The Payden & Rygel Investment Group
Supplement to Prospectus dated December 30, 1997
Payden & Rygel Global Balanced Fund
Payden & Rygel International Equity Fund
Payden & Rygel European Growth & Income Fund
On September 3, 1998, the Board of Trustees of The Payden & Rygel
Investment Group voted to appoint Metzler/Payden, LLC as the sub-advisor to
each of the Payden & Rygel Global Balanced Fund, Payden & Rygel
International Equity Fund and Payden & Rygel European Growth & Income Fund.
The appointment is effective October 1, 1998.
Metzler/Payden, LLC is a joint venture between the Funds' adviser, Payden &
Rygel, and Metzler Asset Management GmbH, an affiliate of B. Metzler seel.
Sohn & Co. Holding AG of Frankfurt, Germany, a major German financial
institution.
A special meeting of the shareholders of the three Funds will be held in
November to ratify the appointment of Metzler/Payden, LLC as sub-advisor.
Further details will appear in a proxy statement to the shareholders of
each of the three Funds.
Commencing October 1, 1998, the portions of the equity portfolios of the
International Equity Fund and the Global Balanced Fund that are allocated
to equity securities of companies headquartered outside the United States
and Europe will be invested primarily through equity-based derivative
instruments, such as World Equity Benchmark Shares ("WEBS"), rather than in
stocks of individual companies. WEBS are shares of investment companies
that are similar to Standard & Poor's Depositary Receipts ("SPDRs"), but
are constructed to track the overall performance of the public equity
markets in specific foreign countries as represented by securities indices
compiled by Morgan Stanley Capital International. The Funds' investments
in WEBS will be subject to the same type of restrictions that apply to
SPDRs (see "Standard & Poor's Depositary Receipts" on page 35 of the
prospectus).
The date of this Prospectus Supplement is September 10, 1998
