<PAGE>
[LOGO OF PAYDEN & RYGEL]
MUTUAL FUNDS annual report
October 31, 1999
Payden & Rygel Investment Group
<PAGE>
Contents
------------------------------------------------------------------------
<TABLE>
<C> <S>
. Chairman's Letter
i Management Discussion and Analysis
1 Portfolio Highlights and Investments
51 Statements of Cash Flows
52 Statements of Assets and Liabilities
56 Statements of Operations
60 Statements of Changes in Net Assets
68 Notes to Financial Statements
76 Financial Highlights
90 Independent Auditors' Report
91 Trustees and Officers
</TABLE>
Annual Report
<PAGE>
Dear Shareholders
---------------------------------------------------------------------------
In a year that was dominated by themes of both market volatility and fragile
global recovery, it is our "no surprises" investment philosophy that has
allowed us to weather the storm.
Late last year, the global financial markets were in an upheaval, the
collapse of the world's largest hedge fund had sent shockwaves throughout the
financial world, and the domestic political climate was still dealing with
scandal. Today, almost all of that seems to have been forgotten.
The focus in 1999 has been on the equity markets, global economic recovery,
Year 2000 readiness, the Dow's crossing of the 11,000 point milestone, and the
introduction and subsequent volatility of the Euro.
Since November 1, 1998, we have introduced six new funds that have attracted
new, as well as existing, investors. We feel that our newest fund offerings
have expanded our investors' ability to participate in the opportunities that
evolving global markets provide.
.Our GNMA Fund is a new domestic bond fund that primarily invests in
securities issued by the Government National Mortgage Association (GNMA).
These securities derive their cash flows from pools of mortgage loans that
are backed by the U.S. government. We believe that this is an important fund
offering and we are pleased that its 35 basis points expense ratio is one of
the lowest of all the funds in its class.
.Our EuroDirect and European Aggressive Growth Funds are subadvised by
Metzler/Payden LLC, our joint venture with Metzler Bank of Frankfurt,
Germany. The EuroDirect Fund invests in European stocks and bonds and looks
to take advantage of new market segments and instruments brought on by the
introduction of the Euro currency. We are excited about our European
Aggressive Growth Fund, which allows our investors to invest in high-growth
established and start-up corporations in the European Monetary Union. The
Fund has experienced an impressive growth in assets through new investments
and solid performance.
.Our U.S. Growth Leaders Fund is the newest domestic equity offering. This
fund invests in domestic, large capitalization companies that exhibit strong
growth prospects.
.Our Emerging Markets Bond Fund uses a diversified investment approach to
purchasing securities in emerging market countries. Due to its low
correlation to other asset classes, this Fund is an excellent vehicle with
which to diversify allocations among other fixed income sectors.
.Our California Municipal Income Fund seeks to provide our California
investors with high after-tax current income that is exempt from Federal and
California State income tax.
<PAGE>
---------------------------------------------------------------------------
. Our Global Fixed Income Fund was prominently featured in the October 4,
1999 issue of Business Week. In an article entitled "Creating a Better Bond
Fund Mix," Business Week built a diversified bond portfolio using their
favorite funds from each sector. A 15% allocation to the Global Fixed Income
fund was recommended as an integral component of their model fixed income
portfolio.
We are extremely proud to announce that the Growth & Income Fund and the
Global Short Bond Fund are the most recent Payden & Rygel funds to receive a
Morningstar Star Rating(TM). The Global Short Bond Fund received a five-star
rating and our Growth & Income Fund received a four-star rating /1/. In
addition the Growth & Income Fund received a rating of five out of five within
its "Large Value" category /2/.
As we near the end of the twentieth century, we look back on our
accomplishments and are proud of what we have been able to deliver for our
investors. Looking forward, we strive to deliver the high quality investment
management, low institutional costs, and unrivaled service that you expect.
We thank you for responding to our new product offerings so enthusiastically.
As always, we work for you.
Sincerely,
/s/ Joan A. Payden
Joan A. Payden
Chairman & CEO
Payden & Rygel Investment Group
/1/ The Morningstar ratings are for
the three-year period ending
October 31, 1999, out of a total
3,272 (3-year) domestic equity
funds for the Growth & Income Fund
and 1,598 (3-year) taxable bond
funds for the Global Short Bond
Fund. 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 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.
/2/ The Morningstar rating is for [LOGO OF PAYDEN & RYGEL]
the three-year period ending
October 31, 1999, for the 604 (3- MUTUAL FUNDS
year) funds in Morningstar's
"Large Value" category and is
subject to change monthly. The
Category Rating is a quantitative
measure of risk adjusted returns
within the particular Morningstar
category. The objective of the
Category Rating is to show how
well a fund has balanced risk and
return relative to other funds in
the same Morningstar category. As
with the Star Rating, five is the
best rating attainable, with one
being the lowest.
<PAGE>
Management Discussion and Analysis
==================================
Fixed Income Markets
A year ago, concerns over the global financial crisis caused a "flight-to-
quality" as demand for liquidity and risk-free assets caused investors to
abandon non-U.S. Treasury securities in favor of government securities. In
1999, we have seen a partial reversal of this effect as interest rates have
risen and sectors such as mortgages and corporates have outperformed U.S.
Treasuries. In addition, the Federal Reserve Board reversed the three interest
rate cuts implemented in 1998 and returned the Fed Funds target rate to the
pre-crisis level of 5.5%. Though rates have risen, liquidity has not returned
to prior levels, and it is not clear how soon this will occur, given the focus
on Y2K.
Short Maturity Strategies
Our short-term bond funds were managed conservatively during the year with the
expectation of a rising rate environment. This helped significantly, as the
Limited Maturity Fund earned 4.71% during the fiscal year ended October 31,
1999, matching the return of the average institutional money market fund. The
Short Bond Fund earned 2.89%, versus 2.99% for the benchmark, for that same
period.
The U.S. Government Fund maintained its consistent performance. The Fund
returned 1.76% for the fiscal year, which placed it in the top quartile of the
Lipper Index. Over the last three years, the Fund has been 15th out of 77
funds/1/ and has outpaced the Lipper Index, returning 5.45% per year versus
4.89%.
The Bunker Hill Money Market Fund took advantage of the higher yields available
for investments maturing in the year 2000. By holding its average maturity
slightly longer than the typical money market fund, the Fund was able to
perform in the top of the Lipper money market index. The Fund returned 4.97%
for the fiscal year, which placed it 9th out of 332 funds for the last 12
months./2/
Intermediate Maturity Strategies
Although ten-year U.S. Treasury rates rose over 1.4% in the twelve months ended
October 31, 1999, both the Total Return Fund and Investment Quality Bond Fund
performed relatively well. This is largely due to the performance of certain
non-U.S. Treasury securities. Both Funds were positioned to take advantage of
the "flight-to-quality" reversal as both Funds were structured with an
overweight to mortgage securities. This allowed them to benefit from the spread
tightening which occurred during the year. In addition, the Total Return Fund
benefited from an allocation to emerging markets, which also experienced
significant tightening. As a result, despite the significant rise in interest
rates, the Total Return Fund earned 0.55% and the Investment Quality Bond Fund
returned -0.71%, for the twelve months ended October 31, 1999.
Global Markets & Strategies
During the past fiscal year, the global bond markets reacted negatively to the
recovery in worldwide economic activity. With economic growth steady or
accelerating in most of the world, bond prices are adjusting to the fact that
the bottom in inflation is behind us and the probability is growing that
consumer prices may rise in the present upswing.
- ---------------
/1/ Ranking entity: Lipper, Inc. Ranking is based on the three-year performance
for the period ending October 31, 1999, out of 77 funds in the Lipper Short-
Intermediate U.S. Government Fund Universe.
/2/ Ranking entity: Lipper, Inc. Ranking is based on the one-year performance
for the period ending October 31, 1999, out of 332 funds in the Lipper Money
Market Fund Universe.
i
<PAGE>
Management Discussion and Analysis
==================================
However, while we are unquestionably facing a very different environment than a
year ago, it is by no means certain that an upsurge in inflation is waiting in
the wings. Technological advancements and an increasingly competitive global
marketplace are changing the way businesses are run in Europe and Japan, just
as they have in the U.S. We believe the same forces that have held down
inflation in the U.S. will play a role overseas, but in different ways and to
varying degrees.
In the twelve months ended October 31, 1999, each of the Global Fixed Income
Fund and Global Short Bond Fund posted positive returns of 0.56% and 2.57%,
respectively. In particular, income earned over the year helped to offset the
fall in bond prices. In addition, aggressive currency hedging helped protect
both Funds from the 10% depreciation of the Euro versus the U.S. dollar this
year. Global diversification remains a prudent investment objective, and with
the corporate and mortgage-related bond issuance in Europe picking up
dramatically, we are poised to take advantage of these additional sectors in
each of these Funds going forward.
High Income and Emerging Markets
Both the High Income Fund and Emerging Markets Bond Fund have exposure to the
higher yielding sectors of the market. Over the past year, these sectors were
influenced by two different forces that can be categorized into two distinct
periods. In the first period from the end of 1998 to early 1999, the market
experienced an unwinding of the flight to quality that occurred earlier in the
fall of 1998. Spreads in the high yield and emerging markets segments tightened
substantially as the fears of a worst case scenario diminished. The second
period began in April 1999 and reintroduced some of the risk premium that had
previously been taken out of the market. The primary concern was the still
unclear path of the Federal Reserve Board's interest rate policy. This resulted
in enough uncertainty in the market to lead to spread widening.
Despite this spread widening, the magnitude of the spread tightening that
occurred earlier this year, combined with the higher yields of these asset
classes, meant that both of these Funds significantly outperformed comparable
U.S. Treasuries. The Emerging Markets Bond Fund returned 12.92% during the
fiscal year, and the High Income Fund returned 5.65% during that same period.
Further, selective industry positioning and individual credit selection enabled
the High Income Fund to outperform its benchmark by 100 basis points from
January through October 31, 1999.
Tax-Exempt Strategies
Interest rates rose by almost a full percent in the municipal market, as the
U.S. economy continued on its growth path. The Short Duration Tax Exempt Fund
posted a 2.29% total return for the fiscal year, despite rising interest rates.
The short maturity orientation of the portfolio was a positive contributor to
performance. The Tax Exempt Bond Fund and the California Municipal Income Fund
were more impacted by the rising interest rates. These portfolios have a longer
maturity orientation, which increases their price sensitivity to changes in
interest rates. The Tax Exempt Bond Fund had a -0.81% return for the fiscal
year. Strategies during the year were aimed at improving the credit quality of
the portfolio, buying premium coupon bonds, and including more short maturity
bonds than normal. The California Municipal Income Fund, which opened in
December 1998, had a -1.22% return since its inception. Yield premiums in the
California market were compressed throughout the year, as demand for state
exempt income outpaced the supply of bonds. We reduced the Fund's sensitivity
to rising interest rates by purchasing shorter maturity, premium coupon bonds.
Investments were made in select opportunities to add yield to the portfolio,
but we focused primarily on high quality investment grade credits.
ii
<PAGE>
Management Discussion and Analysis continued
==================================
Equity Markets
Stocks were strong during this fiscal year. At this same time last year, many
investors were fearful from the collapse of Long Term Capital hedge fund and
from the debt default by Russia. However, the resiliency of the stock market
has been remarkable. With the baseline of strong corporate profits, the S&P 500
index gained 24.2%, led by the technology sector which rose 56%. It was also
another year when stocks characterized by a "growth" style continued to
outperform "value" stocks. The S&P 500/BARRA Growth index advanced 29.8%, while
the S&P 500/BARRA Value index rose 17.8%.
Our Funds continued to post good performance. The Growth & Income Fund, which
returned 16.47%, was awarded a 4-star rating by Morningstar, and was added to
their select Morningstar 500. This is Payden & Rygel's second fund in that
prestigious group. The Market Return Fund, which returned 24.41%, was also
awarded a 4-star rating./3/ The U.S. Growth Leaders Fund, which opened June 17,
1999, returned 5.30% through the fiscal year-end.
Small cap stocks continued to lag their large cap cousins. The Russell 2000
index gained 14.9%, or nearly 1000 basis points less than the S&P 500. The
difference between "growth" and "value" was even more pronounced in small caps,
with the Russell 2000 Value index up only 0.7%, while the Russell 2000 Growth
gained 29.2%. The results for our two small cap funds reflected these
difficulties. The Small Cap Value Stock Fund posted a -0.33% return for the
year. The Small Cap Growth Stock Fund did better, earning 17.56%. Small cap
stocks are at all-time cheap valuations relative to large cap stocks.
European stocks outpaced U.S. stocks in local currency terms. The Dow Jones
Europe STOXX index rose 26.3% on the surprising strength of the European
economy. The new currency, the Euro, did not fare as well. Therefore, in U.S.
dollar terms, the Dow Jones Europe STOXX index only advanced 12.1%. We continue
to believe that European stocks offer outstanding opportunities for return and
diversification.
The Global Balanced Fund posted a strong 15.85% return for the year. This Fund
has posted consistent returns since its inception, but with significantly less
volatility than an all stock portfolio. The European Growth & Income Fund
returned 8.39% for the year. To these Funds, we added two new European funds.
With the start of 1999, we launched the EuroDirect Fund that seeks to profit
from various opportunities in the new unified European capital markets, stocks
as well as fixed income securities. The Fund, which returned 5.61%, firmly
outperformed its benchmark over the year. In response to the great outlook for
young, innovative growth companies and the emergence of the so-called "New
Markets" in Europe, we launched the European Aggressive Growth Fund in June.
The Fund focuses on small to medium capitalization stocks with high growth
potential. This segment of the market has performed extraordinarily well in the
second half of this year, which is reflected in the strong performance of Fund
since its inception with a return of 12.80%. All four European funds are sub-
advised by our joint-venture partner Metzler/Payden.
- -------
/3/ The Morningstar ratings are for the three-year period ending October 31,
1999, out of a total of 3,272 domestic equity funds (3-year) for both the
Growth & Income Fund and Market Return Fund. Morningstar's proprietary
ratings reflect historical risk-adjusted performance and are subject to
change monthly. Specifically, they are calculated from each fund's three-
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.
iii
<PAGE>
Portfolio Highlights & Investments
==================================
- -------------------------------------------------------------------------------
This section includes unaudited Country Allocation, Portfolio Composition
tables, and audited Schedules of Portfolio Investments. In the case of the
Group's fixed income Funds, these tables 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 tables are designed to identify
the holdings and industries of each Fund. In either case, if a Fund makes use
of futures or options contracts, the tables and Schedules of Investments
includes the effect of those contracts. Unless indicated otherwise,
information in this section is as of October 31, 1999.
Annual Report 1
<PAGE>
Global Short Bond Fund
======================
Unaudited
The objective of the Global Short Bond Fund is to realize a high level of total
return consistent with preservation of capital. The Fund invests primarily in
U.S. and foreign government notes and bonds and U.S. and foreign corporate debt
securities. The Fund also has substantial investments in foreign currency con-
tracts. The Fund's maximum average portfolio maturity (on a dollar-weighted ba-
sis) is three years.
Country Allocation
<TABLE>
- ----------------
<S> <C>
Germany 33%
U.S. 17%
New Zealand 15%
Sweden 10%
Australia 5%
Italy 5%
Other 15%
- ----------------
</TABLE>
Credit Quality
<TABLE>
- --------
<S> <C>
AAA 54%
AA 46%
A 0%
BBB 0%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 2.57%
Three Year, 5.79%
Since 9/18/96, 5.94%
. Global Short Bond Fund $11,971
- -- Merrill Lynch 1-3 Year Treasury Index $11,998
<TABLE>
<CAPTION>
Global Short Bond Fund Merrill 1-3 Treasury
9232 Value ml1-3tsy Value
----- -----
BDATE EDATE 10000 10000
<S> <C> <C> <C> <C> <C>
9/18/96 9/30/96 10,060 9/18/96 9/30/96 10,044
10/1/96 10/31/96 10,110 10/1/96 10/31/96 10,157
11/1/96 11/30/96 10,216 11/1/96 11/30/96 10,235
12/1/96 12/31/96 10,265 12/1/96 12/31/96 10,235
1/1/97 1/31/97 10,336 1/1/97 1/31/97 10,283
2/1/97 2/28/97 10,346 2/1/97 2/28/97 10,307
3/1/97 3/31/97 10,346 3/1/97 3/31/97 10,303
4/1/97 4/30/97 10,439 4/1/97 4/30/97 10,387
5/1/97 5/31/97 10,532 5/1/97 5/31/97 10,458
6/1/97 6/30/97 10,604 6/1/97 6/30/97 10,530
7/1/97 7/31/97 10,655 7/1/97 7/31/97 10,645
8/1/97 8/31/97 10,686 8/1/97 8/31/97 10,655
9/1/97 9/30/97 10,792 9/1/97 9/30/97 10,736
10/1/97 10/31/97 10,820 10/1/97 10/31/97 10,816
11/1/97 11/30/97 10,858 11/1/97 11/30/97 10,842
12/1/97 12/31/97 10,941 12/1/97 12/31/97 10,916
1/1/98 1/31/98 11,016 1/1/98 1/31/98 11,022
2/1/98 2/28/98 11,049 2/1/98 2/28/98 11,032
3/1/98 3/31/98 11,137 3/1/98 3/31/98 11,077
4/1/98 4/30/98 11,181 4/1/98 4/30/98 11,128
5/1/98 5/31/98 11,248 5/1/98 5/31/98 11,188
6/1/98 6/30/98 11,293 6/1/98 6/30/98 11,246
7/1/98 7/31/98 11,364 7/1/98 7/31/98 11,299
8/1/98 8/31/98 11,435 8/1/98 8/31/98 11,441
9/1/98 9/30/98 11,604 9/1/98 9/30/98 11,592
10/1/98 10/31/98 11,671 10/1/98 10/31/98 11,649
11/1/98 11/30/98 11,716 11/1/98 11/30/98 11,639
12/1/98 12/31/98 11,798 12/1/98 12/31/98 11,679
1/1/99 1/31/99 11,880 1/1/99 1/31/99 11,726
2/1/99 2/28/99 11,810 2/1/99 2/28/99 11,669
3/1/99 3/31/99 11,895 3/1/99 3/31/99 11,749
4/1/99 4/30/99 11,941 4/1/99 4/30/99 11,787
5/1/99 5/31/99 11,893 5/1/99 5/31/99 11,780
6/1/99 6/30/99 11,874 6/1/99 6/30/99 11,816
7/1/99 7/31/99 11,890 7/1/99 7/31/99 11,854
8/1/99 8/31/99 11,894 8/1/99 8/31/99 11,888
9/1/99 9/30/99 11,944 9/1/99 9/30/99 11,966
10/1/99 10/31/99 11,971 10/1/99 10/31/99 11,998
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $213.6
Number of Issues 21
Average Maturity 2.3 years
SEC Yield 4.55%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Australia (Australian Dollar)
(5%)
5,800,000 FNMA Global,
5.75%, 9/5/00 $ 3,693.9
11,100,000 Western Australia
Treasury Corp.,
8.00%, 7/15/03 7,416.5
----------
Australia (Cost -
$12,093.2) 11,110.4
France (Euro) (2%)
4,500,000 French Government
Bond,
7.75%, 4/12/00 4,817.5
----------
France (Cost -
$5,230.8) 4,817.5
Germany (German Mark/Euro) (33%)
7,000,000 Bundesobligation -
122,
4.50%, 2/22/02 7,414.4
12,700,000 Bundesobligation -
120,
5.00%, 8/20/01 13,593.4
28,000,000 Bundesobligation -
121,
4.75%, 11/20/01 29,849.0
18,500,000 European Community
Note,
6.50%, 3/10/00 10,043.5
5,112,919 KFW International
Finance,
7.50%, 1/24/00 5,416.7
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
4,000,000 Rheinische Hypbk,
4.50%, 8/26/03 $ 4,159.1
----------
Germany (Cost -
$72,010.6) 70,476.1
Italy (Euro) (5%)
9,000,000 Italian Government
BTP,
6.25%, 3/1/02 9,862.0
----------
Italy (Cost -
$10,410.4) 9,862.0
Netherlands (Euro) (5%)
10,000,000 Netherlands
Government Bond,
8.50%, 3/15/01 11,142.7
----------
Netherlands (Cost -
$11,214.3) 11,142.7
New Zealand (New Zealand Dollar)
(15%)
60,600,000 New Zealand
Government Bond,
8.00%, 4/15/04 31,960.3
----------
New Zealand (Cost -
$35,342.8) 31,960.3
Spain (Euro) (5%)
10,000,000 Spanish Government
Bond, 5.00%, 1/31/01 10,663.5
----------
Spain (Cost -
$10,730.1) 10,663.5
</TABLE>
2 Payden & Rygel Investment Group
<PAGE>
Global Short Bond Fund
======================
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Sweden (Swedish Krona) (10%)
29,000,000 AB Spintab,
5.50%, 9/17/03 $ 3,471.6
58,000,000 AB Spintab,
6.25%, 9/18/02 7,159.5
20,000,000 Statens Bostads,
5.50%, 10/15/03 2,389.1
67,000,000 Statens Bostads,
6.50%, 9/18/02 8,316.0
----------
Sweden (Cost -
$22,033.4) 21,336.2
United States (United States
Dollar) (17%)
23,500,000 FHLB,
5.63%, 3/19/01
(b) 23,361.3
3,000,000 U.S. Treasury
Note,
4.25%, 11/15/03 2,816.3
10,000,000 U.S. Treasury
Note,
6.63%, 7/31/01 10,132.3
----------
United States
(Cost -
$36,880.7) 36,309.9
Investment Companies (1%)
531,078 Dreyfus Treasury
Cash Management
Fund 531.1
----------
Total (Cost - $216,477.4) $208,209.7
(a) (98%)
==========
</TABLE>
Percentages indicated are based on net assets of $213,593,289.
(a) For federal income tax purposes, cost is $216,512.8, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 523,581
Unrealized depreciation (8,826,741)
-----------
Net unrealized
depreciation $(8,303,160)
===========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account.
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
12/20/99 Australian
Dollar (sell) 0.6601 $11,815,521 $ 397,863
11/01/99 Euro (sell) 1.0535 12,873 33
12/13/99 Euro (sell) 1.0605 50,693,334 293,731
11/22/99 New Zealand
Dollar (sell) 0.5292 37,148,436 1,622,743
----------- -----------
$99,670,164 $ 2,314,370
=========== ===========
Liabilities:
11/01/99 Euro (buy) 1.0525 $ 3,080 $ (5)
11/29/99 Euro (sell) 1.0431 21,175,539 (202,235)
12/13/99 Euro (sell) 1.0517 41,331,810 (105,521)
11/17/99 Swedish Krona (sell) 8.5007 22,409,919 (755,907)
----------- -----------
$84,920,348 $(1,063,668)
=========== ===========
</TABLE>
See notes to financial statements.
Annual Report 3
<PAGE>
Global Fixed Income Fund
Unaudited
The objective of the Global Fixed Income Fund is to realize a high level of to-
tal return consistent with preservation of capital. The Fund invests primarily
in investment grade U.S. and foreign government notes and bonds and U.S. and
foreign corporate debt securities. The Global Fixed Income Fund invests in se-
curities payable in U.S. dollars and foreign currencies.
Country Allocation
<TABLE>
- -------------------
<S> <C>
U.S. 46%
Germany 30%
United Kingdom 7%
Sweden 5%
New Zealand 5%
France 5%
Other 2%
- -------------------
</TABLE>
Credit Quality
<TABLE>
- --------
<S> <C>
AAA 79%
AA 9%
A 12%
BBB 0%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 0.56%
Three Year, 6.96%
Five Year, 8.63%
Since 9/1/92, 7.35%
. Global Fixed Income Fund $16,628
- -- J.P. Morgan Global Bond Hedged $17,572
- -- Lehman U.S. Treasury Index $15,628
<TABLE>
<CAPTION>
Global Fixed Income J.P. Morgan Global Hedged Lehman Treasury Index
9230 Value jpmglobh Value lehmtsy Value
------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BDATE EDATE 10,000 10,000 10,000
9/1/92 9/30/92 10,048 9/1/92 9/30/92 10,142 9/1/92 9/30/92 10,146
10/1/92 10/31/92 10,031 10/1/92 10/31/92 10,166 10/1/92 10/31/92 9,997
11/1/92 11/30/92 10,002 11/1/92 11/30/92 10,142 11/1/92 11/30/92 9,976
12/1/92 12/31/92 10,079 12/1/92 12/31/92 10,286 12/1/92 12/31/92 10,146
1/1/93 1/31/93 10,201 1/1/93 1/31/93 10,440 1/1/93 1/31/93 10,364
2/1/93 2/28/93 10,389 2/1/93 2/28/93 10,635 2/1/93 2/28/93 10,572
3/1/93 3/31/93 10,515 3/1/93 3/31/93 10,657 3/1/93 3/31/93 10,607
4/1/93 4/30/93 10,588 4/1/93 4/30/93 10,703 4/1/93 4/30/93 10,690
5/1/93 5/31/93 10,618 5/1/93 5/31/93 10,722 5/1/93 5/31/93 10,677
6/1/93 6/30/93 10,730 6/1/93 6/30/93 10,941 6/1/93 6/30/93 10,916
7/1/93 7/31/93 10,834 7/1/93 7/31/93 11,029 7/1/93 7/31/93 10,980
8/1/93 8/31/93 11,138 8/1/93 8/31/93 11,257 8/1/93 8/31/93 11,225
9/1/93 9/30/93 11,138 9/1/93 9/30/93 11,303 9/1/93 9/30/93 11,269
10/1/93 10/31/93 11,222 10/1/93 10/31/93 11,399 10/1/93 10/31/93 11,311
11/1/93 11/30/93 11,201 11/1/93 11/30/93 11,391 11/1/93 11/30/93 11,187
12/1/93 12/31/93 11,405 12/1/93 12/31/93 11,537 12/1/93 12/31/93 11,230
1/1/94 1/31/94 11,470 1/1/94 1/31/94 11,575 1/1/94 1/31/94 11,385
2/1/94 2/28/94 11,090 2/1/94 2/28/94 11,330 2/1/94 2/28/94 11,140
3/1/94 3/31/94 10,891 3/1/94 3/31/94 11,171 3/1/94 3/31/94 10,890
4/1/94 4/30/94 10,820 4/1/94 4/30/94 11,088 4/1/94 4/30/94 10,805
5/1/94 5/31/94 10,789 5/1/94 5/31/94 11,017 5/1/94 5/31/94 10,792
6/1/94 6/30/94 10,850 6/1/94 6/30/94 10,948 6/1/94 6/30/94 10,768
7/1/94 7/31/94 10,940 7/1/94 7/31/94 11,068 7/1/94 7/31/94 10,964
8/1/94 8/31/94 10,935 8/1/94 8/31/94 11,014 8/1/94 8/31/94 10,967
9/1/94 9/30/94 10,902 9/1/94 9/30/94 10,961 9/1/94 9/30/94 10,813
10/1/94 10/31/94 10,988 10/1/94 10/31/94 10,981 10/1/94 10/31/94 10,806
11/1/94 11/30/94 11,049 11/1/94 11/30/94 11,056 11/1/94 11/30/94 10,784
12/1/94 12/31/94 11,061 12/1/94 12/31/94 11,070 12/1/94 12/31/94 10,850
1/1/95 1/31/95 11,240 1/1/95 1/31/95 11,222 1/1/95 1/31/95 11,051
2/1/95 2/28/95 11,474 2/1/95 2/28/95 11,406 2/1/95 2/28/95 11,287
3/1/95 3/31/95 11,775 3/1/95 3/31/95 11,571 3/1/95 3/31/95 11,358
4/1/95 4/30/95 11,941 4/1/95 4/30/95 11,738 4/1/95 4/30/95 11,506
5/1/95 5/31/95 12,241 5/1/95 5/31/95 12,143 5/1/95 5/31/95 11,972
6/1/95 6/30/95 12,249 6/1/95 6/30/95 12,157 6/1/95 6/30/95 12,066
7/1/95 7/31/95 12,295 7/1/95 7/31/95 12,239 7/1/95 7/31/95 12,021
8/1/95 8/31/95 12,282 8/1/95 8/31/95 12,354 8/1/95 8/31/95 12,161
9/1/95 9/30/95 12,470 9/1/95 9/30/95 12,516 9/1/95 9/30/95 12,277
10/1/95 10/31/95 12,648 10/1/95 10/31/95 12,669 10/1/95 10/31/95 12,467
11/1/95 11/30/95 12,908 11/1/95 11/30/95 12,912 11/1/95 11/30/95 12,660
12/1/95 12/31/95 13,049 12/1/95 12/31/95 13,052 12/1/95 12/31/95 12,841
1/1/96 1/31/96 13,105 1/1/96 1/31/96 13,184 1/1/96 1/31/96 12,922
2/1/96 2/29/96 12,816 2/1/96 2/29/96 12,994 2/1/96 2/29/96 12,658
3/1/96 3/31/96 12,829 3/1/96 3/31/96 13,022 3/1/96 3/31/96 12,548
4/1/96 4/30/96 12,829 4/1/96 4/30/96 13,093 4/1/96 4/30/96 12,468
5/1/96 5/31/96 12,817 5/1/96 5/31/96 13,141 5/1/96 5/31/96 12,448
6/1/96 6/30/96 12,968 6/1/96 6/30/96 13,265 6/1/96 6/30/96 12,606
7/1/96 7/31/96 13,029 7/1/96 7/31/96 13,340 7/1/96 7/31/96 12,635
8/1/96 8/31/96 13,162 8/1/96 8/31/96 13,447 8/1/96 8/31/96 12,609
9/1/96 9/30/96 13,391 9/1/96 9/30/96 13,702 9/1/96 9/30/96 12,816
10/1/96 10/31/96 13,587 10/1/96 10/31/96 13,948 10/1/96 10/31/96 13,098
11/1/96 11/30/96 13,837 11/1/96 11/30/96 14,208 11/1/96 11/30/96 13,325
12/1/96 12/31/96 13,800 12/1/96 12/31/96 14,173 12/1/96 12/31/96 13,188
1/1/97 1/31/97 13,854 1/1/97 1/31/97 14,294 1/1/97 1/31/97 13,201
2/1/97 2/28/97 13,868 2/1/97 2/28/97 14,358 2/1/97 2/28/97 13,217
3/1/97 3/31/97 13,706 3/1/97 3/31/97 14,257 3/1/97 3/31/97 13,074
4/1/97 4/30/97 13,883 4/1/97 4/30/97 14,431 4/1/97 4/30/97 13,262
5/1/97 5/31/97 14,034 5/1/97 5/31/97 14,528 5/1/97 5/31/97 13,376
6/1/97 6/30/97 14,198 6/1/97 6/30/97 14,742 6/1/97 6/30/97 13,526
7/1/97 7/31/97 14,489 7/1/97 7/31/97 15,056 7/1/97 7/31/97 13,914
8/1/97 8/31/97 14,376 8/1/97 8/31/97 15,003 8/1/97 8/31/97 13,773
9/1/97 9/30/97 14,656 9/1/97 9/30/97 15,255 9/1/97 9/30/97 13,982
10/1/97 10/31/97 14,788 10/1/97 10/31/97 15,423 10/1/97 10/31/97 14,225
11/1/97 11/30/97 14,888 11/1/97 11/30/97 15,522 11/1/97 11/30/97 14,299
12/1/97 12/31/97 15,054 12/1/97 12/31/97 15,713 12/1/97 12/31/97 14,450
1/1/98 1/31/98 15,245 1/1/98 1/31/98 15,936 1/1/98 1/31/98 14,671
2/1/98 2/28/98 15,275 2/1/98 2/28/98 16,001 2/1/98 2/28/98 14,627
3/1/98 3/31/98 15,411 3/1/98 3/31/98 16,106 3/1/98 3/31/98 14,667
4/1/98 4/30/98 15,456 4/1/98 4/30/98 16,184 4/1/98 4/30/98 14,733
5/1/98 5/31/98 15,666 5/1/98 5/31/98 16,387 5/1/98 5/31/98 14,886
6/1/98 6/30/98 15,771 6/1/98 6/30/98 16,505 6/1/98 6/30/98 15,057
7/1/98 7/31/98 15,879 7/1/98 7/31/98 16,609 7/1/98 7/31/98 15,081
8/1/98 8/31/98 16,199 8/1/98 8/31/98 16,989 8/1/98 8/31/98 15,490
9/1/98 9/30/98 16,645 9/1/98 9/30/98 17,421 9/1/98 9/30/98 15,922
10/1/98 10/31/98 16,535 10/1/98 10/31/98 17,382 10/1/98 10/31/98 15,871
11/1/98 11/30/98 16,722 11/1/98 11/30/98 17,506 11/1/98 11/30/98 15,868
12/1/98 12/31/98 16,809 12/1/98 12/31/98 17,506 12/1/98 12/31/98 15,900
1/1/99 1/31/99 17,019 1/1/99 1/31/99 17,683 1/1/99 1/31/99 15,992
2/1/99 2/28/99 16,679 2/1/99 2/28/99 17,446 2/1/99 2/28/99 15,584
3/1/99 3/31/99 16,794 3/1/99 3/31/99 17,606 3/1/99 3/31/99 15,643
4/1/99 4/30/99 16,914 4/1/99 4/30/99 17,772 4/1/99 4/30/99 15,681
5/1/99 5/31/99 16,785 5/1/99 5/31/99 17,665 5/1/99 5/31/99 15,535
6/1/99 6/30/99 16,609 6/1/99 6/30/99 17,465 6/1/99 6/30/99 15,503
7/1/99 7/31/99 16,517 7/1/99 7/31/99 17,429 7/1/99 7/31/99 15,490
8/1/99 8/31/99 16,507 8/1/99 8/31/99 17,448 8/1/99 8/31/99 15,492
9/1/99 9/30/99 16,611 9/1/99 9/30/99 17,537 9/1/99 9/30/99 15,611
10/1/99 10/31/99 16,628 10/1/99 10/31/99 17,572 10/1/99 10/31/99 15,628
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $489.7
Number of Issues 33
Average Maturity 8.2 years
SEC Yield 5.33%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
France (Euro) (5%)
20,000,000 French Government
Bond, 7.75%, 4/12/00 $ 21,411.1
----------
France (Cost -
$23,247.9) 21,411.1
Germany (Euro) (30%)
15,000,000 Bayerhypo
Vereinsbank,
4.75%, 9/19/07 15,111.0
13,800,000 Bundesobligation -
120, 5.00%, 8/20/01 14,770.8
20,000,000 Bundesobligation -
124, 4.50%, 8/19/02 21,165.2
10,800,000 Deutsche
Ausgleichsbank,
4.00%, 7/4/09 10,127.5
28,500,000 Deutscheland,
7.38%, 1/3/05 33,328.9
27,400,000 German Government
Deutschland, 5.63%,
1/4/28 27,936.8
5,000,000 German Government
Deutschland, 4.50%,
7/4/09 4,994.5
15,000,000 Hypothekenbk,
5.50%, 2/20/07 15,900.7
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
5,112,919 KFW,
5.00%, 1/4/09 $ 5,208.8
----------
Germany (Cost -
$160,137.0) 148,544.2
Great Britain (British Pound)
(7%)
10,000,000 FNMA Global,
6.88%, 6/7/02 16,469.6
10,000,000 UK Gilt,
7.25%, 12/7/2007 17,926.3
----------
Great Britain
(Cost - $34,407.1) 34,395.9
New Zealand (New Zealand Dollar)
(5%)
45,900,000 New Zealand
Government Bond,
8.00%, 11/15/06 24,469.9
----------
New Zealand (Cost -
$25,437.9) 24,469.9
Sweden (Swedish Krona) (5%)
88,000,000 AB Spintab,
5.50%, 9/17/03 10,534.5
18,000,000 AB Spintab,
6.25%, 9/18/02 2,221.9
89,000,000 Statens Bostads,
5.50%, 10/15/03 10,631.5
</TABLE>
4 Payden & Rygel Investment Group
<PAGE>
Global Fixed Income Fund
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
18,000,000 Statens Bostads,
6.50%, 9/18/02 $ 2,234.1
----------
Sweden (Cost -
$26,629.2) 25,622.0
United States (United States
Dollar) (46%)
6,000,000 AT&T Corporation,
6.00%, 3/15/09 5,550.0
12,550,000 Caterpillar
Financial Services
Corporation,
6.74%, 4/5/00 (b) 12,589.7
14,000,000 Daimler Benz Vehicle
Trust,
5.16%, 1/20/03 13,806.5
5,000,000 Edison Mission
Energy,
7.73%, 6/15/09 5,025.0
6,000,000 Electronic Data
Systems,
6.85%, 10/15/04 5,992.5
60,000,000 FHLMC,
5.21%, 11/15/99 (b) 59,878.5
14,413,000 FHLMC,
6.00%, 9/15/06 14,316.3
13,236,764 FNMA 1998-11,
6.00%, 2/18/21 12,944.2
12,000,000 FNMA,
6.00%, 5/15/08 11,467.4
14,000,000 GMAC 1999-1,
5.58%, 6/15/02 13,851.6
7,500,000 John Deere Capital
Corp.,
6.35%, 3/15/01 (b) 7,481.3
6,600,000 John Deere Capital
Corp.,
6.39%, 9/18/00 (b) 6,624.9
12,800,000 U.S. Treasury Note,
6.00%, 2/15/26 (b) 12,127.6
39,000,000 U.S. Treasury Bond,
6.25%, 8/15/23 (b) 38,120.9
6,000,000 Wells Fargo & Co.,
6.63%, 7/15/04 5,947.5
----------
United States
(Cost - $230,034.3) 225,723.9
Investment Companies (1%)
3,326,983 Dreyfus Treasury
Cash Management Fund 3,327.0
----------
Total (Cost - $503,220.4) (a)
(99%) $483,494.0
==========
</TABLE>
Percentages indicated are based on net assets of $489,687,054.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,514,853
Unrealized depreciation (21,241,203)
------------
Net unrealized
depreciation $(19,726,350)
============
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account.
At October 31, 1999, the Fund's open foreign futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Contract Expiration Current Appreciation
Contracts Type Date Value (Depreciation)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
69 TSE 10yr JPN
Govt. Bond Mar-00 $86,134,052 $1,591,980
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
11/01/99 Euro (sell) 1.0535 $ 10,638 $ 27
12/13/99 Euro (sell) 1.0611 1,273,320 8,058
11/22/99 New Zealand
Dollar (sell) 0.5292 26,723,590 1,167,358
------------ -----------
$ 28,007,548 $ 1,175,443
============ ===========
Liabilities:
12/07/99 British
Pound (sell) 1.5551 $ 34,165,547 $(1,881,107)
11/29/99 Euro (sell) 1.0431 75,105,360 (717,288)
12/13/99 Euro (sell) 1.0517 94,968,510 (242,455)
12/13/99 Euro (sell) 1.0251 4,920,576 (140,472)
11/17/99 Swedish
Krona (sell) 8.5007 26,797,793 (903,914)
------------ -----------
$235,957,786 $(3,885,236)
============ ===========
</TABLE>
At October 31, 1999, the Fund's open swap contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Settle Appreciation
Date Contract Type Notional Principal (Depreciation)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mid Market
06/09/03 Swap Valuation (Pounds)10,000,000 $(509,852)
</TABLE>
For the above swap contract, the Fund contracted with Merrill Lynch in which
the Fund receives a fixed rate of 6.02% semi-annually and pays at a rate equal
to the 6 month LIBOR (London Interbank Offered Rate).
See notes to financial statements.
Annual Report 5
<PAGE>
Emerging Markets Bond Fund
Unaudited
The objective of the Emerging Markets Bond Fund is to realize a high level of
total return consistent with preservation of capital. The Fund invests at least
75% of its total 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 securi-
ties are rated below investment grade.
Country Allocation
<TABLE>
- -----------------
<S> <C>
Brazil 22%
Argentina 21%
Mexico 14%
Bulgaria 5%
Korea 5%
Russia 5%
Venezuela 5%
Poland 3%
Malaysia 4%
Philippines 4%
Morocco 2%
Panama 2%
Peru 2%
South Africa 2%
Other 4%
</TABLE>
Investment Performance
Average Annual Total Return
for the period ended October 31, 1999
Since 12/17/98, 14.96%
. Emerging Markets Bond Fund $11,292
- -- EMBI Global Constrained Index $11,293
<TABLE>
<CAPTION>
Emerging Markets Bond EMBI Global Constrained
<S> <C> <C>
12/17/98 10,000 10,000
12/31/98 9,900 10,000
1/31/99 9,640 9,884
2/28/99 9,670 9,945
3/31/99 10,371 10,477
4/30/99 11,132 11,044
5/31/99 10,391 10,513
6/30/99 10,875 10,818
7/31/99 10,667 10,665
8/31/99 10,667 10,631
9/30/99 10,958 10,942
10/31/99 11,292 11,293
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
-----------------------------------
<S> <C>
Net Assets (in millions) $11.3
Number of Issues 33
Average Maturity 14 years
SEC Yield 9.61%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Argentina (21%)
750,000 Argentina Discount,
6.00%, 3/31/23 $ 566.3
500,000 Argentina,
11.38%, 1/30/17 476.5
1,000,000 Argentina,
11.00%, 12/04/05 (b) 953.8
150,000 Multicanal Sa,
13.13%, 4/15/09 (d) 141.8
250,000 Telefonica Argentina,
9.13%, 5/7/08 (d) 215.0
---------
Argentina (Cost -
$2,367.1) 2,353.4
Brazil (22%)
1,819,815 Brazil C - Bond,
8.00%, 4/15/14 1,217.1
1,000,000 Brazil Discount,
5.88%, 4/15/24 692.4
470,000 Brazil Government
Bond,
6.94%, 4/15/06 (b) 382.8
250,000 Globo Communicacoes,
10.50%, 12/20/06 (d) 191.9
---------
Brazil (Cost -
$2,326.9) 2,484.2
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Bulgaria (5%)
750,000 Bulgaria,
6.50%, 7/28/24 $ 555.5
---------
Bulgaria (Cost -
$526.8) 555.5
Korea (5%)
250,000 Korea Development
Bank,
7.13%, 4/22/04 243.2
250,000 Korean Government
Bond,
8.88%, 4/15/08 259.7
---------
Korea (Cost - $496.8) 502.9
Malaysia (4%)
250,000 Malaysia,
8.75%, 6/1/09 256.8
250,000 Petroliam Nasional,
7.13%, 10/18/06 (d) 233.4
---------
Malaysia (Cost -
$487.7) 490.2
Mexico (14%)
150,000 Grupo Televisa,
11.88%, 5/15/06 159.0
500,000 Mexico,
10.38%, 2/17/09 506.9
</TABLE>
6 Payden & Rygel Investment Group
<PAGE>
Emerging Markets Bond Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
750,000 Mexico,
6.25%, 12/31/19 (b) $ 560.2
250,000 Petroleos Mexicanos,
8.85%, 9/15/07 227.5
500 United Mexican States
Foreign Warrants 34.2
150,000 Vitro,
11.38%, 5/15/07 (d) 130.9
---------
Mexico (Cost -
$1,623.1) 1,618.7
Morocco (2%)
250,000 Morocco Government
Bonds,
5.91%, 1/1/09 216.7
---------
Morocco (Cost -
$215.9) 216.7
Panama (2%)
250,000 Panama IRB,
3.50%, 7/17/14 186.1
---------
Panama (Cost -
$181.7) 186.1
Peru (2%)
500,000 Peru FLIRB,
3.75%, 3/7/17 274.4
---------
Peru (Cost - $301.3) 274.4
Philippines (4%)
250,000 Philippines Long
Distance,
10.50%, 4/15/09 245.6
250,000 Philippines,
8.88%, 4/15/08 244.2
---------
Philippines (Cost -
$484.4) 489.8
Poland (3%)
300,000 Poland PBS,
7.75%, 5/5/09 (d) 282.6
---------
Poland (Cost -
$299.0) 282.6
Russia (5%)
250,000 Russian Federation,
12.75%, 6/24/28 (d) 136.4
250,000 Russian Federation,
11.75%, 6/10/03 (d) 150.3
1,500,000 Russian Prin,
12/15/20 132.1
750,000 Russian IAN,
12/15/15 (c) 82.1
---------
Russia (Cost -
$452.6) 500.9
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
South Africa (2%)
250,000 South African
Government Bond,
9.13%, 5/19/09 $ 253.7
---------
South Africa (Cost -
$251.5) 253.7
Venezuela (5%)
714,281 Venezuela FLIRB,
6.13%, 3/31/07 567.8
---------
Venezuela (Cost -
$525.8) 567.8
Investment Companies (1%)
130,803 Dreyfus Treasury
Cash Management Fund 130.8
---------
Total (Cost - $10,671.5) (a)
(97%) $10,907.7
=========
</TABLE>
Percentages indicated are based on net assets of $11,283,197.
(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 $ 392,569
Unrealized depreciation (156,353)
---------
Net unrealized appreciation $ 236,216
=========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account as collateral.
(c) Bond is in default.
(d) 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.
FLIRB: Front Loaded Interest Reduction Bond
IAN: Interest Arrears Note
IRB: Interest Reduction Bond
PBS: Participation Backed Securities
Prin: Principal
See notes to financial statements.
Annual Report 7
<PAGE>
Global Balanced Fund
Unaudited
The objective of the Global Balanced Fund is to realize long-term capital ap-
preciation. The Fund divides the investment of its assets between a common
stock portfolio and an investment grade debt securities portfolio. The invest-
ment process includes allocation decisions between debt securities and common
stocks, between U.S. issuers and foreign issuers, and between securities pay-
able in U.S. dollars and in foreign currencies. The Fund may invest up to 20%
of its assets in emerging markets countries.
Top Equity Holdings
<TABLE>
- ------------------------------
<S> <C>
Wal-Mart Stores 2.5%
General Electric 2.3%
Bristol-Myers Squibb Co. 2.2%
Banco de Galicia, ADR 1.7%
Nokia Oyj-A 1.7%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 15,85%
Since 12/9/96, 11.57%
. Global Balanced Fund $13,726
- -- Composite Index $14,047*
<TABLE>
<CAPTION>
Global Balanced fund 60% MSCI world/40% JPM Global
9260 Value
<S> <C> <C> <C> <C> <C>
10000
11/1/96 11/30/96 10,000 11/1/96 11/30/96 10000
12/9/96 12/31/96 10,032 12/1/96 12/31/96 9,877
1/1/97 1/31/97 9,861 1/1/97 1/31/97 9,851
2/1/97 2/28/97 10,032 2/1/97 2/28/97 9,892
3/1/97 3/31/97 9,932 3/1/97 3/31/97 9,746
4/1/97 4/30/97 10,022 4/1/97 4/30/97 9,916
5/1/97 5/31/97 10,462 5/1/97 5/31/97 10,378
6/1/97 6/30/97 10,873 6/1/97 6/30/97 10,737
7/1/97 7/31/97 11,353 7/1/97 7/31/97 11,019
8/1/97 8/31/97 10,753 8/1/97 8/31/97 10,572
9/1/97 9/30/97 11,213 9/1/97 9/30/97 11,012
10/1/97 10/31/97 10,949 10/1/97 10/31/97 10,758
11/1/97 11/30/97 11,101 11/1/97 11/30/97 10,822
12/1/97 12/31/97 11,288 12/1/97 12/31/97 10,897
1/1/98 1/31/98 11,439 1/1/98 1/31/98 11,124
2/1/98 2/28/98 11,979 2/1/98 2/28/98 11,610
3/1/98 3/31/98 12,381 3/1/98 3/31/98 11,870
4/1/98 4/30/98 12,404 4/1/98 4/30/98 12,014
5/1/98 5/31/98 12,447 5/1/98 5/31/98 11,945
6/1/98 6/30/98 12,437 6/1/98 6/30/98 12,129
7/1/98 7/31/98 12,448 7/1/98 7/31/98 12,132
8/1/98 8/31/98 11,215 8/1/98 8/31/98 11,297
9/1/98 9/30/98 11,575 9/1/98 9/30/98 11,653
10/1/98 10/31/98 11,848 10/1/98 10/31/98 12,391
11/1/98 11/30/98 12,426 11/1/98 11/30/98 12,778
12/1/98 12/31/98 12,888 12/1/98 12/31/98 13,250
1/1/99 1/31/99 12,970 1/1/99 1/31/99 13,382
2/1/99 2/28/99 12,609 2/1/99 2/28/99 12,990
3/1/99 3/31/99 12,923 3/1/99 3/31/99 13,329
4/1/99 4/30/99 13,365 4/1/99 4/30/99 13,644
5/1/99 5/31/99 12,900 5/1/99 5/31/99 13,247
6/1/99 6/30/99 13,288 6/1/99 6/30/99 13,531
7/1/99 7/31/99 13,253 7/1/99 7/31/99 13,626
8/1/99 8/31/99 13,347 8/1/99 8/31/99 13,627
9/1/99 9/30/99 13,302 9/1/99 9/30/99 13,627
10/1/99 10/31/99 13,726 10/1/99 10/31/99 14,047
</TABLE>
Note: Past performance does not predict future performance. This information is
not part of the audited financial statements. *Composite Index is 60% MOrgan
Stanley World Equity Index, 40% JP Morgan Global Bond Index.
Statistics
<TABLE>
----------------------------------
<S> <C>
Net Assets (in
millions) $8.6
Number of Issues 74
Average Market Cap
(Equity) $38.0 Billion
SEC Yield 2.02%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Common Stocks (57%)
Basic Materials (3%)
1,600 BASF AG $ 71.9
600 Henkel KGAA Vorzug 40.7
4,300 Rio Tinto PLC 73.4
2,250 UPM-Kymmene Oyj 70.9
--------
Basic Materials 256.9
Consumer Cyclicals (6%)
1,000 Deutsche Bank AG 71.7
3,000 Electrolux Series B 59.7
1,500 Karstadt AG 67.8
1,100 MediaOne Group, Inc. 78.2
300 PSA Peugeot Citroen 57.5
3,800 Wal-Mart Stores, Inc. 215.4
--------
Consumer Cyclicals 550.3
Consumer Non-Cyclicals (9%)
3,200 Bass PLC 35.1
2,412 Bristol - Myers
Squibb Co. 185.3
8,000 Cadbury Schweppes PLC 52.3
1,400 Cardinal Health, Inc. 60.4
480 Carrefour Supermarche 88.8
1,740 Glaxo Wellcome PLC 51.3
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
1,200 Merck & Company, Inc. $ 95.5
25 Nestle SA 48.2
30 Novartis AG 44.9
1,000 Rhone Poulenc SA 55.9
1,160 Sanofi-Synthelabo SA
(b) 51.1
--------
Consumer Non-
Cyclicals 768.8
Energy (4%)
7,126 British Petroleum
Amoco 69.0
8,200 ENI SpA 47.9
986 Exxon Corporation 73.0
3,000 Repsol SA 61.8
6,500 Shell Transporting &
Trading 49.8
658 Total Fina SA 88.8
--------
Energy 390.3
Financials (11%)
150 Allianz AG 45.6
3,500 Allied Irish Banks
PLC 43.8
1,600 Assicurazioni
Generali 51.3
6,875 Banco de Galicia y
Buenos Aire - ADR 145.2
5,435 Bank of Scotland 67.7
1,000 Banque Nationale de
Paris 87.7
1,500 Capital One Financial 79.6
</TABLE>
8 Payden & Rygel Investment Group
<PAGE>
Global Balanced Fund
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- -----------------------------------------------
<C> <S> <C>
9,500 Credito Italiano SpA $ 44.4
623 DaimlerChrysler 48.4
1,840 Fortis Amev NV 63.3
3,793 Halifax PLC 48.4
4,600 Lloyds TSB Group PLC 63.5
2,300 Royal Bank of
Scotland Group PLC 52.9
300 UBS AG 87.3
--------
Financials 929.1
Industrial (9%)
4,200 CRH PLC 79.2
1,472 General Electric Co. 199.6
600 Lafarge SA 57.7
570 Mannesmann AG 89.6
1,000 Preussag AG 54.1
800 Siemens AG 71.7
100 Sulzer AG 70.2
3,200 Tyco International,
Ltd. 127.8
900 Veba AG 48.6
--------
Industrial 798.5
Technology (9%)
500 Alcatel Alsthom 78.0
2,200 Altera Corporation (b) 107.0
400 Cap Gemini S.A. 60.5
900 Equant NV (b) 87.5
1,320 Lexmark International
Group, Inc. (b) 103.0
1,270 Nokia Oyj - A 145.2
18,000 Rolls Royce PLC 63.8
22,500 Vodafone 104.5
--------
Technology 749.5
Utilities (6%)
11,000 BG PLC 61.0
4,300 British Telecom PLC 77.8
1,873 Deutsche Telekom 86.0
600 France Telecom SA 57.9
520 Suez Lyonnaise des
Eaux 83.9
8,800 Telecom Italia Mobile
SpA 54.9
4,200 Telefonica SA (b) 69.0
--------
Utilities 490.5
--------
Total Common Stocks (Cost - 4,933.9
$3,891.1)
Bonds and Notes (30%)
Foreign Government (16%)
300,000 Bundesobligation -
120,
5.00%, 8/20/01 321.1
100,000 Germany Federal
Republic Bond,
5.63%, 1/4/28 102.0
600,000 German Government
Bond,
6.00%, 1/4/07 663.7
200,000 New Zealand
Government Bond,
8.00%, 11/15/06 106.6
100,000 UK Gilt,
7.25%, 12/7/07 179.3
--------
Foreign Government 1,372.7
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
U.S. Treasury (14%)
350,000 U.S. Treasury Bond,
6.25%, 8/15/23 $ 342.1
700,000 U.S. Treasury Note,
5.75%, 10/31/02 697.4
130,000 U.S. Treasury Note,
6.38%, 5/15/00 130.6
--------
U.S. Treasury 1,170.1
--------
Total Bonds and Notes (Cost - 2,542.8
$2,615.0)
Investment Companies (12%)
1,044,093 Dreyfus Treasury
Cash Management Fund 1,044.1
--------
Total (Cost - $7,550.2) (a) $8,520.8
(99%)
========
</TABLE>
Percentages indicated are based on net assets of $8,624,188.
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 $1,165,320
Unrealized depreciation (194,780)
----------
Net unrealized
appreciation $ 970,540
==========
</TABLE>
(b)Non-income producing security.
At October 31, 1999, the Fund's open foreign futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Dec 99 All Ords Index Dec-99 45,886 (64)
4 Dec 99 All TSE Topix Dec-99 600,229 5,772
2 Hang Seng Index Nov-99 171,761 33,335
-------
$39,043
=======
</TABLE>
Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
11/01/99 Euro (sell) 1.0535 $ 231 $ 1
12/13/99 Euro (sell) 1.0605 710,555 4,117
11/22/99 New Zealand Dollar (sell) 0.5292 105,836 4,623
-------- ------
$816,622 $8,741
======== ======
</TABLE>
See notes to financial statements.
Annual Report 9
<PAGE>
Eurodirect Fund
Unaudited
The objective of the EuroDirect Fund is to realize long term capital apprecia-
tion. The Fund divides the investment of its assets between an equity portfolio
and an investment grade debt securities portfolio of companies primarily lo-
cated in European countries with developed capital markets. The securities may
be payable in U.S. dollars or in foreign currencies. The Fund may also invest
up to 20% of its assets in European emerging markets countries.
Top Equity Holdings
<TABLE>
- -------------------------
<S> <C>
Nokia Oyj-A 1.5%
Equant 1.4%
British Telecom PLC 1.4%
PSA Peugeot-Citroen 1.1%
Endesa SA 1.1%
</TABLE>
Investment Performance
Average Annual Total Return
for the period ended October 31, 1999
Since 12/17/98, 6.46%
. EuroDirect fund $10,564
- -- Composite Index $10,067*
<TABLE>
<CAPTION>
EuroDirect Fund 60% DJ Europe Stoxx/40% JPM Global bond (unhedged)
Value
<S> <C> <C> <C> <C> <C>
10,000
12/17/98 12/31/98 10,280 12/17/98 12/31/98 10,000
1/1/99 1/31/99 10,440 1/1/99 1/31/99 9,983
2/1/99 2/28/99 10,130 2/1/99 2/28/99 9,689
3/1/99 3/31/99 10,151 3/1/99 3/31/99 9,753
4/1/99 4/30/99 10,501 4/1/99 4/30/99 9,930
5/1/99 5/31/99 10,201 5/1/99 5/31/99 9,587
6/1/99 6/30/99 10,381 6/1/99 6/30/99 9,631
7/1/99 7/31/99 10,391 7/1/99 7/31/99 9,767
8/1/99 8/31/99 10,471 8/1/99 8/31/99 9,866
9/1/99 9/30/99 10,281 9/1/99 9/30/99 9,868
10/1/99 10/31/99 10,561 10/1/99 10/31/99 10,067
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
*Composite Index is 60% Dow Jones Europe Stoxx,
40% JP Morgan Global Bond (unhedged)
Statistics
<TABLE>
----------------------------------------
<S> <C>
Net Assets (in millions) $9.7
Number of Issues 58
Average Market Cap $24.7 billion
SEC Yield 1.31%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Common Stocks (65%)
Basic Materials (4%)
2,400 BASF AG $ 107.8
1,500 Henkel AG 101.7
6,700 Rio Tinto PLC 114.4
3,500 UPM-Kymmene Oyj 110.3
--------
Basic Materials 434.2
Consumer Cyclicals (5%)
1,250 DaimlerChrysler AG 97.2
5,600 Electrolux 111.5
6,500 GKN PLC 103.9
700 PSA Peugeot-Citroen 134.2
--------
Consumer Cyclicals 446.8
Consumer Non-Cyclicals (8%)
7,400 Bass PLC 81.1
660 Carrefour
Supermarche 122.1
3,800 Glaxo Wellcome PLC 112.0
60 Nestle 115.8
75 Novartis AG 112.3
1,700 Rhone Polenc 95.0
2,800 Sanofi-Synthelabo SA
(b) 123.4
--------
Consumer Non-
Cyclicals 761.7
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Energy (6%)
11,800 British Petroleum
Amoco $ 114.3
17,000 ENI SpA 99.3
5,600 Repsol-YPF SA 115.4
14,000 Shell Transporting &
Trading 107.1
1,023 Total Fina SA 138.1
--------
Energy 574.2
Financials (16%)
400 Allianz AG 121.7
4,700 Argentaria de Espana 104.2
3,200 Assicurazione
Generale 102.5
12,400 Bank of Ireland 96.7
7,750 Bank of Scotland 96.5
1,250 Banque Nationale de
Paris 109.7
24,500 Credito Italiano SpA 114.6
1,600 Deutsche Bank AG 114.7
3,300 Fortis N.V. 113.5
8,500 Halifax PLC 108.4
7,700 Lloyds TSB Group PLC 106.3
5,000 Royal Bank of
Scotland Group PLC 115.0
370 UBS AG 107.7
200 Zurich Allied AG 113.3
--------
Financials 1,524.8
</TABLE>
10 Payden & Rygel Investment Group
<PAGE>
Eurodirect Fund
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Industrial (8%)
6,000 CRH PLC $ 113.1
21,000 Invensys PLC 103.0
1,100 Lafarge 105.8
700 Mannesmann AG 110.0
2,150 Preussag AG 116.3
180 Sulzer AG 126.5
1,900 Veba AG 102.6
--------
Industrial 777.3
Technology (9%)
830 Alcatel Alsthom 129.5
770 Cap Gemini 116.5
1,400 Equant (b) 136.1
1,300 Nokia Oyj - A 148.7
24,000 Rolls Royce PLC 85.0
18,600 Telecom Italia Mobile
SpA 116.1
26,750 Vodafone PLC 124.2
--------
Technology 856.1
Utilities (9%)
18,500 BG PLC 102.5
12,094 British Energy PLC 82.0
7,500 British Telecom PLC 135.8
2,400 Deutsche Telekom 110.2
5,200 Endesa SA 104.0
1,400 France Telecom 135.1
650 Suez Lyonnaise Des
Eaux 104.8
6,900 Telefonica SA (b) 113.4
--------
Utilities 887.8
--------
Total Common Stocks (Cost - 6,262.9
$6,232.2)
U.S. Government Agency (29%)
2,800,000 FHLMC Discount Note,
5.15%, 11/18/99 2,793.2
Investment Companies (6%)
553,551 Dreyfus Treasury
Cash Management Fund 553.6
--------
Total (Cost - $9,579.0) (a) $9,609.7
(100%)
========
</TABLE>
Percentages indicated are based on net assets of $9,655,643.
All of the securities listed above are held by the custodian in a segregated
account.
(a) For federal income tax purposes, cost is $9,629.8, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 265,946
Unrealized depreciation (285,973)
---------
Net unrealized appreciation $ (20,027)
=========
</TABLE>
(b) Non-income producing security.
At October 31, 1999, the Fund's open foreign futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5 Dec 99 LIF Long Gilt Dec-99 885,676 $(16,525)
21 Dec 99 EURX EUR-Bund Dec-99 2,337,321 3,449
--------
$(13,076)
========
</TABLE>
See notes to financial statements.
Annual Report 11
<PAGE>
European Growth & Income Fund
Unaudited
The objective of the European Growth & Income Fund is to realize capital appre-
ciation 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. The issuers have the lowest "peg ratios" of common
stocks with the largest market capitalizations in Europe. A company's "peg ra-
tio" 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 com-
pany.
Top Equity Holdings
<TABLE>
- -------------------------
<S> <C>
BPB PLC 2.4%
Premier Farnell PLC 2.2%
Havas Advertising 2.2%
Deutsche Bank AG 1.9%
ABB AG 1.8%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 8.39%
Since 6/30/97, 10.45%
. European Growth & Income Fund $12,625
- -- Dow Jones Europe Stoxx Index $14,446
<TABLE>
<CAPTION>
Euro Growth & Income DJ Europe Stoxx
<S> <C> <C>
7/1/97 10000 10000
7/31/97 10,370 10,430
8/31/97 9,940 9,855
9/30/97 10,680 10,852
10/31/97 10,190 10,312
11/30/97 10,260 10,500
12/31/97 10,511 10,823
1/31/98 10,951 11,219
2/28/98 11,581 12,102
3/31/98 12,351 12,986
4/30/98 12,571 13,035
5/31/98 13,011 13,688
6/30/98 13,091 13,841
7/31/98 13,162 14,097
8/31/98 11,647 12,349
9/30/98 11,089 11,826
10/31/98 11,648 12,721
11/30/98 11,882 13,396
12/31/98 12,156 13,947
1/31/99 12,051 13,984
2/28/99 11,830 13,609
3/31/99 11,977 13,735
4/30/99 12,734 14,152
5/31/99 12,208 13,509
6/30/99 12,264 13,764
7/31/99 12,750 13,886
8/31/99 12,866 14,096
9/30/99 12,530 13,965
10/31/99 12,625 14,446
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
---------------------------------------
<S> <C>
Net Assets (in millions) $38.2
Number of Issues 68
Average Market Cap $5.5 billion
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Common Stocks (93%)
Basic Materials (8%)
14,563 Akzo Nobel NV $ 626.5
15,700 BASF AG 705.3
1,110 Clariant AG 486.1
11,400 Hoechst AG 501.3
7,800 Solvay SA 597.9
---------
Basic Materials 2,917.1
Consumer Cyclicals (25%)
5,600 Adidas-Salomon 404.9
190,400 Arcadia Group 478.6
292,600 Bryant Group PLC 595.2
350 CIE Finance 669.1
10,200 Cristaleria Espanola 478.0
5,600 DaimlerChrysler AG 435.5
22,800 Deutsche Lufthansa 479.2
4,300 Guilbert SA 640.7
2,800 Havas Advertising 784.1
14,000 Karstadt AG 632.6
12,100 Michelin CGDE Class B 526.4
25,600 Modelo Continente
SGPS 431.8
46,800 Moulinex (b) 459.3
48,800 Next PLC 524.7
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
3,000 PSA Peugeot Citroen $ 575.3
11,000 Renault 568.7
9,500 TAKKT AG (b) 54.9
6,100 Valeo SA 437.8
8,200 Volkswagen 484.2
---------
Consumer Cyclicals 9,661.0
Consumer Non-Cyclicals (5%)
9,500 Gehe AG 331.4
378,000 Parmaluat Finanziaria 496.1
4,200 Schering AG 499.2
9,100 SEITA 506.8
---------
Consumer Non-
Cyclicals 1,833.5
Energy (3%)
362 BP Amoco PLC 3.5
44,700 CIA Espanola De
Petroleo 488.5
4,600 Electrafina NPV 524.9
---------
Energy 1,016.9
Financials (22%)
26,300 ABN Amro Holding NV 635.3
30,900 Allied Irish Banks
PLC 386.4
9,500 Assurances Gen de
France 529.1
98,000 Banca Intesa SpA 418.1
</TABLE>
12 Payden & Rygel Investment Group
<PAGE>
European Growth & Income Fund
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
53,800 Banco Santander
Central Hispano SA $ 559.1
51,600 Bank of Ireland 402.9
6,695 Banque Nationale de
Paris 587.4
19,900 Barclays Bank PLC 608.2
78,000 BPI-SGPS SA 311.4
14,100 Commerzbank AG 537.1
10,200 Deutsche Bank AG 731.0
27,400 Royal Bank of
Scotland Group PLC 630.1
31,000 San Paolo IMI 401.3
240 Schweizerische
Rueckversicherungs-
Gesellschaft 497.9
2,869 Societe Generale 624.1
1,940 UBS AG 564.9
---------
Financials 8,424.3
Industrial (22%)
7,132 ABB AG 718.6
89,800 BBA Group PLC 626.1
160,400 BPB PLC 944.6
7,300 Gevaert NV 379.7
4,000 Holzmann AG (b) 580.0
30,700 Metallgesellschaft AG 637.1
12,000 Norsk Hydro SA 479.0
4,600 Oerlikon-Buehrle
Holdings 694.6
178,800 Premier Farnell PLC 850.6
175,100 Rexam PLC 718.1
2,700 S.I.T.A. 624.2
32,900 Semapa-Sociedade de
Investimento e Gestao
SA 591.9
27,000 Thyssen Krupp AG (b) 638.4
---------
Industrial 8,482.9
Technology (3%)
3,600 Alcatel 561.8
78,000 Telecom Italia Mobile
SpA 486.8
---------
Technology 1,048.6
Utilities (5%)
82,200 British Energy PLC 557.5
4,100 EVN AG 588.1
66,500 National Power PLC 448.6
11,000 Portugal Telecom 490.1
---------
Utilities 2,084.3
---------
Total Common Stocks (Cost - 35,468.6
$34,569.4)
U.S. Government Agency (1%)
200,000 FHLMC,
5.15%, 11/18/99 199.5
Investment Companies (9%)
3,549,219 Dreyfus Treasury
Cash Management Fund 3,549.2
---------
Total (Cost - $38,318.1) (a) $39,217.3
(103%)
=========
</TABLE>
Percentages indicated are based on net assets of $38,243,143.
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 $ 3,318,027
Unrealized depreciation (2,418,797)
-----------
Net unrealized
appreciation $ 899,230
===========
</TABLE>
(b) Non-income producing security.
At October 31, 1999, the Fund's open foreign futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7 Dec 99 FTSE 100 Dec-99 $722,603 $ 32,809
15 Dec 99 MTF CAC40
10EU Dec-99 772,164 49,840
5 Dec 99 EURX DAX
Index Dec-99 727,624 32,290
--------
$114,939
========
</TABLE>
See notes to financial statements.
Annual Report 13
<PAGE>
European Aggressive Growth Fund
Unaudited
The objective of the European Aggressive Growth Fund is to realize long term
capital appreciation. The Fund primarily invests in the common stocks of 40-70
issuers organized or headquartered in European countries. Under normal market
conditions the Fund will have a weighted average market capitalization (total
market price of outstanding securities) of no greater than $1 billion. The Fund
may also invest up to 20% of its assets in European emerging markets countries.
Top Equity Holdings
<TABLE>
- -----------------------------
<S> <C>
Psion PLC 4.9%
Gruppo Editoriale 4.2%
Kamps AG 3.3%
Nestor Healthcare Group 3.2%
ADVA AG 3.2%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
Since 6/17/99,37.83%
. European Aggressive Growth Fund $11,280
- -- Dow Jones Europe Stoxx Index $10,496
<TABLE>
<CAPTION>
European Agressive Growth Dow Jones Europe Stoxx
Value sxxv Value
-------- --------
<S> <C> <C> <C> <C> <C>
10,000 10,000
6/16/99 6/30/99 9,930 6/16/99 6/30/99 10,000
7/1/99 7/31/99 9,980 7/1/99 7/31/99 10,089
8/1/99 8/31/99 10,129 8/1/99 8/31/99 10,241
9/1/99 9/30/99 10,310 9/1/99 9/30/99 10,146
10/1/99 10/31/99 11,280 10/1/99 10/31/99 10,496
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $10.2
Number of Issues 49
Average Market Cap $1.3 billion
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Common Stocks (99%)
Consumer Cyclicals (16%)
48,000 Atlantic Telecom
Group (b) $ 278.0
19,600 Gruppo Editoriale 425.3
1,000 Havas Advertising 280.0
400 Medion AG 107.2
8,500 Pininfarina SpA 221.5
6,500 Pizza Express PLC 86.1
100,000 Scoot.com PLC (b) 70.5
95,300 Seat Pagine Gialle
SpA 135.7
---------
Consumer Cyclicals 1,604.3
Consumer Non-Cyclicals (21%)
1,500 Allbecon AG 84.3
1,200 Coloplast A/S-Class B 118.0
1,000 Gretag Imaging Group 126.7
6,000 Kamps AG (b) 335.4
33,800 Nestor Healthcare
Group 330.0
500 Penauille
Polyservices 164.1
100 Phonak Holdings 154.3
4,500 Rhon Klinikum 182.1
5,300 Sanochemia
Pharmazeuthika (b) 110.3
400 Selectra Group 141.5
4,200 Serco Group 120.6
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
700 Tecan AG $ 241.3
---------
Consumer Non-
Cyclicals 2,108.6
Financials (4%)
4,000 New Venturetec AG (b) 226.8
6,000 Tecis Holdings AG (b) 189.1
---------
Financials 415.9
Industrial (9%)
600 Altran Technologies
SA 205.5
150 Kaba Holdings AG-Reg.
B 110.3
55,000 Pace Micro Technology 246.5
50,700 Shanks & McEwan Group
(b) 197.1
4,800 Tomra Systems ASA 183.6
---------
Industrial 943.0
Technology (49%)
3,000 ADVA AG (b) 324.7
2,000 Aixtron AG 221.7
1,700 Atos SA (b) 217.6
10,000 Baltimore
Technologies PLC 321.7
1,700 Brokat Infosystems AG
(b) 207.7
29,700 FI Group PLC 250.9
15,000 Filtronic PLC 277.3
</TABLE>
14 Payden & Rygel Investment Group
<PAGE>
European Aggressive Growth Fund
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
2,400 GFI Informatique $ 214.4
1,400 Infogrames
Entertainment (b) 129.6
1,800 Intershop
Communications AG (b) 225.1
1,000 Ixos Software AG (b) 134.0
50 Kudelski SA (b) 208.1
15,600 Logica PLC 238.1
10,000 Merkantildata 84.8
20,000 Psion PLC 502.0
6,200 Qiagen NV 323.8
14,950 Quante AG Vorz. (b) 175.9
25,000 Sherwood
International 248.1
12,000 Tandberg ASA (b) 247.9
19,000 Tandberg Television
ASA (b) 225.3
2,200 Telinfo NV 208.0
---------
Technology 4,986.7
---------
Total Common Stocks (Cost -
$8,765.1) 10,058.5
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Investment Companies (1%)
164,502 Dreyfus Treasury
Cash Management Fund $ 164.5
---------
Total (Cost - $8,929.6) (a)
(100%) $10,223.0
=========
</TABLE>
Percentages indicated are based on net assets of $10,187,191.
(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 $1,562,086
Unrealized depreciation (268,684)
----------
Net unrealized appreciation $1,293,402
==========
</TABLE>
(b) Non-income producing security.
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
11/2/99 Swiss Franc (buy) 1.5260 $127,788 $235
====
Liabilities:
11/1/99 Euro (sell) 1.0507 $ 96,475 $ (9)
====
</TABLE>
See notes to financial statements.
Annual Report 15
<PAGE>
Growth & Income Fund
Unaudited
The objective of the Growth & Income Fund is to provide growth of capital and
some current income. To achieve these objectives the Growth & Income Fund nor-
mally invests approximately half of its assets in the ten stocks in the Dow
Jones Industrial Average with the highest dividend yields. This strategy is
commonly referred to as investing in the "dogs of the Dow." The remaining as-
sets are invested in securities intended to replicate the total return of the
S&P 500 Index, normally Standard & Poor's Depository Receipts, and equity index
mutual funds.
Top Equity Holdings
<TABLE>
- --------------------------------------
<S> <C>
Minnesota Mining & Manufacturing 5.6%
J.P. Morgan & Co. 5.0%
Exxon Corp. 4.6%
Chevron Corp. 4.9%
Caterpillar Inc. 4.8%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 16.47%
Five Year, 20.13%
Since 11/1/96, 20.13%
. Global & Income Fund $17,327
- -- Standard & Poor's 500 Barra Value Index $16,231
<TABLE>
<CAPTION>
Growth & Income Fund S&P 500 Barra Value
5439 svx
<S> <C> <C> <C> <C> <C>
BDATE EDATE 10000 10000
11/1/96 11/30/96 10,640 11/1/96 11/30/96 10,735
12/1/96 12/31/96 10,639 12/1/96 12/31/96 10,543
1/1/97 1/31/97 11,191 1/1/97 1/31/97 11,014
2/1/97 2/28/97 11,331 2/1/97 2/28/97 11,065
3/1/97 3/31/97 10,905 3/1/97 3/31/97 10,668
4/1/97 4/30/97 11,369 4/1/97 4/30/97 11,051
5/1/97 5/31/97 12,084 5/1/97 5/31/97 11,706
6/1/97 6/30/97 12,486 6/1/97 6/30/97 12,134
7/1/97 7/31/97 13,294 7/1/97 7/31/97 13,085
8/1/97 8/31/97 12,759 8/1/97 8/31/97 12,467
9/1/97 9/30/97 13,354 9/1/97 9/30/97 13,175
10/1/97 10/31/97 12,919 10/1/97 10/31/97 12,672
11/1/97 11/30/97 13,425 11/1/97 11/30/97 13,127
12/1/97 12/31/97 13,503 12/1/97 12/31/97 13,399
1/1/98 1/31/98 13,452 1/1/98 1/31/98 13,220
2/1/98 2/28/98 14,379 2/1/98 2/28/98 14,178
3/1/98 3/31/98 15,030 3/1/98 3/31/98 14,878
4/1/98 4/30/98 15,214 4/1/98 4/30/98 15,037
5/1/98 5/31/98 14,999 5/1/98 5/31/98 14,788
6/1/98 6/30/98 15,123 6/1/98 6/30/98 14,882
7/1/98 7/31/98 15,145 7/1/98 7/31/98 14,541
8/1/98 8/31/98 13,189 8/1/98 8/31/98 12,178
9/1/98 9/30/98 14,023 9/1/98 9/30/98 12,895
10/1/98 10/31/98 14,877 10/1/98 10/31/98 13,885
11/1/98 11/30/98 15,546 11/1/98 11/30/98 14,580
12/1/98 12/31/98 15,946 12/1/98 12/31/98 15,070
1/1/99 1/31/99 16,211 1/1/99 1/31/99 15,357
2/1/99 2/28/99 15,745 2/1/99 2/28/99 14,996
3/1/99 3/31/99 16,284 3/1/99 3/31/99 15,429
4/1/99 4/30/99 17,755 4/1/99 4/30/99 16,739
5/1/99 5/31/99 17,237 5/1/99 5/31/99 16,408
6/1/99 6/30/99 17,823 6/1/99 6/30/99 17,017
7/1/99 7/31/99 17,345 7/1/99 7/31/99 16,479
8/1/99 8/31/99 17,260 8/1/99 8/31/99 16,028
9/1/99 9/30/99 16,752 9/1/99 9/30/99 15,380
10/1/99 10/31/99 17,327 10/1/99 10/31/99 16,231
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
--------------------------------
<S> <C>
Net Assets $268.9
Number of Issues 17
Gross Dividend Yield* 2.73%
Dividends Yield/S&P 500 1.24%
</TABLE>
-------
* Prior to fund expenses
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Common Stocks (49%)
Communication Services (3%)
188,398 AT&T Corporation $ 8,807.6
Basic Materials (8%)
178,537 Du Pont (E.I.) De
Nemours & Co. 11,504.5
194,219 International Paper
Company 10,220.8
2,732 Union Carbide
Corporation 166.6
----------
Basic Materials 21,891.9
Consumer Cyclicals (6%)
109,200 Delphi Automotive
Systems 1,795.0
156,240 General Motors
Corporation 10,975.9
76,600 Goodyear Tire &
Rubber 3,164.5
----------
Consumer Cyclicals 15,935.4
Consumer Non-Cyclicals (7%)
175,558 Eastman Kodak 12,102.5
272,789 Phillip Morris
Companies, Inc. 6,870.9
----------
Consumer Non-
Cyclicals 18,973.4
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Energy (10%)
144,445 Chevron Corp. $ 13,189.6
168,972 Exxon Corp. 12,514.5
----------
Energy 25,704.1
Financial (5%)
102,572 J.P. Morgan & Co. 13,424.1
Health Care (0%)
5,450 Merck & Company Inc. 433.6
Industrial (10%)
233,726 Caterpillar Inc. 12,913.4
158,762 Minnesota Mining &
Manufacturing 15,092.3
----------
Industrial 28,005.7
----------
Total Common Stocks (Cost - 133,175.8
$118,364.0)
</TABLE>
16 Payden & Rygel Investment Group
<PAGE>
Growth & Income Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Investment Companies (51%)
2,708,094 Dreyfus Treasury Cash
Management Fund $ 2,708.1
972,994 S & P 500 Depository
Receipt 133,300.2
----------
Investment Companies 136,008.3
----------
Total (Cost - $207,415.4) (a) $269,184.1
(100%)
==========
</TABLE>
Percentages indicated are based on net assets of $268,923,604.
(a) For federal income tax purposes, cost is $207,651.7, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $66,873,352
Unrealized depreciation (5,340,985)
-----------
Net unrealized appreciation $61,532,367
===========
</TABLE>
See notes to financial statements.
Annual Report 17
<PAGE>
Market Return Fund
Unaudited
The objective of the Market Return Fund is to realize 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-pro-
ducing securities and a portfolio of equity-based derivative instruments, such
as stock index futures contracts and equity swap contracts.
Portfolio Composition
<TABLE>
- ---------------------
<S> <C>
Mortgage Backed 30%
Asset Backed 24%
Corporate Bonds 19%
Commercial Paper 12%
Treasury 7%
Other 8%
- ---------------------
</TABLE>
Equity Exposure
<TABLE>
- -----------------------------
<S> <C>
S&P Futures 100%
S&P Depository Receipts 0%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 24.41%
Three Year, 24.76%
Since 12/1/95, 22.50%
. Market Return Fund $22,148
- -- Standard & Poor's 500 Index $24,077
<TABLE>
<CAPTION>
Market Return Fund S&P 500 Index
5438 sp500
BDATE EDATE 10000 10000
<S> <C> <C> <C> <C> <C>
12/1/95 12/31/95 10,163 12/1/95 12/31/95 10,193
1/1/96 1/31/96 10,552 1/1/96 1/31/96 10,540
2/1/96 2/29/96 10,357 2/1/96 2/29/96 10,637
3/1/96 3/31/96 10,369 3/1/96 3/31/96 10,740
4/1/96 4/30/96 10,355 4/1/96 4/30/96 10,898
5/1/96 5/31/96 10,491 5/1/96 5/31/96 11,179
6/1/96 6/30/96 10,695 6/1/96 6/30/96 11,222
7/1/96 7/31/96 10,166 7/1/96 7/31/96 10,726
8/1/96 8/31/96 10,337 8/1/96 8/31/96 10,952
9/1/96 9/30/96 10,980 9/1/96 9/30/96 11,569
10/1/96 10/31/96 11,406 10/1/96 10/31/96 11,888
11/1/96 11/30/96 12,295 11/1/96 11/30/96 12,786
12/1/96 12/31/96 11,926 12/1/96 12/31/96 12,533
1/1/97 1/31/97 12,690 1/1/97 1/31/97 13,316
2/1/97 2/28/97 12,776 2/1/97 2/28/97 13,420
3/1/97 3/31/97 12,133 3/1/97 3/31/97 12,869
4/1/97 4/30/97 12,946 4/1/97 4/30/97 13,637
5/1/97 5/31/97 13,799 5/1/97 5/31/97 14,467
6/1/97 6/30/97 14,383 6/1/97 6/30/97 15,116
7/1/97 7/31/97 15,543 7/1/97 7/31/97 16,318
8/1/97 8/31/97 14,705 8/1/97 8/31/97 15,404
9/1/97 9/30/97 15,457 9/1/97 9/30/97 16,248
10/1/97 10/31/97 15,026 10/1/97 10/31/97 15,707
11/1/97 11/30/97 15,577 11/1/97 11/30/97 16,434
12/1/97 12/31/97 15,898 12/1/97 12/31/97 16,716
1/1/98 1/31/98 16,090 1/1/98 1/31/98 16,901
2/1/98 2/28/98 17,156 2/1/98 2/28/98 18,120
3/1/98 3/31/98 18,034 3/1/98 3/31/98 19,048
4/1/98 4/30/98 18,256 4/1/98 4/30/98 19,240
5/1/98 5/31/98 17,858 5/1/98 5/31/98 18,909
6/1/98 6/30/98 18,592 6/1/98 6/30/98 19,677
7/1/98 7/31/98 18,357 7/1/98 7/31/98 19,467
8/1/98 8/31/98 15,515 8/1/98 8/31/98 16,653
9/1/98 9/30/98 16,617 9/1/98 9/30/98 17,719
10/1/98 10/31/98 17,803 10/1/98 10/31/98 19,161
11/1/98 11/30/98 18,893 11/1/98 11/30/98 20,322
12/1/98 12/31/98 20,110 12/1/98 12/31/98 21,492
1/1/99 1/31/99 20,749 1/1/99 1/31/99 22,391
2/1/99 2/28/99 19,917 2/1/99 2/28/99 21,694
3/1/99 3/31/99 20,861 3/1/99 3/31/99 22,562
4/1/99 4/30/99 21,682 4/1/99 4/30/99 23,435
5/1/99 5/31/99 21,151 5/1/99 5/31/99 22,882
6/1/99 6/30/99 22,401 6/1/99 6/30/99 24,152
7/1/99 7/31/99 21,516 7/1/99 7/31/99 23,399
8/1/99 8/31/99 21,342 8/1/99 8/31/99 23,282
9/1/99 9/30/99 20,825 9/1/99 9/30/99 22,644
10/1/99 10/31/99 22,148 10/1/99 10/31/99 24,077
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
----------------------------
<S> <C>
Net Assets $83.0
Number of Issues 48
Average Maturity 0.9 years
SEC Yield 5.41%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Asset-Backed Securities (24%)
2,000,000 Capital Auto
Receivables Asset
Trust,
6.06%, 6/15/02 $1,997.3
2,000,000 Case Equipment Loan
Trust 1998-A,
5.83%, 2/15/05 1,978.9
2,000,000 Chase Credit,
6.30%, 4/15/03 2,006.2
2,000,000 Citibank Credit Card,
5.75%, 1/15/03 1,983.6
2,000,000 DFS 1999-1,
5.70%, 2/16/09 1,974.4
2,505,000 Discover Card Master
Trust 1998-2 A,
5.80%, 9/16/03 2,454.1
500,000 Ford 1998 A Class D,
7.50%, 5/15/03 (b) 497.5
2,600,000 Ford 1999-B,
5.80%, 6/15/02 2,576.0
500,000 GS Escrow Corp.,
5.99%, 8/1/03 (b) 475.0
2,000,000 Premier Auto Trust,
5.82%, 12/6/02 1,970.3
2,000,000 Western 1999A A2,
5.39%, 8/20/01 1,985.0
--------
Asset-Backed
Securities 19,898.3
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Commercial Paper (12%)
3,500,000 American Express CP,
5.26%, 11/26/99 $3,500.0
3,500,000 General Electric
Capital Corp. CP,
5.27%, 11/26/99 3,500.0
3,000,000 Lexington CP,
5.37%, 11/4/99 2,998.7
--------
Commercial Paper 9,998.7
Corporate Bonds (19%)
1,000,000 Associates Corp.,
6.75%, 7/15/01 1,001.2
2,000,000 Caterpiller Finance
Service,
5.47%, 9/12/01 1,957.5
500,000 CSC Holdings, Inc.,
9.88%, 5/15/06 522.5
1,000,000 Ford Motor Credit
Co.,
7.06%, 6/6/01 1,006.2
1,000,000 GMAC,
6.70%, 4/30/01 1,001.3
500,000 Gulf Canada Resources
Ltd,
9.25%, 1/15/04 502.5
2,000,000 Home Savings of
America,
6.00%, 11/1/00 1,995.0
</TABLE>
18 Payden & Rygel Investment Group
<PAGE>
Market Return Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
1,000,000 Merrill Lynch & Co.,
6.02%, 5/11/01 $ 991.3
500,000 News America
Holdings,
7.45%, 6/1/00 502.5
500,000 Northwest Airlines,
Inc.,
8.52%, 4/7/04 478.1
1,000,000 Salomon Smith Barney
Holdings,
6.65%, 7/15/01 997.5
2,000,000 TCI Communication,
5.76%, 3/12/01 2,011.0
500,000 Unisys Corporation,
11.75%, 10/15/04 553.8
2,000,000 Worldcom, Inc.,
6.13%, 8/15/01 1,985.0
---------
Corporate Bonds 15,505.4
Mortgage-Backed Securities (30%)
2,028,098 DLJ Mortgage
Acceptance Corp.,
7.35%, 9/18/03 2,063.1
91,986 Drexel Burnham
Lambert CMO Trust,
6.44%, 5/1/16 92.0
1,483,316 FHLMC #846423,
7.40%, 5/1/25 1,518.6
89,607 FHLMC 1519,
6.03%, 1/15/06 89.6
2,000,000 FHLMC,
5.19%, 11/5/99 1,998.8
4,500,000 FHLMC,
5.19%, 11/6/99 4,490.3
500,000 FHLMC,
5.23%, 11/4/99 499.8
1,276,875 FHLMC,
5.34%, 7/15/20 1,278.8
1,186,469 FHLMC,
6.38%, 7/15/07 1,186.5
1,556,718 FNMA #323682,
7.19%, 8/1/27 1,595.2
968,304 FNMA 1994-87,
6.14%, 3/25/09 972.3
1,592,039 FNMA ARM #490626,
5.74%, 11/1/28 1,590.6
774,007 FNMA G 1994-7 F,
6.14%, 12/17/19 775.9
796,943 FNMA,
6.39%, 9/25/22 804.0
1,322,962 GMBS 1990-5A,
6.69%, 12/25/20 1,323.0
2,465,901 GSMS 1999,
5.29%, 11/13/13 2,465.9
1,768,944 Prudential Home
Mortgage,
5.90%, 12/15/23 1,752.3
---------
Mortgage-Backed
Securities 24,496.7
U.S. Treasury (7%)
4,000,000 U.S. Treasury Note,
5.63%, 2/28/01 3,995.8
2,000,000 U.S. Treasury Note,
6.25%, 4/30/01 2,014.4
---------
U.S. Treasury 6,010.2
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Investment Companies (6%)
5,003,580 Dreyfus Treasury
Cash Management Fund $ 5,003.6
---------
Total (Cost - $81,313.4) (a) $80,912.9
(98%)
=========
</TABLE>
Percentages indicated are based on net assets of $82,968,889.
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 $ 26,776
Unrealized depreciation (427,258)
---------
Net unrealized depreciation $(400,482)
=========
</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.
At October 31, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
240 S&P 500 Futures Dec-99 82,572,000 $1,866,135
</TABLE>
See notes to financial statements.
Annual Report 19
<PAGE>
U.S. Growth Leaders Fund
Unaudited
The objective of the U.S. Growth Leaders Fund is to realize long-term capital
appreciation. The Fund invests primarily in the common stocks of very large
American growth companies that are financially strong, well-established, and
world leaders in their industries. The Fund will be limited to investing in the
largest 1,000 companies ranked by market capitalization (total market price of
outstanding equity securities). The Fund may invest up to 15% of its total as-
sets in securities of foreign companies.
Top Equity Holdings
<TABLE>
- ------------------------------
<S> <C>
General Electric Co. 7.4%
Microsoft Corp. 7.4%
Warner Lambert Co. 4.9%
Bristol-Myers Squibb Co. 4.5%
Cisco Systems, Inc. 3.5%
</TABLE>
Investment Performance
Average Annual Total Return
for the period ended October 31, 1999
Since 6/17/99, 14.76%
. U.S. Growth Leaders Fund $10,530
- -- Standard & Poor's 500 Barra Growth Index $10,290
<TABLE>
<CAPTION>
US Growth Leaders Fund S&P 500 Barra Growth
5445 Value Value
------- -------
<S> <C> <C> <C> <C> <C>
BDATE EDATE 10,000 10,000
6/16/99 6/30/99 10,190 6/16/99 6/30/99 10,000
7/1/99 7/31/99 9,830 7/1/99 7/31/99 9,677
8/1/99 8/31/99 9,910 8/1/99 8/31/99 9,805
9/1/99 9/30/99 9,760 9/1/99 9/30/99 9,628
10/1/99 10/31/99 10,530 10/1/99 10/31/99 10,290
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
----------------------------------
<S> <C>
Net Assets (in
millions) $4.4
Number of Issues 55
Average Market Cap $83.0 billion
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- -----------------------------------------------
<C> <S> <C>
Common Stocks (81%)
Communication Services (3%)
690 Centurytel, Inc. $ 27.9
670 MCI Worldcom, Inc. (b) 57.5
1,010 SBC Communicatons 51.4
-------
Communication
Services 136.8
Capital Goods (8%)
490 Danaher Corporation 23.7
2,420 General Electric Co. 328.0
580 Tyco International 23.2
-------
Capital Goods 374.9
Consumer Cyclicals (5%)
2,130 Hilton Hotels
Corporation 19.7
390 Maytag Co. 15.6
890 TJX Corporation 24.2
2,560 Wal Mart Stores, Inc. 145.1
-------
Consumer Cyclicals 204.6
Consumer Non-Cyclicals (14%)
580 Avon Products, Inc. 18.7
610 Bestfoods, Inc. 35.8
460 Coca-Cola Co. 27.1
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
1,140 Colgate-Palmolive $ 69.0
650 Ecolab, Inc. 22.0
1,700 Equifax, Inc. 45.9
340 General Mills, Inc. 29.6
590 HJ Heinz Co. 28.2
1,430 Jostens, Inc. 30.2
730 Pepsico, Inc. 25.3
1,510 Phillip Morris
Companies, Inc. 38.0
320 Procter & Gamble Co. 33.5
440 Quaker Oats 30.8
960 Ralston - Ralston
Purina Group 30.2
5,180 Sara Lee Corporation 140.2
1,260 Tupperware
Corporation 25.0
--------
Consumer Non-
Cyclicals 629.5
Financials (6%)
650 Aflac, Inc. 33.2
210 American Express Co. 32.3
612 American
International Group 63.0
610 Citigroup, Inc. 33.0
620 Household
International
Corporation 27.7
600 Morgan Stanley Dean
Witter & Co. 66.2
--------
Financials 255.4
</TABLE>
20 Payden & Rygel Investment Group
<PAGE>
U.S. Growth Leaders Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Health Care (15%)
780 Biomet, Inc. $ 23.5
2,580 Bristol-Myers Squibb
Co. 198.2
1,000 Cardinal Health, Inc. 43.1
810 Eli Lilly & Co. 55.8
3,230 Health Mgmt.
Associates, Inc. (b) 28.7
1,250 Merck & Company, Inc. 99.5
2,700 Warner Lambert Co. 215.5
--------
Health Care 664.3
Technology (30%)
1,590 Altera Corporation 77.3
400 Amgen, Inc. (b) 31.9
1,230 Cable & Wireless Ltd.
(b) 28.1
2,090 Cisco Systems, Inc.
(b) 154.7
3,180 Dell Computer
Corporation (b) 127.6
480 EMC Corporation (b) 35.0
900 Intel Corporation 69.7
3,470 Keane, Inc. (b) 81.5
1,200 Lexmark International
Group, Inc. (b) 93.7
1,990 Lucent Technologies 127.9
3,540 Mircosoft Corporation
(b) 327.7
700 Nortel Networks
Corporation (b) 43.3
2,400 Oracle Corporation
(b) 114.2
440 Pitney Bowes, Inc. 20.0
--------
Technology 1,332.6
--------
Total Common Stocks (Cost - 3,598.1
$3,454.4)
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Investment Companies (23%)
451,794 Dreyfus Treasury
Cash Management Fund $ 451.8
4,000 S & P 500 Depository
Receipt 548.0
--------
Investment Companies 999.8
--------
Total (Cost - $4,416.2) (a) $4,597.9
(104%)
========
</TABLE>
Percentages indicated are based on net assets of $4,419,390.
(a) For federal income tax purposes, cost is $4,432.4, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 320,220
Unrealized depreciation (154,749)
---------
Net unrealized appreciation $ 165,471
=========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
Annual Report 21
<PAGE>
Small Cap Value Stock Fund
Unaudited
The objective of the Small Cap Value Stock Fund is to realize long-term capital
appreciation by investing in small cap stocks with a value discipline. Compa-
nies 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 gener-
ate free cash flow internally; and (c) a positive catalyst, e.g., a new prod-
uct, management change, or successful implementation of a business plan.
Top Equity Holdings
<TABLE>
- --------------------------------
<S> <C>
International Home Foods 2.7%
Manpower, Inc. 2.5%
Solutia, Inc. 2.3%
MeriStar Hospitality Corp. 2.1%
Ultramar Diamond Shamrock 2.0%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, -0.33%
Since 12/30/97, -3.96%
. Small Cap Value Stock Fund $9,284
- -- Standard & Poor's Small Cap 600 Index $9,914
<TABLE>
<CAPTION>
Value Stock Fund S&P 600 Small Cap
<S> <C> <C>
12/30/97 10,000 10,000
Dec-97 10,160 10,076
Jan-98 10,070 9,879
Feb-98 11,120 10,779
Mar-98 11,919 11,191
Apr-98 12,029 11,256
May-98 11,509 10,660
Jun-98 11,162 10,691
Jul-98 10,420 9,873
Aug-98 8,281 7,970
Sep-98 8,683 8,456
Oct-98 9,315 8,849
Nov-98 9,797 9,347
Dec-98 10,413 9,944
Jan-99 10,301 9,819
Feb-99 9,636 8,934
Mar-99 9,717 9,050
Apr-99 10,322 9,648
May-99 10,342 9,882
Jun-99 10,743 10,445
Jul-99 10,571 10,353
Aug-99 10,115 9,897
Sep-99 9,567 9,939
Oct-99 9,284 9,914
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
---------------------------------------
<S> <C>
Net Assets (in millions) $14.5
Number of Issues 82
Average Market Cap $1.0 billion
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Common Stocks (82%)
Basic Materials (10%)
5,873 AK Steel Holding
Corporation $ 101.7
2,500 Ashland, Inc. 82.5
17,940 Ethyl Corporation 74.0
112,600 Kinross Gold
Corporation (b) 288.5
5,490 Lyondell Chemical Co. 66.6
8,360 Millennium Chemicals,
Inc. 154.7
4,630 Ryerson Tull, Inc. 94.9
19,360 Solutia, Inc. 332.7
5,400 W.R. Grace & Co. (b) 80.7
16,510 Walter Industries,
Inc. (b) 194.0
---------
Basic Materials 1,470.3
Capital Goods (10%)
19,200 AGCO Corporation 206.4
9,830 Arrow Electronics,
Inc. (b) 214.4
2,050 Ball Corporation 82.6
7,120 Crane Company 145.5
6,200 Heartland Express,
Inc. (b) 84.1
11,720 Hexcel Corporation
(b) 63.0
7,240 Johns Manville Corp. 79.2
3,490 McDermott
International, Inc. 63.3
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
10,440 NCI Building Systems,
Inc. (b) $ 165.1
4,800 Precision Castparts
Corp. 141.6
2,900 Southdown, Inc. 140.1
---------
Capital Goods 1,385.3
Communication Services (0%)
2,760 COMSAT Corporation 51.6
Consumer Cyclicals (18%)
10,770 Arctic Cat, Inc. 102.3
14,350 Argosy Gaming Company
(b) 177.6
22,300 Aztar Corporation (b) 216.0
9,950 Belo (A.H.) Corp.-Com
Ser A 202.7
16,460 CompUSA, Inc. (b) 93.6
7,840 Furniture Brands
International (b) 151.9
9,480 Harrah's
Entertainment, Inc.
(b) 274.3
3,970 Hearst-Argyle
Television, Inc. (b) 80.6
32,030 Laboratory CRP of
American Holdings (b) 96.1
20,150 Musicland Stores
Corporation (b) 157.4
29,270 Players
International, Inc.
(b) 215.9
10,240 Shaw Industries 158.1
27,800 Sinclair Broadcast
Group, Inc. (b) 278.0
11,880 The Pep Boys - Manny,
Moe & Jack 148.5
</TABLE>
22 Payden & Rygel Investment Group
<PAGE>
Small Cap Value Stock Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
7,760 United Stationers,
Inc. (b) $ 197.9
7,800 Warnaco Group, Inc. 111.2
---------
Consumer Cyclicals 2,662.1
Consumer Non-Cyclicals (9%)
12,510 Gartner Group, Inc. 122.0
20,410 International Home
Foods, Inc. (b) 390.3
3,440 Keebler Foods Co. (b) 109.9
10,200 Manpower, Inc. 358.3
14,350 Modis Professional
(b) 160.5
3,990 Ogden Corporation 36.2
19,480 Protection One, Inc.
(b) 40.2
4,410 Wallace Computer
Service Corporation 97.6
---------
Consumer Non-
Cyclicals 1,315.0
Energy (2%)
11,800 Ultramar Diamond
Shamrock Corporation 289.1
Financials (17%)
4,870 Advanta Corp. 86.7
3,010 American Financial
Group, Inc. 89.2
16,460 AMRESCO, Inc. (b) 48.3
6,500 Cornerstone
Properties, Inc. 94.7
13,330 Developers
Diversified Realty
Corporation 190.0
9,200 Duke Realty
Investments 180.6
13,440 IndyMac Mortgage
Holdings, Inc. 187.3
7,230 Liberty Financial
Companies 174.0
4,190 Liberty Property
Trust 97.9
5,590 Mercury General
Corporation 157.6
19,000 MeriStar Hospitality
Corporation 305.2
11,970 Old Republic
International
Corporation 163.8
5,580 Protective Life
Corporation 201.9
6,170 Reinsurance Group of
America 205.2
13,910 Risk Capital
Holdings, Inc. (b) 181.7
6,600 Rouse Co. 146.0
---------
Financials 2,510.1
Health Care (5%)
7,220 AmeriSource Health
Corporation 108.3
13,550 Apria Healthcare
Group, Inc. (b) 214.2
6,610 Foundation Health
Systems, Inc. (b) 43.8
6,310 Sybron International
Corporation (b) 150.2
5,670 Trigon Healthcare,
Inc. (b) 160.9
---------
Health Care 677.4
Technology (11%)
6,620 American Management
Systems, Inc. (b) 171.3
4,940 Anixter
International, Inc.
(b) 103.1
5,530 Howmet International,
Inc. (b) 81.6
15,540 InaCom Corporation
(b) 74.8
10,840 Information
Resources, Inc. (b) 115.2
17,540 InterDigital
Communications Corp.
(b) 97.6
49,410 Iomega Corporation
(b) 151.3
38,720 Maxtor Corporation
(b) 212.9
8,920 Reynolds & Reynolds
Co. 162.2
18,640 Sybase, Inc. (b) 251.6
7,880 Unigraphics
Solutions, Inc. (b) 169.9
---------
Technology 1,591.5
---------
Total Common Stocks (Cost -
$13,752.6) 11,952.4
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
U.S. Government Agency (7%)
1,000,000 FHLMC Discount Note,
5.15%, 11/18/99 $ 997.6
Investment Companies (11%)
335,211 Dreyfus Treasury
Cash Management Fund 335.2
16,300 S&P MidCap Depository
Receipt 1,227.6
---------
Investment Companies 1,562.8
---------
Total (Cost - $16,302.9) (a) $14,512.8
(100%)
=========
</TABLE>
Percentages indicated are based on net assets of $14,512,291.
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 $ 615,218
Unrealized depreciation (2,405,340)
-----------
Net unrealized depreciation $(1,790,122)
===========
</TABLE>
(b) Non-income producing security.
At October 31, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4 December Russell 2000 Dec-99 $863,600 $(30,340)
</TABLE>
The Fund's activity in written options for the year ended October 31, 1999 was
as follows:
<TABLE>
<CAPTION>
Number of Contracts
Contracts Premium
- ---------------------------------------------------------------
<S> <C> <C>
Options outstanding at beginning of period 0 $ 0
Options sold 5,000 13,600
Options canceled in closing transactions 0 0
Options expired prior to exercise (5,000) (13,600)
------ --------
Options outstanding at end of period 0 $ 0
====== ========
</TABLE>
See notes to financial statements.
Annual Report 23
<PAGE>
Small Cap Growth Stock Fund
Unaudited
The objective of the Small Cap Growth Stock Fund is to realize long-term capi-
tal appreciation by investing in small cap stocks with a growth discipline.
Companies selected for investment exhibit one or more of the following crite-
ria: (a) the potential of sustainable levels of profitability greater than
their current levels, based on factors such as industry profit levels and com-
petitiveness and the company's competitive advantages; (b) the potential to
achieve above average returns on equity through efficient use of assets and ad-
equate margins; and (c) above average growth in earnings before interest and
taxes.
Top Equity Holdings
<TABLE>
- -----------------------------
<S> <C>
MedQuist, Inc. 2.5%
Plantronics, Inc. 2.4%
Polycom, Inc. 2.2%
Peregrine Systems, Inc. 2.2%
Mobile Mini, Inc. 2.1%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 17,56%
Since 12/30/97, 3.95%
. Small Cap Growth Stock Fund $10,738
- -- Standard & Poor's Small Cap 600 Index $9,914
<TABLE>
<CAPTION>
Growth Stock Fund S&P 600 Small Cap
<S> <C> <C>
12/30/97 10,000 10,000
12/31/97 10,170 10,076
1/31/98 9,990 9,879
2/28/98 10,750 10,779
3/31/98 11,280 11,191
4/30/98 11,091 11,256
5/31/98 10,640 10,660
6/30/98 10,508 10,691
7/31/98 9,957 9,873
8/31/98 8,262 7,970
9/30/98 8,663 8,456
10/31/98 9,134 8,849
11/30/98 9,686 9,347
12/31/98 10,629 9,944
1/31/99 10,378 9,819
2/28/99 9,726 8,934
3/31/99 9,836 9,050
4/30/99 10,839 9,648
5/31/99 10,658 9,882
6/30/99 11,320 10,445
7/31/99 10,939 10,353
8/31/99 10,317 9,897
9/30/99 10,528 9,939
10/31/99 10,738 9,914
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
---------------------------------------
<S> <C>
Net Assets (in millions) $4.6
Number of Issues 70
Average Market Cap $1.0 billion
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Common Stocks (72%)
Basic Materials (2%)
920 MacDermid, Inc. $ 31.2
2,370 Spartech Corporation 67.8
--------
Basic Materials 99.0
Capital Goods (14%)
900 Avnet, Inc. 48.9
1,920 Dionex Corporation
(b) 85.3
770 Dycom Industries,
Inc. (b) 25.1
1,600 Forward Air
Corporation (b) 47.1
1,150 General Cable
Corporation 8.5
2,010 Jacobs Engineering
Group (b) 71.3
3,760 JLG Industries, Inc. 48.2
2,040 Martin Marietta
Materials, Inc. 79.4
1,870 Methode Electronics,
Inc. 29.9
930 Roper Industries,
Inc. 28.7
2,150 Sawtek, Inc. (b) 88.1
2,660 Superior TeleCom,
Inc. (b) 41.4
1,190 Terex Corporation (b) 31.5
630 X-Rite, Inc. 3.9
--------
Capital Goods 637.3
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Communication Services (1%)
580 US LEC Corporation -
Class A (b) $ 16.1
320 WinStar
Communications, Inc.
(b) 12.4
--------
Communication
Services 28.5
Consumer Cyclicals (11%)
450 American Eagle
Outfitters, Inc. (b) 19.3
190 Catalina Marketing
Corporation (b) 17.8
1,420 IHOP Corporation (b) 25.6
350 International
Speedway Corp. -
Class A 18.1
1,430 Jack In The Box, Inc.
(b) 34.4
4,350 John Wiley & Sons,
Inc. - Class A 73.4
400 Macrovision
Corporation (b) 22.6
4,400 Mobile Mini, Inc. (b) 96.0
2,040 Polycom, Inc. (b) 102.0
1,200 TMP Worldwide, Inc.
(b) 74.9
--------
Consumer Cyclicals 484.1
Consumer Non-Cyclicals (8%)
1,790 Aaron Rents, Inc. 28.3
3,160 DeVry, Inc. (b) 66.5
1,400 Diamond Technology
Partners, Inc. (b) 90.5
810 Hooper Holmes, Inc. 21.8
</TABLE>
24 Payden & Rygel Investment Group
<PAGE>
Small Cap Growth Stock Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
2,160 Pre-Paid Legal
Services, Inc. (b) $ 52.4
1,130 Sotheby's Holdings,
Inc. 32.4
680 The Cooper Companies,
Inc. 17.0
2,000 Tootsie Roll
Industries, Inc. 63.4
--------
Consumer Non-
Cyclicals 372.3
Energy (1%)
1,150 Kaneb Pipe Line
Partners, L.P. 31.8
Financials (3%)
550 Metris Company, Inc. 18.9
2,100 Rock Financial
Corporation 41.2
840 U.S. Trust
Corporation 68.2
--------
Financials 128.3
Health Care (9%)
1,620 Biomatrix, Inc. (b) 36.7
290 Biovail Corporation
International (b) 16.0
2,960 Jones Pharma, Inc. 91.8
1,180 King Pharmaceuticals,
Inc. (b) 35.7
2,700 Laser Vision Centers,
Inc. (b) 23.2
3,500 MedQuist, Inc. 112.0
2,500 ResMed, Inc. (b) 86.5
1,000 Techne Corporation
(b) 39.4
--------
Health Care 441.3
Technology (23%)
700 Advent Software, Inc.
(b) 42.1
1,600 Alpha Industries,
Inc. (b) 88.4
1,900 Cognizant Technology
Solutions Corp. (b) 87.3
900 Concord
Communications, Inc.
(b) 46.7
1,000 Deltek Systems, Inc. 11.6
1,300 ESS Technology, Inc.
(b) 17.1
2,000 Galileo Technology
Ltd. (b) 45.7
350 Great Plains
Software, Inc. (b) 19.4
2,400 Inet Technologies,
Inc. (b) 91.8
500 Jack Henry &
Associates, Inc. 18.2
680 Mercury Interactive
Corporation (b) 55.2
700 MMC Networks, Inc.
(b) 22.3
2,250 Peregrine Systems,
Inc. (b) 98.7
1,900 Plantronics, Inc. (b) 111.3
690 QRS Corporation (b) 38.4
730 SEI Investments Co. 71.1
1,440 Sykes Enterprises,
Inc. 44.5
1,490 The BISYS Group, Inc.
(b) 76.0
1,150 Transaction Systems
Architects, Inc. (b) 35.4
1,000 TranSwitch
Corporation (b) 47.1
--------
Technology 1,068.3
--------
Total Common Stocks (Cost - 3,290.9
$3,130.9)
U.S. Government Agency (2%)
100,000 FHLMC Discount Note,
5.15%, 11/18/99 99.8
Investment Companies (31%)
1,414,477 Dreyfus Treasury
Cash Management Fund 1,414.5
--------
Total (Cost - $4,645.1) (a) $4,805.2
(105%)
========
</TABLE>
Percentages indicated are based on net assets of $4,558,565.
All of the securities listed above are held by the custodian in a segregated
account.
(a) For federal income tax purposes, cost is $4,647.3, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 344,078
Unrealized depreciation (186,245)
---------
Net unrealized appreciation $ 157,833
=========
</TABLE>
(b) Non-income producing security.
At October 31, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5 December Russell 2000 Dec-99 $ 1,079,500 $ 24,449
</TABLE>
See notes to financial statements.
Annual Report 25
<PAGE>
Bunker Hill Money Market Fund
Unaudited
The objective of the Bunker Hill Money Market Fund is 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 with matu-
rities of 397 days or less.
Portfolio Composition
<TABLE>
- ----------------------------
<S> <C>
Commerical Paper 66%
Treasury/Agency 22%
Corporate Notes 9%
Certificates of Deposit 1%
Cash Equivalent 2%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 4.97%
Since 12/17/97, 5.14%
. Bunker Hill Money Market Fund $10,985
- -- IBC/Donaghue Index $10,911*
<TABLE>
<CAPTION>
Bunker Hill money Market Fund IBCA Taxable Money Market Index
<S> <C> <C>
12/17/97 10,000 10,000
12/31/97 10,021 10,021
1/31/98 10,067 10,064
2/28/98 10,107 10,103
3/31/98 10,152 10,146
4/30/98 10,196 10,188
5/31/98 10,239 10,231
6/30/98 10,284 10,273
7/31/98 10,332 10,315
8/31/98 10,378 10,358
9/30/98 10,422 10,400
10/31/98 10,465 10,443
11/30/98 10,506 10,483
12/31/98 10,548 10,523
1/31/99 10,589 10,562
2/28/99 10,626 10,596
3/31/99 10,669 10,635
4/30/99 10,712 10,672
5/31/99 10,755 10,710
6/30/99 10,798 10,748
7/31/99 10,843 10,787
8/31/99 10,890 10,828
9/30/99 10,936 10,870
10/31/99 10,985 10,911
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
*Source: IBC/Donaghue Taxable Money Market Average
IBC's Money Fund Report
Statistics
<TABLE>
----------------------------------
<S> <C>
Net Assets (in millions) $88.0
Number of Issues 36
Average Maturity 59 days
SEC Yield 5.36%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Certificate of Deposits (1%)
1,000,000 Bank of America CD,
5.04%, 2/10/00 $ 997.0
Commercial Paper (66%)
4,000,000 American Express
Credit Corp. CP,
5.28%, 11/18/99 4,000.0
4,500,000 American General
Finance CP,
5.26%, 11/24/99 4,500.0
2,000,000 AT&T Corporation CP,
5.60%, 2/8/00 1,969.2
4,500,000 Atlantis One Funding
Corp. CP,
5.30%, 11/3/99 4,498.7
1,000,000 Bank One Corp. CP,
6.70%, 3/24/00 1,003.1
1,500,000 Cargill, Inc. CP,
5.67%, 1/28/00 1,479.2
3,000,000 Caterpillar Finance
CP,
5.27%, 11/9/99 2,996.5
4,000,000 Coca Cola CP,
5.25%, 11/18/99 3,990.1
1,500,000 Deutsche Bank CP,
5.55%, 2/2/00 1,478.5
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
4,000,000 General Electric
Capital Corp. CP,
5.31%, 11/4/99 $ 4,000.0
1,500,000 GMAC CP,
5.18%, 11/1/99 1,500.0
3,000,000 Goldman Sachs Group
CP,
5.98%, 1/13/00 2,963.6
1,500,000 IBM Credit Corp. CP,
5.64%, 3/8/00 1,469.9
4,000,000 Merck CP,
5.25%, 11/4/99 3,998.3
3,000,000 Merrill Lynch CP,
5.28%, 11/29/99 2,987.7
2,000,000 Toyota Motor Credit
CP,
5.27%, 11/15/99 1,995.9
2,000,000 Toyota Motor Credit
CP,
5.27%, 11/17/99 1,995.3
1,500,000 UBS Finance CP,
5.43%, 2/3/00 1,478.7
1,500,000 UPS CP,
5.28%, 11/17/99 1,496.5
3,000,000 Wal-Mart CP,
5.28%, 11/22/99 2,990.8
</TABLE>
26 Payden & Rygel Investment Group
<PAGE>
Bunker Hill Money Market Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
1,000,000 Walt Disney CP,
5.53%, 2/7/00 $ 984.9
4,000,000 Xerox Credit CP,
5.25%, 11/5/99 3,997.7
---------
Commercial Paper 57,774.6
Corporate Notes (9%)
1,000,000 1st Chicago Note,
5.09%, 4/20/00 999.4
1,000,000 Associates
Corporation,
6.67%, 7/28/00 1,004.4
1,672,688 Associates
Manufactured Housing,
5.61%, 10/15/00 (a) 1,672.7
1,000,000 Caterpillar Finance
Services,
6.95%, 10/10/00 1,008.8
1,000,000 Citigroup, Inc.,
6.13%, 6/15/00 1,002.6
1,500,000 International Lease
Finance Corp.,
6.45%, 9/11/00 1,504.0
1,000,000 Key Bank NA,
5.75%, 4/25/00 1,002.3
95,841 WFS 1999A-A1,
5.01%, 2/20/00 95.8
---------
Corporate Notes 8,290.0
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
U.S. Government Agency (22%)
12,000,000 FHLMC Discount Note,
5.16%, 11/1/99 $12,000.0
2,000,000 FHLMC Discount Note,
5.49%, 1/31/00 1,972.2
124,419 FNMA #124584,
7.00%, 11/1/99 125.1
5,000,000 FNMA Discount Note,
5.52%, 2/14/00 4,919.5
---------
U.S. Government
Agency 19,016.8
Investment Companies (2%)
2,140,159 Dreyfus Treasury
Cash Management Fund 2,140.2
---------
Total (Cost - $88,218.6) (100%) $88,218.6
=========
</TABLE>
Percentages indicated are based on net assets of $87,968,245.
(a) 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.
Annual Report 27
<PAGE>
Limited Maturity Fund
Unaudited
The objective of the Limited Maturity Fund is to realize a total return that,
over time, is greater than money market funds and is consistent with the pres-
ervation of capital. The Fund invests in a wide variety of investment grade
debt securities payable primarily in U.S. dollars. The Fund's maximum average
portfolio maturity (on a dollar-weighted basis) is one year.
Portfolio Composition
<TABLE>
- -------------------------------
<S> <C>
Commercial Paper 26%
Corporate 20%
Asset Backed 18%
Mortgage Backed Securities 14%
Cash Equivalent 13%
Treasury/Agency 9%
- -------------------------------
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 4.71%
Three Year, 5.35%
Five Year 5.58%
Since 5/2/94, 5.41%
. Limited Maturity Fund $13,359
- -- Merrill Lynch 90-Day Treasury
Bill Index $13,267
<TABLE>
<CAPTION>
Limited Maturity Merrill Lynch 91 Day Treasury Bill
5435 Value ml91tsy Value
------- ---------
BDATE EDATE 10,000 10,000
<S> <C> <C> <C> <C> <C>
5/2/94 5/31/94 10,023 5/1/94 5/31/94 10,030
6/1/94 6/30/94 10,062 6/1/94 6/30/94 10,071
7/1/94 7/31/94 10,118 7/1/94 7/31/94 10,107
8/1/94 8/31/94 10,154 8/1/94 8/31/94 10,142
9/1/94 9/30/94 10,157 9/1/94 9/30/94 10,179
10/1/94 10/31/94 10,184 10/1/94 10/31/94 10,223
11/1/94 11/30/94 10,198 11/1/94 11/30/94 10,263
12/1/94 12/31/94 10,240 12/1/94 12/31/94 10,314
1/1/95 1/31/95 10,308 1/1/95 1/31/95 10,366
2/1/95 2/28/95 10,394 2/1/95 2/28/95 10,416
3/1/95 3/31/95 10,447 3/1/95 3/31/95 10,469
4/1/95 4/30/95 10,496 4/1/95 4/30/95 10,518
5/1/95 5/31/95 10,583 5/1/95 5/31/95 10,572
6/1/95 6/30/95 10,634 6/1/95 6/30/95 10,626
7/1/95 7/31/95 10,683 7/1/95 7/31/95 10,677
8/1/95 8/31/95 10,738 8/1/95 8/31/95 10,731
9/1/95 9/30/95 10,773 9/1/95 9/30/95 10,778
10/1/95 10/31/95 10,839 10/1/95 10/31/95 10,828
11/1/95 11/30/95 10,899 11/1/95 11/30/95 10,877
12/1/95 12/31/95 10,964 12/1/95 12/31/95 10,936
1/1/96 1/31/96 11,031 1/1/96 1/31/96 10,986
2/1/96 2/29/96 11,047 2/1/96 2/29/96 11,030
3/1/96 3/31/96 11,065 3/1/96 3/31/96 11,071
4/1/96 4/30/96 11,099 4/1/96 4/30/96 11,118
5/1/96 5/31/96 11,138 5/1/96 5/31/96 11,167
6/1/96 6/30/96 11,192 6/1/96 6/30/96 11,213
7/1/96 7/31/96 11,241 7/1/96 7/31/96 11,264
8/1/96 8/31/96 11,288 8/1/96 8/31/96 11,315
9/1/96 9/30/96 11,344 9/1/96 9/30/96 11,368
10/1/96 10/31/96 11,427 10/1/96 10/31/96 11,417
11/1/96 11/30/96 11,483 11/1/96 11/30/96 11,466
12/1/96 12/31/96 11,530 12/1/96 12/31/96 11,517
1/1/97 1/31/97 11,577 1/1/97 1/31/97 11,569
2/1/97 2/28/97 11,611 2/1/97 2/28/97 11,615
3/1/97 3/31/97 11,647 3/1/97 3/31/97 11,664
4/1/97 4/30/97 11,713 4/1/97 4/30/97 11,719
5/1/97 5/31/97 11,774 5/1/97 5/31/97 11,779
6/1/97 6/30/97 11,824 6/1/97 6/30/97 11,822
7/1/97 7/31/97 11,890 7/1/97 7/31/97 11,876
8/1/97 8/31/97 11,929 8/1/97 8/31/97 11,926
9/1/97 9/30/97 11,995 9/1/97 9/30/97 11,981
10/1/97 10/31/97 12,050 10/1/97 10/31/97 12,032
11/1/97 11/30/97 12,087 11/1/97 11/30/97 12,079
12/1/97 12/31/97 12,159 12/1/97 12/31/97 12,131
1/1/98 1/31/98 12,230 1/1/98 1/31/98 12,188
2/1/98 2/28/98 12,256 2/1/98 2/28/98 12,231
3/1/98 3/31/98 12,312 3/1/98 3/31/98 12,289
4/1/98 4/30/98 12,370 4/1/98 4/30/98 12,344
5/1/98 5/31/98 12,429 5/1/98 5/31/98 12,395
6/1/98 6/30/98 12,493 6/1/98 6/30/98 12,447
7/1/98 7/31/98 12,547 7/1/98 7/31/98 12,502
8/1/98 8/31/98 12,625 8/1/98 8/31/98 12,559
9/1/98 9/30/98 12,714 9/1/98 9/30/98 12,623
10/1/98 10/31/98 12,758 10/1/98 10/31/98 12,673
11/1/98 11/30/98 12,806 11/1/98 11/30/98 12,715
12/1/98 12/31/98 12,867 12/1/98 12/31/98 12,764
1/1/99 1/31/99 12,906 1/1/99 1/31/99 12,809
2/1/99 2/28/99 12,943 2/1/99 2/28/99 12,846
3/1/99 3/31/99 13,008 3/1/99 3/31/99 12,899
4/1/99 4/30/99 13,063 4/1/99 4/30/99 12,945
5/1/99 5/31/99 13,110 5/1/99 5/31/99 12,996
6/1/99 6/30/99 13,151 6/1/99 6/30/99 13,050
7/1/99 7/31/99 13,197 7/1/99 7/31/99 13,104
8/1/99 8/31/99 13,243 8/1/99 8/31/99 13,156
9/1/99 9/30/99 13,311 9/1/99 9/30/99 13,215
10/1/99 10/31/99 13,359 10/1/99 10/31/99 13,267
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Credit Quality
<TABLE>
- --------
<S> <C>
AAA 81%
AA 3%
A 9%
BBB 7%
</TABLE>
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $97.8
Number of Issues 33
Average Maturity 0.6 years
SEC Yield 5.78%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Asset-Backed Securities (18%)
2,300,000 Capital Auto
Receivables Asset
Trust, 6.06%, 6/15/02 $ 2,296.9
2,000,000 Case Equipment Loan
Trust 1998-A, 5.83%,
2/15/05 1,978.9
3,150,423 Chase Manhattan Auto,
5.75%, 10/15/01 3,143.5
4,931,802 GSMS 1999,
5.61%, 11/13/13 4,931.8
937,887 Olympic Automobile
Receivables Trust,
7.88%, 7/15/01 944.3
1,626,019 Premier Auto Trust,
6.58%, 10/6/00 1,628.1
3,000,000 Western 1999A A2,
5.39%, 8/20/01 2,977.4
---------
Asset-Backed
Securities 17,900.9
Commercial Paper (26%)
4,500,000 Cargill, Inc. CP,
5.67%, 1/28/00 4,437.8
4,500,000 Caterpillar Financial
Service CP, 5.28%,
11/10/99 4,494.1
4,000,000 Coca Cola CP,
5.25%, 11/15/99 3,991.8
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
4,500,000 Emerson Electric Co.
CP,
5.67%, 1/31/00 $ 4,435.5
4,000,000 Merrill Lynch CP,
5.28%, 11/15/99 3,991.5
4,500,000 National Rural
Utilities CP,
5.75%, 2/4/00 4,431.7
---------
Commercial Paper 25,782.4
Corporate Bonds (21%)
2,000,000 Ahmanson Finance
Note,
5.88%, 2/27/01 1,985.0
3,000,000 General Electric
Capital Corporation,
6.04%, 1/31/00 3,000.0
3,000,000 GMAC,
6.65%, 4/25/01 3,000.0
1,000,000 IBM Credit
Corporation,
5.05%, 1/22/01 985.0
350,000 MBNA Corporation,
6.50%, 9/15/00 349.1
3,000,000 Paccar Financial
Corporation,
5.75%, 2/15/01 2,973.8
3,000,000 SBC Glacier Finance
Limited,
5.68%, 9/10/02 2,985.6
</TABLE>
28 Payden & Rygel Investment Group
<PAGE>
Limited Maturity Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
5,000,000 TCI Communication,
5.76%, 3/12/01 $ 5,027.5
---------
Corporate Bonds 20,306.0
Mortgage-Backed Securities (14%)
2,619,635 DLJ Mortgage
Acceptance
Corporation,
7.35%, 9/18/03 2,664.9
3,357,635 FNMA #323682,
6.88%, 8/1/27 3,440.6
1,865,296 FNMA 1997-17f,
5.99%, 11/18/25 1,868.5
786,363 FNMA, #336471,
9.50%, 9/1/24 836.2
2,846,085 GNMA #78075,
8.00%, 12/15/27 2,910.1
1,190,890 Headlands Mortgage,
7.75%, 3/25/12 1,209.9
557,372 Independent National
Mortgage, 7.00%,
3/25/26 555.5
---------
Mortgage-Backed
Securities 13,485.7
U.S. Government Agency (8%)
3,000,000 FHLMC,
5.51%, 1/21/00 2,962.8
3,500,000 FHLMC,
5.42%, 1/27/00 3,454.2
1,304,192 FHLMC,
5.74%, 4/15/08 1,303.4
---------
U.S. Government
Agency 7,720.4
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
U.S. Treasury (1%)
1,000,000 U.S. Treasury Note,
6.25%, 8/31/00 $ 1,005.6
Investment Companies (14%)
13,396,107 Dreyfus Treasury
Cash Management Fund 13,396.1
---------
Total (Cost - $99,747.5) (a)
(102%) $99,597.1
=========
</TABLE>
Percentages indicated are based on net assets of $97,820,210.
(a) For federal income tax purposes, cost is $99,757.6, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 26,223
Unrealized depreciation (186,747)
---------
Net unrealized depreciation $(160,524)
=========
</TABLE>
See notes to financial statements.
Annual Report 29
<PAGE>
Short Bond Fund
Unaudited
The objective of the Short Bond Fund is to realize a high level of total return
consistent with preservation of capital. In order to achieve these objectives
the Short Bond Fund invests in a wide variety of investment grade debt securi-
ties payable primarily in U.S. dollars. The Fund's maximum average portfolio
maturity (on a dollar-weighted basis) is three years.
Portfolio Composition
<TABLE>
- -------------------------------
<S> <C>
Corporate 41%
Mortgage Backed Securities 32%
Commercial Paper 12%
Treasury/Agency 9%
Asset Backed Securities 4%
Cash Equivalent 2%
- -------------------------------
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 2.89%
Three Year, 5.06%
Five Year, 5.91%
Since 1/1/94, 5.08%
. Short Bond Fund $13,352
- -- Merrill Lynch 1-3 Year
Treasury Index $13,738
<TABLE>
<CAPTION>
Short Bond Merrill 1-3 Year Treasury
5432 Value ml1-3tsy Value
-------- -------
BDATE EDATE 10,000 10,000
<S> <C> <C> <C> <C> <C>
1/1/94 1/31/94 10,051 1/1/94 1/31/94 10,064
2/1/94 2/28/94 9,997 2/1/94 2/28/94 10,000
3/1/94 3/31/94 9,938 3/1/94 3/31/94 9,950
4/1/94 4/30/94 9,885 4/1/94 4/30/94 9,915
5/1/94 5/31/94 9,898 5/1/94 5/31/94 9,929
6/1/94 6/30/94 9,927 6/1/94 6/30/94 9,958
7/1/94 7/31/94 10,002 7/1/94 7/31/94 10,044
8/1/94 8/31/94 10,038 8/1/94 8/31/94 10,079
9/1/94 9/30/94 10,000 9/1/94 9/30/94 10,056
10/1/94 10/31/94 10,021 10/1/94 10/31/94 10,079
11/1/94 11/30/94 10,014 11/1/94 11/30/94 10,034
12/1/94 12/31/94 10,038 12/1/94 12/31/94 10,057
1/1/95 1/31/95 10,160 1/1/95 1/31/95 10,197
2/1/95 2/28/95 10,296 2/1/95 2/28/95 10,337
3/1/95 3/31/95 10,368 3/1/95 3/31/95 10,395
4/1/95 4/30/95 10,455 4/1/95 4/30/95 10,487
5/1/95 5/31/95 10,667 5/1/95 5/31/95 10,670
6/1/95 6/30/95 10,728 6/1/95 6/30/95 10,728
7/1/95 7/31/95 10,754 7/1/95 7/31/95 10,772
8/1/95 8/31/95 10,831 8/1/95 8/31/95 10,836
9/1/95 9/30/95 10,888 9/1/95 9/30/95 10,889
10/1/95 10/31/95 10,979 10/1/95 10/31/95 10,981
11/1/95 11/30/95 11,095 11/1/95 11/30/95 11,078
12/1/95 12/31/95 11,185 12/1/95 12/31/95 11,163
1/1/96 1/31/96 11,279 1/1/96 1/31/96 11,258
2/1/96 2/29/96 11,207 2/1/96 2/29/96 11,210
3/1/96 3/31/96 11,155 3/1/96 3/31/96 11,200
4/1/96 4/30/96 11,132 4/1/96 4/30/96 11,210
5/1/96 5/31/96 11,147 5/1/96 5/31/96 11,233
6/1/96 6/30/96 11,225 6/1/96 6/30/96 11,313
7/1/96 7/31/96 11,261 7/1/96 7/31/96 11,358
8/1/96 8/31/96 11,303 8/1/96 8/31/96 11,397
9/1/96 9/30/96 11,389 9/1/96 9/30/96 11,500
10/1/96 10/31/96 11,515 10/1/96 10/31/96 11,630
11/1/96 11/30/96 11,597 11/1/96 11/30/96 11,719
12/1/96 12/31/96 11,594 12/1/96 12/31/96 11,719
1/1/97 1/31/97 11,647 1/1/97 1/31/97 11,774
2/1/97 2/28/97 11,687 2/1/97 2/28/97 11,801
3/1/97 3/31/97 11,676 3/1/97 3/31/97 11,797
4/1/97 4/30/97 11,772 4/1/97 4/30/97 11,893
5/1/97 5/31/97 11,839 5/1/97 5/31/97 11,974
6/1/97 6/30/97 11,899 6/1/97 6/30/97 12,057
7/1/97 7/31/97 11,993 7/1/97 7/31/97 12,189
8/1/97 8/31/97 11,993 8/1/97 8/31/97 12,200
9/1/97 9/30/97 12,086 9/1/97 9/30/97 12,293
10/1/97 10/31/97 12,151 10/1/97 10/31/97 12,384
11/1/97 11/30/97 12,207 11/1/97 11/30/97 12,414
12/1/97 12/31/97 12,271 12/1/97 12/31/97 12,499
1/1/98 1/31/98 12,338 1/1/98 1/31/98 12,621
2/1/98 2/28/98 12,337 2/1/98 2/28/98 12,631
3/1/98 3/31/98 12,413 3/1/98 3/31/98 12,683
4/1/98 4/30/98 12,485 4/1/98 4/30/98 12,742
5/1/98 5/31/98 12,534 5/1/98 5/31/98 12,810
6/1/98 6/30/98 12,608 6/1/98 6/30/98 12,877
7/1/98 7/31/98 12,659 7/1/98 7/31/98 12,937
8/1/98 8/31/98 12,771 8/1/98 8/31/98 13,099
9/1/98 9/30/98 12,941 9/1/98 9/30/98 13,273
10/1/98 10/31/98 12,977 10/1/98 10/31/98 13,338
11/1/98 11/30/98 13,037 11/1/98 11/30/98 13,326
12/1/98 12/31/98 13,064 12/1/98 12/31/98 13,373
1/1/99 1/31/99 13,103 1/1/99 1/31/99 13,426
2/1/99 2/28/99 13,026 2/1/99 2/28/99 13,361
3/1/99 3/31/99 13,146 3/1/99 3/31/99 13,453
4/1/99 4/30/99 13,201 4/1/99 4/30/99 13,496
5/1/99 5/31/99 13,162 5/1/99 5/31/99 13,488
6/1/99 6/30/99 13,183 6/1/99 6/30/99 13,529
7/1/99 7/31/99 13,179 7/1/99 7/31/99 13,573
8/1/99 8/31/99 13,212 8/1/99 8/31/99 13,612
9/1/99 9/30/99 13,302 9/1/99 9/30/99 13,701
10/1/99 10/31/99 13,352 10/1/99 10/31/99 13,738
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Credit Quality
<TABLE>
- --------
<S> <C>
AAA 58%
AA 6%
A 24%
BBB 8%
BB 4%
</TABLE>
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $54.6
Number of Issues 32
Average Maturity 2.0 years
SEC Yield 6.48%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Asset Backed Securities (4%)
2,150,000 Premier Auto Trust
1998-2 A3,
5.77%, 1/6/02 $ 2,144.0
Commercial Paper (13%)
3,500,000 Coca Cola CP,
5.25%, 11/15/99 3,492.9
3,500,000 Merrill Lynch CP,
5.28%, 11/15/99 3,492.8
---------
Commercial Paper 6,985.7
Corporate Bonds (45%)
1,000,000 Ahmanson Finance
Note,
5.88%, 2/27/01 992.5
2,000,000 Caterpillar Finance
Services,
6.95%,10/10/00 2,017.3
1,000,000 Ford Motor Credit
Global,
6.50%, 2/28/02 995.0
1,000,000 General Electric
Capital Corporation,
6.01%, 4/30/01 993.7
2,150,000 GMAC,
8.50%, 1/1/03 2,249.4
1,000,000 Honeywell, Inc.,
6.75%, 3/15/02 1,002.5
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
1,800,000 IBM Credit
Corporation,
5.18%, 2/5/01 $ 1,775.2
1,000,000 International Lease
Corporation,
6.45%, 9/11/00 1,000.0
1,000,000 John Deere Capital
Corporation,
5.85%, 1/15/01 992.5
2,000,000 Korea Development
Bank,
7.13%, 9/17/01 1,995.0
1,000,000 MBNA Corporation,
6.15%, 10/1/03 966.3
2,000,000 Merrill Lynch & Co.,
5.93%, 3/23/01 1,982.5
3,000,000 Merrill Lynch
Hutchinson,
7.49%, 8/26/00(c) 3,000.0
1,000,000 Salomon, Inc.,
6.88%, 12/15/03 991.2
2,000,000 TCI Communication,
5.76%, 3/12/01(c) 2,011.0
1,500,000 Wal Mart Stores,
6.75%, 5/15/02 1,507.5
---------
Corporate Bonds 24,471.6
</TABLE>
30 Payden & Rygel Investment Group
<PAGE>
Short Bond Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Mortgage-Backed Securities (34%)
1,474,659 CS First Boston
Mortgage Securities
1997-C2,
6.40%, 2/17/04(c) $ 1,458.0
2,295,321 FHLMC CMO,
5.84%, 4/15/26 2,282.6
1,370,445 FHLMC,
6.14%, 3/15/18 1,373.0
1,865,296 FNMA 1997-17F,
6.05%, 11/18/25 1,868.5
1,319,381 FNMA 1997-32,
6.29%, 4/25/27 1,328.9
1,967,256 FNMA ARM #514721,
6.12%, 9/1/29 1,943.3
5,000,000 FNMA TBA,
6.50%, 5/1/13(b) 4,898.4
728,362 Headlands Mortgage,
7.75%, 3/25/12 740.0
2,858,062 Morgan Stanley
Capital,
6.22%, 6/3/30 2,777.7
168,152 Residential Funding
Corporation,
6.25%, 10/25/23 168.3
---------
Mortgage-Backed
Securities 18,838.7
U.S. Government Agency (6%)
3,500,000 FHLMC,
5.23%, 11/4/99 3,498.5
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
U.S. Treasury (4%)
2,000,000 U.S. Treasury Note,
6.25%, 6/30/02 $ 2,017.3
Investment Companies (2%)
1,085,751 Dreyfus Treasury Cash
Management Fund 1,085.8
---------
Total (Cost - $59,460.6) (a) $59,041.6
(108%)
=========
</TABLE>
Percentages indicated are based on net assets of $54,559,305.
All of the securities listed above are held by the custodian in a segregated
account.
(a) For federal income tax purposes, cost is $59,558.6, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 50,941
Unrealized depreciation (466,103)
---------
Net unrealized depreciation $(517,044)
=========
</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.
Annual Report 31
<PAGE>
U.S. Government Fund
Unaudited
The objective of the U.S. Government Fund is to realize a high level of total
return consistent with preservation of capital. The fund invests primarily 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.
Portfolio Composition
<TABLE>
- --------------------
<S> <C>
Mortgage Backed 55%
Agency 38%
Treasury 6%
Cash Equivalent 1%
- --------------------
</TABLE>
Credit Quality
<TABLE>
- ---------
<S> <C>
AAA 100%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 1.76%
Three Year, 5.44%
Since 1/1/95, 6.84%
. U.S. Government Fund 13,769
- -- Composite Index *14,070
<TABLE>
<CAPTION>
U.S. Government Composite Index
5436 Value Value
--------- ----------
BDATE EDATE 10,000 10,000
<S> <C> <C> <C> <C> <C>
1/1/95 1/31/95 10,130 1/1/95 1/31/95 10,162
2/1/95 2/28/95 10,287 2/1/95 2/28/95 10,356
3/1/95 3/31/95 10,337 3/1/95 3/31/95 10,413
4/1/95 4/30/95 10,460 4/1/95 4/30/95 10,533
5/1/95 5/31/95 10,787 5/1/95 5/31/95 10,831
6/1/95 6/30/95 10,863 6/1/95 6/30/95 10,902
7/1/95 7/31/95 10,843 7/1/95 7/31/95 10,907
8/1/95 8/31/95 10,946 8/1/95 8/31/95 10,995
9/1/95 9/30/95 11,019 9/1/95 9/30/95 11,068
10/1/95 10/31/95 11,161 10/1/95 10/31/95 11,191
11/1/95 11/30/95 11,329 11/1/95 11/30/95 11,328
12/1/95 12/31/95 11,473 12/1/95 12/31/95 11,442
1/1/96 1/31/96 11,568 1/1/96 1/31/96 11,540
2/1/96 2/29/96 11,372 2/1/96 2/29/96 11,416
3/1/96 3/31/96 11,251 3/1/96 3/31/96 11,361
4/1/96 4/30/96 11,185 4/1/96 4/30/96 11,327
5/1/96 5/31/96 11,166 5/1/96 5/31/96 11,322
6/1/96 6/30/96 11,279 6/1/96 6/30/96 11,434
7/1/96 7/31/96 11,328 7/1/96 7/31/96 11,469
8/1/96 8/31/96 11,334 8/1/96 8/31/96 11,483
9/1/96 9/30/96 11,496 9/1/96 9/30/96 11,630
10/1/96 10/31/96 11,743 10/1/96 10/31/96 11,820
11/1/96 11/30/96 11,897 11/1/96 11/30/96 11,962
12/1/96 12/31/96 11,816 12/1/96 12/31/96 11,897
1/1/97 1/31/97 11,842 1/1/97 1/31/97 11,941
2/1/97 2/28/97 11,880 2/1/97 2/28/97 11,959
3/1/97 3/31/97 11,805 3/1/97 3/31/97 11,889
4/1/97 4/30/97 11,919 4/1/97 4/30/97 12,022
5/1/97 5/31/97 11,999 5/1/97 5/31/97 12,116
6/1/97 6/30/97 12,081 6/1/97 6/30/97 12,218
7/1/97 7/31/97 12,272 7/1/97 7/31/97 12,447
8/1/97 8/31/97 12,228 8/1/97 8/31/97 12,397
9/1/97 9/30/97 12,328 9/1/97 9/30/97 12,532
10/1/97 10/31/97 12,460 10/1/97 10/31/97 12,679
11/1/97 11/30/97 12,505 11/1/97 11/30/97 12,708
12/1/97 12/31/97 12,595 12/1/97 12/31/97 12,812
1/1/98 1/31/98 12,812 1/1/98 1/31/98 12,963
2/1/98 2/28/98 12,805 2/1/98 2/28/98 12,959
3/1/98 3/31/98 12,850 3/1/98 3/31/98 13,006
4/1/98 4/30/98 12,913 4/1/98 4/30/98 13,066
5/1/98 5/31/98 12,994 5/1/98 5/31/98 13,143
6/1/98 6/30/98 13,064 6/1/98 6/30/98 13,219
7/1/98 7/31/98 13,124 7/1/98 7/31/98 13,277
8/1/98 8/31/98 13,300 8/1/98 8/31/98 13,491
9/1/98 9/30/98 13,535 9/1/98 9/30/98 13,739
10/1/98 10/31/98 13,531 10/1/98 10/31/98 13,796
11/1/98 11/30/98 13,528 11/1/98 11/30/98 13,759
12/1/98 12/31/98 13,576 12/1/98 12/31/98 13,804
1/1/99 1/31/99 13,627 1/1/99 1/31/99 13,868
2/1/99 2/28/99 13,476 2/1/99 2/28/99 13,735
3/1/99 3/31/99 13,577 3/1/99 3/31/99 13,836
4/1/99 4/30/99 13,633 4/1/99 4/30/99 13,878
5/1/99 5/31/99 13,575 5/1/99 5/31/99 13,829
6/1/99 6/30/99 13,601 6/1/99 6/30/99 13,873
7/1/99 7/31/99 13,584 7/1/99 7/31/99 13,903
8/1/99 8/31/99 13,597 8/1/99 8/31/99 13,940
9/1/99 9/30/99 13,726 9/1/99 9/30/99 14,042
10/1/99 10/31/99 13,769 10/1/99 10/31/99 14,070
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
*Composite Index: Lehman Intermediate Treasury Index,
1/95 through 12/97, Merrill Lynch 1-5 Year Treasury Index, 1/98 Forward
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $72.5
Number of Issues 21
Average Maturity 3.0 years
SEC Yield 6.00%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
- ------------------------------------------
<C> <S> <C>
Mortgage-Backed Securities
(67%)
3,000,000 FHLB,
5.13%, 9/15/03 $ 2,872.3
2,694,508 FHLMC CMO,
5.84%, 4/15/26 2,679.6
7,000,000 FHLMC,
5.23%, 11/04/99 6,997.0
2,395,117 FNMA #380459,
6.27%, 7/1/05 2,320.9
2,271,111 FNMA #421914,
5.86%, 3/12/28 2,229.3
3,539,000 FNMA 1993-103 PG,
6.25%, 6/25/19 3,518.8
2,300,000 FNMA 1997-35 PC,
6.75%, 5/18/18 2,308.5
652,517 FNMA 1997-67 FC,
5.73%, 12/18/19 652.0
1,756,082 FNMA ARM #323790,
6.40%, 5/1/29 1,737.4
2,583,310 FNMA G 1994-7 F,
5.88%, 12/17/19 2,589.7
7,000,000 FNMA TBA,
6.00%, 4/1/13(b) 6,722.2
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
10,000,000 FNMA TBA,
6.50%, 4/1/13(b) $ 9,796.8
4,435,302 FNMA,
7.00%, 11/1/13 4,421.6
---------
Mortgage-Backed
Securities 48,846.1
U.S. Government Agency (46%)
5,000,000 FHLB,
5.72%, 4/14/00 4,999.9
9,900,000 FHLMC,
5.48%, 08/11/00 9,472.0
3,000,000 FHLMC,
5.75%, 11/15/09 2,985.0
5,500,000 FHLMC,
5.75%, 7/15/03 5,388.4
3,000,000 FNMA,
5.25%, 1/15/03 2,896.1
8,000,000 FNMA,
5.46%, 8/3/00 7,665.1
---------
U.S. Government
Agency 33,406.5
U.S. Treasury (8%)
5,500,000 U.S. Treasury Note,
5.50%, 12/31/00 5,489.1
</TABLE>
32 Payden & Rygel Investment Group
<PAGE>
U.S. Government Fund
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Investment Companies (1%)
973,317 Dreyfus Treasury
Cash Management Fund $ 973.3
---------
Total (Cost - $89,948.9) (a) $88,715.0
(122%)
=========
</TABLE>
Percentages indicated are based on net assets of $72,535,413.
All of the securities listed above are held by the custodian in a segregated
account.
(a) For federal income tax purposes, cost is $90,478.3, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 529,453
Unrealized depreciation (1,233,931)
-----------
Net unrealized depreciation $(1,763,384)
===========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
See notes to financial statements.
Annual Report 33
<PAGE>
GNMA Fund
Unaudited
The objective of the GNMA Fund is to realize a high level of total return con-
sistent with preservation of capital. The Fund invests primarily in Government
National mortgage Association mortgage backed securities, which are debt secu-
rities representing part ownership in a pool of mortgage loans backed by the
U.S. Government.
Portfolio Composition
<TABLE>
- -----------------
<S> <C>
GNMA 79%
Other Agency 21%
- -----------------
</TABLE>
Coupon Mix
<TABLE>
- --------------------
<S> <C>
6.00% 4%
6.50% 24%
7.00% 31%
7.50% 26%
8.00% 15%
8.50% and above 0%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
Since 8/27/99, 10.89%%
. GNMA Fund $10,182
- -- Merrill Lynch 1-3 Year
Treasury Index $10,210
<TABLE>
<CAPTION>
GNMA Fund Merrill GNMA Master
5437 Value MGNM
-------
<S> <C> <C> <C> <C> <C>
10,000 10,000
8/27/99 8/31/99 9,950 8/27/99 8/31/99 9,932
9/1/99 9/30/99 10,154 9/1/99 9/30/99 10,108
10/1/99 10/31/99 10,182 10/1/99 10/31/99 10,210
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $121.2
Number of Issues 22
Average Maturity 8.0 years
SEC Yield 6.02%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
- --------------------------------------------
<C> <S> <C>
Mortgage-Backed Securities
(102%)
28,000,000 FHLMC TBA,
7.50%, 10/1/27 (b) $ 28,078.7
3,179,061 FNMA 1992-16 KC,
7.00%, 11/25/00 3,179.1
4,030,247 GNMA II #2631,
7.00%, 8/20/28 3,934.5
7,989,886 GNMA #2809,
7.00%, 9/20/29 7,800.1
18,000,000 GNMA #2824,
7.00%, 10/20/29 17,572.5
5,679,105 GNMA #473045,
6.50%, 7/15/29 5,425.3
3,289,843 GNMA #473017,
6.50%, 7/15/29 3,142.8
5,163,655 GNMA #498288,
7.00%, 1/15/29 5,063.6
4,495,273 GNMA #502609,
6.00%, 3/15/29 4,170.8
3,997,372 GNMA #505138,
8.00%, 9/15/29 4,084.8
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
7,742,463 GNMA #507768,
6.50%, 4/15/29 $ 7,396.5
5,442,073 GNMA #518419,
6.50%, 9/15/29 5,198.9
2,976,319 GNMA #780852,
6.50%, 9/15/13 2,923.2
3,000,001 GNMA #780759,
6.50%, 4/15/13 2,946.5
2,500,000 GNMA II #80331,
6.50%, 10/20/29 2,509.4
12,000,000 GNMA TBA,
8.00%, 11/15/28 (b) 12,255.0
6,237,704 GNMA 1996-6 PC,
6.50%, 5/16/12 6,237.1
1,662,927 GNMA 1996-6 A,
6.50%, 10/16/08 1,663.1
----------
Mortgage-Backed
Securities 123,581.9
</TABLE>
34 Payden & Rygel Investment Group
<PAGE>
GNMA Fund
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
U.S Government Agency (28%)
1,000,000 FHLMC Discount Note,
5.16%, 11/1/99 $ 1,000.0
3,200,000 FHLMC Discount Note,
5.50%, 1/20/00 3,160.9
29,500,000 FNMA Discount Note,
5.54%, 1/20/00 29,136.8
----------
U.S. Government
Agency 33,297.7
Investment Companies (0%)
255,802 Dreyfus Treasury
Cash Management Fund 255.8
----------
Total (Cost - $156,457.6) (a) $157,135.4
(130%)
==========
</TABLE>
Percentages indicated are based on net assets of $121,160,839.
(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 $690,357
Unrealized depreciation (12,564)
--------
Net unrealized appreciation $677,793
========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
Annual Report 35
<PAGE>
[LOGO OF INVESTMENT QUALITY BOND FUND]
Unaudited
The objective of the Investment Quality Bond Fund is to realize a high level of
total return consistent with preservation of capital. In order to achieve these
objectives the Investment Quality Bond Fund invests in a wide variety of in-
vestment grade debt securities payable primarily in U.S. dollars.
Portfolio Composition
<TABLE>
- ---------------------
<S> <C>
Mortgage Backed 36%
Corporate 29%
Treasury/Agency 19%
Commercial Paper 9%
Asset Backed 5%
Cash Equivalent 2%
- ---------------------
</TABLE>
Credit Quality
<TABLE>
- --------
<S> <C>
AAA 57%
AA 10%
A 18%
BBB 15%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, -0.71%
Three Year, 5.27%
Five Year, 7.32%
Since 1/1/94, 5.22%
. Investment Quality Bond
Fund $13,457
- -- Lehman Aggregate
Index $14,156
<TABLE>
<CAPTION>
Investment Quality Bond Fund Lehman Aggregate Index
5434 Value lehmagg Value
------- ------
BDATE EDATE 10,000 10,000
<S> <C> <C> <C> <C> <C>
1/1/94 1/31/94 10,190 1/1/94 1/31/94 10,135
2/1/94 2/28/94 9,877 2/1/94 2/28/94 9,959
3/1/94 3/31/94 9,642 3/1/94 3/31/94 9,713
4/1/94 4/30/94 9,554 4/1/94 4/30/94 9,636
5/1/94 5/31/94 9,545 5/1/94 5/31/94 9,635
6/1/94 6/30/94 9,506 6/1/94 6/30/94 9,613
7/1/94 7/31/94 9,668 7/1/94 7/31/94 9,804
8/1/94 8/31/94 9,632 8/1/94 8/31/94 9,816
9/1/94 9/30/94 9,479 9/1/94 9/30/94 9,672
10/1/94 10/31/94 9,452 10/1/94 10/31/94 9,663
11/1/94 11/30/94 9,483 11/1/94 11/30/94 9,642
12/1/94 12/31/94 9,531 12/1/94 12/31/94 9,708
1/1/95 1/31/95 9,707 1/1/95 1/31/95 9,900
2/1/95 2/28/95 9,916 2/1/95 2/28/95 10,136
3/1/95 3/31/95 9,989 3/1/95 3/31/95 10,198
4/1/95 4/30/95 10,114 4/1/95 4/30/95 10,341
5/1/95 5/31/95 10,557 5/1/95 5/31/95 10,741
6/1/95 6/30/95 10,616 6/1/95 6/30/95 10,819
7/1/95 7/31/95 10,555 7/1/95 7/31/95 10,795
8/1/95 8/31/95 10,698 8/1/95 8/31/95 10,925
9/1/95 9/30/95 10,833 9/1/95 9/30/95 11,032
10/1/95 10/31/95 11,001 10/1/95 10/31/95 11,175
11/1/95 11/30/95 11,208 11/1/95 11/30/95 11,343
12/1/95 12/31/95 11,410 12/1/95 12/31/95 11,502
1/1/96 1/31/96 11,465 1/1/96 1/31/96 11,578
2/1/96 2/29/96 11,135 2/1/96 2/29/96 11,377
3/1/96 3/31/96 10,999 3/1/96 3/31/96 11,298
4/1/96 4/30/96 10,891 4/1/96 4/30/96 11,234
5/1/96 5/31/96 10,849 5/1/96 5/31/96 11,212
6/1/96 6/30/96 10,979 6/1/96 6/30/96 11,362
7/1/96 7/31/96 10,983 7/1/96 7/31/96 11,393
8/1/96 8/31/96 11,113 8/1/96 8/31/96 11,374
9/1/96 9/30/96 11,216 9/1/96 9/30/96 11,572
10/1/96 10/31/96 11,536 10/1/96 10/31/96 11,829
11/1/96 11/30/96 11,738 11/1/96 11/30/96 12,031
12/1/96 12/31/96 11,609 12/1/96 12/31/96 11,919
1/1/97 1/31/97 11,646 1/1/97 1/31/97 11,956
2/1/97 2/28/97 11,660 2/1/97 2/28/97 11,986
3/1/97 3/31/97 11,535 3/1/97 3/31/97 11,853
4/1/97 4/30/97 11,709 4/1/97 4/30/97 12,030
5/1/97 5/31/97 11,803 5/1/97 5/31/97 12,144
6/1/97 6/30/97 11,930 6/1/97 6/30/97 12,288
7/1/97 7/31/97 12,257 7/1/97 7/31/97 12,619
8/1/97 8/31/97 12,170 8/1/97 8/31/97 12,512
9/1/97 9/30/97 12,357 9/1/97 9/30/97 12,696
10/1/97 10/31/97 12,510 10/1/97 10/31/97 12,880
11/1/97 11/30/97 12,566 11/1/97 11/30/97 12,940
12/1/97 12/31/97 12,654 12/1/97 12/31/97 13,070
1/1/98 1/31/98 12,800 1/1/98 1/31/98 13,238
2/1/98 2/28/98 12,757 2/1/98 2/28/98 13,228
3/1/98 3/31/98 12,835 3/1/98 3/31/98 13,273
4/1/98 4/30/98 12,899 4/1/98 4/30/98 13,343
5/1/98 5/31/98 13,011 5/1/98 5/31/98 13,469
6/1/98 6/30/98 13,102 6/1/98 6/30/98 13,583
7/1/98 7/31/98 13,143 7/1/98 7/31/98 13,612
8/1/98 8/31/98 13,327 8/1/98 8/31/98 13,834
9/1/98 9/30/98 13,684 9/1/98 9/30/98 14,158
10/1/98 10/31/98 13,553 10/1/98 10/31/98 14,083
11/1/98 11/30/98 13,634 11/1/98 11/30/98 14,163
12/1/98 12/31/98 13,676 12/1/98 12/31/98 14,206
1/1/99 1/31/99 13,786 1/1/99 1/31/99 14,306
2/1/99 2/28/99 13,504 2/1/99 2/28/99 14,056
3/1/99 3/31/99 13,615 3/1/99 3/31/99 14,133
4/1/99 4/30/99 13,671 4/1/99 4/30/99 14,179
5/1/99 5/31/99 13,479 5/1/99 5/31/99 14,054
6/1/99 6/30/99 13,439 6/1/99 6/30/99 14,009
7/1/99 7/31/99 13,318 7/1/99 7/31/99 13,949
8/1/99 8/31/99 13,297 8/1/99 8/31/99 13,942
9/1/99 9/30/99 13,413 9/1/99 9/30/99 14,103
10/1/99 10/31/99 13,457 10/1/99 10/31/99 14,156
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $195.2
Number of Issues 54
Average Maturity 9.9 years
SEC Yield 6.94%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ---------------------------------------------
<C> <S> <C>
Asset-Backed Securities (7%)
3,300,000 Green Tree Financial
Corp.,
6.93%, 7/15/28 $ 3,301.0
2,164,306 IMC Home Equity Loan
Trust
1997 - 6 A,
5.58%, 1/20/28 2,159.3
2,220,000 MBNA Master Credit
Card Trust,
6.60%, 11/15/04 2,257.9
1,645,930 Structured Asset
Notes Transactions,
7.16%, 10/28/03 1,613.0
5,000,000 WFS Financial Owner
Trust,
5.55%, 2/20/03 4,936.0
----------
Asset-Backed
Securities 14,267.2
Commercial Paper (13%)
7,000,000 Coca Cola CP,
5.25%, 11/15/99 6,985.7
4,500,000 Emerson Electric CP,
5.25%, 11/15/99 4,490.8
9,000,000 General Electric
Capital Corp. CP,
5.26%, 11/24/99 9,000.0
4,000,000 Merrill Lynch CP,
5.28%, 11/15/99 3,991.8
----------
Commercial Paper 24,468.3
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Corporate Bonds (40%)
4,000,000 Ahmanson Finance
Note,
8.25%, 10/1/02 $ 4,125.0
4,100,000 AMR Corporate Note,
9.82%, 10/25/11 4,694.5
1,598,474 BSMSI,
6.51%, 1/25/07 1,590.5
1,050,000 Citicorp,
6.65%, 5/15/00 1,053.9
4,000,000 Duke Capital Corp.,
7.50%, 10/1/09 4,045.0
5,000,000 FC CBO,
8.43%, 6/3/09 (c) 4,500.0
4,000,000 Grand Metropolitan
Investment,
8.63%, 8/15/01 4,130.0
2,425,000 Hanson Overseas PLC,
6.75%, 9/15/05 2,379.5
4,000,000 IBM Corporation,
5.40%, 1/26/09 3,600.0
4,000,000 MBNA American Bank,
6.10%, 12/15/00 3,980.0
10,000,000 Merrill Lynch
Hutchinson,
7.49%, 8/26/00 (c) 10,000.0
</TABLE>
36 Payden & Rygel Investment Group
<PAGE>
[LOGO OF INVESTMENT QUALITY BOND FUND]
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
1,042,128 Navistar Financial
Corp.,
6.75%, 3/15/02 $ 1,044.5
4,000,000 Norfolk Southern,
7.70%, 5/15/17 4,015.0
6,000,000 Putnam CBO II,
6.88%, 11/8/09 (c) 5,362.5
1,500,000 Salomon, Inc.,
6.54%, 7/23/01 1,500.4
1,500,000 Salomon, Inc.,
7.25%, 5/1/01 1,511.3
4,000,000 TCI Communication,
6.38%, 3/12/01 4,022.0
4,000,000 Tele-Communications,
8.25%, 1/15/03 4,150.0
650,000 Time Warner
Entertainment,
8.38%, 3/15/23 692.3
3,000,000 Time Warner, Inc.,
7.75%, 6/15/05 3,075.0
4,000,000 Wal Mart Stores,
6.75%, 5/15/02 4,020.0
4,000,000 Wells Fargo & Co.,
6.63%, 7/15/04 3,965.0
----------
Corporate Bonds 77,456.4
Mortgage-Backed Securities (49%)
6,300,000 DLJ Commercial
Mortgage Corp.,
7.30%, 6/1/09 6,347.3
1,951,935 FHLMC,
8.50%, 6/1/22 2,037.3
11,000,000 FNMA TBA,
6.00%, 8/1/29 (b) 10,250.6
11,100,000 FNMA TBA,
6.00%, 9/1/14 (b) 10,666.3
17,200,000 FNMA TBA,
7.00%, 4/1/28 (b) 16,877.5
11,500,000 FNMA TBA,
7.50%, 4/1/28 (b) 11,514.4
8,000,000 GMAC 1999 - CL,
6.18%, 5/15/33 7,460.0
492,664 GNMA #399001,
8.00%, 12/15/26 503.4
3,919,884 GNMA #48928,
8.00%, 6/15/28 4,005.6
2,019,062 GNMA #780743,
8.00%, 12/15/26 2,064.5
24,000,000 GNMA TBA,
6.50%, 6/1/29 (b) 22,912.3
804,282 GNMA,
8.00%, 7/15/25 821.9
----------
Mortgage-Backed
Securities 95,461.1
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
U.S. Government Agency (3%)
7,200,000 FNMA,
6.25%, 5/15/29 $ 6,624.0
U.S. Treasury (22%)
14,261,330 Treasury Inflation
Protection Security,
3.88%, 1/15/09 13,994.8
7,500,000 U. S. Treasury Bond,
5.50%, 2/15/08 7,186.3
700,000 U.S. Treasury Bond,
6.25%, 8/15/23 684.2
3,600,000 U.S. Treasury Note,
5.50%, 2/28/03 3,552.4
4,000,000 U.S. Treasury Note,
6.25%, 6/30/02 4,034.6
2,500,000 U.S. Treasury Note,
6.63%, 4/30/02 2,543.3
6,250,000 U.S. Treasury Note,
6.63%, 5/15/07 6,407.6
500,000 U.S. Treasury Note,
7.50%, 2/15/05 531.1
16,000,000 U.S. Treasury Strip,
0.00%, 8/15/20 4,148.3
----------
U.S. Treasury 43,082.6
Investment Companies (2%)
3,633,874 Dreyfus Treasury
Cash
Management Fund 3,633.9
----------
Total (Cost - $270,915.5) (a) $264,993.5
(136%)
==========
</TABLE>
Percentages indicated are based on net assets of $195,227,850.
All of the securities listed above are held by the custodian in a segregated
account.
(a) For federal income tax purposes, cost is $272,576.5, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,344,172
Unrealized depreciation (6,238,880)
-----------
Net unrealized depreciation $(7,583,052)
===========
</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.
Annual Report 37
<PAGE>
[LOGO OF INVESTMENT QUALITY BOND FUND]
At October 31, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
295 U.S. Treasury 10 Year
Note Future (Short) Dec-99 $32,367,031 $(10,711)
82 U.S. Treasury Bond
Future Dec-99 9,314,688 (63,151)
--------
$(73,862)
========
</TABLE>
The Fund's activity in written options for the year ended October 31, 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 1200 2,736,625
Options canceled in closing transactions (2000) (4,926,375)
Options expired prior to exercise 0 0
----- -----------
Options outstanding at end of period 0 $ 0
===== ===========
</TABLE>
See notes to financial statements.
38 Payden & Rygel Investment Group
<PAGE>
[LOGO OF TOTAL RETURN FUND]
Unaudited
The objective of the Total Return Fund is to realize a high level of total re-
turn consistent with preservation of capital. The Fund invests in a wide vari-
ety of debt instruments and income-producing securities, payable both in U.S.
dollars and foreign currencies. The Total Return Fund generally invests in in-
vestment grade debt securities, but may invest up to 25% of its assets in below
investment grade securities.
Portfolio Composition
<TABLE>
- ---------------------
<S> <C>
Treasury/Agency 22%
Corporate 21%
Mortgage Backed 40%
Asset Backed 7%
Commercial Paper 8%
Cash 2%
- ---------------------
</TABLE>
Credit Quality
<TABLE>
- ----------------
<S> <C>
AAA 75%
AA 1%
A 6%
BBB 13%
BB or below 5%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 0.55%
Since 12/9/96, 5.27%
. Total Return Fund $11,601
- -- Lehman Aggregate Index $11,766*
<TABLE>
<CAPTION>
Total Return Fund Lehman Aggregate Index
<S> <C> <C>
12/9/96 10,000 10,000
12/31/96 9,959 9,907
1/31/97 9,990 9,937
2/28/97 10,031 9,962
3/31/97 9,900 9,852
4/30/97 10,031 9,999
5/31/97 10,123 10,094
6/30/97 10,255 10,213
7/31/97 10,501 10,489
8/31/97 10,428 10,399
9/30/97 10,593 10,553
10/31/97 10,710 10,706
11/30/97 10,762 10,755
12/31/97 10,839 10,863
1/31/98 10,917 11,003
2/28/98 10,915 10,995
3/31/98 10,995 11,032
4/30/98 11,071 11,090
5/31/98 11,105 11,195
6/30/98 11,203 11,290
7/31/98 11,248 11,314
8/31/98 11,436 11,498
9/30/98 11,697 11,767
10/31/98 11,537 11,705
11/30/98 11,710 11,772
12/31/98 11,798 11,807
1/31/99 11,936 11,891
2/28/99 11,697 11,683
3/31/99 11,790 11,747
4/30/99 11,872 11,785
5/31/99 11,694 11,681
6/30/99 11,678 11,644
7/31/99 11,546 11,594
8/31/99 11,489 11,588
9/30/99 11,612 11,722
10/31/99 11,601 11,766
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
----------------------------
<S> <C>
Net Assets $230.4
Number of Issues 65
Average Maturity 8.8 years
SEC Yield 7.58%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ----------------------------------------------
Asset-Backed Securities (9%)
750,000 Ares Leveraged Bond,
9.77%, 11/30/04 (c) $ 645.0
3,400,000 Chase Manhattan,
6.40%, 7/16/01 3,387.8
3,000,000 Citibank Credit
Card,
5.75%, 1/15/03 2,975.4
3,000,000 Evergreen Funding,
6.33%, 11/15/10 (c) 1,237.5
645,884 Gramercy,
9.47%, 10/25/02 (c) 643.6
400,000 Green Tree Financial
Corporation, 6.93%,
7/15/28 400.1
2,000,000 Los Angeles Funding,
7.66%,12/15/26 (c) 1,857.4
3,500,000 Premier Auto Trust,
6.32%, 3/6/02 3,474.3
3,000,000 Salomon, Inc.,
6.54%, 7/23/01 3,000.7
822,965 Structured Asset
Notes Transactions,
7.16%, 10/28/03 806.5
3,600,000 WFS Financial Owner
Trust,
5.55%, 2/20/03 3,553.9
----------
Asset-Backed
Securities 21,982.2
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ----------------------------------------------
Commercial Paper (10%)
10,000,000 American Express CP,
5.97%, 1/27/00 $ 10,000.0
3,600,000 Cargill CP,
5.20%, 11/9/99 3,595.8
10,000,000 General Electric
Capital Corp. CP,
5.97%, 1/18/00 10,000.0
----------
Commercial Paper 23,595.8
Corporate Bonds (28%)
4,500,000 Aeltus CBO II,
7.98%, 8/6/09 (c) 3,420.0
750,000 Argentina,
10.95%, 11/1/99 746.3
1,500,000 BEA CBO 1998-1A B,
7.56%, 6/15/10 (c) 975.0
1,000,000 Cemex,
9.50%, 9/20/01 (c) 1,023.8
4,500,000 Century Funding Ltd,
7.13%, 2/15/11 (c) 3,150.0
4,000,000 Edison Mission
Energy,
7.73%, 6/15/09 4,020.0
140,000 EMC Corporate
Convertible Note,
3.25%, 3/15/02 896.0
</TABLE>
Annual Report 39
<PAGE>
[LOGO OF TOTAL RETURN FUND]
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ----------------------------------------------
5,000,000 FC CBO,
8.43%, 6/3/09 (c) $ 4,500.0
580,000 France Telecom,
2.00%, 1/1/04 597.4
2,500,000 General Motors
Acceptance Corp.,
5.75%, 11/10/03 2,393.8
2,000,000 GS Escrow Corp.,
5.99%, 8/1/03 (c) 1,900.0
1,500,000 Hewlett Packard
Convertible Note,
0.00%, 10/14/17 883.1
5,500,000 Hewlett Packard,
0.00%, 10/14/17 3,238.1
1,250,000 Mark IV Industrial,
7.50%, 9/1/07 1,153.1
4,000,000 MBNA Corporation,
6.15%, 10/1/03 3,865.0
900,000 Merrill Lynch
Convertible Note,
0.25%, 5/10/06 874.1
7,000,000 Merrill Lynch
Hutchinson,
7.49%, 8/26/00 (c) 7,000.0
1,550,000 Office Depot,
8.00%, 11/1/08 1,048.2
300,000 Omnicom Group,
4.25%, 11/3/07 824.6
225,000 Salomon, Inc.,
6.25%, 11/30/00 225.0
2,796,000 Silicon Graphics,
5.25%, 9/1/04 2,069.0
4,000,000 Sprint Capital
Corporation,
6.38%, 5/12/09 3,760.0
3,500,000 TCI Communication,
5.76%, 3/12/01 3,519.3
3,500,000 Telefonica
Argentina,
8.38, 10/1/00 (c) 3,490.2
1,000,000 Time Warner Pass-
Thru,
6.10%, 12/30/01 (c) 987.5
1,775,000 Tragas,
10.25%, 4/25/01 (c) 1,772.8
40,000 Union Pacific
Capital Trust
Convertible
Preferred,
6.25%, 4/1/28 (c) 1,935.0
4,000,000 US West Capital
Funding,
5.55%, 6/15/00 4,006.5
----------
Corporate Bonds 64,273.8
Mortgage-Backed Securities (54%)
5,400,000 DLJ Commercial
Mortgage Corp.,
7.30%, 6/1/09 5,440.5
2,232,600 FHLMC #A01499,
8.50%, 4/1/19 2,337.2
480,718 FHLMC Gold,
8.50%, 3/1/23 502.4
1,600,000 FHLMC TBA,
7.50%, 9/1/29 (b) 1,604.5
3,000,000 FHLMC,
5.16%, 11/1/99 3,000.0
14,000,000 FHLMC,
5.19%, 11/5/99 13,992.0
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ----------------------------------------------
2,170,595 FNMA 1997-32,
6.29%, 4/25/27 $ 2,186.2
11,500,000 FNMA TBA,
6.00%, 8/1/29 (b) 10,716.5
11,900,000 FNMA TBA,
6.00%, 9/1/14 (b) 11,435.1
16,000,000 FNMA TBA,
7.00%, 5/1/28 (b) 15,700.0
9,200,000 FNMA TBA,
7.50%, 5/1/28 (b) 9,211.5
10,000,000 FNMA,
5.52%, 12/2/1999 9,877.3
6,000,000 GMAC 1999 CL,
6.18%, 5/15/23 5,595.0
4,456,620 GNMA #449601,
8.00%, 6/15/27 4,554.1
23,900,000 GNMA TBA,
6.50%, 6/1/29 (b) 22,816.9
5,000,000 GNMA TBA,
8.00%, 1/15/27 (b) 5,106.3
----------
Mortgage-Backed
Securities 124,075.5
U.S. Government Agency (3%)
7,200,000 FNMA,
6.25%, 5/15/29 6,624.0
U.S. Treasury (27%)
15,279,996 Treasury Inflation
Protection Security,
3.88%, 1/15/09 14,994.4
17,000,000 U.S. Treasury Note,
5.63%, 11/30/99 17,012.9
1,500,000 U.S. Treasury Note,
6.25%, 8/31/00 1,508.4
17,000,000 U.S. Treasury Note,
6.63%, 5/15/07 17,428.7
40,000,000 U.S. Treasury Strip,
0.00%, 8/15/20 10,370.8
----------
U.S. Treasury 61,315.2
Investment Companies (2%)
5,634,496 Dreyfus Treasury
Cash Management Fund 5,634.5
----------
Total (Cost - $314,690.4) (a) $307,501.0
(133%)
==========
</TABLE>
Percentages indicated are based on net assets of $230,440,482.
All of the securities listed above are held by the custodian in a segregated
account.
(a) For federal income tax purposes, cost is $315,974.3, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 628,687
Unrealized depreciation (9,102,021)
-----------
Net unrealized depreciation $(8,473,334)
===========
</TABLE>
See notes to financial statements.
40 Payden & Rygel Investment Group
<PAGE>
[LOGO OF TOTAL RETURN FUND]
(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.
At October 31, 1999, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
150 U.S. Treasury 10 Year
Note Future (short) Dec-99 $16,457,813 $ 1,125
208 U.S. Treasury Bond
Future Dec-99 23,627,500 18,944
10 NASDAQ 100 Index
Future (short) Dec-99 2,654,000 (98,050)
--------
$(77,981)
========
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Liabilities:
01/18/00 Mexican Peso (sell) 9.8800 $2,125,506 $(54,430)
========
</TABLE>
The Fund's activity in written options for the year ended October 31, 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>
See notes to financial statements.
Annual Report 41
<PAGE>
[LOGO OF HIGH INCOME FUND]
Unaudited
The objective of the High Income Fund is to realize a high level of current in-
come while providing for capital appreciation by investing in a diversified
portfolio of below investment grade bonds. The Fund invests at least 65% of its
total assets in below investment grade bonds.
Portfolio Composition
<TABLE>
- -----------------------------
<S> <C>
Corporate 87%
Preferred Stock 4%
Asset Backed 2%
Foreign Government Bonds 1%
Cash 6%
- -----------------------------
</TABLE>
Credit Quality
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
AAA 8%
A 4%
BBB 3%
BB 29%
B 56%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 5.65%
Since 12/30/97, 3.76%
. High Income Fund $10,700
- -- Merrill Lynch High Yield
Index $10,365
<TABLE>
<CAPTION>
High Income Fund Merrill Lynch High Yield Master
<S> <C> <C>
12/30/97 10,000 10,000
12/31/97 9,950 10,009
1/31/98 10,160 10,158
2/28/98 10,230 10,200
3/31/98 10,329 10,288
4/30/98 10,390 10,337
5/31/98 10,401 10,409
6/30/98 10,443 10,460
7/31/98 10,556 10,520
8/31/98 10,147 10,066
9/30/98 10,262 10,086
10/31/98 10,128 9,920
11/30/98 10,553 10,372
12/31/98 10,581 10,376
1/31/99 10,708 10,478
2/28/99 10,708 10,398
3/31/99 10,859 10,488
4/30/99 10,999 10,652
5/31/99 10,838 10,578
6/30/99 10,800 10,558
7/31/99 10,821 10,574
8/31/99 10,723 10,466
9/30/99 10,712 10,426
10/31/99 10,700 10,365
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $109.3
Number of Issues 97
Average Maturity 5.8 years
SEC Yield 10.01%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ----------------------------------------------
Asset-Backed Securities (2%)
250,000 Ford 1998 A Class D,
7.50%, 5/16/03 (b) $ 248.8
1,000,000 Ford 1998-B,
7.50%, 11/15/03 (b) 990.0
645,884 Gramercy,
9.47%, 10/25/02 (b) 643.6
750,000 Triangle Funding Ltd,
7.41%, 10/15/03 728.4
----------
Asset-Backed
Securities 2,610.8
Collaterized Bond Obligations
(0%)
250,000 Ares Leveraged Bond,
9.77%, 11/30/04 (b) 215.0
Foreign Bond (1%)
1,000,000 Headhold GMBH,
10.75%, 7/15/06 (b) 1,056.1
Preferred Stock (4%)
11,467 Cablevision Preferred 1,249.9
500 First Republic
Capital Corp. (b) 493.8
12,037 Granite Broadcasting
Preferred 1,227.8
47,000 Swire Pacific
Preferred (b) 940.0
----------
Preferred Stock 3,911.5
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ---------------------------------------------
Corporate Bonds (85%)
Basic Materials (3%)
400,000 AK Steel Corp.,
9.13%, 12/15/06 $ 397.0
1,250,000 California Steel,
8.50%, 4/1/09 (b) 1,193.8
1,250,000 Sterling Chemicals,
12.38%, 7/15/06 1,196.9
----------
Basic Materials 2,787.7
Building & Construction (4%)
1,000,000 Albecca, Inc.,
10.75%, 8/15/08 780.0
1,000,000 Building Materials
Corporation,
8.00%, 12/1/08 920.0
1,500,000 Kaufman & Broad Home
Corporation,
9.63%, 11/15/06 1,537.5
750,000 US Home Corporation,
8.88%, 2/15/09 673.1
1,000,000 US Home Corporation,
8.88%, 8/15/07 900.0
----------
Building &
Construction 4,810.6
</TABLE>
42 Payden & Rygel Investment Group
<PAGE>
[LOGO OF HIGH INCOME FUND]
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ----------------------------------------------
Cable Systems (7%)
500,000 Adelphia
Communications,
10.50%, 7/15/04 $ 527.5
1,315,000 Century
Communications,
8.38%, 12/15/07 (b) 1,244.3
1,500,000 Charter Communication
Holdings LLC,
8.63%, 4/1/09 1,417.5
1,800,000 Classic Cable,
9.88%, 8/1/08 1,800.0
1,000,000 Falcon Holdings
Group,
0.00%, 4/15/03 730.0
1,250,000 Galaxy Telecom,
12.38%, 10/01/05 1,350.0
1,000,000 NTL, Inc.,
10.00%, 2/15/07 1,022.5
----------
Cable Systems 8,091.8
Consumer Cyclicals (3%)
1,000,000 Bally Total Fitness,
9.88%, 10/15/07 945.0
1,000,000 Pinnacle Holdings,
0.00%, 3/15/08 605.0
1,000,000 Prime Hospitality
Corp.,
9.75%, 4/1/07 990.0
500,000 Prime Hospitality,
9.25%, 1/15/06 501.2
1,000,000 Protection One,
8.13%, 1/15/09 390.0
750,000 Revlon Consumer
Products,
8.63%, 2/1/08 393.8
----------
Consumer Cyclicals 3,825.0
Consumer Non-Cyclicals (4%)
1,500,000 Chiquita Brands
International,
10.00%, 6/15/09 1,125.0
1,000,000 Dominos, Inc.,
10.38%, 1/15/09 930.0
1,000,000 K Mart Corp,
7.95%, 2/1/23 930.0
750,000 Packaged Ice, Inc.,
9.75%, 2/1/05 640.3
750,000 Triad Hospital
Holdings,
11.00%, 5/15/09 (b) 738.8
----------
Consumer Non-
Cyclicals 4,364.1
Energy (3%)
1,000,000 Calpine Corporation,
9.25%, 2/1/04 1,015.0
1,000,000 Nuevo Energy Co.,
9.50%, 6/1/08 990.0
500,000 Pogo Producing,
10.33%, 2/15/09 523.1
1,000,000 Pogo Producing,
8.75%, 5/15/07 965.0
----------
Energy 3,493.1
Financials (5%)
1,250,000 Bay View Capital,
9.13%, 8/15/07 1,159.4
1,000,000 Century Funding Ltd.,
7.38%, 2/15/11 700.0
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ---------------------------------------------
1,000,000 GS Escrow
Corporation,
6.31%, 8/1/03 $ 950.0
1,250,000 Polymer Group,
9.00%, 7/1/07 1,206.2
1,500,000 Standard Chartered,
5.46%, 12/29/49 1,012.5
----------
Financials 5,028.1
Gaming (9%)
1,500,000 Harrahs Operating
Co.,
7.88%, 12/15/05 1,432.5
1,500,000 Hollywood Park,
9.25%, 2/15/07 1,447.5
1,500,000 Horseshoe Gaming,
9.38%, 6/15/07 1,483.1
1,500,000 Isle Of Capri
Casinos,
8.75%, 4/15/09 1,357.5
1,500,000 Park Place
Entertainment,
7.88%, 12/15/05 1,425.0
1,500,000 Starwood Hotels &
Resorts,
6.75%, 11/15/05 1,443.8
1,000,000 Station Casinos,
8.88%, 12/01/08 975.0
----------
Gaming 9,564.4
Industrial (14%)
500,000 Aeltus CBO II,
7.98%, 8/6/09 (b) 380.0
1,500,000 Allied Waste North
America,
10.00%, 8/1/09 (b) 1,290.0
1,500,000 American Standard,
7.38%, 2/1/08 1,350.0
1,250,000 BE Aerospace,
8.00%, 3/1/08 1,137.5
1,250,000 Columbus McKinnon,
8.50%, 4/1/08 1,112.5
750,000 Hayes Lemmerz
International, Inc.,
8.25%, 12/15/08 663.8
1,500,000 Huntsman ICI,
10.13%, 7/1/09 1,568.3
1,250,000 K&F Industries,
9.25%, 10/15/07 1,200.0
250,000 LLS Corporation,
11.63%, 8/1/09 (b) 244.7
250,000 Mark IV Industrial,
7.50%, 9/1/07 230.6
1,650,000 Pierce Leahy,
8.13%, 5/15/08 1,604.6
250,000 Ryerson Tull, Inc.,
8.50%, 7/15/01 253.7
1,500,000 Scotts Co.,
8.63%, 1/15/09 (b) 1,432.5
750,000 Tembec Industries,
8.63%, 6/30/09 746.3
2,500,000 WMX Technologies,
7.13%, 6/15/01 2,425.0
----------
Industrial 15,639.5
</TABLE>
Annual Report 43
<PAGE>
[LOGO OF HIGH INCOME FUND]
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
<C> <S> <C> <C>
- -----------------------------------------------
Multimedia (19%)
1,500,000 Ackerly,
9.00%, 1/15/09 $ 1,455.0
1,250,000 Cadmus
Communication
Corp.,
9.75%, 6/1/09 1,235.9
1,500,000 Chancellor
Media,
8.13%, 12/15/07 1,470.0
1,500,000 Cumulus Media,
10.38%, 7/1/08 1,552.5
750,000 Granite
Broadcasting,
8.88%, 5/15/08 727.5
1,000,000 Grupo Televisa,
11.88%, 5/15/06 1,060.0
1,250,000 HMH Properties,
7.88%, 8/1/08 1,125.0
1,500,000 HMV Media Group
PLC,
10.25%, 5/15/08 1,380.0
1,500,000 Loews Cineplex
Entertainment,
8.88%, 8/1/08 1,368.7
850,000 Multi Canal,
13.13%, 4/15/09 803.3
2,200,000 Premier Parks,
Inc.,
9.25%, 4/1/06 2,101.0
1,500,000 Price
Communications
Wireless, Inc.,
9.13%, 12/15/06 1,531.9
1,000,000 Primedia, Inc.,
7.63%, 4/1/08 952.5
1,000,000 Regal Cinemas,
8.88%, 12/15/10 675.0
1,000,000 SFX
Entertainment,
9.13%, 12/01/08 950.0
1,500,000 Sinclair
Broadcasting,
9.00%, 7/15/07 1,430.6
750,000 Young
Broadcasting,
8.75%, 6/15/07 735.0
----------
Multimedia 20,553.9
Telecommunications (12%)
750,000 Call-Net,
8.00%, 8/15/08 645.0
1,000,000 Clearnet
Communications,
0.00%, 12/15/00 945.0
1,000,000 Flag Limited,
8.25%, 1/30/08 900.0
1,250,000 GST USA, Inc.,
0.00%, 12/15/05 993.8
2,000,000 Intermedia
Communications,
8.60%, 6/1/08 1,770.0
1,500,000 Level 3
Communications,
9.13%, 5/1/08 1,391.2
2,000,000 McLeodUSA, Inc.,
9.25%, 7/15/07 2,010.0
1,500,000 Nextel
Communications,
0.00%, 10/31/02 1,095.0
1,500,000 Nextlink
Communications,
10.75%, 11/15/08 1,518.8
1,250,000 RSL
Communications,
9.13%, 3/1/08 1,062.5
1,000,000 Williams
Communication,
10.88%, 10/1/09 1,025.0
----------
Telecommunications 13,356.3
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
<C> <S> <C> <C>
- ---------------------------------------------
Transportation (2%)
1,750,000 Northwest
Airlines, Inc.,
8.52%, 4/7/04 $ 1,673.4
----------
Corporate Bonds 93,187.9
Investment Companies (6%)
5,945,440 Dreyfus Treasury
Cash Management
Fund 5,945.4
----------
Total (Cost - $112,916.6) $106,926.7
(a) (98%)
==========
</TABLE>
Percentages indicated are based on net assets of $109,297,340.
All of the securities listed above are held by the custodian in a segregated
account.
(a) For federal income tax purposes, cost is $112,916.9, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 247,836
Unrealized depreciation (6,238,075)
-----------
Net unrealized depreciation $(5,990,239)
===========
</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.
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Liabilities:
01/04/00 Euro(sell) 1.0474 $ 79,537 $ (674)
01/18/00 Euro(sell) 1.0292 55,320 (1,510)
06/26/00 Euro(sell) 1.0618 1,592,700 (9,753)
06/26/00 Euro(sell) 1.0413 1,041,300 (27,002)
---------- --------
$2,768,857 $(38,939)
========== ========
</TABLE>
See notes to financial statements.
44 Payden & Rygel Investment Group
<PAGE>
[LOGO OF SHORT DURATION TAX EXEMPT FUND]
Unaudited
The objective of the Short Duration Tax Exempt Fund is to earn federal tax-free
income, by investing in debt obligations which are exempt from federal income
tax, consistent with preservation of capital. The Fund generally invests in in-
vestment grade debt securities, but may invest up to 25% of its assets in below
investment grade securities.
Portfolio Composition
<TABLE>
- ------------------------------
<S> <C>
Insured Bonds 41%
Revenue Bonds 27%
General Obligations Bonds 19%
Pre-Refunded Bonds 12%
Cash Equivalent 1%
- ------------------------------
</TABLE>
Credit Quality
<TABLE>
- --------
<S> <C>
AAA 58%
AA 21%
A 7%
BBB 14%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, 2.29%
Three Year, 3.79%
Five Year, 4.10%
Since 9/1/94, 3.90%
. Short Duration Tax Exempt $12,185
- -- Lehman 1-Year General Obligation Index $12,539
<TABLE>
<CAPTION>
Short Duration Tax Exempt Lehman 1-Year GO Index
5432 Value muni1yr Value
------- -------
BDATE EDATE 10,000 10,000
<S> <C> <C> <C> <C> <C>
9/1/94 9/30/94 9,974 9/1/94 9/30/94 10,001
10/1/94 10/31/94 9,965 10/1/94 10/31/94 10,003
11/1/94 11/30/94 9,957 11/1/94 11/30/94 10,018
12/1/94 12/31/94 9,989 12/1/94 12/31/94 10,044
1/1/95 1/31/95 10,040 1/1/95 1/31/95 10,095
2/1/95 2/28/95 10,117 2/1/95 2/28/95 10,164
3/1/95 3/31/95 10,183 3/1/95 3/31/95 10,231
4/1/95 4/30/95 10,206 4/1/95 4/30/95 10,269
5/1/95 5/31/95 10,327 5/1/95 5/31/95 10,365
6/1/95 6/30/95 10,342 6/1/95 6/30/95 10,400
7/1/95 7/31/95 10,439 7/1/95 7/31/95 10,476
8/1/95 8/31/95 10,477 8/1/95 8/31/95 10,532
9/1/95 9/30/95 10,501 9/1/95 9/30/95 10,561
10/1/95 10/31/95 10,551 10/1/95 10/31/95 10,604
11/1/95 11/30/95 10,628 11/1/95 11/30/95 10,654
12/1/95 12/31/95 10,676 12/1/95 12/31/95 10,695
1/1/96 1/31/96 10,756 1/1/96 1/31/96 10,756
2/1/96 2/29/96 10,736 2/1/96 2/29/96 10,782
3/1/96 3/31/96 10,676 3/1/96 3/31/96 10,789
4/1/96 4/30/96 10,676 4/1/96 4/30/96 10,814
5/1/96 5/31/96 10,682 5/1/96 5/31/96 10,841
6/1/96 6/30/96 10,745 6/1/96 6/30/96 10,894
7/1/96 7/31/96 10,776 7/1/96 7/31/96 10,941
8/1/96 8/31/96 10,797 8/1/96 8/31/96 10,962
9/1/96 9/30/96 10,838 9/1/96 9/30/96 11,011
10/1/96 10/31/96 10,898 10/1/96 10/31/96 11,068
11/1/96 11/30/96 10,972 11/1/96 11/30/96 11,135
12/1/96 12/31/96 10,989 12/1/96 12/31/96 11,159
1/1/97 1/31/97 11,028 1/1/97 1/31/97 11,223
2/1/97 2/28/97 11,068 2/1/97 2/28/97 11,259
3/1/97 3/31/97 11,048 3/1/97 3/31/97 11,254
4/1/97 4/30/97 11,097 4/1/97 4/30/97 11,299
5/1/97 5/31/97 11,153 5/1/97 5/31/97 11,355
6/1/97 6/30/97 11,206 6/1/97 6/30/97 11,401
7/1/97 7/31/97 11,287 7/1/97 7/31/97 11,471
8/1/97 8/31/97 11,286 8/1/97 8/31/97 11,486
9/1/97 9/30/97 11,354 9/1/97 9/30/97 11,544
10/1/97 10/31/97 11,394 10/1/97 10/31/97 11,589
11/1/97 11/30/97 11,425 11/1/97 11/30/97 11,624
12/1/97 12/31/97 11,487 12/1/97 12/31/97 11,676
1/1/98 1/31/98 11,551 1/1/98 1/31/98 11,738
2/1/98 2/28/98 11,562 2/1/98 2/28/98 11,779
3/1/98 3/31/98 11,584 3/1/98 3/31/98 11,812
4/1/98 4/30/98 11,581 4/1/98 4/30/98 11,827
5/1/98 5/31/98 11,664 5/1/98 5/31/98 11,889
6/1/98 6/30/98 11,691 6/1/98 6/30/98 11,932
7/1/98 7/31/98 11,729 7/1/98 7/31/98 11,972
8/1/98 8/31/98 11,813 8/1/98 8/31/98 12,045
9/1/98 9/30/98 11,861 9/1/98 9/30/98 12,103
10/1/98 10/31/98 11,912 10/1/98 10/31/98 12,160
11/1/98 11/30/98 11,937 11/1/98 11/30/98 12,196
12/1/98 12/31/98 11,961 12/1/98 12/31/98 12,230
1/1/99 1/31/99 12,042 1/1/99 1/31/99 12,299
2/1/99 2/28/99 12,060 2/1/99 2/28/99 12,343
3/1/99 3/31/99 12,085 3/1/99 3/31/99 12,354
4/1/99 4/30/99 12,109 4/1/99 4/30/99 12,382
5/1/99 5/31/99 12,107 5/1/99 5/31/99 12,406
6/1/99 6/30/99 12,062 6/1/99 6/30/99 12,395
7/1/99 7/31/99 12,110 7/1/99 7/31/99 12,439
8/1/99 8/31/99 12,123 8/1/99 8/31/99 12,469
9/1/99 9/30/99 12,157 9/1/99 9/30/99 12,512
10/1/99 10/31/99 12,185 10/1/99 10/31/99 12,539
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $ 15.1
Number of Issues 29
Average Maturity 2.7 years
SEC Yield 3.92%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ----------------------------------------------
General Obligations (54%)
550,000 Chatham Co., GA
School District
5.50%, 8/1/01 $ 561.7
550,000 Conroe, TX Indt.
School Dist. (PSFG)
4.00%, 2/15/00 550.2
1,000,000 Dade County, FL
(FGIC)
12.00%, 10/1/01 1,138.7
500,000 Denver, CO City/Co.,
6.38%, 8/1/03, Pre-
refunded 8/1/01 522.5
300,000 District of Columbia
(MBIA),
6.60%, 6/1/03, Pre-
refunded 6/1/00 (b) 310.4
700,000 District of Columbia
(MBIA), 6.60%, 6/1/03
(b) 722.7
500,000 Howard County, MD,
4.70%, 8/15/00 503.6
220,000 Lewisville, TX Indt.
School Dist.,
6.25%, 8/15/04, Pre-
refunded 8/15/02 230.4
780,000 Lewisville, TX Indt.
School Dist. (PSFG),
6.25%, 8/15/04 811.2
500,000 Memphis, TN,
5.00%, 10/1/06 503.8
500,000 Mississippi State,
5.20%, 12/15/01 509.4
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- --------------------------------------------------
105,000 New York City, NY,
6.00%, ETM 8/1/00 $ 106.6
395,000 New York City, NY,
6.00%, 8/1/00 400.9
300,000 Ohio State, 5.00%, 2/1/03 304.1
500,000 Pennsylvania State
(AMBAC),
5.13%, 9/15/02 510.0
500,000 Snohomish Co., WA
School Dist. 002
(MBIA), 7.00%,
12/1/01 525.6
--------
General Obligations 8,211.8
Revenue (43%)
Airport (10%)
1,000,000 Denver, CO City/Co.
Airport (MBIA),
4.80%, 11/15/00 1,007.6
415,000 Denver, CO City/Co.
Airport,
7.75%, 11/15/21, Pre-
refunded 11/15/01 449.8
--------
Airport 1,457.4
</TABLE>
Annual Report 45
<PAGE>
[LOGO OF SHORT DURATION TAX EXEMPT FUND]
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ----------------------------------------------
Education (3%)
500,000 Youngstown, OH City
School Dist. (AMBAC),
5.00%, 6/15/00 $ 503.6
Health Care (14%)
500,000 MA State Health & Ed.
Fac. Auth. Partners
HC,
5.00%, 7/1/01 501.2
1,000,000 NY State Dormitory-
Mental Health Svcs.,
6.00%, 2/15/03 1,038.7
615,000 Phila., PA Hosp. &
Higher Ed.-- Temple
Univ.,
5.00%, 11/15/00 616.5
--------
Health Care 2,156.4
Resource Recovery (7%)
1,000,000 MA State Indust.
Finance Agency, Ogden
Haverhill,
4.20%, 12/1/99 1,000.0
Water & Sewer (9%)
200,000 Houston, TX Water and
Sewer System (MBIA),
5.25%, 12/1/00 202.4
600,000 Louisville, KY
Waterworks, 5.75%,
11/15/13 612.8
210,000 OH State Water
Development (AMBAC),
6.00%, 12/1/08, Pre-
refunded 12/1/04 222.6
290,000 OH State Water
Development (AMBAC),
6.00%, 12/1/08 304.1
--------
Water & Sewer 1,341.9
--------
Revenue 6,459.3
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
- ---------------------------------------------
Cash Equivalents (1%)
27,563 Dreyfus Tax Exempt
Cash Management Fund $ 27.6
100,000 Jackson Co., MS Port
Facility, Chevron,
3.35%, 6/1/23 100.0
---------
Cash Equivalents 127.6
---------
Total (Cost - $14,850.8) (a)
(98%) $14,798.7
=========
</TABLE>
Percentages indicated are based on net assets of $15,060,727.
(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 $ 33,830
Unrealized depreciation (85,877)
--------
Net unrealized depreciation $(52,047)
========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account.
AMBAC:Ambac Assurance Corporation
FGIC:Financial Guaranty Insurance Company
MBIA:MBIA Insurance Corp.
PSFG:Permanent School Fund Guarantee
See notes to financial statements.
46 Payden & Rygel Investment Group
<PAGE>
Unaudited
The objective of the Tax Exempt Bond Fund is to earn federal tax-free income by
investing in debt obligations which are exempt from federal income tax, consis-
tent with preservation of capital. The Fund generally invests in investment
grade debt securities, but may invest up to 25% of its assets in below invest-
ment grade securities.
Portfolio Composition
<TABLE>
- ------------------------------
<S> <C>
Insured Bonds 46%
General Obligations Bonds 26%
Revenue Bonds 17%
Pre-Refunded Bonds 10%
Cash Equivalent 1%
- ------------------------------
</TABLE>
Credit Quality
<TABLE>
- --------
<S> <C>
AAA 64%
AA 24%
A 7%
BBB 5%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
One Year, -0.81%
Three Year, 4.21%
Five Year, 5.82%
Since 12/31/93, 3.49%
. Tax Exempt $12,230
- -- Lehman Quality
Intermediate Index $13,119*
<TABLE>
<CAPTION>
Tax Exempt Bond Lehman Quality Intermediate Index
5431 Value lintmuni Value
----- -----
BDATE EDATE 10,000 10,000
<S> <C> <C> <C> <C> <C>
12/21/93 12/31/93 10,026 10,000
1/1/94 1/31/94 10,094 1/1/94 1/31/94 10,105
2/1/94 2/28/94 9,757 2/1/94 2/28/94 9,890
3/1/94 3/31/94 9,373 3/1/94 3/31/94 9,617
4/1/94 4/30/94 9,452 4/1/94 4/30/94 9,696
5/1/94 5/31/94 9,498 5/1/94 5/31/94 9,752
6/1/94 6/30/94 9,383 6/1/94 6/30/94 9,730
7/1/94 7/31/94 9,528 7/1/94 7/31/94 9,863
8/1/94 8/31/94 9,556 8/1/94 8/31/94 9,907
9/1/94 9/30/94 9,391 9/1/94 9/30/94 9,817
10/1/94 10/31/94 9,216 10/1/94 10/31/94 9,724
11/1/94 11/30/94 9,070 11/1/94 11/30/94 9,597
12/1/94 12/31/94 9,235 12/1/94 12/31/94 9,727
1/1/95 1/31/95 9,475 1/1/95 1/31/95 9,911
2/1/95 2/28/95 9,719 2/1/95 2/28/95 10,124
3/1/95 3/31/95 9,838 3/1/95 3/31/95 10,239
4/1/95 4/30/95 9,811 4/1/95 4/30/95 10,264
5/1/95 5/31/95 10,112 5/1/95 5/31/95 10,523
6/1/95 6/30/95 9,982 6/1/95 6/30/95 10,508
7/1/95 7/31/95 10,085 7/1/95 7/31/95 10,644
8/1/95 8/31/95 10,226 8/1/95 8/31/95 10,759
9/1/95 9/30/95 10,285 9/1/95 9/30/95 10,805
10/1/95 10/31/95 10,437 10/1/95 10/31/95 10,894
11/1/95 11/30/95 10,619 11/1/95 11/30/95 11,010
12/1/95 12/31/95 10,703 12/1/95 12/31/95 11,070
1/1/96 1/31/96 10,801 1/1/96 1/31/96 11,178
2/1/96 2/29/96 10,718 2/1/96 2/29/96 11,146
3/1/96 3/31/96 10,538 3/1/96 3/31/96 11,043
4/1/96 4/30/96 10,488 4/1/96 4/30/96 11,023
5/1/96 5/31/96 10,455 5/1/96 5/31/96 11,008
6/1/96 6/30/96 10,538 6/1/96 6/30/96 11,090
7/1/96 7/31/96 10,622 7/1/96 7/31/96 11,179
8/1/96 8/31/96 10,628 8/1/96 8/31/96 11,185
9/1/96 9/30/96 10,702 9/1/96 9/30/96 11,279
10/1/96 10/31/96 10,805 10/1/96 10/31/96 11,396
11/1/96 11/30/96 10,992 11/1/96 11/30/96 11,574
12/1/96 12/31/96 10,956 12/1/96 12/31/96 11,540
1/1/97 1/31/97 10,980 1/1/97 1/31/97 11,585
2/1/97 2/28/97 11,087 2/1/97 2/28/97 11,674
3/1/97 3/31/97 10,946 3/1/97 3/31/97 11,542
4/1/97 4/30/97 10,994 4/1/97 4/30/97 11,603
5/1/97 5/31/97 11,129 5/1/97 5/31/97 11,744
6/1/97 6/30/97 11,252 6/1/97 6/30/97 11,848
7/1/97 7/31/97 11,510 7/1/97 7/31/97 12,096
8/1/97 8/31/97 11,407 8/1/97 8/31/97 12,017
9/1/97 9/30/97 11,540 9/1/97 9/30/97 12,139
10/1/97 10/31/97 11,597 10/1/97 10/31/97 12,200
11/1/97 11/30/97 11,632 11/1/97 11/30/97 12,245
12/1/97 12/31/97 11,795 12/1/97 12/31/97 12,385
1/1/98 1/31/98 11,891 1/1/98 1/31/98 12,502
2/1/98 2/28/98 11,878 2/1/98 2/28/98 12,513
3/1/98 3/31/98 11,872 3/1/98 3/31/98 12,515
4/1/98 4/30/98 11,805 4/1/98 4/30/98 12,462
5/1/98 5/31/98 11,980 5/1/98 5/31/98 12,630
6/1/98 6/30/98 12,006 6/1/98 6/30/98 12,671
7/1/98 7/31/98 12,038 7/1/98 7/31/98 12,708
8/1/98 8/31/98 12,187 8/1/98 8/31/98 12,883
9/1/98 9/30/98 12,325 9/1/98 9/30/98 13,027
10/1/98 10/31/98 12,330 10/1/98 10/31/98 13,058
11/1/98 11/30/98 12,383 11/1/98 11/30/98 13,092
12/1/98 12/31/98 12,396 12/1/98 12/31/98 13,129
1/1/99 1/31/99 12,559 1/1/99 1/31/99 13,291
2/1/99 2/28/99 12,479 2/1/99 2/28/99 13,241
3/1/99 3/31/99 12,492 3/1/99 3/31/99 13,244
4/1/99 4/30/99 12,520 4/1/99 4/30/99 13,281
5/1/99 5/31/99 12,446 5/1/99 5/31/99 13,222
6/1/99 6/30/99 12,276 6/1/99 6/30/99 13,056
7/1/99 7/31/99 12,334 7/1/99 7/31/99 13,135
8/1/99 8/31/99 12,278 8/1/99 8/31/99 13,120
9/1/99 9/30/99 12,310 9/1/99 9/30/99 13,165
10/1/99 10/31/99 12,230 10/1/99 10/31/99 13,119
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
*From 1/1/94
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $46.5
Number of Issues 44
Average Maturity 8.9 years
SEC Yield 4.60%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
General Obligations (36%)
Limited (2%)
1,000,000 Port of Seattle, WA,
5.25%, 5/1/03 $ 1,017.5
Unlimited (34%)
1,500,000 Charleston County,
SC,
5.75%, 6/1/08 1,573.1
700,000 Clark Co., NV School
Dist. (MBIA), 5.88%,
6/15/13, Pre-refunded
6/15/05 742.9
1,000,000 FL Dept. of
Transportation -
Right of Way,
6.00%, 7/1/07 1,067.4
1,000,000 Fort Worth, TX
Indt. School Dist.
(PSFG),
0.00%, 2/15/06 728.8
5,000 Honolulu, HI City &
County,
5.00%, Escrowed to
Maturity 10/01/02 5.0
995,000 Honolulu, HI City &
County,
5.00%, 10/01/02 1,008.7
1,200,000 Kingsport, TN Public
Improvements, 5.60%,
9/1/03 1,240.5
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
500,000 Lake Orion, MI
Comm. School Dist.
(AMBAC),
5.80%, 5/1/15 $ 500.0
1,000,000 Mississippi State,
5.80%, 6/1/09 1,026.2
1,930,000 North Carolina State,
5.25%, 3/1/10 1,944.5
1,250,000 Pennsylvania State
(MBIA),
5.20%, 6/15/04 1,276.6
1,500,000 Pittsburgh, PA
(AMBAC),
5.50%, 9/1/14 1,479.4
1,000,000 Texas Public Finance
Authority, 5.38%,
10/1/03 1,030.0
1,000,000 Virginia State,
6.10%, 6/1/06 1,062.5
1,000,000 Washington State,
5.25%, 9/1/05 1,021.3
---------
Unlimited 15,706.9
---------
General Obligations 16,724.4
</TABLE>
Annual Report 47
<PAGE>
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Revenue (61%)
Airport (6%)
1,000,000 Los Angeles, CA,
Department of
Airports (FGIC),
5.50%, 5/15/07 $ 1,026.3
2,000,000 Philadelphia, PA
Auth. For Indust.
Develop. (FGIC),
5.00%, 7/1/08 1,952.5
---------
Airport 2,978.8
Education (9%)
1,000,000 Avon, IN Comm. School
Bldg. Corp. (AMBAC),
5.25%, 1/1/22 (b) 898.7
1,250,000 NY State Dorm Auth.
(AMBAC), 6.13%,
7/1/07, Pre-refunded
7/1/04 (b) 1,348.4
1,950,000 University of Toledo,
OH (FGIC) 5.75%,
12/1/08 2,018.3
---------
Education 4,265.4
Electric & Gas (6%)
300,000 City of Knoxville, TN
Gas System, 4.85%,
3/1/06 299.6
575,000 Indiana Municipal
Power
Agency (MBIA),
5.13%, 1/1/01 580.0
1,000,000 Long Island Power
Authority (AMBAC),
5.50%, 12/1/06 1,030.0
1,000,000 MA Municipal
Wholesale Electric
Co., 6.38%, 7/1/01 1,027.5
---------
Electric & Gas 2,937.1
Grant Revenue (2%)
1,000,000 MA State Grant
Anticipation
Notes (MBIA),
5.50%, 6/15/06 1,031.3
Health Care (2%)
800,000 CA Health Facilities,
Kaiser Permanente,
5.00%, 10/1/18 683.0
Housing (5%)
415,000 CA Housing Finance
Agency (MBIA), 5.20%,
8/1/26 416.0
740,000 ID Housing and
Finance Assoc.,
5.20%, 7/1/27 (b) 731.7
1,000,000 Virginia State
Housing
Dev. Authority,
6.30%, 7/1/11 (b) 1,018.7
170,000 Wisconsin Housing &
Economic Dev., 5.30%,
11/1/05 170.0
---------
Housing 2,336.4
Industrial Development (4%)
2,000,000 NY State Environ.
Facilities
Corp. (MBIA),
5.50%, 6/15/09 (b) 2,045.0
Resource Recovery (2%)
1,115,000 MA State Indust.
Finance Agency, Ogden
Haverhill,
4.20%, 12/1/99 1,115.0
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Special Revenue (6%)
1,380,000 Amer. Assn. Adv.
Science, DC (AMBAC),
6.00%, 1/1/08 $ 1,443.8
1,000,000 Convention Center
Auth., RI (MBIA)
6.40%, 5/15/05, Pre-
refunded 5/15/01 1,051.3
---------
Special Revenue 2,495.1
Transportation (11%)
1,025,000 Arapahoe Co., CO, E-
470,
6.90%, 8/31/15, Pre-
refunded 8/31/05 1,158.3
1,000,000 MA Bay Transportation
Authority, 5.60%,
3/1/08 1,032.5
1,500,000 NY Metro
Transportation
Authority (MBIA),
5.00%, 7/1/12 1,423.1
1,465,000 Port Authority NY &
NJ,
5.80%, 12/1/12 1,503.4
---------
Transportation 5,117.3
Water & Sewer (8%)
2,000,000 District of Columbia
Water & Sewer Auth.
(FSA),
5.50%, 10/1/17 (b) 1,912.5
600,000 Louisville, KY
Waterworks,
5.75%, 11/15/13 612.8
1,000,000 Ohio State Water
Department
Auth. (AMBAC)
5.70%, ETM 6/1/09 1,031.2
---------
Water & Sewer 3,556.5
---------
Revenue 28,560.9
Cash Equivalents (1%)
400,000 Ascension Parish, LA
Pollution Control,
Shell Oil,
3.60%, 9/1/23 400.0
45,679 Dreyfus Tax Exempt
Cash Management Fund 45.7
---------
Cash Equivalents 445.7
---------
Total (Cost - $46,018.2) (a)
(98%) $45,731.0
=========
</TABLE>
Percentages indicated are based on net assets of $46,452,403.
(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 $ 610,509
Unrealized depreciation (897,711)
---------
Net unrealized depreciation $(287,202)
=========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account as collateral.
AMBAC: AMBAC Indemnity Corporation
FGIC: Financial Guaranty Insurance Company
FSA: Financial Security Assurance Inc.
MBIA: MBIA Insurance Corp.
PSFG: Permanent School Fund Guarantee
See notes to financial statements.
48 Payden & Rygel Investment Group
<PAGE>
Unaudited
The objective of the California Municipal Income Fund is to earn federal and
California tax-free income by investing in debt obligations which are exempt
from federal and California income tax, consistent with preservation of capi-
tal. The Fund generally invests in investment grade debt securities, but may
invest up to 25% of its assets in below investment grade securities.
Portfolio Composition
<TABLE>
- ------------------------------
<S> <C>
Insured Bonds 60%
Revenue Bonds 10%
General Obligations Bonds 16%
Pre-Refunded Bonds 6%
Cash Equivalent 8%
- ------------------------------
</TABLE>
Credit Quality
<TABLE>
- --------
<S> <C>
AAA 62%
AA 14%
A 6%
BBB 18%
</TABLE>
Investment Performance
Average Annual Total Return
for the periods ended October 31, 1999
Since 12/17/98, -1.41%
. California Municipal Income Fund $9,878
- -- california Intermediate Index $9,883
<TABLE>
<CAPTION>
California Municipal Income Fund Cal Intermediate
<S> <C> <C>
12/17/98 10,000 10,000
12/31/98 10,010 10,000
1/31/99 10,122 10,132
2/28/99 10,064 10,092
3/31/99 10,095 10,120
4/30/99 10,106 10,115
5/31/99 10,043 10,061
6/30/99 9,926 9,919
7/31/99 9,976 10,012
8/31/99 9,930 9,976
9/30/99 9,967 10,040
10/31/99 9,878 9,883
</TABLE>
Note: Past performance does not predict future performance.
This information is not part of the audited financial statements.
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $28.7
Number of Issues 44
Average Maturity 8.7 years
SEC Yield 4.19%
</TABLE>
Schedule of Portfolio Investments - October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
General Obligations (20%)
Limited (4%)
1,000,000 Ventura Co. Tax and
Rev. Anticipation
Note,
4.00%, 7/6/00 $ 1,003.0
Unlimited (16%)
1,000,000 California State,
5.50%, 2/1/10 1,030.0
200,000 Escondido High School
Dist. (MBIA),
5.95%, 11/1/08 214.0
1,195,000 Fresno Unified School
District,
5.80%, 2/1/11 1,253.3
400,000 Los Angeles City
(FGIC),
5.25%, 9/1/09 407.0
550,000 Los Angeles City
(FGIC),
5.25%, 9/1/10 556.2
200,000 Mountain View Los
Altos
Uni. High School
Dist.,
5.00%, 5/1/05 204.3
1,000,000 Commonwealth of
Puerto Rico,
5.25%, 7/1/12 (b) 986.2
---------
Unlimited 4,651.0
---------
General Obligations 5,654.0
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
Revenue (48%)
Airport (5%)
200,000 Los Angeles Dept. of
Airports (FGIC),
5.50%, 5/15/07 $ 205.2
175,000 S.F. City/Co. Airport
(MBIA),
5.00%, 5/1/07 177.2
1,000,000 S.F. City/Co. Airport
(AMBAC),
6.50%, 05/01/13 (b) 1,057.5
---------
Airport 1,439.9
Education (3%)
700,000 Univ. of Calif.
(MBIA),
6.38%, 9/1/19, Pre-
refunded 9/1/02 753.4
Electric & Gas (19%)
1,000,000 Anaheim Public
Financing Auth.
(AMBAC),
4.63%, 10/1/27, Put
10/1/05 1,003.7
500,000 Los Angeles Dept. of
Water & Power,
6.00%, 8/15/32 (b) 501.2
300,000 Northern Calif. Power
Agency (AMBAC),
5.25%, 8/1/14 289.9
</TABLE>
Annual Report 49
<PAGE>
Schedule of Portfolio Investments - October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
155,000 Northern Calif. Power
Agency (MBIA),
5.60%, 7/1/06 $ 162.8
1,075,000 Puerto Rico Electric
Power Authority,
6.80%, 7/1/00 1,093.2
1,000,000 Puerto Rico Electric
Power Authority
(MBIA),
5.50%, 7/1/08 1,037.5
1,000,000 So. Calif. Public
Power Auth. (MBIA),
5.38%, 1/1/07 1,026.3
220,000 So. Calif. Public
Power Auth. (AMBAC),
6.00%, 7/1/07 237.9
---------
Electric & Gas 5,352.5
Health Care (5%)
1,000,000 CA Statewide
Community,
Internext Group,
5.38%, 4/1/17 876.2
200,000 CA Health Facilities,
Kaiser Permanente,
5.00%, 10/1/18 170.8
400,000 CA Health Facilities,
Sutter Health (MBIA)
5.00%, 8/15/18 357.0
---------
Health Care 1,404.0
Lease (10%)
1,000,000 Beverly Hills Pub.
Finance Auth. (MBIA),
5.13%, 6/1/18 912.5
400,000 Contra Costa Co.
Public Finance
(MBIA),
5.25%, 6/1/14 387.0
300,000 Los Angeles Co.
Capital
Asset Leasing Corp.,
4.00%, 6/1/00 300.3
400,000 Mountain View Cap.
Improv. Fin. (MBIA),
6.50%, 8/1/16 (b) 418.5
400,000 Orange Co. Cert. of
Participation
(AMBAC),
6.38%, 6/1/11 (b) 422.5
500,000 San Diego Co.
Certificate of
Participation,
5.50%, 2/1/13 472.5
---------
Lease 2,913.3
Special Revenue (3%)
1,055,000 Marin County
Emergency Radio
(AMBAC),
5.00%, 8/15/14 (b) 990.4
Transportation (1%)
400,000 Alameda Corridor
Trans. Auth. (MBIA)
5.13%, 10/1/16 (b) 373.0
Water & Sewer (2%)
200,000 East Bay Municipal
Utility Dist. (MBIA),
5.00%, 6/1/05 204.5
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
- ----------------------------------------------
<C> <S> <C>
400,000 Los Angeles
Wastewater System
(FGIC),
5.00%, 6/1/10 $ 396.0
---------
Water & Sewer 600.5
---------
Revenue 13,827.0
Sales Tax (4%)
1,000,000 Los Angeles Co.
Metro. Trans. Auth.
(FSA),
5.25%, 7/1/07 1,028.7
125,000 San Diego Co.
Regional Trans. Comm.
(FGIC),
5.25%, 4/1/06 128.8
---------
Sales Tax 1,157.5
Special Tax (19%)
1,215,000 Fontana Redev.
Agency, Jurupa Hills,
4.75%, 10/1/04 1,208.9
400,000 Inglewood Redev.
Agency (AMBAC),
5.25%, 5/1/16 381.5
1,500,000 Los Angeles Co.
Public Works
Financing Authority,
5.38%, 10/1/07 1,558.1
1,100,000 Orange Co. Teeter
Plan (AMBAC),
6.25%, 11/1/14 1,128.1
830,000 Paramount Redev.
Agency,
7.35%, 8/1/21, Pre-re
8/1/01 (b) 892.3
200,000 San Jose Redev.
Agency Tax Alloc.
(AMBAC),
4.75%, 8/1/03 203.0
---------
Special Tax 5,371.9
Cash Equivalents (8%)
4,916 Dreyfus State Tax
Exempt Fund 4.9
1,199,997 Irvine Ranch Water
District,
2.40%, 9/1/06 1,200.0
1,100,000 Orange County
Apartment Dev.
Revenue,
2.80%, 11/1/09 1,100.0
---------
Cash Equivalents 2,304.9
---------
Total (Cost - $29,397.0) (a)
(99%) $28,315.3
=========
</TABLE>
Percentages indicated are based on net assets of $28,689,532.
(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 $ 10,149
Unrealized depreciation (1,091,862)
-----------
Net unrealized depreciation $(1,081,713)
===========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account as collateral.
AMBAC: AMBAC Indemnity Corporation
FGIC: Financial Guaranty Insurance Company
FSA: Financial Security Assurance Inc.
MBIA: MBIA Insurance Corp.
See notes to financial statements.
50 Payden & Rygel Investment Group
<PAGE>
Statements of Cash Flows
Period ended October 31, 1999
(all numbers in thousands)
<TABLE>
<CAPTION>
U.S. Investment Total
Government GNMA Fund Quality Return
Fund (a) Bond Fund Fund
========== ========= ========== =========
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net investment income....... $ 3,967 $ 878 $ 13,466 $ 11,195
Adjustments to reconcile net
investment income to net
cash
provided by operating
activities:
Change in interest and
dividends receivable..... 155 (636) (121) (937)
Amortization/accretion.... (334) (400) 398 (1,761)
TBA commitment income..... (211) (28) (826) (608)
Change in other assets.... 275 (7) 460 164
Change in other
liabilities.............. (256) 63 (330) (127)
Purchase of investments... (157,118) (136,840) (226,082) (561,550)
Sale of investments....... 141,731 15,757 189,215 514,689
Payments for futures
variation................ (118) (6,160) (5,741)
Change in SWAP contracts.. (486) (679)
Change in options
contracts................ 574 (374)
Change in forward exchange
contracts................ (20)
Proceeds from paydowns.... 9,078 37,827 11,273 4,043
--------- --------- --------- ---------
Net Cash From Operating
Activities............. (2,831) (83,386) (18,619) (41,707)
--------- --------- --------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Payment for fund shares
redeemed................... (13,971) (751) (123,483) (86,943)
Proceeds from fund shares
sold....................... 13,687 120,338 147,883 143,188
Cash paid for dividends and
capital gains.............. (346) (682) (416)
Purchase of TBA
transactions............... (201,372) (52,318) (742,666) (549,965)
Sale of TBA transactions.... 204,833 16,117 737,567 535,843
--------- --------- --------- ---------
Net Cash From Financing
Activities............. 2,831 83,386 18,619 (41,707)
--------- --------- --------- ---------
CHANGE IN CASH........ -- -- -- --
Beginning Cash.............. -- -- -- --
--------- --------- --------- --------- ---
Ending Cash................. $ -- $ -- $ -- $ --
========= ========= ========= =========
Non Cash Financing...... $ 4,017 $ 764 $ 14,198 $ 11,645
</TABLE>
- -------
(a) The fund commenced operations on August 27, 1999.
See notes to financial statements.
Annual Report 51
<PAGE>
[STATEMENTS OF ASSETS & LIABILITIES]
October 31, 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*... $208,209,675 $483,494,032 $ 10,907,737 $ 8,520,760
Foreign cash............. 168,463 19,412
Cash..................... 530,000 20,000
Receivable for:
Interest and dividends.. 4,546,252 9,153,256 235,790 86,715
Investments sold........ 13,714,879 14,902,782 363,622 323,973
Fund shares sold........ 90,903 500
Futures and options
contracts.............. 378,532 30,474
Forward currency
contracts.............. 2,844,100 1,175,443 8,741
Paydowns................
Receivable from Advisor
(Note 3)................ 110
Other assets............. 19,468 40,465 4,167 2,541
------------ ------------ ------------ ------------
Total Assets.......... 229,502,837 509,784,825 11,531,816 8,973,314
------------ ------------ ------------ ------------
LIABILITIES:
Payable for:
Forward currency
contracts.............. 2,062,639 4,365,549
Investments purchased... 13,705,115 14,873,461 215,625 323,743
Fund shares redeemed.... 256 52,358
Futures and options
contracts..............
Swap contracts.......... 509,852
TBA sales commitments...
Distributions payable....
Accrued expenses:
Investment advisory fees
(Note 3)............... 49,137 125,018 5,270
Administration fees
(Note 3)............... 14,796 33,338 749 574
Other liabilities........ 77,605 138,195 26,975 24,809
------------ ------------ ------------ ------------
Total Liabilities..... 15,909,548 20,097,771 248,619 349,126
------------ ------------ ------------ ------------
NET ASSETS............ $213,593,289 $489,687,054 $ 11,283,197 $ 8,624,188
============ ============ ============ ============
NET ASSETS:
Paid in capital.......... 225,454,622 $508,470,800 $ 10,787,140 $ 7,220,456
Undistributed net
investment income....... 251,930 91,474
Distributions in excess
of net investment
income..................
Undistributed net
realized gains (losses)
from investments........ (4,823,495) 2,379,249 168,367 385,629
Net unrealized
appreciation
(depreciation) from:
Investments............. (3,910,334) (14,785,182) 236,216 372,375
Translation of assets
and liabilities in
foreign currencies..... (3,127,504) (6,629,743) 645,728
------------ ------------ ------------ ------------
NET ASSETS............ $213,593,289 $489,687,054 $ 11,283,197 $ 8,624,188
============ ============ ============ ============
Outstanding shares of
beneficial interest.... 22,261,567 49,681,914 1,074,053 740,112
============ ============ ============ ============
NET ASSET VALUE --
offering and
redemption price per
share.................. $ 9.59 $ 9.86 $ 10.51 $ 11.65
============ ============ ============ ============
- -------
* Investments, at cost... $216,477,421 $503,220,381 $ 10,671,521 $ 7,550,220
</TABLE>
See notes to financial statements.
52 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
European U.S.
Growth & European Growth & Growth Small Cap Small Cap
EuroDirect Income Aggressive Income Market Leaders Value Stock Growth
Fund Fund Growth Fund Fund Return Fund Fund Fund Stock Fund
============ ============ =========== ============ ============ ============ ============ ============
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9,609,736 $ 39,217,349 $10,223,020 $269,184,082 $ 80,912,879 $ 4,597,930 $ 14,512,762 $ 4,805,189
32,703 1,199,868 14,195
4,782 102,704 4,473 118,442 552,094 1,582 11,107 1,584
96,484 143,185 371,655
29,571 400 1,000
26,524 39,968 1,560,000 10,000 12,500
235
4,385 5,215 443 3,694
5,540 3,795 1,141 19,568 3,064 1,138 4,735 4,099
- ------------ ------------ ----------- ------------ ------------ ------------ ------------ ------------
9,683,670 40,563,684 10,344,763 269,351,663 83,028,437 4,602,093 14,681,789 5,198,721
- ------------ ------------ ----------- ------------ ------------ ------------ ------------ ------------
9
2,228,717 128,023 161,282 144,144 620,614
41,150 228,907
17,119 114,369 12,334 1,330
644 2,492 651 17,721 5,159 260 1,006 280
27,383 31,063 28,889 67,062 42,055 21,161 23,018 19,262
- ------------ ------------ ----------- ------------ ------------ ------------ ------------ ------------
28,027 2,320,541 157,572 428,059 59,548 182,703 169,498 640,156
- ------------ ------------ ----------- ------------ ------------ ------------ ------------ ------------
$ 9,655,643 $ 38,243,143 $10,187,191 $268,923,604 $ 82,968,889 $ 4,419,390 $ 14,512,291 $ 4,558,565
============ ============ =========== ============ ============ ============ ============ ============
$ 9,152,126 $ 37,141,877 $ 9,102,294 $199,139,882 $ 74,658,251 $ 4,189,778 $ 19,358,090 $ 4,468,063
204,533 27,960 34,800 61,737 11,588 73,568 12,248
485,904 (113,323) (236,251) 7,980,258 6,783,248 36,303 (3,098,905) (106,235)
(65,133) 2,051,177 1,391,268 61,768,664 1,465,653 181,721 (1,820,462) 184,489
82,746 (1,041,121) (98,080)
- ------------ ------------ ----------- ------------ ------------ ------------ ------------ ------------
$ 9,655,643 $ 38,243,143 $10,187,191 $268,923,604 $ 82,968,889 $ 4,419,390 $ 14,512,291 $ 4,558,565
============ ============ =========== ============ ============ ============ ============ ============
914,055 3,206,515 903,035 16,526,889 5,554,485 419,668 1,583,752 425,745
============ ============ =========== ============ ============ ============ ============ ============
$ 10.56 $ 11.93 $ 11.28 $ 16.27 $ 14.94 $ 10.53 $ 9.16 $ 10.71
============ ============ =========== ============ ============ ============ ============ ============
$ 9,579,041 $ 38,318,119 $ 8,929,618 $207,415,418 $ 81,313,361 $ 4,416,209 $ 16,302,884 $ 4,645,149
</TABLE>
See notes to financial statements.
Annual Report 53
<PAGE>
[STATEMENTS OF ASSETS & LIABILITIES CONTINUED]
October 31, 1999
<TABLE>
<CAPTION>
Bunker Hill Limited Short U.S.
Money Market Maturity Bond Government
Fund Fund Fund Fund
============ ============ ============ ============
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value*.. $ 88,218,615 $ 99,597,054 $ 59,041,557 $ 88,714,970
Foreign cash............
Cash....................
Receivable for:
Interest and
dividends............. 204,330 325,207 460,405 444,318
Investments sold.......
Fund shares sold....... 9,469 23,968 1,450
Futures and options
contracts.............
Forward currency
contracts.............
Paydowns............... 13,618
Receivable from Advisor
(Note 3)...............
Other assets............ 3,043 8,793 5,480 4,874
------------ ------------ ------------ ------------
Total Assets......... 88,435,457 99,955,022 59,521,060 89,165,612
------------ ------------ ------------ ------------
LIABILITIES:
Payable for:
Forward currency
contracts.............
Investments purchased.. 4,912,222 16,567,715
Fund shares redeemed... 15,013 2,074,509 5,770
Futures and options
contracts.............
Swap contracts.........
TBA sales commitments.. 2,877 8,544
Distributions payable... 401,237
Accrued expenses:
Investment advisory
fees (Note 3)......... 15,920 19,930 9,394 12,353
Administration fees
(Note 3).............. 6,529 6,757 3,695 4,913
Other liabilities....... 28,513 33,616 33,567 30,904
------------ ------------ ------------ ------------
Total Liabilities.... 467,212 2,134,812 4,961,755 16,630,199
------------ ------------ ------------ ------------
NET ASSETS........... $ 87,968,245 $ 97,820,210 $ 54,559,305 $ 72,535,413
============ ============ ============ ============
NET ASSETS:
Paid in capital......... $ 87,968,245 $ 98,398,251 $ 56,810,060 $ 74,101,699
Undistributed net
investment income...... 63,638 9,437 56,192
Distributions in excess
of net investment
income.................
Undistributed net
realized gains (losses)
from investments....... (491,237) (1,841,195) (388,547)
Net unrealized
appreciation
(depreciation) from:
Investments............ (150,442) (418,997) (1,233,931)
Translation of assets
and liabilities in
foreign currencies....
------------ ------------ ------------ ------------
NET ASSETS........... $ 87,968,245 $ 97,820,210 $ 54,559,305 $ 72,535,413
============ ============ ============ ============
Outstanding shares of
beneficial interest... 87,968,245 9,806,525 5,646,372 6,939,416
============ ============ ============ ============
NET ASSET VALUE --
offering and
redemption price per
share................. $ 1.00 $ 9.98 $ 9.66 $ 10.45
============ ============ ============ ============
- -------
* Investments, at cost.. $ 88,218,615 $ 99,747,496 $ 59,460,554 $ 89,948,901
</TABLE>
See notes to financial statements.
54 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Investment Total High Short Duration Tax Exempt California
GNMA Quality Bond Return Income Tax Exempt Bond Municipal
Fund Fund Fund Fund Fund Fund Income Fund
============ ============ ============ ============ ============== ============ ============
<S> <C> <C> <C> <C> <C> <C>
$157,135,391 $264,993,470 $307,501,006 $106,926,651 $ 14,798,704 $ 45,731,020 $ 28,315,272
636,263 2,985,592 3,100,769 2,487,141 247,172 768,247 433,567
16,072,376 14,400,079 27,053,405
8,000 6,641 50,457
62,312
16,077
6,680 7,084
7,893 5,889 3,829 3,525 4,492 148
------------ ------------ ------------ ------------ ------------ ------------ ------------
173,858,710 282,403,111 337,730,022 109,417,621 15,106,942 46,503,759 28,748,987
------------ ------------ ------------ ------------ ------------ ------------ ------------
54,430 38,939
52,588,333 86,819,622 107,024,356
20,000
122,965
46,278 54,474 78,240
65,721 47,053 32,391 11,339 11,855
7,965 13,162 15,226 7,404 1,024 3,177 1,955
55,295 99,317 70,235 41,547 25,191 36,840 45,645
------------ ------------ ------------ ------------ ------------ ------------ ------------
52,697,871 87,175,261 107,289,540 120,281 46,215 51,356 59,455
------------ ------------ ------------ ------------ ------------ ------------ ------------
$121,160,839 $195,227,850 $230,440,482 $109,297,340 $ 15,060,727 $ 46,452,403 $ 28,689,532
============ ============ ============ ============ ============ ============ ============
$120,358,820 $207,625,428 $241,540,439 $118,329,549 $ 15,075,248 $ 47,785,857 $ 29,905,700
114,088 255,501 367,411 1,027,893 5,871 27,472 13,314
10,138 (6,657,154) (4,145,612) (4,030,904) 31,655 (1,073,724) (147,769)
677,793 (5,995,925) (7,267,326) (5,989,941) (52,047) (287,202) (1,081,713)
(54,430) (39,257)
------------ ------------ ------------ ------------ ------------ ------------ ------------
$121,160,839 $195,227,850 $230,440,482 $109,297,340 $ 15,060,727 $ 46,452,403 $ 28,689,532
============ ============ ============ ============ ============ ============ ============
11,988,106 20,682,385 23,824,550 11,483,158 1,526,147 4,924,057 2,981,497
============ ============ ============ ============ ============ ============ ============
$ 10.11 $ 9.44 $ 9.67 $ 9.52 $ 9.87 $ 9.43 $ 9.62
============ ============ ============ ============ ============ ============ ============
$156,457,598 $270,915,533 $314,690,351 $112,916,592 $ 14,850,751 $ 46,018,222 $ 29,396,985
</TABLE>
See notes to financial statements.
Annual Report 55
<PAGE>
[STATEMENTS OF OPERATIONS]
Period ended October 31, 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........... $10,649,515 $ 25,898,960 $ 921,543 $ 184,156
Dividend income........... 68,542
Foreign tax withholdings.. (4,422)
----------- ------------ ----------- -----------
Investment Income......... 10,649,515 25,898,960 921,543 248,276
----------- ------------ ----------- -----------
EXPENSES:
Investment advisory fees
(Note 3)................. 725,931 1,564,341 38,583 40,161
Administration fees (Note
3)....................... 152,625 329,411 5,510 5,102
Custodian fees............ 107,588 164,872 12,874 13,264
Transfer agent fees....... 38,905 81,505 10,587 11,951
Registration and filing
fees..................... 8,689 1,040 13,244 9,534
Professional fees......... 3,229 7,165 110 129
Trustees' fees and
expenses................. 15,183 32,651 601 548
Printing costs............ 37,995 89,266 2,647 1,772
Organization expenses
(Note 2)................. 602 3,179 1,354
Legal fees................ 6,266 13,614 254 2,544
Accounting fees........... 77,616 160,725 7,855 8,391
Insurance................. 12,921 23,225 467
Audit fees................ 25,648 40,024 19,939 24,057
Other expenses............ 10,748 41,384 670 5,992
Expenses previously
deferred (Note 3)........ 1,033
Waived advisory fee (Note
3)....................... (22,213)
Expense subsidy (Note 3).. (15,973) (25,521) (69,014)
----------- ------------ ----------- -----------
Net Expenses............. 1,209,006 2,549,223 68,319 56,252
----------- ------------ ----------- -----------
Net Investment Income... 9,440,509 23,349,737 853,224 192,024
----------- ------------ ----------- -----------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains
(losses) from:
Investments.............. 483,620 7,252,750 144,168 285,604
Foreign currency
transactions............ 5,716,555 6,802,198 (165,620)
Futures, options and swap
contracts............... (606,909) 24,199 307,217
Change in net unrealized
appreciation
(depreciation) from:
Investments.............. (6,261,575) (31,975,639) 236,216 (198,642)
Translation of assets and
liabilities in foreign
currencies.............. (3,243,121) (2,449,927) 719,736
Futures, options and swap
contracts............... 525,433 7,355
----------- ------------ ----------- -----------
Net Realized and
Unrealized Gains
(Losses)............... (3,304,521) (20,452,094) 404,583 955,650
----------- ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM
OPERATIONS............... $ 6,135,988 $ 2,897,643 $ 1,257,807 $ 1,147,674
=========== ============ =========== ===========
</TABLE>
- -------
(a)The Fund commenced operations on December 17, 1998.
(b)The Fund commenced operations on June 17, 1999.
(c)The Fund commenced operations on August 27, 1999.
See notes to financial statements.
56 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
European European Growth & Market U.S. Growth Small Cap Small Cap
EuroDirect Growth & Aggressive Income Return Leaders Value Stock Growth Stock
Fund (a) Income Fund Growth Fund (b) Fund Fund Fund (b) Fund Fund
=========== =========== =============== =========== =========== =========== =========== ============
<S> <C> <C> <C> <C> <C> <C> <C>
$ 297,278 $ 84,669 $ 20,300 $ 308,057 $ 3,553,591 $ 6,458 $ 211,929 $ 20,796
39,875 816,555 19,851 5,018,882 14,757 182,285 14,279
(2,482) (73,711) (1,822) (446) (160)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
334,671 827,513 38,329 5,326,939 3,553,591 21,215 393,768 34,915
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
53,227 192,513 24,421 1,369,985 170,628 7,222 126,656 17,683
5,231 24,331 2,129 173,294 39,051 843 13,188 1,897
13,971 33,238 8,788 21,598 12,425 1,878 6,948 5,559
10,747 30,557 5,564 186,076 21,108 4,794 14,203 10,964
13,010 9,877 2,307 8,417 13,660 1,062 8,535 10,080
108 498 84 4,102 819 80 337 42
564 2,374 133 18,965 3,952 112 1,535 179
1,838 15,368 468 50,213 9,763 270 3,591 437
3,179 1,653 17,864 3,816 1,347 17,864 2,212 2,212
258 13,002 44 7,380 1,583 26 644 74
7,801 17,328 3,062 88,868 24,092 2,716 12,616 6,817
1,256 11,388 1,704 949 172
19,935 21,594 20,596 22,715 18,770 17,478 18,326 17,951
1,124 7,524 2,310 10,403 5,525 886 1,442 895
5,390 77,512
(32,273)
(34,578) (24,924) (58,770) (50,930) (45,604) (42,354) (51,578)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
69,532 346,189 29,000 2,054,732 273,497 9,627 168,828 23,384
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
265,139 481,324 9,329 3,272,207 3,280,094 11,588 224,940 11,531
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(7,495) (527,599) (236,251) 7,980,305 (1,008,806) 36,303 (648,816) 44,449
(400,025) (20,372) 18,631
628,285 492,385 11,795,694 864,042 5,754
(52,057) 6,752,588 1,391,268 29,259,458 6,951 181,721 843,620 385,730
82,746 (3,801,339) (98,080)
(13,076) 114,939 (2,140,949) (472,253) 24,449
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
238,378 3,010,602 1,075,568 37,239,763 8,652,890 218,024 586,593 460,382
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 503,517 $ 3,491,926 $ 1,084,897 $40,511,970 $11,932,984 $ 229,612 $ 811,533 $ 471,913
=========== =========== =========== =========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
Annual Report 57
<PAGE>
[STATEMENTS OF OPERATIONS CONTINUED]
Period ended October 31, 1999
<TABLE>
<CAPTION>
Bunker Hill Limited Short U.S.
Money Market Maturity Bond Government
Fund Fund Fund Fund
============ ============ ============ ============
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 2,702,595 $ 5,768,702 $ 5,406,623 $ 4,260,746
Dividend income.........
Foreign tax
withholdings...........
------------ ------------ ------------ ------------
Investment Income...... 2,702,595 5,768,702 5,406,623 4,260,746
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees
(Note 3)............... 79,021 272,105 250,179 205,918
Administration fees
(Note 3)............... 33,955 61,484 55,860 46,546
Custodian fees.......... 8,651 12,711 12,321 10,139
Transfer agent fees..... 24,938 24,964 21,453 20,030
Registration and filing
fees................... 18,668 9,057 5,266 5,617
Professional fees....... 430 1,447 1,053 996
Trustees' fees and
expenses............... 2,483 5,118 7,282 4,626
Printing costs.......... 5,961 13,894 14,150 11,829
Organization expenses
(Note 2)............... 281
Legal fees.............. 1,308 2,403 2,210 2,042
Accounting fees......... 19,783 33,791 33,619 27,506
Insurance............... 752 7,227 4,931 3,292
Audit fees.............. 18,419 20,243 19,686 19,259
Other expenses.......... 2,013 19,193 13,769 10,924
Expenses previously
deferred (Note 3)...... 4,116
Waived advisory fee
(Note 3)...............
Expense subsidy (Note
3)..................... (62,873) (113,842) (85,010) (74,831)
------------ ------------ ------------ ------------
Net Expenses........... 157,906 369,795 356,769 293,893
------------ ------------ ------------ ------------
Net Investment
Income............... 2,544,689 5,398,907 5,049,854 3,966,853
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains
(losses) from:
Investments............ (359,163) (1,022,549) (297,868)
Foreign currency
transactions..........
Futures, options and
swap contracts........ (432,321) (116,044)
Change in net unrealized
appreciation
(depreciation) from:
Investments............ (514,035) (1,329,200) (2,284,755)
Translation of assets
and liabilities in
foreign currencies....
Futures, options and
swap contracts........ 128,100 25,463
------------ ------------ ------------ ------------
Net Realized and
Unrealized Gains
(Losses)............. -- (873,198) (2,655,970) (2,673,204)
------------ ------------ ------------ ------------
CHANGE IN NET ASSETS
RESULTING FROM
OPERATIONS............. $ 2,544,689 $ 4,525,709 $ 2,393,884 $ 1,293,649
============ ============ ============ ============
</TABLE>
- -------
(a) The Fund commenced operations on December 17, 1998.
(b) The Fund commenced operations on June 17, 1999.
(c) The Fund commenced operations on August 27, 1999.
See notes to financial statements.
58 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Investment Total High Short Duration California
GNMA Quality Bond Return Income Tax Exempt Tax Exempt Municipal
Fund (c) Fund Fund Fund Fund Bond Fund Income Fund (a)
============ ============ =========== ============ ============== ============ ===============
<S> <C> <C> <C> <C> <C> <C>
$ 929,057 $14,574,792 $12,196,277 $ 9,415,799 $ 656,134 $ 2,833,959 $ 813,834
------------ ----------- ----------- ------------ ----------- ------------ ------------
929,057 14,574,792 12,196,277 9,415,799 656,134 2,833,959 813,834
------------ ----------- ----------- ------------ ----------- ------------ ------------
39,460 621,792 561,800 385,590 50,966 195,513 65,908
11,690 139,777 127,499 69,769 10,064 38,239 13,321
1,740 24,644 25,032 11,263 4,562 7,800 5,212
6,932 37,696 34,931 24,653 12,894 18,255 12,302
19,819 9,988 20,771 747 10,486 10,694 8,914
149 3,450 2,284 1,230 257 970 219
699 14,600 12,655 6,774 1,088 4,099 1,495
6,559 36,564 32,829 17,692 2,600 10,359 4,039
21,403 1,085 208 3,179
319 6,070 5,272 2,961 457 1,880 483
6,093 72,405 64,850 38,585 10,827 24,950 11,247
6,194 3,227 2,197 1,004 3,077
18,514 21,260 20,699 19,509 23,741 19,136 17,004
821 23,096 9,758 4,106 6,806 15,547 1,266
91,608 78,572 24,969 14,445
(35,206)
(82,987) (56,092) (45,184) (20,919)
------------ ----------- ----------- ------------ ----------- ------------ ------------
51,211 1,109,144 1,001,264 610,253 79,660 305,335 102,909
------------ ----------- ----------- ------------ ----------- ------------ ------------
877,846 13,465,648 11,195,013 8,805,546 576,474 2,528,624 710,925
------------ ----------- ----------- ------------ ----------- ------------ ------------
10,138 (4,381,400) (1,447,884) (2,972,935) 31,667 173,257 (128,070)
(62,371)
(2,893,397) (825,345) 9,019 65,285 (19,699)
677,793 (8,564,084) (7,290,859) (1,091,563) (258,573) (3,114,694) (1,081,713)
(54,430) (39,257)
32,379 (1,521,236)
------------ ----------- ----------- ------------ ----------- ------------ ------------
687,931 (15,806,502) (11,202,125) (4,094,736) (226,906) (2,876,152) (1,229,482)
------------ ----------- ----------- ------------ ----------- ------------ ------------
$ 1,565,777 $(2,340,854) $ (7,112) $ 4,710,810 $ 349,568 $ (347,528) $ (518,557)
============ =========== =========== ============ =========== ============ ============
</TABLE>
See notes to financial statements.
Annual Report 59
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Global Short Bond Fund Global Fixed Income Fund
========================== ==========================
Year ended Year ended Year ended Year ended
October 31, October 31, October 31, October 31,
1999 1998 1999 1998
============ ============ ============ ============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 9,440,509 $ 11,869,557 $ 23,349,737 $ 26,635,762
Net realized gains
(losses) on
investments............ 6,200,175 7,398,243 13,448,039 20,449,089
Change in net unrealized
appreciation
(depreciation)......... (9,504,696) 1,271,604 (33,900,133) 11,221,797
------------ ------------ ------------ ------------
Change in Net Assets
Resulting from
Operations............ 6,135,988 20,539,404 2,897,643 58,306,648
------------ ------------ ------------ ------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (22,986,447) (16,746,627) (39,581,035) (20,851,285)
In excess of net
investment income......
Net realized gains from
investments............ (16,164,203)
In excess of net
realized gains from
investments............
Return of capital....... (452,844)
------------ ------------ ------------ ------------
Change in Net Assets
from Distributions to
Shareholders.......... (23,439,291) (16,746,627) (55,745,238) (20,851,285)
------------ ------------ ------------ ------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 44,614,473 160,907,104 156,632,130 220,982,932
Reinvestment of
distributions.......... 21,735,804 15,667,434 46,656,480 17,044,782
Cost of fund shares
redeemed............... (87,062,835) (149,623,338) (185,403,513) (286,477,747)
------------ ------------ ------------ ------------
Change in Net Assets
from Capital
Transactions.......... (20,712,558) 26,951,200 17,885,097 (48,450,033)
------------ ------------ ------------ ------------
Total Change in Net
Assets............... (38,015,861) 30,743,977 (34,962,498) (10,994,670)
NET ASSETS:
Beginning of period..... 251,609,150 220,865,173 524,649,552 535,644,222
------------ ------------ ------------ ------------
End of period........... $213,593,289 $251,609,150 $489,687,054 $524,649,552
============ ============ ============ ============
Undistributed net
investment income...... $ -- $ 7,098,183 $ 251,930 $ 1,450,438
============ ============ ============ ============
FUND SHARES OF
BENEFICIAL INTEREST:
Outstanding shares at
beginning of period.... 24,412,663 21,726,743 48,100,341 52,744,225
------------ ------------ ------------ ------------
Shares sold............. 4,499,156 15,741,129 15,150,934 20,993,302
Shares issued in
reinvestment of
distributions.......... 2,203,115 1,541,064 4,507,472 1,635,751
Shares redeemed......... (8,853,367) (14,596,273) (18,076,833) (27,272,937)
------------ ------------ ------------ ------------
Change in shares
outstanding............ (2,151,096) 2,685,920 1,581,573 (4,643,884)
------------ ------------ ------------ ------------
Outstanding shares at
end of period.......... 22,261,567 24,412,663 49,681,914 48,100,341
============ ============ ============ ============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ 386,165,184 461,732,737
Sale of investments
(excluding
government)............ 369,658,918 443,987,983
Purchase of government
securities............. 40,569,258 66,478,289
Sale of government
securities............. 69,448,100 190,578,117
</TABLE>
- -------
(a) The Fund commenced operations on August 27, 1999.
(b) The Fund commenced operations on June 17, 1999.
(c) The Fund commenced operations on December 17, 1998.
(d) The Fund commenced operations on December 30, 1997.
(e) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
60 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Emerging Markets EuroDirect European Growth & European Aggressive
Bond Fund Global Balanced Fund Fund Income Fund Growth Fund
================ ========================= ============ ========================== ===================
Period ended Year ended Year ended Period ended Year ended Year ended Period ended
October 31, October 31, October 31, October 31, October 31, October 31, October 31,
1999 (c) 1999 1998 1999 (c) 1999 1998 1999 (b)
================ ============ =========== ============ ============ ============ ===================
<S> <C> <C> <C> <C> <C> <C>
$ 853,224 $ 192,024 $ 287,728 $ 265,139 $ 481,324 $ 755,076 $ 9,329
168,367 427,201 476,456 220,765 (55,586) 1,129,914 (217,620)
236,216 528,449 94,972 17,613 3,066,188 (2,047,980) 1,293,188
------------ ------------ ----------- ----------- ------------ ------------ ------------
1,257,807 1,147,674 859,156 503,517 3,491,926 (162,990) 1,084,897
------------ ------------ ----------- ----------- ------------ ------------ ------------
(761,750) (152,943) (256,419) (571,208)
(582,309) (490,802) (1,354,410) (30,729)
------------ ------------ ----------- ----------- ------------ ------------ ------------
(761,750) (582,309) (643,745) -- (1,610,829) (601,937) --
------------ ------------ ----------- ----------- ------------ ------------ ------------
10,085,455 988,788 1,054,022 11,795,628 58,376,985 35,828,900 9,932,243
761,750 581,773 630,824 1,527,824 532,203
(60,065) (589,586) (5,134,779) (2,643,502) (63,071,435) (9,675,876) (829,949)
------------ ------------ ----------- ----------- ------------ ------------ ------------
10,787,140 980,975 (3,449,933) 9,152,126 (3,166,626) 26,685,227 9,102,294
------------ ------------ ----------- ----------- ------------ ------------ ------------
11,283,197 1,546,340 (3,234,522) 9,655,643 (1,285,529) 25,920,300 10,187,191
-- 7,077,848 10,312,370 -- 39,528,672 13,608,372 --
------------ ------------ ----------- ----------- ------------ ------------ ------------
$ 11,283,197 $ 8,624,188 $ 7,077,848 $ 9,655,643 $ 38,243,143 $ 39,528,672 $ 10,187,191
============ ============ =========== =========== ============ ============ ============
$ 91,474 -- $ 15,312 -- $ 204,533 $ -- $ 27,960
============ ============ =========== =========== ============ ============ ============
-- 652,676 955,640 -- 3,447,862 1,335,240 --
------------ ------------ ----------- ----------- ------------ ------------ ------------
1,005,416 86,968 97,127 1,168,782 4,973,234 2,924,624 980,755
74,371 52,543 60,560 132,937 46,180
(5,734) (52,075) (460,651) (254,727) (5,347,518) (858,182) (77,720)
------------ ------------ ----------- ----------- ------------ ------------ ------------
1,074,053 87,436 (302,964) 914,055 (241,347) 2,112,622 903,035
------------ ------------ ----------- ----------- ------------ ------------ ------------
1,074,053 740,112 652,676 914,055 3,206,515 3,447,862 903,035
============ ============ =========== =========== ============ ============ ============
27,858,300 4,360,630 6,873,641 30,993,627 9,508,880
17,588,562 4,029,895 647,842 38,541,049 525,766
324,422
</TABLE>
See notes to financial statements.
Annual Report 61
<PAGE>
[STATEMENTS OF CHANGES IN NET ASSETS CONTINUED]
<TABLE>
<CAPTION>
Growth & Income Fund Market Return Fund
========================== ==========================
Year ended Year ended Year ended Year ended
October 31, October 31, October 31, October 31,
1999 1998 1999 1998
============ ============ ============ ============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 3,272,207 $ 3,487,455 $ 3,280,094 $ 1,980,105
Net realized gains
(losses) on
investments............ 7,980,305 5,750,473 10,786,888 (1,974,047)
Change in net unrealized
appreciation
(depreciation)......... 29,259,458 18,949,308 (2,133,998) 4,014,660
------------ ------------ ------------ ------------
Change in Net Assets
Resulting from
Operations............ 40,511,970 28,187,236 11,932,984 4,020,718
------------ ------------ ------------ ------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (3,240,475) (3,884,882) (3,271,760) (1,919,021)
In excess of net
investment income......
Net realized gains from
investments............ (5,742,181) (21,503) (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.......... (8,982,656) (3,906,385) (5,769,017) (3,660,671)
------------ ------------ ------------ ------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 57,522,734 126,514,631 46,316,116 29,587,439
Reinvestment of
distributions.......... 8,559,259 3,669,635 5,550,528 3,395,111
Cost of fund shares
redeemed............... (79,240,632) (54,856,053) (18,451,807) (10,148,009)
------------ ------------ ------------ ------------
Change in Net Assets
from Capital
Transactions.......... (13,158,639) 75,328,213 33,414,837 22,834,541
------------ ------------ ------------ ------------
Total Change in Net
Assets.............. 18,370,675 99,609,064 39,578,804 23,194,588
NET ASSETS:
Beginning of period..... 250,552,929 150,943,865 43,390,085 20,195,497
------------ ------------ ------------ ------------
End of period........... $268,923,604 $250,552,929 $ 82,968,889 $ 43,390,085
============ ============ ============ ============
Undistributed net
investment income...... $ 34,800 $ 3,068 $ 61,737 $ 56,882
============ ============ ============ ============
FUND SHARES OF
BENEFICIAL INTEREST:
Outstanding shares at
beginning of period.... 17,334,643 11,822,224 3,260,654 1,577,496
------------ ------------ ------------ ------------
Shares sold............. 3,609,543 9,096,249 3,171,771 2,185,139
Shares issued in
reinvestment of
distributions.......... 556,793 261,501 387,981 267,883
Shares redeemed......... (4,974,090) (3,845,331) (1,265,921) (769,864)
------------ ------------ ------------ ------------
Change in shares
outstanding............ (807,754) 5,512,419 2,293,831 1,683,158
------------ ------------ ------------ ------------
Outstanding shares at
end of period.......... 16,526,889 17,334,643 5,554,485 3,260,654
============ ============ ============ ============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ 13,893,614 56,405,049
Sale of investments
(excluding
government)............ 21,065,291 30,310,605
Purchase of government
securities............. 33,382,656
Sale of government
securities............. 25,000,000
</TABLE>
- -------
(a)The Fund commenced operations on August 27, 1999.
(b)The Fund commenced operations on June 17, 1999.
(c)The Fund commenced operations on December 17, 1998.
(d)The Fund commenced operations on December 30, 1997.
(e)The Fund commenced operations on December 17, 1997.
See notes to financial statements.
62 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
U.S. Growth Small Cap Value Stock Small Cap Growth Stock Bunker Hill Money Market
Leaders Fund Fund Fund Fund
============ ========================== ========================== ===========================
Period ended Year ended Period ended Year ended Period ended Year ended Period ended
October 31, October 31, October 31, October 31, October 31, October 31, October 31,
1999 (b) 1999 1998 (d) 1999 1998 (d) 1999 1998 (e)
============ ============ ============ ============ ============ ============= ============
<S> <C> <C> <C> <C> <C> <C>
$ 11,588 $ 224,940 $ 170,314 $ 11,531 $ 10,073 $ 2,544,689 $ 876,643
36,303 215,226 (3,314,131) 50,203 (156,438)
181,721 371,367 (2,191,829) 410,179 (225,690)
------------ ------------ ------------ ------------ ------------ ------------- ------------
229,612 811,533 (5,335,646) 471,913 (372,055) 2,544,689 876,643
------------ ------------ ------------ ------------ ------------ ------------- ------------
(224,942) (96,744) (9,356) (2,544,689) (876,643)
------------ ------------ ------------ ------------ ------------ ------------- ------------
-- (224,942) (96,744) -- (9,356) (2,544,689) (876,643)
------------ ------------ ------------ ------------ ------------ ------------- ------------
4,191,588 3,253,539 29,506,755 2,481,388 3,411,739 513,712,895 122,840,129
188,025 76,937 7,540 2,008,530 525,885
(1,810) (13,059,780) (607,386) (779,030) (653,574) (454,208,380) (96,910,814)
------------ ------------ ------------ ------------ ------------ ------------- ------------
4,189,778 (9,618,216) 28,976,306 1,702,358 2,765,705 61,513,045 26,455,200
------------ ------------ ------------ ------------ ------------ ------------- ------------
4,419,390 (9,031,625) 23,543,916 2,174,271 2,384,294 61,513,045 26,455,200
-- 23,543,916 -- 2,384,294 -- 26,455,200 --
------------ ------------ ------------ ------------ ------------ ------------- ------------
$ 4,419,390 $ 14,512,291 $ 23,543,916 $ 4,558,565 $ 2,384,294 $ 87,968,245 $ 26,455,200
============ ============ ============ ============ ============ ============= ============
$ 11,588 $ 73,568 $ 73,570 $ 12,248 $ 717 $ -- $ --
============ ============ ============ ============ ============ ============= ============
-- 2,536,685 -- 261,661 -- 26,455,200 --
------------ ------------ ------------ ------------ ------------ ------------- ------------
419,843 331,751 2,597,818 240,709 339,066 513,712,895 122,840,129
18,280 6,925 726 2,008,530 525,885
(175) (1,302,964) (68,058) (76,625) (78,131) (454,208,380) (96,910,814)
------------ ------------ ------------ ------------ ------------ ------------- ------------
419,668 (952,933) 2,536,685 164,084 261,661 61,513,045 26,455,200
------------ ------------ ------------ ------------ ------------ ------------- ------------
419,668 1,583,752 2,536,685 425,745 261,661 87,968,245 26,455,200
============ ============ ============ ============ ============ ============= ============
6,788,351 14,937,275 3,560,610
2,860,239 19,460,646 2,972,952
</TABLE>
See notes to financial statements.
Annual Report 63
<PAGE>
[STATEMENTS OF CHANGES IN NET ASSETS CONTINUED]
<TABLE>
<CAPTION>
Limited Maturity Fund Short Bond Fund
============================ ===========================
Year ended Year ended Year ended Year ended
October 31, October 31, October 31, October 31,
1999 1998 1999 1998
============= ============= ============ =============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 5,398,907 $ 8,048,187 $ 5,049,854 $ 6,160,534
Net realized gains
(losses) on
investments............ (359,163) (30,669) (1,454,870) (179,639)
Change in net unrealized
appreciation
(depreciation)......... (514,035) 191,381 (1,201,100) 587,761
------------- ------------- ------------ -------------
Change in Net Assets
Resulting from
Operations............ 4,525,709 8,208,899 2,393,884 6,568,656
------------- ------------- ------------ -------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (5,441,361) (7,957,063) (5,011,359) (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.......... (5,441,361) (7,957,063) (5,011,359) (6,063,434)
------------- ------------- ------------ -------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 144,494,836 204,353,480 31,467,956 284,120,843
Reinvestment of
distributions.......... 5,469,745 7,326,830 5,002,779 5,057,374
Cost of fund shares
redeemed............... (168,270,513) (247,319,408) (87,954,462) (275,278,590)
------------- ------------- ------------ -------------
Change in Net Assets
from Capital
Transactions.......... (18,305,932) (35,639,098) (51,483,727) 13,899,627
------------- ------------- ------------ -------------
Total Change in Net
Assets............... (19,221,584) (35,387,262) (54,101,202) 14,404,849
NET ASSETS:
Beginning of period..... 117,041,794 152,429,056 108,660,507 94,255,658
------------- ------------- ------------ -------------
End of period........... $ 97,820,210 $ 117,041,794 $ 54,559,305 $ 108,660,507
============= ============= ============ =============
Undistributed net
investment income...... $ 63,638 $ 137,755 $ 9,437 $ 3,435
============= ============= ============ =============
FUND SHARES OF
BENEFICIAL INTEREST:
Outstanding shares at
beginning of period.... 11,608,466 15,153,628 10,927,660 9,499,849
------------- ------------- ------------ -------------
Shares sold............. 14,388,934 20,275,080 3,190,817 28,694,879
Shares issued in
reinvestment of
distributions.......... 545,762 728,544 511,160 511,364
Shares redeemed......... (16,736,637) (24,548,786) (8,983,265) (27,778,432)
------------- ------------- ------------ -------------
Change in shares
outstanding............ (1,801,941) (3,545,162) (5,281,288) 1,427,811
------------- ------------- ------------ -------------
Outstanding shares at
end of period.......... 9,806,525 11,608,466 5,646,372 10,927,660
============= ============= ============ =============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ 24,919,913 116,917,908
Sale of investments
(excluding
government)............ 53,939,131 235,136,662
Purchase of government
securities............. 29,367,266 218,462,672
Sale of government
securities............. 22,048,977 151,446,797
</TABLE>
- -------
(a) The Fund commenced operations on August 27, 1999.
(b) The Fund commenced operations on June 17, 1999.
(c) The Fund commenced operations on December 17, 1998.
(d) The Fund commenced operations on December 30, 1997.
(e) The Fund commenced operations on December 17, 1997.
See notes to financial statements.
64 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Investment Quality Bond
U.S. Government Fund GNMA Fund Fund Total Return Fund
============================== ============= ============================ ============================
Year ended Year ended Period ended Year ended Year ended Year ended Year ended
October 31, October 31, October 31, October 31, October 31, October 31, October 31,
1999 1998 1999 (a) 1999 1998 1999 1998
============= ============= ============= ============= ============= ============= =============
<S> <C> <C> <C> <C> <C> <C>
$ 3,966,853 $ 3,302,046 $ 877,846 $ 13,465,648 $ 8,870,626 $ 11,195,013 $ 5,862,949
(413,912) 556,891 10,138 (7,274,797) 2,080,160 (2,335,600) 1,187,294
(2,259,292) 834,528 677,793 (8,531,705) 1,196,334 (8,866,525) 541,062
------------- ------------- ------------- ------------- ------------- ------------- -------------
1,293,649 4,693,465 1,565,777 (2,340,854) 12,147,120 (7,112) 7,591,305
------------- ------------- ------------- ------------- ------------- ------------- -------------
(3,984,817) (3,232,000) (763,758) (12,902,117) (8,681,652) (11,250,903) (6,227,413)
(1,352,736)
(377,990) (1,977,735) (524,754) (810,667) (761,994)
------------- ------------- ------------- ------------- ------------- ------------- -------------
(4,362,807) (3,232,000) (763,758) (14,879,852) (9,206,406) (12,061,570) (8,342,143)
------------- ------------- ------------- ------------- ------------- ------------- -------------
13,686,356 96,042,359 120,346,469 147,882,590 110,019,942 143,194,483 120,792,928
4,016,664 3,232,563 763,755 14,197,865 8,630,705 11,645,326 7,469,327
(13,953,615) (44,359,827) (751,404) (123,605,779) (42,604,046) (86,942,800) (51,761,918)
------------- ------------- ------------- ------------- ------------- ------------- -------------
3,749,405 54,915,095 120,358,820 38,474,676 76,046,601 67,897,009 76,500,337
------------- ------------- ------------- ------------- ------------- ------------- -------------
680,247 56,376,560 121,160,839 21,253,970 78,987,315 55,828,327 75,749,499
71,855,166 15,478,606 -- 173,973,880 94,986,565 174,612,155 98,862,656
------------- ------------- ------------- ------------- ------------- ------------- -------------
$ 72,535,413 $ 71,855,166 $ 121,160,839 $ 195,227,850 $ 173,973,880 $ 230,440,482 $ 174,612,155
============= ============= ============= ============= ============= ============= =============
$ 56,192 $ 74,156 $ 114,088 $ 255,501 $ 203,469 $ 367,411 $ --
============= ============= ============= ============= ============= ============= =============
6,592,251 1,465,864 -- 17,111,232 9,488,598 17,065,215 9,642,346
------------- ------------- ------------- ------------- ------------- ------------- -------------
1,282,269 8,965,339 11,986,472 14,689,513 10,958,699 14,364,438 11,789,406
378,358 300,960 75,957 1,450,850 859,385 1,165,260 730,690
(1,313,462) (4,139,912) (74,323) (12,569,210) (4,195,450) (8,770,363) (5,097,227)
------------- ------------- ------------- ------------- ------------- ------------- -------------
347,165 5,126,387 11,988,106 3,571,153 7,622,634 6,759,335 7,422,869
------------- ------------- ------------- ------------- ------------- ------------- -------------
6,939,416 6,592,251 11,988,106 20,682,385 17,111,232 23,824,550 17,065,215
============= ============= ============= ============= ============= ============= =============
189,610,324 172,214,512 868,754,666 652,481,057
177,451,710 47,946,922 833,546,285 624,174,071
109,425,523 47,017,857 61,763,359
134,406,547 43,614,547 8,047,486
</TABLE>
See notes to financial statements.
Annual Report 65
<PAGE>
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
High Income Fund
==========================
Year ended Period ended
October 31, October 31,
1999 1998 (d)
============ ============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.............................. $ 8,805,546 $ 3,492,147
Net realized gains (losses) on investments......... (2,963,916) (1,066,988)
Change in net unrealized appreciation
(depreciation).................................... (1,130,820) (4,898,378)
------------ ------------
Change in Net Assets Resulting from Operations.... 4,710,810 (2,473,219)
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............................. (8,763,462) (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..................................... (8,763,462) (2,506,338)
------------ ------------
FROM CAPITAL TRANSACTIONS:
Proceeds from fund shares sold..................... 57,185,303 108,306,167
Reinvestment of distributions...................... 7,945,379 2,303,959
Cost of fund shares redeemed....................... (43,449,500) (13,961,759)
------------ ------------
Change in Net Assets from Capital Transactions.... 21,681,182 96,648,367
------------ ------------
Total Change in Net Assets....................... 17,628,530 91,668,810
NET ASSETS:
Beginning of period................................ 91,668,810 --
------------ ------------
End of period...................................... $109,297,340 $ 91,668,810
------------ ------------
Undistributed net investment income................ $ 1,027,893 $ 985,809
============ ============
FUND SHARES OF BENEFICIAL INTEREST:
Outstanding shares at beginning of period.......... 9,382,439 --
------------ ------------
Shares sold........................................ 5,667,182 10,586,004
Shares issued in reinvestment of distributions..... 809,820 229,780
Shares redeemed.................................... (4,376,283) (1,433,345)
------------ ------------
Change in shares outstanding....................... 2,100,719 9,382,439
------------ ------------
Outstanding shares at end of period................ 11,483,158 9,382,439
============ ============
LONG TERM INVESTMENT ACTIVITY:
Purchase of investments (excluding government)..... 94,037,711
Sale of investments (excluding government)......... 69,384,988
Purchase of government securities.................. 987,969
Sale of government securities...................... 986,484
</TABLE>
- -------
(a)The Fund commenced operations on August 27, 1999.
(b)The Fund commenced operations on June 17, 1999.
(c)The Fund commenced operations on December 17, 1998.
(d)The Fund commenced operations on December 30, 1997.
(e)The Fund commenced operations on December 17, 1997.
See notes to financial statements.
66 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Short Duration California Municipal
Tax Exempt Fund Tax Exempt Bond Fund Income Fund
=========================== ========================== ====================
Year ended Year ended Year ended Year ended Period ended
October 31, October 31, October 31, October 31, October 31,
1999 1998 1999 1998 1999 (c)
=========== ============ ============ ============ ====================
<S> <C> <C> <C> <C>
$ 576,474 $ 997,973 $ 2,528,624 $ 2,685,980 $ 710,925
31,667 139,518 238,542 (15,041) (147,769)
(258,573) (21,056) (3,114,694) 1,200,227 (1,081,713)
----------- ------------ ------------ ------------ -----------
349,568 1,116,435 (347,528) 3,871,166 (518,557)
----------- ------------ ------------ ------------ -----------
(582,247) (989,711) (2,553,254) (2,639,436) (697,611)
(139,540) (24,982)
----------- ------------ ------------ ------------ -----------
(721,787) (1,014,693) (2,553,254) (2,639,436) (697,611)
----------- ------------ ------------ ------------ -----------
4,069,845 3,531,040 12,014,744 28,997,082 35,367,478
698,143 841,608 2,193,300 2,202,021 597,877
(6,159,617) (25,825,914) (32,743,759) (22,120,528) (6,059,655)
----------- ------------ ------------ ------------ -----------
(1,391,629) (21,453,266) (18,535,715) 9,078,575 29,905,700
----------- ------------ ------------ ------------ -----------
(1,763,848) (21,351,524) (21,436,497) 10,310,305 28,689,532
16,824,575 38,176,099 67,888,900 57,578,595 --
----------- ------------ ------------ ------------ -----------
$15,060,727 $ 16,824,575 $ 46,452,403 $ 67,888,900 $28,689,532
----------- ------------ ------------ ------------ -----------
$ 5,871 $ 11,644 $ 27,472 $ 52,102 $ 13,314
=========== ============ ============ ============ ===========
1,664,941 3,788,693 6,843,864 5,932,070 --
----------- ------------ ------------ ------------ -----------
407,302 349,831 1,209,554 2,944,498 3,529,282
70,048 83,570 225,048 224,591 60,777
(616,144) (2,557,153) (3,354,409) (2,257,295) (608,562)
----------- ------------ ------------ ------------ -----------
(138,794) (2,123,752) (1,919,807) 911,794 2,981,497
----------- ------------ ------------ ------------ -----------
1,526,147 1,664,941 4,924,057 6,843,864 2,981,497
=========== ============ ============ ============ ===========
8,499,711 16,611,890 34,006,170
9,547,484 34,503,304 7,611,614
</TABLE>
See notes to financial statements.
Annual Report 67
<PAGE>
Notes to Financial Statements
October 31, 1999
1. Organization and Related Matters
The Payden & Rygel Investment 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 (the
"1940 Act"), as amended. Each of its twenty-three mutual funds (each a "Fund")
is a series of the Group.
Each of the Funds, other than the Bunker Hill Money Market, High Income,
European Growth & Income and European Aggressive Growth Funds, has been
classified as non-diversified.
The Group has entered into a Credit Agreement with a group of banks, including
Deutsche Bank AG which also acts as agent for the bank group, under which the
bank group has agreed to make loans to one or more of the Funds upon request by
such Fund(s) and subject to the conditions of the Credit Agreement. The
interest rate for any such loan will vary depending upon the type of borrowing
chosen by the Fund. The aggregate of all such loans to the Funds may not exceed
$35 million. No Fund made a request for such a loan during the fiscal year
ended October 31, 1999.
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 at market on the basis of quotes
obtained from brokers and dealers or pricing services, which take into account
appropriate factors such as institutional-sized trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics and other market data. Certain fixed income securities which
may have a bid-ask spread greater than ten 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 Advisor determines that such basis does not represent fair
value. 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.
Non-U.S. dollar securities are translated into U.S. dollars using the spot
exchange rate at the close of the London market. The differences between cost
and market of investments are reflected as either unrealized appreciation or
depreciation.
Equity securities listed or traded on any domestic (U.S.) securities exchange
are valued at the last sale price or, if there have been no sales during the
day, at the last bid price. Securities traded only on the over-the-counter
market are valued at the latest bid price. Foreign equity securities are valued
based upon the last sale price on the foreign exchange or market on which they
are principally traded as of the close of the appropriate exchange or, if there
have been no sales during the day, at the last bid price.
Investments in the Bunker Hill Money Market Fund are valued at amortized cost,
which approximates market. Under the amortized cost valuation method, discount
or premium is amortized using the effective interest method 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
68 Payden & Rygel Investment Group
<PAGE>
October 31, 1999
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 Funds except the tax exempt funds may purchase securities that are
denominated in foreign currencies. For these Funds, investment securities,
other assets and liabilities denominated in a foreign currency are translated
into U.S. dollars at the current exchange rates. Purchases and sales of
securities, income receipts and expense payments are translated into U.S.
dollars at the exchange rates on the dates of the respective transactions.
Each of these Funds isolates that portion of the results of operations
resulting from changes in foreign exchange rates from the fluctuations arising
from changes in security prices.
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 income 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) writes a
covered call or put option, an amount equal to the premium received is
reflected as an asset and equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current 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.
When any of the Funds (except Bunker Hill Money Market Fund) 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 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
Annual Report 69
<PAGE>
Notes to Financial Statements continued
October 31, 1999
definitely the effective return on securities or currencies held or intended to
be acquired by a Fund, to reduce the volatility of the currency exposure
associated with investment in non-U.S. securities, or as an efficient means of
adjusting exposure to the bond, equity and currency markets and not for
speculation.
Futures Contracts
- -----------------
Any Fund (except the Bunker Hill Money Market Fund) may purchase or sell
futures contracts and options on futures contracts, which provide for the
future sale by one party and purchase by another party of a specified quantity
of a financial instrument or foreign currency at a fixed price on a future
date. Upon entering into such a contract, a Fund is required to deposit and
maintain as collateral such initial margin as required by the exchange on which
the contract is traded. Pursuant to the contract, that Fund agrees to receive
from or pay to the broker an amount equal to the daily fluctuations in the
value of the contract. Such receipts or payments are known as variation margin
and are recorded as unrealized gains or losses by that Fund. When the contract
is closed, that Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at
the time it was closed. The Funds may invest in futures contracts to hedge
against anticipated future changes in interest or exchange rates or security
prices. The potential risk to the Funds is that the change in value of the
underlying securities may not correlate to the change in value of the
contracts.
The Global Balanced, European Growth & Income, EuroDirect, European Aggressive
Growth, Growth & Income, Market Return, Small Cap Value Stock, Small Cap Growth
Stock, Total Return, U.S. Growth Leaders and High Income Funds may invest in
stock index futures contracts, which are an agreement pursuant to which two
parties agree to take or make delivery of an amount of cash equal to the
difference between the value of the index at the close of the last trading day
of the contract and the price at which the index contract was originally
written. Variation margin accounting procedures apply to these index futures
contracts. Each Fund invests in these futures contracts to permit the Fund to
meet its objectives at a lower cost than investing directly in equity
securities, while permitting the equivalent of an investment in a portfolio of
equity securities. The potential risk to a Fund is that the change in value of
the underlying index may not correlate to the change in value of the contracts.
Swap Contracts
- --------------
Any Fund (except Growth & Income and Bunker Hill Money Market Funds) may enter
into 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 rate or 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.
The potential risk to a Fund is that the swap position may correlate
imperfectly with the markets or the asset or liability being hedged. In
addition, if the other party to the transaction defaults, a Fund might incur a
loss.
Forward Currency Contracts
- --------------------------
The Global Short Bond, Global Fixed Income, Emerging Markets Bond, Total
Return, High Income, Market Return, European Growth & Income, Global Balanced,
EuroDirect and European Aggressive Growth 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 Funds enter into
forward contracts as a hedge
70 Payden & Rygel Investment Group
<PAGE>
October 31, 1999
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.
TBA Sale Commitments
- --------------------
The funds 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 value of the underling
securities. The contract is "marked-to-market" daily and the change in the
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 Fund entered the
commitment.
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, European Growth & Income,
Growth & Income and High Income Funds, which are declared and paid quarterly,
(ii) the EuroDirect, European Aggressive Growth, U.S. Growth Leaders, 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 are declared daily
and paid monthly. Net realized gains on investments, if any, are declared and
distributed at least annually. All distributions are paid in the form of
additional shares unless cash payment is requested.
Distributions to shareholders are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
Federal Income Taxes
- --------------------
It is the policy of each Fund to meet the requirements for qualification as a
regulated investment company as defined in applicable sections of the Internal
Revenue Code (the "Code"), and to make distributions of net investment income
and net realized gains sufficient to relieve it from all Federal income or
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.
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, if any, are
reclassified to paid in capital.
Annual Report 71
<PAGE>
Notes to Financial Statements continued
October 31, 1999
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 Funds of the
Group on the basis of relative net assets. Fund-specific expenses are charged
to each Fund as incurred.
The organization costs incurred on behalf of the Funds prior to June 30, 1998
are being amortized on a straight-line basis over a period not exceeding five
years. Organization costs incurred after June 30, 1998 are a direct expense to
the Fund as incurred.
3. 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 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 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 Small Cap Value Stock and Small Cap Growth
Stock Funds is 0.60% on net assets up to $1 billion and 0.50% on net assets
over $1 billion. The rate for the EuroDirect Fund is 0.65% on net assets up to
$1 billion and 0.55% 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. Growth Leaders Fund is 0.60% on
net assets up to $1 billion and 0.50% on net assets over $1 billion. The rate
for the European Aggressive Growth Fund is 0.80% on net assets up to $1 billion
and 0.60% on net assets over $1 billion. The rate for the Emerging Markets Bond
Fund is 0.45% on all net assets. The rate for the GNMA Fund is 0.27% on all net
assets.
Payden & Rygel voluntarily agreed to waive its fee for advisory services for
the Emerging Markets Bond, EuroDirect and California Municipal Income Funds
through June 30, 1999. In addition, Payden & Rygel agreed to guarantee that,
for so long as it acts as investment adviser to the Funds, the expenses of the
Funds, including advisory fees (exclusive of interest, taxes, portfolio
transaction expenses, blue sky fees, 12b-1 plan fees and extraordinary
expenses) will not exceed the percentages indicated below of that Fund's
average daily net assets on an annualized basis. Finally, Payden & Rygel has
voluntarily agreed to temporarily limit each Fund's total expenses, including
advisory fees, to the percentages indicated below of each Fund's average daily
net assets on an annualized basis through October 31, 1999 (exclusive of
interest, taxes, portfolio transaction expenses, blue sky fees, 12b-1 plan fees
and extraordinary expenses).
72 Payden & Rygel Investment Group
<PAGE>
October 31, 1999
<TABLE>
<CAPTION>
Expense Voluntary Deferred
Guarantee Expense Limit Expense Subsidy
--------- ------------- ---------------
<S> <C> <C> <C>
Global Short Bond Fund 0.70% 0. 50% $353,106
Global Fixed Income Fund 0.70% n/a --
Emerging Markets Bond Fund 1.25% 0.80% 25,521
Global Balanced Fund 0.85% 0.70% 217,868
EuroDirect Fund 1.25% 0.85% 29,188
European Growth & Income Fund 0.90% 0.90% 206,412
European Aggressive Growth Fund 1.05% 0.95% 58,770
Growth & Income Fund 0.80% 0.75% 106,565
Market Return Fund 0.60% 0.45% 312,949
U.S. Growth Leaders Fund 1.00% 0.80% 45,604
Small Cap Value Stock Fund 1.00% 0.80% 65,688
Small Cap Growth Stock Fund 1.00% 0.80% 96,309
Bunker Hill Money Market Fund 0.50% 0.30% 130,118
Limited Maturity Fund 0.60% 0.40% 873,986
Short Bond Fund 0.60% 0.40% 574,609
U.S. Government Fund 0.60% 0.40% 343,644
GNMA Fund 0.50% 0.35% 82,987
Investment Quality Bond Fund 0.60% 0.50% 352,894
Total Return Fund 0.60% 0.50% 83,330
High Income Fund 0.75% 0.60% --
Short Duration Tax Exempt Fund 0.60% 0.50% 359,732
Tax Exempt Bond Fund 0.60% 0.50% 435,072
California Municipal Income Fund 0.80% 0.50% 6,474
</TABLE>
Each Fund remains liable to Payden & Rygel for expenses subsidized in any
fiscal year so long as any reimbursement will not cause the annual expense
ratio for the year in which it is made to exceed the amount of the expense
guarantee or expense limit (whichever is in effect at the time of
reimbursement). The deferred expense subsidies 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 the Global Balanced, EuroDirect, European Growth & Income and European
Aggressive Growth 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 advisory fee earned and payable. The sub-advisor fee does not
represent a separate or additional charge to 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% through August 31, 1999 and
0.08% beginning September 1, 1999.
Annual Report 73
<PAGE>
Notes to Financial Statements continued
October 31, 1999
Under the distribution agreement with the Group, Payden & Rygel Distributors is
not entitled to receive any fees from the Group.
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.
4. Federal Income Taxes
At October 31, 1999, the following Funds had capital loss carryforwards in the
amounts indicated for Federal income tax purposes. These carryforwards are
available to offset future capital gains, if any.
<TABLE>
<CAPTION>
Capital Loss Carryforward
-----------------------------------------------------------------
Expiring Expiring Expiring Expiring Expiring Expiring
2002 2003 2004 2005 2006 2007 Total
-------- -------- -------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Global Short Bond Fund 37,169 3,854,157 212,166 4,103,492
European Growth & Income
Fund 113,297 113,297
European Aggressive
Growth Fund 236,251 236,251
Small Cap Value Stock
Fund 2,857,631 271,317 3,128,948
Small Cap Growth Stock
Fund 81,786 81,786
Limited Maturity Fund 1,971 64,303 61,717 38,977 317,490 484,458
Short Bond Fund 341,923 6,293 195,694 1,459,349 2,003,259
Investment Quality Bond
Fund 5,069,875 5,069,875
Total Return Fund 3,006,874 3,006,874
High Income Fund 1,053,468 2,732,436 3,785,904
Tax Exempt Bond Fund 521,295 92,036 460,399 1,073,730
California Municipal
Income Fund 147,769 147,769
</TABLE>
5. Fund Termination
On December 14, 1999 the Board of Trustees approved the closing of the Payden &
Rygel Small Cap Value Stock and Small Cap Growth Stock Funds, which will occur
no later than the end of January 2000.
6. Exempt Interest Income Designation (Unaudited)
The Group designates the following exempt-interest income for the taxable year
ended October 31, 1999:
<TABLE>
<CAPTION>
Exempt-Interest
Exempt-Interest Dividends
Dividends Per Share
--------------- ---------------
<S> <C> <C>
Short Duration Tax Exempt Fund $ 582,247 $0.37
Tax Exempt Bond Fund 2,553,254 0.42
California Municipal Income Fund 697,611 0.26
</TABLE>
74 Payden & Rygel Investment Group
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
Annual Report 75
<PAGE>
[FINANCIAL HIGHLIGHTS]
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Global Short Bond Fund
================================================
Year ended Year ended Year ended Period ended
October 31, 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........ 0.67 0.92 0.58 0.05
Net realized and unrealized
gains (losses).............. (0.41) (0.15) 0.11 0.06
-------- -------- -------- -------
Total from investment
activities................. 0.26 0.77 0.69 0.11
-------- -------- -------- -------
Distributions to shareholders:
From net investment income... (0.96) (0.63) (0.59) (0.04)
In excess of net investment
income......................
From net realized gains......
Return of capital............ (0.02)
-------- -------- -------- -------
Total distributions to
shareholders............... (0.98) (0.63) (0.59) (0.04)
-------- -------- -------- -------
Net asset value -- end of
period....................... $ 9.59 $ 10.31 $ 10.17 $ 10.07
======== ======== ======== =======
Total return............... 2.57% 7.87% 7.02% 1.10%*
======== ======== ======== =======
Ratios/supplemental data:
Net assets, end of period
(000)....................... $213,593 $251,609 $220,865 $28,913
Ratio of gross expense to
average net assets.......... 0.51% 0.51% 0.53% 2.31%**
Ratio of net expense to
average net assets.......... 0.50% 0.44% 0.45% 0.45%**
Ratio of gross investment
income to average net
assets...................... 3.89% 4.31% 4.76% 3.00%**
Ratio of net investment
income to average net
assets...................... 3.90% 4.38% 4.84% 4.86%**
Portfolio turnover rate...... 175% 245% 219% 0%**
</TABLE>
- -------
The Funds commenced operations on the following dates:
(a)September 18, 1996 (g)December 17, 1997
(b)December 9, 1996 (h)December 30, 1997
(c)June 30, 1997 (i)December 17, 1998
(d)November 1, 1996 (j)June 17, 1999
(e)December 1, 1995 (k)August 27, 1999
(f)January 1, 1995
*Not annualized
**Annualized
See notes to financial statements.
76 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Emerging
Markets Bond
Global Fixed Income Fund Fund
=========================================================================
Year ended Year ended Year ended Year ended Year ended Period ended
October 31, October 31, October 31, October 31, October 31, October 31,
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
-------- -------- -------- -------- -------- -------
0.76 0.45 1.03 0.54 0.89 0.83
(0.69) 0.72 (0.16) 0.19 0.53 0.43
-------- -------- -------- -------- -------- -------
0.07 1.17 0.87 0.73 1.42 1.26
-------- -------- -------- -------- -------- -------
(0.79) (0.42) (1.06) (0.70) (0.87) (0.75)
(0.33)
-------- -------- -------- -------- -------- -------
(1.12) (0.42) (1.06) (0.70) (0.87) (0.75)
-------- -------- -------- -------- -------- -------
$ 9.86 $ 10.91 $ 10.16 $ 10.35 $ 10.32 $ 10.51
======== ======== ======== ======== ======== =======
0.56% 11.81% 8.84% 7.41% 15.10% 12.92%*
======== ======== ======== ======== ======== =======
$489,687 $524,650 $535,644 $651,165 $540,041 $11,283
0.49% 0.49% 0.49% 0.53% 0.50% 1.35%**
0.49% 0.49% 0.49% 0.53% 0.50% 0.80%**
4.48% 5.13% 5.69% 5.67% 8.94% 9.36%**
4.48% 5.13% 5.69% 5.67% 8.94% 9.91%**
104% 223% 289% 176% 227% 225%**
</TABLE>
See notes to financial statements.
Annual Report 77
<PAGE>
[FINANCIAL HIGHLIGHTS CONTINUED]
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Global Balanced Fund
====================================
Year ended Year ended Period ended
October 31, 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.................... 0.02 0.20 0.05
Net realized and unrealized gains
(losses)................................ 1.65 0.63 0.90
------- ------- -------
Total from investment activities........ 1.67 0.83 0.95
------- ------- -------
Distributions to shareholders:
From net investment income............... (0.17) (0.05)
In excess of net investment income.......
From net realized gains.................. (0.86) (0.61) (0.11)
------- ------- -------
Total distributions to shareholders..... (0.86) (0.78) (0.16)
------- ------- -------
Net asset value -- end of period.......... $ 11.65 $ 10.84 $ 10.79
======= ======= =======
Total return............................ 15.85% 8.21% 9.49%*
======= ======= =======
Ratios/supplemental data:
Net assets, end of period (000).......... $ 8,624 $ 7,078 $10,312
Ratio of gross expense to average net
assets.................................. 1.56% 1.43% 1.64%**
Ratio of net expense to average net
assets.................................. 0.70% 0.69% 0.70%**
Ratio of gross investment income to
average net assets...................... 1.53% 2.37% 2.38%**
Ratio of net investment income to average
net assets.............................. 2.39% 3.11% 3.32%**
Portfolio turnover rate.................. 60% 156% 211%**
</TABLE>
- -------
The Funds commenced operations on the following dates:
(a)September 18, 1996 (g)December 17, 1997
(b)December 9, 1996 (h)December 30, 1997
(c)June 30, 1997 (i)December 17, 1998
(d)November 1, 1996 (j)June 17, 1999
(e)December 1, 1995 (k)August 27, 1999
(f)January 1, 1995
*Not annualized
**Annualized
See notes to financial statements.
78 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
EuroDirect European Aggressive
Fund European Growth & Income Fund Growth Fund
============ ==================================== ===================
Period ended Year ended Year ended Period ended Period ended
October 31, October 31, October 31, October 31, October 31,
1999 (i) 1999 1998 1997 (c) 1999 (j)
============ =========== =========== ============ ===================
<S> <C> <C> <C> <C>
$ 10.00 $ 11.46 $ 10.19 $ 10.00 $ 10.00
------- ------- ------- ------- -------
0.15 0.17 (0.04) 0.03
0.56 0.81 1.28 0.23 1.25
------- ------- ------- ------- -------
0.56 0.96 1.45 0.19 1.28
------- ------- ------- ------- -------
(0.09) (0.17)
(0.40) (0.01)
------- ------- ------- ------- -------
0.00 (0.49) (0.18) 0.00 0.00
------- ------- ------- ------- -------
$ 10.56 $ 11.93 $ 11.46 $ 10.19 $ 11.28
======= ======= ======= ======= =======
5.64%* 8.39% 14.31% 1.90%* 12.80%*
======= ======= ======= ======= =======
$ 9,656 $38,243 $39,529 $13,608 $10,187
1.67%** 0.96% 1.20% 2.48%** 2.89%**
0.85%** 0.90% 0.69% 0.69%** 0.95%**
2.41%** 1.19% 2.26% (0.07)%** (1.63)%**
3.23%** 1.25% 2.77% 1.72%** 0.31%**
12%** 89% 34% 9%** 18%**
</TABLE>
See notes to financial statements.
Annual Report 79
<PAGE>
[FINANCIAL HIGHLIGHTS CONTINUED]
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Growth & Income Fund
===================================
Year ended Year ended Year ended
October 31, October 31, October 31,
1999 1998 1997 (d)
=========== =========== ===========
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value --
beginning of period..... $ 14.45 $ 12.77 $ 10.00
-------- -------- --------
Income (loss) from
investment activities:
Net investment income.... 0.19 0.21 0.17
Net realized and
unrealized gains
(losses)................ 2.15 1.71 2.74
-------- -------- --------
Total from investment
activities............ 2.34 1.92 2.91
-------- -------- --------
Distributions to
shareholders:
From net investment
income.................. (0.19) (0.24) (0.14)
In excess of net
investment income.......
From net realized gains.. (0.33)
-------- -------- --------
Total distributions to
shareholders.......... (0.52) (0.24) (0.14)
-------- -------- --------
Net asset value -- end of
period................... $ 16.27 $ 14.45 $ 12.77
======== ======== ========
Total return*............. 16.47% 15.15% 29.19%*
======== ======== ========
Ratios/supplemental data:
Net assets, end of period
(000)................... $268,924 $250,553 $150,944
Ratio of gross expense to
average net assets...... 0.75% 0.77% 0.89%**
Ratio of net expense to
average net assets...... 0.75% 0.54% 0.54%**
Ratio of gross investment
income to average net
assets.................. 1.19% 1.32% 1.25%**
Ratio of net investment
income to average net
assets.................. 1.19% 1.55% 1.60%**
Portfolio turnover rate.. 5% 10% 2%**
</TABLE>
- -------
The Funds commenced operations on the following dates:
(a)September 18, 1996 (g)December 17, 1997
(b)December 9, 1996 (h)December 30, 1997
(c)June 30, 1997 (i)December 17, 1998
(d)November 1, 1996 (j)June 17, 1999
(e)December 1, 1995 (k)August 27, 1999
(f)January 1, 1995
*Not annualized
**Annualized
See notes to financial statements.
80 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
U.S. Growth Small Cap Value
Market Return Fund Leaders Fund Stock Fund
================================================ ============ ========================
Year ended Year ended Year ended Period ended Period ended Year ended Period ended
October 31, October 31, October 31, October 31, October 31, October 31, October 31,
1999 1998 1997 1996 (e) 1999 (j) 1999 1998 (h)
=========== =========== =========== ============ ============ =========== ============
<S> <C> <C> <C> <C> <C> <C>
$ 13.31 $ 12.80 $ 10.86 $ 10.00 $ 10.00 $ 9.28 $ 10.00
------- ------- ------- ------- ------- ------- -------
0.76 0.73 0.63 0.50 0.03 0.15 0.07
2.37 1.46 2.64 0.86 0.50 (0.17) (0.75)
------- ------- ------- ------- ------- ------- -------
3.13 2.19 3.27 1.36 0.53 (0.02) (0.68)
------- ------- ------- ------- ------- ------- -------
(0.77) (0.71) (0.63) (0.50) (0.10) (0.04)
(0.73) (0.97) (0.70)
------- ------- ------- ------- ------- ------- -------
(1.50) (1.68) (1.33) (0.50) 0.00 (0.10) (0.04)
------- ------- ------- ------- ------- ------- -------
$ 14.94 $ 13.31 $ 12.80 $ 10.86 $ 10.53 $ 9.16 $ 9.28
======= ======= ======= ======= ======= ======= =======
24.41% 18.48% 31.74% 14.06%* 5.30%* (0.33)% (6.85)%*
======= ======= ======= ======= ======= ======= =======
$82,969 $43,390 $20,195 $ 5,789 $ 4,419 $14,512 $23,544
0.53% 0.69% 0.96% 4.14%** 4.61%** 1.00% 1.23%**
0.45% 0.45% 0.45% 0.00%** 0.80%** 0.80% 0.79%**
5.29% 5.45% 4.85% 1.81%** (2.84)%** 0.87% 0.76%**
5.37% 5.69% 5.36% 5.95%** 0.97%** 1.07% 1.20%**
113% 48% 140% 146%** 241%** 90% 143%**
</TABLE>
See notes to financial statements.
Annual Report 81
<PAGE>
[FINANCIAL HIGHLIGHTS CONTINUED]
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Small Cap Bunker Hill
Growth Stock Fund Money Market Fund
========================= ========================
Year ended Period ended Year ended Period ended
October 31, October 31, October 31, October 31,
1999 1998 (h) 1999 1998 (g)
=========== ============ =========== ============
<S> <C> <C> <C> <C>
Net asset value --
beginning of period..... $ 9.11 $ 10.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income (loss) from
investment activities:
Net investment income.... 0.03 0.03 0.05 0.05
Net realized and
unrealized gains
(losses)................ 1.57 (0.89)
-------- -------- -------- --------
Total from investment
activities............ 1.60 (0.86) 0.05 0.05
-------- -------- -------- --------
Distributions to
shareholders:
From net investment
income.................. (0.03) (0.05) (0.05)
In excess of net
investment income.......
From net realized gains..
-------- -------- -------- --------
Total distributions to
shareholders.......... 0.00 (0.03) (0.05) (0.05)
-------- -------- -------- --------
Net asset value -- end of
period................... $ 10.71 $ 9.11 $ 1.00 $ 1.00
======== ======== ======== ========
Total return.............. 17.56% (8.66)%* 4.97% 4.65%*
======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period
(000)................... $ 4,559 $ 2,384 $ 87,968 $ 26,455
Ratio of gross expense to
average net assets...... 2.54% 2.89%** 0.41% 0.71%**
Ratio of net expense to
average net assets...... 0.80% 0.77%** 0.30% 0.29%**
Ratio of gross investment
income to average net
assets.................. (1.36)% (1.73)%** 4.72% 4.81%**
Ratio of net investment
income to average net
assets.................. 0.38% 0.39%** 4.83% 5.23%**
Portfolio turnover rate.. 102% 186%** n/a n/a
</TABLE>
- -------
The Funds commenced operations on the following dates:
(a)September 18, 1996 (g)December 17, 1997
(b)December 9, 1996 (h)December 30, 1997
(c)June 30, 1997 (i)December 17, 1998
(d)November 1, 1996 (j)June 17, 1999
(e)December 1, 1995 (k)August 27, 1999
(f)January 1, 1995
*Not annualized
**Annualized
See notes to financial statements.
82 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Limited Maturity Fund
==================================================================================
Year ended Year ended Year ended Year ended Year ended
October 31, October 31, October 31, October 31, October 31,
1999 1998 1997 1996 1995
=========== =========== =========== =========== ===========
<S> <C> <C> <C> <C>
$ 10.08 $ 10.06 $ 10.06 $ 10.06 $ 10.00
-------- -------- -------- -------- --------
0.56 0.56 0.54 0.53 0.56
(0.09) 0.02 0.07
-------- -------- -------- -------- --------
0.47 0.58 0.54 0.53 0.63
-------- -------- -------- -------- --------
(0.57) (0.56) (0.54) (0.53) (0.57)
-------- -------- -------- -------- --------
(0.57) (0.56) (0.54) (0.53) (0.57)
-------- -------- -------- -------- --------
$ 9.98 $ 10.08 $ 10.06 $ 10.06 $ 10.06
======== ======== ======== ======== ========
4.71% 5.87% 5.46% 5.41% 6.43%
======== ======== ======== ======== ========
$ 97,820 $117,042 $152,429 $ 50,771 $ 18,414
0.50% 0.47% 0.52% 0.62% 0.83%
0.38% 0.29% 0.30% 0.30% 0.33%
5.44% 5.40% 5.30% 5.13% 5.09%
5.56% 5.58% 5.52% 5.45% 5.59%
60% 91% 135% 217% 166%
</TABLE>
See notes to financial statements.
Annual Report 83
<PAGE>
[FINANCIAL HIGHLIGHTS continued]
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Short Bond Fund
===========================================================
Year ended Year ended Year ended Year ended Year ended
October 31, 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... $ 9.94 $ 9.92 $ 9.97 $ 10.04 $ 9.68
-------- -------- -------- -------- --------
Income (loss) from
investment activities:
Net investment income.. 0.56 0.63 0.58 0.54 0.54
Net realized and
unrealized gains
(losses).............. (0.28) 0.02 (0.05) (0.06) 0.36
-------- -------- -------- -------- --------
Total from investment
activities........... 0.28 0.65 0.53 0.48 0.90
-------- -------- -------- -------- --------
Distributions to
shareholders:
From net investment
income................ (0.56) (0.63) (0.58) (0.54) (0.54)
In excess of net
investment income.....
From net realized
gains................. (0.01)
-------- -------- -------- -------- --------
Total distributions to
shareholders......... (0.56) (0.63) (0.58) (0.55) (0.54)
-------- -------- -------- -------- --------
Net asset value -- end
of period.............. $ 9.66 $ 9.94 $ 9.92 $ 9.97 $ 10.04
======== ======== ======== ======== ========
Total return............ 2.89% 6.80% 5.52% 4.86% 9.56%
======== ======== ======== ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000).......... $ 54,559 $108,661 $ 94,256 $ 97,966 $ 19,157
Ratio of gross expense
to average net
assets................ 0.50% 0.50% 0.49% 0.57% 1.03%
Ratio of net expense to
average net assets.... 0.40% 0.30% 0.40% 0.40% 0.40%
Ratio of gross
investment income to
average net assets.... 5.58% 5.84% 5.91% 5.50% 5.09%
Ratio of net investment
income to average net
assets................ 5.68% 6.04% 6.00% 5.67% 5.72%
Portfolio turnover
rate.................. 229% 596% 208% 212% 170%
</TABLE>
- -------
The Funds commenced operations on the following dates:
(a)September 18, 1996 (g)December 17, 1997
(b)December 9, 1996 (h)December 30, 1997
(c)June 30, 1997 (i)December 17, 1998
(d)November 1, 1996 (j)June 17, 1999
(e)December 1, 1995 (k)August 27, 1999
(f)January 1, 1995
*Not annualized
**Annualized
See notes to financial statements.
84 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
GNMA
U.S. Government Fund Fund
============================================================ ============
Year ended Year ended Year ended Year ended Period ended Period ended
October 31, October 31, October 31, October 31, October 31, October 31,
1999 1998 1997 1996 1995(f) 1999 (k)
=========== =========== =========== =========== ============ ============
<S> <C> <C> <C> <C> <C>
$ 10.90 $ 10.56 $ 10.54 $ 10.61 $ 10.00 $ 10.00
-------- -------- -------- -------- -------- --------
0.57 0.56 0.60 0.58 0.53 0.09
(0.39) 0.33 0.02 (0.04) 0.61 0.10
-------- -------- -------- -------- -------- --------
0.18 0.89 0.62 0.54 1.14 0.19
-------- -------- -------- -------- -------- --------
(0.57) (0.55) (0.60) (0.58) (0.53) (0.08)
(0.06) (0.03)
-------- -------- -------- -------- -------- --------
(0.63) (0.55) (0.60) (0.61) (0.53) (0.08)
-------- -------- -------- -------- -------- --------
$ 10.45 $ 10.90 $ 10.56 $ 10.54 $ 10.61 $ 10.11
======== ======== ======== ======== ======== ========
1.76% 8.60% 6.10% 5.20% 11.61%* 1.82%*
======== ======== ======== ======== ======== ========
$ 72,535 $ 71,855 $ 15,479 $ 22,114 $ 10,894 $121,161
0.50% 0.54% 0.63% 0.78% 1.84%** 0.90%**
0.40% 0.34% 0.45% 0.45% 0.45%** 0.35%**
5.29% 5.18% 5.31% 5.26% 4.92%** 5.41%**
5.39% 5.38% 5.49% 5.59% 6.31%** 5.96%**
128% 287% 160% 152% 87%** 94%**
</TABLE>
See notes to financial statements.
Annual Report 85
<PAGE>
[FINANCIAL HIGHLIGHTS continued]
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Investment Quality Bond Fund
============================================================
Year ended Year ended Year ended Year ended Year ended
October 31, 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... $ 10.17 $ 10.01 $ 9.81 $ 9.96 $ 9.09
-------- -------- -------- -------- --------
Income (loss) from
investment activities:
Net investment income.. 0.58 0.60 0.58 0.63 0.57
Net realized and
unrealized gains
(losses).............. (0.65) 0.20 0.22 (0.17) 0.87
-------- -------- -------- -------- --------
Total from investment
activities........... (0.07) 0.80 0.80 0.46 1.44
-------- -------- -------- -------- --------
Distributions to
shareholders:
From net investment
income................ (0.58) (0.59) (0.60) (0.61) (0.57)
In excess of net
investment income.....
From net realized
gains................. (0.08) (0.05)
-------- -------- -------- -------- --------
Total distributions to
shareholders......... (0.66) (0.64) (0.60) (0.61) (0.57)
-------- -------- -------- -------- --------
Net asset value -- end
of period.............. $ 9.44 $ 10.17 $ 10.01 $ 9.81 $ 9.96
======== ======== ======== ======== ========
Total return............ (0.71)% 8.33% 8.44% 4.86% 16.39%
======== ======== ======== ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000).......... $195,228 $173,974 $ 94,987 $ 32,304 $ 25,822
Ratio of gross expense
to average net
assets................ 0.50% 0.50% 0.53% 0.64% 1.11%
Ratio of net expense to
average net assets.... 0.50% 0.44% 0.45% 0.00% 0.45%
Ratio of gross
investment income to
average net assets.... 6.06% 6.06% 5.95% 5.77% 5.54%
Ratio of net investment
income to average net
assets................ 6.06% 6.12% 6.03% 6.41% 6.20%
Portfolio turnover
rate.................. 67% 156% 317% 197% 252%
</TABLE>
- -------
The Funds commenced operations on the following dates:
(a)September 18, 1996 (g)December 17, 1997
(b)December 9, 1996 (h)December 30, 1997
(c)June 30, 1997 (i)December 17, 1998
(d)November 1, 1996 (j)June 17, 1999
(e)December 1, 1995 (k)August 27, 1999
(f)January 1, 1995
*Not annualized
**Annualized
See notes to financial statements.
86 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Total Return Fund High Income Fund
============================================ ==============================
Year ended Year ended Period ended Year ended Period ended
October 31, October 31, October 31, October 31, October 31,
1999 1998 1997 (b) 1999 1998 (h)
=========== =========== ============ =========== ============
<S> <C> <C> <C> <C>
$ 10.23 $ 10.25 $ 10.00 $ 9.77 $ 10.00
-------- -------- -------- -------- --------
0.66 0.57 0.46 0.89 0.47
(0.60) 0.20 0.23 (0.34) (0.34)
-------- -------- -------- -------- --------
(0.06) 0.77 0.69 0.55 0.13
-------- -------- -------- -------- --------
(0.57) (0.58) (0.44) (0.80) (0.36)
(0.13)
(0.05) (0.08)
-------- -------- -------- -------- --------
(0.62) (0.79) (0.44) (0.80) (0.36)
-------- -------- -------- -------- --------
$ 9.67 $ 10.23 $ 10.25 $ 9.52 $ 9.77
======== ======== ======== ======== ========
0.55% 7.72% 7.10%* 5.65% 1.28%*
======== ======== ======== ======== ========
$230,440 $174,612 $ 98,863 $109,297 $ 91,669
0.50% 0.52% 0.69%** 0.55% 0.71%**
0.50% 0.44% 0.45%** 0.55% 0.54%**
5.58% 5.99% 5.97%** 7.99% 7.58%**
5.58% 6.07% 6.21%** 7.99% 7.75%**
45% 208% 206%** 68% 134%**
</TABLE>
See notes to financial statements.
Annual Report 87
<PAGE>
[FINANCIAL HIGHLIGHTS continued]
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Short Duration Tax Exempt Fund
===========================================================
Year ended Year ended Year ended Year ended Year ended
October 31, 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.. 0.37 0.42 0.38 0.38 0.42
Net realized and
unrealized gains
(losses).............. (0.15) 0.03 0.07 (0.06) 0.15
------- ------- ------- ------- -------
Total from investment
activities.......... 0.22 0.45 0.45 0.32 0.57
------- ------- ------- ------- -------
Distributions to
shareholders:
From net investment
income................ (0.37) (0.41) (0.38) (0.38) (0.42)
In excess of net
investment income.....
From net realized
gains................. (0.09) (0.01) (0.01)
------- ------- ------- ------- -------
Total distributions
to shareholders..... (0.46) (0.42) (0.38) (0.39) (0.42)
------- ------- ------- ------- -------
Net asset value -- end
of period.............. $ 9.87 $ 10.11 $ 10.08 $ 10.01 $ 10.08
======= ======= ======= ======= =======
Total return............ 2.29% 4.55% 4.55% 3.28% 5.88%
======= ======= ======= ======= =======
Ratios/supplemental
data:
Net assets, end of
period (000).......... $15,061 $16,825 $38,176 $36,336 $16,019
Ratio of gross expense
to average net
assets................ 0.85% 0.68% 0.62% 0.70% 0.91%
Ratio of net expense to
average net assets.... 0.50% 0.44% 0.45% 0.45% 0.45%
Ratio of gross
investment income to
average net assets.... 3.27% 3.75% 3.58% 3.56% 3.66%
Ratio of net investment
income to average net
assets................ 3.62% 3.99% 3.75% 3.81% 4.12%
Portfolio turnover
rate.................. 54% 53% 57% 35% 80%
</TABLE>
- -------
The Funds commenced operations on the following dates:
(a)September 18, 1996 (g)December 17, 1997
(b)December 9, 1996 (h)December 30, 1997
(c)June 30, 1997 (i)December 17, 1998
(d)November 1, 1996 (j)June 17, 1999
(e)December 1, 1995 (k)August 27, 1999
(f)January 1, 1995
*Not annualized
**Annualized
See notes to financial statements.
88 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
California
Municipal
Tax Exempt Bond Fund Income Fund
=========================================================== ============
Year ended Year ended Year ended Year ended Year ended Period ended
October 31, October 31, October 31, October 31, October 31, October 31,
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
0.42 0.40 0.44 0.45 0.46 0.26
(0.49) 0.20 0.24 (0.12) 0.69 (0.38)
------- ------- ------- ------- ------- -------
(0.07) 0.60 0.68 0.33 1.15 (0.12)
------- ------- ------- ------- ------- -------
(0.42) (0.39) (0.44) (0.45) (0.46) (0.26)
------- ------- ------- ------- ------- -------
(0.42) (0.39) (0.44) (0.45) (0.46) (0.26)
------- ------- ------- ------- ------- -------
$ 9.43 $ 9.92 $ 9.71 $ 9.47 $ 9.59 $ 9.62
======= ======= ======= ======= ======= =======
(0.81)% 6.32% 7.33% 3.52% 13.25% (1.22)%*
======= ======= ======= ======= ======= =======
$46,452 $67,889 $57,579 $49,862 $40,052 $28,690
0.57% 0.57% 0.59% 0.61% 0.74% 0.77%**
0.50% 0.49% 0.45% 0.45% 0.45% 0.50%**
4.07% 4.00% 4.46% 4.57% 4.68% 3.17%**
4.14% 4.08% 4.60% 4.73% 4.97% 3.44%**
28% 36% 42% 23% 42% 39%**
</TABLE>
See notes to financial statements.
Annual Report 89
<PAGE>
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying statements of assets and liabilities,
including the schedules of portfolio investments, of Payden & Rygel Investment
Group (the "Funds"), including Global Short Bond Fund, Global Fixed Income
Fund, Emerging Markets Bond Fund, Global Balanced Fund, EuroDirect Fund,
European Growth & Income Fund, European Aggressive Growth Fund, Growth & Income
Fund, Market Return Fund, U.S. Growth Leaders Fund, Small Cap Value Stock Fund,
Small Cap Growth Stock Fund, Bunker Hill Money Market Fund, Limited Maturity
Fund, Short Bond Fund, U.S. Government Fund, GNMA Fund, Investment Quality Bond
Fund, Total Return Fund, High Income Fund, Short Duration Tax Exempt Fund, Tax
Exempt Bond Fund and California Municipal Income Fund as of October 31, 1999,
the related statements of operations, the statements of changes in net assets
and the financial highlights for the periods presented. We have also audited
the statements of cash flows for the period ended October 31, 1999 for the U.S.
Government Fund, GNMA Fund, Investment Quality Bond Fund and Total Return Fund.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1999, by correspondence with the Funds' custodians and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of October 31, 1999, the results of their operations, the changes in
their net assets, their cash flows and financial highlights for the respective
stated periods, in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, NY
December 10, 1999
90 Payden & Rygel Investment Group
<PAGE>
TRUSTEES AND OFFICERS
Trustees
Joan A. Payden, Chairman and Chief Executive Officer
President, Payden & Rygel
W.D. Hilton, Jr.
CEO, Trust Securities, Inc.
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
Annual Report 91
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[LOGO OF PAYDEN & RYGEL]
MUTUAL FUNDS
1-800-5-PAYDEN 1-800-572-9336
333 South Grand Avenue Los Angeles, CA 90071 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.
