182,371
3,000 Nichii Gakkan Company............................ 135,031
-------------
317,402
-------------
Total Conglomerates & Holding Companies.............................. 521,949
-------------
CONSTRUCTION & REAL ESTATE (0.3%)
9,700 Land & House Public Company Limited.............. 29,709
-------------
Total Construction & Real Estate..................................... 29,709
-------------
</TABLE>
See notes to financial statements.
70 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 75
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
----------------- ------------------------------------------------- ---------------
<C> <S> <C>
DURABLES (9.0%)
Automobiles (5.0%)
2,608 Daimler-Benz AG-Rights........................... $ 226
2,608 Daimler-Benz Ag.................................. 192,828
4,026 Scania AB - B Shares............................. 103,965
5,000 Toyota Motor..................................... 145,042
-------------
442,061
-------------
Consumer Products (2.8%)
2,500 Sony Corporation................................. 182,090
13,605 Srithai Superware Company Limited................ 62,504
-------------
244,594
-------------
Transportation (1.2%)
75,000 Cosco Pacific Limited............................ 105,054
-------------
Total Durables....................................................... 791,709
-------------
ENERGY (3.1%)
4,000 Petroleo Brasileiro S.A. -- ADR.................. 84,811
10,565 Shell Transporting & Trading Company PLC......... 186,810
-------------
Total Energy......................................................... 271,621
-------------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 71
<PAGE> 76
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
----------------- ------------------------------------------------- ---------------
<C> <S> <C>
FINANCE (12.6%)
Banking (7.9%)
3,102 Banco Galicia Y Bueno -- Sp ADR.................. $ 75,466
13,300 Bangkok Bank Company Limited..................... 87,580
28,567 Bank Of East Asia................................ 98,284
2,631 Banque Nationale De Paris........................ 112,270
25,393 Lloyds TSB Group PLC............................. 232,326
17,000 Sakura Bank Ltd. ................................ 89,918
-------------
695,844
-------------
Financial Services (4.7%)
3,500 Catalana Occidente SA............................ 184,034
4,040 ING Group N.V. .................................. 158,679
6,000 Nomura Securities Corporation Limited............ 67,161
-------------
409,874
-------------
Total Finance........................................................ 1,105,718
-------------
HEALTH (7.2%)
8,000 Glaxo Wellcome PLC............................... 157,483
179 Novartis AG...................................... 235,993
12 Roche Holding AG................................. 101,426
5,000 Sankyo Corporation Limited....................... 134,006
-------------
Total Health......................................................... 628,908
-------------
INDUSTRIAL MACHINERY & EQUIPMENT (5.6%)
6,049 Atlas Copco AB - B Shares........................ 150,035
4,600 KCI Konecranes International..................... 176,886
25,000 Mitsubishi Heavy Industries Limited.............. 165,143
-------------
Total Industrial Machinery & Equipment............................... 492,064
-------------
</TABLE>
See notes to financial statements.
72 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 77
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
----------------- ------------------------------------------------- ---------------
<C> <S> <C>
MEDIA & LEISURE (9.4%)
Hotels & Motels (1.7%)
9,000 Scandic Hotels AB................................ $ 150,350
-------------
Multimedia (7.7%)
9,557 Granada Group PLC................................ 137,980
20,124 News Corporation Limited......................... 92,934
3,800 Polygram NFLO.................................... 186,322
14,000 Shochiku......................................... 114,772
11,000 Toppan Printing Corporation Limited.............. 142,204
-------------
674,212
-------------
Total Media & Leisure................................................ 824,562
-------------
NONDURABLES (2.8%)
Beverage & Tobacco (0.8%)
18,500 PT Hanjaya Mandala Sampoerna..................... 74,419
Auto Tires & Accessories (2.0%)
2,812 Valeo SA......................................... 173,485
-------------
Total Nondurables.................................................... 247,904
-------------
RETAIL & WHOLESALE (4.8%)
Retail (3.7%)
1,400 Metro AG......................................... 136,506
3,000 Seven - Eleven Japan............................. 190,367
-------------
326,873
-------------
Restaurants (1.1%)
23,000 KFC Holding (Malaysia) Bhd....................... 94,401
-------------
Total Retail & Wholesale............................................. 421,274
-------------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 73
<PAGE> 78
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
----------------- ------------------------------------------------- ---------------
<C> <S> <C>
TECHNOLOGY (20.4%)
Data Processing (1.6%)
11,000 Ines............................................. $ 142,204
-------------
Electrical & Electronics (8.3%)
4,000 Murata Manufacturing Corporation Limit........... 147,564
4,322 Philips Electronics.............................. 225,675
3,000 Rohm Company..................................... 232,697
2,235 Schneider Sa (Ex Spie Batig)..................... 126,014
-------------
731,950
-------------
Telecommunications (10.5%)
2,000 Alcatel Alsthom.................................. 222,443
14,000 Nippon Comsys Corporation........................ 160,019
21 Nippon Telegraph & Telephone Corporation......... 148,155
1,000 Telebras-Sponsored ADR........................... 114,750
1,400 Telecel -- Communicacoes Pessoai................. 120,587
59,500 Telecom Italia................................... 156,638
-------------
922,592
-------------
Total Technology..................................................... 1,796,746
-------------
Total Common Stocks (Cost -- $7,417,249)............................. 7,648,963
-------------
INVESTMENT COMPANIES (11.5%)
1,016,259 Dreyfus Treasury Cash Management................. 1,016,259
-------------
Total Investment Companies........................................... 1,016,259
-------------
TOTAL (COST -- $8,433,508)(A) (98.5%)................................ $ 8,665,222
=============
</TABLE>
- ------------
Percentages indicated are based on net assets of $8,800,278.
See notes to financial statements.
74 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 79
Distribution of investments by country of issue, as a percentage of total value
of investment securities, is as follows:
<TABLE>
<S> <C>
Japan................................................ 25.3%
Great Britain........................................ 12.3%
United States (cash)................................. 11.7%
Switzerland.......................................... 7.9%
France............................................... 7.3%
Netherlands.......................................... 6.6%
Sweden............................................... 4.7%
Hong Kong............................................ 3.9%
Germany.............................................. 3.8%
Spain................................................ 3.0%
Brazil............................................... 2.3%
Thailand............................................. 2.1%
Finland.............................................. 2.0%
Malaysia............................................. 1.9%
Italy................................................ 1.8%
Portugal............................................. 1.4%
Australia............................................ 1.1%
Indonesia............................................ 0.9%
-----
100.0%
=====
</TABLE>
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................... $ 571,237
Unrealized depreciation............................................... (339,523)
---------
Net unrealized appreciation........................................... $ 231,714
=========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 75
<PAGE> 80
GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
----------------- ------------------------------------------------- ---------------
<C> <S> <C>
COMMON STOCKS (48.7%)
BASIC INDUSTRIES (9.3%)
Chemicals (4.5%)
34,350 Du Pont (E.I.) De Nemours & Company.............. $ 3,645,394
--------------
PAPER AND RELATED PRODUCTS (4.8%)
92,935 International Paper Company...................... 3,926,504
--------------
Total Basic Industries............................................... 7,571,898
--------------
CONGLOMERATES & HOLDING COMPANIES (6.4%)
14,495 Eastman Kodak Company............................ 1,210,333
45,730 Minnesota Mining & Manufacturing Company......... 3,978,510
--------------
Total Conglomerates & Holding Companies.............................. 5,188,843
--------------
AUTOMOBILES (4.8%)
68,325 General Motors Corporation....................... 3,954,309
--------------
Total Automobiles.................................................... 3,954,309
--------------
ENERGY (13.0%)
58,360 Chevron Corporation.............................. 3,997,660
76,935 Exxon Corporation................................ 4,356,444
21,308 Texaco Incorporated.............................. 2,247,994
--------------
Total Energy......................................................... 10,602,098
--------------
FINANCE (4.9%)
39,070 J.P. Morgan & Company............................ 3,980,256
--------------
Total Finance........................................................ 3,980,256
--------------
NONDURABLES (5.9%)
TOBACCO (4.9%)
100,195 Phillip Morris Companies Incorporated............ 3,945,178
AUTO TIRES & ACCESSORIES (1.0%)
16,195 Goodyear Tire & Rubber Company................... 852,262
--------------
Total Nondurables.................................................... 4,797,440
--------------
</TABLE>
See notes to financial statements.
76 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 81
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
OR SHARES SECURITY DESCRIPTION IN U.S. DOLLARS
----------------- ------------------------------------------------- ---------------
<C> <S> <C>
TELECOMMUNICATIONS (4.4%)
107,290 AT&T Corporation................................. $ 3,594,215
--------------
Total Telecommunications............................................. 3,594,215
--------------
Total Common Stocks (Cost -- $38,795,952)............................ 39,689,059
--------------
INVESTMENT COMPANIES (53.5%)
519,365 S&P 500 Depository Receipt....................... 41,597,890
2,052,139 Dreyfus Treasury Cash Management................. 2,052,139
--------------
Total Investment Companies........................................... 43,650,029
--------------
TOTAL (COST -- $80,832,028)(A) (102.2%).............................. $83,339,088
==============
</TABLE>
- ------------
Percentages indicated are based on net assets of $81,567,393.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................................. $2,778,432
Unrealized depreciation.............................................. (271,372)
----------
Net unrealized appreciation.......................................... $2,507,060
==========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 77
<PAGE> 82
MARKET RETURN FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (4.9%)
317,361 Pacific Southwest 97-1, 6.06%, 6/17/02 (a)........ $ 316,964
215,867 Contimortgage Home Equity 1996-3 A1, 6.76%,
2/15/11 (a)....................................... 216,036
-----------
Total Asset Backed Securities......................................... 533,000
-----------
COLLATERIZED MORTGAGE OBLIGATIONS (16.0%)
400,000 Merrill Lynch Mortgage Investors 91-F A2, 6.28%,
6/15/06 (a)...................................... 405,360
450,000 Federal National Mortgage Assn. 93-155D, 5.50%,
2/25/14 (a)...................................... 446,036
125,397 Federal National Mortgage Assn. 89-48 G, 8.00%,
3/25/18 (a)....................................... 126,151
99,726 Federal Home Loan Mtg. Corp. 80-E, 8.60%, 6/15/19
(a)............................................... 100,300
400,000 Federal Home Loan Mtg. Corp. 61-F, 6.11%,
6/17/20........................................... 400,875
247,423 Federal National Mortgage Assn. G92-25F, 6.17%,
4/25/21 (a)....................................... 247,974
3,217 Salomon Brothers Mtg. Securities 1994-9, 7.00%,
7/25/24 (a)....................................... 3,215
-----------
Total Collateralized Mortgage Obligations............................. 1,729,911
-----------
CORPORATE BONDS (9.7%)
Automobiles (1.0%)
100,000 General Motors, 9.13%, 7/15/01 (a)................ 107,625
-----------
Bankings (1.3%)
150,000 Nationsbank Corporation, 5.75%, 1/17/01 (a)....... 144,563
-----------
Financial (7.4%)
300,000 AT & T Capital Corporation, 5.61%, 2/1/99 (a)..... 295,125
100,000 Commercial Credit, 5.55%, 2/15/01 (a)............. 95,375
100,000 Lehman Brothers Holding, 8.38%, 2/15/99 (a)....... 102,875
300,000 Lehman Brothers Holdings, 7.63%, 7/15/99 (a)...... 305,625
-----------
799,000
-----------
Total Corporate Bonds................................................. 1,051,188
-----------
</TABLE>
See notes to financial statements.
78 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 83
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
U.S. GOVERNMENT DEBENTURES (13.8%)
Federal Home Loan Mortgage Corporation (13.8%)
1,500,000 5.33%, 5/13/97 (a)................................ $ 1,497,335
-----------
U.S. GOVERNMENT AGENCIES (43.4%)
Federal Home Loan Bank (27.8%)
1,500,000 5.32%, 5/5/97 (a)................................. 1,499,113
1,500,000 5.37%, 5/6/97..................................... 1,498,881
-----------
2,997,994
-----------
Federal National Mortgage Association (14.3%)
1,000,000 5.37%, 5/02/97.................................... 999,851
229,504 11.00%, 10/1/06 (a)............................... 246,758
293,268 ARM, 7.59%, 6/1/25 (a)............................ 307,474
-----------
1,554,083
-----------
Government National Mortgage Association (1.3%)
134,262 ARM, 7.13%, 6/20/18............................... 136,821
-----------
Total U.S. Government Agencies........................................ 4,688,898
-----------
U.S. TREASURY NOTES (3.0%)
320,000 5.50%, 7/31/97 (a)................................ 320,112
-----------
Total U.S. Treasury Notes............................................. 320,112
-----------
U.S. TREASURY BILLS (3.7%)
400,000 5.015%, 5/22/97................................... 398,830
-----------
Total U.S. Treasury Bills............................................. 398,830
-----------
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 79
<PAGE> 84
MARKET RETURN FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL AMOUNT SECURITY DESCRIPTION MARKET VALUE
----------------- -------------------------------------------------- ------------
<C> <S> <C>
INVESTMENT COMPANIES (4.7%)
1,900 Standard & Poor 500 Depositary Receipt............ $ 152,178
357,648 Dreyfus Treasury Cash Management.................. 357,648
-----------
Total Investment Companies............................................ 509,826
-----------
TOTAL (COST -- $10,717,500) (B) (99.2%)............................... $10,729,100
===========
</TABLE>
- ------------
Percentages indicated are based on net assets of $10,813,804.
(a) A portion of the security is held by the custodian in a segregated account
as collateral for open futures contracts.
At April 30, 1997, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER OF EXPIRATION CURRENT UNREALIZED
CONTRACTS CONTRACT TYPE DATE MARKET VALUE APPRECIATION
- ---------- -------------------------- ----------- ------------- ------------
<S> <C> <C> <C> <C>
1 S & P 500 Future June 1998 06/19/97 $401,400 $3,350
25 S&P 500 Future September 09/18/97 10,135,000 2,475
1998
----------- ------
$10,536,400 $5,825
=========== ======
</TABLE>
(b) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................................ $16,928
Unrealized depreciation............................................ (5,328)
-------
Net unrealized appreciation........................................ $11,600
=======
</TABLE>
See notes to financial statements.
80 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 85
NOTES TO FINANCIAL STATEMENTS
April 30, 1997 (Unaudited)
1. ORGANIZATION
Payden & Rygel Global Short Bond Fund, Payden & Rygel Global Fixed
Income Fund, Payden & Rygel International Bond Fund, Payden & Rygel
Short Duration Tax Exempt Fund, Payden & Rygel Tax Exempt Bond Fund,
Payden & Rygel U.S. Treasury Fund, Payden & Rygel Limited Maturity
Fund, Payden & Rygel Short Bond Fund, Payden & Rygel Intermediate Bond
Fund, Payden & Rygel Investment Quality Bond Fund (formerly the
Opportunity Fund), Payden & Rygel Market Return Fund, Payden & Rygel
Total Return Fund, Payden & Rygel Global Balanced Fund, Payden & Rygel
International Equity Fund and Payden & Rygel Growth & Income Fund (the
"Funds") are non-diversified series of Payden & Rygel Investment Group
("Group"), a no-load, open-end management investment company organized
as a Massachusetts business trust on January 22, 1992 and registered
under the Investment Company Act of 1940, as amended.
The objective of the Global Short Bond, Global Fixed Income,
International Bond, U.S. Treasury, Limited Maturity, Short Bond,
Intermediate Bond, Investment Quality Bond and Total Return Funds is to
realize a high level of total return consistent with preservation of
capital. The Limited Maturity Fund further seeks to earn a total return
that, over time, is greater than that available from money market
funds. In order to achieve these objectives, each Fund invests
primarily in debt obligations. The Limited Maturity, Short Bond,
Intermediate Bond, Investment Quality Bond and Total Return Funds
invest in debt obligations of the U.S. Treasury, U.S. government
agencies, U.S. dollar-denominated foreign and domestic public
corporations and mortgage-backed securities. The U.S. Treasury Fund
primarily invests in U.S. Treasury securities guaranteed by the full
faith and credit of the United States Government.
The Global Short Bond, Global Fixed Income and International Bond Funds
invest primarily in U.S. and foreign government notes and bonds and
U.S. and foreign corporate debt securities. The Global Short Bond,
Global Fixed Income, International Bond and Total Return Funds can also
have substantial investments in foreign currency contracts. The
objective of the Short Duration Tax Exempt and Tax Exempt Bond Funds is
to earn federal tax-free income by investing in debt obligations which
are exempt from federal income tax and consistent with preservation of
capital. The objective of the Market Return Fund is to provide a total
return in excess of the Standard & Poor's 500 Stock Index. To achieve
this objective, the Market Return Fund invests primarily in
equity-based investments, such as stock index futures contracts and
equity swap contracts, as well as in fixed income securities.
SEMI-ANNUAL REPORT 81
<PAGE> 86
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1997 (Unaudited)
The objective of the Global Balanced Fund is to realize a high level of
total return consistent with preservation of capital. The Global
Balanced Fund can also have investments in foreign currency contracts.
This Fund invests in common stocks, bonds and money market instruments
of both domestic and foreign issuers. The objective of the
International Equity Fund is long-term capital appreciation. This Fund
invests in equity securities (common and preferred stock) of issuers
whose corporate headquarters are outside the United States ("foreign
equities").
The Growth & Income Fund seeks to provide growth of capital and some
current income. To achieve these objectives the Growth & Income Fund
normally invests approximately half of its assets in the ten stocks in
the Dow Jones Industrial Average with the highest dividend yields. The
remaining assets are invested in securities intended to replicate the
total return of the Standard & Poor's 500 Stock Price Index ("S&P 500
Index"), normally Standard & Poor's Depository Receipts or additional
common stocks. There can, however, be no assurance that any of the
Funds' investment objectives will be achieved.
The Funds offer both Class A and Class B shares; however, as of April
30, 1997, there have been no Class B shares issued. Class B shares are
subject to certain fees under a shareholder service plan (the "Plan");
Class A shares do not participate in the Plan. Both classes of shares
have identical rights and privileges except with respect to the
shareholder service fees borne by Class B and voting rights on matters
affecting a single class. The Group is authorized to issue an unlimited
number of shares of each class which are units of beneficial interest
with a par value of $.001 per share.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
by the Funds:
SECURITIES VALUATION
---------------------------------
Domestic and foreign fixed income securities and other assets for which
market quotations are readily available (other than obligations with
remaining maturities of 60 days or less) are valued on the basis of
quotations obtained from dealers or pricing services with consideration
of such factors as institutional-sized trading in similar groups of
securities, quality, yield, coupon rate, maturity, type of issue,
trading characteristics and other market data. Options, futures, swaps
and other similar assets are valued at the last available bid price in
the case of listed securities or on the basis of information provided
by the institution with which the Fund entered into the transaction in
the case of other securities. Investments in investment companies are
valued at their net asset values as reported by such companies.
82 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 87
Securities for which market quotations are not readily available are
valued at fair value as determined in good faith pursuant to guidelines
established by the Board of Trustees with reference to fixed income
securities the prices of which are more readily obtainable and the
durations of which are comparable to the securities being valued. Debt
securities with remaining maturities of sixty days or less are valued
on an amortized cost basis unless Payden & Rygel (the "Adviser")
determines that such basis does not represent fair value. Non-U.S.
dollar securities are translated into U.S. dollars using the spot
exchange rate at the close of the London market. The differences
between cost and market of investments are reflected as either
unrealized appreciation or depreciation.
Equity securities listed or traded on any domestic (U.S.) securities
exchange are valued at the last sale price or, if there have been no
sales during the day, at the last bid prices. Securities traded only on
the over-the-counter market are valued at the latest bid prices.
Foreign equity securities are valued based upon the last sale price on
the foreign exchange or market on which they are principally traded as
of the close of the appropriate exchange or, if there have been no
sales during the day, at the last bid prices.
INVESTMENT TRANSACTIONS AND RELATED INCOME
----------------------------------------------------------------
Investment transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis. All premiums and discounts are amortized or accreted for
both financial statement and tax reporting purposes as required by
Federal income tax regulations. Dividend income is recorded on the
ex-dividend date. Realized gains or losses on investment transactions
are determined on the identified cost basis.
FOREIGN CURRENCY TRANSLATION
---------------------------------------------
The accounting records of the Funds are maintained in U.S. dollars. The
Global Short Bond, Global Fixed Income, International Bond and Total
Return Funds may purchase debt obligations that are payable in a
foreign currency. For these four Funds, investment securities, other
assets and liabilities denominated in a foreign currency are translated
into U.S. dollars at the current exchange rate. Purchases and sales of
securities, income receipts and expense payments are translated into
U.S. dollars at the exchange rate on the dates of the transactions.
Each of these four Funds isolates that portion of the results of
operations resulting from changes in foreign exchange rates on
investments from the fluctuation arising from changes in market prices
of securities held.
SEMI-ANNUAL REPORT 83
<PAGE> 88
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1997 (Unaudited)
Reported net realized foreign exchange gains or losses arise from sales
and maturities of securities, purchases and sales of foreign
currencies, currency gains or losses realized between the trade and
settlement dates of securities transactions, and the difference between
the amount of interest or expenses recorded on each of these Fund's
books and the U.S. dollar equivalent of the amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities, including investments
in securities, resulting from changes in the exchange rates.
REPURCHASE AGREEMENTS
-------------------------------------
Any of the Funds may enter into repurchase agreements (agreements to
purchase U.S. Treasury notes and bills, subject to the seller's
agreement to repurchase them at a specified time and price) with
well-established registered securities dealers or banks. Repurchase
agreements are the equivalent of loans by the Funds. With respect to
such agreements, it is each Fund's policy to take possession of the
underlying securities and, on a daily basis, mark-to-market such
securities to ensure that the value, including accrued interest, is at
least equal to the amount to be repaid to each Fund under each
agreement.
OPTIONS TRANSACTIONS
----------------------------------
When any of the Funds (except the U.S. Treasury Fund which does not
invest in any option transactions) writes a covered call or put option,
an amount equal to the premium received is included in that Fund's
statement of assets and liabilities as a liability. The amount of the
liability is subsequently marked-to-market to reflect the current
market value of the option. If an option expires on its stipulated
expiration date or if the Fund enters into a closing purchase
transaction, a gain or loss is realized. If a written call option is
exercised, a gain or loss is realized for the sale of the underlying
security and the proceeds from the sale are increased by the premium
originally received. If a written put option is exercised, the cost of
the security acquired is decreased by the premium originally received.
When any of the Funds (except the U.S. Treasury Fund which does not
invest in any option transactions) purchases a call or put option, an
amount equal to the premium paid is included in that Fund's statement
of assets and liabilities as an investment, and is subsequently
marked-to-market to reflect the current market value of the option. If
an option expires on the stipulated expiration date or if a Fund enters
into a closing sale transaction, a gain or loss is realized. If a Fund
exercises a call option, the cost of the security acquired is increased
by the premium paid for the call. If a Fund exercises a put option, a
gain or loss is realized from the sale of the underlying
84 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 89
security, and the proceeds from such sale are decreased by the premium
originally paid. Written and purchased options are non-income producing
securities.
The option techniques utilized are to hedge against changes in interest
rates, foreign currency exchange rates or securities prices in order to
establish more definitely the effective return on securities or
currencies held or intended to be acquired by a Fund, to reduce the
volatility of the currency exposure associated with investment in non-
U.S. securities, or as an efficient means of adjusting exposure to the
bond, equity and currency markets and not for speculation.
FUTURES CONTRACTS
-------------------------------
Any Fund (except the U.S. Treasury Fund) may purchase or sell futures
contracts and options on futures contracts which provide for the future
sale by one party and purchase by another party of a specified quantity
of a financial instrument or foreign currency at a fixed price on a
future date. Upon entering into such a contract, a Fund is required to
deposit and maintain as collateral such initial margin as required by
the exchange on which the contract is traded. Pursuant to the contract,
that Fund agrees to receive from or pay to the broker an amount equal
to the daily fluctuations in the value of the contract. Such receipts
or payments are known as variation margin and are recorded as
unrealized gains or losses by that Fund. When the contract is closed,
that Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the
value at the time it was closed. The Funds invest in futures contracts
to hedge against anticipated future changes in interest or exchange
rates or security prices. The potential risk to the Funds is that the
change in value of the underlying securities may not correlate to the
change in value of the contracts.
The Market Return, Total Return, Global Balanced, Growth & Income and
International Equity Funds may invest in stock index futures contracts
which are an agreement pursuant to which two parties agree to take or
make delivery of an amount of cash equal to the difference between the
value of the index at the close of the last trading day of the contract
and the price at which the index contract was originally written.
Variation margin accounting procedures as discussed above apply to
these index futures contracts. Each Fund invests in these futures
contracts to permit a Fund to meet its objectives at a lower cost than
investing directly in equity securities, while permitting the
equivalent of an investment in a portfolio of equity securities. The
potential risk to a Fund is that the change in value of the underlying
index may not correlate to the change in value of the contracts.
SEMI-ANNUAL REPORT 85
<PAGE> 90
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1997 (Unaudited)
EQUITY SWAP CONTRACTS
-------------------------------------
The Market Return, Total Return, Global Balanced, Growth & Income and
International Equity Funds may enter into equity swap transactions
which involve an agreement between the Fund and another party to
exchange payments calculated as if they were interest on a fictitious
("notional") principal amount. A Fund will typically pay a floating
rate of interest and receive the total return of a specified equity
index. A Fund usually enters into such transactions on a "net" basis,
with the Fund receiving or paying, as the case may be, only the net
amounts of the two payment streams. The net amount of the excess or
deficiency, if any, of the Fund's obligations over its entitlements
with respect to each swap is accrued on a daily basis and is recorded
as an unrealized gain or loss by that Fund.
These Funds invest in swap transactions to permit the Funds to meet
their objectives at a lower cost than investing directly in equity
securities, while permitting the equivalent of an investment in a
portfolio of equity securities. The potential risk to a Fund is that
the swap position may correlate imperfectly with the markets or the
asset or liability being hedged.
FORWARD CURRENCY CONTRACTS
--------------------------------------------
The Global Short Bond, Global Fixed Income, International Bond, Total
Return, Global Balanced and International Equity Funds each may enter
into forward foreign currency exchange contracts for the purchase or
sale of a specific foreign currency at a fixed price on a future date.
Risks may arise upon entering these contracts from the potential
inability of counter parties to meet the terms of their contracts and
from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. These six Funds will enter into forward
contracts as a hedge against specific transactions or portfolio
positions to protect against adverse currency movements. The forward
foreign currency exchange contracts are adjusted by the daily exchange
rate of the underlying currency and any gains or losses are recorded
for financial statement purposes as unrealized until the contract
settlement date, at which time a Fund records a realized gain or loss
equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
DELAYED DELIVERY TRANSACTIONS
----------------------------------------------
Any of the Funds may purchase securities on a when issued or delayed
delivery basis and sell securities on a delayed delivery basis. These
transactions involve a commitment by a Fund to purchase or sell
securities for a predetermined price or yield with payment and delivery
taking place more than three days in the future, or
86 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 91
after a period longer than the customary settlement period for that
type of security. No interest will be earned by a Fund on such
purchases until the securities are delivered; however, the market value
may change prior to delivery.
DISTRIBUTIONS TO SHAREHOLDERS
--------------------------------------------
Distributions to shareholders are recorded on the ex-dividend date.
Dividends from net investment income and net realized gains on foreign
currency transactions are declared and paid monthly, except for the
International Bond Fund which are paid quarterly, and net realized
gains on investments, if any, are declared and distributed at least
annually. All distributions are paid in the form of additional shares
unless cash payment is requested.
Distributions to shareholders are determined in accordance with income
tax regulations which may differ from generally accepted accounting
principles.
FEDERAL INCOME TAXES
-----------------------------------
It is the policy of each Fund to meet the requirements for
qualification as a regulated investment company as defined in
applicable sections of the Internal Revenue Code (the "Code"), and to
make distributions of net investment income and net realized gains
sufficient to relieve it from all Federal income or excise taxes.
Accordingly, no provision for Federal income or excise tax is
necessary.
Each Fund files a tax return annually using tax accounting methods
required under provisions of the Code which may differ from generally
accepted accounting principles, the basis on which these financial
statements are prepared. The differences arise primarily from the
treatment of foreign currency transactions and futures contracts and
the deferral of certain losses under Federal income tax regulations.
Accordingly, the amount of net investment income and net realized gains
or losses reported in these financial statements may differ from that
reported in each Fund's tax return and, consequently, the character of
distributions to shareholders reported in the financial highlights may
differ from that reported to shareholders for Federal income tax
purposes. Distributions which exceed net investment income and net
realized gains for financial reporting purposes but not for tax
purposes, if any, are shown as distributions in excess of net
investment income and net realized gains from investments in the
accompanying statements.
ESTIMATES
--------------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that
SEMI-ANNUAL REPORT 87
<PAGE> 92
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1997 (Unaudited)
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates.
OTHER
---------------
Shared expenses incurred by the Group are allocated among the series of
the Group on the basis of relative net assets. Series-specific expenses
are charged to each series as incurred. Fund expenses not specific to
any class will be allocated between the classes based upon net assets
of each class. Class-specific expenses will be charged to each class as
incurred.
3. PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments (excluding short-term investments
and long-term U.S. Government securities) for the period ended April
30, 1997 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Global Short Bond Fund..................... $172,244,182 $ 71,098,180
Global Fixed Income Fund................... 449,094,212 517,517,932
International Bond Fund.................... 23,757,292 19,537,726
Short Duration Tax Exempt Fund............. 4,609,965 9,632,770
Tax Exempt Bond Fund....................... 4,621,641 6,683,102
U.S. Treasury Fund......................... 0 0
Limited Maturity Fund...................... 29,338,234 4,200,000
Short Bond Fund............................ 42,514,704 3,957,960
Intermediate Bond Fund..................... 26,349,640 31,172,517
Investment Quality Bond Fund............... 90,295,590 65,606,915
Total Return Fund.......................... 21,155,157 8,784,017
Global Balanced Fund....................... 9,864,770 2,108,548
International Equity Fund.................. 8,895,473 1,454,221
Growth & Income Fund....................... 79,530,524 750,230
Market Return Fund......................... 4,860,515 2,511,555
</TABLE>
88 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 93
Purchases and sales of long-term U.S. Government securities for the
period ended April 30, 1997 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Global Short Bond Fund.................... $ 30,975,429 $ 4,477,574
Global Fixed Income Fund.................. 312,880,141 257,390,545
International Bond Fund................... 1,046,355 777,768
Short Duration Tax Exempt Fund............ 0 0
Tax Exempt Bond Fund...................... 0 0
U.S. Treasury Fund........................ 26,555,891 28,144,604
Limited Maturity Fund..................... 50,467,062 56,005,430
Short Bond Fund........................... 52,724,414 92,394,719
Intermediate Bond Fund.................... 19,944,805 29,514,121
Investment Quality Bond Fund.............. 30,265,668 24,821,231
Total Return Fund......................... 0 0
Global Balanced Fund...................... 5,352,563 2,933,965
International Equity Fund................. 0 0
Growth & Income Fund...................... 0 0
Market Return Fund........................ 2,947,936 5,062,193
</TABLE>
The Global Balanced Fund's activity in written options for the period
ended April 30, 1997 was as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACTS
CONTRACTS PREMIUM
--------- ---------
<S> <C> <C>
Options outstanding at beginning of period...... 0 $ 0
Options sold.................................... 38 29,391
Options canceled in closing transactions........ 38 5,344
Options expired prior to exercise............... 0 0
-- --------
Options outstanding at end of period............ 0 $ 0
</TABLE>
None of the other Funds had activity in written options for the period
ended April 30, 1997.
4. UNAMORTIZED ORGANIZATION COSTS
The organization costs incurred on behalf of the Funds listed below are
being reimbursed to Payden & Rygel and are being amortized on a
straight-line basis over
SEMI-ANNUAL REPORT 89
<PAGE> 94
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1997 (Unaudited)
a period not exceeding five years. The organization costs and the
amounts reimbursed as of April 30, 1997 are as follows:
<TABLE>
<CAPTION>
CUMULATIVE AMORTIZED
ORGANIZATION ORGANIZATION
COSTS EXPENSES
------------ ------------
<S> <C> <C>
Global Short Bond Fund...................... $ 2,046 $ 792
Global Fixed Income Fund.................... 90,199 84,014
International Bond Fund..................... 5,322 2,648
Short Duration Tax Exempt Fund.............. 6,170 4,527
Tax Exempt Bond Fund........................ 15,168 11,271
U.S. Treasury Fund.......................... 3,926 2,342
Total Return Fund........................... 3,254 597
Global Balanced Fund........................ 4,063 678
International Equity Fund................... 3,798 654
Growth & Income Fund........................ 11,447 1,345
Market Return Fund.......................... 49,138 15,441
</TABLE>
Any redemption by Payden & Rygel of its initial investment of $100,000
will reduce the reimbursement by a prorata portion of any of the then
unamortized organization costs.
5. RELATED PARTY TRANSACTIONS
Investment advisory services are provided to the Funds by Payden &
Rygel. Under the terms of the investment advisory agreement Payden &
Rygel is entitled to receive fees monthly, computed on the average
daily net assets of each of the Funds separately at an annualized rate.
The rate for the Global Short Bond, Global Fixed Income and
International Bond Funds is .30% on net assets up to $2 billion,
decreasing to .25% on net assets over $2 billion. The rate for the
Short Duration Tax Exempt and Tax Exempt Bond Funds is .32% on net
assets up to $500 million, decreasing in increments to .25% on net
assets over $1 billion. The rate for the U.S. Treasury, Limited
Maturity, Short Bond, Intermediate Bond, Investment Quality Bond,
Market Return and Total Return Funds is .28% on net assets up to $1
billion, decreasing to .25% on net assets over $1 billion. The rate for
the Global Balanced Fund is 0.50% on net assets up to $1 billion and
0.40% on net assets over $1 billion. The rate for the International
Equity Fund is 0.60% on net assets up to $1 billion and 0.45% on net
assets over $1 billion. The rate for the Growth & Income Fund is 0.50%
on net assets up to $2 billion and 0.30% on net assets over $2 billion.
90 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 95
Payden & Rygel has voluntarily agreed to permanently waive 0.20% of its
fee for advisory services for the Growth & Income Fund through at least
October 31, 1997. In addition, Payden & Rygel has agreed to guarantee
that, for so long as it acts as investment adviser to a Fund, the
expenses of a Fund attributable to Class A Shares, including advisory
fees (but excluding interest, taxes, portfolio transaction expenses,
blue sky fees, 12b-1 plan fees [if any such plan is adopted in the
future] and extraordinary expenses) will not exceed the percentage
indicated below of that Fund's average daily net assets on an
annualized basis. In addition, Payden & Rygel has voluntarily agreed to
temporarily limit each Fund's total expenses, including advisory fees,
to the percentage indicated below of that Fund's average daily net
assets on an annualized basis through April 30, 1997 (exclusive of
interest, taxes, portfolio transaction expenses, blue sky fees, 12b-1
plan fees [if any such plan is adopted in the future] and extraordinary
expenses).
<TABLE>
<CAPTION>
VOLUNTARY
EXPENSE EXPENSE
GUARANTEE LIMIT
--------- ---------
<S> <C> <C>
Global Short Bond Fund.......................... 0.70% 0.45%
Global Fixed Income Fund........................ 0.70% 0.70%
International Bond Fund......................... 0.70% 0.70%
Short Duration Tax Exempt Fund.................. 0.60% 0.45%
Tax Exempt Bond Fund............................ 0.60% 0.45%
U.S. Treasury Fund.............................. 0.60% 0.45%
Limited Maturity Fund........................... 0.60% 0.30%
Short Bond Fund................................. 0.60% 0.40%
Intermediate Bond Fund.......................... 0.60% 0.45%
Investment Quality Bond Fund.................... 0.60% 0.45%
Total Return Fund............................... 0.60% 0.45%
Global Balanced Fund............................ 0.85% 0.70%
International Equity Fund....................... 1.05% 0.90%
Growth & Income Fund............................ 0.80% 0.54%
Market Return Fund.............................. 0.60% 0.45%
</TABLE>
Each Fund remains liable to Payden & Rygel for expenses subsidized in
any fiscal year so long as any reimbursement will not cause the annual
expense ratio for the year in which it is made to exceed the amount of
the expense guarantee or expense limit (whichever is in effect at the
time of reimbursement). The deferred expense subsidies, as identified
in the statements of assets and liabilities, represent the cumulative
amount of expenses subsidized for the Funds and will be recognized as
SEMI-ANNUAL REPORT 91
<PAGE> 96
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1997 (Unaudited)
net expense in the statements of operations in future periods, if
expense limits permit.
Payden & Rygel has incurred certain expenses in connection with the
offering of multiple class shares that will be charged to the Group
upon the initial sale of Class B shares to the public. Such expenses,
approximately $41,000 as of April 30, 1997, will be allocated to all
series of the Group that are included in the initial offering of Class
B shares and amortized as a class specific expense over a three year
period.
For the Global Balanced and International Equity Funds, Payden & Rygel
has entered into a sub-advisory agreement with Scottish Widows
Investment Management ("Sub-advisor"). The Sub-Advisor is a wholly
owned subsidiary of Scottish Widows Fund and Life Assurance Society, a
mutual company chartered in 1815. Under terms of the sub-advisor
agreement, the SubAdvisor receives fees monthly from Payden & Rygel at
a rate of 0.40% on the first $1 billion of average daily net assets and
0.30% on the average daily net assets over $1 billion. In the case of
the Global Balanced Fund, fees are based on the average daily net
assets allocated to the Sub-Advisor. The Sub-Advisor's fee does not
represent a separate or additional charge against the Funds.
Payden & Rygel Distributors, a subsidiary of Payden & Rygel, serves as
the distributor for the Funds and is not entitled to receive any fees
from the Group under the distribution agreement.
Treasury Plus, Inc., a wholly owned subsidiary of Payden & Rygel,
serves as administrator to the Group. Under the terms of the
administration agreement, Treasury Plus, Inc. receives fees monthly,
computed on the average daily net assets of the Group at an annualized
rate of .06%.
Investors Fiduciary Trust Company ("IFTC"), a Missouri trust company,
serves as transfer agent to the Funds. Under the terms of the transfer
agency agreement, IFTC is entitled to receive fees based upon a
specified amount per shareholder with specified minimum-per-Fund
amounts and surcharges, plus certain out-of-pocket expenses. IFTC also
serves as fund accountant. Under the terms of the fund accounting
agreement, IFTC receives fees based on specified minimum-per-Group
amounts, plus certain out-of-pocket expenses.
All expenses incurred by the Funds are paid directly by Payden & Rygel
subject to subsequent reimbursement by the Funds. For Funds which have
not fully reimbursed Payden & Rygel for expenses paid on their behalf
as of April 30, 1997, the
92 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 97
cumulative amounts of expenses paid by Payden & Rygel and the
reimbursement of expenses by the Funds are as follows:
<TABLE>
<CAPTION>
CUMULATIVE TOTAL OF CUMULATIVE TOTAL OF
EXPENSES PAID BY REIMBURSEMENT
PAYDEN & RYGEL OF EXPENSES
------------------- -------------------
<S> <C> <C>
U.S. Treasury Fund............. $ 185,009 163,088
Investment Quality Bond Fund... 268,400 145,913
Total Return Fund.............. 27,473 13,500
Global Balanced Fund........... 34,584 21,000
International Equity Fund...... 36,218 24,500
Market Return Fund............. 150,941 15,100
</TABLE>
Certain officers and/or trustees of the Group are affiliated with
Payden & Rygel, Payden & Rygel Distributors and/or Treasury Plus, Inc.
Such officers and trustees receive no fees from the Funds for serving
as officers and/or trustees of the Group.
SEMI-ANNUAL REPORT 93
<PAGE> 98
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
GLOBAL SHORT
BOND FUND
==============================
SIX MONTHS
ENDED PERIOD
APRIL 30, ENDED
1997 OCTOBER 31,
(UNAUDITED) 1996 (A)
=============== ===========
<S> <C> <C>
Net asset value -- beginning of period.............................. $ 10.07 $ 10.00
------------ ----------
Income (loss) from investment activities:
Net investment income............................................. 0.50 0.05
Net realized and unrealized gains (losses)........................ (0.18) 0.06
------------ ----------
Total from investment activities............................. 0.32 0.11
------------ ----------
Distributions to shareholders:
From net investment income........................................ (0.29) (0.04)
In excess of net investment income................................
From net realized gains...........................................
In excess of net realized gains...................................
------------ ----------
Total distributions to shareholders.......................... (0.29) (0.04)
------------ ----------
Net asset value -- end of period.................................... $ 10.10 $ 10.07
============ ==========
Total return........................................................ 3.25%* 1.10%*
============ ==========
Ratios/supplemental data:
Net assets, end of period (000)................................... $ 153,877 $28,913
Ratio of expenses to average net assets........................... 0.45%** 0.45%**
Ratio of net investment income to average net assets.............. 4.95%** 4.86%**
Ratio of expenses to average net assets prior to subsidies........ 0.54%** 2.31%**
Ratio of net investment income to average net assets prior to
subsidies...................................................... 4.86%** 3.00%**
Portfolio turnover rate........................................... 218.34%** 0.00%**
- ------------
(a) The Fund commenced operations on September 18, 1996.
(b) The Fund commenced operations on September 1, 1992.
* Not annualized
** Annualized
</TABLE>
See notes to financial statements.
94 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 99
<TABLE>
<CAPTION>
GLOBAL FIXED INCOME FUND
===========================================================================================
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
APRIL 30, ENDED ENDED ENDED ENDED ENDED
1997 OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 1994 1993 1992 (B)
========== =========== =========== =========== =========== ============
<S> <C> <C> <C> <C> <C> <C>
$ 10.35 $ 10.32 $ 9.77 $ 10.62 $ 9.96 $ 10.00
---------- ---------- ---------- ---------- ---------- ----------
0.70 0.54 0.89 0.44 0.46 0.05
(0.48) 0.19 0.53 (0.65) 0.69 (0.02)
---------- ---------- ---------- ---------- ---------- ----------
0.22 0.73 1.42 (0.21) 1.15 0.03
---------- ---------- ---------- ---------- ---------- ----------
(0.43) (0.70) (0.87) (0.42) (0.46) (0.05)
(0.02)
(0.22) (0.03)
---------- ---------- ---------- ---------- ---------- ----------
(0.43) (0.70) (0.87) (0.64) (0.49) (0.07)
---------- ---------- ---------- ---------- ---------- ----------
$ 10.14 $ 10.35 $ 10.32 $ 9.77 $ 10.62 $ 9.96
========== ========== ========== ========== ========== ==========
2.18%* 7.41% 15.10% -2.09% 11.88% 0.31%*
========== ========== ========== ========== ========== ==========
$597,510 $ 651,165 $ 540,041 $ 430,210 $ 296,958 $ 20,097
0.49%** 0.53% 0.50% 0.55% 0.70% 0.70%**
5.77%** 5.67% 8.94% 4.24% 4.22% 4.62%**
0.49%** 0.53% 0.50% 0.55% 0.68% 2.29%**
5.77%** 5.67% 8.94% 4.24% 4.24% 3.03%**
254.87%** 175.68% 226.72% 348.12% 252.97% 53.98%**
</TABLE>
SEMI-ANNUAL REPORT 95
<PAGE> 100
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
INTERNATIONAL BOND FUND
================================================
SIX MONTHS
ENDED APRIL 30, YEAR ENDED PERIOD ENDED
1997 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 (C)
=============== =========== ============
<S> <C> <C> <C>
Net asset value -- beginning of period....... $ 10.39 $ 10.04 $ 10.00
------------ ---------- ----------
Income (loss) from investment activities:
Net investment income...................... 0.25 0.03 0.15
Net realized and unrealized gains
(losses)................................ (0.58) 0.42 0.09
------------ ---------- ----------
Total from investment activities...... (0.33) 0.45 0.24
------------ ---------- ----------
Distributions to shareholders:
From net investment income................. (0.10) (0.03) (0.15)
In excess of net investment income.........
From net realized gains.................... (0.07) (0.01) (0.04)
In excess of net realized gains............ (0.06) (0.01)
------------ ---------- ----------
Total distributions to shareholders... (0.17) (0.10) (0.20)
------------ ---------- ----------
Net asset value -- end of period............. $ 9.89 $ 10.39 $ 10.04
============ ========== ==========
Total return................................. -3.20%* 4.47% 2.43%*
============ ========== ==========
Ratios/supplemental data:
Net assets, end of period (000)............ $22,432 $18,364 $ 19,194
Ratio of expenses to average net assets.... 0.70%** 0.70% 0.70%**
Ratio of net investment income to average
net assets.............................. 5.83%** 5.61% 5.24%**
Ratio of expenses to average net assets
prior to subsidies...................... 0.78%** 0.98% 1.64%**
Ratio of net investment income to average
net assets prior to subsidies........... 5.75%** 5.33% 4.30%**
Portfolio turnover rate.................... 218.63%** 216.80% 96.62%**
- ------------
(c) The Fund commenced operations on April 1, 1995.
(d) The Fund commenced operations on September 1, 1994.
* Not annualized
** Annualized
</TABLE>
96 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 101
<TABLE>
<CAPTION>
SHORT DURATION TAX EXEMPT FUND
================================================================
SIX MONTHS
ENDED APRIL 30, YEAR ENDED YEAR ENDED PERIOD ENDED
1997 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 1994 (D)
=============== =========== =========== ============
<S> <C> <C> <C> <C>
$ 10.01 $ 10.08 $ 9.93 $ 10.00
------------ ---------- ---------- ----------
0.19 0.38 0.42 0.04
(0.01) (0.06) 0.15 (0.07)
------------ ---------- ---------- ----------
0.18 0.32 0.57 (0.03)
------------ ---------- ---------- ----------
(0.19) (0.38) (0.42) (0.04)
(0.01)
------------ ---------- ---------- ----------
(0.19) (0.39) (0.42) (0.04)
------------ ---------- ---------- ----------
$ 10.00 $ 10.01 $ 10.08 $ 9.93
============ ========== ========== ==========
1.82%* 3.28% 5.88% -0.35%*
============ ========== ========== ==========
$32,420 $36,336 $16,019 $ 20,150
0.45%** 0.45% 0.45% 0.45%**
3.84%** 3.81% 4.12% 3.20%**
0.66%** 0.70% 0.91% 2.87%**
3.63%** 3.56% 3.66% 0.78%**
29.95%** 34.72% 79.81% 0.00%**
</TABLE>
SEMI-ANNUAL REPORT 97
<PAGE> 102
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
TAX EXEMPT BOND FUND
===============================================================
SIX MONTHS YEAR YEAR PERIOD
ENDED APRIL 30, ENDED ENDED ENDED
1997 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 1994 (E)
=============== =========== =========== ===========
<S> <C> <C> <C> <C>
Net asset value -- beginning of
period........................ $ 9.47 $ 9.59 $ 8.90 $ 10.00
------------ ---------- ---------- ----------
Income (loss) from investment
activities:
Net investment income......... 0.22 0.45 0.46 0.33
Net realized and unrealized
gains (losses)............. (0.06) (0.12) 0.69 (1.10)
------------ ---------- ---------- ----------
Total from investment
activities............ 0.16 0.33 1.15 (0.77)
------------ ---------- ---------- ----------
Distributions to shareholders:
From net investment income.... (0.22) (0.45) (0.46) (0.33)
In excess of net investment
income.....................
From net realized gains.......
In excess of net realized
gains......................
------------ ---------- ---------- ----------
Total distributions to
shareholders.......... (0.22) (0.45) (0.46) (0.33)
------------ ---------- ---------- ----------
Net asset value -- end of
period........................ $ 9.41 $ 9.47 $ 9.59 $ 8.90
============ ========== ========== ==========
Total return.................... 1.74%* 3.52% 13.25% -7.85%*
============ ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period
(000)...................... $48,365 $49,862 $40,052 $25,474
Ratio of expenses to average
net assets................. 0.45%** 0.45% 0.45% 0.50%**
Ratio of net investment income
to average net assets...... 4.75%** 4.73% 4.97% 4.47%**
Ratio of expenses to average
net assets prior to
subsidies.................. 0.60%** 0.61% 0.74% 1.07%**
Ratio of net investment income
to average net assets prior
to subsidies............... 4.60%** 4.57% 4.69% 3.90%**
Portfolio turnover rate....... 19.52%** 23.04% 41.87% 97.53%**
- ------------
(e) The Fund commenced operations on December 21, 1993.
(f) The Fund commenced operations on January 1, 1995.
* Not annualized
** Annualized
</TABLE>
See notes to financial statements.
98 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 103
<TABLE>
<CAPTION>
U.S. TREASURY FUND
===============================================
SIX MONTHS YEAR PERIOD
ENDED APRIL 30, ENDED ENDED
1997 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 (F)
=============== =========== ===========
<S> <C> <C> <C>
$ 10.54 $ 10.61 $ 10.00
------------ ---------- ----------
0.30 0.58 0.53
(0.14) (0.04) 0.61
------------ ---------- ----------
0.16 0.54 1.14
------------ ---------- ----------
(0.30) (0.58) (0.53)
(0.03)
------------ ---------- ----------
(0.30) (0.61) (0.53)
------------ ---------- ----------
$ 10.40 $ 10.54 $ 10.61
============ ========== ==========
1.50%* 5.20% 11.61%*
============ ========== ==========
$21,524 $22,114 $10,894
0.45%** 0.45% 0.45%*
5.49%** 5.59% 6.31%**
0.63%** 0.78% 1.84%*
5.31%** 5.26% 4.92%**
154.57%** 151.83% 87.10%**
</TABLE>
SEMI-ANNUAL REPORT 99
<PAGE> 104
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
LIMITED MATURITY FUND
=============================================================
SIX MONTHS
ENDED APRIL 30, YEAR ENDED YEAR ENDED PERIOD ENDED
1997 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 1994 (G)
=============== =========== =========== ============
<S> <C> <C> <C> <C>
Net asset value -- beginning of
period.......................... $ 10.06 $ 10.06 $ 10.00 $ 10.00
----------- ---------- ---------- ----------
Income (loss) from investment
activities:
Net investment income........... 0.27 0.53 0.56 0.19
Net realized and unrealized
gains (losses)............... (0.02) 0.07 (0.01)
----------- ---------- ---------- ----------
Total from investment
activities.............. 0.25 0.53 0.63 0.18
----------- ---------- ---------- ----------
Distributions to shareholders:
From net investment income...... (0.27) (0.53) (0.57) (0.18)
In excess of net investment
income.......................
From net realized gains.........
In excess of net realized
gains........................
----------- ---------- ---------- ----------
Total distributions to
shareholders............ (0.27) (0.53) (0.57) (0.18)
----------- ---------- ---------- ----------
Net asset value -- end of
period.......................... $ 10.04 $ 10.06 $ 10.06 $ 10.00
=========== ========== ========== ==========
Total return...................... 2.51%* 5.41% 6.43% 1.84%*
=========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period
(000)........................ $ 113,775 $50,771 $18,414 $ 14,248
Ratio of expenses to average net
assets....................... 0.30%** 0.30% 0.33% 0.41%**
Ratio of net investment income
to average net assets........ 5.47%** 5.45% 5.59% 4.74%**
Ratio of expenses to average net
assets prior to subsidies.... 0.51%** 0.62% 0.83% 2.92%**
Ratio of net investment income
to average net assets prior
to subsidies................. 5.26%** 5.13% 5.09% 2.23%**
Portfolio turnover rate......... 317.96%** 216.68% 166.07% 86.35%**
- ------------
(g) The Fund commenced operations on May 1, 1994.
(h) The Fund commenced operations on January 1, 1994.
* Not annualized
** Annualized
</TABLE>
100 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 105
<TABLE>
<CAPTION>
SHORT BOND FUND
================================================================
SIX MONTHS
ENDED APRIL 30, YEAR ENDED YEAR ENDED PERIOD ENDED
1997 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 1994 (H)
=============== =========== =========== ============
<S> <C> <C> <C> <C>
$ 9.97 $ 10.04 $ 9.68 $ 10.00
----------- ---------- ---------- ----------
0.29 0.54 0.54 0.34
(0.07) (0.06) 0.36 (0.32)
----------- ---------- ---------- ----------
0.22 0.48 0.90 0.02
----------- ---------- ---------- ----------
(0.29) (0.54) (0.54) (0.34)
(0.01)
----------- ---------- ---------- ----------
(0.29) (0.55) (0.54) (0.34)
----------- ---------- ---------- ----------
$ 9.90 $ 9.97 $ 10.04 $ 9.68
=========== ========== ========== ==========
2.23%* 4.86% 9.56% 0.21%*
=========== ========== ========== ==========
$ 109,504 $97,966 $19,157 $ 2,592
0.40%** 0.40% 0.40% 0.48%**
5.80%** 5.67% 5.72% 4.47%**
0.50%** 0.57% 1.03% 4.56%**
5.70%** 5.50% 5.09% 0.39%**
191.79%** 212.44% 170.27% 186.85%**
</TABLE>
SEMI-ANNUAL REPORT 101
<PAGE> 106
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
============================================================
SIX MONTHS YEAR YEAR PERIOD
ENDED APRIL 30, ENDED ENDED ENDED
1997 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 1994 (H)
=============== =========== =========== ===========
<S> <C> <C> <C> <C>
Net asset value -- beginning of period.... $ 9.60 $ 9.85 $ 9.30 $ 10.00
------------ ---------- ---------- ----------
Income (loss) from investment activities:
Net investment income................... 0.30 0.56 0.57 0.35
Net realized and unrealized gains
(losses)............................. (0.11) (0.17) 0.55 (0.70)
------------ ---------- ---------- ----------
Total from investment activities... 0.19 0.39 1.12 (0.35)
------------ ---------- ---------- ----------
Distributions to shareholders:
From net investment income.............. (0.30) (0.56) (0.57) (0.35)
In excess of net investment income......
From net realized gains................. (0.08)
In excess of net realized gains.........
------------ ---------- ---------- ----------
Total distributions to
shareholders.................... (0.30) (0.64) (0.57) (0.35)
------------ ---------- ---------- ----------
Net asset value -- end of period.......... $ 9.49 $ 9.60 $ 9.85 $ 9.30
============ ========== ========== ==========
Total return.............................. 2.02%* 4.06% 12.43% -3.52%*
============ ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000)......... $35,968 $52,767 $34,391 $14,312
Ratio of expenses to average net
assets............................... 0.45%** 0.45% 0.45% 0.46%**
Ratio of net investment income to
average
net assets........................... 6.03%** 5.90% 6.10% 5.39%**
Ratio of expenses to average net assets
prior to subsidies................... 0.62%** 0.58% 0.68% 2.03%**
Ratio of net investment income to
average net assets prior to
subsidies............................ 5.86%** 5.77% 5.87% 3.82%**
Portfolio turnover rate................. 279.72%** 195.63% 189.00% 358.23%**
- ------------
* Not annualized
** Annualized
</TABLE>
See notes to financial statements.
102 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 107
<TABLE>
<CAPTION>
INVESTMENT QUALITY BOND FUND
===============================================================
SIX MONTHS YEAR YEAR PERIOD
ENDED APRIL 30, ENDED ENDED ENDED
1997 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 1994 (H)
=============== =========== =========== ===========
<S> <C> <C> <C> <C>
$ 9.81 $ 9.96 $ 9.09 $ 10.00
------------ ---------- ---------- ----------
0.30 0.63 0.57 0.37
(0.15) (0.17) 0.87 (0.91)
------------ ---------- ---------- ----------
0.15 0.46 1.44 (0.54)
------------ ---------- ---------- ----------
(0.30) (0.61) (0.57) (0.37)
------------ ---------- ---------- ----------
(0.30) (0.61) (0.57) (0.37)
------------ ---------- ---------- ----------
$ 9.66 $ 9.81 $ 9.96 $ 9.09
============ ========== ========== ==========
1.50%* 4.86% 16.39% -5.49%*
============ ========== ========== ==========
$48,141 $32,304 $25,822 $ 3,030
0.45%** 0.00% 0.45% 0.49%**
5.89%** 6.41% 6.20% 5.25%**
0.58%** 0.64% 1.11% 4.52%**
5.76%** 5.77% 5.55% 1.22%**
395.57%** 196.78% 252.09% 513.35%**
</TABLE>
SEMI-ANNUAL REPORT 103
<PAGE> 108
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
TOTAL RETURN GLOBAL BALANCED
FUND FUND
=============== ===============
PERIOD PERIOD
ENDED APRIL 30, ENDED APRIL 30,
1997 (J) 1997 (J)
(UNAUDITED) (UNAUDITED)
=============== ===============
<S> <C> <C>
Net asset value -- beginning of period.......................... $ 10.00 $ 10.00
------------ ------------
Income (loss) from investment activities:
Net investment income......................................... 0.20 0.05
Net realized and unrealized gains (losses).................... (0.17) (0.03)
------------ ------------
Total from investment activities......................... 0.03 0.02
------------ ------------
Distributions to shareholders:
From net investment income.................................... (0.16) (0.01)
In excess of net investment income............................
From net realized gains.......................................
In excess of net realized gains...............................
------------ ------------
Total distributions to shareholders...................... (0.16) (0.01)
------------ ------------
Net asset value -- end of period................................ $ 9.87 $ 10.01
============ ============
Total return.................................................... 0.31%* 0.22%*
============ ============
Ratios/supplemental data:
Net assets, end of period (000)............................... $12,583 $10,393
Ratio of expenses to average net assets....................... 0.45%** 0.69%**
Ratio of net investment income to average net assets.......... 6.06%** 3.67%**
Ratio of expenses to average net assets prior to subsidies.... 1.45%** 1.87%**
Ratio of net investment income to average net assets prior to
subsidies.................................................. 5.06%** 2.49%**
Portfolio turnover rate....................................... 292.49%** 186.95%**
- ------------
(i) The Fund commenced operations on December 1, 1995.
(j) The Fund commenced operations on December 9, 1996.
(k) The Fund commenced operations on November 1, 1996.
* Not annualized
** Annualized
</TABLE>
See notes to financial statements.
104 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 109
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH &
EQUITY FUND INCOME FUND MARKET RETURN FUND
=============== =============== ===============================
PERIOD PERIOD SIX MONTHS PERIOD
ENDED APRIL 30, ENDED APRIL 30, ENDED APRIL 30, ENDED
1997 (J) 1997 (K) 1997 OCTOBER 31,
(UNAUDITED) (UNAUDITED) (UNAUDITED) 1996 (I)
=============== =============== =============== ===========
<S> <C> <C> <C> <C>
$ 10.00 $ 10.00 $ 10.86 $ 10.00
---------- ------------ ------------ --------
0.05 0.08 0.30 0.50
0.17 1.29 1.13 0.86
---------- ------------ ------------ --------
0.22 1.37 1.43 1.36
---------- ------------ ------------ --------
(0.01) (0.08) (0.30) (0.50)
(0.45)
---------- ------------ ------------ --------
(0.01) (0.08) (0.75) (0.50)
---------- ------------ ------------ --------
$ 10.21 $ 11.29 $ 11.54 $ 10.86
========== ============ ============ ========
2.18%* 13.69%* 13.50%* 14.06%*
========== ============ ============ ========
$ 8,800 $81,567 $10,814 $ 5,789
0.89%** 0.53%** 0.45%** 0.00%**
1.35%** 1.66%** 5.55%** 5.95%**
2.12%** 0.90%** 1.24%** 4.14%**
0.12%** 1.29%** 4.76%** 1.81%**
60.56%** 4.89%** 293.99%** 146.31%**
</TABLE>
SEMI-ANNUAL REPORT 105
<PAGE> 110
PAYDEN & RYGEL INVESTMENT GROUP
333 SOUTH GRAND AVENUE, LOS ANGELES, CALIFORNIA 90071
1-800-5-PAYDEN
IMPORTANT INFORMATION: The information contained in this report is intended for
shareholders of the Payden & Rygel Funds only. It is not authorized for
distribution to prospective investors unless accompanied or preceded by a
current prospectus which provides further details.
The performance numbers presented in this report are derived from historical
market data. There is no guarantee of future performance nor are Fund shares
guaranteed. Investment return and principal value of an investment in a Fund
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Fund shares are sold through Payden & Rygel
Distributors, member NASD.
