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[Logo of Payden & Rygel Mutual Funds]
semi-annual report April 30, 1999
Payden & Rygel Investment Group
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Contents
Chairman's Letter
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1
Management
Discussion and
Analysis
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5
Portfolio
Highlights
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16
Statements of
Assets
and Liabilities
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20
Statements of
Operations
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24
Statements of
Changes in Net
Assets
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34
Schedules of
Portfolio
Investments
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67
Notes to Financial
Statements
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82
Financial Highlights
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96
Trustees and Officers
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<PAGE>
Dear Shareholders:
The six months ended April 30, 1999 were extraordinarily successful for Payden &
Rygel Investment Group. Our mutual funds continued to grow, we successfully
launched three new mutual funds, and we received frequent recognition in the
financial press for the consistent performance of several of our key strategies.
Most importantly, it's the bottom line that matters: we are pleased to report
that we provided our shareholders with strong performance in virtually all
investment categories.
Consistently providing attractive returns is our primary objective and is the
key to our past and current success. It is important to emphasize that our
performance can be attributed to the single most significant investment theme
that dominates our culture, approach, and process: our belief in the critical
importance of portfolio risk management in all economic environments.
Looking back over the past six months, investors could easily conclude that the
world is a significantly different place. Late last year, the financial markets
were dominated by the themes of global crisis, collapsing hedge funds, domestic
political scandal, and unparalleled market volatility. Today, almost all of that
seems to be forgotten.
Headlines in the financial press during the first half of 1999 have been
dominated by stories relating to the Dow's crossing the 10,000 point milestone.
Soon after that, we saw the Dow cross 11,000. As the U.S. stock market hits new
highs almost daily, and as several global economies make impressive economic
recoveries, the world certainly appears to have changed. Nonetheless, we remain
focused and objective in this time of rapid change.
Examples of specific fund highlights during the period include the following:
The Payden & Rygel High Income Fund was ranked fifth out of 246 funds within the
Lipper High Yield group./1/ Despite significant volatility in the high yield
market, the Fund's emphasis on comprehensive fundamental credit research and
risk management allowed it to avoid the many pitfalls that plagued the market
recently. The Fund's performance has resulted in recognition in several
publications including U.S. News and World Report, the Wall Street Journal, Dow
Jones Investment Advisor and Financial Planning Magazine.
Our Total Return Fund, which uses a broad-based strategy employing a number of
diverse fixed-income sectors, has significantly outperformed its benchmark
during the past six months, and
/1/ Ranking entity: Lipper, Inc. Rankings based on the 1-year return for the
period ending 12/31/98.
<PAGE>
was ranked second among fixed-income funds for 1-year performance by Pension &
Investments in its May 3, 1999 issue./2/
The Payden & Rygel Global Fixed Income Fund has continued to receive favorable
mention in the financial press, including recent articles in both U.S. News and
World Report and Fortune magazine. In order to reduce risk and volatility, the
Fund has predominately hedged foreign currency exposure relative to the U.S.
dollar. This has significantly contributed to our ability to provide our
investors with excellent risk-adjusted returns.
During the past six months, we introduced three new mutual funds that expand our
investor's ability to take advantage of changes in the European capital markets,
provide improved tax-efficiency, and offer exposure to emerging market
countries.
. Our EuroDirect Fund invests in European stocks and bonds and will take
advantage of new market segments and instruments brought on by the recent
introduction of the Euro currency. In addition, changes in the investment
culture due to reforms promoting the use of private pension plans offer
significant potential in the European equity markets.
. Our California Municipal Income Fund is a high quality investment fund with
the objective of generating high current income that is exempt from Federal
and California State income tax. This fund is suitable for California
residents who seek high after-tax income.
. Our Emerging Markets Bond Fund uses a diversified approach to securities in
emerging market countries. This Fund reduces foreign currency risk by focusing
primarily on securities denominated in U.S. dollars. Due to its low
correlation to other asset classes, this fund is an excellent vehicle to
diversify allocations to other fixed-income sectors.
We have you, the shareholder, to thank for making these new products successful
additions to the Payden & Rygel family of mutual funds.
Sincerely,
/s/ Joan Payden
Joan Payden
Chairman & CEO
Payden & Rygel Investment Group
/2/ Ranking entity: Morningstar, Inc. Rankings based on the 1-year return for
the period ending 3/31/99 for the 100 fixed income funds most utilized by
defined contribution plans as compiled by Morningstar.
<PAGE>
Management Discussion and Analysis
- --------------------------------------------------------------------------------
Equity Markets
The US stock market recovered extremely well from the problems in the late
summer, posting one of the strongest six-month returns in history. Equity
investors seemed to toss away their earlier worries about a global financial
catastrophe and the effect on corporate earnings. However, concerns regarding
the breadth of the market remained. The stock market recovery, in large part,
was confined to only the largest blue chip growth stocks, or seemingly anything
to do with the internet.
For the six-month period ended April 30, 1999, the Growth & Income Fund gained
19.35%. This slightly lagged the S&P 500 Stock Index gain of 22.32%. The Fund,
of course, is the largest mutual fund following the "dogs of the Dow" strategy.
The strategy is really a value style, as it hopes to capture good companies
that have temporarily fallen on hard times, and that are identified as "cheap"
by their high dividend yield. In the past few years, the market has not seemed
to care about traditional valuation measures, and particularly about stocks
that have a value theme. Since there is nothing with ".com" on it in the Dow
Jones Industrial Average, these stocks have not been an area of focus.
The Growth & Income Fund was helped by the performance of such stocks as J.P.
Morgan and Caterpillar Inc., which gained 45.5% and 44.9%, respectively, in the
six months ended April 30, 1999. Exposure to international markets proved
valuable to both companies as the global economic crisis eased and the outlook
for future growth improved. While the Fund lagged the S&P 500 Stock Index over
the past 12 months, it comfortably beat the index of large company value
stocks, known as the S&P 500/BARRA Value Index, by more than 4%. We continue to
believe that the "dogs of the Dow" strategy has great merit, particularly as a
large company value style strategy. Morningstar apparently thinks so, too, as
they added the Fund to their select Morningstar 500. This is Payden & Rygel's
second fund in that prestigious group.
One of the special features of the Growth & Income Fund is the tax efficiency
factor. Because there is so little turnover and the minimum holding period for
an investment is one year, the after-tax return of the Fund is outstanding.
During calendar year 1998, the Growth & Income Fund had an after-tax return
that put it in the top 10% of all large cap value stock funds, as measured by
Morningstar./1/ Since many of us at Payden & Rygel are also shareholders in the
Funds, we are careful to pay attention to issues like this that are often
overlooked in the large fund houses.
The Market Return Fund gained 21.78% for the six months ended April 30, 1999.
The Fund, which is a combination of a short-term bond fund and S&P 500 futures,
performed consistently with the overall market. It is an excellent vehicle for
IRAs and other tax-deferred investments.
- -------
/1/ Ranking entity: Morningstar, Inc. Rankings based on the 1-year return for
the period ending 12/31/98 for the 537 funds in Morningstar's Large Value
Universe.
Semi-Annual Report 1
<PAGE>
Management Discussion and Analysis (continued)
- --------------------------------------------------------------------------------
For the six months ended April 30, 1999, the Small Cap Growth Stock Fund gained
18.65% and the Small Cap Value Stock Fund gained 10.81%. While this has been
one of the most difficult markets in history for small cap stocks, both our
Funds beat the benchmark S&P SmallCap 600 Index return of 9.01%.
The European Growth & Income Fund gained 9.32% for the six months ended April
30, 1999, at the same time the Dow Jones Europe STOXX index advanced 11.82%.
This Fund is the European "cousin" to our Growth & Income Fund. The launch of
the Euro this year also precipitated an adjustment in the methodology of the
Fund. We expanded the universe from four European markets to all fifteen
markets of the European Monetary Union (EMU). In addition, we altered our value
screen so that it would work across the fifteen (rather than just the four)
markets. This led us to focus on the "peg ratio" for each issuer, which is the
price to earnings ratio divided by the long-term growth rate of the company.
This methodology captures companies with good long-term growth prospects that
are cheap. The other factors in the strategy remain the same, as we still buy
only the largest companies in Europe, and we still hold investments for at
least one year from date of purchase. The Fund's goal is very similar in
concept to what the dogs of the Dow is trying to capture in the US.
The Global Balanced Fund returned 12.80% for the six months ended April 30,
1999, significantly outperforming the 10.58% advance of its 60% stock/40% bond
benchmark despite being more conservative and evenly balanced than its
benchmark for much of the year. By maintaining exposure to select Asian equity
markets throughout the period, the Fund participated in the precipitous rally
occurring in the region in 1999. The bond component also added stability, as
the Fund continued to have relatively low variability of return. This Fund is
an excellent choice for investors who are troubled by making their own
stock/bond/cash decisions, or for investors looking for instant
diversification.
Bond Markets
The dynamics of the US fixed-income market have changed considerably over the
past few quarters. Market levels have moved sharply from the levels observed in
the fall of last year. In the aftermath of last fall's flight-to-quality, US
Treasury rates have risen about 1%, from 4.8% to 5.8%, while mortgage and
corporate spreads and market volatility have all moved significantly lower.
Though higher Treasury rates are generally a negative for bond portfolios, our
Investment Quality Bond and Total Return Funds have both performed
exceptionally in this environment due to our overweight of non-Treasury
securities, such as mortgages, corporates and asset-backs. Both of these Funds,
which have average maturities ranging from five to seven years, have out-
performed their benchmarks year-to-date through April 30, 1999. In addition,
the 2.91% performance of the Total Return Fund during the six months ended
April 30, 1999 was
2 Payden & Rygel Investment Group
<PAGE>
enhanced by our allocation to additional sectors such as convertible bonds,
certain higher yielding corporate bonds, and emerging market securities. The
U.S. Government Fund performed well due to its allocation to agency securities
and agency mortgage-backed securities.
Our shorter maturity funds have also performed well in this environment. The
Limited Maturity and Short Bond Funds continue to be rated five and four
stars,/2/ respectively, by Morningstar with returns of 2.39% and 1.72%, while
the Bunker Hill Fund was ranked in the top quartile for all institutional money
market funds./3/ These funds performed well in this environment due to the
relatively short maturity and the overweighting of corporate and asset backed
issues.
Our High Income Fund and our Emerging Markets Bond Fund provide investors with
exposure to sectors outside the traditional core bond universe; both Funds have
been strong performers. Our High Income Fund, which emphasizes comprehensive
fundamental credit research, has benefited from a favorable upgrade to
downgrade ratio, with several bonds upgraded into investment grade. This focus
on managing risk resulted in the Fund outperforming its Merrill Lynch High
Yield Master Index by 260 basis points in 1998, and year-to-date through April
30, 1999, the Fund is outperforming its benchmark by 120 basis points. Our
Emerging Markets Bond Fund has also performed well, as emerging markets debt
spreads have narrowed by about 500 basis points since the Brazilian devaluation
in January of this year.
Both the Global Fixed Income Fund and Global Short Bond Fund finished 1998
strongly, as declining global bond yields pushed prices higher. Currency
hedging protected both Funds from foreign currency depreciation and helped
boost income, as deposit rates in the US remained higher than Europe or Japan.
The early months of 1999 have witnessed a shift in this trend, with bond yields
rising, especially in US treasuries. The resulting lower bond prices have
dampened performance. For the six months ended April 30, 1999, the Global Fixed
Income Fund earned 2.30% and the Global Short Bond Fund earned 2.31%.
January 1999 marked the introduction of the Euro currency. Participant
countries now share a common monetary policy and the same short term interest
rates as dictated by the new European Central Bank (ECB). Accordingly, bond
yields in EMU countries, such as Spain and Italy, have all but converged to
German yields, leaving only a small yield spread representing the credit
differential of issuers.
- -------
/2/ Morningstar ratings are for the periods ending May 31, 1999, out of a total
of 1,536 (3-year period) and 1,085 (5-year period) taxable bond funds.
Morningstar's proprietary ratings reflect historical risk-adjusted
performance and are subject to change monthly. Specifically, they are
calculated from each fund's 3-year and 5-year average annual returns in
excess of 90-day Treasury bill returns with appropriate adjustments for fees
and a risk factor that reflects performance below a 90-day Treasury bill
return. The top 10% of the funds in an investment category receive five
stars and the next 22.5% receive four stars.
/3/ Ranking entity: Lipper, Inc. Rankings based on the six-month performance for
the period ending April 30, 1999 for the 327 funds in the Lipper Money
Market Fund Universe.
Semi-Annual Report 3
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Management Discussion and Analysis (continued)
- --------------------------------------------------------------------------------
Slowing economic activity across Europe prompted rate cuts by the ECB and the
Bank of England. The German 10-year government bond yield experienced
volatility during the past six months, but finished April at 4.1%. In the
United Kingdom, which is not yet an EMU participant, yields fell 0.5% to 4.6%.
Japanese 10-year bond yields rose 0.5% to 1.3%.
Since the Euro was introduced, it has depreciated 9% against the dollar. The
dollar has also appreciated against the yen. However, the current levels seem
to remain stuck in this range as Japan aims to increase exchange rate
stability.
Both the Short Duration Tax Exempt and Tax Exempt Bond Funds posted strong
performance for the six month period ended April 30, 1999, due primarily to our
emphasis on bonds in the intermediate portion of the yield curve. Despite the
fact that municipal yields rose over the period, the Tax Exempt Bond Fund
earned 1.54%. The Short Duration Tax Exempt Fund earned a higher return over
the period, 1.65%, due to the Fund's shorter maturity orientation in a rising
interest rate environment. The California Municipal Income Fund debuted in
December of 1998, and for the four months ended April 30, 1999, it earned
1.06%. The heavy demand for California bonds in a period of low supply caused
the yield spread on several issues to compress, also contributing to the
overall return.
4 Payden & Rygel Investment Group
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PORTFOLIO HIGHLIGHTS
This section includes Country Allocation and Portfolio Composition charts. In
the case of the Group's fixed income Funds, these charts are designed to
identify the country or type of security where a Fund is exposed to changes in
interest rates. In the case of the Group's equity Funds, these charts are
designed to identify the country or industry sector where a Fund is exposed to
changes in equity markets. In either case, if a Fund makes use of futures or
options contracts, the chart includes the effect of those contracts. Unless
indicated otherwise, the information in this section is as of April 30, 1999.
GLOBAL SHORT BOND FUND
Country Allocation
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France 2%
Italy 3%
Sweden 5%
United Kingdom 10%
New Zealand 15%
Australia 15%
U.S. 21%
Germany 29%
Credit Quality
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AAA 78%
AA 22%
A 0%
BBB 0%
FOREIGN CURRENCY EXPOSURE FULLY
HEDGED TO THE U.S. DOLLAR
April 30, 1999 October 31, 1998
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Net Assets $255,152,000 $251,609,000
Number of Issues 24 22
Average Maturity 2.6 years 3.0 years
SEC Yield 3.80% 3.91%
Semi-Annual Report 5
<PAGE>
GLOBAL FIXED INCOME FUND
Country Allocation
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Sweden 2%
France 4%
Greece 4%
New Zealand 6%
United Kingdom 7%
Germany 35%
U.S. 42%
Credit Quality
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AAA 88%
AA 3%
A 5%
BBB 4%
FOREIGN CURRENCY EXPOSURE FULLY
HEDGED TO THE U.S. DOLLAR
April 30, 1999 October 31, 1998
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Net Assets $537,863,000 $524,650,000
Number of Issues 33 26
Average Maturity 7.4 years 8.8 years
SEC Yield 4.13% 4.50%
EMERGING MARKETS BOND FUND
Country Allocation
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Poland 4%
Russia 6%
Venezuela 10%
Other 11%
Argentina 17%
Mexico 19%
Brazil 33%
Maturity Composition
- --------------------
Brazil 13.7 years
Argentina 9.1 years
Mexico 11.3 years
Venezuela 11.0 years
Russia 14.8 years
Poland 10.0 years
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $ 10,672,000 Fund not in operation
Number of Issues 28
Average Maturity 12.0 years
SEC Yield 10.05%
6 Payden & Rygel Investment Group
<PAGE>
GLOBAL BALANCED FUND
Country Allocation
- ------------------
Italy 4%
Switzerland 4%
France 8%
Other 11%
Germany 12%
United Kingdom 16%
U.S. 45%
EQUITIES 59%
BONDS 26%
CASH 15%
Top Equity Holdings
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Yields (%)
Wal-Mart Stores, Inc. 2.2
Home Depot, Inc. 2.1
Banco de Galicia y Buenos Aires 2.0
Bristol Myers Squibb 2.0
General Electric Co. 2.0
Tandy Corporation 1.9
Tyco International Ltd. 1.7
Dixons 1.4
United Bank of Switzerland 1.3
Nokia Oyj 1.3
FOREIGN CURRENCY EXPOSURE
HEDGED 7% TO THE U.S. DOLLAR
April 30, 1999 October 31, 1998
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Net Assets $8,048,000 $7,078,000
Number of Issues 73 73
Number of Countries 15 15
Average Market Cap (Equities) $24.3 billion $42.5 billion
INTERNATIONAL EQUITY FUND
Country Allocation
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Australia 6%
France 28%
United Kingdom 26%
Japan 18%
Germany 22%
April 30, 1999 October 31, 1998
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Net Assets $ 6,170,000 $ 18,323,000
Number of Countries 5 11
Semi-Annual Report 7
<PAGE>
EUROPEAN GROWTH & INCOME FUND
Country Allocation
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Spain 3%
Netherlands 3%
Ireland 3%
Belgium 4%
Portugal 5%
Italy 5%
Other 6%
Switzerland 8%
France 20%
Germany 21%
United Kingdom 22%
Top 5 Industries
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Consumer 28%
Cyclicals
Finance 22%
Industrial 22%
Basic Industries 8%
Consumer 7%
Non-Cyclicals
April 30, 1999 October 31, 1998
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Net Assets $ 38,383,000 $ 39,529,000
Number of Issues 61 74
Number of Industries 9 4
Average Market Cap $11.4 billion $18.2 billion
EURODIRECT FUND
Country Allocation
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Germany 18%
France 24%
Euro Bonds 25%
United Kingdom 33%
Equity Exposure
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FTSE 100 Index 32%
CAC 40 Future 32%
Dax Index Future 23%
Gilt Future 13%
EQUITY EXPOSURE 36%
BOND EXPOSURE 61%
CASH 3%
April 30, 1999 October 31, 1998
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Net Assets $ 10,463,000 Fund not in operation
Average Maturity 0.9 years
SEC Yield 4.00%
8 Payden & Rygel Investment Group
<PAGE>
GROWTH AND INCOME FUND
Top Dividend Yields
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Yields (%)
Philip Morris 5.0%
J.P. Morgan 2.9%
Minnesota Mining & Manufacturing 2.5%
Chevron 2.4%
Eastman Kodak 2.4%
Best Total Return 10/31/98 - 4/30/99
- ------------------------------------
Total Return (%)
J.P. Morgan 45.5%
Caterpillar 44.9%
General Motors 42.8%
Union Carbide 36.1%
Chevron 24.3%
April 30, 1999 October 31, 1998
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Net Assets $287,825,000 $250,553,000
Number of Issues 16 16
Gross Dividend Yield* 2.40% 2.42%
Dividends Yield/S&P 500** 0.96% 1.49%
*Prior to fund expenses
**Source: Barrons
MARKET RETURN FUND
Portfolio Composition
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S&P Depositary Receipts 2%
Commercial Paper 9%
Treasury/Agency 12%
Asset Backed 24%
Corporate 26%
Mortgage Backed 27%
Equity Exposure
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S&P Futures 98%
S&P Depositary
Receipts 2%
April 30, 1999 October 31, 1998
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Net Assets $ 62,499,000 $ 43,390,000
Number of Issues 40 46
Average Maturity 1.9 years 2.1 years
SEC Yield 5.45% 5.78%
Semi-Annual Report 9
<PAGE>
SMALL CAP VALUE STOCK FUND
Largest Holdings
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Danaher Corp. 4.0%
Hasbro, Inc. 3.6%
Hertz Corp. 3.0%
Reinsurance Group of America 2.9%
Duke Realty Investments 2.8%
Ensco International Inc. 2.7%
Major Sectors
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Consumer 25%
Cyclicals
Financials 19%
Technology 15%
Basic Industries 11%
April 30, 1999 October 31, 1998
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Net Assets $ 21,665,000 $ 23,544,000
Number of Issues 81 81
Number of Sectors 9 11
SMALL CAP GROWTH STOCK FUND
Largest Holdings
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Health Management Assoc. 6.3%
Abercrombie & Fitch 6.2%
Alterna Corp. 4.9%
Century Telephone 4.6%
Danaher Corp. 4.4%
Devry 3.7%
Major Sectors
- -------------
Consumer 23%
Cyclicals
Technology 20%
Capital Goods 16%
Basic Industries 15%
April 30, 1999 October 31, 1998
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Net Assets $ 2,797,000 $ 2,384,000
Number of Issues 59 53
Number of Sectors 10 11
10 Payden & Rygel Investment Group
<PAGE>
LIMITED MATURITY FUND
Portfolio Composition
- ---------------------
Treasury/Agency 6%
Asset Backed 23%
Mortgage Backed 23%
Corporate 48%
Credit Quality
- --------------
AAA 53%
AA 15%
A 6%
BBB 26%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $ 81,758,000 $117,042,000
Number of Issues 22 27
Average Maturity 0.9 years 0.9 years
SEC Yield 5.17% 5.64%
SHORT BOND FUND
Portfolio Composition
- ---------------------
Commercial Paper 4%
Treasury/Agency 24%
Mortgage Backed 21%
Corporate 51%
Credit Quality
- --------------
AAA 48%
AA 3%
A 24%
BBB 25%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $106,769,000 $108,661,000
Number of Issues 33 39
Average Maturity 2.5 years 3.0 years
SEC Yield 5.36% 5.38%
Semi-Annual Report 11
<PAGE>
U.S. GOVERNMENT FUND
Portfolio Composition
- ---------------------
Supranational 7%
Treasury/Agency 38%
Mortgage Backed 55%
Credit Quality
- --------------
AAA 100%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $ 75,830,000 $ 71,855,000
Number of Issues 22 25
Average Maturity 3.0 years 3.7 years
SEC Yield 5.38% 5.10%
INVESTMENT QUALITY BOND FUND
Portfolio Composition
- ---------------------
Commercial Paper 9%
Asset Backed 9%
Treasury/Agency 17%
Mortgage Backed 22%
Corporate 43%
Credit Quality
- --------------
AAA 44%
AA 11%
A 24%
BBB 21%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $253,910,000 $173,974,000
Number of Issues 56 56
Average Maturity 5.8 years 6.7 years
SEC Yield 5.81% 6.34%
12 Payden & Rygel Investment Group
<PAGE>
TOTAL RETURN FUND
Portfolio Composition
- ---------------------
Asset Backed 10%
Commercial Paper 10%
Treasury 23%
Mortgage Backed 26%
Corporate 31%
Credit Quality
- --------------
AAA 57%
AA 9%
A 14%
BBB 9%
BB 11%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $184,386,000 $174,612,000
Number of Issues 54 53
Average Maturity 5.4 years 6.7 years
SEC Yield 5.60% 6.14%
HIGH INCOME FUND
Portfolio Composition
- ---------------------
Foreign Government Bonds 1%
Asset Backed 3%
Preferred Stock 4%
Corporate 92%
Credit Quality
- --------------
AAA 5%
A 3%
BBB 2%
BB 40%
B 50%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $123,767,000 $ 91,669,000
Number of Issues 101 76
Average Maturity 6.4 years 6.8 years
SEC Yield 7.99% 9.08%
Semi-Annual Report 13
<PAGE>
BUNKER HILL MONEY MARKET FUND
Portfolio Composition
- ---------------------
Mortgage Backed 4%
Asset Backed 6%
Cash Equivalent 9%
Commercial Paper 81%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $ 25,899,000 $ 26,455,000
Number of Issues 17 21
Average Maturity 47 days 66 days
30-Day Yield 4.24% 4.97%
SHORT DURATION TAX EXEMPT FUND
Portfolio Composition
- ---------------------
Cash Equivalent 4%
Pre-Refunded Bonds 8%
General Obligation Bonds 13%
Revenue Bonds 30%
Insured Bonds 45%
Credit Quality
- --------------
AAA 58%
AA 11%
A 13%
BBB 18%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $ 16,177,000 $ 16,825,000
Number of Issues 27 18
Average Maturity 2.4 years 2.4 years
SEC Yield 3.21% 3.35%
14 Payden & Rygel Investment Group
<PAGE>
TAX EXEMPT BOND FUND
Portfolio Composition
- ---------------------
Cash Equivalent 1%
Pre-Refunded Bonds 8%
General Obligation Bonds 18%
Revenue Bonds 28%
Insured Bonds 45%
Credit Quality
- --------------
AAA 63%
AA 19%
A 8%
BBB 10%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $ 62,305,000 $ 67,889,000
Number of Issues 52 54
Average Maturity 6.8 years 7.6 years
SEC Yield 3.68% 3.53%
CALIFORNIA MUNICIPAL INCOME FUND
Portfolio Composition
- ---------------------
Cash Equivalent 1%
Pre-Refunded Bonds 6%
General Obligation Bonds 9%
Revenue Bonds 25%
Insured Bonds 59%
Credit Quality
- --------------
AAA 66%
AA 10%
A 5%
BBB 19%
April 30, 1999 October 31, 1998
-------------- ----------------
Net Assets $ 28,040,000 Fund not in operation
Number of Issues 45
Average Maturity 8.1 years
SEC Yield 3.61%
Semi-Annual Report 15
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Global Global Emerging Global
Short Bond Fixed Income Markets Bond Balanced
Fund Fund Fund Fund
============ ============ ============ ==========
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value*... $248,889,044 $516,860,434 $ 7,899,645 $6,812,509
Foreign cash............. 3,750 11,515 7,756
Cash..................... 1,070,389 3,715,328 2,170,671 1,185,212
Receivable for:
Interest and dividends.. 4,410,453 10,037,312 160,867 64,378
Investments sold........ 36,729,562 441,445
Fund shares sold........ 98,084
Futures and options
contracts.............. 7,656
Forward currency
contracts.............. 2,646,256 6,144,476
Paydowns................
Unamortized organization
costs (Note 4).......... 263 827
Deferred expense subsidy
(Note 5)................ 336,997 13,223 189,180
Other assets............. 27,711 55,047 8,494 2,576
------------ ------------ ----------- ----------
Total Assets.......... 257,384,863 573,651,758 10,702,001 8,262,438
------------ ------------ ----------- ----------
LIABILITIES:
Payable for:
Forward currency
contracts.............. 1,753,226 686,933 2,822
Investments purchased... 34,770,118
Fund shares redeemed....
Futures and options
contracts.............. 21,040 10,434
Swap contracts..........
Dollar rolls............
Distributions payable....
Accrued expenses:
Investment advisory
fees................... 398,169 133,000 11,145 183,830
Administration fees..... 12,080 26,600 502 394
Other expenses.......... 69,205 151,314 18,416 16,559
------------ ------------ ----------- ----------
Total Liabilities..... 2,232,680 35,789,005 30,063 214,039
------------ ------------ ----------- ----------
NET ASSETS............ $255,152,183 $537,862,753 $10,671,938 $8,048,399
============ ============ =========== ==========
NET ASSETS:
Paid in capital.......... $260,092,055 $530,833,266 $ 9,715,250 $6,538,405
Undistributed net
investment income....... (3,600,349) (9,624,969) 157,211 72,799
Accumulated distributions
in excess of net
investment income.......
Accumulated net realized
gains (losses) from
investments............. 380,528 12,595,401 70,427 230,463
Net unrealized
appreciation
(depreciation) from:
Investments............. (2,577,400) (762,467) 729,050 1,210,364
Translation of assets
and liabilities in
foreign currencies..... 857,349 4,821,522 (3,632)
------------ ------------ ----------- ----------
NET ASSETS............ $255,152,183 $537,862,753 $10,671,938 $8,048,399
============ ============ =========== ==========
Outstanding shares of
beneficial interest.... 25,810,428 51,933,687 972,394 700,656
============ ============ =========== ==========
NET ASSET VALUE --
offering and
redemption price per
share.................. $ 9.89 $ 10.36 $ 10.97 $ 11.49
============ ============ =========== ==========
- --------
* Investments, at cost... $251,466,444 $518,798,773 $ 7,167,910 $5,705,356
</TABLE>
See notes to financial statements.
16 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
International European Growth & Market Small Cap Small Cap
Equity Growth & EuroDirect Income Return Value Stock Growth Stock
Fund Income Fund Fund Fund Fund Fund Fund
============= =========== =========== ============ =========== =========== ============
<S> <C> <C> <C> <C> <C> <C>
$3,701,071 $35,673,256 $10,290,507 $284,266,325 $60,992,277 $18,649,589 $2,542,877
18,086 2,106,268
2,418,523 440,175 561,400 3,480,839 1,593,913 3,048,639 254,679
26,205 178,782 116,679 451,379 7,796 599
9,960 137,948
25,632 20,652 35,757
774 1,928 1,933 3,694 3,694
155,171 202,778 7,102 166,821 290,182 41,273 70,161
2,850 2,293 10,877 21,654 5,128 4,946 3,533
---------- ----------- ----------- ------------ ----------- ----------- ----------
6,348,312 38,636,092 10,905,643 288,192,199 63,332,879 21,755,937 2,875,543
---------- ----------- ----------- ------------ ----------- ----------- ----------
421,129
508,000 27,500
154,657 219,852 5,927 289,674 299,664 47,575 67,159
529 1,942 511 13,740 3,025 1,037 132
23,269 30,970 15,115 63,411 22,733 14,492 11,113
---------- ----------- ----------- ------------ ----------- ----------- ----------
178,455 252,764 442,682 366,825 833,422 90,604 78,404
---------- ----------- ----------- ------------ ----------- ----------- ----------
$6,169,857 $38,383,328 $10,462,961 $287,825,374 $62,499,457 $21,665,333 $2,797,139
========== =========== =========== ============ =========== =========== ==========
$4,592,661 $36,872,664 $10,011,362 $209,687,287 $54,108,560 $24,746,634 $2,735,722
19,275 96,925 135,616 21,682 62,990 50,015 449
1,393,386 (751,444) 357,392 3,985,541 6,204,816 (2,248,549) (213,069)
165,143 2,207,371 379,720 74,130,864 2,123,091 (882,767) 274,037
(608) (42,188) (421,129)
---------- ----------- ----------- ------------ ----------- ----------- ----------
$6,169,857 $38,383,328 $10,462,961 $287,825,374 $62,499,457 $21,665,333 $2,797,139
========== =========== =========== ============ =========== =========== ==========
525,675 3,166,984 996,718 17,167,374 4,160,839 2,116,940 258,786
========== =========== =========== ============ =========== =========== ==========
$ 11.74 $ 12.12 $ 10.50 $ 16.77 $ 15.02 $ 10.23 $ 10.81
========== =========== =========== ============ =========== =========== ==========
$3,700,488 $33,586,859 $10,290,507 $210,135,461 $60,918,224 $19,653,085 $2,268,840
</TABLE>
See notes to financial statements.
Semi-Annual Report 17
<PAGE>
Statements of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Limited Short U.S. Investment
Maturity Bond Government Quality Bond
Fund Fund Fund Fund
=========== ============ =========== ============
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value*.. $80,884,209 $114,949,172 $90,353,341 $291,148,270
Foreign cash............
Cash.................... 334,748 2,384,686 1,953,913 1,552,200
Receivable for:
Interest and
dividends............. 575,798 1,690,892 627,422 3,741,489
Investments sold....... 15,178,021
Fund shares sold.......
Futures and options
contracts.............
Forward currency
contracts.............
Paydowns............... 21,464
Unamortized organization
costs (Note 4).........
Deferred expense subsidy
(Note 5)............... 837,154 537,136 308,022 413,510
Other assets............ 18,198 11,723 9,892 16,274
----------- ------------ ----------- ------------
Total Assets.......... 82,650,107 119,573,609 108,430,611 296,893,207
----------- ------------ ----------- ------------
LIABILITIES:
Payable for:
Forward currency
contracts.............
Investments purchased.. 12,186,812 32,243,868 41,858,765
Fund shares redeemed...
Futures and options
contracts............. 20,813 531,406
Swap contracts......... 28,612
Dollar rolls........... 8,137 11,628
Distributions payable...
Accrued expenses:
Investment advisory
fees.................. 852,044 553,569 317,832 480,139
Administration fees.... 4,840 5,254 3,740 12,466
Other expenses......... 35,595 29,687 23,903 71,322
----------- ------------ ----------- ------------
Total Liabilities..... 892,479 12,804,272 32,600,971 42,982,710
----------- ------------ ----------- ------------
NET ASSETS............ $81,757,628 $106,769,337 $75,829,640 $253,910,497
=========== ============ =========== ============
NET ASSETS:
Paid in capital......... $81,710,129 $107,188,989 $76,062,996 $255,854,417
Undistributed net
investment income...... 177,704 230,421 76,718 480,944
Accumulated
distributions in excess
of net investment
income.................
Accumulated net realized
gains (losses) from
investments............ (364,758) (673,958) (84,942) (554,124)
Net unrealized
appreciation
(depreciation) from:
Investments............ 234,553 23,885 (225,132) (1,870,740)
Translation of assets
and liabilities in
foreign currencies....
----------- ------------ ----------- ------------
NET ASSETS............ $81,757,628 $106,769,337 $75,829,640 $253,910,497
=========== ============ =========== ============
Outstanding shares of
beneficial interest.... 8,143,031 10,829,956 7,126,663 25,686,084
=========== ============ =========== ============
NET ASSET VALUE --
offering and
redemption price per
share.................. $ 10.04 $ 9.86 $ 10.64 $ 9.89
=========== ============ =========== ============
- --------
* Investments, at cost.. $80,649,656 $114,904,474 $90,578,473 $292,856,212
</TABLE>
See notes to financial statements.
18 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Total High Bunker Hill Short Duration Tax Exempt California
Return Income Money Market Tax Exempt Bond Municipal
Fund Fund Fund Fund Fund Income Fund
============ ============ ============ ============== =========== ===========
<S> <C> <C> <C> <C> <C>
$208,746,440 $114,633,475 $25,759,879 $16,394,399 $61,321,568 $27,591,090
906,753 6,589,145 145,697 90,636 71,885 94,716
3,017,632 2,635,044 141,099 237,153 944,008 376,535
1,704,628
10,732
662 348 356
125,820 111,864 329,676 416,745 4,233
9,699 4,884 8,782 3,175 6,177 352
------------ ------------ ----------- ----------- ----------- -----------
212,817,738 125,567,524 26,167,677 17,055,039 62,760,383 28,066,926
------------ ------------ ----------- ----------- ----------- -----------
27,601,153 1,722,373 530,176
580,906
19,713
140,135
171,676 33,736 103,108 333,056 428,977 6,805
9,223 5,574 1,480 808 3,173 1,362
48,641 38,447 23,529 13,938 23,714 18,980
------------ ------------ ----------- ----------- ----------- -----------
28,431,312 1,800,130 268,252 877,978 455,864 27,147
------------ ------------ ----------- ----------- ----------- -----------
$184,386,426 $123,767,394 $25,899,425 $16,177,061 $62,304,519 $28,039,779
============ ============ =========== =========== =========== ===========
$184,231,666 $124,463,711 $25,899,425 $15,989,389 $61,095,017 $28,127,391
(1,069,954) 1,107,511 11,809 50,958 19,896
1,581,277 (1,608,627) 43,672 (626,256) (19,327)
(356,563) (195,201) 132,191 1,784,800 (88,181)
------------ ------------ ----------- ----------- ----------- -----------
$184,386,426 $123,767,394 $25,899,425 $16,177,061 $62,304,519 $28,039,779
============ ============ =========== =========== =========== ===========
18,105,140 12,115,910 25,899,425 1,618,389 6,314,278 2,797,950
============ ============ =========== =========== =========== ===========
$ 10.18 $ 10.22 $ 1.00 $ 10.00 $ 9.87 $ 10.02
============ ============ =========== =========== =========== ===========
$210,024,917 $114,828,676 $25,759,879 $16,262,208 $59,536,768 $27,679,271
</TABLE>
See notes to financial statements.
Semi-Annual Report 19
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
Period ended April 30, 1999
<TABLE>
<CAPTION>
Global Global Emerging Global
Short Bond Fixed Income Markets Bond Balanced
Fund Fund Fund(a) Fund
=========== ============ ============ ========
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.............. $ 5,297,337 $ 12,987,812 $ 322,109 $ 90,729
Dividend income.............. 20,916
Foreign tax withholdings..... (1,753)
----------- ------------ ----------- --------
Investment Income........... 5,297,337 12,987,812 322,109 109,892
----------- ------------ ----------- --------
EXPENSES:
Investment advisory fees
(Note 5).................... 358,956 790,101 14,198 19,035
Administration fees (Note
5).......................... 71,791 158,020 1,893 2,284
Custodian fees............... 49,205 102,167 4,281 7,326
Transfer agent fees (Note
5).......................... 16,794 35,948 5,064 5,661
Registration and filing
fees........................ (9,612) (3,698) 7,829 7,473
Professional fees............ 1,565 3,618 41 75
Trustees' fees and expenses.. 8,292 18,515 239 330
Printing costs............... 23,103 58,320 1,878 1,262
Organization expenses (Note
4).......................... 339 3,179 672
Legal fees................... 3,215 7,852 115 2,433
Accounting fees.............. 35,723 79,729 3,362 4,114
Insurance.................... 6,407 11,517 232
Audit fees................... 14,531 22,805 9,832 12,926
Other expenses............... 15,923 41,634 678 3,181
Expenses previously deferred
(Note 5).................... 1,169
Waived advisory fee (Note
5).......................... (14,198)
Expense subsidy (Note 5)..... (13,223) (40,326)
----------- ------------ ----------- --------
Net Expenses................ 597,401 1,326,528 25,168 26,678
----------- ------------ ----------- --------
Net Investment Income...... 4,699,936 11,661,284 296,941 83,214
----------- ------------ ----------- --------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Net realized gains (losses)
from:
Investments................. (1,286,317) (1,421,324) 74,303 7,801
Foreign currency
transactions............... 6,242,760 11,152,628 (71,243)
Swap contracts .............
Futures contracts........... (1,099,674) (3,876) 178,143
Options contracts...........
Change in net unrealized
appreciation (depreciation)
from:
Investments................. (4,928,641) (18,046,668) 731,735 571,707
Translation of assets and
liabilities in foreign
currencies................. 741,732 9,001,338 70,376
Swap contracts..............
Futures contracts........... 619,177 (2,685) 74,995
Options contracts...........
----------- ------------ ----------- --------
Net Realized and Unrealized
Gains (Losses)............ 769,534 205,477 799,477 831,779
----------- ------------ ----------- --------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS... $ 5,469,470 $ 11,866,761 $ 1,096,418 $914,993
=========== ============ =========== ========
</TABLE>
- --------
(a) The Fund commenced operations on December 17, 1998.
See notes to financial statements.
20 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
International European Growth & Market Small Cap Small Cap
Equity Growth & EuroDirect Income Return Value Stock Growth Stock
Fund Income Fund Fund(a) Fund Fund Fund Fund
============= =========== ========== =========== =========== =========== ============
<S> <C> <C> <C> <C> <C> <C>
$ 58,519 $ 42,197 $ 163,344 $ 221,729 $ 1,489,784 $ 112,730 $ 3,635
45,628 259,509 2,454,521 88,558 6,484
(5,108) (27,019)
----------- ----------- --------- ----------- ----------- ---------- ----------
99,039 274,687 163,344 2,676,250 1,489,784 201,288 10,119
----------- ----------- --------- ----------- ----------- ---------- ----------
42,258 98,915 21,260 665,249 72,462 68,691 7,785
4,226 11,870 1,962 79,830 15,528 6,869 778
19,222 14,155 2,424 11,603 6,707 1,175 2,586
6,266 17,989 4,990 105,263 9,652 6,881 5,365
7,097 4,079 8,392 3,387 7,223 4,286 5,930
137 245 43 2,242 407 198 23
712 1,453 252 11,031 2,105 1,063 101
2,587 12,946 (448) 28,347 5,273 2,588 244
628 820 3,179 1,893 1,347 1,097 1,097
6,104 12,459 121 3,840 739 355 36
5,402 8,633 3,404 43,211 10,221 6,542 3,362
498 623 5,647 845 471 85
10,114 10,473 9,831 12,832 9,098 8,712 8,328
2,806 4,344 680 6,000 2,337 553 97
17,256
(21,260)
(44,670) (21,290) (7,102) (28,163) (17,939) (25,430)
----------- ----------- --------- ----------- ----------- ---------- ----------
63,387 177,714 27,728 997,631 115,781 91,542 10,387
----------- ----------- --------- ----------- ----------- ---------- ----------
35,652 96,973 135,616 1,678,619 1,374,003 109,746 (268)
----------- ----------- --------- ----------- ----------- ---------- ----------
2,410,576 (891,086) 30 3,985,588 (253,159) 250,060 (56,631)
(30,651) (145,548)
135,433 363,299 357,362 10,465,094 801,922
13,600
(1,149,084) 6,902,747 41,621,658 481,486 1,630,246 499,727
(2,642) (2,802,406) (421,129)
184,980 120,974 379,720 (1,958,046) (321,184)
----------- ----------- --------- ----------- ----------- ---------- ----------
1,548,612 3,547,980 315,983 45,607,246 8,735,375 2,374,644 443,096
----------- ----------- --------- ----------- ----------- ---------- ----------
$ 1,584,264 $ 3,644,953 $ 451,599 $47,285,865 $10,109,378 $2,484,390 $ 442,828
=========== =========== ========= =========== =========== ========== ==========
</TABLE>
See notes to financial statements.
Semi-Annual Report 21
<PAGE>
Statements of Operations (Continued)
- --------------------------------------------------------------------------------
Period ended April 30, 1999
<TABLE>
<CAPTION>
Limited Short U.S. Investment
Maturity Bond Government Quality Bond
Fund Fund Fund Fund
========== =========== =========== ============
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............. $3,029,690 $ 2,905,884 $ 2,063,997 $ 7,352,775
Dividend income.............
Foreign tax withholdings....
---------- ----------- ----------- -----------
Investment Income.......... 3,029,690 2,905,884 2,063,997 7,352,775
---------- ----------- ----------- -----------
EXPENSES:
Investment advisory fees
(Note 5)................... 149,064 137,025 100,890 320,004
Administration fees (Note
5)......................... 31,942 29,363 21,619 68,572
Custodian fees.............. 6,493 7,141 6,141 12,937
Transfer agent fees (Note
5)......................... 13,560 10,503 9,324 17,033
Registration and filing
fees....................... 7,073 2,493 1,543 15,388
Professional fees........... 859 488 503 1,951
Trustees' fees and
expenses................... 3,812 4,626 2,601 8,611
Printing costs.............. 10,169 9,327 7,270 24,269
Organization expenses (Note
4).........................
Legal fees.................. 1,488 1,298 1,003 3,546
Accounting fees............. 18,226 17,733 13,016 35,433
Insurance................... 3,584 2,445 1,632 3,072
Audit fees.................. 10,467 10,121 9,633 11,756
Other expenses.............. 14,095 10,099 7,882 16,624
Expenses previously deferred
(Note 5)................... 30,992
Waived advisory fee (Note
5).........................
Expense subsidy (Note 5).... (77,010) (47,537) (39,209)
---------- ----------- ----------- -----------
Net Expenses............... 193,822 195,125 143,849 570,188
---------- ----------- ----------- -----------
Net Investment Income..... 2,835,868 2,710,759 1,920,148 6,782,587
---------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains (losses)
from:
Investments................ (201,021) 1,360 5,737 2,427,214
Foreign currency
transactions..............
Swap contracts.............
Futures contracts.......... (256,500) (116,044) (3,087,482)
Options contracts..........
Change in net unrealized
appreciation (depreciation)
from:
Investments................ (129,040) (865,505) (1,275,956) (4,349,963)
Translation of assets and
liabilities in foreign
currencies................
Swap contracts............. 15,287
Futures contracts.......... 107,287 25,463 (825,844)
Options contracts.......... 754,000
---------- ----------- ----------- -----------
Net Realized and
Unrealized Gains
(Losses)................. (330,061) (1,013,358) (1,360,800) (5,066,788)
---------- ----------- ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS.. $2,505,807 $ 1,697,401 $ 559,348 $ 1,715,799
========== =========== =========== ===========
</TABLE>
- --------
(a) The Fund commenced operations on December 17, 1998.
See notes to financial statements.
22 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Total High Bunker Hill Short Duration Tax Exempt California
Return Income Money Market Tax Exempt Bond Municipal
Fund Fund Fund Fund Fund Bond Fund(a)
=========== ========== ============ ============== ========== ============
<S> <C> <C> <C> <C> <C>
$ 5,813,294 $4,325,567 $1,457,527 $ 336,534 $1,529,234 $ 248,745
----------- ---------- ---------- ----------- ---------- -----------
5,813,294 4,325,567 1,457,527 336,534 1,529,234 248,745
----------- ---------- ---------- ----------- ---------- -----------
253,504 177,315 43,414 25,656 107,318 20,585
54,322 30,397 17,366 4,810 20,122 3,860
11,055 4,525 3,843 1,999 4,229 2,046
14,113 10,763 18,035 6,265 9,054 4,859
7,605 5,395 19,320 6,149 8,518 8,124
872 432 263 151 550 43
5,461 3,060 1,262 690 2,622 232
18,540 9,816 3,427 1,717 7,337 1,390
539 103 139 3,178
2,536 1,380 464 232 982 106
28,007 16,252 9,798 5,417 12,774 3,412
1,600 1,090 373 498 1,526
10,955 9,877 8,677 8,624 9,575 8,400
5,494 1,967 814 3,942 9,794 675
36,082 24,969
(20,585)
(40,503) (26,036) (26,857) (4,233)
----------- ---------- ---------- ----------- ---------- -----------
450,685 297,341 86,692 40,114 167,544 32,092
----------- ---------- ---------- ----------- ---------- -----------
5,362,609 4,028,226 1,370,835 296,420 1,361,690 216,653
----------- ---------- ---------- ----------- ---------- -----------
1,931,495 (541,639) (1,318) 43,684 594,206 372
(1,725,805) 91,804 (19,699)
(1,379,991) 4,703,177 (74,335) (1,042,692) (88,181)
901,324
(767,172)
754,000
----------- ---------- ---------- ----------- ---------- -----------
(286,149) 4,161,538 (1,318) (30,651) (356,682) (107,508)
----------- ---------- ---------- ----------- ---------- -----------
$ 5,076,460 $8,189,764 $1,369,517 $ 265,769 $1,005,008 $ 109,145
=========== ========== ========== =========== ========== ===========
</TABLE>
See notes to financial statements.
Semi-Annual Report 23
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Short Bond
Fund
==========================
Period ended Year ended
April 30, October 31,
1999 1998
============ ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.............................. $ 4,699,936 $ 11,869,557
Net realized gains (losses)........................ 4,956,443 7,398,243
Change in net unrealized appreciation
(depreciation).................................... (4,186,909) 1,271,604
------------ ------------
Change in Net Assets Resulting from Operations.... 5,469,470 20,539,404
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. (15,398,468) (16,746,627)
In excess of net investment income.................
Net realized gains from investments................
In excess of net realized gains from investments ..
Return of capital..................................
------------ ------------
Change in Net Assets from Distributions to
Shareholders..................................... (15,398,468) (16,746,627)
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold..................... 34,174,788 160,907,104
Reinvestment of distributions...................... 14,223,192 15,667,434
Cost of fund shares redeemed....................... (34,925,949) (149,623,338)
------------ ------------
Change in Net Assets from Capital Transactions.... 13,472,031 26,951,200
------------ ------------
Total Change in Net Assets....................... 3,543,033 30,743,977
NET ASSETS:
Beginning of period................................ 251,609,150 220,865,173
------------ ------------
End of period...................................... $255,152,183 $251,609,150
============ ============
Undistributed net investment income................ $ (3,600,349) $ 7,098,183
============ ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period.......... 24,412,663 21,726,743
------------ ------------
Shares sold........................................ 3,422,385 15,741,129
Shares issued in reinvestment of distributions..... 1,425,482 1,541,064
Shares redeemed.................................... (3,450,102) (14,596,273)
------------ ------------
Change in shares outstanding....................... 1,397,765 2,685,920
------------ ------------
Outstanding shares at end of period................ 25,810,428 24,412,663
============ ============
</TABLE>
- --------
(a) The Fund commenced operations on December 17, 1998.
(b) The Fund commenced operations on December 30, 1997.
(c) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
24 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Global Fixed Income Emerging Markets Global Balanced
Fund Bond Fund Fund
============================ ================ ===========================
Period ended Year ended Period ended Period ended Year ended
April 30, October 31, April 30, April 30, October 31,
1999 1998 1999(a) 1999 1998
============ ============= ================ ============ ===========
<S> <C> <C> <C> <C>
$ 11,661,284 $ 26,635,762 $ 296,941 $ 83,214 $ 287,728
8,631,630 20,449,089 70,427 114,701 476,456
(8,426,153) 11,221,797 729,050 717,078 94,972
------------ ------------- ------------- ---------- -----------
11,866,761 58,306,648 1,096,418 914,993 859,156
------------ ------------- ------------- ---------- -----------
(22,736,691) (20,851,285) (139,730) (25,727) (152,943)
(16,164,432) (449,810) (490,802)
------------ ------------- ------------- ---------- -----------
(38,901,123) (20,851,285) (139,730) (475,537) (643,745)
------------ ------------- ------------- ---------- -----------
94,665,189 220,982,932 9,715,260 183,234 1,054,022
32,789,371 17,044,782 475,434 630,824
(87,206,997) (286,477,747) (10) (127,573) (5,134,779)
------------ ------------- ------------- ---------- -----------
40,247,563 (48,450,033) 9,715,250 531,095 (3,449,933)
------------ ------------- ------------- ---------- -----------
13,213,201 (10,994,670) 10,671,938 970,551 (3,234,522)
524,649,552 535,644,222 -- 7,077,848 10,312,370
------------ ------------- ------------- ---------- -----------
$537,862,753 $ 524,649,552 $ 10,671,938 $8,048,399 $ 7,077,848
============ ============= ============= ========== ===========
$ (9,624,969) $ 1,450,438 $ 157,211 $ 72,799 $ 15,312
============ ============= ============= ========== ===========
48,100,341 52,744,225 -- 652,676 955,640
------------ ------------- ------------- ---------- -----------
8,976,026 20,993,302 972,395 16,363 97,127
3,109,900 1,635,751 43,099 60,560
(8,252,580) (27,272,937) (1) (11,482) (460,651)
------------ ------------- ------------- ---------- -----------
3,833,346 (4,643,884) 972,394 47,980 (302,964)
------------ ------------- ------------- ---------- -----------
51,933,687 48,100,341 972,394 700,656 652,676
============ ============= ============= ========== ===========
</TABLE>
See notes to financial statements.
Semi-Annual Report 25
<PAGE>
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity
Fund
=========================
Period ended Year ended
April 30, October 31,
1999 1998
============ ===========
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income............................... $ 35,652 $ 288,104
Net realized gains (losses)......................... 2,515,358 (1,121,281)
Change in net unrealized appreciation
(depreciation)..................................... (966,746) 673,486
------------ -----------
Change in Net Assets Resulting from Operations..... 1,584,264 (159,691)
------------ -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income............................... (185,021) (120,151)
In excess of net investment income..................
Net realized gains from investments.................
In excess of net realized gains from investments....
Return of capital...................................
------------ -----------
Change in Net Assets from Distributions to
Shareholders...................................... (185,021) (120,151)
------------ -----------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold...................... 922,315 11,555,491
Reinvestment of distributions....................... 149,511 98,213
Cost of fund shares redeemed........................ (14,624,034) (7,453,929)
------------ -----------
Change in Net Assets from Capital Transactions..... (13,552,208) 4,199,775
------------ -----------
Total Change in Net Assets........................ (12,152,965) 3,919,933
NET ASSETS:
Beginning of period................................. 18,322,822 14,402,889
------------ -----------
End of period....................................... $ 6,169,857 $18,322,822
============ ===========
Undistributed net investment income................. $ 19,275 $ 168,644
============ ===========
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period........... 1,701,830 1,339,997
------------ -----------
Shares sold......................................... 80,504 1,008,157
Shares issued in reinvestment of distributions...... 12,922 8,628
Shares redeemed..................................... (1,269,581) (654,952)
------------ -----------
Change in shares outstanding........................ (1,176,155) 361,833
------------ -----------
Outstanding shares at end of period................. 525,675 1,701,830
============ ===========
</TABLE>
- --------
(a) The Fund commenced operations on December 17, 1998.
(b) The Fund commenced operations on December 30, 1997.
(c) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
26 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
European Growth & Income EuroDirect
Fund Fund Growth & Income Fund
============================ =========== ================================
Period
Period Year ended ended April Period ended Year ended
ended April October 31, 30, April 30, October 31,
30, 1999 1998 1999(a) 1999 1998
=========== =========== =========== ============ ============
<S> <C> <C> <C> <C>
$ 96,973 $ 755,076 $ 135,616 $ 1,678,619 $ 3,487,455
(673,335) 1,129,914 357,392 3,985,588 5,750,473
4,221,315 (2,047,980) (41,409) 41,621,658 18,949,308
----------- ----------- ----------- ------------ ------------
3,644,953 (162,990) 451,599 47,285,865 28,187,236
----------- ----------- ----------- ------------ ------------
(48) (571,208) (1,660,005) (3,884,882)
(1,354,410) (30,729) (5,742,181) (21,503)
----------- ----------- ----------- ------------ ------------
(1,354,458) (601,937) -- (7,402,186) (3,906,385)
----------- ----------- ----------- ------------ ------------
24,412,834 35,828,900 11,782,072 35,064,270 126,514,631
1,284,464 532,203 7,031,851 3,669,635
(29,133,137) (9,675,876) (1,770,710) (44,707,355) (54,856,053)
----------- ----------- ----------- ------------ ------------
(3,435,839) 26,685,227 10,011,362 (2,611,234) 75,328,213
----------- ----------- ----------- ------------ ------------
(1,145,344) 25,920,300 10,462,961 37,272,445 99,609,064
39,528,672 13,608,372 -- 250,552,929 150,943,865
----------- ----------- ----------- ------------ ------------
$38,383,328 $39,528,672 $10,462,961 $287,825,374 $250,552,929
=========== =========== =========== ============ ============
$ 96,925 $ -- $ 135,616 $ 21,682 $ --
=========== =========== =========== ============ ============
3,447,862 1,335,240 -- 17,334,643 11,822,224
----------- ----------- ----------- ------------ ------------
2,124,579 2,924,624 1,167,623 2,255,243 9,096,249
112,083 46,180 462,164 261,501
(2,517,540) (858,182) (170,905) (2,884,676) (3,845,331)
----------- ----------- ----------- ------------ ------------
(280,878) 2,112,622 996,718 (167,269) 5,512,419
----------- ----------- ----------- ------------ ------------
3,166,984 3,447,862 996,718 17,167,374 17,334,643
=========== =========== =========== ============ ============
</TABLE>
See notes to financial statements.
Semi-Annual Report 27
<PAGE>
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market Return Fund
==========================
Period ended Year ended
April 30, October 31,
1999 1998
============ ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.............................. $ 1,374,003 $ 1,980,105
Net realized gains (losses)........................ 10,211,935 (1,974,047)
Change in net unrealized appreciation
(depreciation).................................... (1,476,560) 4,014,660
------------ ------------
Change in Net Assets Resulting from Operations.... 10,109,378 4,020,718
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. (1,367,895) (1,919,021)
In excess of net investment income.................
Net realized gains from investments................ (2,497,257) (1,741,650)
In excess of net realized gains from investments...
Return of capital..................................
------------ ------------
Change in Net Assets from Distributions to
Shareholders..................................... (3,865,152) (3,660,671)
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold..................... 22,616,743 29,587,439
Reinvestment of distributions...................... 3,684,247 3,395,111
Cost of fund shares redeemed....................... (13,435,844) (10,148,009)
------------ ------------
Change in Net Assets from Capital Transactions.... 12,865,146 22,834,541
------------ ------------
Total Change in Net Assets...................... 19,109,372 23,194,588
NET ASSETS:
Beginning of period................................ 43,390,085 20,195,497
------------ ------------
End of period...................................... $ 62,499,457 $ 43,390,085
============ ============
Undistributed net investment income................ $ 62,990 $ 56,882
============ ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period.......... 3,260,654 1,577,496
------------ ------------
Shares sold........................................ 1,569,699 2,185,139
Shares issued in reinvestment of distribution...... 259,462 267,883
Shares redeemed.................................... (928,976) (769,864)
------------ ------------
Change in shares outstanding....................... 900,185 1,683,158
------------ ------------
Outstanding shares at end of period................ 4,160,839 3,260,654
============ ============
</TABLE>
- --------
(a) The Fund commenced operations on December 17, 1998.
(b) The Fund commenced operations on December 30, 1997.
(c) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
28 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Small Cap Value Stock Small Cap Growth Stock
Fund Fund Limited Maturity Fund
========================== ========================= ============================
Period
Period ended ended Period ended Period ended Period ended Year ended
April 30, October 31, April 30, October 31, April 30, October 31,
1999 1998(b) 1999 1998(b) 1999 1998
============ =========== ============ ============ ============= =============
<S> <C> <C> <C> <C> <C>
$ 109,746 $ 170,314 $ (268) $ 10,073 $ 2,835,868 $ 8,048,187
1,065,582 (3,314,131) (56,631) (156,438) (201,021) (30,669)
1,309,062 (2,191,829) 499,727 (225,690) (129,040) 191,381
----------- ----------- ---------- ---------- ------------- -------------
2,484,390 (5,335,646) 442,828 (372,055) 2,505,807 8,208,899
----------- ----------- ---------- ---------- ------------- -------------
(133,301) (96,744) (9,356) (2,795,919) (7,957,063)
----------- ----------- ---------- ---------- ------------- -------------
(133,301) (96,744) -- (9,356) (2,795,919) (7,957,063)
----------- ----------- ---------- ---------- ------------- -------------
2,037,487 29,506,755 358,564 3,411,739 70,930,987 204,353,480
102,388 76,937 7,540 2,792,719 7,326,830
(6,369,547) (607,386) (388,547) (653,574) (108,717,760) (247,319,408)
----------- ----------- ---------- ---------- ------------- -------------
(4,229,672) 28,976,306 (29,983) 2,765,705 (34,994,054) (35,639,098)
----------- ----------- ---------- ---------- ------------- -------------
(1,878,583) 23,543,916 412,845 2,384,294 (35,284,166) (35,387,262)
23,543,916 -- 2,384,294 -- 117,041,794 152,429,056
----------- ----------- ---------- ---------- ------------- -------------
$21,665,333 $23,543,916 $2,797,139 $2,384,294 $ 81,757,628 $ 117,041,794
=========== =========== ========== ========== ============= =============
$ 50,015 $ 73,570 $ 449 $ 717 $ 177,704 $ 137,755
=========== =========== ========== ========== ============= =============
2,536,685 -- 261,661 -- 11,608,466 15,153,628
----------- ----------- ---------- ---------- ------------- -------------
209,123 2,597,818 36,978 339,066 7,047,065 20,275,080
10,147 6,925 726 277,817 728,544
(639,015) (68,058) (39,853) (78,131) (10,790,317) (24,548,786)
----------- ----------- ---------- ---------- ------------- -------------
(419,745) 2,536,685 (2,875) 261,661 (3,465,435) (3,545,162)
----------- ----------- ---------- ---------- ------------- -------------
2,116,940 2,536,685 258,786 261,661 8,143,031 11,608,466
=========== =========== ========== ========== ============= =============
</TABLE>
See notes to financial statements.
Semi-Annual Report 29
<PAGE>
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short Bond Fund
==========================
Period ended Year ended
April 30, October 31,
1999 1998
============ ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.............................. $ 2,710,759 $ 6,160,534
Net realized gains (losses)........................ (255,140) (179,639)
Change in net unrealized appreciation
(depreciation).................................... (758,218) 587,761
------------ ------------
Change in Net Assets Resulting from Operations.... 1,697,401 6,568,656
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. (2,483,773) (6,063,434)
In excess of net investment income.................
Net realized gains from investments................
In excess of net realized gains from investments...
Return of capital..................................
------------ ------------
Change in Net Assets from Distributions to
Shareholders..................................... (2,483,773) (6,063,434)
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold..................... 27,805,729 284,120,843
Reinvestment of distributions...................... 2,477,118 5,057,374
Cost of fund shares redeemed....................... (31,387,645) (275,278,590)
------------ ------------
Change in Net Assets from Capital Transactions.... (1,104,798) 13,899,627
------------ ------------
Total Change in Net Assets....................... (1,891,170) 14,404,849
NET ASSETS:
Beginning of period................................ 108,660,507 94,255,658
------------ ------------
End of period...................................... $106,769,337 $108,660,507
============ ============
Undistributed net investment income................ $ 230,421 $ 3,435
============ ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period.......... 10,927,660 9,499,849
------------ ------------
Shares sold........................................ 2,814,099 28,694,879
Shares issued in reinvestment of distributions..... 250,811 511,364
Shares redeemed.................................... (3,162,614) (27,778,432)
------------ ------------
Change in shares outstanding....................... (97,704) 1,427,811
------------ ------------
Outstanding shares at end of period................ 10,829,956 10,927,660
============ ============
</TABLE>
- --------
(a) The Fund commenced operations on December 17, 1998.
(b) The Fund commenced operations on December 30, 1997.
(c) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
30 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Investment Quality Bond
U.S. Government Fund Fund Total Return Fund
======================== ========================== ==========================
Period
ended April Year ended Period ended Year ended Period ended Year ended
30, October 31, April 30, October 31, April 30, October 31,
1999 1998 1999 1998 1999 1998
=========== =========== ============ ============ ============ ============
<S> <C> <C> <C> <C> <C>
$ 1,920,148 $ 3,302,046 $ 6,782,587 $ 8,870,626 $ 5,362,609 $ 5,862,949
(110,307) 556,891 (660,268) 2,080,160 205,690 1,187,294
(1,250,493) 834,528 (4,406,520) 1,196,334 (491,839) 541,062
----------- ----------- ------------ ------------ ------------ ------------
559,348 4,693,465 1,715,799 12,147,120 5,076,460 7,591,305
----------- ----------- ------------ ------------ ------------ ------------
(1,917,586) (3,232,000) (6,505,112) (8,681,652) (5,079,827) (6,227,413)
(1,352,736)
(377,990) (1,977,735) (524,754) (810,598) (761,994)
----------- ----------- ------------ ------------ ------------ ------------
(2,295,576) (3,232,000) (8,482,847) (9,206,406) (5,890,425) (8,342,143)
----------- ----------- ------------ ------------ ------------ ------------
10,942,911 96,042,359 139,324,384 110,019,942 36,752,510 120,792,928
2,301,386 3,232,563 8,072,566 8,630,705 5,666,669 7,469,327
(7,533,595) (44,359,827) (60,693,285) (42,604,046) (31,830,943) (51,761,918)
----------- ----------- ------------ ------------ ------------ ------------
5,710,702 54,915,095 86,703,665 76,046,601 10,588,236 76,500,337
----------- ----------- ------------ ------------ ------------ ------------
3,974,474 56,376,560 79,936,617 78,987,315 9,774,271 75,749,499
71,855,166 15,478,606 173,973,880 94,986,565 174,612,155 98,862,656
----------- ----------- ------------ ------------ ------------ ------------
$75,829,640 $71,855,166 $253,910,497 $173,973,880 $184,386,426 $174,612,155
=========== =========== ============ ============ ============ ============
$ 76,718 $ 74,156 $ 480,944 $ 203,469 $ (1,069,954) $ --
=========== =========== ============ ============ ============ ============
6,592,251 1,465,864 17,111,232 9,488,598 17,065,215 9,642,346
----------- ----------- ------------ ------------ ------------ ------------
1,020,287 8,965,339 13,803,938 10,958,699 3,593,723 11,789,406
214,625 300,960 806,759 859,385 553,419 730,690
(700,500) (4,139,912) (6,035,845) (4,195,450) (3,107,217) (5,097,227)
----------- ----------- ------------ ------------ ------------ ------------
534,412 5,126,387 8,574,852 7,622,634 1,039,925 7,422,869
----------- ----------- ------------ ------------ ------------ ------------
7,126,663 6,592,251 25,686,084 17,111,232 18,105,140 17,065,215
=========== =========== ============ ============ ============ ============
</TABLE>
See notes to financial statements.
Semi-Annual Report 31
<PAGE>
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
High Income Fund
==========================
Period ended Period ended
April 30, October 31,
1998 1998(b)
============ ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.............................. $ 4,028,226 $ 3,492,147
Net realized gains (losses)........................ (541,639) (1,066,988)
Change in net unrealized appreciation
(depreciation).................................... 4,703,177 (4,898,378)
------------ ------------
Change in Net Assets Resulting from Operations.... 8,189,764 (2,473,219)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. (3,906,524) (2,506,338)
In excess of net investment income.................
Net realized gains from investments................
In excess of net realized gains from investments...
Return of capital..................................
------------ ------------
Change in Net Assets from Distributions to
Shareholders..................................... (3,906,524) (2,506,338)
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold..................... 40,255,343 108,306,167
Reinvestment of distributions...................... 3,510,080 2,303,959
Cost of fund shares redeemed....................... (15,950,079) (13,961,759)
------------ ------------
Change in Net Assets from Capital Transactions.... 27,815,344 96,648,367
------------ ------------
Total Change in Net Assets....................... 32,098,584 91,668,810
NET ASSETS:
Beginning of period................................ 91,668,810 --
------------ ------------
End of period...................................... $123,767,394 $ 91,668,810
============ ============
Undistributed net investment income................ $ 1,107,511 $ 985,809
============ ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period.......... 9,382,439 --
------------ ------------
Shares sold........................................ 3,966,050 10,586,004
Shares issued in reinvestment of distributions..... 350,841 229,780
Shares redeemed.................................... (1,583,420) (1,433,345)
------------ ------------
Change in shares outstanding....................... 2,733,471 9,382,439
------------ ------------
Outstanding shares at end of period................ 12,115,910 9,382,439
============ ============
</TABLE>
- --------
(a) The Fund commenced operations on December 17, 1998.
(b) The Fund commenced operations on December 30, 1997.
(c) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
32 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Bunker Hill Short Duration California Municipal
Money Market Fund Tax Exempt Fund Tax Exempt Bond Fund Income Fund
============================= ========================= ========================== ====================
Period
Period ended Period ended ended April Year ended Period ended Year ended Period ended
April 30, October 31, 30, October 31, April 30, October 31, April 30,
1998 1998(c) 1999 1998 1999 1998 1999(a)
============= ============ =========== ============ ============ ============ ====================
<S> <C> <C> <C> <C> <C> <C>
$ 1,369,517 $ 876,643 $ 296,420 $ 997,973 $ 1,361,690 $ 2,685,980 $ 216,653
43,684 139,518 686,010 (15,041) (19,327)
(74,335) (21,056) (1,042,692) 1,200,227 (88,181)
------------- ------------ ----------- ------------ ------------ ------------ -----------------
1,369,517 876,643 265,769 1,116,435 1,005,008 3,871,166 109,145
------------- ------------ ----------- ------------ ------------ ------------ -----------------
(1,369,517) (876,643) (296,255) (989,711) (1,362,834) (2,639,436) (196,757)
(139,540) (24,982)
------------- ------------ ----------- ------------ ------------ ------------ -----------------
(1,369,517) (876,643) (435,795) (1,014,693) (1,362,834) (2,639,436) (196,757)
------------- ------------ ----------- ------------ ------------ ------------ -----------------
259,697,963 122,840,129 2,310,370 3,531,040 11,101,910 28,997,082 30,665,333
1,132,920 525,885 376,227 841,608 1,137,809 2,202,021 177,037
(261,386,658) (96,910,814) (3,164,085) (25,825,914) (17,466,274) (22,120,528) (2,714,979)
------------- ------------ ----------- ------------ ------------ ------------ -----------------
(555,775) 26,455,200 (477,488) (21,453,266) (5,226,555) 9,078,575 28,127,391
------------- ------------ ----------- ------------ ------------ ------------ -----------------
(555,775) 26,455,200 (647,514) (21,351,524) (5,584,381) 10,310,305 28,039,779
26,455,200 -- 16,824,575 38,176,099 67,888,900 57,578,595 --
------------- ------------ ----------- ------------ ------------ ------------ -----------------
$ 25,899,425 $ 26,455,200 $16,177,061 $ 16,824,575 $ 62,304,519 $ 67,888,900 $ 28,039,779
============= ============ =========== ============ ============ ============ =================
$ -- $ -- $ 11,809 $ 11,644 $ 50,958 $ 52,102 $ 19,896
============= ============ =========== ============ ============ ============ =================
26,455,200 -- 1,664,941 3,788,693 6,843,864 5,932,070 --
------------- ------------ ----------- ------------ ------------ ------------ -----------------
259,697,963 122,840,129 230,023 349,831 1,114,212 2,944,498 3,049,672
1,132,920 525,885 37,529 83,570 114,850 224,591 17,625
(261,386,658) (96,910,814) (314,104) (2,557,153) (1,758,648) (2,257,295) (269,347)
------------- ------------ ----------- ------------ ------------ ------------ -----------------
(555,775) 26,455,200 (46,552) (2,123,752) (529,586) 911,794 2,797,950
------------- ------------ ----------- ------------ ------------ ------------ -----------------
25,899,425 26,455,200 1,618,389 1,664,941 6,314,278 6,843,864 2,797,950
============= ============ =========== ============ ============ ============ =================
</TABLE>
See notes to financial statements.
Semi-Annual Report 33
<PAGE>
Global Short Bond Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
Australia (Australian
Dollar) (15.1%)
14,400,000 Australia
Commonwealth
Government,
9.50%, 8/15/03 $11,063.5
16,000,000 Australia
Treasury Corp.,
12.00%, 8/01/01 12,103.1
5,800,000 FNMA Global
Bond,
5.75%, 9/05/00 3,879.0
16,800,000 New South Wales
Treasury, 8.00%,
12/01/01 11,849.0
---------
Australia (Cost
- $38,186.2) 38,894.6
France (Euro) (2.0%)
4,500,000 French
Government
Btns.,
7.75%, 4/12/00 4,982.9
---------
France (Cost -
$5,341.0) 4,982.9
Germany (German Mark/Euro)
(28.7%)
24,700,000 Bundesobligation -
116,
5.75%, 8/22/00 27,128.4
18,500,000 Bundesobligation -
122,
4.50%, 2/22/02 20,408.9
7,000,000 Bundesobligation -
114,
6.50%, 3/15/00 7,643.8
18,500,000 European
Community Note,
6.50%, 3/10/00 10,306.5
4,100,000 IBRD Eurodem,
7.25%, 10/13/99 2,261.0
5,112,919 KFW
International
Finance, 7.50%,
1/24/00 5,587.5
---------
Germany (Cost -
$77,001.9) 73,336.1
Great Britain (British
Pound) (9.9%)
UK Gilt, 7.00%,
12,200,000 6/07/02 25,191.8
---------
Great Britain
(Cost -
$25,739.1) 25,191.8
Italy (Euro) (2.7%)
6,000,000 Italian
Government BTP,
6.25%, 3/01/02 6,911.0
---------
Italy (Cost -
$7,391.9) 6,911.0
New Zealand
(New Zealand Dollar) (15.0%)
61,600,000 New Zealand
Government Bond,
8.00%, 4/15/04 38,273.8
---------
New Zealand
(Cost -
$36,010.0) 38,273.8
Sweden (Swedish Krona)
(4.6%)
AB Spintab,
29,000,000 5.50%, 9/17/03 3,664.8
AB Spintab,
18,000,000 6.25%, 9/18/02 2,315.4
Statens Bostads,
18,000,000 6.50%, 9/18/02 2,330.6
Statens Bostads,
29,000,000 5.50%, 10/15/03 3,665.2
---------
Sweden (Cost -
$12,138.2) 11,976.0
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
United States
(United States Dollar)
(19.5%)
FHLB, 4.69%,
7,000,000 10/08/99 $ 6,854.4
FHLB, 5.63%,
23,500,000 3/19/01(b) 23,624.8
3,000,000 U.S. Treasury
Notes,
4.25%, 11/15/03 3,062.8
11,000,000 U.S. Treasury
Notes,
4.50%, 1/31/01 10,893.8
2,000,000 U.S. Treasury
Notes,
6.00%, 8/15/99 2,007.4
3,000,000 U.S. Treasury
Notes,
7.75%, 1/31/00 2,879.6
----------
United States
(Cost -
$49,658.2) 49,322.8
----------
Total (Cost - $251,466.4)(a)
(97.5%) $248,889.0
==========
</TABLE>
Percentages indicated are based on net assets of $255,152,183.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 3,414,240
Unrealized depreciation (5,991,640)
-----------
Net unrealized depreciation $(2,577,400)
===========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account.
Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
-------- ------------------------ -------- ------------ --------------
<S> <C> <C> <C> <C>
Assets:
07/13/99 British Pound (sell) 1.613250 $ 2,412,775 $ 7,100
06/10/99 Euro (sell) 1.094500 41,151,681 1,314,919
06/28/99 Euro (sell) 1.092950 33,557,188 980,032
06/10/99 Euro (sell) 1.101270 4,666,685 178,903
06/10/99 Euro (sell) 1.087700 6,151,540 157,120
07/12/99 Swedish Krona (sell) 8.362500 7,585,241 8,182
------------ -----------
$ 95,525,110 $ 2,646,256
============ ===========
Liabilities:
12/01/98 Australian Dollar (sell) 0.646290 $ 40,025,268 $ (989,352)
12/10/98 British Pound (sell) 1.605580 24,690,731 (45,078)
01/28/99 New Zealand Dollar (sell) 0.548530 35,879,569 (718,796)
------------ -----------
$100,595,568 $(1,753,226)
============ ===========
</TABLE>
See notes to financial statements.
34 Payden & Rygel Investment Group
<PAGE>
Global Fixed Income Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
------------- ---------------- -----------
<C> <S> <C>
France (Euro) (4.1%)
20,000,000 French
Government Bond,
7.75%, 4/12/00 $ 22,146.1
----------
France (Cost -
$23,737.7) 22,146.1
Germany (Euro) (31.5%)
15,000,000 Bayerhypo
Vereinsbank,
4.75%, 9/19/07 16,623.9
38,300,000 Bundesobligation -
116, 5.75%,
8/22/00 42,065.5
10,800,000 Deutsche
Ausgleichsbank,
4.00%, 7/04/09 11,303.2
44,000,000 Deutschland,
7.38%, 1/03/05 55,846.6
17,400,000 German
Government Bond,
5.63%, 1/04/28 20,312.5
15,000,000 Hypothekenbk In
Essen, 5.50%,
2/20/07 17,461.6
5,112,919 KFW,
5.00%, 4/04/09 5,777.8
----------
Germany
(Cost -
$174,768.7) 169,391.1
Great Britain (British Pound)
(6.7%)
19,000,000 UK Gilt,
7.25%, 12/07/07 35,845.6
----------
Great Britain
(Cost -
$34,129.9) 35,845.6
Greece (Greek Drachma) (4.3%)
3,000,000,000 Hellenic Repub
Greek Gov,
7.74%, 3/26/08 11,438.6
3,000,000,000 Hellenic
Republic,
8.14%, 6/19/07 11,487.4
----------
Greece (Cost -
$23,032.9) 22,926.0
New Zealand
(New Zealand Dollar) (5.5%)
45,900,000 New Zealand
Government,
8.00%, 11/15/06 29,342.8
----------
New Zealand
(Cost -
$25,564.9) 29,342.8
Sweden (Swedish Krona) (1.8%)
21,000,000 AB Spintab,
5.50%, 9/17/03 2,653.9
18,000,000 AB Spintab,
6.25%, 9/18/02 2,315.4
21,000,000 Statens Bostads,
5.50%, 10/15/03 2,654.1
18,000,000 Statens Bostads,
6.50%, 9/18/02 2,330.6
----------
Sweden (Cost -
$10,113.6) 9,954.0
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
United States
(United States Dollar)
(42.2%)
12,550,000 Caterpillar
Financial
Services Corp.,
6.74%, 4/5/00(b) $ 12,715.5
14,000,000 Daimler Benz
Vehicle Trust,
5.16%, 1/20/03 13,869.1
14,413,000 FHLMC,
6.00%, 9/15/06 14,503.1
32,580,000 FNMA,
6.00%,
5/15/08(b) 32,827.3
14,624,654 FNMA
98-11, 6.00%,
2/18/21 14,480.7
14,000,000 GMAC 99-1,
5.58%, 6/15/02 14,023.8
7,500,000 John Deere
Capital Corp.,
6.35%,
3/15/01(b) 7,575.0
6,600,000 John Deere
Capital Corp.,
6.39%,
9/18/00(b) 6,674.2
5,000,000 Paccar Financial
Corp.,
6.39%,
6/15/00(b) 5,049.1
12,800,000 U.S. Treasury
Notes,
6.00%, 8/15/00 12,954.9
3,000,000 U.S. Treasury
Notes,
6.13%, 8/15/07 3,133.4
12,800,000 U.S. Treasury
Bonds,
6.00%,
2/15/26(b) 12,979.1
34,000,000 U.S. Treasury
Bonds,
6.25%,
8/15/23(b) 35,410.3
12,000,000 U.S. Treasury
Notes,
5.75%,
11/15/00(b) 12,118.7
6,300,000 U.S. Treasury
Notes,
6.38%, 5/15/00 6,390.4
18,000,000 U.S. Treasury
Notes,
7.25%, 8/15/04 19,586.7
2,800,000 U.S. Treasury
Notes,
7.88%, 8/15/01 2,963.5
----------
United States
(Cost -
$227,451.1) 227,254.8
----------
Total (Cost - $518,798.8)(a)
(96.1%) $516,860.4
==========
</TABLE>
Percentages indicated are based on net assets of $537,862,753.
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Current Unrealized
Number of Expiration Market Appreciation
Contracts Contract Type Date Value (Depreciation)
- --------- ---------------------------- ---------- --------- --------------
<S> <C> <C> <C> <C>
25 Japanese 10 Yr. Bond Futures Jun-99 3,794,502 $1,175,872
</TABLE>
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 7,727,090
Unrealized depreciation (9,665,429)
-----------
Net unrealized depreciation $(1,938,339)
===========
</TABLE>
Semi-Annual Report 35
<PAGE>
Global Fixed Income Fund
Schedule of Portfolio Investments (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
(b) All or a portion of the security is held by the custodian in a segregated
account.
Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
-------- ------------------------ -------- ------------ --------------
<S> <C> <C> <C> <C>
Assets:
05/04/99 Euro (sell) 1.0600 $ 1,868,129 $ 4,062
06/10/99 Euro (sell) 1.0945 85,591,254 2,734,896
06/10/99 Euro (sell) 1.1013 15,909,155 609,895
06/28/99 Euro (sell) 1.0930 84,317,745 2,462,485
06/28/99 Euro (sell) 1.0913 5,097,294 140,946
06/22/99 Greek Drachma (sell) 307.8700 23,451,551 97,350
07/12/99 Swedish Krona (sell) 8.2197 4,813,941 88,915
07/12/99 Swedish Krona (sell) 8.3625 5,494,821 5,927
------------ ----------
$226,543,890 $6,144,476
============ ==========
Liabilities:
06/15/99 Japanese Yen (sell) 118.9000 4,806,352 (12,407)
07/13/99 British Pound (sell) 1.6056 37,172,820 (67,866)
07/28/99 New Zealand Dollar (sell) 0.5485 30,282,133 (606,660)
------------ ----------
$ 72,261,305 $ (686,933)
============ ==========
</TABLE>
See notes to financial statements.
36 Payden & Rygel Investment Group
<PAGE>
Emerging Markets Bond Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ------------------- -----------
<C> <S> <C>
Argentina (12.4%)
500,000 Argentina 05,
11.00%, 12/04/05(c) $ 497.2
250,000 Argentina 17,
11.38%, 1/30/17(c) 249.2
200,000 CIA Intl Telecom.,
8.85%, 8/01/04 182.5
150,000 Multicanal SA,
13.13%, 4/15/09(b) 152.6
250,000 Telefonica
Argentina, 9.13%,
5/07/08(c) 241.2
----------
Argentina (Cost -
$1,271.5) 1,322.7
Brazil (24.7%)
250,000 Banco Brasil,
9.38%, 6/15/07 223.8
579,158 Brazil 04, 11.63%,
4/15/04 563.2
1,792,920 Brazil C Bond,
8.00%, 4/15/14 1,241.6
750,000 Brazil Disc Z,
5.88%, 4/15/24 494.1
150,000 Globopar 06,
10.50%, 12/20/06 121.9
----------
Brazil (Cost -
$2,318.6) 2,644.6
Bulgaria (1.6%)
250,000 Bulgaria, 5.88%,
7/28/24 170.5
----------
Bulgaria (Cost -
$178.8) 170.5
Ecuador (1.1%)
287,743 Ecuador PDI, 3.75%,
2/27/15 121.4
----------
Ecuador (Cost -
$89.9) 121.4
Mexico (14.0%)
150,000 Grupo Televisa,
11.88%, 5/15/06 159.0
500,000 Mexico - Par,
6.25%, 12/31/19 396.5
250,000 Petroleos
Mexicanos, 8.85%,
9/15/07 240.0
500 United Mexican
States - Warrants 26.3
500,000 United Mexican
States, 10.38%,
2/17/09 535.0
150,000 Vitro 07, 11.38%,
5/15/07 147.0
----------
Mexico (Cost -
$1,413.8) 1,503.8
Panama (1.8%)
250,000 Panama - IRB,
4.00%, 7/17/14 195.0
----------
Panama (Cost -
$186.8) 195.0
Peru (1.4%)
250,000 Peru FLIRB, 6.13%,
3/07/17 154.2
----------
Peru (Cost -
$136.7) 154.2
Philippines (2.4%)
250,000 Phillipines 08,
8.88%, 4/15/08 253.6
----------
Philippines (Cost -
$246.2) 253.6
Poland (2.8%)
300,000 Poland PBS, 7.75%,
5/05/09 296.6
----------
Poland (Cost -
$299.1) 296.6
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ------------------- -----------
<C> <S> <C>
Russia (4.5%)
400,000 Russia 05, 8.75%,
7/24/05 $ 160.2
500,000 Russia 18, 11.00%,
7/24/18 200.6
1,500,000 Russia Prin, 5.97%,
12/15/20 102.2
----------
Russia (Cost -
$342.9) 463.0
Venezuela (7.3%)
250,000 Venezuela Par,
6.75%, 3/31/20 182.7
761,900 Venezuela FLIRB,
6.13%, 3/31/07 591.5
----------
Venezuela (Cost -
$683.6) 774.2
----------
Total (Cost - $7,167.9)(a)
(74.0%) $ 7,899.6
==========
</TABLE>
Percentages indicated are based on net assets of $10,671,938.
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Current Unrealized
Number of Expiration Market Appreciation
Contracts Contract Type Date Value (Depreciation)
--------- ------------------------ ---------- -------- --------------
<C> <S> <C> <C> <C>
7 U.S. 10 Yr. Note Futures Jun-99 $802,813 $(2,685)
=======
</TABLE>
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $756,323
Unrealized depreciation (24,588)
--------
Net unrealized appreciation $731,735
========
</TABLE>
(b) Security exempt from registration under Rule 144(b) of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(c) All or a portion of the security is held by the custodian in a segregated
account.
See notes to financial statements.
Semi-Annual Report 37
<PAGE>
Global Balanced Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ------------------- -----------
<C> <S> <C>
Common Stocks (58.8%)
Basic Materials (0.6%)
600 Henkel Kgaa Vorzug $ 47.5
Consumer Cyclicals (11.5%)
623 Daimler-Chrysler AG 61.6
5,000 Dixons PLC 106.8
4,500 GKN PLC 76.9
2,800 Home Depot, Inc. 167.8
2,200 Lufthansa 51.7
1,100 MediaOne Group(b) 89.7
300 PSA Peugeot Citroen 49.8
2,100 Tandy Corp. 152.1
Wal-Mart Stores,
3,800 Inc. 174.8
--------
Consumer Cyclicals 931.2
Consumer Non-Cyclicals (8.2%)
Bristol-Myers
2,412 Squibb Co. 153.3
Cadbury Schweppes
4,000 PLC 53.4
1,740 Glaxo Wellcome PLC 51.5
3,500 Granada Group PLC 74.8
25 Nestle SA 46.4
Novartis AG - Reg'd
30 Shrs 44.0
80 Promodes 50.8
1,000 Rhone Poulenc 47.6
5,320 Sainsbury PLC 33.8
290 Sanofi SA 45.5
4,700 Smithkline Beecham 62.2
--------
Consumer Non-
Cyclicals 663.3
Energy (4.7%)
British Petroleum
3,400 Amoco 64.5
450 Elf Aquitaine 70.0
8,200 ENI 54.0
986 Exxon Corp. 81.9
3,000 Repsol S.A. 48.9
Royal Dutch
1,040 Petroleum 60.6
--------
Energy 379.9
Financials (14.3%)
150 Allianz AG Reg'd 47.8
Allied Irish Banks
3,500 PLC 56.6
Assicurazione
1,600 Generale 62.4
Banca Commerciale
8,600 Italiana 70.9
Banco Galicia Y
6,875 Buenos-Aires-ADR 158.6
5,400 Bank of Scotland 80.8
Banque Nationale de
1,000 Paris 83.0
Bayerische Hypo-
700 und-Vereinsbank 45.7
Capital One
500 Financial Corp. 86.8
1,840 Fortis NV 65.6
4,100 Halifax PLC 57.8
Lloyds TSB Group
4,600 PLC 74.1
Royal Bank of
2,300 Scotland 54.3
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Schw
25 Rueckversicherungs $ 54.8
300 UBS AG 102.1
Unicredito
9,500 Italiano SpA 48.2
--------
Financials 1,149.5
Industrial (8.9%)
4,200 CRH PLC 82.8
General Electric
1,472 Company 155.3
600 Lafarge SA 58.4
570 Mannesmann AG 75.1
Philips
560 Electronics NV 48.3
1,000 Preussag 52.7
100 Sulzer AG 63.7
Tyco
International,
1,600 Ltd. 130.0
900 Veba AG 49.4
--------
Industrial 715.7
Technology (6.3%)
500 Alcatel Alsthom 61.5
Cable & Wireless
4,500 PLC 64.6
400 Cap Gemini SA 61.2
1,270 Nokia Oyj - 98.0
18,000 Rolls Royce PLC 83.4
8,800 TIM SpA 52.5
4,500 Vodafone PLC 82.9
--------
Technology 504.1
Utilities (4.3%)
11,000 BG PLC 61.7
1,700 Deutsche Telekom 67.1
2,250 Endesa S.A. 50.1
600 France Telecom 48.5
Suez Lyonnaise
310 Des Eaux 52.8
1,400 Telefonica Rts 1.3
1,400 Telefonica S.A. 65.7
--------
Utilities 347.2
Total Common Stocks (Cost -
$3,644.0) 4,738.4
Bonds and Notes (25.8%)
Germany (Euro) (5.5%)
Bundesobligation
300,000 116,
5.75%, 8/22/00 329.5
German
100,000 Government Bond,
5.63%, 1/04/28 116.7
--------
Germany 446.2
Great Britain (British
Pound) (2.3%)
100,000 UK Gilt,
7.25%, 12/7/07 188.7
New Zealand
(New Zealand Dollar)
(1.6%)
New Zealand
200,000 Government,
8.00%, 11/15/06 127.9
</TABLE>
See notes to financial statements.
38 Payden & Rygel Investment Group
<PAGE>
Global Balanced Fund
Schedule of Portfolio Investments (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ------------------- -----------
<C> <S> <C>
United States
(United States Dollar)
(16.3%)
450,000 U.S. Treasury
Bonds,
6.25%, 8/15/23 $ 468.7
700,000 U.S. Treasury
Notes,
5.75%, 10/31/02 710.8
130,000 U.S. Treasury
Notes,
6.38%, 5/15/00 131.8
--------
United States 1,311.3
Total Bonds and Notes (Cost -
$2,061.4) 2,074.1
--------
Total (Cost - $5,705.4)(a)
(84.5%) $6,812.5
========
</TABLE>
Percentages indicated are based on net assets of $8,048,399.
Distribution of investments by country of issue, as a percentage of total value
of investment securities, as follows:
<TABLE>
<S> <C>
United States 45.2%
Great Britain 16.2%
Germany 12.0%
France 8.0%
Switzerland 4.0%
Italy 3.7%
Netherlands 2.2%
Spain 2.1%
Argentina 2.0%
Ireland 1.8%
New Zealand 1.6%
Finland 1.2%
------
100.0%
</TABLE>
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
--------- ---------------------------- ---------- ---------- --------------
<C> <S> <C> <C> <C>
2 June S&P Futures Jun-99 $ 668,250 $ 27,436
2 June Hang Seng Index Futures Jun-99 176,348 37,742
1 June All Ordinaries Futures Jun-99 121,604 3,776
4 June Topix Index Futures Jun-99 455,800 34,257
---------- --------
$1,422,002 $103,211
</TABLE>
All of the securities listed above are held by the custodian in a segregated
account.
(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 $1,180,948
Unrealized
depreciation (73,795)
----------
Net unrealized
appreciation $1,107,153
==========
</TABLE>
(b) 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:
Liabilities:
06/15/99 Japanese Yen (sell) 118.90000 $ 50,593 $ (131)
07/28/99 New Zealand Dollar (sell) 0.54853 134,338 (2,691)
-------- -------
$184,931 $(2,822)
======== =======
</TABLE>
See notes to financial statements.
Semi-Annual Report 39
<PAGE>
International Equity Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Common Stocks (0.1%)
267 INES Corporation $ 3.5
U.S. Government Agency (59.9%)
200,000 FHLMC, 4.72%,
5/06/99(a) 199.9
3,000,000 FNMA, 4.66%,
5/06/99(a) 2,998.1
500,000 FNMA, 4.70%,
5/07/99(a) 499.6
--------
U.S. Government
Agency 3,697.6
--------
Total (Cost - $3,700.5)(b)
(60.0%) $3,701.1
========
</TABLE>
Percentages indicated are based on net assets of $6,169,857.
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
--------- -------------------------- ---------- ---------- --------------
<C> <S> <C> <C> <C>
3 ASX All Ordinaries Futures Jun-99 $ 375,524 $ 17,039
12 Topix Futures Jun-99 1,229,483 92,214
10 FTSE 100 Index Futures Jun-99 1,696,789 (2,386)
40 DAX Index Futures Jun-99 1,443,674 41,209
16 CAC 40 Index Futures Jun-99 1,861,445 16,484
--------
$164,560
========
</TABLE>
(a) All or a portion of the security is held by the custodian in a segregated
account.
(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 $583
Unrealized depreciation --
----
Net unrealized
appreciation $583
====
</TABLE>
See notes to financial statements.
40 Payden & Rygel Investment Group
<PAGE>
European Growth & Income Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal
or Security
Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C> <C>
Common Stocks (91.3%)
Basic Materials (7.8%)
14,563 Akzo Nobel NV $ 658.5
15,700 BASF AG 688.3
1,110 Clariant AG 568.9
11,400 Hoechst 540.8
7,800 Solvay S.A. 544.5
---------
Basic Materials 3,001.0
Consumer Cyclicals (26.2%)
5,600 Adidas-Salomon 552.0
190,400 Arcadia Group(c) 858.1
Bryant Group
292,600 PLC(c) 706.5
Cristaleria
10,200 Espanola 568.0
DaimlerChrysler
5,600 AG 553.5
4,300 Guilbert SA 636.7
Havas
2,800 Advertising 568.6
1,400 Karstadt 630.1
119,000 Lucasvarity 549.7
12,100 Michelin Class B 549.7
Modelo
25,600 Continente SGPS 538.8
46,800 Moulinex(b) 613.3
48,800 Next PLC(c) 602.5
PSA Peugeot
3,900 Citroen 647.6
11,000 Renault 461.2
6,100 Valeo SA 516.2
8,200 Volkswagen 582.0
---------
Consumer
Cyclicals 10,134.5
Consumer Non-Cyclicals
(6.8%)
Cie Financiere
Richemont Class
350 B 596.5
9,500 Gehe AG 437.1
Parmalat
378,000 Finanziaria 547.8
4,200 Schering AG 485.3
9,100 SEITA 548.6
---------
Consumer Non-
Cyclicals 2,615.3
Energy (4.7%)
Cia Espanola De
14,900 Petroleo 492.2
4,600 Electrafina NPV 562.0
Saga Petroleum
65,000 Class A 722.3
---------
Energy 1,776.5
</TABLE>
<TABLE>
<CAPTION>
Principal
or Security
Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Financials (20.1%)
ABN Amro Holding
26,300 NV $ 627.3
AGF-Assur Gen De
9,500 France 501.9
Allied Irish
30,900 Banks PLC 500.0
98,000 Banca Intesa SpA 522.4
25,800 Bank of Ireland 516.2
Banque National
6,695 de Paris 555.5
Barclays Bank
19,900 PLC(c) 632.3
BPI-SGPS SA -
15,600 Reg'd Shrs 420.8
19,100 Commerzbank AG 618.2
10,200 Deutsche Bank AG 593.4
Royal Bank of
27,400 Scotland 646.5
31,000 San Paolo IMI 465.6
Schw
240 Rueckversicherungs 526.4
3,769 Societe Generale 675.3
---------
Financials 7,801.8
Industrial (20.3%)
440 ABB AG 643.2
89,800 BBA Group PLC(c) 718.4
160,400 BPB PLC(c) 839.1
7,300 Gevaert NV 501.9
4,000 Holzman AG(b) 594.4
Metallgesellschaft
30,700 AC 586.5
Oerlikon-Buehrle
4,600 Hldg 678.5
178,800 Premier Farnell 843.2
175,100 Rexam PLC 683.5
32,900 Semapa Soc Inv 528.9
2,700 S.I.T.A. 562.6
27,000 Thyssen Krupp AG 591.1
---------
Industrial 7,771.3
Technology (1.2%)
78,000 TIM SpA 465.3
Utilities (4.2%)
4,100 EVN 612.7
National Power
66,500 PLC 536.2
11,000 Portugal Telecom 459.0
---------
Utilities 1,607.9
Total Common Stocks (Cost -
$33,087.2) 35,173.5
U.S. Government Agency
(1.3%)
500,000 FHLMC 499.7
---------
Total (Cost - $33,586.9)(a)
(92.6%) $35,673.3
=========
</TABLE>
See notes to financial statements.
Semi-Annual Report 41
<PAGE>
European Growth & Income Fund
Schedule of Portfolio Investments (Continued)
- -------------------------------------------------------------------------------
April 30, 1999
Percentages indicated are based on net assets of $38,383,328.
Distribution of investments by country of issue, as a percentage of total
value investment securities, as follows:
<TABLE>
<S> <C>
Great Britain 21.7%
Germany 21.4%
France 19.8%
Switzerland 7.8%
Italy 5.2%
Portugal 5.1%
Belgium 4.2%
Netherlands 3.4%
Spain 2.8%
Ireland 2.7%
United States (cash equivalent) 2.4%
Norway 1.9%
Austria 1.6%
-----
100.0%
</TABLE>
At April 30, 1999, 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>
7 FTSE 100 Index
Futures Jun-99 $688,391 $ 41,561
5 DAX Index
Futures Jun-99 695,928 18,908
16 CAC 40 Index
Futures Jun-99 791,032 60,505
--------
$120,974
========
</TABLE>
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $3,052,365
Unrealized depreciation (965,968)
----------
Net unrealized appreciation $2,086,397
==========
</TABLE>
(b) Non-income producing security.
(c) All or a portion of the security is held by the custodian in a segregated
account.
See notes to financial statements.
42 Payden & Rygel Investment Group
<PAGE>
EuroDirect Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ------------------- -----------
<C> <S> <C>
U.S. Government Agencies
(93.6%)
6,500,000 FHLMC, 4.74%,
5/06/99 $ 6,495.7
1,800,000 FHLMC, 4.76%,
5/06/99 1,798.8
1,500,000 FNMA, 4.70%,
5/07/99 1,498.8
---------
U.S. Government
Agencies 9,793.3
U.S. Treasury (4.8%)
500,000 U.S. Treasury Bill,
4.36%, 6/17/99 497.2
---------
Total (Cost - $10,290.5)
(98.4%) $10,290.5
=========
</TABLE>
Percentages indicated are based on net assets of $10,462,961.
All of the securities listed above are held by the custodian in a segregated
account.
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
--------- ---------------------- ---------- ---------- --------------
<C> <S> <C> <C> <C>
5 Long Gilt Futures Jun-99 $ 967,535 $ 17,208
13 DAX Index Futures Jun-99 1,840,967 42,312
21 Euro Bond Futures Jun-99 2,663,500 68,351
52 CAC 40 Futures Jun-99 2,514,964 169,249
24 FTSE 100 Index Futures Jun-99 2,516,498 82,600
--------
$379,720
========
</TABLE>
Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
------------ ---------- -------- ---------- --------------
<C> <S> <C> <C> <C>
Assets:
Liabilities:
5/17/99 Euro (Buy) 1.13407 $5,929,663 $(421,129)
</TABLE>
See notes to financial statements.
Semi-Annual Report 43
<PAGE>
Growth & Income Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Common Stocks (50.6%)
Basic Materials (8.1%)
178,537 Du Pont (E.I.)
De Nemours & Co. $ 12,609.2
International
194,219 Paper Co. 10,354.3
Union Carbide
2,732 Corp Hldg. Co. 141.7
----------
Basic Materials 23,105.2
Consumer Cyclicals (6.3%)
General Motors
156,240 Corp. 13,895.6
Goodyear Tire &
76,600 Rubber 4,380.6
----------
Consumer
Cyclicals 18,276.2
Consumer Non-Cyclicals
(3.3%)
Phillip Morris
272,789 Companies Inc. 9,564.7
Energy (9.9%)
144,445 Chevron Corp. 14,408.4
168,972 Exxon Corp. 14,035.2
----------
Energy 28,443.6
Financial (4.9%)
J.P. Morgan &
102,572 Company 13,821.6
Health Care (0.1%)
Merck & Company
5,450 Inc. 382.8
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Industrial (14.7%)
233,726 Caterpillar Inc. $ 15,046.1
175,558 Eastman Kodak 13,101.0
158,762 Minnesota Mining
& Manufacturing 14,129.8
----------
Industrial 42,276.9
Technology (3.3%)
188,399 AT&T Corporation 9,514.1
----------
Total Common Stocks
(Cost - $118,364.0) 145,385.1
Investment Companies
(48.3%)
S & P Depositary
1,042,994 Receipt 138,881.2
----------
Total (Cost -
$210,135.5)(a) (98.9%) $284,266.3
==========
</TABLE>
Percentages indicated are based on net assets of $287,825,374.
(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 $75,987,761
Unrealized depreciation (1,856,897)
-----------
Net unrealized appreciation $74,130,864
===========
</TABLE>
See notes to financial statements.
44 Payden & Rygel Investment Group
<PAGE>
Market Return Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Asset Backed Securities (22.1%)
2,000,000 Case 98-a,
5.83%, 2/15/05 $ 2,017.0
2,000,000 Chase Credit,
6.30%, 4/15/03 2,022.2
2,000,000 Citibank Credit
Card,
5.75%, 1/15/03 2,008.1
557,219 Contimortgage
Home Equity,
5.99%, 3/15/27 556.7
2,000,000 Dfs 99-1, 5.70%,
2/16/09 2,001.8
750,000 Ford 1998 A
Class D,
7.50%, 5/15/03(b) 727.5
2,500,000 Gsms 99, 5.29%,
11/13/13 2,500.0
2,000,000 Premier Auto
Trust,
5.82%, 12/06/02 2,008.4
---------
Asset Backed
Securities 13,841.7
Collateralized Bond
Obligations (4.7%)
1,000,000 Century, 7.13%,
2/15/11(b) 953.7
1,000,000 Gramercy, 8.94%,
10/25/02(b) 995.0
1,000,000 GS Escrow
Corporation,
5.99%, 8/01/03(b) 970.0
---------
Collateralized
Bond Obligations 2,918.7
Commercial Paper (8.8%)
3,000,000 American Express
CP,
4.79%, 6/10/99 3,000.0
2,500,000 General Electric
Credit Corp. CP,
4.83%, 6/01/99 2,500.0
---------
Commercial Paper 5,500.0
Mortgage Backed Securities
(26.6%)
75,029 Bear Stearns
Mortgage
Securities,
6.60%, 4/25/24 75.1
111,659 Drexel Burnham
Lambert CMO
Trust, 6.44%,
5/1/16 111.7
1,805,129 FHLMC 846423,
7.40%, 5/01/25 1,841.2
163,288 FHLMC, Series
1519,
6.03%, 1/15/06 163.4
1,571,395 FHLMC, 5.34%,
7/15/20 1,575.4
1,861,782 FHLMC, 6.38%,
7/15/07 1,868.9
1,988,826 FNMA 490626 Arm,
5.74%, 11/01/28 2,013.3
934,407 FNMA G94-7 F,
6.14%, 12/17/19 936.5
952,609 FNMA, 6.39%,
9/25/22 961.0
1,124,561 FNMA, series
1994-87,
6.14%, 3/25/09 1,129.8
1,854,541 FNMA 323682,
7.19%, 8/01/27 1,903.2
1,597,395 GMBS 90-5a,
6.69%, 12/25/20 1,597.4
2,423,176 Prudential Home
Mortgage, 5.90%,
12/15/23 2,415.2
---------
Mortgage Backed
Securities 16,592.1
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Corporate Notes (21.4%)
Energy (1.2%)
750,000 Gulf Canada
Resources
Limited, 9.25%,
1/15/04 $ 770.6
Financial (10.9%)
2,000,000 Caterpiller
Finance Service,
5.47%, 9/12/01 1,987.5
1,000,000 Contifinancial,
7.50%, 3/15/02 800.0
2,000,000 Home Savings of
America, 6.00%,
11/01/00 2,012.5
2,000,000 Merrill Lynch
Hutchinson,
7.59%,
8/26/99(b) 2,000.0
---------
Financial 6,800.0
Industrial (2.1%)
1,250,000 Ryerson Tull,
Incorporated,
8.50%, 7/15/01 1,287.5
Multimedia (2.4%)
500,000 News America
Holdings,
7.45%, 6/1/00 509.4
500,000 TCI
Communication,
6.38%, 3/12/01 504.2
500,000 Time Warner
Incorporated,
4.90%,
7/29/99(b) 498.7
---------
Multimedia 1,512.3
Telecommunications (3.2%)
Worldcom, Inc.,
2,000,000 6.13%, 8/15/01 2,010.0
Transportation (1.6%)
1,000,000 Northwest
Airlines
Corporation,
8.38%, 3/15/04 976.3
---------
Corporate Notes 13,356.7
U.S. Government Agencies
(5.6%)
FHLMC, 4.74%,
3,500,000 6/10/99 3,481.6
U.S. Treasury Notes (6.5%)
4,000,000 U.S. Treasury
Notes,
5.63%, 2/28/01 4,036.5
Investment Companies (2.0%)
S & P 500
Depositary
9,500 Receipt 1,265.0
---------
Total (Cost - $60,918.2)(a)
(97.6%) $60,992.3
=========
</TABLE>
Percentages indicated are based on net assets of $62,499,457.
Semi-Annual Report 45
<PAGE>
Market Return Fund
Schedule of Portfolio Investments (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Number Unrealized
of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- --------- --------------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
183 S&P 500 Futures 30-Jun-99 61,144,875 $2,049,038
</TABLE>
All of the securities listed above are held by the custodian in a segregated
account.
(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 $ 470,447
Unrealized depreciation (396,394)
---------
Net unrealized appreciation $ 74,053
=========
</TABLE>
(b) Security exempt from registration under Rule 144(a) 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.
46 Payden & Rygel Investment Group
<PAGE>
Small Cap Value Stock Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ------------------- -----------
<C> <S> <C>
Common Stocks (76.9%)
Basic Materials (9.4%)
21,780 Bethlehem Steel(b) $ 198.7
18,170 Boise Cascade
Office Product(b) 224.8
13,290 Commonwealth
Industries 127.9
5,360 Crompton & Knowles 108.5
3,810 FMC Corp.(b)(c) 247.7
4,670 Lyondell Chemical
Company 91.1
16,960 Methanex Corp.(b) 48.8
10,030 Morton
International Inc. 405.0
11,900 National Steel
Corp. 111.6
8,430 Solutia Inc. 205.5
5,480 United Stationers
Inc. 93.5
14,220 Walter Industries
Inc.(b)(c) 161.7
--------
Basic Materials 2,024.8
Capital Goods (2.8%)
4,530 McDermott Intl Inc. 131.4
14,540 The Reynolds &
Reynolds Corp. 331.7
5,375 Smith (A.O) Corp. 135.7
--------
Capital Goods 598.8
Consumer Cyclicals (20.3%)
19,630 Aztar Corp.(b) 136.2
5,850 Belo A.H. Corp. -
Ser A 126.5
25,100 Charming Shoppes(b) 97.3
11,470 Cordiant
Communications
Group 172.0
11,430 Danaher Corp.(c) 759.4
19,560 Hasbro Inc.(c) 667.5
9,480 Hertz Corp. - Cl
A(c) 565.8
7,140 Host Marriott
Corp.(b) 95.0
7,040 Information
Resources Inc.(b) 54.6
30,110 Johns Manville
Corp.(c) 404.6
2,820 Micro Warehouse
Inc. 47.8
3,750 Mohawk Industries
Inc.(b) 120.9
4,880 Ogden Corp. 126.0
5,630 Paymentech Inc. 134.4
14,810 Protection One Inc. 70.3
4,850 Public Storage Inc. 135.2
7,070 Saks
Incorporated(b) 200.2
5,250 Shaw Industries
Inc. 95.2
16,740 Terra Industries
Inc. 77.4
9,650 Viad Corp.(c) 319.1
--------
Consumer Cyclicals 4,405.4
Consumer Non-Cyclicals (4.8%)
12,120 Advantica
Restaurant Group(b) 59.1
9,820 Dial Corp.(c) 333.9
4,970 Keebler Foods
Co.(b) 159.7
43,110 Perrigo Company 328.7
9,940 Whitman Corp.(c) 162.8
--------
Consumer Non-
Cyclicals 1,044.2
Energy (4.9%)
4,450 Ashland Inc.(c) 188.0
27,400 Ensco International
Inc. 508.6
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ------------------- -----------
<C> <S> <C>
4,220 Tidewater Inc. $ 111.8
9,650 Tosco Corp.(c) 258.1
--------
Energy 1,066.5
Financials (16.3%)
7,210 Advanta Corp Cl A 97.3
3,710 Ambac Financial
Group Inc.(c) 224.0
5,140 American Annuity
Group 113.1
3,850 Amerus Life 86.1
4,870 ARM Financial 67.6
3,390 Berkley Wr Corp 93.2
24,950 Capstead Mortgage
Corp 145.0
16,700 Credit Acceptance
Corp 116.9
22,040 Duke Realty
Investments Inc.(c) 517.9
6,370 Everest Reins
Hldgs. Poison Pill 0.1
6,370 Everest Reinsurance
Holdings 193.1
4,160 Heller Financial
Corp.(b) 112.8
6,970 Liberty Financial
Companies(c) 156.4
18,050 Mackenzie Financial
Corp. 243.7
3,800 MGIC Investment
Corp. 184.5
4,430 Old Republic
International Corp. 86.7
20,420 Patriot American
Hospitality Inc. 103.4
6,160 Protective Life
Corp.(c) 241.4
4,435 Raymond James
Financial 95.6
12,765 Reinsurance Group
of America(c) 545.7
3,820 Simon Property
Group Inc. 109.6
--------
Financials 3,534.1
Health Care (4.4%)
18,320 Apria Healthcare
Group Inc.(b) 286.3
53,990 Laboratory CRP Of
American Hlds.(b) 114.7
13,620 Quest Diagnostics
Inc.(b) 311.6
3,390 Wellpoint Health
Network(b)(c) 238.1
--------
Health Care 950.7
Technology (12.7%)
10,890 Adaptec Inc.(b) 262.0
6,890 Andrew Corp.(b) 96.0
5,560 Apple Computer,
Inc.(b)(c) 255.8
13,060 Cirrus Logic
Inc.(b) 92.2
18,590 CompuCom Systems
Inc.(b) 56.4
3,490 Lexmark Intl Group
Inc. - cl A(b)(c) 431.0
26,850 Quantum Corp.(b)(c) 479.9
21,540 Silicon Graphics
Inc.(b) 274.6
12,470 Storage Tech
Corp.(b)(c) 240.8
22,190 Thermo Instrument
Systems(b)(c) 288.5
10,500 Wang
Laboratories(b)(c) 263.2
--------
Technology 2,740.4
Transportation (1.3%)
9,960 Consolidated
Freightways
Corp.(b) 112.1
3,200 U.S. Airways(b)(c) 174.2
--------
Transportation 286.3
</TABLE>
Semi-Annual Report 47
<PAGE>
Small Cap Value Stock Fund
Schedule of Portfolio Investments (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ------------------- -----------
<C> <S> <C>
Total Common Stocks (Cost -
$17,654.7) $16,651.2
U.S. Government Agency (9.2%)
2,000,000 FHLMC Discount
Note(c) 1,998.4
---------
Total (Cost - $19,653.1)(a)
(86.1%) $18,649.6
=========
</TABLE>
Percentages indicated are based on net assets of $21,665,333.
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
--------- --------------- ---------- ---------- --------------
<C> <S> <C> <C> <C>
10 S&P 500 Futures June-99 $3,341,250 $120,729
</TABLE>
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 2,107,599
Unrealized depreciation (3,111,095)
-----------
Net unrealized depreciation $(1,003,496)
===========
</TABLE>
(b) Non-income producing security.
(c) All or a portion of the security is held by the custodian in a segregated
account.
See notes to financial statements.
48 Payden & Rygel Investment Group
<PAGE>
Small Cap Growth Stock Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------- ----------------------------- -----------
<C> <S> <C>
Basic Materials (13.3%)
1,070 Alpine Group Inc.(b) $ 14.8
2,220 Ecolab Inc. 93.1
780 Lafarge Corp. 26.4
1,320 Macdermid Inc. 55.4
1,510 Martin Marietta Materials 93.3
270 Southdown Inc. 17.3
1,290 Vulcan Materials 61.6
770 Wausau Mosinee Paper Corp. 12.7
--------
Basic Materials 374.6
Capital Goods (14.2%)
970 Cognex Corp.(b) 28.1
940 Crane Co. 27.2
3,400 Griffon Corp.(b) 24.9
5,360 JLG Industries Inc. 86.1
2,150 Jacobs Engineering Group(b) 84.8
330 Lear Corp.(b) 15.1
400 Plexus Corp. 13.4
3,190 Spartech Corp. 75.8
3,510 Thermedics Inc.(b) 26.3
710 Wallace Computer Svcs. Inc. 16.4
--------
Capital Goods 398.1
Consumer Cyclicals (21.0%)
1,790 Aaron Rents Inc. 29.8
1,660 Abercrombie & Fitch Co.(b) 157.9
540 Central Newspapers Inc. 18.3
1,700 Danaher Corp. 112.9
3,600 DeVry Inc.(b) 95.0
530 International Game Technology 9.4
530 International Speedway Corp. 27.3
370 Media General Inc. - Cl A 19.2
550 Meredith Corp. 20.2
250 Payless Shoesource Inc.(b) 12.1
2,550 Viad Corp. 84.3
--------
Consumer Cyclicals 586.4
Consumer Non-Cyclicals (5.2%)
1,590 IHOP Corp.(b) 72.7
910 Interstate Bakeries Corp. 20.2
900 TV Guide Inc. 37.9
340 Tootsie Roll Inds. 14.1
--------
Consumer Non-Cyclicals 144.9
Financials (4.9%)
560 Legg Mason Inc. 19.5
570 Mercury General Corp. 20.6
450 Metris Companies Inc. 27.5
400 Orion Capital Corp. 11.8
630 Presidential Life Corp. 11.3
740 Protective Life Corp. 29.0
230 Transatlantic Holding 17.7
--------
Financials 137.4
</TABLE>
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------- ------------------------------------ -----------
<C> <S> <C>
Health Care (11.2%)
3,840 Bio Technology General Corp.(b) $ 27.2
760 First Health Group Corp.(b) 12.4
10,330 Health Management Associates Inc.(b) 161.4
1,190 Lincare Holdings Inc.(b) 35.3
3,930 Luxottica Group SpA 62.4
530 Sybron Int'l. Corp.-Wisconsin 14.7
--------
Health Care 313.4
Technology (18.8%)
620 Adobe Systems Inc. 39.3
1,750 Altera Corporation(b) 126.4
1,710 American Power Conversion 56.4
2,895 Century Telephone Enterprise 116.5
3,570 Coherent Inc.(b) 53.1
2,880 Excel Switching Corp.(b) 59.8
2,190 Iomega Corp. 10.7
1,570 Methode Electronics 23.4
640 Remedy Corp. 11.2
530 Sawtek Inc. 18.7
1,630 X-rite Inc. 11.2
--------
Technology 526.7
Transportation (1.3%)
1,630 Comair Holdings Inc. 36.0
Utilities (0.9%)
1,080 Washington Gas Light Co. 25.4
--------
Total Common Stock (Cost - $2,268.8)(a) (90.8%) $2,542.9
========
</TABLE>
Percentages indicated are based on net assets of $2,797,139.
(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 $ 474,858
Unrealized depreciation (200,821)
---------
Net unrealized appreciation $ 274,037
=========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
Semi-Annual Report 49
<PAGE>
Limited Maturity Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------- ---------------------------------------------------- -----------
<C> <S> <C>
Asset Backed Securities (26.6%)
7,000,000 Chase Manhattan Auto, $ 7,024.5
5.75%, 10/15/01
59,654 Chase Manhattan Grantor Trust 1995-A, 6.00%, 9/17/01 59.7
5,000,000 GSMS 99,
5.29%, 11/13/13 5,000.0
1,430,144 Olympic Automobile Receivables Trust, 7.88%, 7/15/01 1,456.6
5,129,626 Premier Auto Trust,
6.58%, 10/6/00 5,158.8
3,000,000 SBC Glacier Finance Limited,
5.88%, 9/10/02(b) 2,982.0
---------
Asset Backed Securities 21,681.6
Mortgage Backed Securities (23.2%)
893,254 FNMA,
9.50%, 9/1/24 953.3
4,000,000 FNMA 323682,
7.19%, 8/01/27 4,105.0
2,415,007 FNR 97-17f,
6.05%, 11/18/25 2,423.8
4,219,387 FNR 97-20,
5.90%, 3/25/27 4,187.7
3,366,881 GNMA 78075,
8.00%, 12/15/27 3,512.0
1,521,271 Headlands Mortgage,
7.75%, 3/25/12 1,543.3
2,085,239 Independent National Mortgage,
7.00%, 3/25/26 2,091.3
---------
Mortgage Backed Securities 18,816.4
</TABLE>
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------- -------------------------- -----------
<C> <S> <C>
Corporate Bonds (43.5%)
4,000,000 Ahmanson Finance Note,
5.88%, 2/27/01 $ 4,005.0
5,000,000 General Motors Acceptance,
6.65%, 4/25/01 5,087.5
6,000,000 MBNA America Bank,
6.05%, 5/5/99 6,000.0
6,000,000 Merrill Lynch,
7.59%, 8/26/99(b) 6,000.0
3,000,000 Paccar Financial Corp.,
5.75%, 2/15/01 3,000.0
5,000,000 TCI Communications,
6.38%, 3/12/01 5,042.0
6,500,000 Time Warner, Incorporated,
4.90%, 7/29/99(b) 6,483.8
---------
Corporate Bonds 35,618.3
U.S. Government Agencies (2.7%)
2,228,643 Federal Home Loan Mortgage
Corporation,
5.93%, 4/15/08 2,229.1
U.S. Treasury Notes (3.1%)
2,500,000 U.S. Treasury Notes,
6.25%, 8/31/00 2,538.8
---------
Total (Cost - $80,649.7)(a) (99.1%) $80,884.2
=========
</TABLE>
Percentages indicated are based on net assets of $81,757,628.
(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 $303,792
Unrealized depreciation (69,239)
--------
Net unrealized appreciation $234,553
========
</TABLE>
(b) Security exempt from registration under Rule 144(a) 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.
50 Payden & Rygel Investment Group
<PAGE>
Short Bond Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------- -------------------------------------------------- -----------
<C> <S> <C>
Commercial Mortgage Backed
Securities (4.3%)
1,568,692 CSFB 97-c2, 6.40%, 2/17/04 $ 1,579.1
2,958,626 Morgan Stanley Capital 1, 6.22%, 6/3/30 2,975.8
---------
Commercial Mortgage Backed
Securities 4,554.9
Mortgage Backed Securities (18.8%)
1,535,731 FNMA, Series 1997-32, 6.29%, 4/25/27 1,546.3
2,709,178 FHLMC CMO, 6.09%, 4/15/26 2,713.7
5,000,000 FHLMC TBA, 7.00%, 5/1/28(b) 5,073.4
1,986,011 FHLMC, 6.14%, 3/15/18 1,991.0
5,000,000 FNMA TBA, 6.50%, 5/1/13(b) 5,039.0
2,415,007 FNR 97-17f, 6.05%, 11/18/25 2,423.8
934,114 Headlands Mortgage, 7.75%, 3/25/12 947.7
287,280 Residential Funding Corporation, 6.25%, 10/25/23 287.7
---------
Mortgage Backed Securities 20,022.6
Corporate Bonds (60.2%)
Energy (3.3%)
3,500,000 Valero Energy, 6.75%, 12/15/02 3,480.8
Financial (46.0%)
2,000,000 Ahmanson Finance Note, 5.88%, 2/27/01 2,002.5
4,000,000 AT&T Capital Corp., 6.25%, 5/15/01 4,025.0
3,500,000 AT&T Capital Corp., 6.57%, 1/21/00 3,523.7
5,000,000 Caterpiller Finance Services, 6.95%, 10/10/00 5,107.1
2,000,000 Credit Suisse First Boston Note, 7.43%, 8/26/99(c) 2,000.0
3,000,000 Ford Motor Credit Global, 6.50%, 2/28/02 3,052.5
5,000,000 GE Capital Corp., 4.80%, 7/29/99 5,000.0
2,500,000 GMAC Global Note, 5.88%, 11/22/03 2,487.5
2,150,000 GMAC, 8.50%, 1/1/03 2,322.0
2,500,000 International Lease Finance Corp.,
6.45%, 9/11/00 2,528.1
3,000,000 John Deere Capital Corp., 5.85%, 1/15/01 3,007.5
2,000,000 Korea Development Bank, 7.13%, 9/17/01 2,002.5
5,000,000 MBNA Corp., 6.15%, 10/1/03 4,918.8
3,000,000 Merrill Lynch, 7.49%, 8/26/00(c) 3,000.0
2,000,000 Salomon Inc., 6.88%, 12/15/03 2,055.0
2,000,000 Salomon Inc., 7.13%, 8/1/99 2,010.0
---------
Financial 49,042.2
</TABLE>
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------- ------------------------------------------- -----------
<C> <S> <C>
Industrial (3.8%)
4,000,000 Honeywell Inc, 6.75%, 3/15/02 $ 4,095.0
Multimedia (5.2%)
3,500,000 TCI Communications, 6.38%, 3/12/01 3,529.4
2,000,000 Time Warner Incorporated, 4.90%, 7/29/99(c) 1,995.0
----------
Multimedia 5,524.4
Telecommunications (1.9%)
2,000,000 Telefonica Argentina, 8.38%, 10/01/00 2,012.0
----------
Corporate Bonds 64,154.4
U.S. Treasury Notes (24.7%)
2,700,000 US Treasury Notes, 5.50%, 5/31/03 2,722.6
23,000,000 US Treasury Notes, 6.25%, 4/30/01 23,494.7
----------
U.S. Treasury Notes 26,217.3
----------
Total (Cost - $114,904.5)(a) (108.0%) $114,949.2
==========
</TABLE>
Percentages indicated are based on net assets of $106,769,337.
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
--------- ----------------------- ---------- ----------- --------------
<C> <S> <C> <C> <C>
100 U.S. 2 Yr. Note Futures Jun-99 $20,956,250 $(20,813)
</TABLE>
All of the securities listed above are held by the custodian in a segregated
account.
(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 $ 275,556
Unrealized
depreciation (230,858)
---------
Net unrealized
appreciation $ 44,698
=========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
(c) Security exempt from registration under Rule 144(a) 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>
U.S. Government Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
Mortgage Backed Securities (66.2%)
3,180,340 FHLMC CMO,
6.09%, 4/15/26 $ 3,185.6
3,000,000 FHLMC,
5.75%, 11/15/09 3,005.1
5,500,000 FHLMC,
5.75%, 7/15/03 5,530.0
2,300,000 FNMA 1997-35 Pc,
6.75%, 5/18/18 2,327.7
2,407,997 FNMA 380459,
6.27%, 7/1/05 2,408.0
955,432 FNMA 415318,
5.63%, 2/12/28 960.8
2,468,657 FNMA 421914,
5.92%, 3/12/28 2,459.4
3,539,000 FNMA 93-103 Pg,
6.25%, 6/25/19 3,539.3
1,671,300 FNMA 97-67fc,
5.99%, 12/18/19 1,670.6
3,118,658 FNMA G94-7
F, 6.14%,
12/17/19 3,125.6
7,000,000 FNMA TBA,
6.00%, 5/1/13(b) 6,932.2
10,000,000 FNMA TBA,
6.50%, 5/1/13(b) 10,078.1
4,840,340 FNMA,
7.00%, 11/01/13 4,945.9
----------
Mortgage Backed
Securities 50,168.3
Supranational (7.9%)
6,000,000 International
Bank Recon &
Development,
5.63%, 3/17/03 5,977.5
U.S. Government Agencies (21.0%)
3,000,000 FHLB,
5.13%, 9/15/03 2,945.2
5,000,000 FHLB Note,
5.72%, 4/14/00 5,023.5
3,000,000 FNMA,
5.25%, 1/15/03 2,970.0
5,000,000 FNMA,
4.73%, 6/04/99 4,977.7
----------
U.S. Government
Agencies 15,916.4
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
U.S. Treasury (24.1%)
5,600,000 U.S. Treasury
Notes,
5.50%, 2/29/00 $ 5,627.8
3,000,000 U.S. Treasury
Notes,
6.38%, 5/15/00 3,043.0
6,000,000 U.S. Treasury
Notes,
6.25%, 8/31/00 6,093.0
3,500,000 U.S. Treasury
Notes,
5.50%, 2/28/03 3,527.3
---------
U.S. Treasury 18,291.1
---------
Total (Cost - $90,578.5)(a)
(119.2%) $90,353.3
=========
</TABLE>
Percentages indicated are based on net assets of $75,829,640.
All of the securities listed above are held by the custodian in a segregated
account.
(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 $ 131,682
Unrealized depreciation (356,814)
---------
Net unrealized depreciation $(225,132)
=========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
See notes to financial statements.
52 Payden & Rygel Investment Group
<PAGE>
Investment Quality Bond Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
Asset Backed Securities
(9.8%)
3,300,000 Green Tree
Financial Corp.,
6.93%, 7/15/28 $ 3,366.0
3,075,876 IMC Home Equity
Loan Trust 1997-
6A,
5.85%, 1/20/28 3,064.5
2,220,000 MBNA Master
Credit Card
Trust,
6.60%, 11/15/04 2,300.3
1,535,896 Navistar
Financial Corp.,
6.75%, 3/15/02 1,552.2
8,000,000 SBC Glacier
Finance Limited,
5.88%,
9/10/02(c) 7,952.0
1,720,620 Structured Asset
Notes Trans.,
7.16%, 10/28/03 1,724.9
5,000,000 WFS Financial
Owner Trust,
5.55%, 2/20/03 4,989.0
----------
Asset Backed
Securities 24,948.9
Collaterized Bond
Obligations (3.5%)
4,000,000 Century,
7.13%,
2/15/11(c) 3,815.0
5,000,000 FC CBO,
8.43%, 6/3/09(c) 5,025.0
----------
Collateralized
Bond Obligations 8,840.0
Mortgage Backed Securities
(24.0%)
2,408,879 FHLMC,
8.50%, 6/1/17 2,551.9
126,272 FNMA 91-84 CMO,
5.87%, 2/25/06 126.4
24,000,000 FNMA TBA,
6.50%, 5/1/28(b) 23,835.0
7,500,000 FNMA TBA,
7.00%, 5/1/28(b) 7,596.1
8,000,000 FNMA TBA,
7.50%, 5/1/28(b) 8,220.0
8,000,000 GMAC 1999-c1,
6.18%, 5/15/23 7,883.2
648,810 GNMA #399001,
8.00%, 12/15/26 676.4
4,525,742 GNMA 48928,
8.00%, 6/15/28 4,718.1
2,200,000 GNMA,
8.00%, 7/1/28 2,293.5
923,196 GNMA,
8.00%, 7/15/25 962.4
2,010,972 RFMSI,
6.51%, 1/25/07 2,038.9
----------
Mortgage Backed
Securities 60,901.9
Commercial Paper (13.7%)
10,000,000 American Express
Corp.,
4.78%, 8/19/99 10,000.0
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
5,000,000 Associates
Corp.,
4.82%, 6/22/99 $ 4,965.2
10,000,000 General Electric
Credit Corp.,
4.84%, 5/6/99 10,000.0
10,000,000 GMAC,
4.80%, 7/27/99 10,000.0
---------
Commercial Paper 34,965.2
Foreign Notes (1.0%)
1,500,000 Swire Pacific
Ltd.,
8.50%, 9/29/04 1,588.5
1,000,000 Transgas,
10.25%, 4/25/01 1,028.8
---------
Foreign Notes 2,617.3
Corporate Bonds (43.4%)
Energy (3.3%)
8,000,000 Valero Energy,
6.75%, 12/15/02 7,956.0
500,000 Virginia
Electric Power
Company,
7.38%, 7/1/02 520.6
---------
Energy 8,476.6
Financials (23.2%)
7,000,000 Ahmanson Finance
Note,
8.25%, 10/1/02 7,420.0
1,050,000 Citicorp,
6.65%, 5/15/00 1,060.5
11,000,000 Credit Suisse
First Boston
Note, 7.43%,
8/26/99 11,000.0
4,500,000 Grand
Metropolitan
Investment,
8.63%, 8/15/01 4,775.6
8,000,000 MBNA American
Bank,
6.10%, 12/15/00 8,020.0
10,000,000 Merrill Lynch
Hutchinson,
7.49%,
8/26/00(b) 10,000.0
13,000,000 Merrill Lynch
Hutchinson,
7.59%,
8/26/99(b) 13,000.0
1,500,000 Salomon,
Incorporated,
5.88, 7/23/01 1,500.0
1,500,000 Salomon,
Incorporated,
7.25%, 5/1/01 1,539.4
1,040,000 Transamerica
Financial Corp.,
7.40%, 7/29/99 1,045.0
---------
Financials 59,360.5
Industrial (3.0%)
5,425,000 Hanson Overseas,
PLC,
6.75%, 9/15/05 5,540.2
2,000,000 Hutchinson
Whampoa,
6.95%, 8/1/07(b) 1,970.0
---------
Industrial 7,510.2
</TABLE>
Semi-Annual Report 53
<PAGE>
Investment Quality Bond Fund
Schedule of Portfolio Investments (Continued)
- -------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
Multimedia (7.8%)
3,600,000 News America
Holdings,
8.63%, 2/1/03 $ 3,888.0
6,500,000 TCI
Communications,
6.38%, 3/12/01 6,554.5
5,000,000 TCI
Communications,
8.25%, 1/15/03 5,374.9
650,000 Time Warner
Entertainment,
8.38%, 3/15/23 751.5
3,000,000 Time Warner,
Incorporated,
7.75%, 6/15/05 3,206.3
----------
Multimedia 19,775.2
Telecommunications (1.2%)
3,000,000 US West,
6.38%, 7/15/08 3,015.0
Transportation (4.9%)
4,100,000 AMR Corporate
Note,
9.82%, 10/25/11 5,002.0
6,700,000 Norfolk
Southern,
7.70%, 5/15/17 7,244.4
----------
Transportation 12,246.4
----------
Corporate Bonds 110,383.9
U.S. Government Agency
(0.1%)
256,885 FNMA,
6.10%, 5/25/99 257.0
U.S. Treasury (19.0%)
16,000,000 U.S. Government
Strip,
0.00%, 8/15/20 4,425.0
700,000 U.S. Treasury
Bonds,
6.25%, 8/15/23 729.0
10,500,000 U.S. Treasury
Notes,
5.50%, 5/31/03 10,588.1
7,500,000 U.S. Treasury
Notes,
5.50%, 2/15/08 7,546.5
2,500,000 U.S. Treasury
Notes,
6.63%, 4/30/02 2,597.5
20,250,000 U.S. Treasury
Notes,
6.63%, 5/15/07 21,795.3
500,000 U.S. Treasury
Notes,
7.50%, 2/15/05 552.7
----------
U.S. Treasury 48,234.1
----------
Total (Cost - $292,856.2)(a)
(114.5%) $291,148.3
==========
</TABLE>
Percentages indicated are based on net assets of $253,910,497.
All of the securities listed above are held by the custodian in a segregated
account.
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
--------- ------------------------ ---------- ---------- --------------
<C> <S> <C> <C> <C>
120 U.S. 10 Yr. Note Futures Jun-99 13,762,500 $ (56,850)
197 U.S. 30 Yr. Bond Futures Jun-99 23,676,938 (121,235)
---------
$(178,085)
=========
</TABLE>
At April 30, 1999, the Fund's open swap contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Notional Settle Appreciation/
Principal Contract Type Date (Depreciation)
---------- ----------------- ------ --------------
<C> <S> <C> <C>
25,000,000 Lehman Brothers
Index Return Swap 01-May-99 15,287
</TABLE>
For the above swap contract, the Fund pays a rate equal to LIBOR (London
Interbank Offered Rate) minus 0.07% and receives a rate equal to the Lehman
Mortgage Index.
(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 $ 825,185
Unrealized depreciation (2,533,127)
-----------
Net unrealized depreciation $(1,707,942)
===========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
(c) Security exempt from registration under Rule 144(a) 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.
54 Payden & Rygel Investment Group
<PAGE>
Total Return Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
Asset Backed Securities
(11.0%)
3,000,000 Citibank Credit
Card, 5.75%,
1/15/03 $ 3,012.2
3,000,000 Evergreen
Funding, 7.03%,
11/15/10(b) 2,400.0
400,000 Green Tree
Financial Corp.,
6.93%, 7/15/28 408.0
2,000,000 Los Angeles
Funding, 7.66%,
12/15/26 1,970.0
3,500,000 Premier Auto
Trust, 6.32%,
3/6/02 3,541.0
860,310 Structured Asset
Notes Trans.,
7.16%, 10/28/03 862.4
4,750,000 Triangle
Funding, 7.84%,
10/15/05(b) 4,465.0
3,600,000 WFS Financial
Owner Trust,
5.55%, 2/20/03 3,592.1
---------
Asset Backed
Securities 20,250.7
Collateralized Bond
Obligations (3.6%)
1,000,000 Ares Leveraged
Bond, 7.52%,
11/30/04(c) 952.5
750,000 Ares Leveraged
Bond, 9.77%,
11/30/04(c) 718.1
5,000,000 FC CBO, 8.43%,
6/3/09(c) 5,025.0
---------
Collateralized
Bond Obligations 6,695.6
Mortgage Backed Securities
(29.3%)
2,625,216 FHLMC Converted,
#a01499, 8.50%,
4/1/19 2,789.3
1,689,921 FHLMC Gold,
#C00542, 7.50%,
8/1/27 1,737.4
594,252 FHLMC Gold,
8.50%, 3/1/23 630.3
13,000,000 FHLMC, 4.78%,
6/28/99 12,899.8
2,526,526 FNMA Series
1997-32, 6.29%,
4/25/27 2,544.0
17,000,000 FNMA TBA, 6.50%,
5/1/28(b) 16,883.0
5,500,000 FNMA TBA, 7.00%,
5/1/28(b) 5,570.5
6,000,000 GMAC 1999-c1,
6.18%, 5/15/23 5,912.4
5,000,000 GNMA TBA, 8.00%,
1/15/27(b) 5,209.4
---------
Mortgage Backed
Securities 54,176.1
Commercial Paper (10.8%)
10,000,000 GE Capital CP,
4.79%, 7/22/99 10,000.0
10,000,000 UBS Commercial
Paper, 5.25%,
6/3/99 9,956.2
---------
Commercial Paper 19,956.2
</TABLE>
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------- ---------------- -----------
<C> <S> <C>
Convertible Bonds (8.9%)
140,000 EMC Corporate
Convertable
Note, 3.25%,
3/15/02 $ 657.1
580,000 France Telecom,
2.00%, 1/1/04 696.0
1,500,000 Hewlett Packard
Convertible
Note, 0.00%,
10/14/17 873.8
10,500,000 Hewlett Packard,
0.00%, 10/14/17 6,116.3
1,250,000 Mark IV
Industrial,
7.50%, 9/1/07 1,200.0
1,550,000 Office Depot,
8.00%, 11/1/08 1,292.3
300,000 Omnicom Group,
4.25%, 11/3/07 697.4
2,796,000 Silicon
Graphics, 5.25%,
9/1/04 2,324.2
40,000 Union Pacific
Cap, 6.25%,
4/1/28 2,165.0
---------
Convertible
Bonds 16,022.1
Foreign Bonds (3.3%)
750,000 Argentina
Global, 10.95%,
11/01/99 764.9
1,000,000 Cemex, 9.50%,
9/20/01 1,033.7
2,000,000 Petro Mexicanos,
7.75%, 10/29/99 2,007.1
1,500,000 Telefonica
Argentina,
8.38%, 10/01/00 1,508.9
775,000 Transgas,10.25%,
4/25/01 797.3
---------
Foreign Bonds 6,111.9
Corporate Bonds (20.4%)
Energy (0.8%)
1,250,000 CAL Energy
Company, 9.50%,
9/15/06 1,395.3
Financial (10.2%)
3,400,000 Chase Manhatten,
6.40%, 7/16/01 3,431.9
1,325,000 Contifinanial
Corp., 9.25%,
8/15/03 1,033.5
9,000,000 Credit Suisse
First Boston
Note, 7.43%,
8/26/99(b) 9,000.0
2,000,000 GS Escrow
Corporation,
5.99%,
8/01/03(c) 1,940.0
225,000 Salomon,
Incorporated,
6.25%, 11/30/00 227.8
3,000,000 Salomon,
Incorporated,
5.88, 7/23/01 3,000.0
---------
Financial 18,633.2
</TABLE>
See notes to financial statements.
Semi-Annual Report 55
<PAGE>
Total Return Fund
Schedule of Portfolio Investments (Continued)
- -------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Industrial (6.6%)
750,000 AK Steel
Corporation,
9.13%, 12/15/06 $ 795.0
300,000 Hutchinson
Whampoa, 6.95%,
8/1/07(c) 295.5
7,000,000 Merrill Lynch
Hutchinson,
7.49%,
8/26/00(b) 7,000.0
4,000,000 Merrill Lynch
Hutchinson,
7.59%,
8/26/99(b) 4,000.0
----------
Industrial 12,090.5
Multimedia (2.8%)
750,000 Rogers
Cablesystem,
10.00%, 12/1/07 845.6
3,500,000 TCI
Communication,
6.381%, 3/12/01 3,529.4
1,000,000 Time Warner
PATS, 6.10%,
12/30/01 1,005.0
----------
Mulitmedia 5,380.0
----------
Corporate Bonds 37,499.0
U.S. Treasury (26.0%)
17,000,000 U.S. Treasury
Notes, 5.63%,
11/30/99 17,083.0
1,500,000 U.S. Treasury
Notes, 6.25%,
8/31/00 1,523.3
17,000,000 U.S. Treasury
Notes, 6.63%,
5/15/07 18,297.3
40,000,000 U.S. Treasury
Strips, 0.00%,
8/15/20 11,131.2
----------
U.S. Treasury 48,034.8
----------
Total (Cost -
$210,024.9)(a) (113.3%) $208,746.4
==========
</TABLE>
Percentages indicated are based on net assets of $184,386,426.
All of the securities listed above are held by the custodian in a segregated
account.
At April 30, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Number Unrealized
of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- --------- ------------------------ ---------- ----------- --------------
<S> <C> <C> <C> <C>
10 June NDM Futures-Short Jun-99 $ 2,155,000 $ 61,350
210 U.S. 10 Yr. Note Futures Jun-99 20,084,375 84,263
167 U.S. 30 Yr. Bond Futures Jun-99 20,071,313 (125,023)
---------
$ 20,590
=========
</TABLE>
At April 30, 1999, the Fund's open swap contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Notional Settle Appreciation/
Principal Contract Type Date (Depreciation)
---------- ----------------- --------- --------------
<S> <C> <C> <C>
25,000,000 Lehman Brothers
Index Return Swap 01-May-99 $ 15,287
15,000,000 JP Morgan SWAP 05-Oct-99 886,037
--------
$901,324
========
</TABLE>
For the contract with the notional value of $25 million, the Fund pays a rate
equal to LIBOR (London Interbank Offered Rate) minus 0.07% and receives a rate
equal to the Lehman Mortgage Index. For the contract with the notional value
of $15 million, the Fund pays a rate equal to LIBOR minus 0.15% and receives a
rate equal to the Emerging Market Bond Index.
(a) This represents cost for federal income tax purposes and differs from
value by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 2,149,573
Unrealized depreciation (3,428,050)
-----------
Net unrealized depreciation $(1,278,477)
===========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
(c) Security exempt from registration under Rule 144(a) 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.
56 Payden & Rygel Investment Group
<PAGE>
High Income Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Asset Backed Securities
(2.9%)
250,000 Ford 1998 A
Class D,
7.50%,
5/15/03(b) $ 242.5
1,000,000 Ford 98-B,
7.50%,
11/15/03(b) 970.0
1,000,000 Gramercy,
8.94%,
10/25/02(b) 995.0
750,000 Triangle Funding
LTD,
7.45%,
10/15/03(b) 727.5
750,000 Triangle
Funding,
7.84%,
10/15/05(b) 704.9
--------
Asset Backed
Securities 3,639.9
Collaterized Bond
Obligations (0.2%)
250,000 Ares Leveraged
Bond,
9.77%,
11/30/04(b) 239.4
Preferred Stock (3.5%)
10,856 CSC Holdings
Inc.,
10.13%, 11/1/05 1,237.6
1,000,000 Fuji Preferred,
9.87%,
12/31/49(b) 940.0
11,316 Granite
Broadcasting
12.75% 1,159.9
48,039 Swire Pacific,
8.84% 1,008.8
--------
Preferred Stock 4,346.3
Government Bonds (1.2%)
1,000,000 Korea
Development
Bank,
7.13%, 4/22/04 999.5
500,000 Republic of
Phillippines,
8.88%, 4/15/08 507.1
--------
Government Bonds 1,506.6
Corporate Bonds (84.8%)
Basic Materials (1.3%)
400,000 AK Steel
Corporation,
9.13%, 12/15/06 424.0
250,000 California
Steel,
8.50%,
4/01/09(b) 255.0
750,000 Tembec
Industries,
8.63%, 6/02/09 776.3
--------
Basic Materials 1,455.3
Building & Construction
(3.1%)
1,000,000 Building
Materials Corp.,
8.00%, 12/1/08 987.5
1,500,000 Kaufman & Bros.
Home,
9.63%, 11/06/04 1,575.0
1,000,000 U S Home Corp.,
8.88%, 8/15/07 1,000.0
--------
Building &
Construction 3,562.5
Cable Systems (11.1%)
500,000 Adelphia
Communications,
10.50%, 7/15/04 551.3
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
1,250,000 Bresnan
Communications,
8.00%, 2/01/09 $ 1,281.3
1,315,000 Century
Communications,
8.38%, 12/15/07 1,344.6
1,500,000 Charter
Communication
Holding, 8.63%,
4/01/09(b) 1,533.8
1,800,000 Classic Cable,
9.88%, 8/1/08(b) 1,917.0
1,000,000 CSC Holdings
Inc.,
9.25%, 11/1/05 1,067.5
1,000,000 Falcon Holdings
Group,
0.00%, 4/15/03 715.0
1,250,000 Galaxy Telecom,
12.38%, 10/01/05 1,390.6
1,250,000 Lenfest
Communication,
8.38%, 11/1/05 1,334.4
1,000,000 NTL Inc.,
10.00%, 10/31/02 1,077.5
1,400,000 Rogers
Cablesystem,
10.00%, 12/1/07 1,578.5
---------
Cable Systems 13,791.5
Consumer Cyclicals (3.6%)
1,000,000 Bally Total
Fitness,
9.88%, 10/15/07 1,002.4
1,000,000 Prime
Hospitality
Corp.,
9.75%, 4/1/07 1,029.9
500,000 Prime
Hospitality
Corp.,
9.25%, 1/15/06 519.9
1,000,000 Protection One,
8.13%,
1/15/09(b) 999.9
1,000,000 Revlon Cons
Products,
8.63%, 2/1/08 945.0
---------
Consumer
Cyclicals 4,497.1
Consumer Non-Cyclicals
(2.8%)
1,000,000 Dominos Inc.,
10.38%, 1/15/09 1,037.4
1,500,000 Jitney-Jungle
Stores,
10.38%, 9/15/07 1,421.2
1,000,000 K Mart Corp.,
7.95%, 2/1/23 1,035.0
---------
Consumer Non-
Cyclicals 3,493.6
Energy (4.4%)
250,000 CAL Energy
Company,
9.50%, 9/15/06 279.1
1,000,000 Calpine Corp.,
9.25%, 2/1/04 1,027.5
1,575,000 Cliffs Drilling,
10.25%, 5/15/03 1,539.5
1,250,000 Gulf Canada
Resources
Limited, 9.25%,
1/15/04 1,284.4
1,000,000 Nuevo Energy,
8.875%, 6/1/08 1,000.0
500,000 Pogo Producing,
10.325%,
02/15/09 521.3
---------
Energy 5,651.8
</TABLE>
Semi-Annual Report 57
<PAGE>
High Income Fund
Schedule of Portfolio Investments (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Financials (6.5%)
1,500,000 Bay View
Capital,
9.13%, 8/15/07 $ 1,451.3
750,000 Contifinanial
Corp.,
9.25%, 8/15/03 585.0
3,000,000 Credit Suisse
First Boston
Note, 7.43%,
8/26/99(b) 3,000.0
2,000,000 GS Escrow
Corporation,
5.99%,
8/01/03(b) 1,940.0
1,500,000 Standard
Chartered,
5.28%, 12/29/49 1,046.3
---------
Financials 8,022.6
Gaming (8.4%)
250,000 Argosy Gaming,
12.00%, 6/01/01 255.0
1,500,000 Harrahs
Operating Co.,
7.88%, 12/15/05 1,522.5
500,000 Hollywood
Casino,
12.75%, 11/1/03 545.0
1,500,000 Hollywood Park,
9.25%, 5/15/07 1,552.5
1,500,000 Horseshoe
Gaming,
9.38%, 6/15/07 1,560.0
1,000,000 Isle of Capri,
8.75%,
4/15/09(b) 997.5
1,500,000 Park Place
Entertainment,
7.88%, 12/15/05 1,470.0
1,500,000 Starwood Hotels
& Resorts,
6.78%, 11/15/05 1,436.3
1,000,000 Station Casinos,
8.88%, 12/01/08 1,029.9
---------
Gaming 10,368.7
Industrial (10.8%)
1,500,000 American
Standard,
7.38%, 2/1/08 1,481.3
1,500,000 BE Aerospace,
8.00%, 3/1/08 1,492.5
1,500,000 Columbus
McKinnon,
8.50%, 4/1/08 1,488.8
1,500,000 Federal Mogul
Co.,
7.75%, 7/12/06 1,530.0
1,000,000 Hayes Lemmerz
International
Inc., 8.25%,
12/15/08(b) 1,005.0
1,250,000 Mark IV
Industrial,
7.50%, 9/1/07(b) 1,200.0
1,300,000 Navistar
International,
8.00%, 2/1/08 1,345.5
1,650,000 Pierce Leahy,
8.13%, 5/15/08 1,633.5
500,000 Ryerson Tull,
Incorporated,
8.50%, 7/15/01 515.0
1,500,000 Scotts Co,
8.63%,
1/15/09(b) 1,548.8
---------
Industrial 13,240.4
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Multimedia (16.4%)
1,000,000 Ackerly,
9.00%, 1/15/09 $ 1,030.0
1,500,000 Chancellor
Media,
8.13%, 12/15/07 1,518.8
1,500,000 Cumulus Media,
10.38%, 7/01/08 1,616.3
250,000 Globo
Communicacoes,
10.63%,
12/5/08(b) 201.9
1,000,000 Granite
Broadcasting,
8.88%, 5/15/08 1,000.0
1,000,000 Grupo Televisa,
11.88%, 5/15/06 1,060.0
1,500,000 HMH Properties,
7.88%, 8/1/08 1,451.3
1,500,000 HMV Media Group
PLC, 10.25%,
5/15/08(b) 1,560.0
1,000,000 IMAX Corp.,
7.88%, 12/1/05 995.0
500,000 Jacor
Communication
Co.,
9.75%, 12/15/06 552.5
1,500,000 Loews Cineplex
Entertainment,
8.88%, 8/1/08(b) 1,507.5
850,000 Multi Canal,
13.13%, 4/15/09 864.9
1,500,000 Premier Parks
Inc.,
9.25%, 4/1/06 1,563.8
1,000,000 Primedia Inc.,
7.63%, 4/1/08 985.0
1,000,000 Regal Cinemas,
8.88%, 12/15/10 957.5
1,000,000 SFX
Entertainment
Inc.,
9.13%, 12/1/08 1,027.5
1,500,000 Sinclair
Broadcasting,
9.00%, 7/15/07 1,522.5
1,000,000 Young
Broadcasting,
8.75%, 6/15/07 1,025.0
---------
Multimedia 20,439.5
Telecommunications (15.1%)
1,000,000 Call-Net,
8.00%, 8/15/08 972.5
1,000,000 Clearnet
Communications,
0.00%, 12/15/00 937.5
1,500,000 Comcast
Cellular,
9.50%, 5/1/07 1,702.5
1,000,000 Flag Limited,
8.25%,
1/30/08(b) 987.5
1,500,000 GST USA Inc.,
0.00%, 12/15/05 1,290.0
</TABLE>
See notes to financial statements.
58 Payden & Rygel Investment Group
<PAGE>
High Income Fund
Schedule of Portfolio Investments (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
2,000,000 Intermedia
Communications,
8.60%, 6/1/08 $ 1,995.0
500,000 Iridium
LLC/Capital
Corp., 13.00%,
7/15/05 250.0
1,500,000 IXC
Communications
Inc., 9.00%,
4/15/08 1,537.5
1,500,000 Level 3
Communications,
9.13%, 5/1/08 1,530.0
2,000,000 Mcleodusa Inc.,
9.25%, 7/15/07 2,090.0
1,500,000 Nextel
Communications,
0.00%, 2/15/07 1,147.5
1,000,000 Nextlink
Communications,
9.00%, 3/15/08 995.0
500,000 Nextlink
Communications,
9.00%, 3/15/08 325.0
1,500,000 Orange,
8.00%, 8/1/08 1,537.5
1,500,000 RSL
Communications,
9.13%, 3/1/08 1,470.0
----------
Telecommunications 18,767.5
Transportation (1.3%)
1,650,000 Northwest
Airlines
Corporation,
8.38%, 3/15/04 1,610.8
----------
Corporate Bonds 104,901.3
----------
Total (Cost -
$114,828.7)(a) (92.6%) $114,633.5
==========
</TABLE>
Percentages indicated are based on net assets of $123,767,394.
(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 $ 1,472,230
Unrealized depreciation (1,667,431)
-----------
Net unrealized depreciation $ (195,201)
===========
</TABLE>
(b) Security exempt from registration under Rule 144(b) 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 59
<PAGE>
Bunker Hill Money Market Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Amortized
Principal Security Cost
or Shares Description (000)
--------- ------------------ ---------
<C> <S> <C>
Asset Backed Securities
(5.8%)
1,500,000 WFS 99A-AL, $ 1,500.0
5.01%, 2/20/00
Mortgage Backed Securities
(4.3%)
1,096,658 FNMA 124584, 1,099.8
7.00%, 11/01/99
Commercial Paper (80.1%)
Basic Materials (5.8%)
1,500,000 Dupont (E.I.) CP, 1,498.2
4.84%, 5/10/99
Consumer Non-Cyclicals
(11.6%)
1,500,000 Coca Cola, 1,499.6
4.83%, 5/03/99
1,500,000 Procter & Gamble 1,494.8
CP,
4.82%, 5/27/99
---------
Consumer Non-
Cyclicals 2,994.4
Diversified Operations (3.9%)
1,000,000 GECC CP, 1,000.0
4.82%, 5/05/99
Energy (11.6%)
1,500,000 Chevron USA CP, 1,500.0
4.83%, 5/28/99
1,500,000 Shell Oil CP, 1,497.4
4.80%, 5/14/99
---------
Energy 2,997.4
Financials (29.0%)
1,000,000 Associates 1,005.2
Corporate Note,
6.68%, 9/17/99
</TABLE>
<TABLE>
<CAPTION>
Amortized
Principal Security Cost
or Shares Description (000)
--------- ------------------ ---------
<C> <S> <C>
1,000,000 CIT Group $ 1,002.3
Holdings,
6.10%, 8/09/99
3,000,000 Credit Suisse 2,995.6
First Boston,
4.82%, 5/12/99
1,000,000 Toronto Dominion, 1,000.8
5.64%, 7/14/99
1,500,000 Xerox Credit CP, 1,497.4
4.82%, 5/14/99
---------
Financials 7,501.3
Transportation (11.6%)
1,500,000 Ford Motor Credit 1,500.0
CP,
4.87%, 5/07/99
GMAC CP,
1,500,000 4.84%, 5/28/99 1,500.0
---------
Transportation 3,000.0
Utilities (6.8%)
Natural Rural
Utilities,
1,750,000 4.85%, 5/03/99 1,749.5
---------
Commercial Paper 20,740.8
---------
Investment Companies (9.3%)
Dreyfus Treasury,
2,419,262 4.61%, 5/03/99 2,419.3
---------
Total (Cost - $25,759.9)
(99.5%) $25,759.9
=========
</TABLE>
Percentages indicated are based on net assets of $25,899,425.
See notes to financial statements.
60 Payden & Rygel Investment Group
<PAGE>
Short Duration Tax Exempt Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
General Obligations (43.4%)
550,000 Conroe, TX Indt.
School Dist.,
(PSFG) , 4.00%,
2/15/00 $ 553.0
1,000,000 Dade County, FL
(FGIC),
12.00%, 10/01/01 1,191.3
500,000 Denver, CO
City/Co., 6.38%,
8/01/03, pre-
refunded 8/01/01 534.4
700,000 District of
Columbia (MBIA),
6.60%, 6/1/03(b) 733.4
300,000 District of
Columbia (MBIA),
6.60%, 6/1/03,
pre-refunded
6/1/00(b) 316.1
500,000 Howard County,
MD, 4.70%,
08/15/00 508.1
1,000,000 Lewisville, TX
Indt. School
Dist. (PSFG),
6.25%, 8/15/04 1,066.3
500,000 Memphis, TN
General
Obligation,
5.00%, 10/01/06 527.5
105,000 New York City,
NY, 6.00%,
Escrowed to
Maturity 8/1/00 108.4
395,000 New York City,
NY, 6.00%,
8/1/00 406.4
500,000 Pennsylvania
State, 5.125%,
9/15/02 522.5
500,000 Snohomish Co.,
WA School Dist.
002 (MBIA),
7.00%, 12/01/01 540.6
---------
General
Obligations 7,008.0
Revenue (50.0%)
Airport (9.2%)
1,000,000 Denver, CO
City/Co. Airport
(MBIA), 4.80%,
11/15/00 1,017.5
415,000 Denver, CO
City/Co.
Airport, 7.75%,
11/15/21, pre-
refunded
11/15/01 462.2
---------
Airport 1,479.7
Education (3.1%)
500,000 Youngstown, OH
City School
Dist. (AMBAC),
5.00%, 6/15/00 508.1
Electric & Gas (3.1%)
500,000 Amer. Pub.
Energy, NE Gas
Supply (AMBAC),
4.25%, 6/01/01 505.0
Health Care (13.7%)
500,000 MA State Health
& Ed. Fac.
Auth., Ptrs. HC,
5.00%, 7/01/01 513.1
1,000,000 NY State
Dormitory-Mental
Health Svcs.,
6.00%, 2/15/03 1,070.0
615,000 Phila., PA Hosp.
& Higher Ed.-
Temple Univ.,
5.00%, 11/15/00 623.5
---------
Health Care 2,206.6
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Resource Recovery (6.2%)
1,000,000 MA State Indust.
Finance Agency,
Ogden Haverhill,
4.20%, 12/1/99 $ 1,003.1
Transportation (6.2%)
1,000,000 Pocahontas
Parkway Assoc.,
VA, 5.00%,
8/15/05 1,009.9
Water & Sewer (8.5%)
200,000 Houston, TX
Water and Sewer
System (MBIA),
5.25%, 12/1/00 205.5
600,000 Louisville, KY
Waterworks,
5.75%, 11/15/13 628.5
500,000 OH State Water
Development
(AMBAC), 6.00%,
12/01/08 540.0
---------
Water & Sewer 1,374.0
---------
Revenue 8,086.4
Cash Equivalents (8.1%)
300,000 Gulf Coast, TX
Waste Disposal
Authority,
4.10%, 10/01/17 300.0
500,000 Maricopa Cnty AZ
IDR, 4.25%,
12/01/08 500.0
500,000 North Central TX
Health (MBIA),
4.25%, 10/01/15 500.0
---------
Cash Equivalents 1,300.0
---------
Total (Cost - $16,262.2)(a)
(101.5%) $16,394.4
=========
</TABLE>
AMBAC: Ambac Assurance Corporation
FGIC: Financial Guaranty Insurance Company
MBIA: MBIA Insurance Corp.
PSFG: Permanent School Fund Guarantee
Percentages indicated are based on net assets of $16,177,061.
(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 $144,982
Unrealized depreciation (12,791)
--------
Net unrealized appreciation $132,191
========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account.
See notes to financial statements.
Semi-Annual Report 61
<PAGE>
Tax Exempt Bond Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
General Obligations (28.2%)
Limited (1.7%)
1,000,000 Port of Seattle,
WA,
5.25%, 5/1/03 $ 1,047.5
Unlimited (26.5%)
1,500,000 Charleston
County, SC,
5.75%, 6/1/08 1,629.4
700,000 Clark Co., NV
School Dist.
(MBIA),
5.88%, 6/15/13,
pre-ref. 6/15/05 774.4
1,750,000 District of
Columbia (MBIA),
5.75%, 6/1/10 1,916.2
1,000,000 FL Dept. of
Transportation-
Right of Way,
6.00%, 7/1/07 1,118.8
1,000,000 Fort Worth, TX,
Indt. School
Dist. (PSFG),
0.00%, 2/15/06 746.2
995,000 Honolulu, HI,
City & County,
5.00%, 10/01/02 1,032.3
5,000 Honolulu, HI,
City & County,
Escrowed to
Maturity,
5.00%, 10/01/02 5.2
1,600,000 Jersey City, NJ,
6.25%, 10/1/10 1,836.0
1,200,000 Kingsport, TN
Public
Improvements,
5.60%, 9/1/03 1,293.0
500,000 Lake Orion, MI
Comm. School
Dist. (AMBAC),
5.80%, 5/1/15 540.6
1,000,000 Mississippi
State,
5.80%, 6/1/09 1,072.5
1,250,000 Pennsylvania
State (MBIA),
5.20%, 6/15/04 1,323.4
1,000,000 Texas Public
Finance
Authority,
5.38%, 10/1/03 1,061.3
1,000,000 Virginia State,
6.10%, 6/1/06 1,092.5
1,000,000 Washington
State,
5.25%, 9/1/05 1,062.5
---------
Unlimited 16,504.3
---------
General
Obligations 17,551.8
Revenue (69.1%)
Airport (6.3%)
700,000 Dade County, FL
Aviation-Miami
Int'l.(FSA),
5.75%, 10/1/05 763.0
1,000,000 Los Angeles, CA,
Department of
Airports (FGIC),
5.50%, 5/15/07 1,073.8
2,000,000 Philadelphia, PA
Auth. For
Indust. Develop.
(FGIC),
5.00%, 7/1/08 2,077.5
---------
Airport 3,914.3
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Education (14.8%)
1,000,000 Avon, IN Comm.
School Bldg.
Corp.(AMBAC),
5.25%, 1/1/22 $1,005.0
1,600,000 Georgetown
University, DC
(MBIA),
6.00%, 4/1/05(b) 1,756.0
1,250,000 NY State Dorm
Auth. (AMBAC),
6.125%, 7/1/07,
pre-ref.
7/1/04(b) 1,401.6
2,810,000 Univ. of Texas
Permanent Univ.
Fund,
5.90%, 7/1/02(b) 2,989.1
1,950,000 University of
Toledo, OH,
5.75%, 12/01/08 2,088.9
--------
Education 9,240.6
Electric & Gas (4.8%)
300,000 City of
Knoxville, TN
Gas System,
4.85%, 3/1/06 305.3
575,000 Indiana
Municipal Power
Agency (MBIA),
5.13%, 1/1/01 588.7
1,000,000 Long Island
Power Authority
(AMBAC),
5.50%, 12/1/06 1,085.0
1,000,000 MA Municipal
Wholesale
Electric Co.,
6.38%, 7/1/01 1,048.8
--------
Electric & Gas 3,027.8
Health Care (1.2%)
800,000 CA Health
Facilities Rev.,
Kaiser
Permanente,
5.00%, 10/1/18 764.0
Housing (4.0%)
450,000 CA Housing
Finance Agency
(MBIA),
5.20%, 8/1/26 458.4
840,000 ID Housing and
Finance Assoc.,
5.20%, 7/1/27(b) 852.6
1,000,000 Virginia State
Housing Dev.
Authority,
6.30%, 7/1/11(b) 1,045.0
170,000 Wisconsin
Housing &
Economic Dev.,
5.30%, 11/1/05 176.6
--------
Housing 2,532.6
Industrial Development
(3.5%)
2,000,000 NY Environ.
Facilities Corp.
(MBIA),
5.50%,
6/15/09(b) 2,160.0
Resource Recovery (1.8%)
1,115,000 MA State Indust.
Finance Agency,
Ogden Haverhill,
4.20%, 12/1/99 1,118.4
Sales Tax (1.8%)
1,000,000 MA State Grant
Anticipation
Notes (MBIA),
5.50%, 6/15/06 1,080.0
</TABLE>
62 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Special Revenue (4.2%)
1,380,000 Amer. Assn. Adv.
Science, DC
(AMBAC),
6.00%, 1/01/08 $ 1,540.4
1,000,000 Convention Ctr.
Auth., RI
(MBIA),
6.40%, 5/15/05,
pre-ref. 5/15/01 1,072.5
---------
Special Revenue 2,612.9
Student Loan (3.2%)
1,000,000 IL Student Loan
Assistance
Commission,
3.75%, 9/01/02 996.3
1,000,000 MA Educational
Financing
Authority
(MBIA),
4.55%, 12/1/06 1,007.5
---------
Student Loan 2,003.8
Transportation (17.3%)
1,025,000 Arapahoe Co.,
CO, E-470,
6.90%, 8/31/15,
pre-refunded
8/31/05 1,212.1
1,500,000 Arapahoe Co.,
CO, E-470,
6.95%, 8/31/20,
pre-refunded
8/31/05 1,777.5
1,000,000 MA Bay
Transportation
Authority,
5.60%, 3/1/08 1,092.5
1,500,000 NY Metro.
Transportation
Authority
(MBIA),
5.00%, 7/1/12 1,535.6
2,500,000 Pocahontas
Parkway Assoc.,
VA, 5.25%,
8/15/07(b) 2,543.8
1,465,000 Port Authority
NY & NJ,
5.80%, 12/1/12 1,573.0
1,000,000 Southeastern
Pennsylvania
Trans. Auth.
(FGIC),
5.25%, 3/01/15 1,033.7
---------
Transportation 10,768.2
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Water & Sewer (6.2%)
2,000,000 District of
Columbia Water &
Sewer Auth.
(FSA),
5.50%,
10/1/17(b) $ 2,135.0
600,000 Louisville, KY
Waterworks,
5.75%, 11/15/13 628.5
1,000,000 Ohio State Water
Development
Auth., (AMBAC)
5.70%, 6/1/09 1,083.7
---------
Water & Sewer 3,847.2
---------
Revenue 43,069.8
Cash Equivalents (1.1%)
400,000 Delta Co., MI
Economic
Development
Corp.,
4.25%, 12/01/23 400.0
300,000 Sublette Co., WY
Pollution
Control Revenue,
4.35%, 7/01/17 300.0
---------
Cash Equivalents 700.0
---------
Total (Cost - $59,536.8)(a)
(98.4%) $61,321.6
=========
</TABLE>
AMBAC: AMBAC Indemnity Corporation
FGIC: Financial Guaranty Insurance Company
FSA: Financial Security Assurance Inc.
MBIA: MBIA Insurance Corp.
PSFG: Permanent School Fund Guarantee
Percentages indicated are based on net assets of $62,304,519.
(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 $1,863,202
Unrealized depreciation (78,402)
----------
Net unrealized appreciation $1,784,800
==========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account as collateral.
See notes to financial statements.
Semi-Annual Report 63
<PAGE>
California Municipal Income Fund
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
April 30, 1999
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
General Obligations (12.9%)
Unlimited
1,000,000 California
State,
5.50%, 2/01/10 $1,092.5
1,000,000 Commonwealth of
Puerto Rico,
5.25%, 7/1/12(b) 1,058.7
200,000 Escondido, CA
High School
Dist. (MBIA), 224.7
5.95%, 11/1/08
400,000 Los Angeles City
Gen. Obl.
(FGIC),
5.25%, 9/1/09 431.0
550,000 Los Angeles City
Gen. Obl.
(FGIC),
5.25%, 9/1/10 591.3
200,000 Mountain View,
Los Altos
Unified H.S.
Dist.,
5.00%, 5/1/05 211.3
--------
General
Obligations 3,609.5
Revenue (58.0%)
Airport (5.3%)
200,000 Los Angeles
Dept. of
Airports (FGIC),
5.50%, 5/15/07 214.7
1,000,000 S.F. City/Co.
Airport (AMBAC),
6.50%,
5/01/13(b) 1,091.3
175,000 S.F. City/Co.
Airport (MBIA),
5.00%, 5/1/07 185.3
--------
Airport 1,491.3
Education (6.5%)
1,000,000 California Ed.
Facilities,
Stanford Univ., 1,072.5
5.25%, 12/01/13
700,000 Univ. of Calif.
(MBIA),
6.38%, 9/1/19,
Pre-refunded
9/1/02 774.4
--------
Education 1,846.9
Electric & Gas (12.4%)
500,000 Los Angeles
Dept. of Water &
Power,
6.00%,
8/15/32(b) 537.5
300,000 Northern Calif.
Power Agency
(AMBAC),
5.25%, 8/01/14 313.9
155,000 Northern Calif.
Power Agency
(MBIA),
5.60%, 7/1/06 169.5
1,000,000 Puerto Rico
Elec. Power
Auth. (MBIA),
5.50%, 7/1/08 1,095.0
1,075,000 Puerto Rico
Elec. Power
Auth., 6.80%,
7/02/00 1,096.1
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
220,000 So. Calif.
Public Power
Auth. (AMBAC),
6.00%, 7/1/07 $ 249.2
-------
Electric & Gas 3,461.2
Health Care (6.1%)
200,000 CA Health
Facilities,
Kaiser
Permanente,
5.00%, 10/1/18 191.0
150,000 CA Health
Facilities,
Sisters of Prov.
5.50%, 10/1/06 161.2
400,000 CA Health
Facilities,
Sutter Health
(MBIA),
5.00%, 8/15/18 398.0
1,000,000 CA Statewide
Community,
Internext Group,
5.38%, 4/01/17 990.0
-------
Health Care 1,740.2
Lease (13.0%)
1,000,000 Beverly Hills
Pub. Finance
Auth. (MBIA),
5.125%, 6/01/18 1,015.0
400,000 Contra, Costa
Co. Public
Finance (MBIA),
5.25%, 6/01/14 420.0
300,000 L.A. Co. Capital
Asset Leasing
Corp.,
4.00%, 6/1/00 301.4
400,000 Mountain View
Cap. Improv.
Fing. (MBIA),
6.50%,
8/01/16(b) 430.5
400,000 Orange Co., CA
Cert. of Part.
(AMBAC)
6.38%,
6/01/11(b) 434.5
500,000 San Diego Co.
Certificate of
Participation,
5.50%, 2/1/13 507.5
500,000 San Mateo Co.
Joint Powers
Auth. (FSA),
5.00%, 7/15/11 521.9
-------
Lease 3,630.8
Special Revenue (7.4%)
1,055,000 Marin County
Emergency Radio
(AMBAC),
5.00%,
8/15/14(b) 1,080.1
1,000,000 Santa Clara Ins.
Funding,
3.65%, 4/01/12,
Mandatory Put
4/1/02 1,001.2
-------
Special Revenue 2,081.3
Transportation (1.5%)
400,000 Alameda Corridor
Trans. Auth.
(MBIA),
5.13%,
10/01/16(b) 410.5
</TABLE>
64 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Water & Sewer (5.8%)
1,000,000 California State
Dept. of Water,
5.00%, 12/01/22 $ 983.8
200,000 East Bay
Municipal
Utility District
(MBIA), 5.00%,
6/1/05 211.2
400,000 Los Angeles
Wastewater
System (FGIC),
5.00%, 6/01/10 419.5
--------
Water & Sewer 1,614.5
--------
Revenue 16,276.7
Sales Tax (4.3%)
1,000,000 L.A. Co. Metro.
Trans. Authority
(FSA),
5.25%, 7/01/07 1,076.2
125,000 San Diego Co.
Regional Trans.
Comm. (FGIC),
5.25%, 4/1/06 134.1
--------
Sales Tax 1,210.3
Special Tax (16.4%)
400,000 Inglewood Redev.
Agency (AMBAC),
5.25%, 5/1/16 421.0
1,000,000 Irvine Pub.
Facilities &
Infrast.
(AMBAC),
3.55%, 9/02/03 993.7
1,100,000 Orange Co., CA
Teeter Plan
(AMBAC),
6.25%, 11/1/14 1,145.4
830,000 Paramount Redev.
Agency, 7.35%,
8/01/21, pre-
ref. 8/01/01(b) 915.1
910,000 San Diego Public
Fac. Finan.
Auth. (AMBAC),
3.50%, 9/02/01 911.1
200,000 San Jose Redev.
Agency Tax
Alloc. (AMBAC),
4.75%, 8/1/03 208.3
--------
Special Tax 4,594.6
</TABLE>
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------- ---------------- -----------
<C> <S> <C>
Cash Equivalents (6.8%)
500,000 CA Health
Facilities,
Sutter Health
(FSA),
4.20%, 7/01/22 $ 500.0
1,000,000 CA Pollution
Control Fing.,
Pac. Gas &
Elec.,
4.10%, 11/01/26 1,000.0
400,000 Orange County
Water District,
4.10%, 08/15/15 400.0
---------
Cash Equivalents 1,900.0
---------
Total (Cost - $27,679.3)(a)
(98.4%) $27,591.1
=========
</TABLE>
AMBAC: AMBAC Indemnity Corporation
FGIC: Financial Guaranty Insurance Company
FSA: Financial Security Assurance Inc.
MBIA: MBIA Insurance Corp.
PSF: Permanent School Fund
Percentages indicated are based on net assets of $28,039,779.
(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 $ 17,210
Unrealized depreciation (105,391)
---------
Net unrealized depreciation $ (88,181)
=========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account as collateral.
See notes to financial statements.
Semi-Annual Report 65
<PAGE>
(This page intentionally left blank)
66 Payden & Rygel Investment Group
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
April 30, 1999
1. Organization
Each of the Payden & Rygel Limited Maturity Fund, Payden & Rygel Short Bond
Fund, Payden & Rygel U.S. Government Fund, Payden & Rygel Investment Quality
Bond Fund, Payden & Rygel Total Return Fund, Payden & Rygel High Income Fund,
Bunker Hill Money Market Fund, Payden & Rygel Short Duration Tax Exempt Fund,
Payden & Rygel Tax Exempt Bond Fund, Payden & Rygel California Municipal Income
Fund, Payden & Rygel Growth & Income Fund, Payden & Rygel Market Return Fund,
Payden & Rygel Small Cap Value Stock Fund, Payden & Rygel Small Cap Growth
Stock Fund, Payden & Rygel Global Short Bond Fund, Payden & Rygel Global Fixed
Income Fund, Payden & Rygel Emerging Markets Bond Fund, Payden & Rygel Global
Balanced Fund, Payden & Rygel European Growth & Income Fund, Payden & Rygel
International Equity Fund, and Payden & Rygel EuroDirect Fund (the "Funds") is
a series of The Payden & Rygel Investment Group (the "Group"). The Group is a
no-load, open-end management investment company organized as a Massachusetts
business trust on January 22, 1992 and registered under the Investment Company
Act of 1940, as amended (the "1940 Act"). Each of the Funds, other than the
High Income, Bunker Hill Money Market and International Equity 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 Limited Maturity Fund seeks a total return that, over time, is greater than
money market funds and is consistent with the preservation of capital, and each
of the Short Bond, U.S. Government, Investment Quality Bond and Total Return
Funds seeks a high level of total return consistent with preservation of
capital. In order to achieve these objectives, each of these Funds invests
primarily in debt obligations.
Each of the Limited Maturity, Short Bond and Investment Quality Bond Funds
invests in a wide variety of investment grade debt securities payable primarily
in U.S. dollars, including (1) debt obligations issued or guaranteed by the
U.S. Government and foreign governments and their agencies and
instrumentalities, political subdivisions of foreign governments and
supranational organizations, (2) debt securities and commercial paper issued by
U.S. and foreign companies, and (3) U.S. and foreign mortgage-backed and asset-
backed bonds.
The U.S. Government Fund invests in U.S. Government Obligations, i.e., U.S.
Treasury bonds, notes and bills and other bonds and obligations issued or
guaranteed by the U.S. Government, U.S. Government-sponsored enterprises, or
Federal agencies.
Semi-Annual Report 67
<PAGE>
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
The Total Return Fund invests in a wide variety of debt instruments and income-
producing securities, payable in both U.S. dollars and foreign currencies,
including (1) debt obligations issued or guaranteed by the U.S. Government and
foreign governments and their agencies and instrumentalities, political
subdivisions of foreign governments and supranational organizations, (2) debt
securities and commercial paper issued by U.S. and foreign companies, (3) U.S.
and foreign mortgage-backed and asset-backed bonds, (4) dividend-paying
convertible stock, and (5) convertible bonds and preferred stock. The Fund
generally invests in investment grade debt securities, but may invest up to 25%
of its assets in below investment grade debt securities. Securities rated below
investment grade are speculative and subject to greater market fluctuations and
greater risk of loss of principal and income than higher rated bonds.
The High Income Fund seeks high current income while providing for capital
appreciation by investing in a diversified portfolio of higher yielding, below
investment grade bonds. The Fund invests at least 65% of its assets in below
investment grade bonds and up to 20% of its assets in convertible bonds,
preferred stocks, or bonds of issuers from "emerging market" countries.
The Bunker Hill Money Market Fund seeks to provide investors with liquidity, a
stable share price, and as high a level of current income as is consistent with
the preservation of principal and liquidity. The Fund invests only in high-
quality corporate, bank and government debt securities, and these debt
securities are rated only in the highest category for short-term securities by
at least two nationally recognized rating services or, if unrated, must be
determined by Payden & Rygel (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.
Each of the Short Duration Tax Exempt, Tax Exempt Bond and California Municipal
Income Funds seeks to earn federal tax-free income, consistent with
preservation of capital. Each of the Funds invests at least 80% of its assets
in debt obligations which pay interest income exempt from federal income tax.
In addition, the California Municipal Income Fund seeks to earn income that is
exempt for California state income tax, and invests at least 65% of its assets
in debt obligations which pay interest income exempt from California personal
income tax. Each of the Funds may invest up to 25% of its assets in below
investment grade securities.
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
68 Payden & Rygel Investment Group
<PAGE>
Dow." The remaining assets are invested in equity-based derivative instruments
intended to replicate the total return of the Standard & Poor's 500 Stock Index
("S&P 500" Index), normally Standard & Poor's Depository Receipts, and equity
index mutual funds.
The Market Return Fund seeks a total return in excess of the S&P 500 Index. To
achieve this objective, the Market Return Fund divides the investment of its
assets between a portfolio of debt and other income-producing securities and a
portfolio of equity-based derivative instruments, such as stock index futures
contracts and equity swap contracts.
The Small Cap Value Stock Fund (formerly called 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 is low relative to the growth rate of the
company's cash flow and/or the growth rate of its sales; (b) a demonstrated
ability to generate free cash flow internally; and (c) a positive catalyst,
e.g., a new product, management change, or successful implementation of a
business plan.
The Small Cap Growth Stock Fund (formerly called 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) the potential of sustainable levels of profitability greater than
their current levels, based on factors such as industry profit levels and
competitiveness and the company's competitive advantages; (b) the potential to
achieve above average returns on equity through the efficient use of assets and
adequate margins; and (c) above average growth in earnings before interest and
taxes.
Each of the Global Short Bond and Global Fixed Income Funds seeks a high level
of total return consistent with preservation of capital. Each of the Funds
invests in a wide variety of investment grade debt securities payable in U.S.
dollars and foreign currencies, including (1) debt obligations issued or
guaranteed by the U.S. Government and foreign governments and their agencies
and instrumentalities, political subdivisions of foreign governments and
supranational organizations, (2) debt securities and commercial paper issued by
U.S. and foreign companies, and (3) U.S. and foreign mortgage-backed and asset-
backed bonds.
The Emerging Markets Bond Fund seeks a high level of total return. The Fund
invests at least 75% of its assets in debt securities issued by governments,
agencies and instrumentalities of emerging market countries, and corporations
organized or headquartered in emerging market countries. Substantially all of
these securities are rated below investment grade.
Semi-Annual Report 69
<PAGE>
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
The Global Balanced Fund seeks long-term capital appreciation. The Fund divides
the investment of its assets between a common stock portfolio and a debt
securities portfolio. The investment process includes allocation decisions
between debt securities and common stocks, between U.S. issuers and foreign
issuers, between issuers in Japan and issuers in other foreign countries and
between securities payable in U.S. dollars and in foreign currencies.
As indicated below in Note 6, Fund Termination, the International Equity Fund
is scheduled to close on June 30, 1999.
The European Growth & Income Fund seeks capital appreciation and some current
income. The Fund invests primarily in common stocks of approximately 60 issuers
organized or headquartered in European countries with developed capital
markets. These issuers have the lowest "peg ratios" of the common stocks with
the largest market capitalizations in Europe. A company's "peg ratio" is the
ratio of the company's current price/earnings ratio as compared to the latest
published long-term earnings per share growth forecast for the company.
The EuroDirect Fund seeks long term capital appreciation. The Fund divides the
investment of its assets between an equity portfolio and a debt securities
portfolio of companies primarily located in European countries with developed
capital markets, and the securities may be payable in U.S. dollars and in
foreign currencies. The investment approach is analogous to that employed by
the Global Balanced Fund.
There can, however, be no assurance that any of the Funds' investment
objectives will be achieved.
The Group is authorized to issue an unlimited number of shares, which are units
of beneficial interest. Each of the Funds offers Class R shares.
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
70 Payden & Rygel Investment Group
<PAGE>
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.
Securities which may have a bid-ask spread greater than ten (10) basis points
may be valued, pursuant to guidelines established by the Board of Trustees,
with reference to fixed income securities the prices of which are more readily
obtainable and the risk of which is comparable to the securities being valued.
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-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. Each of the
Total Return, High Income, Market Return, Global Short Bond, Global Fixed
Income, Emerging Markets Bond, Global Balanced, European Growth & Income,
International Equity and EuroDirect Funds may purchase securities that are
payable in foreign currencies. For each of these Funds, investment securities,
other assets and liabilities denominated in a foreign
Semi-Annual Report 71
<PAGE>
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
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 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
Each 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 option transactions) writes a covered call or put option, an amount
equal to the premium received is included in that Fund's statement of assets
and liabilities as a liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. If an
option expires on its stipulated expiration date or if the Fund enters into a
closing purchase transaction, a gain or loss is realized. If a written call
option is exercised, a gain or loss is realized for the sale of the underlying
security and the proceeds from the sale are increased by the premium originally
received. If a written put option is exercised, the cost of the security
acquired is decreased by the premium originally received. 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.
72 Payden & Rygel Investment Group
<PAGE>
When any of the Funds (except Bunker Hill Money Market Fund, which does not
invest in 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
Each 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 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.
Each of the Total Return, High Income, Growth & Income, Market Return, Small
Cap Value Stock, Small Cap Growth Stock, Global Balanced, European Growth &
Income, International Equity and EuroDirect Funds may invest in stock index
futures contracts, which are agreements 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
Semi-Annual Report 73
<PAGE>
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
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.
Equity Swap Contracts
Each of the Total Return, Growth & Income, Market Return, Global Balanced and
International Equity Funds may enter into equity swap transactions, which
involve an agreement between the Fund and another party to exchange payments
calculated as if they were interest on a fictitious ("notional") principal
amount. A Fund will typically pay a floating rate of interest and receive the
total return of a specified equity index. A Fund usually enters into such
transactions on a "net" basis, with the Fund receiving or paying, as the case
may be, only the net amounts of the two payment streams. The net amount of the
excess or deficiency, if any, of the Fund's obligations over its entitlements
with respect to each swap is accrued on a daily basis and is recorded as an
unrealized gain or loss by that Fund.
These Funds invest in swap transactions to permit the Funds to meet their
objectives at a lower cost than investing directly in equity securities, while
permitting the equivalent of an investment in a portfolio of equity securities.
The potential risk to a Fund is that the swap position may correlate
imperfectly with the markets or the asset or liability being hedged.
Forward Currency Contracts
Each of the Total Return, High Income, Market Return, Global Short Bond, Global
Fixed Income, Emerging Markets Bond, Global Balanced, European Growth & Income,
International Equity and EuroDirect 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
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.
74 Payden & Rygel Investment Group
<PAGE>
TBA Sale Commitments
Each Fund may enter into TBA sale commitments, such as dollar roll agreements,
to hedge its portfolio position or to sell mortgage-backed securities it owns
under delayed delivery arrangements. Proceeds from TBA sale commitments are not
received until the contractual settlement date. During the time a TBA sale
commitment is outstanding, equivalent deliverable securities, or an offsetting
TBA purchase commitment deliverable on or before the sale commitment date, are
held as "cover" for the transaction.
Unsettled TBA sale commitments are valued at the current market value of the
underling securities, generally according to the procedures described under
"Securities Valuation" above. The contact is "marked-to-market" daily and the
change in the market value is recorded by the Fund as an unrealized gain or
loss. If the TBA sale commitment is closed through the acquisition of an
offsetting purchase commitment, the Fund realizes a gain or loss from the sale
of the securities based upon the unit price established at the date the
commitment was entered into.
Delayed Delivery Transactions
Each Fund 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
Emerging Markets Bond, Global Balanced, International Equity, European Growth &
Income, Growth & Income and High Income Funds which are declared and paid
quarterly, (ii) the EuroDirect, Small Cap Value Stock and Small Cap Growth
Stock Funds which are declared and paid semi-annually, and (iii) the Bunker
Hill Money Market Fund which accrued daily and declared 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.
Semi-Annual Report 75
<PAGE>
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
Federal Income Taxes
It is the policy of each Fund to meet the requirements for qualification as a
regulated investment company as defined in applicable sections of the Internal
Revenue Code (the "Code"), and to make distributions of net investment income
and net realized gains sufficient to relieve it from all Federal income or
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.
Each Fund files a tax return annually using tax accounting methods required
under provisions of the Code, which may differ from generally accepted
accounting principles, the basis on which these financial statements are
prepared. The differences arise primarily from the treatment of foreign
currency transactions and futures contracts and the deferral of certain losses
under Federal income tax regulations. Accordingly, the 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.
76 Payden & Rygel Investment Group
<PAGE>
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, 1999, were as
follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Global Short Bond Fund................................ $259,175,048 $223,535,601
Global Fixed Income Fund.............................. 354,175,722 316,136,413
Emerging Markets Bond Fund............................ 17,659,269 10,605,111
Global Balanced Fund.................................. 2,149,968 2,258,935
International Equity Fund............................. 1,762,406 16,610,339
European Growth & Income Fund......................... 29,992,339 36,263,155
Growth & Income Fund.................................. 13,893,614 11,642,437
Market Return Fund.................................... 30,838,359 5,606,506
Small Cap Value Stock Fund............................ 2,121,966 3,935,260
Small Cap Growth Stock Fund........................... 432,350 605,687
Limited Maturity Fund................................. 10,102,600 21,760,944
Short Bond Fund....................................... 79,433,432 82,145,023
U.S. Government Fund.................................. 139,853,359 137,869,922
Investment Quality Bond Fund.......................... 443,940,809 418,677,467
Total Return Fund..................................... 231,029,101 238,715,574
High Income Fund...................................... 58,454,790 28,555,961
Short Duration Tax Exempt Fund........................ 6,614,956 7,549,109
Tax Exempt Bond Fund.................................. 10,619,640 15,779,153
California Municipal Fund............................. 26,889,963 1,068,500
</TABLE>
Purchases and sales of long-term U.S. Government securities for those Funds
with activity for the period ended April 30, 1999, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Global Short Bond Fund............................... $ 27,340,234 $ 53,581,693
Global Fixed Income Fund............................. 56,728,281 134,502,219
Global Balanced Fund................................. 324,422 217,402
Market Return Fund................................... 10,407,656 11,540,289
Limited Maturity Fund................................ 29,367,266 20,525,970
Short Bond Fund...................................... 160,575,813 151,909,078
U.S. Government Fund................................. 68,790,121 66,239,106
Investment Quality Bond Fund......................... 37,061,953 18,415,762
Total Return Fund.................................... 12,268,800 6,515,375
</TABLE>
Semi-Annual Report 77
<PAGE>
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
The Investment Quality Bond Fund's activity in written options for the period
ended April 30, 1999 was as follows:
<TABLE>
<CAPTION>
Number of Contracts
Contracts Premium
---------- -----------
<S> <C> <C>
Options outstanding at beginning of period............ 800 $ 2,189,750
Options sold.......................................... 1,200 2,736,625
Options canceled in closing transactions.............. (2,000) (4,926,375)
Options expired prior to exercise..................... 0 0
---------- -----------
Options outstanding at end of period.................. 0 $ 0
</TABLE>
The Total Return Fund's activity in written options for the period ended April
30, 1999 was as follows:
<TABLE>
<CAPTION>
Number of Contracts
Contracts Premium
--------- -----------
<S> <C> <C>
Options outstanding at beginning of period............. 800 $ 2,189,750
Options sold........................................... 800 1,396,000
Options canceled in closing transactions............... (1,600) (3,585,750)
Options expired prior to exercise...................... 0 0
--------- -----------
Options outstanding at end of period................... 0 $ 0
</TABLE>
The Small Cap Value Stock Fund's activity in written options for the period
ended April 30, 1999 was as follows:
<TABLE>
<CAPTION>
Number of Contracts
Contracts Premium
--------- ---------
<S> <C> <C>
Options outstanding at beginning of period............... 0 $ 0
Options sold............................................. 50 13,600
Options canceled in closing transactions................. (50) (13,600)
Options expired prior to exercise........................ 0 0
--------- --------
Options outstanding at end of period..................... 0 $ 0
</TABLE>
None of the other Funds had activity in written options for the period ended
April 30, 1999.
78 Payden & Rygel Investment Group
<PAGE>
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, 1999 are as follows:
<TABLE>
<CAPTION>
Cumulative Amortized
Organization Organization
Costs Expenses
------------ ------------
<S> <C> <C>
Global Short Bond Fund................................ $ 2,047 $1,784
Global Balanced Fund.................................. 4,063 3,236
International Equity Fund............................. 3,799 3,025
European Growth & Income Fund......................... 4,958 3,030
Growth & Income Fund.................................. 11,447 9,514
Small Cap Value Stock Fund............................ 6,641 2,947
Small Cap Growth Stock Fund........................... 6,641 2,947
Total Return Fund..................................... 3,255 2,593
High Income Fund...................................... 625 277
Bunker Hill Money Market Fund......................... 848 492
</TABLE>
5. Related Party Transactions
Payden & Rygel provides investment advisory services to the Funds. 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,
0.28% on the next $500 million, and 0.25% on net assets over $1 billion. The
rate for the California Municipal Income Fund is 0.32% on net assets up to $1
billion and 0.25% on net assets over $1 billion. The rate for the U.S.
Government, Limited Maturity, Short 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
Emerging Markets Bond Fund is 0.45% on all net assets. The rate for the
EuroDirect Fund is 0.65% on net assets up to $1 billion and 0.55% on net
Semi-Annual Report 79
<PAGE>
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
April 30, 1999
assets over $1 billion. The rate for the Small Cap Value Stock Fund and Small
Cap 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 its fee for advisory services
for each of the Emerging Markets Bond, EuroDirect and California Municipal
income Funds through June 30, 1999. In addition, Payden & Rygel has agreed to
guarantee that, for so long as it acts as investment adviser to a Fund, the
total annual fund operating expenses of the Fund (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 an annualized basis. Finally,
Payden & Rygel has agreed to reduce its fees or absorb expenses to limit each
Fund's net annual fund operating expenses (including advisory fees, but
excluding interest, taxes, portfolio transaction expenses, blue sky fees, 12b-1
plan fees and extraordinary expenses) to the percentage indicated below of that
Fund's average daily net assets on an annualized basis. This contract has a
one-year term through October 31, 1999, which is renewable at that time.
<TABLE>
<CAPTION>
Contract
Expense Expense
Guarantee Limit
--------- --------
<S> <C> <C>
Global Short Bond Fund....................................... 0.70% 0.50%
Global Fixed Income Fund..................................... 0.70% n/a
Emerging Markets Bond........................................ 1.25% 0.80%
Global Balanced Fund......................................... 0.85% 0.70%
International Equity Fund.................................... 1.05% 0.90%
European Growth & Income Fund................................ 0.90% 0.90%
EuroDirect................................................... 1.25% 0.85%
Growth & Income Fund......................................... 0.80% 0.75%
Market Return Fund........................................... 0.60% 0.45%
Small Cap Value Stock Fund................................... 1.00% 0.80%
Small Cap Growth Stock Fund.................................. 1.00% 0.80%
Limited Maturity Fund........................................ 0.60% 0.40%
Short Bond Fund.............................................. 0.60% 0.40%
U.S. Government Fund......................................... 0.60% 0.40%
Investment Quality Bond Fund................................. 0.60% 0.50%
Total Return Fund............................................ 0.60% 0.50%
High Income Fund............................................. 0.75% 0.60%
Bunker Hill Money Market Fund................................ 0.50% 0.30%
Short Duration Tax Exempt Fund............................... 0.60% 0.50%
Tax Exempt Bond Fund......................................... 0.60% 0.50%
California Municipal......................................... 0.80% 0.50%
</TABLE>
80 Payden & Rygel Investment Group
<PAGE>
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.
For each of the Global Balanced, International Equity, European Growth & Income
and EuroDirect Funds, the Advisor has entered into a sub-advisory agreement
with Metzler/Payden LLC where the Advisor passes through to the sub-advisor
100% of its advisor fee earned and payable. The sub-advisor fee does not
represent a separate or additional charge against the Funds. Metzler/Payden LLC
is a joint venture between the Advisor and Metzler Asset Management GmbH, an
affiliate of B. Metzler seel. Sohn & Co. Holding AG, a major German financial
institution located in Frankfurt, Germany. Metzler/Payden LLC is owned 50% by
the Advisor and 50% by MP&R Ventures, Inc. a Metzler affiliate.
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 0.06%.
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.
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.
6. Fund Termination
On April 13, 1999 the Board of Trustees approved the closing of the Payden &
Rygel International Equity Fund, which will take place effective June 30, 1999.
At that time, all portfolio holdings will be liquidated, expenses owed to
service providers will be paid and a final distribution of net investment
income and net realized capital gains will be made.
Semi-Annual Report 81
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Global Short Bond Fund
==================================================
Period Ended Year ended Year ended Period ended
April 30, October 31, October 31, October 31,
1999 1998 1997 1996(a)
============ =========== =========== ============
<S> <C> <C> <C> <C>
Net asset value -- beginning
of period.................. $ 10.31 $ 10.17 $ 10.07 $ 10.00
-------- -------- -------- -------
Income (loss) from
investment activities:
Net investment income...... 0.75 0.92 0.58 0.05
Net realized and unrealized
gains (losses)............ (0.52) (0.15) 0.11 0.06
-------- -------- -------- -------
Total from investment
activities.............. 0.23 0.77 0.69 0.11
-------- -------- -------- -------
Distributions to
shareholders:
From net investment
income.................... (0.65) (0.63) (0.59) (0.04)
In excess of net investment
income....................
From net realized gains....
In excess of net realized
gains.....................
-------- -------- -------- -------
Total distributions to
shareholders.............. (0.65) (0.63) (0.59) (0.04)
-------- -------- -------- -------
Net asset value -- end of
period..................... $ 9.89 $ 10.31 $ 10.17 $ 10.07
======== ======== ======== =======
Total return................ 2.31%* 7.87% 7.02% 1.10%*
======== ======== ======== =======
Ratios/supplemental data:
Net assets, end of period
(000)..................... $255,152 $251,609 $220,865 $28,913
Ratio of expenses to
average net assets........ 0.50%** 0.44% 0.45% 0.45%**
Ratio of net investment
income to average net
assets.................... 3.93%** 4.38% 4.84% 4.86%**
Ratio of expenses to
average net assets prior
to subsidies and waivers.. 0.50%** 0.51% 0.53% 2.31%**
Ratio of net investment
income to average net
assets
prior to subsidies and
waivers................... 3.93%** 4.31% 4.76% 3.00%**
Portfolio turnover rate.... 228%** 245% 219% 0%**
</TABLE>
- --------
The Funds commenced operations on following dates:
<TABLE>
<S> <C>
(a) September 18, 1996. (f) January 1, 1995.
(b) December 9, 1996. (g) December 17, 1997.
(c) June 30, 1997. (h) December 30, 1997.
(d) November 1, 1996. (i) December 17, 1998.
(e) December 1, 1995.
</TABLE>
* Not annualized
** Annualized
See notes to financial statements.
82 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Emerging
Markets Bond
Global Fixed Income Fund Fund
==========================================================================
Period ended Year ended Year ended Year ended Year ended Period ended
April 30, October 31, October 31, October 31, October 31, April 30,
1999 1998 1997 1996 1995 1999(i)
============ =========== =========== =========== =========== ============
<S> <C> <C> <C> <C> <C>
$ 10.91 $ 10.16 $ 10.35 $ 10.32 $ 9.77 $ 10.00
-------- -------- -------- -------- -------- -------
0.57 0.45 1.03 0.54 0.89 0.31
(0.33) 0.72 (0.16) 0.19 0.53 0.81
-------- -------- -------- -------- -------- -------
0.24 1.17 0.87 0.73 1.42 1.12
-------- -------- -------- -------- -------- -------
(0.46) (0.42) (1.06) (0.70) (0.87) (0.15)
(0.33)
-------- -------- -------- -------- -------- -------
(0.79) (0.42) (1.06) (0.70) (0.87) (0.15)
-------- -------- -------- -------- -------- -------
$ 10.36 $ 10.91 $ 10.16 $ 10.35 $ 10.32 $ 10.97
======== ======== ======== ======== ======== =======
2.30%* 11.81% 8.84% 7.41% 15.10% 11.31%*
======== ======== ======== ======== ======== =======
$537,863 $524,650 $535,644 $651,165 $540,041 $10,672
0.50%** 0.49% 0.49% 0.53% 0.50% 0.80%**
4.43%** 5.13% 5.69% 5.67% 8.94% 9.40%**
0.50%** 0.49% 0.49% 0.53% 0.50% 1.67%**
4.43%** 5.13% 5.69% 5.67% 8.94% 8.53%**
158%** 223% 289% 176% 227% 410%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 83
<PAGE>
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Global Balanced Fund
======================================
Period ended Year ended Period ended
April 30, October 31, October 31,
1999 1998 1997(b)
============ =========== =============
<S> <C> <C> <C>
Net asset value -- beginning of
period.......................... $10.84 $10.79 $ 10.00
------ ------ -------
Income (loss) from investment
activities:
Net investment income.......... 0.04 0.20 0.05
Net realized and unrealized
gains (losses)................ 1.33 0.63 0.90
------ ------ -------
Total from investment
activities.................. 1.37 0.83 0.95
------ ------ -------
Distributions to shareholders:
From net investment income..... (0.04) (0.17) (0.05)
In excess of net investment
income........................
From net realized gains........ (0.68) (0.61) (0.11)
In excess of net realized
gains.........................
------ ------ -------
Total distributions to
shareholders................ (0.72) (0.78) (0.16)
------ ------ -------
Net asset value -- end of
period.......................... $11.49 $10.84 $ 10.79
====== ====== =======
Total return..................... 12.80%* 8.21% 9.49%*
====== ====== =======
Ratios/supplemental data:
Net assets, end of period
(000)......................... $8,048 $7,078 $10,312
Ratio of expenses to average
net assets.................... 0.70%** 0.69% 0.70%**
Ratio of net investment income
to average net assets......... 2.18%** 3.11% 3.32%**
Ratio of expenses to average
net assets prior to subsidies
and waivers................... 1.76%** 1.43% 1.64%**
Ratio of net investment income
to average net assets prior to
subsidies and waivers......... 1.12%** 2.37% 2.38%**
Portfolio turnover rate........ 75%** 156% 211%**
</TABLE>
- --------
The Funds commenced operations on following dates:
(a) September 18, 1996. (f) January 1, 1995.
(b) December 9, 1996. (g) December 17, 1997.
(c) June 30, 1997. (h) December 30, 1997.
(d) November 1, 1996. (i) December 17, 1998.
(e) December 1, 1995.
* Not annualized
** Annualized
See notes to financial statements.
84 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
International European Growth & EuroDirect
Equity Fund Income Fund Fund
======================================= ====================================== ============
Period ended Year ended Period ended Period ended Year ended Period ended Period ended
April 30, October 31, October 31, April 30, October 31, October 31, April 30,
1999 1998 1997(b) 1999 1998 1997(c) 1999(i)
============ =========== ============ ============ =========== ============ ============
<S> <C> <C> <C> <C> <C> <C>
$ 10.77 $ 10.75 $ 10.00 $ 11.46 $ 10.19 $ 10.00 $ 10.00
------- ------- ------- ------- ------- ------- -------
0.13 0.16 (0.28) (0.02) 0.17 (0.04) 0.14
1.00 (0.07) 1.04 1.08 1.28 0.23 0.36
------- ------- ------- ------- ------- ------- -------
1.13 0.09 0.76 1.06 1.45 0.19 0.50
------- ------- ------- ------- ------- ------- -------
(0.16) (0.07) (0.01) (0.17)
(0.40) (0.01)
------- ------- ------- ------- ------- ------- -------
(0.16) (0.07) (0.01) (0.40) (0.18) 0.00 0.00
------- ------- ------- ------- ------- ------- -------
$ 11.74 $ 10.77 $ 10.75 $ 12.12 $ 11.46 $ 10.19 $ 10.50
======= ======= ======= ======= ======= ======= =======
10.48%* 0.75% 7.59%* 9.32%* 14.31% 1.90%* 5.01%*
======= ======= ======= ======= ======= ======= =======
$ 6,170 $18,323 $14,403 $38,383 $39,529 $13,608 $10,463
0.90%** 0.89% 0.90%** 0.90%** 0.69% 0.69%** 0.85%**
0.51%** 1.47% 0.92%** 0.49%** 2.77% 1.72%** 4.15%**
1.54%** 1.15% 1.57%** 1.01%** 1.20% 2.48%** 1.72%**
(0.13)%** 1.21% 0.25%** 0.38%** 2.26% (0.07)%** 3.28%**
34%** 181% 66%** 161%** 34% 9%** 0%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 85
<PAGE>
Financial Highlghts (Continued)
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Growth & Income Fund
=====================================
Period ended Year ended Year ended
April 30, October 31, October 31,
1999 1998 1997(d)
============ =========== ===========
<S> <C> <C> <C>
Net asset value -- beginning of period.. $ 14.45 $ 12.77 $ 10.00
-------- -------- --------
Income (loss) from investment
activities:
Net investment income.................. 0.10 0.21 0.17
Net realized and unrealized gains
(losses).............................. 2.65 1.71 2.74
-------- -------- --------
Total from investment activities..... 2.75 1.92 2.91
-------- -------- --------
Distributions to shareholders:
From net investment income............. (0.10) (0.24) (0.14)
In excess of net investment income ....
From net realized gains................ (0.33)
In excess of net realized gains........
-------- -------- --------
Total distributions to shareholders.. (0.43) (0.24) (0.14)
-------- -------- --------
Net asset value -- end of period........ $ 16.77 $ 14.45 $ 12.77
======== ======== ========
Total return............................ 19.35%* 15.15% 29.19%*
======== ======== ========
Ratios/supplemental data:
Net assets, end of period (000)........ $287,825 $250,553 $150,944
Ratio of expenses to average net
assets................................ 0.75%** 0.54% 0.54%**
Ratio of net investment income to
average net assets.................... 1.26%** 1.55% 1.60%**
Ratio of expenses to average net assets
prior to subsidies and waivers........ 0.75%** 0.77% 0.89%**
Ratio of net investment income to
average net assets
prior to subsidies and waivers........ 1.27%** 1.32% 1.25%**
Portfolio turnover rate................ 9%** 10% 2%**
</TABLE>
- --------
The Funds commenced operations on following dates:
(a) September 18, 1996. (f) January 1, 1995.
(b) December 9, 1996. (g) December 17, 1997.
(c) June 30, 1997. (h) December 30, 1997.
(d) November 1, 1996. (i) December 17, 1998.
(e) December 1, 1995.
* Not annualized
** Annualized
See notes to financial statements.
86 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Market Return Fund Small Cap Value Stock Fund
================================================== ==============================
Period ended Year ended Year ended Period ended Period ended Period ended
April 30, October 31, October 31, October 31, April 30, October 31,
1999 1998 1997 1996(e) 1999 1998(h)
============ =========== =========== ============ ============ ============
<S> <C> <C> <C> <C> <C>
$ 13.31 $ 12.80 $ 10.86 $10.00 $ 9.28 $ 10.00
------- ------- ------- ------ --------- ---------
0.38 0.73 0.63 0.50 0.08 0.07
2.43 1.46 2.64 0.86 0.92 (0.75)
------- ------- ------- ------ --------- ---------
2.81 2.19 3.27 1.36 1.00 (0.68)
------- ------- ------- ------ --------- ---------
(0.37) (0.71) (0.63) (0.50) (0.05) (0.04)
(0.73) (0.97) (0.70)
------- ------- ------- ------ --------- ---------
(1.10) (1.68) (1.33) (0.50) (0.05) (0.04)
------- ------- ------- ------ --------- ---------
$ 15.02 $ 13.31 $ 12.80 $10.86 $ 10.23 $ 9.28
------- ======= ======= ====== ========= =========
21.78%* 18.48% 31.74% 14.06%* 10.81%* (6.85)%*
======= ======= ======= ====== ========= =========
$62,499 $43,390 $20,195 $5,789 $ 21,665 $ 23,544
0.45%** 0.45% 0.45% 0.00%** 0.80%** 0.79%**
5.30%** 5.69% 5.36% 5.95%** 0.96%** 1.20%**
0.56%** 0.69% 0.96% 4.14%** 0.96%** 1.23%**
5.19%** 5.45% 4.85% 1.81%** 0.80%** 0.76%**
87%** 48% 140% 146%** 23%** 143%**
<CAPTION>
Small Cap Growth Stock Fund
=================================
Period ended Period ended
April 30, October 31,
1999 1998(h)
=============== =============
<S> <C>
$ 9.11 $ 10.00
- --------------- -------------
0.03
1.70 (0.89)
- --------------- -------------
1.70 (0.86)
- --------------- -------------
(0.03)
- --------------- -------------
0.00 (0.03)
- --------------- -------------
$ 10.81 $ 9.11
=============== =============
18.65%* (8.66)%*
=============== =============
$ 2,797 $ 2,384
0.80%** 0.77%**
(0.02)%** 0.39%**
2.76%** 2.89%**
(1.98)%** (1.73)%**
35%** 186%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 87
<PAGE>
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Limited Maturity Fund
=====================================
Period ended Year ended Year ended
April 30, October 31, October 31,
1999 1998 1997
============ =========== ===========
<S> <C> <C> <C>
Net asset value -- beginning of period.... $ 10.08 $ 10.06 $ 10.06
------- -------- --------
Income (loss) from investment activities:
Net investment income.................... 0.30 0.56 0.54
Net realized and unrealized gains
(losses)................................ (0.06) 0.02
------- -------- --------
Total from investment activities....... 0.24 0.58 0.54
------- -------- --------
Distributions to shareholders:
From net investment income............... (0.28) (0.56) (0.54)
In excess of net investment income.......
From net realized gains..................
In excess of net realized gains..........
------- -------- --------
Total distributions to shareholders.... (0.28) (0.56) (0.54)
------- -------- --------
Net asset value -- end of period.......... $ 10.04 $ 10.08 $ 10.06
======= ======== ========
Total return.............................. 2.39%* 5.87% 5.46%
======= ======== ========
Ratios/supplemental data:
Net assets, end of period (000).......... $81,758 $117,042 $152,429
Ratio of expenses to average net assets.. 0.36%** 0.29% 0.30%
Ratio of net investment income to average
net assets.............................. 5.34%** 5.58% 5.52%
Ratio of expenses to average net assets
prior to subsidies and waivers.......... 0.51%** 0.47% 0.52%
Ratio of net investment income to average
net assets prior to subsidies and
waivers................................. 5.19%** 5.40% 5.30%
Portfolio turnover rate.................. 69%** 91% 135%
</TABLE>
- --------
The Funds commenced operations on following dates:
(a) September 18, 1996. (f) January 1, 1995.
(b) December 9, 1996. (g) December 17, 1997.
(c) June 30, 1997. (h) December 30, 1997.
(d) November 1, 1996. (i) December 17, 1998.
(e) December 1, 1995.
* Not annualized
** Annualized
See notes to financial statements.
88 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Limited Maturity Fund Short Bond Fund
========================= =============================================================
Year ended Year ended Period ended Year ended Year ended Year ended Year ended
October 31, October 31, April 30, October 31, October 31, October 31, October 31,
1996 1995 1999 1998 1997 1996 1995
=========== =========== ============ =========== =========== =========== ===========
<S> <C> <C> <C> <C> <C> <C>
$ 10.06 $ 10.00 $ 9.94 $ 9.92 $ 9.97 $ 10.04 $ 9.68
------- ------- -------- -------- ------- ------- -------
0.53 0.56 0.27 0.63 0.58 0.54 0.54
0.07 (0.10) 0.02 (0.05) (0.06) 0.36
------- ------- -------- -------- ------- ------- -------
0.53 0.63 0.17 0.65 0.53 0.48 0.90
------- ------- -------- -------- ------- ------- -------
(0.53) (0.57) (0.25) (0.63) (0.58) (0.54) (0.54)
(0.01)
------- ------- -------- -------- ------- ------- -------
(0.53) (0.57) (0.25) (0.63) (0.58) (0.55) (0.54)
------- ------- -------- -------- ------- ------- -------
$ 10.06 $ 10.06 $ 9.86 $ 9.94 $ 9.92 $ 9.97 $ 10.04
======= ======= ======== ======== ======= ======= =======
5.41% 6.43% 1.72%* 6.80% 5.52% 4.86% 9.56%
======= ======= ======== ======== ======= ======= =======
$50,771 $18,414 $106,769 $108,661 $94,256 $97,966 $19,157
0.30% 0.33% 0.40%** 0.30% 0.40% 0.40% 0.40%
5.45% 5.59% 5.54%** 6.04% 6.00% 5.67% 5.72%
0.62% 0.83% 0.50%** 0.50% 0.49% 0.57% 1.03%
5.13% 5.09% 5.44%** 5.84% 5.91% 5.50% 5.09%
217% 166% 332%** 596% 208% 212% 170%
</TABLE>
See notes to financial statements.
Semi-Annual Report 89
<PAGE>
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
U.S. Government Fund
==============================================================
Period ended Year ended Year ended Year ended Period ended
April 30, October 31, October 31, October 31, October 31,
1999 1998 1997 1996 1995(f)
============ =========== =========== =========== ============
<S> <C> <C> <C> <C> <C>
Net asset value --
beginning of period... $ 10.90 $ 10.56 $ 10.54 $ 10.61 $ 10.00
------- ------- ------- ------- -------
Income (loss) from
investment activities:
Net investment income.. 0.29 0.56 0.60 0.58 0.53
Net realized and
unrealized gains
(losses).............. (0.21) 0.33 0.02 (0.04) 0.61
------- ------- ------- ------- -------
Total from investment
activities........... 0.08 0.89 0.62 0.54 1.14
------- ------- ------- ------- -------
Distributions to
shareholders:
From net investment
income................ (0.28) (0.55) (0.60) (0.58) (0.53)
In excess of net
investment income.....
From net realized
gains................. (0.06) (0.03)
In excess of net
realized gains........
------- ------- ------- ------- -------
Total distributions to
shareholders......... (0.34) (0.55) (0.60) (0.61) (0.53)
------- ------- ------- ------- -------
Net asset value -- end
of period.............. $ 10.64 $ 10.90 $ 10.56 $ 10.54 $ 10.61
======= ======= ======= ======= =======
Total return............ 0.75%* 8.60% 6.10% 5.20% 11.61%*
======= ======= ======= ======= =======
Ratios/supplemental
data:
Net assets, end of
period (000).......... $75,830 $71,855 $15,479 $22,114 $10,894
Ratio of expenses to
average net assets.... 0.40%** 0.34% 0.45% 0.45% 0.45%**
Ratio of net investment
income to average net
assets................ 5.33%** 5.38% 5.49% 5.59% 6.31%**
Ratio of expenses to
average net assets
prior to subsidies and
waivers............... 0.51%** 0.54% 0.63% 0.78% 1.84%**
Ratio of net investment
income to average net
assets prior to
subsidies and
waivers............... 5.22%** 5.18% 5.31% 5.26% 4.92%**
Portfolio turnover
rate.................. 189%** 287% 160% 152% 87%**
</TABLE>
- --------
The Funds commenced operations on following dates:
(a) September 18, 1996. (f) January 1, 1995.
(b) December 9, 1996. (g) December 17, 1997.
(c) June 30, 1997. (h) December 30, 1997.
(d) November 1, 1996. (i) December 17, 1998.
(e) December 1, 1995.
* Not annualized
** Annualized
See notes to financial statements.
90 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Investment Quality Bond Fund
==================================================================================
Period ended Year ended Year ended Year ended Year ended
April 30, October 31, October 31, October 31, October 31,
1999 1998 1997 1996 1995
============ =========== =========== =========== ===========
<S> <C> <C> <C> <C>
$ 10.17 $ 10.01 $ 9.81 $ 9.96 $ 9.09
-------- -------- ------- ------- -------
0.30 0.60 0.58 0.63 0.57
(0.21) 0.20 0.22 (0.17) 0.87
-------- -------- ------- ------- -------
0.09 0.80 0.80 0.46 1.44
-------- -------- ------- ------- -------
(0.29) (0.59) (0.60) (0.61) (0.57)
(0.08) (0.05)
-------- -------- ------- ------- -------
(0.37) (0.64) (0.60) (0.61) (0.57)
-------- -------- ------- ------- -------
$ 9.89 $ 10.17 $ 10.01 $ 9.81 $ 9.96
======== ======== ======= ======= =======
0.87%* 8.33% 8.44% 4.86% 16.39%
======== ======== ======= ======= =======
$253,910 $173,974 $94,987 $32,304 $25,822
0.50%** 0.44% 0.45% 0.00% 0.45%
5.95%** 6.12% 6.03% 6.41% 6.20%
0.50%** 0.50% 0.53% 0.64% 1.11%
5.95%** 6.06% 5.95% 5.77% 5.55%
45%** 156% 317% 197% 252%
</TABLE>
See notes to financial statements.
Semi-Annual Report 91
<PAGE>
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Total Return Fund
======================================
Period ended Year ended Period ended
April 30, October 31, October 31,
1999 1998 1997(b)
============ =========== ============
<S> <C> <C> <C>
Net asset value--beginning of period.... $ 10.23 $ 10.25 $ 10.00
-------- -------- -------
Income (loss) from investment
activities:
Net investment income.................. 0.36 0.57 0.46
Net realized and unrealized gains
(losses).............................. (0.07) 0.20 0.23
-------- -------- -------
Total from investment activities...... 0.29 0.77 0.69
-------- -------- -------
Distributions to shareholders:
From net investment income............. (0.29) (0.58) (0.44)
In excess of net investment income..... (0.13)
From net realized gains................ (0.05) (0.08)
In excess of net realized gains........
-------- -------- -------
Total distributions to shareholders... (0.34) (0.79) (0.44)
-------- -------- -------
Net asset value--end of period.......... $ 10.18 $ 10.23 $ 10.25
======== ======== =======
Total return............................ 2.91%* 7.72% 7.10%*
======== ======== =======
Ratios/supplemental data:
Net assets, end of period (000)........ $184,386 $174,612 $98,863
Ratio of expenses to average net
assets................................ 0.50%** 0.44% 0.45%**
Ratio of net investment income to
average net assets.................... 6.92%** 6.07% 6.21%**
Ratio of expenses to average net assets
prior to subsidies and waivers........ 0.50%** 0.52% 0.69%**
Ratio of net investment income to
average net assets prior to subsidies
and waivers........................... 6.92%** 5.99% 5.97%**
Portfolio turnover rate................ 19%** 208% 206%**
</TABLE>
- --------
The Funds commenced operations on following dates:
(a) September 18, 1996. (f) January 1, 1995.
(b) December 9, 1996. (g) December 17, 1997.
(c) June 30, 1997. (h) December 30, 1997.
(d) November 1, 1996. (i) December 17, 1998.
(e) December 1, 1995.
* Not annualized
** Annualized
See notes to financial statements.
92 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
High Income Fund Bunker Hill Money Market Fund
================================= ===============================================
Period ended Period ended Period ended Period ended
October 31, October 31, April 30, October 31,
1999 1998(h) 1999 1998(g)
============ ============ ============ ============
<S> <C> <C> <C>
$ 9.77 $ 10.00 $ 1.00 $ 1.00
-------- ------- ------- -------
0.48 0.47 0.01 0.05
0.36 (0.34)
-------- ------- ------- -------
0.84 0.13 0.01 0.05
-------- ------- ------- -------
(0.39) (0.36) (0.01) (0.05)
-------- ------- ------- -------
(0.39) (0.36) (0.01) (0.05)
-------- ------- ------- -------
$ 10.22 $ 9.77 $ 1.00 $ 1.00
======== ======= ======= =======
8.61%* 1.28%* 2.35%* 4.65%*
======== ======= ======= =======
$123,767 $91,669 $25,899 $26,455
0.59%** 0.54%** 0.30%** 0.29%**
7.94%** 7.75%** 4.74%** 5.23%**
0.59%** 0.71%** 0.44%** 0.71%**
7.94%** 7.58%** 4.60%** 4.81%**
65%** 134%** 0%** 0%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 93
<PAGE>
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Short Duration Tax Exempt Fund
=============================================================
Period ended Year ended Year ended Year ended Year ended
April 30, October 31, October 31, October 31, October 31,
1999 1998 1997 1996 1995
============ =========== =========== =========== ===========
<S> <C> <C> <C> <C> <C>
Net asset value -- beginning of period....... $ 10.11 $ 10.08 $ 10.01 $ 10.08 $ 9.93
------- ------- ------- ------- -------
Income (loss) from investment activities:
Net investment income....................... 0.19 0.42 0.38 0.38 0.42
Net realized and unrealized gains (losses).. (0.03) 0.03 0.07 (0.06) 0.15
------- ------- ------- ------- -------
Total from investment activities........... 0.16 0.45 0.45 0.32 0.57
------- ------- ------- ------- -------
Distributions to shareholders:
From net investment income.................. (0.18) (0.41) (0.38) (0.38) (0.42)
In excess of net investment income..........
From net realized gains..................... (0.09) (0.01) (0.01)
In excess of net realized gains.............
------- ------- ------- ------- -------
Total distributions to shareholders........ (0.27) (0.42) (0.38) (0.39) (0.42)
------- ------- ------- ------- -------
Net asset value -- end of period............. $ 10.00 $ 10.11 $ 10.08 $ 10.01 $ 10.08
======= ======= ======= ======= =======
Total return............................... 1.65%* 4.55% 4.55% 3.28% 5.88%
======= ======= ======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000)............. $16,177 $16,825 $38,176 $36,336 $16,019
Ratio of expenses to average net assets..... 0.50%** 0.44% 0.45% 0.45% 0.45%
Ratio of net investment income to average
net assets................................. 3.70%** 3.99% 3.75% 3.81% 4.12%
Ratio of expenses to average net assets
prior to subsidies and waivers............. 0.83%** 0.68% 0.62% 0.70% 0.91%
Ratio of net investment income to average
net assets prior to subsidies and waivers.. 3.37%** 3.75% 3.58% 3.56% 3.66%
Portfolio turnover rate..................... 79%** 53% 57% 35% 80%
</TABLE>
- --------
The Funds commenced operations on following dates:
(a) September 18, 1996. (f) January 1, 1995.
(b) December 9, 1996. (g) December 17, 1997.
(c) June 30, 1997. (h) December 30, 1997.
(d) November 1, 1996. (i) December 17, 1998.
(e) December 1, 1995.
* Not annualized
** Annualized
See notes to financial statements.
94 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
California
Municipal
Tax Exempt Bond Fund Income Fund
============================================================= ===========
Period
Period ended Year ended Year ended Year ended Year ended ended
April 30, October 31, October 31, October 31, October 31, April 30,
1999 1998 1997 1996 1995 1999(i)
============ =========== =========== =========== =========== ===========
<S> <C> <C> <C> <C> <C>
$ 9.92 $ 9.71 $ 9.47 $ 9.59 $ 8.90 $ 10.00
------- ------- ------- ------- ------- -------
0.21 0.40 0.44 0.45 0.46 0.09
(0.06) 0.20 0.24 (0.12) 0.69 0.02
------- ------- ------- ------- ------- -------
0.15 0.60 0.68 0.33 1.15 0.11
------- ------- ------- ------- ------- -------
(0.20) (0.39) (0.44) (0.45) (0.46) (0.09)
------- ------- ------- ------- ------- -------
(0.20) (0.39) (0.44) (0.45) (0.46) (0.09)
------- ------- ------- ------- ------- -------
$ 9.87 $ 9.92 $ 9.71 $ 9.47 $ 9.59 $ 10.02
======= ======= ======= ======= ======= =======
1.54%* 6.32% 7.33% 3.52% 13.25% 1.06%*
======= ======= ======= ======= ======= =======
$62,305 $67,889 $57,579 $49,862 $40,052 $28,040
0.50%** 0.49% 0.45% 0.45% 0.45% 0.50%**
4.06%** 4.08% 4.60% 4.73% 4.97% 3.37%**
0.58%** 0.57% 0.59% 0.61% 0.74% 0.88%**
3.98%** 4.00% 4.46% 4.57% 4.69% 2.99%**
33%** 36% 42% 23% 42% 20%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 95
<PAGE>
Trustees and Officers
- --------------------------------------------------------------------------------
Trustees
Joan A. Payden, Chairman and Chief Executive Officer
President, Payden & Rygel
W.D. Hilton, Jr.
Managing Trustee, NGC Settlement Trust
John P. Isaacson
Principal, Payden & Rygel
J. Clayburn La Force
Dean Emeritus, The John E. Anderson Graduate
School of Management
Thomas V. McKernan, Jr.
President and Chief Executive Officer
Automobile Club of Southern California
Christopher N. Orndorff
Principal, Payden & Rygel
Dennis C. Poulsen
Chairman of the Board, Rose Hills Company
Stender E. Sweeney
Private Investor
Officers
John C. Siciliano, President and Chief Operating Officer
Gregory P. Brown, Vice President
Yot Chattrabhuti, Vice President
Bradley F. Hersh, Vice President and Treasurer
David L. Wagner, Vice President
Edward S. Garlock, Secretary
96 Payden & Rygel Investment Group
<PAGE>
[Logo of Payden & Rygel 333 South Grand Ave Los Angeles, CA 90071
Mutual Funds] 1-800-5-PAYDEN 1-800-572-9336
www.payden.com
IMPORTANT INFORMATION: The information contained in this report is intended for
shareholders of the Payden & Rygel Funds only. It is not authorized for
distribution to prospective investors unless accompanied or preceded by a
current prospectus which provides further details.
The performance numbers presented in this report are derived from
historical market data. There is no guarantee of future performance nor are
Fund shares guaranteed. Investment return and principal value of an investment
in a Fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than original cost. Fund shares are sold through Payden &
Rygel Distributors, member NASD.
