<PAGE> 1
CONTENTS
<TABLE>
<S> <C>
65
President's Letter Notes to Financial Statements
------------------------------- -------------------------------
1
82
Management Discussion
and Analysis Financial Highlights
------------------------------- -------------------------------
4
Portfolio Highlights
-------------------------------
14
Statements of Assets
and Liabilities
-------------------------------
20
Statements of Operations
-------------------------------
26
Statements of Changes
in Net Assets
-------------------------------
34
Schedules of Portfolio
Investments
-------------------------------
</TABLE>
<PAGE> 2
DEAR SHAREHOLDERS:
The first half of 1998 was an exciting time at Payden & Rygel. Media
recognition, strong performance from our established Funds, and intense interest
in our new offerings combined to drive growth to record levels.
The national media continued to recognize Payden & Rygel Funds as outstanding
investments. In January, Money magazine cited both the Short Duration Tax Exempt
and Short Bond Funds as top-yielding in their categories, and The Wall Street
Journal named the Global Fixed Income Fund as one of the top 15 performers for
world income. In February, Global Fixed Income again made the news, making
Business Week's "Mutual Fund Scorecard" as one of the best performers in its
category. And for the March Morningstar 500 list, Global Fixed Income was
recognized yet again, this time as the top-performing International Bond Fund
for the 3-year and 5-year periods.
PAYDEN & RYGEL FUNDS GARNER RECOGNITION IN NATIONAL MEDIA
Our two Funds which invest using the "dogs" of the Dow strategy continued to
receive attention as well. The "dogs" strategy and our Funds were profiled in
several magazines. A new CNBC ad drew a strong response from those seeking to
switch from costly Unit Investment Trusts based on the "dogs" strategy to Payden
& Rygel's low-cost Growth & Income Fund. The European Growth & Income Fund,
which takes the "dogs" strategy overseas, picks the 10 highest-yielding stocks
from among the biggest 30 companies in each of the four largest European
markets. Going forward, we feel it is well-positioned to take advantage of the
coming European Monetary Union.
The EMU, which ratified its first members this May, is set to launch next
January 1 with eleven members. The continuing consolidation of the European
markets should provide excellent opportunities for both this Fund and our other
global offerings.
The firm also added three new mutual funds this year. The High Income
<PAGE> 3
SECURE INTERNET ACCESS
Fund, our latest fixed-income portfolio, delves into the below-investment grade
universe and exploits undervalued, but fundamentally sound, businesses. It is
designed to earn a higher-than-average return over the long term. The Value
Stock Fund hits the bargain equity rack, employing a combination of fundamental
and quantitative research to choose a diversified portfolio of small-cap stocks
with strong appreciation potential. The Growth Stock Fund offers the same
technique, but with an emphasis on growth rather than value issues.
NEW FUNDS, NEW ASSETS, NEW GROWTH
Our mutual fund growth was wholly in line with these accolades and offerings. In
the five months ending in May, the Funds added another $300 million, bringing
mutual fund assets under management to $2 billion. This surge was led by the
Growth & Income Fund, the new High Income Fund, and the U.S. Government Fund,
which changed its name from U.S. Treasury Fund and broadened to include U.S.
general obligations.
Going forward, the firm plans to continue this growth by making some significant
expansions to its shareholder services. Starting in the third quarter, we will
offer both trading and balance inquires to our shareholders via the Internet.
Account holders will be able to log on to a secure server using Netscape
Navigator, Internet Explorer, Oracle Power Browser or America Online, and get
this information any time of the day - thus resulting in more convenience for
you, our shareholders.
As always, we work for you.
Sincerely,
/s/ Joan Payden
Joan Payden
Chairman & CEO
Payden & Rygel Investment Group
Payden & Rygel
<PAGE> 4
MANAGEMENT DISCUSSION AND ANALYSIS
U.S. STOCK MARKETS
The stock markets continued to post impressive gains in the six months ended
April 30, 1998. Large-cap stocks led the way as the S&P 500 Stock Index advanced
22.50%. This significantly outpaced the S&P MidCap 400 Stock Index, which gained
19.16%, and the S&P SmallCap 600 Stock Index, which posted a relatively
unimpressive 13.14% return. However, a different time horizon can tell a very
different story, as the chart below indicates. Large-cap stocks have actually
lagged the mid-cap and small-cap indices for the full 12 month period.
6 MONTH PERIOD ENDED 4/30/98 12 MONTH PERIOD ENDED 4/30/98
[GRAPH] [GRAPH]
What a timely illustration to underscore the point that investors should always
be diversified. The news media focus is on the really large-cap stocks, the
"mega-caps." Microsoft, General Electric and Ford are examples of mega-cap
stocks. It is easy for an investor to assume that all of the spectacular return
action is taking place in the mega-caps. Seasoned investors know that there is
a whole world of exciting opportunities in other sectors -- small-cap stocks,
foreign stocks or bonds.
The Market Return Fund and the Growth & Income Fund clearly took advantage of
the large-cap stock leadership over the past 6 months. The Market Return Fund
slightly lagged the S&P 500 with a return of 21.50%. The Growth & Income Fund
lagged the S&P 500 with a return of 17.76%. The Growth & Income's result is
primarily due to the "dog" performance of Philip Morris, which declined 4.59%,
and Chevron, which gained only 1.17%. However, as investors have seen with AT&T
and Eastman Kodak, the "dogs" of the Dow strategy continues to work on an
individual stock basis. We believe the strategy will perform well relative to
the market over time.
Our two small-cap and mid-cap stock funds opened December 30, 1997, and posted a
solid start. The Value Stock Fund gained 20.29%, beating both the S&P MidCap
400, which gained 13.88%, and the S&P SmallCap 600 return of 12.56%. The Value
Stock Fund's performance was broadly based, as over 60% of the stocks in the
portfolio beat the indices. The Growth Stock Fund lagged the indices, posting a
10.91% return. Some positive growth stock selection was overwhelmed by a few
stocks with negative earnings surprises.
SEMI-ANNUAL REPORT 1
<PAGE> 5
MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED)
FOREIGN STOCK MARKETS
European stock markets rocketed higher during the past six months, as the MSCI
Europe Index advanced 29.26% in US dollar terms. Investors are very excited
about the gains in efficiency and potential industry consolidation opportunities
brought about by European Monetary Union ("EMU"). Far East equity markets
continued to experience the malaise brought on by deepening economic problems
throughout the region. The MSCI Far East Index declined 9.90%. This somewhat
offset the strong showing from Europe, as the MSCI Europe, Australia, and Far
East ("EAFE") Index gained "only" 15.59%.
The European Growth & Income Fund (the "EuroDog" fund) gained 23.36%, but lagged
the MSCI Europe Index. The Fund's 25% weighting in United Kingdom stocks, which
lagged stocks in continental Europe, was the primary reason. The International
Equity Fund posted a solid 13.67% return; however, it lagged the MSCI EAFE
Index. The Global Balanced Fund gained 13.29%, and continues to provide
investors with a high risk-adjusted return from a broadly diversified mix of
global stocks and bonds.
BOND MARKETS
The U.S. bond market continued its tight trading range as the Federal Reserve
Board kept monetary policy unchanged. The 30-year government bond was down
slightly from a 6.20% yield to a 5.95% yield on April 30, 1998. However, the
long bond has rallied 1% from one year ago. The yield curve remained relatively
flat, as the 2-year government note moved down to 5.57% from its November 1,
1997 level of 5.69%.
German bonds fell 0.50%, bringing the 10-year government bond to a 5.00% yield,
as the country prepares for EMU. The United Kingdom is not participating in EMU;
nevertheless, its bond market rallied 0.70%. With the rally in the UK, bond
yields of developed markets in Europe and North America are at very similar
levels. Japanese government bonds also staged a rally, with the 0.10% yield
decline lowering the 10-year yield to 1.73%.
6 MONTH PERIOD ENDED 4/30/98 12 MONTH PERIOD ENDED 4/30/98
[GRAPH] [GRAPH]
*Average Maturity=8.6 years
2 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 6
The U.S. dollar continued its strength against nearly every currency in the
world. The greenback advanced more than 9% against the Japanese yen and nearly
4% against the German mark. We look forward to seeing how the dollar fares
against the new European currency next year.
Payden & Rygel Bond Funds performed as we expected over the last six months.
When interest rates are stable, it is extremely difficult to make added return
over the benchmark through shifts in a Fund's average maturity. Consequently,
the Funds have a significant allocation to corporate and mortgage-backed
securities. Over long periods of time, such a weighting has historically
contributed significant value added. However, over short periods of time, yield
spreads may widen and Fund performance can be adversely affected.
The Bunker Hill Money Market Fund continues to provide a high yield with a high
quality portfolio and excellent checkwriting privileges. The Limited Maturity,
Short Bond and Intermediate Bond Funds exceeded their benchmarks for the last
six months. Due to the underperformance of corporate securities in November and
December 1997, the Investment Quality and Total Return Funds lagged their
benchmarks. The Short Duration Tax Exempt Fund posted strong returns and
recently began offering checkwriting privileges. It is an excellent option for
investors wanting Federal tax-free income and instant liquidity. Its longer
maturity cousin, the Tax Exempt Bond Fund, also posted returns exceeding its
benchmark.
The flagship Global Fixed Income Fund continued to earn its high industry
rankings with a 4.52% return for the last six months, which is a full 1% above a
comparable maturity 100% US government bond portfolio. Likewise, the Global
Short Bond Fund returned nearly 0.50% more than its domestic counterpart. The
story is the same as it has been since we began the Global Fixed Income Fund
nearly seven years ago -- different economic and interest rate cycles of the
major developed markets provide greater opportunity for quality-minded bond
investors.
Payden & Rygel was also pleased to announce the opening of the High Income Fund
on December 30, 1997. This diversified portfolio of corporate and sovereign
securities earned a 3.90% return, exceeding its benchmark. Good bond selection,
like Host Marriott Properties and First Nationwide, contributed to the strong
showing.
SEMI-ANNUAL REPORT 3
<PAGE> 7
PORTFOLIO HIGHLIGHTS
Throughout this section, portfolio compositions are based upon a percentage of
total assets (at market value) in the Fund. In addition, if a particular Fund
makes use of bond or equity futures contracts, the portfolio composition for
that Fund reflects the effect of the futures contracts. For example, the 5%
allocation to Japan in the Global Fixed Income Fund reflects the purchase of
Japanese 10-year bond futures contracts which are listed in the Schedule of
Portfolio Holdings for the Fund. Similarly, the portfolio composition for the
Global Balanced Fund reflects the fact that the market value of the S&P 500
futures contracts were added to the U.S. equity calculation and deducted from
the U.S. fixed income allocation.
GLOBAL SHORT BOND FUND
Maturity Composition
<TABLE>
<CAPTION>
Years
<S> <C>
U.S. 2.0
Sweden 1.4
Germany 1.7
Australia 3.8
Japan 3.4
Spain 2.0%
Italy 1.3%
</TABLE>
<TABLE>
<CAPTION>
Country Allocation
<S> <C>
U.S. 21%
Germany 20%
Sweden 20%
Italy 14%
Australia 10%
Japan 10%
Spain 5%
</TABLE>
CURRENCY 100%
HEDGED INTO
U.S. $
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
- ---------------------------------------------------------------------------
<S> <C> <C>
Net Assets: $279,815,000 $220,865,000
Number of Issues: 23 20
Average Maturity: 2.0 years 2.1 years
SEC Yield: 4.43% 4.94%
</TABLE>
4 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 8
GLOBAL FIXED INCOME FUND
Maturity Composition
<TABLE>
<CAPTION>
<S> <C>
Denmark 7.7
U.S. 8.0
U.K. 9.6
Sweden 5.3
Germany 6.2
Australia 9.3
Japan 7.1
Canada 10.1
Italy 5.4
</TABLE>
0 6 12
Years
Country Allocation
<TABLE>
<CAPTION>
<S> <C>
U.S. 43%
Germany 15%
Italy 10%
Sweden 10%
U.K. 7%
Canada 5%
Japan 5%
Australia 4%
Denmark 1%
</TABLE>
CURRENCY 100%
HEDGED INTO
U.S. $
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
- ---------------------------------------------------------------------------
<S> <C> <C>
Net Assets: $503,038,000 $535,644,000
Number of Issues: 20 20
Average Maturity: 7.6 years 7.3 years
SEC Yield: 5.04% 5.39%
</TABLE>
GLOBAL BALANCED FUND
Portfolio Composition
<TABLE>
<CAPTION>
<S> <C>
STOCKS 70%
BONDS 30%
U.S. 21%
Europe 9%
U.S. 30%
Europe 26%
Japan 6%
Pacific Rim 5%
Other 3%
</TABLE>
Top 5 Countries
<TABLE>
<CAPTION>
<S> <C>
U.S. 52%
U.K. 9%
Japan 6%
France 5%
Germany 5%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $10,039,000 $10,312,000
Number of Issues: 72 74
Number of Countries: 18 18
</TABLE>
SEMI-ANNUAL REPORT 5
<PAGE> 9
INTERNATIONAL EQUITY FUND
Portfolio Composition
[PIE CHART]
<TABLE>
<CAPTION>
<S> <C>
Cash 8%
Japan 14%
South America 4%
Pacific Rim 8%
U.K. 18%
Continental Europe 48%
</TABLE>
Top 5 Countries
<TABLE>
<CAPTION>
<S> <C>
U.K. 18%
Japan 14%
France 11%
Switzerland 11%
Germany 11%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $21,864,000 $14,403,000
Number of Issues: 60 64
Number of Countries: 20 21
</TABLE>
EUROPEAN GROWTH &INCOME FUND
Country Allocation
[PIE CHART]
<TABLE>
<CAPTION>
<S> <C>
France 26%
Germany 23%
Netherlands 22%
United Kingdom 24%
Cash 5%
</TABLE>
Top 5 Industries
<TABLE>
<S> <C>
Finance 18%
Construction 12%
Energy 11%
Basic Industries 10%
Non-Durables 9%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $27,131,000 $13,608,000
Number of Issues: 67 55
Number of Industries: 12 5
</TABLE>
6 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 10
U.S. GOVERNMENT FUND
Portfolio Composition
[PIE CHART]
<TABLE>
<CAPTION>
<S> <C>
Treasury/Agency 42%
Cash 2%
Supranational 7%
Mortgage Backed 49%
</TABLE>
Credit Quality
<TABLE>
<CAPTION>
<S> <C>
AAA 100%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $71,220,000 $15,479,000
Number of Issues: 19 10
Average Maturity: 3.7 years 2.7 years
SEC Yield: 5.50% 5.35%
</TABLE>
INTERMEDIATE BOND FUND
Portfolio Composition
[PIE CHART]
<TABLE>
<CAPTION>
<S> <C>
Mortgage Backed 15%
Asset Backed 20%
Cash 1%
Corporate 58%
Treasury/Agency 6%
</TABLE>
Credit Quality
<TABLE>
<CAPTION>
<S> <C>
AAA 37%
AA 7%
A 25%
BBB 31%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $101,403,000 $80,766,000
Number of Issues: 39 39
Average Maturity: 4.3 years 4.5 years
SEC Yield: 6.07% 5.87%
</TABLE>
SEMI-ANNUAL REPORT 9
<PAGE> 11
INVESTMENT QUALITY BOND FUND
Portfolio Composition
<TABLE>
<CAPTION>
<S> <C>
Treasury/Agency 12%
Mortgage Backed 26%
Cash 1%
Corporate 45%
Asset Backed 16%
</TABLE>
Credit Quality
<TABLE>
<CAPTION>
<S> <C>
AAA 52%
AA 3%
A 13%
BBB 32%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $134,175,000 $94,987,000
Number of Issues: 51 49
Average Maturity: 6.5 years 6.5 years
SEC Yield: 6.15% 6.08%
</TABLE>
TOTAL RETURN FUND
Portfolio Composition
<TABLE>
<CAPTION>
<S> <C>
Mortgage Backed 34%
Other 3%
Asset Backed 13%
Corporate 34%
Cash 2%
Treasury/Agency 14%
</TABLE>
Credit Quality
<TABLE>
<CAPTION>
<S> <C>
AAA 50%
AA 5%
A 7%
BBB 21%
BB 17%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $69,873,000 $98,863,000
Number of Issues: 42 59
Average Maturity: 6.5 years 6.5 years
SEC Yield: 6.47% 6.39%
</TABLE>
10 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 12
SHORT DURATION TAX EXEMPT FUND
Portfolio Composition
[PIE CHART]
<TABLE>
<CAPTION>
<S> <C>
General Obligation Bonds 9%
Insured Bonds 45%
Pre-Refunded Bonds 3%
Revenue Bonds 43%
</TABLE>
Credit Quality
<TABLE>
<CAPTION>
<S> <C>
AAA 51%
AA 25%
A 14%
BBB 10%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $21,784,000 $38,176,000
Number of Issues: 20 37
Average Maturity: 2.4 years 2.0 years
SEC Yield: 3.75% 3.72%
</TABLE>
TAX EXEMPT BOND FUND
Portfolio Composition
[PIE CHART]
<TABLE>
<CAPTION>
<S> <C>
General Obligation Bonds 22%
Insured Bonds 50%
Pre-Refunded Bonds 8%
Cash 1%
Revenue Bonds 19%
</TABLE>
Credit Quality
<TABLE>
<CAPTION>
<S> <C>
AAA 69%
AA 21%
A 8%
BBB 2%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $66,523,000 $57,579,000
Number of Issues: 50 49
Average Maturity: 7.4 years 7.3 years
SEC Yield: 3.85% 4.08%
</TABLE>
SEMI-ANNUAL REPORT 11
<PAGE> 13
BUNKER HILL MONEY MARKET FUND
Portfolio Composition
<TABLE>
<CAPTION>
<S> <C>
Cash 5%
Commercial Paper 68%
Certificates of Deposit 10%
Corporate 2%
Treasury/Agency 15%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $16,253,000 Fund
Number of Issues: 24 Not
Average Maturity: 57 days In
30-Day Yield: 5.43% Operation
</TABLE>
HIGH INCOME FUND
Portfolio Composition
<TABLE>
<CAPTION>
<S> <C>
Cash 1%
Asset Backed 2%
Commercial Paper 16%
Corporate 67%
Treasuries 10%
Preferred Stock 4%
</TABLE>
Credit Quality
<TABLE>
<CAPTION>
<S> <C>
AAA 27%
A 1%
BBB 3%
BB 43%
B 26%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $47,566,000 Fund
Number of Issues: 63 Not
Average Maturity: 7.3 years In
SEC Yield: 7.03% Operation
</TABLE>
12 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 14
VALUE STOCK FUND
Largest Holdings
[BAR GRAPH]
<TABLE>
<CAPTION>
<S> <C>
Adaptec Inc. 3%
Allegiance Corp. 3%
Quest Diagnostics 3%
Armco 3%
Musicland 3%
Keebler Foods 3%
</TABLE>
Major Sectors
<TABLE>
<CAPTION>
<S> <C>
Financials 26%
Basic Industries 16%
Technology 15%
Consumer
Cyclicals 13%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $20,687,000 Fund
Number of Issues: 48 Not In
Number of Industries: 13 Operation
</TABLE>
GROWTH STOCK FUND
Largest Holdings
[BAR GRAPH]
<TABLE>
<CAPTION>
<S> <C>
Kansas City Southern Industries 4%
ICN Pharmaceuticals 3%
Texas Industries 3%
Century Telephone 3%
Health Management Assoc. 3%
Neiman Marcus Group Inc. 2%
</TABLE>
Major Sectors
<TABLE>
<CAPTION>
<S> <C>
Capital Goods 22%
Consumer
Cyclicals 20%
Financials 14%
Basic Industries 10%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30, 1998 OCTOBER 31, 1997
---------------------------------------------
<S> <C> <C>
Net Assets: $3,643,000 Fund
Number of Issues: 88 Not In
Number of Industries: 16 Operation
</TABLE>
SEMI-ANNUAL REPORT 13
<PAGE> 15
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1998
<TABLE>
<CAPTION>
GLOBAL GLOBAL
SHORT BOND FIXED INCOME
FUND FUND
============ ============
<S> <C> <C>
ASSETS:
Investments, at value*.................................. $275,577,047 $498,459,891
Foreign Cash............................................ 1,969 6,295
Cash....................................................
Receivable for:
Interest and dividends................................ 7,218,790 9,065,685
Open forward currency contracts.......................
Closed forward currency contracts..................... 117,920
Investments sold......................................
Open futures and options contracts.................... 38,259
Fund shares sold...................................... 14,785
Unamortized organization costs (Note 4)................. 728
Deferred expense subsidy (Note 5)....................... 198,507
Other assets............................................ 4,116
------------ -----------
Total Assets....................................... 283,114,961 507,589,031
------------ -----------
LIABILITIES:
Payable for:
Open forward currency contracts....................... $ 3,025,848 $ 4,230,170
Closed forward currency contracts..................... 62,001
Investments purchased.................................
Open futures contracts................................
Fund shares redeemed.................................. 26,222
Payable to Payden & Rygel (Note 5)......................
Accrued expenses:
Investment advisory fees.............................. 142,402 124,474
Administration fees................................... 53,922 24,895
Other expenses........................................ 77,596 83,763
------------ -----------
Total Liabilities.................................. 3,299,768 4,551,525
------------ -----------
NET ASSETS......................................... $279,815,193 $503,037,506
============ ===========
NET ASSETS:
Paid in capital......................................... $278,749,926 $497,665,048
Undistributed net investment income..................... (2,786,465) (1,399,510)
Accumulated net realized gains (losses) from
Investments........................................... 7,649,813 1,526,149
Net unrealized appreciation (depreciation) from:
Investments........................................... (3,334,765) 7,702,812
Translation of assets and liabilities in foreign
currencies......................................... (463,316) (2,456,993)
------------ -----------
NET ASSETS......................................... $279,815,193 $503,037,506
============ ===========
Outstanding shares of beneficial interest............... 27,548,657 48,677,301
============ ===========
NET ASSET VALUE -- offering and redemption price per
share................................................. $ 10.16 $ 10.33
============ ===========
- ------------
* Investments, at cost.................................. $276,392,682 $489,844,076
</TABLE>
See notes to financial statements.
14 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 16
<TABLE>
<CAPTION>
GLOBAL INTERNATIONAL EUROPEAN GROWTH & MARKET
BALANCED EQUITY GROWTH & INCOME RETURN
FUND FUND INCOME FUND FUND FUND
=========== ============= =========== ============ ===========
<S> <C> <C> <C> <C>
$ 9,921,208 $20,918,027 $27,523,525 $246,396,250 $35,964,526
168,085 841,202 405
69,693 107,208 121,213 79,376 282,559
39,200 720,081
49,169 448,308 4,449
2,075 1,925 3,656 6,059 12,492
122,104 85,601 136,238 121,863 204,678
15,561
- ----------- ------------- ----------- ------------ -----------
10,322,365 21,953,963 27,834,206 247,051,856 37,204,347
- ----------- ------------- ----------- ------------ -----------
$ 69,036
12,509
77,000 543,298
16,262 200,300
50,725 23,634 62,188 119,263
43,037 42,707 26,149 121,768 79,632
8,047 10,713 6,801 12,077 17,064
22,740 12,736 48,022 8,155 25,347
- ----------- ------------- ----------- ------------ -----------
283,094 89,790 702,720 342,300 241,306
- ----------- ------------- ----------- ------------ -----------
$10,039,271 $21,864,173 $27,131,486 $246,709,556 $36,963,041
=========== ============= =========== ============ ===========
$ 8,571,144 $19,035,639 $23,599,821 $201,313,760 $32,096,815
18,276 111,673 147,646 (100,599) 57,866
441,643 320,600 63,764 8,314 3,111,005
1,104,631 2,452,589 2,711,702 45,488,081 1,697,355
(96,423) (56,328) 608,553
- ----------- ------------- ----------- ------------ -----------
$10,039,271 $21,864,173 $27,131,486 $246,709,556 $36,963,041
=========== ============= =========== ============ ===========
880,824 1,788,846 2,158,562 16,563,971 2,633,059
=========== ============= =========== ============ ===========
$ 11.40 $ 12.22 $ 12.57 $ 14.89 $ 14.04
=========== ============= =========== ============ ===========
$ 8,935,427 $18,520,331 $24,201,258 $200,908,169 $35,811,520
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 15
<PAGE> 17
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
April 30, 1998
<TABLE>
<CAPTION>
LIMITED SHORT
MATURITY BOND
FUND FUND
============== ============
<S> <C> <C>
ASSETS:
Investments, at value*............................... $157,072,435 $115,734,237
Foreign Cash.........................................
Cash.................................................
Receivable for:
Interest and dividends............................. 1,076,975 1,105,429
Open forward currency contracts....................
Closed forward currency contracts..................
Investments sold...................................
Open futures and options contracts.................
Fund shares sold...................................
Unamortized organization costs (Note 4)..............
Deferred expense subsidy (Note 5).................... 629,340 393,041
Other assets.........................................
-------------- ------------
Total Assets.................................... 158,778,750 117,232,707
-------------- ------------
LIABILITIES:
Payable for:
Open forward currency contracts....................
Closed forward currency contracts..................
Investments purchased.............................. 10,121,545
Open futures contracts.............................
Fund shares redeemed............................... 1,679,536
Payable to Payden & Rygel (Note 5)...................
Accrued expenses:
Investment advisory fees........................... 519,282 373,382
Administration fees................................ 97,967 9,730
Other expenses..................................... 14,223 12,297
-------------- ------------
Total Liabilities............................... 2,311,008 10,516,954
-------------- ------------
NET ASSETS...................................... $156,467,742 $106,715,753
============== ============
NET ASSETS:
Paid in capital...................................... $156,520,506 $107,110,915
Undistributed net investment income.................. 102,417 117,259
Accumulated net realized gains (losses) from
Investments........................................ (191,762) (482,613)
Net unrealized appreciation (depreciation) from:
Investments........................................ 36,581 (29,808)
Translation of assets and liabilities in foreign
currencies......................................
-------------- ------------
NET ASSETS...................................... $156,467,742 $106,715,753
============== ============
Outstanding shares of beneficial interest............ 15,569,284 10,781,491
============== ============
NET ASSET VALUE -- offering and redemption price per
share.............................................. $ 10.05 $ 9.90
============== ============
- ------------
* Investments, at cost............................... $157,035,859 $115,764,050
</TABLE>
See notes to financial statements.
16 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 18
<TABLE>
<CAPTION>
U.S. INTERMEDIATE INVESTMENT TOTAL
GOVERNMENT BOND QUALITY BOND RETURN
FUND FUND FUND FUND
=========== ============ ============= ===========
<S> <C> <C> <C>
$86,768,900 $107,996,683 $159,097,861 $88,225,242
553,665 984,544 1,757,875 831,858
42,090
11,472 106,222
45
1,624
192,159 242,603 369,330 115,650
366
- ----------- ------------ ------------ -----------
87,514,724 109,235,302 161,331,288 89,216,875
- ----------- ------------ ------------ -----------
16,096,137 7,541,681 26,753,572 19,034,109
189,450
160,552 181,925 308,496 91,915
36,838 57,051 70,533 7,334
812 51,508 23,302 21,560
- ----------- ------------ ------------ -----------
16,294,339 7,832,165 27,155,903 19,344,368
- ----------- ------------ ------------ -----------
$71,220,385 $101,403,137 $134,175,385 $69,872,507
=========== ============ ============ ===========
$71,235,882 $100,122,186 $132,429,011 $69,106,194
26,698 61,267 382,221 482,945
154,058 617,932 608,919 (250,373)
(196,253) 601,752 755,234 523,260
10,481
- ----------- ------------ ------------ -----------
$71,220,385 $101,403,137 $134,175,385 $69,872,507
=========== ============ ============ ===========
6,669,737 10,492,524 13,425,717 6,861,508
=========== ============ ============ ===========
$ 10.68 $ 9.66 $ 9.99 $ 10.18
=========== ============ ============ ===========
$86,965,153 $107,414,884 $158,401,412 $87,732,185
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 17
<PAGE> 19
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
April 30, 1998
<TABLE>
<CAPTION>
SHORT DURATION TAX EXEMPT
TAX EXEMPT BOND
FUND FUND
============== ===========
<S> <C> <C>
ASSETS:
Investments, at value*............................. $21,448,233 $64,453,745
Foreign Cash.......................................
Cash...............................................
Receivable for:
Interest and dividends........................... 322,105 968,802
Open forward currency contracts..................
Closed forward currency contracts................
Investments sold................................. 1,187,029
Open futures and options contracts...............
Fund shares sold.................................
Unamortized organization costs (Note 4)............
Deferred expense subsidy (Note 5).................. 274,768 351,013
Other assets....................................... 18,924
-------------- ----------
Total Assets.................................. 22,064,030 66,960,589
-------------- ----------
LIABILITIES:
Payable for:
Open forward currency contracts..................
Closed forward currency contracts................
Investments purchased............................
Open futures contracts........................... 3,750
Fund shares redeemed............................. 62,500
Payable to Payden & Rygel (Note 5).................
Accrued expenses:
Investment advisory fees......................... 225,442 306,751
Administration fees.............................. 40,192 45,167
Other expenses................................... 14,886 18,981
-------------- ----------
Total Liabilities............................. 280,520 437,149
-------------- ----------
NET ASSETS.................................... $21,783,510 $66,523,440
============== ==========
NET ASSETS:
Paid in capital.................................... $21,593,004 $66,454,464
Undistributed net investment income................ 4,907 15,706
Accumulated net realized gains (losses) from
Investments...................................... 71,726 (1,348,165)
Net unrealized appreciation (depreciation) from:
Investments...................................... 113,873 1,401,435
Translation of assets and liabilities in foreign
currencies....................................
-------------- ----------
NET ASSETS.................................... $21,783,510 $66,523,440
============== ==========
Outstanding shares of beneficial interest.......... 2,173,165 6,864,679
============== ==========
NET ASSET VALUE -- offering and redemption price
per share........................................ $ 10.02 $ 9.69
============== ==========
- ------------
* Investments, at cost............................. $21,334,361 $63,043,564
</TABLE>
See notes to financial statements.
18 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 20
<TABLE>
<CAPTION>
BUNKER HILL HIGH VALUE GROWTH
MONEY MARKET INCOME STOCK STOCK
FUND FUND FUND FUND
============ =========== =========== ==========
<S> <C> <C> <C>
$16,097,176 $51,441,277 $21,027,428 $3,640,859
46,311 805,760 4,322 1,893
116,080 150,625 5,700
744 555 5,901 5,901
22,565 17,518 7,651 17,791
9,113 15,336
- ----------- ----------- ----------- ----------
16,291,989 52,431,071 21,051,002 3,666,444
- ----------- ----------- ----------- ----------
4,830,186 352,656
4,840
15,161 6,680 19,219
7,680 21,689
3,072 3,718 1,418 596
7,882 9,572 3,357 3,818
- ----------- ----------- ----------- ----------
38,635 4,865,165 364,111 23,633
- ----------- ----------- ----------- ----------
$16,253,354 $47,565,906 $20,686,891 $3,642,811
=========== =========== =========== ==========
$16,253,354 $47,220,854 $19,871,572 $3,311,489
225,926 46,569 7,077
44,558 598,075 28,147
74,568 170,675 296,098
- ----------- ----------- ----------- ----------
$16,253,354 $47,565,906 $20,686,891 $3,642,811
=========== =========== =========== ==========
16,253,354 4,628,695 1,719,615 328,455
=========== =========== =========== ==========
$ 1.00 $ 10.28 $ 12.03 $ 11.09
=========== =========== =========== ==========
$16,097,176 $51,366,709 $20,856,752 $3,344,761
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 19
<PAGE> 21
STATEMENTS OF OPERATIONS
Period ended April 30, 1998
<TABLE>
<CAPTION>
GLOBAL GLOBAL
SHORT BOND FIXED INCOME
FUND FUND
=========== ============
<S> <C> <C>
INVESTMENT INCOME:
Interest income.......................................... $ 6,910,990 $13,327,845
Dividend Income..........................................
Foreign tax withholdings.................................
----------- -----------
Investment Revenues.................................... 6,910,990 13,327,845
----------- -----------
EXPENSES:
Investment advisory fees (Note 5)........................ 402,562 749,520
Administration fees (Note 5)............................. 80,512 149,904
Custodian fees........................................... 40,750 50,616
Accounting fees (Note 5)................................. 36,806 82,817
Legal fees............................................... 3,560 7,897
Audit fees............................................... 10,455 18,471
Professional fees........................................ 5,700 31,797
Insurance................................................ 6,797 20,243
Organization expenses (Note 4)........................... 261
Trustees' fees and expenses.............................. 9,624 21,934
Transfer agent fees (Note 5)............................. 11,638 27,867
Registration and filing fees............................. 12,351 20,746
Printing costs........................................... 10,190 9,665
Other expenses........................................... 9,992 23,384
Waived advisory fee (Note 5).............................
Expense subsidy (Note 5)................................. (37,355)
----------- -----------
Net Expenses........................................... 603,843 1,214,861
----------- -----------
Net Investment Income............................... 6,307,147 12,112,984
----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) from:
Investments............................................ (4,487,546) (3,171,235)
Foreign currency transactions.......................... 12,143,220 9,591,986
Open swap contracts....................................
Futures contracts...................................... (1,051) 111,432
Options contracts...................................... (51,860)
Change in net unrealized appreciation (depreciation)
from:
Investments............................................ (3,771,533) (961,461)
Translation of assets and liabilities in foreign
currencies.......................................... (1,221,802) 4,190,534
Open swap contracts.................................... 42,825
Futures contracts...................................... 753,335
Open options contracts written.........................
----------- -----------
Net realized and unrealized gains (losses).......... 2,704,113 10,462,731
----------- -----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS........... $ 9,011,260 $22,575,715
=========== ===========
- ------------
(a) The Fund commenced operations on December 30, 1997.
(b) The Fund commenced operations on December 17, 1997.
</TABLE>
See notes to financial statements.
20 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 22
<TABLE>
<CAPTION>
GLOBAL INTERNATIONAL EUROPEAN GROWTH & MARKET
BALANCED EQUITY GROWTH & INCOME RETURN
FUND FUND(a) INCOME FUND(b) FUND FUND
========== ============= ============== =========== ==========
<S> <C> <C> <C> <C>
$ 136,399 $ 40,277 $ 24,960 $ 82,119 $ 863,451
32,604 150,815 181,273 1,979,945
- ---------- ------------- ------------- ----------- ----------
169,003 191,092 206,233 2,062,064 863,451
- ---------- ------------- ------------- ----------- ----------
24,010 52,958 41,848 504,979 39,967
2,881 5,296 5,022 60,598 8,564
17,005 17,418 57,849 14,098 3,596
4,444 5,220 5,151 27,901 5,399
150 235 1,781 2,065 250
9,468 9,483 9,472 9,975 9,484
3,687 384 344 3,913 440
241 525 491 5,568 628
639 594 802 1,995 10,514
420 635 612 6,328 702
5,819 6,330 18,705 79,790 6,744
5,886 3,539 8,333 26,363 2,226
407 650 673 6,011 590
529 1,614 1,458 1,253 2,594
(8,369) (201,992)
(41,972) (25,462) (85,585) (3,467) (27,466)
- ---------- ------------- ------------- ----------- ----------
33,614 79,419 58,587 545,378 64,232
- ---------- ------------- ------------- ----------- ----------
135,389 111,673 147,646 1,516,686 799,219
- ---------- ------------- ------------- ----------- ----------
168,491 414,806 165,096 16,653 (15,258)
43,945 (94,206) (94,580)
259,564 2,671,191
616,527 1,939,218 3,325,627 31,928,183 2,112,364
(3,001) (752) 2,780
- ---------- ------------- ------------- ----------- ----------
1,085,526 2,259,066 3,398,923 31,944,836 4,768,297
- ---------- ------------- ------------- ----------- ----------
$1,220,915 $2,370,739 $3,546,569 $33,461,522 $5,567,516
========== ============= ============= =========== ==========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 21
<PAGE> 23
STATEMENTS OF OPERATIONS (CONTINUED)
Period ended April 30, 1998
<TABLE>
<CAPTION>
LIMITED SHORT
MATURITY BOND
FUND FUND
========== ==========
<S> <C> <C>
INVESTMENT INCOME:
Interest income.......................................... $4,479,000 $2,801,827
Dividend income..........................................
Foreign tax withholdings.................................
---------- ----------
Investment Revenues.................................... 4,479,000 2,801,827
---------- ----------
EXPENSES:
Investment advisory fees (Note 5)........................ 213,460 121,529
Administration fees (Note 5)............................. 45,741 26,042
Custodian fees........................................... 8,598 2,489
Accounting fees (Note 5)................................. 25,288 19,789
Legal fees............................................... 1,982 1,452
Audit fees............................................... 10,006 9,915
Professional fees........................................ 612 2,458
Insurance................................................ 5,115 3,482
Organization expenses (Note 4)...........................
Trustees' fees and expenses.............................. 5,631 3,924
Transfer agent fees (Note 5)............................. 13,083 8,496
Registration and filing fees............................. 10,715 10,742
Printing costs........................................... 4,150 2,449
Other expenses........................................... 7,295 6,210
Waived advisory fee (Note 5)............................. (15,464)
Expense subsidy (Note 5)................................. (122,969) (66,241)
---------- ----------
Net Expenses........................................... 228,707 137,272
---------- ----------
Net Investment Income............................... 4,250,293 2,664,555
---------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) from:
Investments............................................ (64,790) (32,510)
Foreign currency transactions..........................
Open swap contracts....................................
Futures contracts...................................... (85,879)
Options contracts...................................... (9,125)
Change in net unrealized appreciation (depreciation)
from:
Investments............................................ (135,631) (224,150)
Translation of assets and liabilities in foreign
currencies..........................................
Open swap contracts....................................
Futures contracts......................................
Open options contracts written.........................
---------- ----------
Net realized and unrealized gains (losses).......... (200,421) (351,664)
---------- ----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS........... $4,049,872 $2,312,891
========== ==========
</TABLE>
- ------------
(a) The Fund commenced operations on December 30, 1997.
(b) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
22 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 24
<TABLE>
<CAPTION>
U.S. INTERMEDIATE INVESTMENT TOTAL
GOVERNMENT BOND QUALITY BOND RETURN
FUND FUND FUND FUND
========== ============ ============ ==========
<S> <C> <C> <C> <C>
$1,413,134 $3,293,517 $3,818,699 $3,426,112
--------- ------------ ------------ ----------
1,413,134 3,293,517 3,818,699 3,426,112
--------- ------------ ------------ ----------
69,067 141,859 162,403 114,771
14,800 30,398 34,801 24,594
859 1,949 5,506 9,155
5,405 13,787 17,649 17,749
255 1,113 1,555 1,540
9,526 9,673 9,841 9,736
712 2,919 2,396 2,550
582 2,831 3,419 3,472
399 504
675 3,169 4,085 4,105
5,881 8,132 8,346 8,630
4,547 5,149 12,084 5,426
413 1,750 3,946 4,076
1,046 4,970 6,385 7,278
(11,380) (17,899)
(19,044) (6,305) (11,476) (29,132)
--------- ------------ ------------ ----------
83,743 203,495 260,940 184,454
--------- ------------ ------------ ----------
1,329,391 3,090,022 3,557,759 3,241,658
--------- ------------ ------------ ----------
307,594 553,472 415,720 (227,112)
(52,663)
549,633
95,971 205,911 (347,282)
(16,794) (8,363) (8,019)
(387,086) (647,765) (638,614) (325,169)
10,481
20,542
(29,672) 54,402 (189,266)
33,375 33,988
--------- ------------ ------------ ----------
(79,492) (11,413) 29,056 (534,867)
--------- ------------ ------------ ----------
$1,249,899 $3,078,609 $3,586,815 $2,706,791
========= ============ ============ ==========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 23
<PAGE> 25
STATEMENTS OF OPERATIONS (CONTINUED)
Period ended April 30, 1998
<TABLE>
<CAPTION>
SHORT DURATION TAX EXEMPT
TAX EXEMPT BOND
FUND FUND
============== ==========
<S> <C> <C>
INVESTMENT INCOME:
Interest income................................... $ 687,869 $1,499,484
Dividend income...................................
Foreign tax withholdings..........................
------------ ---------
Investment Revenues............................. 687,869 1,499,484
------------ ---------
EXPENSES:
Investment advisory fees (Note 5)................. 48,639 105,010
Administration fees (Note 5)...................... 9,120 19,689
Custodian fees.................................... 3,729 3,504
Accounting fees (Note 5).......................... 8,422 11,389
Legal fees........................................ 557 874
Audit fees........................................ 9,580 9,684
Professional fees................................. 299 498
Insurance......................................... 1,446 2,125
Organization expenses (Note 4)....................
Trustees' fees and expenses....................... 1,582 2,396
Transfer agent fees (Note 5)...................... 6,746 7,245
Registration and filing fees...................... 5,054 4,853
Printing costs.................................... 791 1,591
Other expenses.................................... 3,743 5,090
Waived advisory fee (Note 5)......................
Expense subsidy (Note 5).......................... (31,309) (14,775)
------------ ---------
Net Expenses.................................... 68,399 159,173
------------ ---------
Net Investment Income........................ 619,470 1,340,311
------------ ---------
REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) from:
Investments..................................... 71,716 (9,569)
Foreign currency transactions...................
Open swap contracts.............................
Futures contracts............................... (41,371)
Options contracts...............................
Change in net unrealized appreciation
(depreciation) from:
Investments..................................... (113,709) (236,455)
Translation of assets and liabilities in foreign
currencies...................................
Open swap contracts.............................
Futures contracts............................... 10,625
Open options contracts written..................
------------ ---------
Net realized and unrealized gains (losses)... (41,993) (276,770)
------------ ---------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS.... $ 577,477 $1,063,541
============ =========
</TABLE>
- ------------
(a) The Fund commenced operations on December 30, 1997.
(b) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
24 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 26
<TABLE>
<CAPTION>
BUNKER HILL HIGH VALUE GROWTH
MONEY MARKET INCOME STOCK STOCK
FUND(b) FUND(a) FUND(a) FUND(a)
============ ======== ======== ========
<S> <C> <C> <C>
$287,005 $496,200 $ 53,870 $ 3,900
11,604 11,120
- ----------- -------- -------- --------
287,005 496,200 65,474 15,020
- ----------- -------- -------- --------
7,680 21,689 14,178 5,957
3,072 3,718 1,418 596
2,327 2,308 2,308 2,308
3,008 3,543 2,928 2,928
95 170 85 85
6,373 5,817 5,793 5,793
617 535 535 535
104 70 740 740
4,143 3,765 3,765 3,765
9,181 8,412 8,344 8,344
68 122 61 61
1,688 1,649 945 945
(14,178) (5,957)
(22,565) (17,518) (7,651) (17,791)
- ----------- -------- -------- --------
15,360 34,083 18,905 7,943
- ----------- -------- -------- --------
271,645 462,117 46,569 7,077
- ----------- -------- -------- --------
(1,461) 44,558 382,604 28,147
215,471
74,568 170,675 296,098
- ----------- -------- -------- --------
(1,461) 119,126 768,750 324,245
- ----------- -------- -------- --------
$270,184 $581,243 $815,319 $331,322
=========== ======== ======== ========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 25
<PAGE> 27
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GLOBAL SHORT BOND
FUND
==============================
PERIOD ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
1998 1997
============ ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income....................................... $ 6,307,147 $ 6,262,905
Net realized gains (losses)................................. 7,697,448 1,385,926
Change in net unrealized appreciation (depreciation)........ (4,993,335) 1,092,920
------------ ------------
Change in net assets resulting from operations............ 9,011,260 8,741,751
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income....................................... (9,142,342) (7,673,449)
Net realized gains from investments.........................
In excess of net realized gains from investments............
Return of capital...........................................
------------ ------------
Change in net assets from distributions to shareholders... (9,142,342) (7,673,449)
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold.............................. 63,881,323 222,627,255
Reinvestment of distributions............................... 44,118,252 7,044,107
Cost of fund shares redeemed................................ (48,918,473) (38,787,906)
------------ ------------
Change in net assets from capital transactions............ 59,081,102 190,883,456
------------ ------------
Total Change in Net Assets............................. 58,950,020 191,951,758
NET ASSETS:
Beginning of period......................................... 220,865,173 28,913,415
------------ ------------
End of period............................................... $279,815,193 $220,865,173
============ ============
Undistributed net investment income......................... $ (2,786,465) $ 48,730
============ ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period................... 21,726,743 2,871,151
------------ ------------
Shares sold................................................. 6,278,112 21,965,267
Shares issued in reinvestment of distributions.............. 4,342,593 694,777
Shares redeemed............................................. (4,798,791) (3,804,452)
------------ ------------
Change in shares outstanding................................ 5,821,914 18,855,592
------------ ------------
Outstanding shares at end of period......................... 27,548,657 21,726,743
============ ============
</TABLE>
- ------------
(a) The Fund commenced operations on December 30, 1997.
(b) The Fund commenced operations on December 17, 1997.
(c) The Fund commenced operations on June 30, 1997.
(d) The Fund commenced operations on December 9, 1996.
(e) The Fund commenced operations on November 1, 1996.
See notes to financial statements.
26 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 28
<TABLE>
<CAPTION>
GLOBAL FIXED INCOME GLOBAL BALANCED INTERNATIONAL EQUITY
FUND FUND FUND
============================= =========================== ===========================
PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1998 1997 1998 1997(d) 1998 1997(d)
============= ============= ============ ============ ============ ============
<S> <C> <C> <C> <C> <C> <C>
$ 12,112,984 $ 34,212,828 $ 135,389 $ 284,055 $ 111,673 $ 82,538
6,480,323 30,450,300 472,000 325,352 320,600 (262,004)
3,982,408 (14,317,158) 613,526 394,682 1,938,466 457,795
------------- ------------- ----------- ----------- ----------- -----------
22,575,715 50,345,970 1,220,915 1,004,089 2,370,739 278,329
------------- ------------- ----------- ----------- ----------- -----------
(13,811,743) (60,308,541) (117,113) (42,206)
(490,802) (106,756)
(5,580)
------------- ------------- ----------- ----------- ----------- -----------
(13,811,743) (60,308,541) (607,915) (148,962) -- (5,580)
------------- ------------- ----------- ----------- ----------- -----------
93,145,281 59,238,120 800,624 10,510,669 8,103,712 14,175,623
11,329,566 26,681,751 596,508 131,260 3,938
(145,845,535) (191,477,656) (2,283,231) (1,184,686) (3,013,167) (49,421)
------------- ------------- ----------- ----------- ----------- -----------
(41,370,688) (105,557,785) (886,099) 9,457,243 5,090,545 14,130,140
------------- ------------- ----------- ----------- ----------- -----------
(32,606,716) (115,520,356) (273,099) 10,312,370 7,461,284 14,402,889
535,644,222 651,164,578 10,312,370 -- 14,402,889 --
------------- ------------- ----------- ----------- ----------- -----------
$ 503,037,506 $ 535,644,222 $10,039,271 $10,312,370 $21,864,173 $14,402,889
============= ============= =========== =========== =========== ===========
$ (1,399,510) $ 299,249 $ 18,276 $ -- $ 111,673 $ --
============= ============= =========== =========== =========== ===========
52,744,225 62,918,935 955,640 -- 1,339,997 --
------------- ------------- ----------- ----------- ----------- -----------
9,049,487 5,735,467 72,504 1,049,707 718,772 1,344,022
1,102,403 2,605,537 57,542 11,941 -- 393
(14,218,814) (18,515,714) (204,862) (106,008) (269,923) (4,418)
------------- ------------- ----------- ----------- ----------- -----------
(4,066,924) (10,174,710) (74,816) 955,640 448,849 1,339,997
------------- ------------- ----------- ----------- ----------- -----------
48,677,301 52,744,225 880,824 955,640 1,788,846 1,339,997
============= ============= =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 27
<PAGE> 29
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
EUROPEAN GROWTH & GROWTH & INCOME
INCOME FUND FUND
=========================== ===========================
PERIOD ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1998 1997(c) 1998 1997(e)
============ ============ ============ ============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income...................... $ 147,646 $ 51,631 $ 1,516,686 $ 1,260,571
Net realized gains (losses)................ 70,516 (106,176) 16,653 13,164
Change in net unrealized appreciation
(depreciation)........................... 3,328,407 (8,152) 31,928,183 13,559,898
----------- ----------- ------------ ------------
Change in net assets resulting from
operations............................ 3,546,569 (62,697) 33,461,522 14,833,633
----------- ----------- ------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income...................... (2,017,780) (860,076)
Net realized gains from investments........ (21,503)
In excess of net realized gains from
investments..............................
Return of capital..........................
----------- ----------- ------------ ------------
Change in net assets from distributions
to shareholders....................... -- -- (2,039,283) (860,076)
----------- ----------- ------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold............. 12,828,739 14,157,125 85,049,409 145,410,059
Reinvestment of distributions.............. 1,910,892 543,287
Cost of fund shares redeemed............... (2,852,194) (486,056) (22,616,849) (8,983,038)
----------- ----------- ------------ ------------
Change in net assets from capital
transactions.......................... 9,976,545 13,671,069 64,343,452 136,970,308
----------- ----------- ------------ ------------
Total Change in Net Assets............ 13,523,114 13,608,372 95,765,691 150,943,865
NET ASSETS:
Beginning of period........................ 13,608,372 -- 150,943,865 --
----------- ----------- ------------ ------------
End of period.............................. $27,131,486 $13,608,372 $246,709,556 $150,943,865
=========== =========== ============ ============
Undistributed net investment income........ $ 147,646 $ -- $ (100,599) $ 400,495
=========== =========== ============ ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of
period................................... 1,335,240 -- 11,822,224 --
----------- ----------- ------------ ------------
Shares sold................................ 1,089,298 1,382,337 5,898,122 12,473,647
Shares issued in reinvestment of
distributions............................ 455,081 42,701
Shares redeemed............................ (265,976) (47,097) (1,611,456) (694,124)
----------- ----------- ------------ ------------
Change in shares outstanding............... 823,322 1,335,240 4,741,747 11,822,224
----------- ----------- ------------ ------------
Outstanding shares at end of period........ 2,158,562 1,335,240 16,563,971 11,822,224
=========== =========== ============ ============
</TABLE>
- ------------
(a) The Fund commenced operations on December 30, 1997.
(b) The Fund commenced operations on December 17, 1997.
(c) The Fund commenced operations on June 30, 1997.
(d) The Fund commenced operations on December 9, 1996.
(e) The Fund commenced operations on November 1, 1996.
See notes to financial statements.
28 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 30
<TABLE>
<CAPTION>
MARKET RETURN LIMITED MATURITY SHORT BOND
FUND FUND FUND
========================== ============================ ===========================
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1998 1997 1998 1997 1998 1997
============ =========== ============= ============ ============ ============
<S> <C> <C> <C> <C> <C> <C>
$ 799,219 $ 608,131 $ 4,250,293 $ 6,039,483 $ 2,664,555 $ 6,243,084
2,655,933 2,693,130 (64,790) (126,929) (127,514) (224,312)
2,112,364 (675,782) (135,631) 57,988 (224,150) (425,436)
----------- ----------- ------------- ------------ ------------ ------------
5,567,516 2,625,479 4,049,872 5,970,542 2,312,891 5,593,336
----------- ----------- ------------- ------------ ------------ ------------
(746,264) (605,389) (4,188,411) (5,948,776) (2,569,551) (6,017,570)
(1,741,650) (512,300)
----------- ----------- ------------- ------------ ------------ ------------
(2,487,914) (1,117,689) (4,188,411) (5,948,776) (2,569,551) (6,017,570)
----------- ----------- ------------- ------------ ------------ ------------
17,208,692 13,368,335 128,015,538 184,443,501 62,186,713 34,031,446
2,383,143 1,005,715 2,855,603 3,221,631 2,179,111 2,184,739
(5,903,893) (1,475,545) (126,693,916) (86,028,649) (51,649,069) (39,502,535)
----------- ----------- ------------- ------------ ------------ ------------
13,687,942 12,898,505 4,177,225 101,636,483 12,716,755 (3,286,350)
----------- ----------- ------------- ------------ ------------ ------------
16,767,544 14,406,295 4,038,686 101,658,249 12,460,095 (3,710,584)
20,195,497 5,789,202 152,429,056 50,770,807 94,255,658 97,966,242
----------- ----------- ------------- ------------ ------------ ------------
$36,963,041 $20,195,497 $ 156,467,742 $152,429,056 $106,715,753 $ 94,255,658
=========== =========== ============= ============ ============ ============
$ 57,866 $ 4,911 $ 102,417 $ 40,535 $ 117,259 $ 22,255
=========== =========== ============= ============ ============ ============
1,577,496 532,943 15,153,628 5,047,881 9,499,849 9,829,447
----------- ----------- ------------- ------------ ------------ ------------
1,299,557 1,080,769 12,476,302 18,330,395 6,261,971 3,426,440
192,723 83,247 354,633 320,424 220,289 220,346
(436,717) (119,463) (12,415,279) (8,545,072) (5,200,618) (3,976,384)
----------- ----------- ------------- ------------ ------------ ------------
1,055,563 1,044,553 415,656 10,105,747 1,281,642 (329,598)
----------- ----------- ------------- ------------ ------------ ------------
2,633,059 1,577,496 15,569,284 15,153,628 10,781,491 9,499,849
=========== =========== ============= ============ ============ ============
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 29
<PAGE> 31
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
U.S. GOVERNMENT FUND
================================
PERIOD ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
1998 1997
============ ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income....................................... $ 1,329,391 $ 1,167,183
Net realized gains (losses)................................. 307,594 (19,304)
Change in net unrealized appreciation (depreciation)........ (387,086) (45,018)
----------- ------------
Change in net assets resulting from operations............ 1,249,899 1,102,861
----------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income....................................... (1,306,803) (1,170,369)
Net realized gains from investments.........................
In excess of net realized gains from investments............
Return of capital...........................................
----------- ------------
Change in net assets from distributions to shareholders... (1,306,803) (1,170,369)
----------- ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold.............................. 92,299,681 14,417,612
Reinvestment of distributions............................... 1,305,983 598,123
Cost of fund shares redeemed................................ (37,806,981) (21,583,263)
----------- ------------
Change in net assets from capital transactions............ 55,798,683 (6,567,528)
----------- ------------
Total Change in Net Assets............................. 55,741,779 (6,635,036)
NET ASSETS:
Beginning of period......................................... 15,478,606 22,113,642
----------- ------------
End of period............................................... $71,220,385 $ 15,478,606
=========== ============
Undistributed net investment income......................... $ 26,698 $ 4,110
=========== ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period................... 1,465,864 2,098,931
----------- ------------
Shares sold................................................. 8,618,909 1,365,481
Shares issued in reinvestment of distributions.............. 122,429 57,071
Shares redeemed............................................. (3,537,465) (2,055,619)
----------- ------------
Change in shares outstanding................................ 5,203,873 (633,067)
----------- ------------
Outstanding shares at end of period......................... 6,669,737 1,465,864
=========== ============
</TABLE>
- ------------
(a) The Fund commenced operations on December 30, 1997.
(b) The Fund commenced operations on December 17, 1997.
(c) The Fund commenced operations on June 30, 1997.
(d) The Fund commenced operations on December 9, 1996.
(e) The Fund commenced operations on November 1, 1996.
See notes to financial statements.
30 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 32
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND INVESTMENT QUALITY BOND FUND TOTAL RETURN FUND
=========================== ============================= ===========================
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1998 1997 1998 1997 1998 1997(d)
============ ============ ============= ============= ============ ============
<S> <C> <C> <C> <C> <C>
$ 3,090,022 $ 3,228,723 $ 3,557,759 $ 3,291,395 $ 3,241,658 $ 2,213,316
632,649 491,896 613,268 775,742 (64,901) 734,395
(644,062) 795,460 (584,212) 1,082,257 (469,966) 1,003,707
----------- ------------ ------------ ------------ ----------- -----------
3,078,609 4,516,079 3,586,815 5,149,394 2,706,791 3,951,418
----------- ------------ ------------ ------------ ----------- -----------
(3,045,032) (3,187,522) (3,198,102) (3,322,442) (2,898,047) (2,231,855)
(492,095) (524,753) (761,994)
----------- ------------ ------------ ------------ ----------- -----------
(3,537,127) (3,187,522) (3,722,855) (3,322,442) (3,660,041) (2,231,855)
----------- ------------ ------------ ------------ ----------- -----------
33,633,888 66,036,447 45,573,590 105,924,171 10,956,400 100,529,378
3,856,099 2,522,572 3,569,093 3,032,320 3,141,363 1,985,084
(16,393,925) (41,888,712) (9,817,823) (48,100,615) (42,134,662) (5,371,369)
----------- ------------ ------------ ------------ ----------- -----------
21,096,062 26,670,307 39,324,860 60,855,876 (28,036,899) 97,143,093
----------- ------------ ------------ ------------ ----------- -----------
20,637,544 27,998,864 39,188,820 62,682,828 (28,990,149) 98,862,656
80,765,593 52,766,729 94,986,565 32,303,737 98,862,656 --
----------- ------------ ------------ ------------ ----------- -----------
$101,403,137 $ 80,765,593 $134,175,385 $ 94,986,565 $69,872,507 $ 98,862,656
============ ============ ============ ============ =========== ===========
$ 61,267 $ 16,277 $ 382,221 $ 22,564 $ 482,945 $ 139,334
============ ============ ============ ============ =========== ===========
8,314,810 5,497,972 9,488,598 3,294,124 9,642,346 --
- ------------ ------------ ------------ ------------ ----------- -----------
3,477,530 6,908,211 4,558,642 10,781,572 1,071,456 9,978,479
398,309 262,392 357,878 308,738 309,634 195,644
(1,698,125) (4,353,765) (979,401) (4,895,836) (4,161,928) (531,777)
- ------------ ------------ ------------ ------------ ----------- -----------
2,177,714 2,816,838 3,937,119 6,194,474 (2,780,838) 9,642,346
----------- ------------ ------------ ------------ ----------- -----------
10,492,524 8,314,810 13,425,717 9,488,598 6,861,508 9,642,346
============ ============ ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 31
<PAGE> 33
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHORT DURATION TAX EXEMPT FUND
================================
PERIOD ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
1998 1997
============ ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income....................................... $ 619,470 $ 1,331,922
Net realized gains (losses)................................. 71,716 68,232
Change in net unrealized appreciation (depreciation)........ (113,709) 175,031
----------- ------------
Change in net assets resulting from operations............ 577,477 1,575,185
----------- ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income....................................... (617,945) (1,330,765)
Net realized gains from investments......................... (24,982)
In excess of net realized gains from investments............
Return of capital...........................................
----------- ------------
Change in net assets from distributions to shareholders... (642,927) (1,330,765)
----------- ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold.............................. 1,075,192 25,806,604
Reinvestment of distributions............................... 492,986 1,017,341
Cost of fund shares redeemed................................ (17,895,317) (25,227,895)
----------- ------------
Change in net assets from capital transactions............ (16,327,139) 1,596,050
----------- ------------
Total Change in Net Assets............................. (16,392,589) 1,840,470
NET ASSETS:
Beginning of period......................................... 38,176,099 36,335,629
----------- ------------
End of period............................................... $21,783,510 $ 38,176,099
=========== ============
Undistributed net investment income......................... $ 4,907 $ 3,382
=========== ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period................... 3,788,693 3,630,620
----------- ------------
Shares sold................................................. 106,473 2,566,567
Shares issued in reinvestment of distributions.............. 48,936 101,327
Shares redeemed............................................. (1,770,937) (2,509,821)
----------- ------------
Change in shares outstanding................................ (1,615,528) 158,073
----------- ------------
Outstanding shares at end of period......................... 2,173,165 3,788,693
=========== ============
</TABLE>
- ------------
(a) The Fund commenced operations on December 30, 1997.
(b) The Fund commenced operations on December 17, 1997.
(c) The Fund commenced operations on June 30, 1997.
(d) The Fund commenced operations on December 9, 1996.
(e) The Fund commenced operations on November 1, 1996.
See notes to financial statements.
32 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 34
<TABLE>
<CAPTION>
BUNKER HILL
MONEY MARKET HIGH INCOME VALUE STOCK GROWTH STOCK
TAX EXEMPT BOND FUND FUND FUND FUND FUND
=========================== ============ ============ ============ ============
PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1998 1997 1998(b) 1998(a) 1998(a) 1998(a)
============ ============ ============ ============ ============ ============
<S> <C> <C> <C> <C> <C>
$ 1,340,311 $ 2,313,132 $ 271,645 $ 462,117 $ 46,569 $ 7,077
(50,940) 177,591 (1,461) 44,558 598,075 28,147
(225,830) 1,118,221 -- 74,568 170,675 296,098
- ----------- ------------ ----------- ----------- ----------- ------------
1,063,541 3,608,944 270,184 581,243 815,319 331,322
- ----------- ------------ ----------- ----------- ----------- ------------
(1,330,163) (2,313,809) (271,645) (236,191)
1,461
- ----------- ------------ ----------- ----------- ----------- ------------
(1,330,163) (2,313,809) (270,184) (236,191) -- --
- ----------- ------------ ----------- ----------- ----------- ------------
19,447,561 17,559,290 55,358,496 47,086,173 17,874,614 3,315,976
1,121,667 1,920,237 204,290 236,181 2,007,077
(11,357,761) (13,058,170) (39,309,432) (101,500) (10,119) (4,487)
- ----------- ------------ ----------- ----------- ----------- ------------
9,211,467 6,421,357 16,253,354 47,220,854 19,871,572 3,311,489
- ----------- ------------ ----------- ----------- ----------- ------------
8,944,845 7,716,492 16,253,354 47,565,906 20,686,891 3,642,811
57,578,595 49,862,103 -- -- -- --
- ----------- ------------ ----------- ----------- ----------- ------------
$66,523,440 $ 57,578,595 $16,253,354 $47,565,906 $20,686,891 $3,642,811
=========== ============ =========== =========== =========== ============
$ 15,706 $ 5,558 $ -- $ 225,926 $ 46,569 $ 7,077
=========== ============ =========== =========== =========== ============
5,932,070 5,266,366 -- -- -- --
- ----------- ------------ ----------- ----------- ----------- ------------
1,977,400 1,829,792 55,358,496 4,615,418 1,553,407 328,872
114,839 200,726 204,290 23,132 167,059
(1,159,630) (1,364,814) (39,309,432) (9,855) (851) (417)
- ----------- ------------ ----------- ----------- ----------- ------------
932,609 665,704 16,253,354 4,628,695 1,719,615 328,455
- ----------- ------------ ----------- ----------- ----------- ------------
6,864,679 5,932,070 16,253,354 4,628,695 1,719,615 328,455
=========== ============ =========== =========== =========== ============
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 33
<PAGE> 35
GLOBAL SHORT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
AUSTRALIA (AUSTRALIAN DOLLAR) (5.7%)
4,500,000 Queensland Treasury Corp.
8.000%, 08/14/01 $ 3,164.0
16,760,000 Australian Government Bond
9.500%, 05/15/03 12,925.0
-----------
AUSTRALIA (COST - $16,351.0) 16,089.0
GERMANY (GERMAN MARK) (19.4%)
11,000,000 LKB Bad - Wurt Finance
6.000%, 05/10/99 6,246.7
6,800,000 Treuhand Obligation
6.250%, 07/29/99 3,889.7
15,650,000 IBRD
7.250%, 10/13/99 9,091.5
10,000,000 KFW International Finance
7.500%, 01/24/00 5,865.0
18,000,000 Finland Government Bond
7.500%, 01/27/00 10,564.0
18,500,000 European Community Note
6.500%, 03/10/00 10,712.1
8,700,000 Dresdner Bank
6.500%, 05/22/00 5,040.0
5,300,000 European Investment Bank
6.000%, 07/24/00 3,055.6
-----------
GERMANY (COST - $55,060.8) 54,464.6
ITALY (ITALIAN LIRA) (15.1%)
27,300 mil. Italian Government Bond
8.250%, 07/01/99 16,042.1
44,850 mil. Italian Government Bond
7.500%, 10/01/99 26,337.2
-----------
ITALY (COST - $42,367.2) 42,379.3
JAPAN (JAPANESE YEN) (9.6%)
1,150 mil. Republic of Austria
5.000%, 01/22/01 9,707.4
1,350 mil. Japan Development Bank
6.500%, 09/20/01 12,136.6
560 mil. European Investment Bank
4.630%, 02/26/03 4,928.5
-----------
JAPAN (COST - $26,827.4) 26,772.5
SPAIN (SPANISH PESETA) (4.4%)
1,780 mil. Spanish Government Bond
6.750%, 04/15/00 12,182.8
-----------
SPAIN (COST - $12,121.4) 12,182.8
SWEDEN (SWEDISH KRONA) (19.1%)
208.8 mil. Swedish Government Bond
11.000%, 01/21/99 28,134.0
177.2 mil. Swedish Government Bond
10.250%, 05/05/00 25,181.8
-----------
SWEDEN (COST - $52,414.6) 53,315.8
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
UNITED STATES (UNITED STATES DOLLAR)
(24.6%)
18,800,000 FNMA Global Bond
5.750%, 09/05/00 $ 12,351.1
7,200,000 U.S. Treasury Note
6.500%, 04/30/99 7,267.5
10,850,000 U.S. Treasury Note
6.000%, 08/15/99 10,908.7
17,200,000 U.S. Treasury Note
7.750%, 01/31/00(a) 17,811.6
19,800,000 U.S. Treasury Note
6.625%, 07/31/01 20,369.3
-----------
UNITED STATES
(COST - $69,585.5) 68,708.2
INVESTMENT COMPANIES (0.6%)
1,664,825 Dreyfus Treasury Cash
Management Fund 1,664.8
-----------
TOTAL (COST - $276,392.7)(b) (98.5%) $275,577.0
===========
</TABLE>
Percentages indicated are based on net assets of $279,815,193.
(a) All or a portion of the security is held by the custodian in a segregated
account.
At April 30, 1998, the Fund's open swap contracts were as follows:
<TABLE>
<CAPTION>
SWAPS UNREALIZED APPRECIATION SETTLE DATE
- ------------------------- ----------------------- -----------
<S> <C> <C>
Merrill Lynch November 98 $42,825 6/15/98
</TABLE>
The swap consists of two components. The Fund benefits if Italian three month
LIBOR falls below 4.74%. For each 0.01% that the Italian three month LIBOR
falls/rises, the Fund's profit/loss is approximately $12,000. The Fund benefits
if German three month LIBOR rises above 3.805%. For each 0.01% that German three
month LIBOR rises/falls, the Fund's profit/loss is approximately $12,000.
(b) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<C> <S> <C>
Unrealized appreciation $ 1,843,654
Unrealized depreciation (2,659,289)
----------
Net unrealized depreciation $ (815,635)
==========
</TABLE>
FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
DELIVERY CONTRACT CONTRACT APPRECIATION
DATE CURRENCY PRICE VALUE (DEPRECIATION)
- -------- ------------------------ ---------- ------------ --------------
<S> <C> <C> <C> <C>
ASSETS:
07/20/98 Australian Dollar (sell) 0.654260 $ 29,278,135 $ 76,791
06/22/98 Japanese Yen (sell) 130.52000 27,735,213 117,395
---------- ----------
$ 57,013,348 $ 194,186
========== ==========
LIABILITIES:
06/10/98 German Mark (sell) 1.820140 $ 56,193,480 $ (947,175)
06/05/98 Italian Lira (sell) 1,818.6200 2,983,031 (81,072)
06/05/98 Italian Lira (sell) 1,782.3000 40,038,153 (266,800)
05/27/98 Spanish Peseta (sell) 153.15700 13,058,496 (77,750)
05/05/98 Swedish Krona (sell) 7.737000 2,347,551 (213)
07/09/98 Swedish Krona (sell) 7.979100 54,843,278 (1,847,024)
---------- ----------
$169,463,989 $(3,220,034)
========== ==========
</TABLE>
See notes to financial statements.
34 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 36
GLOBAL FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
CANADA (CANADIAN DOLLAR) (5.3%)
36,700,000 Canadian Government Bond
6.000%, 06/01/08 $ 26,871.2
-----------
CANADA (COST - $26,617.3) 26,871.2
DENMARK (DANISH KRONE) (1.0%)
35,000,000 Danish Government Bond
6.000%, 10/01/19 5,033.1
-----------
DENMARK (COST - $5,060.7) 5,033.1
GERMANY (GERMAN MARK) (15.2%)
10,000,000 Bayerische Vereinsbank
4.500%, 06/24/02 5,515.5
35,300,000 Bayerische Vereinsbank Global
4.500%, 06/24/02 19,554.5
5,020,000 Bundesobligation #114
6.500%, 03/15/00 2,912.1
20,000,000 LKB Bad-Wurt Finance
5.250%, 05/15/01 11,372.2
60,700,000 German Government Bond
6.250%, 04/26/06 36,703.5
-----------
GERMANY (COST - $77,081.8) 76,057.8
GREAT BRITAIN (BRITISH POUND) (7.0%)
19,200,000 UK Gilt
7.250%, 12/07/07 35,392.4
-----------
GREAT BRITAIN
(COST - $34,148.3) 35,392.4
ITALY (ITALIAN LIRA) (10.1%)
75,990 mil. Italian Gov't Bond
9.000%, 10/01/03 51,003.2
-----------
ITALY (COST - $50,302.4) 51,003.2
SWEDEN (SWEDISH KRONA) (9.8%)
167.3 mil. Swedish Government Bond
10.250%, 05/05/00 23,774.9
183 mil. Swedish Government Bond
6.500%, 10/25/06 25,549.5
-----------
SWEDEN (COST - $47,084.6) 49,324.4
UNITED STATES (UNITED STATES DOLLAR)
(49.9%)
31,850,000 FNMA Global Bond
6.375%, 08/15/07 21,165.3
70,000,000 FHLMC Discount Note 69,580.8
11,900,000 U.S. Treasury Note
6.375%, 05/15/00 12,079.5
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
12,000,000 U.S. Treasury Note
5.750%, 11/15/00(a) $ 12,038.7
27,200,000 U.S. Treasury Note
7.880%, 08/15/01(a) 28,997.9
43,400,000 U.S. Treasury Note
5.750%, 08/15/03(a) 43,571.9
9,600,000 U.S. Treasury Note
6.500%, 10/15/06 10,063.2
40,000,000 U.S. Treasury Bond
6.250%, 08/15/23(a) 41,129.2
11,600,000 U.S. Treasury Bond
6.125%, 11/15/27(a) 11,880.2
-----------
UNITED STATES
(COST - $245,277.9) 250,506.7
INVESTMENT COMPANIES (0.8%)
4,271,117 Dreyfus Treasury Cash
Management Fund 4,271.1
-----------
TOTAL (COST - $489,844.1)(b) (99.1%) $498,459.9
===========
</TABLE>
Percentages indicated are based on net assets of $503,037,506.
(a) All or a portion of the security is held by the custodian in a segregated
account.
At April 30, 1998, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION CURRENT APPRECIATION
# CONTRACT TYPE DATE MARKET VALUE (DEPRECIATION)
- --- ------------------- ---------- ------------ --------------
<C> <S> <C> <C> <C>
32 10 Year Treasury
Municipal Future 06/30/98 $ 3,594,000 $ 10,000
24 Japan 10 Year Bond
Future - Long 06/30/98 $23,865,546 (284,483)
50 Australian 10 Year
Bond Future - Short 06/30/98 $ 146,260 (145)
----------
$(274,628)
==========
</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 $11,121,256
Unrealized depreciation (2,505,441)
-----------
Net unrealized appreciation $ 8,615,815
===========
</TABLE>
SEMI-ANNUAL REPORT 35
<PAGE> 37
GLOBAL FIXED INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1998
FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
DELIVERY CONTRACT CONTRACT APPRECIATION
DATE CURRENCY PRICE VALUE (DEPRECIATION)
- -------- -------------------- ---------- ------------ --------------
<S> <C> <C> <C> <C>
ASSETS:
07/20/98 Australian Dollar $ 21,852,284 $ 57,314
(sell) 0.654260
05/11/98 Canadian Dollar 3,055,752 27,238
(sell) 1.417000
--------- ----------
$ 24,908,036 $ 84,552
========= ==========
LIABILITIES:
05/12/98 British Pound (sell) 1.632300 $ 11,099,640 $ (259,678)
05/12/98 British Pound (sell) 1.615820 24,948,338 (843,997)
05/11/98 Canadian Dollar
(sell) 1.437290 23,968,719 (126,498)
06/10/98 Danish Krone (sell) 6.865000 5,098,325 (27,179)
06/10/98 German Mark (sell) 1.811080 2,926,431 (34,514)
06/10/98 German Mark (sell) 1.794000 25,641,026 (57,743)
06/10/98 German Mark (sell) 1.821000 5,491,488 (95,201)
06/10/98 German Mark (sell) 1.820140 44,853,693 (756,036)
06/05/98 Italian Lira (sell) 1,818.6200 3,003,376 (81,625)
06/05/98 Italian Lira (sell) 1,782.3000 49,048,982 (326,845)
05/05/98 Swedish Krona (sell) 7.737000 2,216,395 (201)
07/09/98 Swedish Krona (sell) 7.979100 50,632,277 (1,705,205)
--------- ----------
$248,928,690 $(4,314,722)
========= ==========
</TABLE>
See notes to financial statements.
36 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 38
GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ----------- --------------------------- -----------
COMMON STOCKS (52.2%)
<C> <S> <C>
BASIC MATERIALS (1.8%)
500 Castorama Dubois Invest
$ 82.6
1,271 Schneider 95.0
---------
177.6
BASIC MATERIALS
CONSUMER GOODS (17.6%)
1,500 Abbott Laboratories(a) 109.7
7,000 Brio Technology 77.0
1,206 Bristol - Myers Squibb
Company(a) 127.7
8,770 Diageo PLC 104.7
792 Electrolux 73.7
2,000 Fuji Photo Film 71.3
1,200 Home Depot Inc.(a) 83.6
8,000 Hutchison Whampoa 49.5
7,000 Imperial Chemical Inds. PLC 127.1
3,000 Ines 22.0
45 Nestle, SA 87.3
1,000 Nichii Gakkan Company 32.6
40 Novartis, AG 66.2
31,000 PT Gudang Garam 36.7
152,400 Qingling Motors Company -
CLH 65.9
2,880 Scandic Hotels 109.8
1,000 Seven - Eleven Japan 67.0
700 Sony Corp. 58.3
5,000 Toppan Printing Corp.
Limited 59.5
2,000 Toyota Motor Y50 52.2
3,000 Wal-Mart Stores(a) 151.7
3,600 Walgreen Company(a) 124.2
---------
1,757.7
CONSUMER GOODS
DIVERSIFIED OPERATIONS (1.3%)
10,000 Swire Pacific 50.0
1,300 Vendex International N.V. 83.4
---------
133.4
DIVERSIFIED OPERATIONS
ENERGY (1.9%)
1,386 Exxon Corp.(a) 101.1
38,000 Guangdong Kelon Electric 39.0
1,560 Tosco Corp.(a) 55.6
---------
195.7
ENERGY
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ----------- --------------------------- -----------
<C> <S> <C>
FINANCIALS (16.0%)
1,440 Allstate Corp.(a) $ 138.6
1,550 Argentaria Corp Bancaria 129.2
920 Axa - UAP 107.9
6,308 Banco de Galicia
Y B.A.s - Sp. ADR(a) 154.5
6,000 Banco San Paulo 86.7
17,126 Bank Of East Asia 30.8
1,495 Banque Nationale De Paris 126.0
3,500 Barclays PLC 100.4
970 Bayerische Vereinsbank 73.8
1,250 BG Bank A/S 73.1
14,000 City Developments 60.6
600 Credit Suisse Group - Reg 132.0
5,000 National Westminster Bank 100.0
12,000 Overseas Chinese Bank 63.3
10,000 Sun Hung Kai Properties 59.4
2,500 Tarkett Sommer AG 86.4
4,880 Westpac Banking Corp. 32.7
90 Zuerich Versicherungs 54.9
---------
1,610.3
FINANCIALS
CAPITAL GOODS (7.5%)
679 Alcatel Alsthom 125.8
2,000 Bridgestone Tire Co 45.7
3,805 British Aerospace PLC 127.5
1,700 Computer Associates
International Inc.(a) 99.6
1,872 General Electric Company(a) 159.4
8,000 General Electric Company
PLC 66.2
1,000 Murata Manufacturing Corp.
Ltd. 29.4
4,200 Nihon Dempa Kogyo 29.8
6,000 Nippon Comsys Corp. 70.6
---------
754.0
CAPITAL GOODS
UTILITIES (5.0%)
70 Nippon Telegraph &
Telephone Corp. 61.5
800 Tele Danmark 67.2
1,000 Telebras - Sponsored ADR 121.9
386 Telecel - Communicacoes
Pessoais(a)(c) 66.5
12,798 Telecom Italia Sponsored 95.7
ADR(c)
8,000 Vodafone 88.1
---------
500.9
UTILITIES
TRANSPORTATION (1.1%)
41,000 Cosco Pacific Limited 27.8
3,600 Deutsche Lufthansa - Reg 85.7
---------
113.5
TRANSPORTATION
TOTAL COMMON STOCKS (COST - $4,344.2) 5,243.1
</TABLE>
SEMI-ANNUAL REPORT 37
<PAGE> 39
GLOBAL BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ----------- --------------------------- -----------
BONDS AND NOTES (46.6%)
<C> <S> <C>
GERMANY (GERMAN MARK) (2.5%)
430,000 Bundesobligation #114
6.500%, 03/15/00 $ 249.4
GREAT BRITAIN (BRITISH POUND) (2.6%)
140,000 UK Gilt
7.250%, 12/07/07(a) 258.1
ITALY (ITALIAN LIRA) (2.3%)
350 mil. BTPS
9.000%, 10/01/03(a) 234.9
SWEDEN (SWEDISH KRONA) (2.1%)
1,500,000 Swedish Government Bond
10.250%, 05/05/00 213.2
UNITED STATES
(UNITED STATES DOLLAR) (33.3%)
500,000 FHLMC Discount Note(a) 499.5
430,000 U.S. Treasury Note
6.375%, 05/15/00(a) 436.5
1,270,000 U.S. Treasury Note
5.750%, 10/31/02(a) 1,274.0
830,000 U.S. Treasury Note
6.500%, 10/15/06(a) 870.0
250,000 U.S. Treasury Bond
6.250%, 08/15/23(a) 257.1
---------
UNITED STATES 3,337.1
INVESTMENT COMPANIES (3.8%)
385,379 Dreyfus Treasury Cash
Management Fund 385.4
---------
TOTAL BONDS AND NOTES (COST - $4,591.2) 4,678.1
---------
TOTAL (COST - $8,935.4)(b) (98.8%) $9,921.2
=========
</TABLE>
Percentages indicated are based on net assets of $10,039,271.
Distribution of investments by country of issue, as a percentage of total value
of investment securities, is as follows:
<TABLE>
<C> <S> <C>
United States 49.9%
Great Britain 9.8%
Japan 6.0%
France 5.4%
Germany 5.0%
Italy 4.2%
Sweden 4.0%
Switzerland 3.4%
Hong Kong 3.2%
Argentina 1.6%
Denmark 1.4%
Spain 1.3%
Singapore 1.2%
Other, less than 1% 3.6%
-------
100.0%
</TABLE>
(a) All or a portion of the security is held by the custodian in a segregated
account.
At April 30, 1998, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
EXPIRATION UNREALIZED
NO. CONTRACT TYPE DATE MARKET VALUE APPRECIATION
- --- -------------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
7 S&P 500 Future 06/19/98 $1,958,600 $90,562
</TABLE>
(b) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<C> <S> <C>
Unrealized appreciation $1,157,771
Unrealized depreciation (171,990)
-----------
Net unrealized $ 985,781
appreciation
===========
</TABLE>
(c) Non-income producing security.
FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
DELIVERY CONTRACT CONTRACT APPRECIATION
DATE CURRENCY PRICE VALUE (DEPRECIATION)
- -------- ----------------- --------- ---------- --------------
<C> <S> <C> <C> <C>
ASSETS:
06/22/98 Japanese Yen
(sell) 130.48500 $ 613,097 $ 2,759
---------- --------
$ 613,097 $ 2,759
========== ========
LIABILITIES:
05/01/98 British Pound
(sell) 1.665500 $ 63,973 $ (230)
05/12/98 British Pound
(sell) 1.615825 1,324,977 (44,824)
06/12/98 French Franc
(sell) 6.108700 900,355 (15,970)
06/20/98 German Mark
(sell) 1.811080 276,078 (3,256)
05/05/98 Swedish Krona
(sell) 7.737000 19,872 (2)
07/09/98 Swedish Krona
(sell) 7.979100 223,083 (7,513)
---------- --------
$2,808,338 $(71,795)
========== ========
</TABLE>
See notes to financial statements.
38 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 40
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ----------------------------- -----------
COMMON STOCKS (92.6%)
<C> <S> <C>
BASIC MATERIALS (3.3%)
2,500 Castorama Dubois Invest $ 413.0
4,053 Schneider, SA 303.1
----------
BASIC MATERIALS 716.1
CONSUMER GOODS (25.2%)
1,105 Adecco, SA 482.7
56,592 Diageo PLC 675.9
4,047 Electrolux 376.6
8,000 Fuji Photo Film 285.3
23,000 Hutchison Whampoa 142.2
29,000 Imperial Chemical Industries
PLC 526.4
26,000 Ines 190.9
31,000 K.F.C. Holdings (Malaysia)
Bhd 49.0
160 Nestle, SA 310.5
4,000 Nichii Gakkan Company 130.2
224 Novartis, AG 370.5
94,000 PT Gudang Garam 111.2
512,000 Qingling Motors
Company - CLH 221.5
5,200 Quimica Y Mineral Chil - Sp.
ADR 225.9
9,000 Scandic Hotels 343.2
4,000 Seven - Eleven Japan 268.0
3,400 Sony Corp. 283.4
17,000 Toppan Printing Corp. Limited 202.4
12,000 Toyota Motor Y50 313.4
----------
CONSUMER GOODS 5,509.2
DIVERSIFIED OPERATIONS (2.5%)
36,000 Swire Pacific A 179.9
5,675 Vendex International N.V. 364.1
----------
DIVERSIFIED OPERATIONS 544.0
ENERGY (2.5%)
2,555 Elf Aquitaine 335.0
198,000 Guangdong Kelon Electric 203.2
----------
ENERGY 538.2
FINANCIALS (32.8%)
4,360 Axa - UAP 511.5
12,802 Banco de Galicia Y B.A.s -
Sp. ADR 313.6
32,000 Banco San Paulo 462.5
8,263 Banco Santander, SA 436.5
47,967 Bank Of East Asia 86.4
4,867 Banque Nationale De Paris 410.1
15,900 Barclays PLC 456.3
7,050 Bayerische Vereinsbank 536.4
</TABLE>
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ----------------------------- -----------
<C> <S> <C>
7,750 BG Bank A/S $ 453.0
44,000 City Developments 190.5
2,570 Credit Suisse Group - Reg 565.6
37,600 National Westminster Bank 752.3
50,500 Nordenbanken Holding SKr 7 372.1
41,000 Overseas Chinese Bank 216.3
20,000 Sun Hung Kai Properties 118.8
12,200 Tarkett Sommer AG 421.6
21,400 Westpac Banking Corp. 143.6
1,200 Zuerich Versicherungs 731.4
----------
FINANCIALS 7,178.5
CAPITAL GOODS (11.6%)
2,136 Alcatel Alsthom 395.8
13,000 Bridgestone Tire Co. 297.2
15,448 British Aerospace PLC 517.5
58,000 General Electric Company PLC 479.9
8,000 Murata Manufacturing Corp.
Ltd. 235.0
16,800 Nihon Dempa Kogyo 119.3
23,000 Nippon Comsys Corp. 270.6
2,000 Rohm Company 226.2
----------
CAPITAL GOODS 2,541.5
UTILITIES (10.8%)
330 Nippon Telegraph &
Telephone Corp. 289.8
4,750 Tele Danmark 399.1
2,950 Telebras - Sponsored ADR 359.5
1,630 Telecel - Communicacoes
Pessoais(b) 281.0
54,813 Telecom Italia Sponsored
ADR(b) 410.0
55,900 Vodafone 615.3
----------
UTILITIES 2,354.7
TRANSPORTATION (3.9%)
8,000 Brisa Auto - Estradas 356.7
173,000 Cosco Pacific Limited 117.3
16,367 Deutsche Lufthansa - Reg 389.5
----------
TRANSPORTATION 863.5
TOTAL COMMON STOCKS (COST - $17,848.0) 20,245.7
-----------
INVESTMENT COMPANIES (3.1%)
672,318 Dreyfus Treasury Cash
Management Fund 672.3
----------
TOTAL (COST - $18,520.3)(a) (95.7%) $20,918.0
==========
</TABLE>
Percentages indicated are based on net assets of $21,864,173.
SEMI-ANNUAL REPORT 39
<PAGE> 41
INTERNATIONAL EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1998
Distribution of investments by country of issue, as a percentage of total value
of investment securities, is as follows:
<TABLE>
<C> <S> <C>
Great Britain 18.4%
Japan 14.2%
Switzerland 11.2%
France 10.8%
Germany 10.7%
Sweden 5.0%
Hong Kong 4.9%
Italy 4.0%
Denmark 3.9%
Portugal 2.9%
Spain 2.0%
Singapore 1.8%
Netherlands 1.7%
Brazil 1.6%
Argentina 1.4%
Other, less than 1% 2.4%
United States (cash
equivalent) 3.1%
---------
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>
<C> <S> <C>
Unrealized appreciation $3,384,765
Unrealized depreciation (987,069)
-----------
Net unrealized
appreciation $2,397,696
===========
</TABLE>
(b) Non Income Producing Security.
See notes to financial statements.
40 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 42
EUROPEAN GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- ------- ------------------------------- -----------
COMMON STOCKS (96.7%)
<C> <S> <C>
BASIC MATERIALS (28.2%)
2,998 Akzo Nobel $ 610.0
14,495 BASF AG 645.5
13,301 Bayer AG 591.6
8,737 Bilfinger & Berger 294.6
1,510 Bouygues 238.1
1,109 Buderus AG 521.1
825 Dyckerhoff Pfd. 284.1
719 Dyckerhoff AG 232.4
2,717 Hochtief AG 113.3
26,702 Hollandsche Beton Groep, NV 556.5
28,315 Imperial Chemical Inds. PLC 514.0
10,419 Koninklijke Hoogovens 469.4
7,820 Lafarge, SA 738.2
2,052 PWA - Papierw Waldhof Aschaff 362.5
544 Preussag 193.4
22,329 Rio Tinto PLC 320.4
2,051 Thyssen, AG 468.9
32,981 Usinor, SA 493.3
----------
BASIC MATERIALS 7,647.3
CONSUMER GOODS (15.5%)
840 Accor, SA 228.8
64,071 B.A.T. Industries PLC 604.0
13,733 Bass PLC 260.5
135 Canal Plus 23.4
3,611 Casino Guichard 241.8
14,692 Douglas Holdings, AG 650.2
34,144 Elsevier, NV 515.5
3,633 Eridania Beghin-Say 787.3
272 LVMH FFR10 56.0
1,758 Metro, AG 86.8
9,982 Pernod-Ricard 688.4
8,227 Sainsbury (J) PLC 64.4
----------
CONSUMER GOODS 4,207.1
ENERGY (3.1%)
2,119 Elf Aquitaine 277.8
10,360 Royal Dutch Petroleum 571.9
----------
ENERGY 849.7
</TABLE>
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- ------- ------------------------------- -----------
<C> <S> <C>
FINANCIALS (21.6%)
16,474 Abbey National PLC $ 309.2
25,178 ABN Amro Holdings, NV 613.2
6,670 ASR Verzekeringsgroep, NV 542.2
815 Axa-UAP 95.6
3,233 Banque Nationale De Paris 272.4
8,222 Bayer Hypoth-Und Wechsel Bank 469.3
6,995 CIE Financiere De Paribas 744.0
23,272 Commercial Union PLC 435.3
8,825 Dresdner Bank 477.6
3,999 Havas 362.9
4,770 HSBC Holdings Ord 140.3
3,714 Ing Groep N.V. 241.4
45,463 Royal & Sun Alliance Insurance
Group 507.6
2,783 Societe Generale 579.0
406 Suez Lyonnaise Des Eaux 68.8
----------
FINANCIALS 5,858.8
CAPITAL GOODS (12.8%)
1,516 BIC FFR25 104.3
179,651 BTR PLC 596.8
86,297 General Electric Company PLC 714.0
11,974 Lagardere S.C.A. 457.7
183 Man AG 61.9
1,331 Merck KGAA 51.9
4,390 RWE, AG 223.4
1,055 St. Gobain Compaignie 175.7
11,102 Stork N.V. 401.8
10,537 Thomson CSF 416.8
4,197 VEBA, AG 277.4
----------
CAPITAL GOODS 3,481.7
UTILITIES (12.3%)
65,663 BG PLC 350.7
72,191 British Telecom PLC 783.1
10,218 Deutsche Telekom 258.6
4,453 France Telecom FFR25 242.2
12,840 Koninklijke PTT Nederlands, NV 663.6
62,915 National Power PLC 612.6
46,795 Scottish Power PLC 430.0
----------
UTILITIES 3,340.8
</TABLE>
SEMI-ANNUAL REPORT 41
<PAGE> 43
EUROPEAN GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1998
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- ------- ------------------------------- -----------
<C> <S> <C>
TRANSPORTATION (3.2%)
15,814 Koninklijke Pakhoed, NV $ 579.3
11,329 Nedlloyd Groep 272.0
----------
TRANSPORTATION 851.3
TOTAL COMMON STOCKS
(COST - $22,914.5) 26,236.7
----------
INVESTMENT COMPANIES (4.7%)
1,286,759 Dreyfus Treasury Cash
Management Fund 1,286.8
----------
TOTAL (COST - $24,201.3) (a) (101.4%) $27,523.5
==========
Percentages indicated are based on net assets of
$27,131,486.
Distribution of investments by
country of issue, as a percentage
of total value investment
securities, as follows:
France 26.5%
Great Britain 24.2%
Germany 22.8%
Netherlands 21.9%
United States (cash
equivalent) 4.7%
---------
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>
<C> <S> <C>
Unrealized appreciation $3,601,095
Unrealized depreciation (278,828)
---------
Net unrealized appreciation $3,322,267
=========
</TABLE>
See notes to financial statements.
42 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 44
GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ ----------
<C> <S> <C>
COMMON STOCKS (46.3%)
BASIC INDUSTRIES (9.2%)
165,150 Du Pont (E.I.) De Nemours &
Co. $ 12,025.0
201,580 International Paper Company 10,520.0
-----------
BASIC INDUSTRIES 22,545.0
CONGLOMERATES & HOLDING COMPANIES (4.1%)
108,415 Minnesota Mining & Manuf. Co. 10,231.7
DURABLES (4.5%)
163,345 General Motors Corp. 11,005.4
ENERGY (10.6%)
133,340 Chevron Corp. 11,025.6
171,165 Exxon Corp. 12,484.3
42,616 Texaco Inc. 2,620.9
---------
ENERGY 26,130.8
FINANCE (4.8%)
91,030 J.P. Morgan & Company 11,947.7
HEALTH (0.1%)
2,725 Merck & Company Inc. 328.4
INDUSTRIAL MACHINERY & EQUIPMENT (0.1%)
4,950 Caterpillar Intl 281.8
NONDURABLES (4.2%)
16,195 Goodyear Tire & Rubber 1,133.6
234,160 Phillip Morris Companies Inc. 8,737.1
8,859 Raytheon Co. - Class A 488.9
-----------
NONDURABLES 10,359.6
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ ----------
<C> <S> <C>
TECHNOLOGY (8.7%)
233,720 AT&T Corp. $ 14,037.8
101,915 Eastman Kodak 7,357.0
-----------
TECHNOLOGY 21,394.8
-----------
TOTAL COMMON STOCKS
(COST - $97,013.0) 114,225.2
INVESTMENT COMPANIES (53.6%)
1,122,540 S & P Depositary Receipt 124,987.8
7,183,340 Dreyfus Treasury Cash
Management Fund 7,183.3
-----------
INVESTMENT COMPANIES 132,171.1
-----------
TOTAL (COST - $200,908.2)(a) (99.9%) $246,396.3
===========
</TABLE>
Percentages indicated are based on net assets of
$246,709,556.
(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 $46,453,277
Unrealized depreciation (965,196)
-----------
Net unrealized appreciation $45,488,081
===========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 43
<PAGE> 45
MARKET RETURN FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
ASSET BACKED SECURITIES (3.7%)
500,000 Triangle Funding 97-14
7.494%, 10/15/01 $ 499.7
151,076 Pacific SW97-1
6.060%, 06/17/02 151.1
750,000 Ford 1998 A Class D
7.500%, 05/15/03 735.5
----------
ASSET BACKED SECURITIES 1,386.3
COLLATERALIZED MORTGAGE OBLIGATIONS (35.5%)
CORPORATE (20.2%)
1,000,000 Merrill Lynch Mortgage
Investors
6.280%, 06/15/06 1,013.4
154,371 Drexel Burnham Lambert Trust
6.438%, 05/01/16 154.4
497,686 Merill Lynch
6.225%, 07/25/17 497.7
147,924 Drexel Burnham Lambert Trust
6.488%, 10/01/18 148.8
833,049 GMBS 90-5A
6.685%, 12/25/20 833.1
189,523 Prudential Home Mortgage
6.451%, 05/25/23 189.5
848,951 Bear Stearns Mortgage
Securities 849.1
6.600%, 04/25/24
667,175 Residential Funding
5.750%, 01/25/24 664.3
756,092 Merit Securities
6.002%, 05/28/25 756.2
500,000 Bear Stearns Mortgage
7.250%, 11/25/27 502.0
904,933 Contimortgage Home Equity
5.996%, 03/15/27 904.9
1,000,000 Headlands Mortgage Securities
6.950%, 11/25/27 1,001.9
----------
CORPORATE 7,515.3
U.S. GOVERNMENT AGENCIES (15.3%)
108,372 FNMA 1991-121 F
5.988%, 09/25/98 108.4
88,526 FNMA G64-6
8.000%, 10/17/00 90.2
324,055 FHLMC 1519D
6.025%, 01/15/06 324.8
144,152 FNMA 93-155D
5.500%, 02/25/14 143.6
921,892 FHLMC 1857-F
6.138%, 03/15/18 926.2
1,644 FNMA 89-48 G
8.000%, 03/25/18 1.6
36,654 FNMA 1988-11
6.538%, 05/25/18 36.7
1,392,008 FNMA G94-7 F-ARM
6.138%, 12/17/19 1,399.3
685,974 FHLMC 1009
6.225%, 10/15/20 692.4
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
880,048 FHLMC 1054 H
6.688%, 03/15/21 $ 898.2
13,385 FNMA G92-25
6.170%, 04/25/21 13.4
1,000,000 FNMA G92-25F
6.388%, 09/25/22 1,007.3
----------
U.S. GOVERNMENT AGENCIES 5,642.1
----------
COLLATERALIZED MORTGAGE 13,157.4
OBLIGATIONS
MORTGAGE BACKED SECURITIES (6.3%)
163,430 FNMA 364174
11.000%, 10/01/06 177.1
794,203 FNMA-ARM
7.218%, 06/01/15 814.6
123,203 GNMA #8368 ARM
7.130%, 06/20/18 126.2
930,204 FHLMC
7.478%, 11/01/18 959.3
236,877 FNMA 342044 ARM
7.590%, 06/01/25 246.1
----------
MORTGAGE BACKED SECURITIES 2,323.3
COMMERCIAL PAPER (9.4%)
1,700,000 G.E. Capital Corporation
5.501%, 06/03/98 1,700.0
1,800,000 Merrill Lynch
0.000%, 06/23/98 1,785.5
----------
COMMERCIAL PAPER 3,485.5
CORPORATE BONDS (31.7%)
AIRLINES (2.8%)
1,000,000 Northwest Airlines Corp.
8.375%, 03/15/04 1,035.0
CONGLOMERATES & HOLDING COMPANIES (4.0%)
1,000,000 Hutchinson Whampoa
6.950%, 08/01/07 959.1
500,000 News America Holdings
7.450%, 06/01/00 513.1
----------
CONGLOMERATES & HOLDING 1,472.2
COMPANIES
DURABLES (0.3%)
100,000 General Motors Acceptance
Corp.
9.130%, 07/15/01 108.5
FINANCE (12.5%)
1,000,000 Century
7.125%, 02/15/11 999.0
1,000,000 China International Trust
9.000%, 10/15/06 1,057.5
</TABLE>
44 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 46
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
500,000 Contifinancial
7.500%, 03/15/02 $ 499.6
1,000,000 JP Morgan
6.375%, 08/25/98(a) 999.0
100,000 Lehman Brothers Holdings
8.380%, 02/15/99 101.7
300,000 Lehman Brothers Holdings
7.630%, 07/15/99 305.3
150,000 Nationsbank Corp.
5.750%, 01/17/01 148.7
500,000 Salomon, Inc.
5.879%, 07/23/01 500.0
----------
FINANCE 4,610.8
HEALTH (2.9%)
1,000,000 Tenet Healthcare
8.625%, 12/01/03 1,057.5
METALS & STEELS (3.5%)
1,250,000 Ryerson Tull, Inc.
8.500%, 07/15/01 1,300.0
MULTIMEDIA (3.5%)
750,000 Jones Intercable
9.625%, 03/15/02 803.4
500,000 Time Warner Inc.(a)
4.900%, 07/29/99 492.5
----------
MULTIMEDIA 1,295.9
TECHNOLOGY (2.2%)
300,000 AT & T Capital Corp.
5.610%, 02/01/99 299.0
500,000 TCI Communication
6.381%, 03/12/01 500.8
----------
TECHNOLOGY 799.8
----------
CORPORATE BONDS 11,679.7
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
U.S. TREASURY NOTES (5.4%)
2,000,000 U.S. Treasury Note
5.625%, 02/28/01 $ 2,000.1
INVESTMENT COMPANIES (5.3%)
9,500 S & P Depositary Receipt
1,057.8
874,409 Dreyfus Treasury Cash
Management Fund 874.4
----------
INVESTMENT COMPANIES 1,932.2
----------
TOTAL (COST - $35,811.5)(b) (97.3%) $35,964.5
==========
</TABLE>
Percentages indicated are based on net assets of
$36,963,041.
All securities listed above are held by the custodian in a segregated account.
At April 30, 1998, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER
OF EXPIRATION CURRENT UNREALIZED
CONTRACTS CONTRACT TYPE DATE VALUE APPRECIATION
- --------- ----------------- ---------- ----------- --------------
<C> <S> <C> <C> <C>
6 5 Year Treasury
Future 06/19/98 $ 653,344 $ 1,313
128 S&P 500 Future 06/19/98 35,814,400 1,543,037
---------- -----------
$36,467,744 $1,544,350
</TABLE>
(a) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(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 $229,325
Unrealized depreciation (76,319)
--------
Net unrealized appreciation $153,006
========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 45
<PAGE> 47
LIMITED MATURITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
ASSET BACKED SECURITIES (15.5%)
7,000,000 Premier Auto Trust
6.580%, 10/06/00 $ 7,070.3
2,850,476 Olympic Auto. Receivables
Trust
7.880%, 07/15/01 2,896.3
193,185 Chase Manhattan Grant Tr.
1995-A
6.000%, 09/17/01 193.5
7,000,000 Chase Manhattan Auto
5.750%, 10/15/01 6,984.7
7,000,000 SBC Glacier Finance Limited
5.875%, 09/10/02(a) 6,995.6
-----------
ASSET BACKED SECURITIES 24,140.4
COLLATERALIZED MORTGAGE OBLIGATIONS
(15.6%)
3,276,544 FNMA 94-79 E
7.000%, 04/25/99 3,282.5
4,247,733 FHLMC 1880-PF
5.925%, 04/15/08 4,252.9
3,911,694 Headlands Mortgage 97-1A2
7.750%, 03/25/12 3,981.4
295,051 FNMA 93-37 PD
6.000%, 08/25/13 294.0
1,441,518 FNMA 93-155D
5.500%, 02/25/14 1,436.2
2,779,750 FNMA 92-159PE
6.000%, 12/25/14 2,773.2
1,314,729 GMBS 90-5A
6.685%, 12/25/20 1,314.7
3,481,000 Bear Stearns Mortgage
7.250%, 11/25/27 3,495.1
3,801,946 RAST 1996 A11
7.050%, 02/25/27 3,801.9
-----------
COLLATERALIZED MORTGAGE 24,631.9
OBLIGATIONS
MORTGAGE BACKED SECURITIES (0.9%)
1,276,464 FNMA
9.500%, 09/01/24 1,363.8
COMMERCIAL PAPER (11.5%)
8,000,000 American Express Comm. Paper
5.523%, 06/09/98 8,000.0
3,000,000 Chevron Oil Finance Comm.
Paper 3,000.0
5.513%, 06/09/98
7,000,000 GMAC Comm. Paper
5.509%, 06/08/98 7,000.0
-----------
COMMERCIAL PAPER 18,000.0
CORPORATE BONDS (24.0%)
AEROSPACE & DEFENSE (1.9%)
3,000,000 Lockheed Martin Corp.
6.630%, 06/15/98 3,001.3
FINANCE (10.1%)
7,000,000 Ahmanson Finance Note
5.880%, 02/27/01 6,947.5
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
3,000,000 JP Morgan
6.375%, 08/25/98(a) $ 2,997.0
6,000,000 MBNA America Bank
6.050%, 05/05/99 6,001.1
-----------
FINANCE 15,945.6
INDUSTRIAL EQUIPMENT (2.9%)
1,500,000 Ingersoll-Rand
6.540%, 08/24/98 1,501.3
3,000,000 Paccar Financial Corp.
5.750%, 02/15/01 2,970.0
-----------
INDUSTRIAL EQUIPMENT 4,471.3
MULTIMEDIA (4.1%)
6,500,000 Time Warner Inc.
4.900%, 07/29/99(a) 6,402.5
TECHNOLOGY (4.9%)
2,700,000 AT&T Capital Corp.
6.390%, 01/22/99 2,706.9
5,000,000 TCI Communication
6.381%, 03/12/01 5,007.9
-----------
TECHNOLOGY 7,714.8
CORPORATE BONDS 37,535.5
U.S. TREASURY NOTES (29.3%)
6,000,000 U.S. Treasury Note
5.750%, 12/31/98 6,012.2
10,000,000 U.S. Treasury Note
5.875%, 01/31/99 10,026.0
28,000,000 U.S. Treasury Note
6.500%, 04/30/99 28,262.4
1,500,000 U.S. Treasury Note
6.880%, 08/31/99 1,525.1
-----------
U.S. TREASURY NOTES 45,825.7
INVESTMENT COMPANIES (3.6%)
5,575,096 Dreyfus Treasury Cash
Management Fund 5,575.1
-----------
TOTAL (COST - $157,035.9)(b) (100.4%) $157,072.4
===========
</TABLE>
Percentages indicated are based on net assets of
$156,467,742.
(a) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(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 $ 142,038
Unrealized depreciation (105,462)
----------
Net unrealized appreciation $ 36,576
==========
</TABLE>
See notes to financial statements.
46 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 48
SHORT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
ASSET BACKED SECURITIES (2.8%)
2,158,233 Pacific SW97 - 1
6.060%, 06/17/02 $ 2,158.2
828,786 Fleetwood Credit Grant. Trust
1996 - A 839.3
6.750%, 10/17/11
-----------
ASSET BACKED SECURITIES 2,997.5
COLLATERALIZED MORTGAGE OBLIGATIONS
(30.2%)
2,500,000 Capstead Securities Corp. IV
42 - 12D
7.600%, 08/25/07 2,516.4
1,564,221 FNMA 1994 - 87
6.138%, 03/25/09(a) 1,570.6
1,166,646 Headlands Mortgage 97 - 1A2
7.750%, 03/25/12 1,187.4
368,814 FNMA 43 - 37PD
6.000%, 08/25/13 367.5
3,687,567 FHLMC 1857FB
6.138%, 03/15/18(a) 3,704.9
2,500,000 Westam Mtg. Financial Corp.
7G
9.400%, 12/01/18 2,543.7
2,207,555 Paine Webber Mtg. Accept.
93 - 7 Al
7.500%, 07/25/23(a) 2,222.7
1,137,469 Residential Funding Corp.
93 - 539A1
6.250%, 10/25/23(a) 1,139.3
4,283,090 FHLMC 2012F
6.088%, 04/15/26 4,292.6
4,008,816 FNMA1997 - 47PA
7.500%, 11/25/26(a) 3,332.3
2,593,589 FNMA1997 - 32FA
6.288%, 04/25/27(a) 2,621.1
1,727,426 Residential Funding Corp.
97 - 512 A1 1,730.1
7.000%, 08/25/27
2,435,081 Countrywide Home Loans 97 - 5
A1
7.125%, 09/25/27 2,438.9
2,500,000 Bear Stearns Mortgage
7.250%, 11/25/27 2,510.2
-----------
COLLATERALIZED MORTGAGE 32,177.7
OBLIGATIONS
MORTGAGE BACKED SECURITIES (14.6%)
5,121,762 GNMA #7800507
9.000%, 06/15/09 5,509.1
5,000,000 FNMA TBA
6.500%, 05/01/13(c) 5,017.1
5,000,000 FHLMC TBA
7.000%, 05/01/28(c) 5,060.9
-----------
MORTGAGE BACKED SECURITIES 15,587.1
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
COMMERCIAL PAPER (4.7%)
5,000,000 Chevron Oil Finance Comm.
Paper $ 5,000.0
CORPORATE BONDS (25.9%)
CONGLOMERATES & HOLDING COMPANIES (1.9%)
1,000,000 Hutchinson Whampoa
6.950%, 08/01/07(d) 959.1
1,000,000 Swire Pacific Ltd.
8.500%, 09/29/04(d) 1,042.9
-----------
CONGLOMERATES & HOLDING
COMPANIES 2,002.0
ENERGY (3.3%)
3,500,000 Valero Energy
6.750%, 12/15/02 3,531.3
FINANCIAL (9.4%)
3,000,000 Advanta National Bank
6.820%, 04/09/01 3,022.5
1,000,000 China International Trust
Corp.
9.000%, 10/15/06 1,053.0
3,000,000 Ford Motor Credit Global
6.500%, 02/28/02 3,033.8
2,000,000 Salomon Inc.
7.125%, 08/01/99(a) 2,030.0
1,000,000 Wharf International Finance
Note
7.625%, 03/13/07(d) 899.1
-----------
FINANCIAL 10,038.4
MULTIMEDIA (1.8%)
2,000,000 Time Warner Inc.
4.900%, 07/29/99(d) 1,970.0
TELECOMMUNICATIONS (9.4%)
3,500,000 AT&T Capital Corp.
6.570%, 01/21/00(a) 3,513.1
3,000,000 US West Capital Funding Note
6.850%, 01/15/02 3,048.8
3,500,000 TCI Communication
6.381%, 03/12/01(a) 3,505.5
-----------
TELECOMMUNICATIONS 10,067.4
CORPORATE BONDS 27,609.1
U.S. TREASURY NOTES (29.5%)
12,000,000 U.S. Treasury Note
5.375%, 01/31/00 11,960.2
7,500,000 U.S. Treasury Note
5.500%, 03/31/00 7,490.1
10,000,000 U.S. Treasury Note
5.750%, 11/15/00 10,032.3
2,000,000 U.S. Treasury Note
5.750%, 10/31/02 2,006.2
-----------
U.S. TREASURY NOTES 31,488.8
</TABLE>
SEMI-ANNUAL REPORT 47
<PAGE> 49
SHORT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
INVESTMENT COMPANIES (0.8%)
874,036 Dreyfus Treasury Cash
Management Fund $ 874.0
-----------
TOTAL (COST - $115,764.1)(b) (108.5%)
$115,734.2
===========
</TABLE>
Percentages indicated are based on net assets of
$106,715,753.
(a) All or portion of the security is held by the custodian in a segregated
account as collateral.
(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 $ 140,525
Unrealized depreciation (170,338)
----------
Net unrealized depreciation $ (29,813)
==========
</TABLE>
(c) Security was purchased on a delayed delivery basis.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See notes to financial statements.
48 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 50
U.S. GOVERNMENT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS
(37.7%)
2,300,000 FNMA 1997-35 PC
6.750%, 05/18/18 $ 2,326.0
3,539,000 FNMA 93-103 PG
6.250%, 06/25/19(a) 3,538.1
4,645,939 FNMA F
6.138%, 12/17/19 4,670.1
4,016,809 FNMA 97-67 FC
5.988%, 12/18/19(a) 4,010.0
4,248,319 Countrywide Funding 93-7 A1
5.400%, 11/25/23 4,212.4
5,027,976 FHLMC 20 12F
6.088%, 04/15/26(a) 5,039.1
2,987,237 NASC 98-6 A1A
6.280%, 03/15/30 3,005.9
----------
COLLATERALIZED MORTGAGE
OBLIGATIONS 26,801.6
SUPRANATIONAL (8.3%)
6,000,000 Intl. Bank Recon & Dev.
5.625%, 03/17/03 5,940.0
MORTGAGE BACKED SECURITIES (22.4%)
3,000,000 FNMA TBA
6.000%, 05/01/13 2,951.3
10,000,000 FNMA TBA
6.500%, 05/01/13(c) 10,034.3
3,000,000 FHLMC TBA
6.500%, 05/01/13(c) 3,018.8
----------
MORTGAGE BACKED SECURITIES 16,004.4
U.S. GOVERNMENT AGENCIES (18.1%)
5,000,000 FHLB Note
5.720%, 04/14/00 4,998.0
5,000,000 FNMA
5.250%, 01/15/03 4,879.6
3,000,000 FNMA
5.750%, 04/15/03 2,985.8
----------
U.S. GOVERNMENT AGENCIES 12,863.4
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ---------- ----------------------------- -----------
<C> <S> <C>
U.S. TREASURY NOTES (31.1%)
10,500,000 U.S. Treasury Notes
6.250%, 03/31/99(a) $10,570.5
6,000,000 U.S. Treasury Notes
5.625%, 11/30/99 6,005.4
5,500,000 U.S. Treasury Notes
6.250%, 06/30/02 5,616.3
----------
U.S. TREASURY NOTES 22,192.2
U.S. TREASURY STRIPS (2.2%)
1,200,000 U.S. Treasury Strips
0.000%, 08/15/99 1,117.9
550,000 U.S. Treasury Strips
0.000%, 08/15/01 458.2
----------
U.S. TREASURY STRIPS 1,576.1
INVESTMENT COMPANIES (2.00%)
1,391,203 Dreyfus Treasury Cash
Management Fund 1,391.2
----------
TOTAL (COST - $86,965.2)(b) (121.8%) $86,768.9
==========
</TABLE>
Percentages indicated are based on net assets of
$71,220,385.
(a) All or portion of the security is held by the custodian in a segregated
account as collateral.
(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 $ 15,733
Unrealized depreciation (211,986)
---------
Net unrealized depreciation $(196,253)
=========
</TABLE>
(c) Security was purchased on a delayed delivery basis.
See notes to financial statements.
SEMI-ANNUAL REPORT 49
<PAGE> 51
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
ASSET BACKED SECURITIES (21.0%)
5,100,000 Chase Manhattan Auto
6.500%, 10/15/01 $ 5,175.5
1,600,000 Navistar Financial Corp.
6.750%, 03/15/02 1,617.0
4,000,000 SBC Glacier Finance Limited
5.879%, 09/10/02(a)(d) 3,997.5
3,500,000 First Bank Corp. Card Master
Tr.
6.400%, 02/15/03 3,570.3
5,100,000 Case Equipment Trust
6.450%, 03/15/04 5,150.3
1,800,000 Green Tree Financial Corp.
6.930%, 07/15/28 1,831.5
-----------
ASSET BACKED SECURITIES 21,342.1
COLLATERALIZED MORTGAGE OBLIGATIONS
(5.3%)
2,733,284 FNMA, Series 1997-47
7.500%, 11/25/26 2,272.0
2,765,249 Residential Funding Corp.
47-512A1
7.000%, 08/25/27(a) 2,769.6
449,825 Merit Securities Corp. 8-1A
5.650%, 09/28/30 449.7
-----------
COLLATERALIZED MORTGAGE
OBLIGATIONS 5,491.3
MORTGAGE BACKED SECURITIES (10.4%)
1,000,000 FNMA TBA
7.000%, 05/01/13(c) 1,016.6
552,125 FNMA #303962
8.500%, 10/01/19 581.6
1,627,157 GNMA #410049
8.000%, 07/15/25 1,688.7
1,115,601 GNMA #399001
8.000%, 12/15/26 1,157.8
6,000,000 FNMA TBA
7.000%, 05/01/28(c) 6,056.2
-----------
MORTGAGE BACKED SECURITIES 10,500.9
CORPORATE BONDS (62.7%)
CONSUMER GOODS (1.0%)
1,000,000 Disney Global Bond
6.380%, 03/30/01 1,012.5
DIVERSIFIED OPERATIONS (1.9%)
2,000,000 Hutchinson Whampoa
6.950%, 08/01/07(d) 1,918.2
ELECTRIC UTILITIES (8.8%)
4,550,000 Commonwealth Edison Note
7.625%, 04/15/13(a) 4,854.3
4,000,000 Valero Energy
6.750%, 12/15/02(a) 4,035.8
-----------
ELECTRIC UTILITIES 8,890.1
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
FINANCE (24.7%)
4,000,000 Ahmanson Finance Note
5.880%, 02/27/01 $ 3,970.0
1,000,000 Ahmanson Finance Note
8.250%, 10/01/02 1,068.8
1,000,000 China International Trust
Corp.
9.000%, 10/15/06(a) 1,053.0
850,000 Citicorp
6.650%, 05/15/00 861.7
3,500,000 General Motors Acceptance
Corp.
5.750%, 01/05/00 3,482.5
3,000,000 Grand Metropolitan Investment
8.630%, 08/15/01(a) 3,221.2
5,000,000 JP Morgan
6.375%, 08/25/98 4,995.0
3,500,000 Paccar Financial Corp.
6.860%, 02/15/00 3,548.1
850,000 Transamerica Financial Corp.
7.400%, 07/29/99 862.4
2,250,000 Wharf Internatl Finance Note
7.625%, 03/13/07(d) 2,023.0
-----------
FINANCE 25,085.7
INDUSTRIAL GOODS AND SERVICES (12.1%)
4,500,000 Apache Corporate Note
6.500%, 12/15/07(a) 4,452.2
4,925,000 Hanson Overseas, PLC
6.750%, 09/15/05(a) 5,005.0
1,250,000 Honeywell Inc.
6.600%, 04/15/01 1,268.7
1,500,000 Swire Pacific Ltd.
8.500%, 09/29/04(d) 1,564.3
-----------
INDUSTRIAL GOODS AND SERVICES 12,290.2
MULTIMEDIA (3.2%)
3,000,000 News America Holdings
8.625%, 02/01/03(a) 3,277.5
TELECOMMUNICATIONS (10.0%)
2,500,000 AT&T Capital Corp.
5.900%, 07/10/98(a) 2,499.3
4,000,000 TCI Communication
6.381%, 03/12/01(a) 4,006.3
3,500,000 US West Capital Funding Note
6.850%, 01/15/02(a) 3,556.9
-----------
TELECOMMUNICATIONS 10,062.5
TRANSPORTATION (1.0%)
1,000,000 Mass Transit Railway
6.000%, 10/01/00 986.4
-----------
CORPORATE BONDS 63,523.1
</TABLE>
50 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 52
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (5.9%)
1,000,000 FNMA Discount Note
$ 994.2
5,000,000 FNMA Discount Note 4,953.4
-----------
5,947.6
U.S. GOVERNMENT AGENCIES
INVESTMENT COMPANIES (1.2%)
1,191,737 Dreyfus Treasury Cash
Management Fund 1,191.7
-----------
TOTAL (COST - $107,414.9)(b) (106.5%) $107,996.7
===========
</TABLE>
Percentages indicated are based on net assets of
$101,403,137.
(a) All or a portion of the security is held by the custodian in a segregated
account as collateral for open futures contracts.
At April 30, 1998, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER UNREALIZED
OF EXPIRATION CURRENT APPRECIATION/
CONTRACTS CONTRACT TYPE DATE VALUE (DEPRECIATION)
- --------- ------------------- ---------- ----------- --------------
<C> <S> <C> <C> <C>
15 5 Year Treasury
Future Jun-98 1,633,359 $ (1,172)
40 10 Year Treasury
Future Jun-98 4,492,500 (8,750)
2 30 Year Treasury
Future Jun-98 (239,938) $ (3,500)
----------
$(13,422)
==========
</TABLE>
At April 30, 1998, the Fund's open options contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS EXPIRATION EXERCISE APPRECIATION/
WRITTEN CONTRACT TYPE DATE PRICE (DEPRECIATION)
- --------- ----------------------- ---------- -------- --------------
<C> <S> <C> <C> <C>
100 Call Option on 30 Year
U.S. Treasury Future Sep-98 $120 $(42,688)
100 Put Option on 30 Year
U.S. Treasury Future Sep-98 $120 76,063
----------
$ 33,375
==========
</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 $ 788,542
Unrealized depreciation (206,743)
---------
Net unrealized appreciation $ 581,799
=========
</TABLE>
(c) Security was purchased on a delayed delivery basis.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See notes to financial statements.
SEMI-ANNUAL REPORT 51
<PAGE> 53
INVESTMENT QUALITY BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
ASSET BACKED SECURITIES (18.5%)
5,000,000 Ford Credit
6.100%, 03/15/00(a) $ 5,014.0
750,000 Premier Auto Trust
6.580%, 10/06/00 757.5
4,000,000 SBC Glacier Finance Limited
5.879%, 09/10/02(a)(d) 3,997.5
5,047,383 USAA Auto Loan
6.000%, 05/15/04(a) 5,053.6
4,220,000 MBNA Master Credit Card Trust
6.600%, 11/15/04(a) 4,323.2
4,093,863 IMC Home Equity Loan Tr.
1997-6A
5.847%, 01/20/28(a) 4,089.8
1,500,000 Green Tree Financial Corp.
6.930%, 07/15/28(a) 1,526.3
-----------
ASSET BACKED SECURITIES 24,761.9
COLLATERALIZED MORTGAGE OBLIGATIONS
(5.1%)
1,894,309 FNMA 92-62 F
6.100%, 05/25/99(a) 1,903.0
1,269,552 FNMA 91-84
5.870%, 02/25/06(a) 1,271.6
1,078,999 General Electric Capital Mtg
Ser.
8.300%, 07/25/23 1,096.5
2,277,736 FNMA, Series 1997-47
7.500%, 11/25/26(a) 1,893.4
817,863 Merit Securities Corp.
5.650%, 09/28/30(a) 817.6
-----------
COLLATERALIZED MORTGAGE
OBLIGATIONS 6,982.1
COLLATERALIZED BOND OBLIGATIONS (6.9%)
5,000,000 FC CBO A5-15
8.430%, 06/03/09(a)(d) 5,289.1
4,000,000 Century Funding Limited
7.125%, 02/15/11(d) 3,996.0
-----------
COLLATERALIZED BOND
OBLIGATIONS 9,285.1
MORTGAGE BACKED SECURITIES (25.1%)
3,024,015 FHLMC Gold Pool #E67534
7.000%, 09/01/12(a) 3,082.6
5,800,000 FNMA TBA
6.500%, 05/01/13(c) 5,819.9
2,700,000 FNMA TBA
7.000%, 05/01/13(c) 2,744.7
1,661,221 FHLMC #G00472
8.500%, 06/01/17 1,748.4
2,671,549 GNMA #412603
7.500%, 05/15/26 2,745.0
6,000,000 FNMA TBA
6.500%, 05/01/28(c) 5,928.7
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
7,500,000 FNMA TBA
7.000%, 05/01/28(c) $ 7,570.3
4,000,000 FNMA TBA
7.500%, 05/01/28(c) 4,097.5
-----------
MORTGAGE BACKED SECURITIES 33,737.1
COMMERCIAL PAPER (13.8%)
6,000,000 American Express Capital Corp.
5.470%, 06/09/98 6,000.0
6,500,000 Abbey National Comm. Paper 6,438.5
6,000,000 GE Capital Commercial Paper 6,000.0
-----------
COMMERCIAL PAPER 18,438.5
CORPORATE BONDS (47.4%)
CONSUMER GOODS (0.8%)
1,000,000 Disney Global Bond
6.380%, 03/30/01(a) 1,012.5
DIVERSIFIED OPERATIONS (1.4%)
2,000,000 Hutchinson Whampoa
6.950%, 08/01/07(d) 1,918.2
ELECTRIC UTILITIES (3.8%)
500,000 Union Electric
6.880%, 08/01/04 516.9
4,000,000 Valero Energy
6.750%, 12/15/02(a) 4,035.8
500,000 Virginia Electric Power
Company
7.380%, 07/01/02 520.0
-----------
ELECTRIC UTILITIES 5,072.7
FINANCE (11.4%)
1,000,000 China International Trust
Corp.
9.000%, 10/15/06 1,053.0
200,000 Citicorp
6.650%, 05/15/00 202.8
1,500,000 Grand Metropolitan Investment
8.630%, 08/15/01(a) 1,610.6
6,000,000 JP Morgan
6.375%, 08/25/98(d) 5,994.0
1,500,000 Salomon Inc.
7.250%, 05/01/01(a) 1,543.1
2,500,000 Salomon Corp.
5.879%, 07/23/01(a) 2,500.0
190,000 Transamerica Financial Corp.
7.400%, 07/29/99 192.8
2,250,000 Wharf International Finance
Note
7.625%, 03/13/07(a)(d) 2,023.0
-----------
FINANCE 15,119.3
</TABLE>
52 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 54
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
INDUSTRIAL GOODS AND SERVICES (4.6%)
500,000 Hanson Overseas, PLC
6.750%, 09/15/05 $ 508.1
4,000,000 Raytheon Company
6.750%, 08/15/07(a) 4,075.0
1,500,000 Swire Pacific Ltd.
8.500%, 09/29/04(d) 1,564.3
-----------
INDUSTRIAL GOODS AND SERVICES 6,147.4
MULTIMEDIA (3.2%)
4,000,000 Time Warner Inc.
7.750%, 06/15/05(a) 4,245.0
REAL ESTATE (5.9%)
5,000,000 Health and Retirement
6.750%, 12/18/02(a) 4,987.5
3,000,000 Mirage Resorts
6.750%, 08/01/07(a) 3,000.0
-----------
REAL ESTATE 7,987.5
TELECOMMUNICATIONS (3.8%)
2,500,000 TCI Communication
6.381%, 03/12/01(a) 2,503.9
2,500,000 US West Capital Funding Note
6.850%, 01/15/02(a) 2,540.6
-----------
TELECOMMUNICATIONS 5,044.5
TRANSPORTATION (12.5%)
4,100,000 AMR Corporate Note
9.820%, 10/25/11(a) 5,135.3
4,500,000 CSX Corp.
8.100%, 09/15/22(a) 5,149.6
6,000,000 Norfolk Southern
7.700%, 05/15/17(a) 6,585.0
-----------
TRANSPORTATION 16,869.9
-----------
CORPORATE BONDS 63,417.0
U.S. GOVERNMENT AGENCIES (0.7%)
1,000,000 FNMA Discount Note
990.7
U.S. TREASURY BONDS (0.5%)
700,000 U.S. Treasury Bonds
6.250%, 08/15/23 719.8
-----------
UNITED STATES 1,710.5
INVESTMENT COMPANIES (0.6%)
765,747 Dreyfus Treasury Cash
Management Fund 765.7
-----------
TOTAL (COST - $158,401.4)(b) (118.6%) $159,097.9
===========
</TABLE>
Percentages indicated are based on net assets of
$134,175,385.
(a) All or a portion of the security is held by the custodian in a segregated
account as collateral.
At April 30, 1998, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER UNREALIZED
OF EXPIRATION CURRENT APPRECIATION/
CONTRACTS CONTRACT TYPE DATE VALUE (DEPRECIATION)
- --------- ------------------ ---------- ----------- --------------
<C> <S> <C> <C> <C>
55 5 Year Treasury
Future Jun-98 (5,988,984) $ 5,047
62 10 Year Treasury
Future Jun-98 (6,963,375) (3,750)
143 30 Year Treasury
Future Jun-98 16,710,906 24,116
----------
$25,413
==========
</TABLE>
At April 30, 1998, the Fund's open options contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS EXPIRATION EXERCISE APPRECIATION/
WRITTEN CONTRACT TYPE DATE PRICE (DEPRECIATION)
- --------- ---------------------- ---------- -------- --------------
<C> <S> <C> <C> <C>
100 Call Option on 30 Year
U.S. Treasury Future Sep-98 $120 $(42,688)
100 Put Option on 30 Year
U.S. Treasury Future Sep-98 $120 76,063
----------
$ 33,375
==========
</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 $ 977,619
Unrealized depreciation (281,170)
---------
Net unrealized appreciation $ 696,449
=========
</TABLE>
(c) Security was purchased on a delayed delivery basis.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See notes to financial statements.
SEMI-ANNUAL REPORT 53
<PAGE> 55
TOTAL RETURN FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ----------- ---------------------------- -----------
<C> <S> <C>
ASSET BACKED SECURITIES (16.1%)
3,000,000 Salomon Corp.
5.879%, 07/23/01(a) $ 3,000.0
4,750,000 Triangle Funding
7.844%, 10/15/05(a)(d) 4,747.0
3,000,000 Evergreen Funding
7.030%, 11/15/10(a) 2,988.0
400,000 Green Tree Financial Corp.
6.930%, 07/15/28(a) 407.0
----------
ASSET BACKED SECURITIES 11,142.0
COLLATERALIZED MORTGAGE OBLIGATIONS
(10.2%)
1,319,638 Residential Funding Mkt.
Section I
7.500%, 11/25/25(a) 1,319.0
1,822,189 FNMA, Series 1997 - 47
7.500%, 11/25/26(a) 1,514.7
4,266,872 FNMA, Series 1997 - 32
6.288%, 04/25/27(a) 4,282.8
----------
COLLATERALIZED MORTGAGE
OBLIGATIONS 7,116.5
COLLATERALIZED BOND OBLIGATIONS (10.1%)
1,000,000 Ares Bond
7.520%, 11/30/04(a)(d) 1,000.6
750,000 Ares Bond
9.770%, 11/30/04(a)(d) 750.5
5,000,000 FC CBO
8.430%, 06/03/09(a)(d) 5,289.1
----------
COLLATERALIZED BOND
OBLIGATIONS 7,040.2
MORTGAGE BACKED SECURITIES (33.0%)
2,800,000 FNMA TBA
6.500%, 05/01/13(c) 2,809.6
5,200,000 FNMA TBA
7.000%, 05/01/13(c) 5,286.1
722,327 FHLMC Converted, #A01499
8.500%, 04/01/19(a) 762.5
985,891 FHLMC Gold, #G00226
8.500%, 03/01/23(a) 1,038.9
2,702,846 FHLMC Gold, #C00542
7.500%, 08/01/27(a) 2,771.3
4,900,000 FNMA TBA
6.500%, 05/01/28(c) 4,841.8
5,500,000 FNMA TBA
7.000%, 05/01/28(c) 5,551.5
----------
MORTGAGE BACKED SECURITIES 23,061.7
COMMERCIAL PAPER (10.7%)
1,500,000 American Express Comm. Paper 1,500.0
6,000,000 GE Capital Comm. Paper 6,000.0
----------
COMMERCIAL PAPER 7,500.0
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ----------- ---------------------------- -----------
<C> <S> <C>
CONVERTIBLE BONDS (6.5%)
100,000 Staples Inc.
4.500%, 10/01/00 $ 168.8
100,000 EMC Corporation
3.250%, 03/15/02 211.3
1,500,000 Adaptec Inc.
4.750%, 02/01/04(a) 1,282.5
1,250,000 Mark IV Industrial
7.500%, 09/01/07(a)(d) 1,256.3
1,500,000 Hewlett Packard
0.000%, 10/14/17(a) 830.6
1,500,000 Hewlett Packard
0.000%, 10/14/17(a) 830.6
----------
CONVERTIBLE BONDS 4,580.1
PREFERRED STOCK (1.4%)
1,000,000 IBJ International Preferred
8.790%, 12/29/49(a) 947.5
CORPORATE BONDS (26.4%)
DIVERSIFIED OPERATIONS (2.7%)
2,000,000.. Hutchinson Whampoa
6.950%, 08/01/07(a)(d) 1,918.2
ENERGY (1.9%)
1,250,000 CAL Energy Company
9.500%, 09/15/06(a) 1,353.1
FINANCE (11.2%)
1,000,000 China International Trust
Corp.
9.000%, 10/15/06(a) 1,053.0
950,000 Contifinancial Corp.
9.250%, 08/15/03(a) 983.3
225,000 First Nationwide
9.130%, 12/01/03 238.2
3,500,000 JP Morgan Corp.
6.375%, 08/25/98(d) 3,496.5
225,000 Salomon Corp.
6.250%, 11/30/00 227.5
2,000,000 Wharf International Finance
7.625%, 03/13/07(a)(d) 1,798.3
----------
FINANCE 7,796.8
METALS & STEELS (1.1%)
750,000 AK Steel Corp.
9.125%, 12/15/06(a) 791.3
MULTIMEDIA (1.4%)
1,000,000 Time Warner Pass-Thru
6.100%, 12/30/01(a)(d) 991.3
</TABLE>
54 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 56
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- ----------- ---------------------------- -----------
<C> <S> <C>
TECHNOLOGY (8.1%)
750,000 Rogers Cablesystem
10.000%, 12/01/07(a) $ 830.6
1,500,000 Silicon Graphics
5.250%, 09/01/04(a) 1,321.9
3,500,000 TCI Communication
6.381%, 03/12/01(a) 3,505.5
----------
TECHNOLOGY 5,658.0
----------
CORPORATE BONDS 18,508.7
FOREIGN BONDS (3.0%)
650,000,000 Greek Government Bond
8.233%, 03/21/04 2,104.3
U.S. GOVERNMENT AGENCIES (6.1%)
1,300,000 FHLMC Discount Note 1,287.2
3,000,000 FHLMC Discount Note(a) 2,984.7
----------
4,271.9
U.S. GOVERNMENT AGENCIES
INVESTMENT COMPANIES (2.8%)
1,952,493 Dreyfus Treasury Cash
Management Fund 1,952.3
----------
TOTAL (COST - $87,732.2)(b) (126.3%) $88,225.2
==========
</TABLE>
Percentages indicated are based on net assets of
$69,872,507.
(a) All or a portion of the security is held by the custodian in a segregated
account.
At April 30, 1998, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER UNREALIZED
OF EXPIRATION CURRENT APPRECIATION/
CONTRACTS CONTRACT TYPE DATE VALUE (DEPRECIATION)
- --------- ------------------ ---------- ------------ --------------
<C> <S> <C> <C> <C>
110 5 Year Treasury
Future Jun-98 (11,977,969) $ 10,344
142 10 Year Treasury
Future Jun-98 (15,948,375) (11,813)
12 30 Year Treasury
Future Jun-98 962,251 (1,703)
----------
$ (3,172)
==========
</TABLE>
At April 30, 1998, the Fund's open swap contracts were as follows:
<TABLE>
<CAPTION>
EXPIRATION UNREALIZED
SETTLE DATE CONTRACT TYPE DATE APPRECIATION
- ----------- -------------------- ---------- ------------
<C> <S> <C> <C>
11/01/98 Lehman Brothers Swap Nov-98 $285,088
05/01/98 Lehman Brothers Swap May-98 285,088
----------
$570,176
==========
</TABLE>
The notional value for each swap contract is $25 million. The Fund pays at a
rate equal to LIBOR (London Interbank Offered Rate) minus 0.15%. The Fund
receives at a rate equal to the Lehman Government/Corporate Index.
At April 30, 1998, the Fund's open options contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS EXPIRATION EXERCISE APPRECIATION/
WRITTEN CONTRACT TYPE DATE PRICE (DEPRECIATION)
- --------- ------------------ ---------- -------- --------------
<C> <S> <C> <C> <C>
100 Call Option on 30
Year U.S.
Treasury Future Sep-98 $120 $(42,688)
100 Put Option on 30
Year U.S.
Treasury Future Sep-98 $120 76,063
----------
$ 33,375
==========
</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 $ 689,901
Unrealized depreciation (196,844)
---------
Net unrealized appreciation $ 493,057
=========
</TABLE>
(c) Security was purchased on a delayed delivery basis.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See notes to financial statements.
SEMI-ANNUAL REPORT 55
<PAGE> 57
SHORT DURATION TAX EXEMPT FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATIONS (42.5%)
LIMITED (4.8%)
1,000,000 Massachusetts State (FGIC)
5.000%, 08/01/04 $ 1,031.2
UNLIMITED (28.2%)
1,000,000 Dade County, FL Municipal
(FGIC)
12.000%, 10/01/01 1,243.8
2,000,000 District of Columbia (MBIA)
6.600%, 06/01/03(a) 2,122.5
1,000,000 Lewisville, TX Indt. School
Dist. (PSF)
6.250%, 08/15/02 1,070.0
700,000 Minnesota State
6.800%, 08/01/00 705.0
1,000,000 New York City
4.750%, 08/01/98 1,001.8
----------
UNLIMITED 6,143.1
STUDENT LOANS (9.5%)
1,000,000 N. England Educ. Loan Mkt.
Corp.
5.000%, 07/01/99 1,010.0
1,000,000 S. Carolina Education Assist.
6.500%, 09/01/02 1,065.0
----------
STUDENT LOANS 2,075.0
GENERAL OBLIGATIONS 9,249.3
REVENUE (52.8%)
AIRPORT (4.6%)
1,000,000 Denver, CO City/Co. Airport
(MBIA)
4.800%, 11/15/00 1,011.3
ELECTRIC (4.7%)
1,000,000 M.E.A.G.
6.500%, 08/01/99 1,031.2
HEALTH (12.2%)
1,000,000 CA Health Facilities Authority
5.100%, 05/15/02 1,020.0
1,000,000 MO Health & Educ. Facilities
4.250%, 12/01/99 1,006.2
615,000 Philadelphia, PA Hospitals &
Higher Educ. Fac. Authority
5.000%, 11/15/00 622.7
----------
HEALTH 2,648.9
HOUSING (16.1%)
450,000 AK Housing Finance Corp.
(MBIA)
4.350%, 12/01/98 451.0
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
1,000,000 N.Y. State Dormitory
6.000%, 02/15/03 $ 1,056.3
2,000,000 OH Housing Financial Agency
4.200%, 09/01/30 2,000.8
----------
HOUSING 3,508.1
TRANSPORTATION (4.7%)
1,000,000 DE Transportation Authority
5.800%, 07/01/99 1,021.3
WATER & SEWER (10.5%)
755,000 OH State Water Dev. Authority
(MBIA)
4.950%, 12/01/98 759.8
1,000,000 Orlando, FL Utilities
Commission
5.700%, 10/01/04 1,067.5
435,000 Oregon Portland Sewer
6.500%, 06/01/00 456.2
----------
WATER & SEWER 2,283.5
----------
REVENUE 11,504.3
INVESTMENT COMPANIES (3.2%)
694,575 Dreyfus Tax Exempt Cash
Management Fund 694.6
----------
TOTAL (COST - 21,334.4)(b) (98.5%) $21,448.2
==========
</TABLE>
FGIC: Financial Guaranty Insurance Company
MBIA: MBIA Insurance Corp.
PSF: Permanent School Fund
Percentages indicated are based on net assets of
$21,783,510.
(a) All or a portion of the security is held by the custodian in a segregated
account as collateral.
(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 $123,221
Unrealized depreciation (9,349)
--------
Net unrealized appreciation $113,872
========
</TABLE>
See notes to financial statements.
56 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 58
TAX EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
GENERAL OBLIGATIONS (31.6%)
LIMITED (4.3%)
700,000 Clark Co. NV School District
(MBIA)
5.880%, 06/15/13 $ 738.5
1,000,000 Kingsport TN Public
Improvement
5.600%, 09/01/03 1,053.7
1,000,000 Port Seattle, WA
5.250%, 05/01/03 1,035.0
----------
LIMITED 2,827.2
UNLIMITED (27.3%)
1,500,000 Charleston Co., S. Carolina
5.750%, 06/01/08 1,616.2
1,200,000 Chicago, IL, Metro. Water
Reclamation District
6.300%, 12/01/09 1,329.0
1,760,000 Dade County FL (AMBAC)
7.700%, 10/01/08 2,197.8
1,000,000 Fort Worth, TX, Independent
School District (PSF)
0.000%, 02/15/06 697.5
1,000,000 Honolulu, HI, City & County
5.000%, 10/01/02 1,023.8
2,000,000 Maryland State
5.000%, 08/01/07(a) 2,062.5
2,000,000 Mass. State
5.000%, 08/01/07 2,057.5
1,000,000 Mississippi State
5.800%, 06/01/09 1,052.5
1,000,000 New York, New York
4.750%, 08/01/98 1,001.8
1,000,000 Pennsylvania State (MBIA)
5.200%, 06/15/04 1,041.2
1,000,000 Texas Public Finance Authority
5.380%, 10/01/03 1,047.5
1,000,000 Texas State
5.000%, 08/01/21 953.8
1,000,000 Virginia State
6.100%, 06/01/06 1,087.5
1,000,000 Washington State
5.250%, 09/01/05 1,037.5
----------
UNLIMITED 18,206.1
----------
GENERAL OBLIGATIONS 21,033.3
REVENUE (57.1%)
AIRPORT (4.6%)
700,000 Dade County FL Aviation (FSA)
5.750%, 10/01/05 747.2
1,200,000 L.A., CA, City Dept. of
Airports (FGIC)
5.500%, 05/15/07 1,260.0
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
1,010,000 S. Francisco CA City & County
International Airport (FGIC)
5.000%, 05/01/06 $ 1,031.5
----------
AIRPORT 3,038.7
EDUCATION (9.6%)
1,000,000 Avon, IN Community School
Building Corp. (AMBAC)
5.250%, 01/01/22 986.2
1,000,000 Mass. Educational Financing
4.550%, 12/01/06 983.8
1,250,000 N.Y. State Dorm Authority
(AMBAC)
6.130%, 07/01/07 1,365.6
2,810,000 University TX Permanent Fund
5.900%, 07/01/02(a) 2,978.6
----------
EDUCATION 6,314.2
ELECTRIC (6.3%)
300,000 City of Knoxville, TN Gas
System
4.850%, 03/01/06 304.1
1,000,000 FL Dept. of
Transportation - Right of Way
6.000%, 07/01/07 1,098.8
2,000,000 GA Muni. Electric Authority
(FGIC)
5.550%, 01/01/07 2,120.0
575,000 IN Municipal Power Agency
(MBIA)
5.130%, 01/01/01 586.5
----------
ELECTRIC 4,109.4
HOUSING (4.2%)
500,000 California Housing Authority
(MBIA)
5.200%, 08/01/26 509.4
1,000,000 ID Housing & Finance Assoc.
5.200%, 07/01/27 1,015.0
1,000,000 Virginia Housing Dev.
Authority
6.300%, 07/01/11 1,052.5
170,000 WI Housing & Economic Dev.
5.300%, 11/01/05 175.3
----------
HOUSING 2,752.2
POLLUTION CONTROL (7.1%)
1,000,000 IL Sales Tax Revenue
7.000%, 06/15/19 1,052.5
1,400,000 MN Public Fac. Pollution
Control
6.000%, 03/01/07 1,555.7
2,000,000 N.Y. Environmental Facilities
Corporation (MBIA)
5.500%, 06/15/09(a) 2,117.5
----------
POLLUTION CONTROL 4,725.7
</TABLE>
SEMI-ANNUAL REPORT 57
<PAGE> 59
TAX EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
TRANSPORTATION (3.9%)
1,000,000 Mass. Bay Transportation
Authority
5.600%, 03/01/08 $ 1,068.8
1,465,000 Port Authority N.Y. & N.J.
5.800%, 12/01/12 1,541.9
----------
TRANSPORTATION 2,610.7
WATER & SEWER (21.4%)
1,000,000 City & County of San
Francisco, California Sewer
6.500%, 10/01/21 1,055.0
2,000,000 Cleveland OH Waterworks
5.500%, 01/01/08 2,115.0
2,000,000 District of Columbia Water &
Sewer Authority
5.500%, 10/01/17 2,070.0
765,000 Du Page County, IL
5.600%, 01/01/21 815.7
1,500,000 N.Y. Metro Transit Authority
5.000%, 07/01/12 1,486.9
2,500,000 New York State
5.250%, 04/01/05 2,596.9
1,000,000 OH State Water Dept. Auth.
(AMBAC)
5.700%, 06/01/09 1,066.2
500,000 Oregon Portland Sewer
6.500%, 06/01/00 524.4
2,500,000 PA Municipal Bond
4.750%, 06/15/99 2,525.0
----------
WATER & SEWER 14,255.1
REVENUE 37,806.0
SPECIAL TAX (8.1%)
900,000 Arapahoe County, CO
Capital Improvement
6.900%, 08/31/15 1,053.0
1,000,000 CN Special Tax Obligation
6.250%, 10/01/09 1,080.0
1,600,000 Washington, D.C. Revenue Bond
6.000%, 04/01/05 1,726.0
1,380,000 Washington, D.C. American
Advancement of Science (AMBAC)
6.000%, 01/01/08 1,507.7
----------
SPECIAL TAX 5,366.7
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
INVESTMENT COMPANIES (0.4%)
247,756 Dreyfus Tax Exempt Cash
Management Fund $ 247.7
----------
TOTAL (COST - $63,043.6)(b) (97.2%) $64,453.7
==========
</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
$66,523,440.
(a) All or a portion of the security is held by the custodian in a segregated
account as collateral.
At April 30, 1998, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
NUMBER UNREALIZED
OF EXPIRATION CURRENT APPRECIATION/
CONTRACTS CONTRACT TYPE DATE VALUE (DEPRECIATION)
- --------- ------------------- ---------- ----------- --------------
<C> <S> <C> <C> <C>
20 30 Year Treasury Jun-98 (2,404,375) $ 313
Future
20 Municipal Bond Jun-98 2,421,250 (9,063)
Future
----------
$(8,750)
==========
</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 $1,589,245
Unrealized depreciation (179,064)
----------
Net unrealized appreciation $1,410,181
==========
</TABLE>
See notes to financial statements.
58 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 60
BUNKER HILL MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
OR SHARES SECURITY DESCRIPTION COST (000)
- --------- ------------------------------ -----------
<C> <S> <C>
COMMERCIAL PAPER (68.2%)
AGRICULTURE (3.1%)
500,000 Canadian Wheat Board
000%, 05/19/98 $ 498.7
AUTOMOBILES (12.9%)
700,000 Ford Motor Credit
5.541%, 05/29/98 700.0
700,000 GMAC
5.561%, 05/29/98 700.0
700,000 Toyota Motor Credit
0.000%, 05/14/98 698.6
----------
AUTOMOBILES 2,098.6
DIVERSIFIED OPERATIONS (4.3%)
700,000 Dupont
0.000%, 05/27/98 697.2
ENERGY (8.5%)
700,000 Chevron Oil Finance
5.519%, 05/12/98 700.0
700,000 Shell Oil
0.000%, 06/01/98 696.7
----------
ENERGY 1,396.7
FINANCE (11.1%)
600,000 Abbey National
0.000%, 07/02/98 594.3
700,000 American Express
5.520%, 06/05/98 700.0
500,000 Deutsche Bank
0.000%, 06/12/98 496.8
----------
FINANCE 1,791.1
FOOD & BEVERAGE (3.1%)
500,000 Coca Cola
0.000%, 06/04/98 497.4
INDUSTRIAL GOODS AND SERVICES (17.2%)
700,000 Caterpillar Financial Service
0.000%, 06/24/98 694.3
700,000 Emerson Electric
0.000%, 06/02/98 696.6
700,000 G.E. Capital Corp.
5.520%, 06/05/98 700.0
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
OR SHARES SECURITY DESCRIPTION COST (000)
- --------- ------------------------------ -----------
<C> <S> <C>
700,000 Paccar Financial
0.000%, 05/19/98 $ 698.1
----------
INDUSTRIAL GOODS AND SERVICES 2,789.0
TECHNOLOGY (8.0%)
700,000 Bell Atlantic
0.000%, 05/19/98 698.1
600,000 Xerox Credit
0.000%, 06/18/98 595.7
----------
TECHNOLOGY 1,293.8
----------
COMMERCIAL PAPER 11,062.5
CERTIFICATES OF DEPOSIT (10.1%)
900,000 1st of America Bank
5.250%, 05/01/98 900.0
450,000 Dresdner Bank
5.510%, 01/15/99 449.9
300,000 Morgan Guaranty Bank
5.710%, 01/08/99 299.9
----------
CERTIFICATES OF DEPOSIT 1,649.8
CORPORATE NOTES (1.8%)
300,000 Associates Corporate Note
5.750%, 11/15/98 300.0
U.S. GOVERNMENT AGENCIES (14.5%)
200,000 FHLMC Discount Note
0.000%, 07/01/98 198.2
1,500,000 FNMA Discount Note
0.000%, 07/02/98 1,486.1
700,000 FHLB Discount Note
0.000%, 12/03/98 677.9
----------
U.S. GOVERNMENT AGENCIES 2,362.2
INVESTMENT COMPANIES (4.4%)
722,723 Dreyfus Treasury Cash
Management Fund 722.7
----------
TOTAL (COST - $16,097.2) (99.0%) $16,097.2
==========
</TABLE>
Percentages indicated are based on net assets of
$16,253,354.
See notes to financial statements.
SEMI-ANNUAL REPORT 59
<PAGE> 61
HIGH INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
ASSET BACKED SECURITIES (2.1%)
250,000 Ford 1998 A Class D
7.500%, 05/15/03(a) $ 245.2
750,000 Triangle Funding
7.844%, 10/15/05(a) 749.5
----------
ASSET BACKED SECURITIES 994.7
COLLATERALIZED BOND OBLIGATIONS (0.5%)
250,000 Ares CBO
9.770%, 11/30/04(a) 250.2
COMMERCIAL PAPER (16.9%)
2,000,000 American Express Capital
5.520%, 05/07/98 2,000.0
2,000,000 Caterpillar Financial Service
5.560%, 05/06/98 1,998.5
2,000,000 GECC
5.510%, 05/07/98 2,000.0
2,000,000 Toyota Motor Credit
5.590%, 05/07/98 1,998.1
----------
COMMERCIAL PAPER 7,996.6
PREFERRED STOCK (4.6%)
500,000 IBJ International
8.790%, 12/29/49 473.7
15,000 Time Warner
10.25%, 07/01/16 1,698.8
----------
PREFERRED STOCK 2,172.5
CORPORATE BONDS (71.6%)
AIRLINES (1.6%)
750,000 Northwest Airlines Corp.
8.375%, 03/15/04 776.2
BUILDING & CONSTRUCTION (11.8%)
750,000 Cathay International
13.000%, 04/15/08(a) 757.5
1,000,000 Cemex
12.750%, 07/15/06(a) 1,207.5
750,000 HMH Properties
9.500%, 05/15/05 810.9
1,000,000 Kaufman & Broad Home
9.625%, 11/06/04 1,061.3
500,000 Traffic Stream
14.250%, 05/01/06(a) 487.5
750,000 US Home Corp.
7.750%, 01/15/05 742.5
625,000 Wharf Intl. Finance Note
7.625%, 03/13/07(a) 562.0
----------
BUILDING & CONSTRUCTION 5,629.2
CABLE SYSTEMS (9.0%)
1,000,000 Adelphia Communications
10.500%, 07/15/04 1,097.5
750,000 Century Communications
8.375%, 12/15/07 757.5
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
250,000 CSC Holdings Inc.
9.250%, 11/01/05 $ 264.7
750,000 Jones Intercable
9.625%, 03/15/02 804.4
750,000 Lenfest Communication
8.375%, 11/01/05 777.2
500,000 Rogers Cablesystem
10.000%, 12/01/07 553.7
----------
CABLE SYSTEMS 4,255.0
CONSUMER GOODS (3.2%)
1,500,000 Revlon
8.625%, 02/01/08 1,500.0
DURABLES (3.2%)
250,000 Hayes Wheels International
11.000%, 07/15/06 284.7
750,000 Mark IV Industrial
7.500%, 09/01/07(a) 753.8
500,000 Navistar International
8.000%, 02/01/08 498.1
----------
DURABLES 1,536.6
ENERGY AND UTILITIES (4.3%)
750,000 CAL Energy Company
9.500%, 09/15/06 811.9
500,000 Calpine Corp.
9.205%, 02/01/04 516.9
250,000 Forcenergy Inc.
8.500%, 02/15/07 243.7
250,000 Gulf Canada Resources Ltd.
9.250%, 01/15/04 261.6
250,000 Vintage Petro
8.625%, 02/01/09 260.0
----------
ENERGY AND UTILITIES 2,094.1
FINANCE (4.4%)
1,000,000 Bay View Capital
9.125%, 08/15/07 1,033.8
750,000 Contifinancial Corp.
9.250%, 08/15/03 776.2
250,000 First Nationwide
9.125%, 12/01/03 264.7
----------
FINANCE 2,074.7
GAMING (2.3%)
500,000 Boyd Gaming Corp.
9.500%, 07/15/07 530.0
250,000 Grand Casinos
9.000%, 10/15/04 262.2
250,000 Hollywood Casino
12.750%, 11/01/03 276.2
----------
GAMING 1,068.4
HEALTH CARE (3.4%)
500,000 Tenet Healthcare Corp.
9.250%, 09/01/02 563.1
</TABLE>
60 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 62
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
1,000,000 Tenet Healthcare
8.625%, 12/01/03 $ 1,057.5
----------
HEALTH CARE 1,620.6
INDUSTRIAL GOODS AND SERVICES (3.2%)
500,000 American Standard
7.375%, 02/01/08 488.7
500,000 CSC Holdings Inc.
7.875%, 12/15/07 512.5
500,000 Owens-Ill Inc.
7.850%, 05/15/04 519.4
----------
INDUSTRIAL GOODS AND SERVICES 1,520.6
METALS (2.8%)
750,000 AK Steel Corp.
9.125%, 12/15/06 791.3
500,000 Ryerson Tull, Inc.
8.500%, 07/15/01 520.0
----------
METALS 1,311.3
MULTIMEDIA (8.9%)
1,000,000 Chancellor Media
8.125%, 12/15/07 1,001.2
750,000 Fox Kids World
9.250%, 11/01/07(a) 742.5
250,000 Globo Communicacoes
10.625%, 12/05/08(a) 253.7
500,000 Jacor Communication Co.
9.750%, 12/15/06(a) 545.0
500,000 Multicanal
10.500%, 02/01/07 527.5
1,000,000 Primedia Inc.
7.625%, 04/01/08 972.5
250,000 Young Broadcasting
9.000%, 01/15/06 256.9
----------
MULTIMEDIA 4,299.3
RETAIL (2.7%)
250,000 Jitney-Jungle Stores
10.375%, 09/15/07 260.0
1,000,000 Stage Stores
8.500%, 07/15/05 1,032.5
----------
RETAIL 1,292.5
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
TELECOMMUNICATIONS (8.7%)
500,000 Clearnet Communications
0.000%, 12/15/05 $ 418.7
1,000,000 GST USA Inc.
0.000%, 12/15/05 815.0
500,000 Level 3 Communication Inc.
9.125%, 05/01/08(a) 493.1
500,000 Nextlink
9.000%, 03/15/08 515.0
750,000 RSL Communications
9.125%, 03/01/08 750.0
250,000 Sprint Spectrum
11.000%, 08/15/06 286.3
750,000 Telefonica Argentina
11.870%, 11/01/04(a) 853.1
----------
TELECOMMUNICATIONS 4,131.2
TECHNOLOGY (2.1%)
1,000,000 Unisys Corp.
7.875%, 04/01/08 1,006.3
----------
CORPORATE BONDS 34,116.0
U.S. TREASURIES (10.4%)
5,000,000 U.S. Treasury Note
5.500%, 03/31/03 4,969.9
INVESTMENT COMPANIES (2.0%)
941,385 Dreyfus Treasury Cash
Management Fund 941.4
----------
TOTAL (COST - $51,366.7)(b) (108.1%) $51,441.3
==========
</TABLE>
Percentages indicated are based on net assets of
$47,565,906.
(a) Non-income producing security.
(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 $ 192,264
Unrealized depreciation (117,696)
----------
Net unrealized appreciation $ 74,568
==========
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 61
<PAGE> 63
VALUE STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ----------------------------- -----------
COMMON STOCKS (98.4%)
<C> <S> <C>
BASIC MATERIALS (16.9%)
84,060 Armco, Inc. $ 577.9
33,290 Bethlehem Steel Corp.(a) 518.1
31,550 Commonwealth Industries, Inc. 536.4
17,450 Crompton & Knowles Corp. 522.4
6,830 FMC Corp.(a) 529.8
30,960 Methanex Corp.(a) 269.0
15,090 National Steel Corp. - Class
B 282.0
12,680 Walter Industries Inc.(a) 261.5
----------
BASIC MATERIALS 3,497.1
CONSUMER CYCLICALS (13.3%)
14,610 Burlington Coat Factory
Warehouse 283.1
7,670 Hasbro, Inc. 282.4
12,020 J Ray McDermott, S.A.(a) 533.4
8,260 Mohawk Industries, Inc.(a) 255.0
46,510 Musicland Stores Corp.(a) 569.7
52,000 Terra Industries Inc. 559.0
11,150 Woolworth Corp.(a) 256.5
----------
CONSUMER CYCLICALS 2,739.1
CONSUMER STAPLES (9.3%)
11,080 Dial Corp. 270.1
17,830 Johns Manville Corp. 290.9
19,890 Keebler Foods Co.(a) 566.9
21,530 Perrigo Company(a) 278.5
25,950 Whitman Corp. 507.6
----------
CONSUMER STAPLES 1,914.0
HEALTH CARE (7.3%)
13,800 Allegiance Corp. 629.6
31,290 Quest Diagnostics, Inc.(a) 602.3
3,830 Wellpoint Health
Network - CLA(a) 276.2
----------
HEALTH CARE 1,508.1
FINANCIALS (26.9%)
8,320 AmerUs Life Holdings, Inc. 266.2
26,980 Capstead Mortgage Corp. 514.3
45,540 Credit Acceptance Corp.(a) 489.6
22,200 Duke Realty Investments 528.6
12,310 Everest Reinsurance Holdings,
Inc. 507.8
13,690 Liberty Financial Companies 548.5
17,010 Mackenzie Financial Corp. 272.2
10,400 NAC Re Corp. 520.0
7,710 Protective Life Corp. 286.2
16,455 Raymond James Financial, Inc. 535.8
5,730 Reinsurance Group of America,
Inc. 284.0
16,210 Simon Debartolo Group, Inc. 533.9
10,810 United Asset Management 286.5
----------
FINANCIALS 5,573.6
</TABLE>
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ----------------------------- -----------
<C> <S> <C>
CAPITAL GOODS (7.7%)
4,950 Lear Corp.(a) $ 265.1
11,860 Reynolds & Reynolds Co. - CLA 272.8
11,970 Smith (A.O.) Corp. 540.1
39,710 Unisource Worldwide, Inc. 503.8
----------
CAPITAL GOODS 1,581.8
TECHNOLOGY (15.8%)
26,840 Adaptec, Inc.(a) 635.8
19,380 Apple Computer, Inc.(a) 530.5
12,490 Creative Technology Ltd.(a) 256.0
85,670 Oak Technology, Inc.(a) 492.6
22,520 Quantum Corp.(a) 529.2
3,420 Storage Tech Corp. - CLA(a) 288.8
20,110 Wang Laboratories, Inc.(a) 543.0
----------
TECHNOLOGY 3,275.9
TRANSPORTATION (1.2%)
3,500 U.S. Airways Group, Inc.(a) 248.9
----------
TRANSPORTATION 248.9
TOTAL COMMON STOCKS (COST - $20,167.8) 20,338.5
INVESTMENT COMPANIES (3.3%)
685,738 Dreyfus Treasury Cash
Management Fund 688.9
----------
TOTAL (COST - $20,856.8)(b) (101.7%) $ 21,027.4
==========
</TABLE>
Percentages indicated are based on net assets of
$20,686,891.
(a) Non-income producing security.
(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 $ 576,323
Unrealized depreciation (405,648)
---------
Net unrealized appreciation $ 170,675
=========
</TABLE>
See notes to financial statements.
62 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 64
GROWTH STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
April 30, 1998
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
COMMON STOCKS (96.1%)
<C> <S> <C>
BASIC MATERIALS (9.8%)
600 Dexter Corp. $ 24.8
1,460 Ecolab, Inc. 46.2
3,140 Lilly Industries, Inc. - Cl A 59.1
630 Medusa Corp. 38.7
760 Sonoco Products Co. 30.5
440 Southdown, Inc. 31.1
1,670 Texas Industries, Inc. 107.6
170 Vulcan Materials Co. 19.6
---------
BASIC MATERIALS 357.6
CONSUMER CYCLICALS (18.5%)
3,240 Aaron Rents, Inc. 65.8
980 Bush Industries - Cl A 26.5
980 Cintas Corp. 46.7
650 Danaher Corp. 46.7
1,600 G & K Services, Inc. - Cl A 64.4
1,590 Hertz Corp. - Cl A 65.2
1,560 Intl Speedway Corp. - Cl A 55.9
790 La Quinta Inns, Inc. 17.4
1,960 Neiman Marcus Group, Inc.(a) 71.9
995 Oneida Ltd. 29.8
2,540 Oakwood Homes 71.6
600 Pulitzer Publishing Co. 51.2
1,420 Terra Industries, Inc. 15.3
610 Toro Co. 23.1
1,025 Wynn's International, Inc. 23.1
---------
CONSUMER CYCLICALS 674.6
CONSUMER STAPLES (6.7%)
670 Bowne & Co., Inc. 27.7
590 CDI Corp.(a) 22.8
2,060 Consolidated Products, Inc.(a) 42.0
1,970 Gaylord Entertainment Co. 67.0
610 Hannaford Brothers Co. 27.1
780 IHOP Corp. 34.3
990 Natures Sunshine Products,
Inc. 24.3
---------
CONSUMER STAPLES 245.2
HEALTH CARE (6.8%)
2,920 Health Management Assoc.,
Inc. - A(a) 92.0
2,115 ICN Pharmaceuticals, Inc. 104.2
750 Life Technologies, Inc. 26.2
1,480 Techne Corp.(a) 26.1
---------
HEALTH CARE 248.5
ENERGY (1.3%)
1,420 Benton Oil & Gas Co.(a) 17.3
1,430 Vintage Petroleum, Inc. 27.9
---------
ENERGY 45.2
</TABLE>
<TABLE>
<CAPTION>
SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
FINANCIALS (13.6%)
1,090 Acceptance Insurance Cos,
Inc.(a) $ 24.9
900 BRE Properties - Cl A 23.6
910 Capstead Mortgage Corp. 17.3
880 Horace Mann Educators 30.2
610 Jefferies Group, Inc. 30.2
1,040 Morgan Keegan, Inc. 23.9
870 Mutual Risk Management Ltd. 29.5
1,180 NAC Re Corp. 59.0
1,830 Nationwide Health Properties,
Inc. 43.0
570 Orion Capital Corp. 31.8
1,260 Raymond James Financial, Inc. 41.0
770 Transatlantic Holdings, Inc. 59.1
1,810 United Cos Financial Corp. 37.0
1,060 Weingarten Realty Investment 45.2
---------
FINANCIALS 495.7
CAPITAL GOODS (21.5%)
1,120 Albany Intl Corp. - Cl A 31.9
1,930 Altron, Inc.(a) 28.0
1,160 Baldor Electric 30.4
790 Butler Manufacturing Co. 29.5
1,720 Castle (A.M.) & Co. 40.8
820 CTS Corp. 30.3
1,760 Donaldson Co., Inc. 44.7
1,180 Federal Signal Corp. 25.3
620 General Signal Corp. 27.3
610 Harsco Corp. 28.1
1,460 Hon Industries 46.7
720 IDEX Corp. 26.3
1,770 JLG Industries, Inc. 28.9
1,420 Kuhlman Corp. 69.6
1,170 Lear Corp.(a) 62.7
1,340 Lydall, Inc.(a) 24.9
1,730 Paxar Corp.(a) 25.6
870 Regal Beloit 26.7
430 Sealed Air Corp.(a) 27.0
2,370 Spartech Corp. 50.2
520 Timken Co. 20.8
3,450 Thermedics, Inc.(a) 55.4
---------
CAPITAL GOODS 781.1
TECHNOLOGY (3.6%)
1,520 BMC Industries, Inc. 27.7
1,340 Coherent, Inc.(a) 31.8
580 Harris Corp. 28.1
1,320 Helix Technology Corp. 26.4
2,440 Symmetricom, Inc.(a) 18.0
---------
TECHNOLOGY 132.0
COMMUNICATION SERVICES (2.6%)
2,220 Century Telephone Enterprise 94.5
---------
COMMUNICATION SERVICES 94.5
</TABLE>
SEMI-ANNUAL REPORT 63
<PAGE> 65
GROWTH STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS (CONTINUED)
April 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
OR SHARES SECURITY DESCRIPTION VALUE (000)
- --------- ------------------------------ -----------
<C> <S> <C>
UTILITIES (6.6%)
620 California Water Service Co. $ 16.6
830 Indiana Energy, Inc. 26.1
580 MDU Resources Group, Inc. 20.1
750 Piedmont Natural Gas Co. 25.5
1,500 Public Service Co. of N.
Carolina 30.8
2,150 Teco Energy, Inc. 57.2
1,380 Washington Gas Light Co. 37.5
550 WICOR, Inc. 26.4
---------
UTILITIES 240.2
TRANSPORTATION (5.1%)
1,580 Heartland Express, Inc.(a) 39.3
3,250 Kansas City Southern
Industries 146.9
---------
TRANSPORTATION 186.2
TOTAL COMMON STOCKS (COST - $3,204.7) 3,500.8
INVESTMENT COMPANIES (3.8%)
140,072 Dreyfus Treasury Cash
Management Fund 140.1
---------
TOTAL (COST - $3,344.8)(b) (99.9%) $3,640.9
=========
</TABLE>
Percentages indicated are based on net assets of
$3,642,811.
(a) Non-income producing security.
(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 $368,066
Unrealized depreciation (71,968)
--------
Net unrealized appreciation $296,098
=======
</TABLE>
See notes to financial statements.
64 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 66
NOTES TO FINANCIAL STATEMENTS
April 30, 1998
1. ORGANIZATION
Each of the Payden & Rygel Global Short Bond Fund, Payden & Rygel Global
Fixed Income Fund, Payden & Rygel Short Duration Tax Exempt Fund, Payden
& Rygel Tax Exempt Bond Fund, Payden & Rygel U.S. Government Fund
(formerly the 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,
Payden & Rygel Market Return Fund, Payden & Rygel Total Return Fund,
Payden & Rygel Global Balanced Fund, Payden & Rygel International Equity
Fund, Payden & Rygel European Growth & Income Fund, Payden & Rygel
Growth & Income Fund, Payden & Rygel Bunker Hill Money Market Fund,
Payden & Rygel High Income Fund, Payden & Rygel Value Stock Fund and
Payden & Rygel Growth Stock Fund, (the "Funds"), is a series of The
Payden & Rygel Investment Group (the "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 (the "1940 Act"), as amended. Each of the Funds, other than
the International Equity and High Income Funds, has been classified as
non-diversified. As provided in the 1940 Act, a diversified fund has,
with respect to at least 75% of its total assets, no more than 5% of its
total assets invested in the securities of one issuer, plus cash,
Government securities, and securities of other investment companies.
The objective of the Global Short Bond, Global Fixed Income, U.S.
Government, 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. Government Fund
primarily invests in debt obligations of the U.S. Treasury, U.S.
government agencies and mortgage-backed securities.
The Global Short Bond and Global Fixed Income 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,
Global Balanced 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
SEMI-ANNUAL REPORT 65
<PAGE> 67
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1998
total return in excess of the Standard & Poor's 500 Stock Index ("S&P
500 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.
The objective of the Global Balanced Fund is to realize a high level of
total return consistent with preservation of capital. This Fund invests
in common stocks, bonds and money market instruments of both domestic
and foreign issuers. The Global Balanced Fund can also have investments
in foreign currency contracts.
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"). Normally, the Fund's assets are
invested in securities of issuers headquartered in at least five
different countries.
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. This
strategy is commonly referred to as investing in the "dogs" of the Dow.
The remaining assets are invested in securities intended to replicate
the total return of the S&P 500 Index, normally Standard & Poor's
Depositary Receipts or additional common stocks.
The European Growth & Income Fund normally invests its assets in common
stocks of approximately ten issuers located in each of France, Germany,
the Netherlands and the United Kingdom. In each country, the Fund
selects the ten stocks with the highest dividend yield. These stocks
come from among the thirty issuers with the largest market
capitalizations which are included in each country's leading stock
index. The Fund, also known as the "Euro Dogs" Fund, follows investment
objectives and policies that are analogous to the Group's Growth &
Income Fund.
The Bunker Hill Money Market Fund invests in only high-quality
corporate, bank, and government debt instruments that Payden & Rygel
(the "Adviser") believes present minimal credit risk. To be considered
high-quality, a security generally must be rated in one of the two
highest categories for short-term securities by at least two nationally
recognized rating services or, if unrated, must be determined by the
Adviser to be of comparable quality. The Fund must limit its investments
to securities with remaining maturities of 397 days or less and must
maintain a dollar-weighted average maturity of 90 days or less.
The High Income Fund invests in a portfolio of higher yielding, below
investment grade bonds. Securities below investment grade are
speculative and subject to greater market
66 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 68
fluctuations and greater risk of loss of principal and income than
higher rated bonds. The Fund invests at least 65% of its assets in high
yield bonds and up to 20% of its total assets in convertible bonds,
preferred stocks, Brady bonds or "emerging market" bonds.
The Value Stock Fund seeks long-term capital appreciation by investing
in stocks with a value discipline. Companies selected for investment
exhibit one or more of the following criteria: (a) a share price which
appears to be inexpensive relative to the growth rate of cash flow or
the growth rate of sales; (b) an ability to generate free cash flow
internally; and (c) a positive catalyst, e.g., a new product.
The Growth Stock Fund seeks long-term capital appreciation by investing
in stocks with a growth discipline. Companies selected for investment
exhibit one or more of the following criteria: (a) a potential expansion
in profitability based on factors such as industry and the company's
competitive advantages; (b) a potential to achieve above average returns
on equity; and (c) above average growth in earnings before interest and
taxes.
There can, however, be no assurance that any of the Funds' investment
objectives will be achieved.
Each of the Funds, other than the Bunker Hill Money Market Fund which
does not offer Class S shares, offers both Class R and Class S shares.
Class S shares are subject to certain fees under a shareholder service
plan (the "Plan"); Class R 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 S and voting
rights on matters affecting a single class.
The Bunker Hill Money Market Fund offers both Class R and Class D
shares. Class D shares are subject to certain fees under a distribution
plan (the "Distribution Plan"); Class R shares do not participate in the
Distribution Plan. Class D shares pay the Distributor an annual fee of
up to 0.35% of the average daily net assets of the Fund attributable to
Class D shares, in accordance with Rule 12b-1 under the 1940 Act.
The Group is authorized to issue an unlimited number of shares of each
class, which are units of beneficial interest.
SEMI-ANNUAL REPORT 67
<PAGE> 69
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1998
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. Debt 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. Debt securities with remaining maturities of
sixty days or less are valued on an amortized cost basis unless 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 prices 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 prices 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. Money market investments are
valued at amortized cost, which approximates market value. Under the
amortized cost valuation method, discount or premium is amortized on a
constant basis to the maturity of the security.
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-
68 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 70
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, Global Balanced, International
Equity and Total Return Funds may purchase debt obligations that are
payable in foreign currencies. For these five Funds, investment
securities, other assets and liabilities denominated in a foreign
currency are translated into U.S. dollars at the current exchange rates.
Purchases and sales of securities, income receipts and expense payments
are translated into U.S. dollars at the exchange rates on the dates of
the transactions.
Each of these five Funds isolates that portion of the results of
operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices
of securities held.
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 differences between the amounts of
interest or expenses recorded on each of these Fund's books and the U.S.
dollar equivalents 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 Bunker Hill Money Market 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
SEMI-ANNUAL REPORT 69
<PAGE> 71
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1998
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. As writer of an option,
the Fund has no control over whether the underlying securities are
subsequently sold (call) or purchased (put) and, as a result, bears the
market risk of an unfavorable change in the price of the security
underlying the written option.
When any of the Funds (except Bunker Hill Money Market 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 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 security 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 Bunker Hill Money Market 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 may invest in futures
70 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 72
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,
European Growth & Income, International Equity, Value Stock and Growth
Stock 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 the
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.
Swap Contracts
Each Fund, other than the Growth & Income, European Growth & Income and
International Equity Funds, may enter into interest rate, index and
currency swap transactions. An interest rate, index or currency swap is
a derivative instrument which involves an agreement between a Fund and
another party to exchange payments calculated as if they were interest
on a fictitious ("notional") principal amount (e.g., an exchange of
floating rate payments by one party for fixed rate payments by the
other).
Each of the Equity Funds, and each of the European Growth & Income and
the Global Balanced Funds may enter into equity swap transactions. An
equity swap is a derivative instrument which involves an agreement
between a Fund and another party to exchange payments calculated as if
they were interest on a notional principal amount. The Fund will
typically pay a floating rate of interest, such as the three-month
London Interbank Offered Rate, and receive the total return, i.e., price
change plus dividends, of a specified equity index, such as the S&P 500
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.
Forward Currency Contracts
The Global Short Bond, Global Fixed Income, Total Return, High Income,
Market Return, European Growth & Income, 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 into these contracts from the potential inability of counter
parties to meet the
SEMI-ANNUAL REPORT 71
<PAGE> 73
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1998
terms of their contracts and from unanticipated movements in the value
of a foreign currency relative to the U.S. dollar. These eight Funds
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 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 for all Funds,
except for (i) the International Equity, Global Balanced, European
Growth & Income, High Income and Growth & Income Funds which are
declared and paid quarterly, (ii) the Value Stock and Growth Stock Funds
which are declared and paid semi-annually, and (iii) the Bunker Hill
Money Market Fund which are declared daily and paid monthly. 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.
72 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 74
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 amounts of net investment income and net realized gains
or losses reported in these financial statements may differ from those
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 in the accompanying statements. Return of
capital distributions and net investment losses for tax purposes are
reclassified to paid in capital.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that 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 are allocated between the classes based upon net assets of
each class. Class-specific expenses are charged to each Class as
incurred.
SEMI-ANNUAL REPORT 73
<PAGE> 75
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1998
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,
1998, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Global Short Bond Fund......................... $208,782,405 $147,853,241
Global Fixed Income Fund....................... 381,155,590 488,640,973
Global Balanced Fund........................... 4,623,912 7,549,860
International Equity Fund...................... 11,466,081 6,860,340
European Growth & Income Fund.................. 11,708,284 2,409,581
Growth & Income Fund........................... 59,328,774 972,979
Market Return Fund............................. 20,841,261 0
Limited Maturity Fund.......................... 51,799,190 13,167,192
Short Bond Fund................................ 68,902,038 43,165,413
U.S. Government Fund........................... 61,302,093 33,117,969
Intermediate Bond Fund......................... 88,731,471 62,939,502
Investment Quality Bond Fund................... 206,968,548 165,919,073
Total Return Fund.............................. 89,552,346 121,531,830
Short Duration Tax Exempt Fund................. 4,428,394 19,428,792
Tax Exempt Bond Fund........................... 17,418,129 6,348,992
Bunker Hill Money Market Fund.................. 0 0
High Income Fund............................... 39,912,628 3,062,538
Value Stock Fund............................... 22,353,929 2,568,713
Growth Stock Fund.............................. 3,503,262 326,720
</TABLE>
Purchases and sales of long-term U.S. Government securities for those
Funds with activity for the period ended April 30, 1998, were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ -----------
<S> <C> <C>
Global Short Bond Fund......................... $ 70,419,332 $55,890,969
Global Fixed Income Fund....................... 52,591,266 44,241,836
Global Balanced Fund........................... 1,270,099 0
Market Return Fund............................. 6,051,680 4,045,625
Limited Maturity Fund.......................... 87,705,547 50,230,491
Short Bond Fund................................ 57,867,023 44,839,032
U.S. Government Fund........................... 136,864,309 33,117,969
Intermediate Bond Fund......................... 0 5,579,730
Investment Quality Bond Fund................... 5,016,493 11,152,751
Total Return Fund.............................. 38,410,235 40,559,930
High Income Fund............................... 13,942,148 9,005,391
</TABLE>
74 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 76
The Global Fixed Income Fund's activity in written options for the six
months ended April 30, 1998 was as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACTS
CONTRACTS PREMIUM
---------- -----------
<S> <C> <C>
Options outstanding at beginning of period........ 0 $ 0
Options sold...................................... 1,400 1,189,406
Options canceled in closing transactions.......... (1,400) (1,189,406)
Options expired prior to exercise................. 0 0
--------- -----------
Options outstanding at end of period.............. 0 $ 0
</TABLE>
The Short Bond Fund's activity in written options for the six months
ended April 30, 1998 was as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACTS
CONTRACTS PREMIUM
--------- ---------
<S> <C> <C>
Options outstanding at beginning of period.......... 0 $ 0
Options sold........................................ 400 340,500
Options canceled in closing transactions............ (400) (340,500)
Options expired prior to exercise................... 0 0
-------- --------
Options outstanding at end of period................ 0 $ 0
</TABLE>
The Intermediate Fund's activity in written options for the six months
ended April 30, 1998 was as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACTS
CONTRACTS PREMIUM
---------- ---------
<S> <C> <C>
Options outstanding at beginning of period.......... 0 $ 0
Options sold........................................ 680 882,431
Options canceled in closing transactions............ (480) (425,619)
Options expired prior to exercise................... 0 0
--------- --------
Options outstanding at end of period................ 200 $456,812
</TABLE>
SEMI-ANNUAL REPORT 75
<PAGE> 77
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1998
The Investment Quality Bond Fund's activity in written options for the
six months ended April 30, 1998 was as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACTS
CONTRACTS PREMIUM
--------- ---------
<S> <C> <C>
Options outstanding at beginning of period.......... 40 $ 60,638
Options sold........................................ 680 882,463
Options canceled in closing transactions............ 520 486,288
Options expired prior to exercise................... 0 0
-------- --------
Options outstanding at end of period................ 200 $456,813
</TABLE>
The Total Return Fund's activity in written options for the six months
ended April 30, 1998 was as follows:
<TABLE>
<CAPTION>
NUMBER OF CONTRACTS
CONTRACTS PREMIUM
--------- ---------
<S> <C> <C>
Options outstanding at beginning of period.......... 40 $ 60,950
Options sold........................................ 680 882,431
Options canceled in closing transactions............ 520 (486,569)
Options expired prior to exercise................... 0 0
-------- --------
Options outstanding at end of period................ 200 $456,812
</TABLE>
None of the other Funds had activity in written options for the six
months ended April 30, 1998.
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 a period not exceeding five years. The
organization costs and the amounts reimbursed as of April 30, 1998 are
as follows:
<TABLE>
<CAPTION>
CUMULATIVE AMORTIZED
ORGANIZATION ORGANIZATION
COSTS EXPENSES
------------ ------------
<S> <C> <C>
Global Short Bond Fund.......................... $ 2,047 $ 1,319
Global Balanced Fund............................ 4,063 1,988
International Equity Fund....................... 3,799 1,874
European Growth & Income Fund................... 4,958 1,302
Growth & Income Fund............................ 11,447 5,388
Market Return Fund.............................. 49,138 36,646
</TABLE>
76 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 78
<TABLE>
<CAPTION>
CUMULATIVE AMORTIZED
ORGANIZATION ORGANIZATION
COSTS EXPENSES
------------ ------------
<S> <C> <C>
Total Return Fund............................... $3,255 $1,628
Bunker Hill Money Market Fund................... 848 104
High Income Fund................................ 625 70
Value Stock Fund................................ 6,641 740
Growth Stock Fund............................... 6,641 740
</TABLE>
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 and Global Fixed Income Funds is 0.30% on
net assets up to $2 billion, decreasing to 0.25% on net assets over $2
billion. The rate for the Short Duration Tax Exempt and Tax Exempt Bond
Funds is 0.32% on net assets up to $500 million, decreasing in
increments to 0.25% on net assets over $1 billion. The rate for the U.S.
Government, Limited Maturity, Short Bond, Intermediate Bond, Investment
Quality Bond, Market Return and Total Return Funds is 0.28% on net
assets up to $1 billion, decreasing to 0.25% 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. The rate for the European Growth & Income Fund is 0.50%
on net assets up to $2 billion and 0.40% on net assets over $2 billion.
The rate for the Bunker Hill Money Market Fund is 0.15% on all net
assets. The rate for the High Income Fund is 0.35% on all net assets.
The rate for the Value Stock Fund and Growth Stock Fund is 0.60% on net
assets up to $1 billion and 0.50% on net assets over $1 billion.
Payden & Rygel has voluntarily agreed to waive 0.20% of its fee for
advisory services for the Growth & Income Fund through October 31, 1998.
Payden & Rygel has also voluntarily agreed to waive 0.35% of its fee for
advisory services for the High Income Fund and 0.60% of its fee for
advisory services for the Value Stock Fund and Growth Stock Fund through
June 30, 1998. In addition, Payden & Rygel has agreed to guarantee that,
for so long as it acts as investment adviser to a Fund, the expenses of
the Fund attributable to Class R Shares, including advisory fees (but
excluding interest, taxes, portfolio transaction expenses, blue sky
fees, 12b-1 plan fees and extraordinary expenses) will not exceed the
percentage indicated below of that Fund's average daily net assets on
SEMI-ANNUAL REPORT 77
<PAGE> 79
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1998
an annualized basis. In that regard, Payden & Rygel has voluntarily
agreed to lower the expense guarantee for the Limited Maturity Fund from
0.60% to 0.40% for the Class R shares through October 31, 1998. Finally,
Payden & Rygel has voluntarily agreed to temporarily limit each Fund's
total expenses attributable to Class R shares, including advisory fees,
to the percentage indicated below of that Fund's average daily net
assets on an annualized basis through October 31, 1998 (exclusive of
interest, taxes, portfolio transaction expenses, blue sky fees, 12b-1
plan fees and extraordinary expenses).
<TABLE>
<CAPTION>
CLASS R SHARES
----------------------
VOLUNTARY
EXPENSE EXPENSE
GUARANTEE LIMIT
--------- ---------
<S> <C> <C>
Global Short Bond Fund.............................. 0.70% 0.45%
Global Fixed Income Fund............................ 0.70% n/a
Global Balanced Fund................................ 0.85% 0.70%
International Equity Fund........................... 1.05% 0.90%
European Growth & Income Fund....................... 0.90% 0.70%
Growth & Income Fund................................ 0.80% 0.54%
Market Return Fund.................................. 0.60% 0.45%
Limited Maturity Fund............................... 0.40% 0.30%
Short Bond Fund..................................... 0.60% 0.30%
U.S. Government Fund................................ 0.60% 0.35%
Intermediate Bond Fund.............................. 0.60% 0.40%
Investment Quality Bond Fund........................ 0.60% 0.45%
Total Return Fund................................... 0.60% 0.45%
Short Duration Tax Exempt Fund...................... 0.60% 0.45%
Tax Exempt Bond Fund................................ 0.60% 0.50%
Bunker Hill Money Market Fund....................... 0.50% 0.30%
High Income Fund.................................... 0.75% 0.55%
Value Stock Fund.................................... 1.00% 0.80%
Growth Stock Fund................................... 1.00% 0.80%
</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
net expense in the statements of operations as expense previously
deferred in future periods, if expense limits permit.
78 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 80
Effective May 30, 1997, Payden & Rygel Distributors, a subsidiary of
Payden & Rygel which serves as the distributor for the Funds, entered
into an agreement with Bank of America providing for the sale of Class S
Shares of certain of the Funds to customers of Bank of America. However,
as of April 30, 1998, no Class S Shares have been sold to the public
through this arrangement.
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
Sub-Advisor 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.
Under the distribution agreement with the Group, Payden & Rygel
Distributors is not entitled to receive any fees from the Group.
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, 1998, as identified in the Statements of Assets and
Liabilities as deferred expenses subsidy, the cumulative
SEMI-ANNUAL REPORT 79
<PAGE> 81
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 1998
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>
Global Balanced Fund............... $129,259 $ 78,534
International Equity Fund.......... 131,610 107,976
European Growth & Income........... 141,088 78,900
Market Return Fund................. 233,363 114,100
Bunker Hill Money Market Fund...... 30,161 15,000
Value Stock Fund................... 27,680 21,000
Growth Stock Fund.................. 27,219 8,000
</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.
80 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 82
(This page intentionally left blank)
SEMI-ANNUAL REPORT 81
<PAGE> 83
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
GLOBAL SHORT BOND FUND
=============================================
PERIOD ENDED YEAR ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, OCTOBER 31,
1998 1997 1996(a)
============ =========== ============
<S> <C> <C> <C>
Net asset value -- beginning of period............. $ 10.17 $ 10.07 $ 10.00
----------- ----------- -----------
Income (loss) from investment activities:
Net investment income............................ 0.68 0.58 0.05
Net realized and unrealized gains (losses)....... (0.35) 0.11 0.06
----------- ----------- -----------
Total from investment activities............ 0.33 0.69 0.11
----------- ----------- -----------
Distributions to shareholders:
From net investment income....................... (0.34) (0.59) (0.04)
From net realized gains..........................
In excess of net realized gains..................
----------- ----------- -----------
Total distributions to shareholders......... (0.34) (0.59) (0.04)
----------- ----------- -----------
Net asset value -- end of period................... $ 10.16 $ 10.17 $ 10.07
=========== =========== ===========
Total return....................................... 3.34% 7.02% 1.10%*
=========== =========== ===========
Ratios/supplemental data:
Net assets, end of period (000).................. $279,815 $220,865 $28,913
Ratio of expenses to average net assets.......... 0.45% 0.45% 0.45%**
Ratio of net investment income to average net
assets........................................ 4.69% 4.84% 4.86%**
Ratio of expenses to average net assets prior to
subsidies and waivers......................... 0.48% 0.53% 2.31%**
Ratio of net investment income to average net
assets prior to subsidies and waivers......... 4.66% 4.76% 3.00%**
Portfolio turnover rate.......................... 158% 219% 0%**
</TABLE>
- ------------
The Funds commenced operations on following dates:
<TABLE>
<S> <C>
(a) September 18, 1996. (g) January 1, 1995.
(b) December 9, 1996. (h) September 1, 1994.
(c) June 30, 1997. (i) January 1, 1994.
(d) November 1, 1996. (j) December 21, 1993.
(e) December 1, 1995. (k) December 17, 1997.
(f) May 1, 1994. (l) December 30, 1997.
</TABLE>
* Not annualized
** Annualized
See notes to financial statements.
82 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 84
<TABLE>
<CAPTION>
GLOBAL FIXED INCOME FUND
====================================================================
PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997 1996 1995 1994
============ =========== =========== =========== ===========
<S> <C> <C> <C> <C>
$ 10.16 $ 10.35 $ 10.32 $ 9.77 $ 10.62
- ----------- ----------- ----------- ----------- ----------
0.45 1.03 0.54 0.89 0.44
(0.16) 0.19 0.53 (0.65)
- ----------- ----------- ----------- ----------- ----------
0.45 0.87 0.73 1.42 (0.21)
- ----------- ----------- ----------- ----------- ----------
(0.28) (1.06) (0.70) (0.87) (0.42)
(0.22)
- ----------- ----------- ----------- ----------- ----------
(0.28) (1.06) (0.70) (0.87) (0.64)
- ----------- ----------- ----------- ----------- ----------
$ 10.33 $ 10.16 $ 10.35 $ 10.32 $ 9.77
=========== =========== =========== =========== ==========
4.52% 8.84% 7.41% 15.10% (2.09)%*
=========== =========== =========== =========== ==========
$503,038 $535,644 $651,165 $540,041 $430,210
0.49% 0.49% 0.53% 0.50% 0.55%**
4.85% 5.69% 5.67% 8.94% 4.24%**
0.49% 0.49% 0.53% 0.50% 0.55%**
4.85% 5.69% 5.67% 8.94% 4.24%**
273% 289% 176% 227% 348%**
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 83
<PAGE> 85
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
GLOBAL BALANCED
FUND
=============================
PERIOD ENDED PERIOD ENDED
APRIL 30, OCTOBER 31,
1998 1997(b)
============ ============
<S> <C> <C>
Net asset value -- beginning of period...................... $ 10.79 $ 10.00
----------- -----------
Income (loss) from investment activities:
Net investment income..................................... 0.20 0.05
Net realized and unrealized gains (losses)................ 1.15 0.90
----------- -----------
Total from investment activities..................... 1.35 0.95
----------- -----------
Distributions to shareholders:
From net investment income................................ (0.13) (0.05)
From net realized gains................................... (0.61) (0.11)
In excess of net realized gains...........................
----------- -----------
Total distributions to shareholders.................. (0.74) (0.16)
----------- -----------
Net asset value -- end of period............................ $ 11.40 $ 10.79
=========== ===========
Total return................................................ 13.29% 9.49%*
=========== ===========
Ratios/supplemental data:
Net assets, end of period (000)........................... $10,039 $10,312
Ratio of expenses to average net assets................... 0.70% 0.70%**
Ratio of net investment income to average net assets...... 2.82% 3.32%**
Ratio of expenses to average net assets prior to subsidies
and waivers............................................ 1.57% 1.64%**
Ratio of net investment income to average net assets prior
to subsidies and waivers............................... 1.95% 2.38%**
Portfolio turnover rate................................... 130% 211%**
</TABLE>
- ------------
The Funds commenced operations on following dates:
<TABLE>
<S> <C>
(a) September 18, 1996. (g) January 1, 1995.
(b) December 9, 1996. (h) September 1, 1994.
(c) June 30, 1997. (i) January 1, 1994.
(d) November 1, 1996. (j) December 21, 1993.
(e) December 1, 1995. (k) December 17, 1997.
(f) May 1, 1994. (l) December 30, 1997.
</TABLE>
* Not annualized
** Annualized
See notes to financial statements.
84 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 86
<TABLE>
<CAPTION>
INTERNATIONAL EUROPEAN GROWTH & GROWTH & INCOME
EQUITY FUND INCOME FUND FUND
=========================== =========================== ===========================
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1998 1997(b) 1998 1997(c) 1998 1997(d)
============ ============ ============ ============ ============ ============
<S> <C> <C> <C> <C> <C> <C>
$ 10.75 $ 10.00 $ 10.19 $ 10.00 $ 12.77 $ 10.00
- ----------- ----------- ----------- ----------- ----------- -----------
0.01 (0.28) 0.02 (0.04) 0.13 0.17
1.46 1.04 2.36 0.23 2.13 2.74
- ----------- ----------- ----------- ----------- ----------- -----------
1.47 0.76 2.38 0.19 2.26 2.91
- ----------- ----------- ----------- ----------- ----------- -----------
(0.01) (0.14) (0.14)
- ----------- ----------- ----------- ----------- ----------- -----------
0.00 (0.01) 0.00 0.00 (0.14) (0.14)
- ----------- ----------- ----------- ----------- ----------- -----------
$ 12.22 $ 10.75 $ 12.57 $ 10.19 $ 14.89 $ 12.77
=========== =========== =========== =========== =========== ===========
13.67% 7.59%* 23.36% 1.90%* 17.76% 29.19%*
=========== =========== =========== =========== =========== ===========
$21,864 $14,403 $27,131 $13,608 $246,710 $150,944
0.90% 0.90%** 0.70% 0.69%** 0.54% 0.54%**
1.26% 0.92%** 1.76% 1.72%** 1.50% 1.60%**
1.19% 1.57%** 1.81% 2.48%** 0.74% 0.89%**
0.97% 0.25%** 0.65% (0.07)%** 1.30% 1.25%**
83% 66%** 29% 9%** 1% 2%**
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 85
<PAGE> 87
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
MARKET RETURN FUND
=====================================================
PERIOD ENDED YEAR ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, OCTOBER 31,
1998 1997 1996(e)
============ =========== ============
<S> <C> <C> <C>
Net asset value -- beginning of period......... $ 12.80 $ 10.86 $10.00
----------- ---------- ---------
Income (loss) from investment activities:
Net investment income........................ 0.34 0.63 0.50
Net realized and unrealized gains (losses)... 2.20 2.64 0.86
----------- ---------- ---------
Total from investment activities........ 2.54 3.27 1.36
----------- ---------- ---------
Distributions to shareholders:
From net investment income................... (0.33) (0.63) (0.50)
From net realized gains...................... (0.97) (0.70)
In excess of net realized gains..............
----------- ---------- ---------
Total distributions to shareholders..... (1.30) (1.33) (0.50)
----------- ---------- ---------
Net asset value -- end of period............... $ 14.04 $ 12.80 $10.86
=========== ========== =========
Total return................................... 21.50% 31.74% 14.06%*
=========== ========== =========
Ratios/supplemental data:
Net assets, end of period (000)................ $36,963 $20,195 $5,789
Ratio of expenses to average net assets...... 0.45% 0.45% 0.00%**
Ratio of net investment income to average net
assets.................................... 5.58% 5.36% 5.95%**
Ratio of expenses to average net assets prior
to subsidies and waivers.................. 0.64% 0.96% 4.14%**
Ratio of net investment income to average net
assets prior to subsidies and waivers..... 5.39% 4.85% 1.81%**
Portfolio turnover rate...................... 43% 140% 146%**
</TABLE>
- ------------
The Funds commenced operations on following dates:
<TABLE>
<S> <C>
(a) September 18, 1996. (g) January 1, 1995.
(b) December 9, 1996. (h) September 1, 1994.
(c) June 30, 1997. (i) January 1, 1994.
(d) November 1, 1996. (j) December 21, 1993.
(e) December 1, 1995. (k) December 17, 1997.
(f) May 1, 1994. (l) December 30, 1997.
</TABLE>
* Not annualized
** Annualized
See notes to financial statements.
86 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 88
<TABLE>
<CAPTION>
LIMITED MATURITY FUND
=====================================================================
PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997 1996 1995 1994(f)
============ =========== =========== =========== ============
<S> <C> <C> <C> <C>
$ 10.06 $ 10.06 $ 10.06 $ 10.00 $ 10.00
- ----------- ----------- ---------- ---------- -----------
0.28 0.54 0.53 0.56 0.19
(0.01) 0.07 (0.01)
- ----------- ----------- ---------- ---------- -----------
0.27 0.54 0.53 0.63 0.18
- ----------- ----------- ---------- ---------- -----------
(0.28) (0.54) (0.53) (0.57) (0.18)
- ----------- ----------- ---------- ---------- -----------
(0.28) (0.54) (0.53) (0.57) (0.18)
- ----------- ----------- ---------- ---------- -----------
$ 10.05 $ 10.06 $ 10.06 $ 10.06 $ 10.00
=========== =========== ========== ========== ===========
2.66% 5.46% 5.41% 6.43% 1.84%*
=========== =========== ========== ========== ===========
$156,468 $152,429 $50,771 $18,414 $14,248
0.30% 0.30% 0.30% 0.33% 0.41%**
5.57% 5.52% 5.45% 5.59% 4.74%**
0.46% 0.52% 0.62% 0.83% 2.92%**
5.41% 5.30% 5.13% 5.09% 2.23%**
74% 135% 217% 166% 86%**
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 87
<PAGE> 89
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
U.S. GOVERNMENT FUND
=======================================================
PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997 1996 1995(g)
============ =========== =========== ============
<S> <C> <C> <C> <C>
Net asset value -- beginning of
period................................ $ 10.56 $ 10.54 $ 10.61 $ 10.00
----------- ---------- ---------- -----------
Income (loss) from investment
activities:
Net investment income................. 0.26 0.60 0.58 0.53
Net realized and unrealized gains
(losses)........................... 0.12 0.02 (0.04) 0.61
----------- ---------- ---------- -----------
Total from investment
activities.................... 0.38 0.62 0.54 1.14
----------- ---------- ---------- -----------
Distributions to shareholders:
From net investment income............ (0.26) (0.60) (0.58) (0.53)
From net realized gains............... (0.03)
In excess of net realized gains.......
----------- ---------- ---------- -----------
Total distributions to
shareholders.................. (0.26) (0.60) (0.61) (0.53)
----------- ---------- ---------- -----------
Net asset value -- end of period........ $ 10.68 $ 10.56 $ 10.54 $ 10.61
=========== ========== ========== ===========
Total return............................ 3.63% 6.10% 5.20% 11.61%*
=========== ========== ========== ===========
Ratios/supplemental data:
Net assets, end of period (000)....... $71,220 $15,479 $22,114 $10,894
Ratio of expenses to average net
assets............................. 0.34% 0.45% 0.45% 0.45%**
Ratio of net investment income to
average net assets................. 5.36% 5.49% 5.59% 6.31%**
Ratio of expenses to average net
assets prior to subsidies and
waivers............................ 0.46% 0.63% 0.78% 1.84%**
Ratio of net investment income to
average net assets prior to
subsidies and waivers.............. 5.24% 5.31% 5.26% 4.92%**
Portfolio turnover rate............... 474% 160% 152% 87%**
</TABLE>
- ------------
The Funds commenced operations on following dates:
<TABLE>
<S> <C>
(a) September 18, 1996. (g) January 1, 1995.
(b) December 9, 1996. (h) September 1, 1994.
(c) June 30, 1997. (i) January 1, 1994.
(d) November 1, 1996. (j) December 21, 1993.
(e) December 1, 1995. (k) December 17, 1997.
(f) May 1, 1994. (l) December 30, 1997.
</TABLE>
* Not annualized
** Annualized
See notes to financial statements.
88 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 90
<TABLE>
<CAPTION>
SHORT BOND FUND
=====================================================================
PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997 1996 1995 1994(h)
============ =========== =========== =========== ============
<S> <C> <C> <C> <C>
$ 9.92 $ 9.97 $ 10.04 $ 9.68 $10.00
- ----------- ---------- ---------- ---------- ---------
0.29 0.58 0.54 0.54 0.34
(0.02) (0.05) (0.06) 0.36 (0.32)
- ----------- ---------- ---------- ---------- ---------
0.27 0.53 0.48 0.90 0.02
- ----------- ---------- ---------- ---------- ---------
(0.29) (0.58) (0.54) (0.54) (0.34)
(0.01)
- ----------- ---------- ---------- ---------- ---------
(0.29) (0.58) (0.55) (0.54) (0.34)
- ----------- ---------- ---------- ---------- ---------
$ 9.90 $ 9.92 $ 9.97 $ 10.04 $ 9.68
=========== ========== ========== ========== =========
2.75% 5.52% 4.86% 9.56% 0.21%*
=========== ========== ========== ========== =========
$106,716 $94,256 $97,966 $19,157 $2,592
0.37% 0.40% 0.40% 0.40% 0.48%**
7.09% 6.00% 5.67% 5.72% 4.47%**
0.58% 0.49% 0.57% 1.03% 4.56%**
6.88% 5.91% 5.50% 5.09% 0.39%**
203% 208% 212% 170% 187%**
</TABLE>
SEMI-ANNUAL REPORT 89
<PAGE> 91
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
TOTAL RETURN FUND
=================================
PERIOD ENDED PERIOD ENDED
APRIL 30, OCTOBER 31,
1998 1997(b)
============ ============
<S> <C> <C>
Net asset value -- beginning of period...................... $ 10.25 $ 10.00
----------- -----------
Income (loss) from investment activities:
Net investment income..................................... 0.39 0.46
Net realized and unrealized gains (losses)................ (0.05) 0.23
----------- -----------
Total from investment activities....................... 0.34 0.69
----------- -----------
Distributions to shareholders:
From net investment income................................ (0.33) (0.44)
From net realized gains................................... (0.08)
In excess of net realized gains...........................
----------- -----------
Total distributions to shareholders.................... (0.41) (0.44)
----------- -----------
Net asset value -- end of period............................ $ 10.18 $ 10.25
=========== ===========
Total return................................................ 3.37% 7.10%*
=========== ===========
Ratios/supplemental data:
Net assets, end of period (000)........................... $69,873 $98,863
Ratio of expenses to average net assets................... 0.45% 0.45%**
Ratio of net investment income to average net assets...... 7.92% 6.21%**
Ratio of expenses to average net assets prior to subsidies
and waivers............................................ 0.52% 0.69%**
Ratio of net investment income to average net assets prior
to subsidies and waivers............................... 7.92% 5.97%**
Portfolio turnover rate................................... 297% 206%**
</TABLE>
- ------------
The Funds commenced operations on following dates:
<TABLE>
<S> <C>
(a) September 18, 1996. (g) January 1, 1995.
(b) December 9, 1996. (h) September 1, 1994.
(c) June 30, 1997. (i) January 1, 1994.
(d) November 1, 1996. (j) December 21, 1993.
(e) December 1, 1995. (k) December 17, 1997.
(f) May 1, 1994. (l) December 30, 1997.
</TABLE>
* Not annualized
** Annualized
See notes to financial statements.
90 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 92
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
=====================================================================
PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997 1996 1995 1994(i)
============ =========== =========== =========== ============
<S> <C> <C> <C> <C> <C>
$ 9.71 $ 9.60 $ 9.85 $ 9.30 $ 10.00
----------- ---------- ---------- ---------- -----------
0.29 0.56 0.56 0.57 0.35
0.11 (0.17) 0.55 (0.70)
----------- ---------- ---------- ---------- -----------
0.29 0.67 0.39 1.12 (0.35)
----------- ---------- ---------- ---------- -----------
(0.29) (0.56) (0.56) (0.57) (0.35)
(0.05) (0.08)
----------- ---------- ---------- ---------- -----------
(0.34) (0.56) (0.64) (0.57) (0.35)
----------- ---------- ---------- ---------- -----------
$ 9.66 $ 9.71 $ 9.60 $ 9.85 $ 9.30
=========== ========== ========== ========== ===========
3.02% 7.26% 4.06% 12.43% (3.52)%*
=========== ========== ========== ========== ===========
$101,403 $80,766 $52,767 $34,391 $14,312
0.40% 0.45% 0.45% 0.45% 0.46%**
6.09% 5.96% 5.90% 6.10% 5.39%**
0.45% 0.55% 0.58% 0.68% 2.03%**
6.04% 5.86% 5.77% 5.87% 3.82%**
143% 192% 196% 189% 358%**
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 91
<PAGE> 93
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
INVESTMENT QUALITY BOND
FUND
==========================================
PERIOD ENDED YEAR ENDED YEAR ENDED
APRIL 30, OCTOBER 31, OCTOBER 31,
1998 1997 1996
============ =========== ===========
<S> <C> <C> <C>
Net asset value -- beginning of period................. $ 10.01 $ 9.81 $ 9.96
----------- ---------- ----------
Income (loss) from investment activities:
Net investment income................................ 0.30 0.58 0.63
Net realized and unrealized gains (losses)........... 0.22 (0.17)
----------- ---------- ----------
Total from investment activities.................. 0.30 0.80 0.46
----------- ---------- ----------
Distributions to shareholders:
From net investment income........................... (0.27) (0.60) (0.61)
From net realized gains.............................. (0.05)
In excess of net realized gains......................
----------- ---------- ----------
Total distributions to shareholders............... (0.32) (0.60) (0.61)
----------- ---------- ----------
Net asset value -- end of period....................... $ 9.99 $ 10.01 $ 9.81
=========== ========== ==========
Total return........................................... 3.11% 8.44% 4.86%
=========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000)...................... $134,175 $94,987 $32,304
Ratio of expenses to average net assets.............. 0.45% 0.45% 0.00%
Ratio of net investment income to average net
assets............................................ 6.12% 6.03% 6.41%
Ratio of expenses to average net assets prior to
subsidies and waivers............................. 0.47% 0.53% 0.64%
Ratio of net investment income to average net assets
prior to subsidies and waivers.................... 6.10% 5.95% 5.77%
Portfolio turnover rate.............................. 282% 317% 197%
</TABLE>
- ------------
The Funds commenced operations on following dates:
<TABLE>
<S> <C>
(a) September 18, 1996. (g) January 1, 1995.
(b) December 9, 1996. (h) September 1, 1994.
(c) June 30, 1997. (i) January 1, 1994.
(d) November 1, 1996. (j) December 21, 1993.
(e) December 1, 1995. (k) December 17, 1997.
(f) May 1, 1994. (l) December 30, 1997.
</TABLE>
* Not annualized
** Annualized
See notes to financial statements.
92 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 94
<TABLE>
<CAPTION>
INVESTMENT QUALITY SHORT DURATION TAX EXEMPT
BOND FUND FUND
========================== =====================================================================
YEAR ENDED PERIOD ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, APRIL 30, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1995 1994(i) 1998 1997 1996 1995 1994(h)
=========== ============ ============ =========== =========== =========== ============
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.09 $10.00 $ 10.08 $ 10.01 $ 10.08 $ 9.93 $ 10.00
---------- --------- ----------- ---------- ---------- ---------- -----------
0.57 0.37 0.22 0.38 0.38 0.42 0.04
0.87 (0.91) (0.05) 0.07 (0.06) 0.15 (0.07)
---------- --------- ----------- ---------- ---------- ---------- -----------
1.44 (0.54) 0.17 0.45 0.32 0.57 (0.03)
---------- --------- ----------- ---------- ---------- ---------- -----------
(0.57) (0.37) (0.22) (0.38) (0.38) (0.42) (0.04)
(0.01) (0.01)
---------- --------- ----------- ---------- ---------- ---------- -----------
(0.57) (0.37) (0.23) (0.38) (0.39) (0.42) (0.04)
---------- --------- ----------- ---------- ---------- ---------- -----------
$ 9.96 $ 9.09 $ 10.02 $ 10.08 $ 10.01 $ 10.08 $ 9.93
========== ========= =========== ========== ========== ========== ===========
16.39% (5.49)%* 1.64% 4.55% 3.28% 5.88% (0.35)%*
========== ========= =========== ========== ========== ========== ===========
$25,822 $3,030 $21,784 $38,176 $36,336 $16,019 $20,150
0.45% 0.49%** 0.45% 0.45% 0.45% 0.45% 0.45%**
6.20% 5.25%** 4.09% 3.75% 3.81% 4.12% 3.20%**
1.11% 4.52%** 0.66% 0.62% 0.70% 0.91% 2.87%**
5.55% 1.22%** 3.88% 3.58% 3.56% 3.66% 0.78%**
252% 513%** 31% 57% 35% 80% 0%**
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 93
<PAGE> 95
FINANCIAL HIGHLIGHTS (CONTINUED)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
TAX EXEMPT BOND
FUND
========================================
PERIOD ENDED YEAR ENDED YEAR ENDED
APRIL 30, OCTOBER 31, OCTOBER 31,
1998 1997 1996
============ =========== ===========
<S> <C> <C> <C>
Net asset value -- beginning of period...................... $ 9.71 $ 9.47 $ 9.59
----------- ---------- ----------
Income (loss) from investment activities:
Net investment income..................................... 0.20 0.44 0.45
Net realized and unrealized gains (losses)................ (0.03) 0.24 (0.12)
----------- ---------- ----------
Total from investment activities....................... 0.17 0.68 0.33
----------- ---------- ----------
Distributions to shareholders:
From net investment income................................ (0.19) (0.44) (0.45)
From net realized gains...................................
In excess of net realized gains...........................
----------- ---------- ----------
Total distributions to shareholders.................... (0.19) (0.44) (0.45)
----------- ---------- ----------
Net asset value -- end of period............................ $ 9.69 $ 9.71 $ 9.47
=========== ========== ==========
Total return........................................... 1.80% 7.33% 3.52%
=========== ========== ==========
Ratios/supplemental data:
Net assets, end of period (000)........................... $66,523 $57,579 $49,862
Ratio of expenses to average net assets................... 0.48% 0.45% 0.45%
Ratio of net investment income to average net assets...... 4.08% 4.60% 4.73%
Ratio of expenses to average net assets prior to subsidies
and waivers............................................ 0.53% 0.59% 0.61%
Ratio of net investment income to average net assets prior
to subsidies and waivers............................... 4.03% 4.46% 4.57%
Portfolio turnover rate................................... 17% 42% 23%
</TABLE>
- ------------
The Funds commenced operations on following dates:
<TABLE>
<S> <C>
(a) September 18, 1996. (g) January 1, 1995.
(b) December 9, 1996. (h) September 1, 1994.
(c) June 30, 1997. (i) January 1, 1994.
(d) November 1, 1996. (j) December 21, 1993.
(e) December 1, 1995. (k) December 17, 1997.
(f) May 1, 1994. (l) December 30, 1997.
</TABLE>
* Not annualized
** Annualized
See notes to financial statements.
94 PAYDEN & RYGEL INVESTMENT GROUP
<PAGE> 96
<TABLE>
<CAPTION>
BUNKER HILL
TAX EXEMPT MONEY MARKET HIGH INCOME VALUE STOCK GROWTH STOCK
BOND FUND FUND FUND FUND FUND
========================== ==================== ==================== ==================== ====================
YEAR ENDED PERIOD ENDED FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
OCTOBER 31, OCTOBER 31, DECEMBER 17, 1997 DECEMBER 30, 1997 DECEMBER 30, 1997 DECEMBER 30, 1997
1995 1994(j) TO APRIL 30, 1998(k) TO APRIL 30, 1998(l) TO APRIL 30, 1998(l) TO APRIL 30, 1998(l)
=========== ============ ==================== ==================== ==================== ====================
<S> <C> <C> <C> <C> <C> <C>
$ 8.90 $ 10.00 $ 1.00 $ 10.00 $ 10.00 $10.00
---------- ----------- --------------- --------------- --------------- -------------
0.46 0.33 0.02 0.16 0.03 0.02
0.69 (1.10) 0.23 2.00 1.07
---------- ----------- --------------- --------------- --------------- -------------
1.15 (0.77) 0.00 0.39 2.03 1.09
---------- ----------- --------------- --------------- --------------- -------------
(0.46) (0.33) (0.02) (0.11)
---------- ----------- --------------- --------------- --------------- -------------
(0.46) (0.33) 0.00 (0.11) 0.00 0.00
---------- ----------- --------------- --------------- --------------- -------------
$ 9.59 $ 8.90 $ 1.00 $ 10.28 $ 12.03 $11.09
========== =========== =============== =============== =============== =============
13.25% (7.85)%* 1.96%* 3.90%* 20.29%* 10.91%*
========== =========== =============== =============== =============== =============
$40,052 $25,474 $16,253 $47,566 $20,687 $3,643
0.45% 0.50%** 0.30%** 0.54%** 0.78%** 0.79%**
4.97% 4.47%** 5.26%** 7.30%** 1.92%** 0.71%**
0.74% 1.07%** 1.64%** 0.82%** 1.68%** 3.16%**
4.69% 3.90%** 3.92%** 7.02%** 1.02%** 1.66%**
42% 98%** 0%** 197%** 118%** 35%**
</TABLE>
See notes to financial statements.
SEMI-ANNUAL REPORT 95
