Payden & Rygel Investment Group
Supplement to Prospectus dated December 30, 1997
Payden & Rygel Global Fixed Income Fund
The first paragraph of the disclosure concerning the Global Fixed Income
Fund, which appears on pages 27 and 28 of the Prospectus, is replaced by
the following:
"The Global Fixed Income Fund seeks to realize a high level of total
return consistent with preservation of capital. It invests primarily
in U.S. and foreign government notes and bonds and U.S. and foreign
corporate debt securities. The Fund also has substantial investment
in foreign currency contracts in order to hedge foreign currency
exposure. Under normal market conditions, as a fundamental policy
which cannot be changed without shareholder approval, at least 65% of
the Fund's total assets are invested in debt securities of issuers
organized or headquartered in at least three countries, one of which
may be the United States. Under normal circumstances, its average
portfolio maturity will not exceed ten years, and under normal
circumstances, the Fund invests primarily in debt securities that are
rated "investment grade" at the time of purchase by at least one of
the established rating agencies (e.g., AAA, AA, A, or BBB by Standard
& Poor's) or, if unrated, are determined to be of comparable quality
by the Adviser. In addition, if the rating of bonds of any country
issuing or regulating securities or currencies in which a Fund has
made an investment is lowered, so that two or more established rating
agencies categorize the investment below investment grade, the Fund
will discontinue making investments in that country and liquidate any
current holdings as soon as the Adviser determines it is in the best
interest of the Fund to do so."
Payden & Rygel Global Short Bond Fund
The disclosure concerning the Global Short Bond fund, which appears on page
28 of the Prospectus, is replaced by the following:
"The Global Short Bond Fund seeks to realize a high level of total
return consistent with preservation of capital. It invests primarily
in U.S. and foreign government notes and bonds and U.S. and foreign
corporate debt securities. The Fund also has substantial investment
in foreign currency contracts in order to hedge foreign currency
exposure. Under normal market conditions, as a fundamental policy
which cannot be changed without shareholder approval, at least 65% of
the Fund's total assets are invested in debt securities of issuers
organized or headquartered in at least three countries, one of which
may be the United States. Under normal circumstances, its average
portfolio maturity will not exceed three years, and under normal
circumstances, the Fund invests primarily in debt securities that are
considered "high quality" at the time of purchase by at least one of
the established rating agencies (e.g., AAA or AA by Standard &
Poor's), or if unrated, are determined to be of comparable quality by
the Adviser. In addition, if the rating of bonds of any country
issuing or regulating securities or currencies in which the Fund has
made an investment is lowered, so that two or more established rating
agencies categorize the investment below high quality, the Fund will
discontinue making investments in that country and liquidate any
current holdings as soon as the Adviser determines it is in the best
interest of the Fund to do so."
Payden & Rygel Growth & Income Fund
Payden & Rygel European Growth & Income Fund
As a result of changes in the tax laws, the holding period for common
stocks in each of (a) the Growth & Income Fund, discussed on pages 24 and
25 of the Prospectus, and (b) the European Growth & Income Fund, discussed
on page 28 of the Prospectus, has been changed from eighteen months to
twelve months.
The date of this Prospectus Supplement is July 24, 1998
