<PAGE>
[LOGO OF PAYDEN & RYGEL MUTUAL FUNDS] semi-annual report
April 30, 2000
Payden & Rygel Investment Group
<PAGE>
Contents
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<TABLE>
<C> <S>
. Chairman's Letter
i Management Discussion and Analysis
1 Portfolio Highlights and Investments
42 Statements of Assets and Liabilities
46 Statements of Operations
50 Statements of Changes in Net Assets
58 Notes to Financial Statements
64 Financial Highlights
80 Trustees and Officers
</TABLE>
Semi-Annual Report
<PAGE>
Dear Shareholder:
---------------------------------------------------------------------------
Since early last year, two major themes dominated investors' concerns: an
overheated stock market that started the Federal Reserve on an interest rate
tightening spree and the potential threat of the Year 2000 bug that caused
corporations and governments to invest billions of dollars in technology. With
the new millennium, we have an upheaval in the domestic stock markets, which is
randomly erasing and setting record gains on a daily basis. The volatility in
the equity markets, continually strong economic indicators, along with rising
oil prices, have prompted the Federal Reserve to step up its efforts to stem
inflation and take a more aggressive stance.
Since November 1, 1999, we too have retooled our fund offerings to reflect
the changes in investor demand and the global marketplace. In addition to two
new funds, we have made modifications to an existing fund to make it more
attractive to new, as well as existing, investors.
.The World Target Twenty Fund is the newest fund subadvised by
Metzler/Payden LLC, our joint venture with Metzler Bank of Frankfurt,
Germany. The Fund seeks to invest in global companies that exhibit high
growth prospects and also, through strong fundamentals, show that the growth
is sustainable.
.Our Small Cap Growth and Small Cap Value Funds were consolidated into one
new fund, Small Cap Leaders Fund, which invests in small capitalization
companies with high long-term growth potential, regardless of whether the
company is viewed as a growth company or a value company.
.The Growth & Income Fund has undergone a change in process to better
reflect the broad marketplace. Whereas in the past the broad market exposure
was solely achieved through the use of S & P Depositary Receipts (SPDRs),
the Fund now includes exposure to the DJIA (via "diamonds") and to the
NASDAQ (through the "triple Qs"), and divides the 50% broad market basket
among the SPDRs, DIAs, and QQQs. The other 50% of the fund is still invested
in the 10 highest dividend yielding stocks in the Dow Jones Industrial
Average.
We remain bullish on the growth prospects for Europe, although the Euro has
officially fallen below parity with the U.S. dollar. The combination of M & A
activity and the increasing access to the capital markets caused by the
introduction of the EMU is unlocking value in European equities. This should
continue to make growth stocks more attractive. Our European Aggressive Growth
Fund, a Europe-only fund subadvised by Metzler/Payden, gives investors an
opportunity to gain exposure to the next high growth market.
<PAGE>
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In recent months, we've attracted very positive coverage from the media. Our
European Aggressive Growth Fund has gained broad attention for posting
impressive returns in an asset class that many have yet to explore. And, our
Short Duration Tax-Exempt and Global Fixed Income Funds have been recognized
recently due to their solid returns.
Creating and maintaining shareholder value, providing solid investment
vehicles, and seeking out new sectors in which to invest continue to be our
objectives. Although we are pleased with what we have accomplished, we
continually seek to improve on our accomplishments.
We appreciate your trust in Payden & Rygel, and we will continue to work for
you.
Sincerely,
/s/ Joan A. Payden
Joan A. Payden
Chairman & CEO
<PAGE>
Management Discussion and Analysis
Fixed Income Markets
The bond market experienced significant volatility during the past six months
ended April 30, 2000. Surprisingly, Y2K was not to blame. Shortly after the
beginning of the year, the Treasury Department initiated its first buyback
program in recent memory in response to the anticipated budget surplus. The
impact of this program was felt throughout all sectors of the U.S. fixed income
market. The yield curve inverted with 30-year yields falling below 2-year
yields due to the anticipated scarcity of long maturity Treasuries. In
addition, spreads, which reflect the difference between the yield of non-
Treasury securities and the yield on Treasury securities, reached all-time wide
levels as the Treasury market became disconnected from the rest of the fixed-
income universe. Finally, as widely expected, the Federal Reserve Board imposed
three rate increases, raising the Fed Funds target to 6% as economic growth
continued in virtually all sectors of the economy.
Short Maturity Strategies
For the period ended April 30, 2000, the Bunker Hill Money Market Fund earned
2.79% for the six month period; it earned 5.41% for the twelve months, which
placed it 8th out of 356 funds in Lipper's "Money Market Fund" category based
on total return. The Fund continued its strategy of maintaining a relatively
long average maturity of 60 to 80 days. This allowed the Fund to invest in
securities with nine-month to twelve-month maturities that paid significantly
higher interest than securities with shorter maturities.
The Limited Maturity Fund is designed to take advantage of its ability to
invest in securities that are just beyond the reach of money market funds,
while maintaining minimal share price volatility. The Fund invests only in
investment grade instruments and has an average credit quality rating of AA.
Although the Fund has a yield advantage of about one-half of one percent over
money market funds, sharply rising rates during the six-month period reduced
the Fund's total return. The Fund earned 2.58% during the period.
Our belief that interest rates would rise caused us to maintain a very cautious
strategy during the six-month period. Average maturities were held relatively
short in most of the short-term funds. Based on total return for the period,
the Short Bond Fund's average maturity was held below two years. For the period
ended April 30, 2000, the Fund produced a total return of 2.27% for the six
month period; it earned 3.44% for the twelve months, placing it 28th out of 113
funds in Lipper's "Short Investment Grade Debt Funds" universe.
During the six month period, we repositioned the U.S. Government Fund by
selling its 15-year mortgage pass through securities and purchasing
intermediate-term U.S. Agency notes and short-term collateralized mortgage
obligations (CMOs). For the period ended April 30, 2000, the Fund earned 1.60%
for the six month period; it earned 2.61% for the twelve months, which placed
it 13th out of 91 funds in the Lipper "Short Intermediate U.S. Government
Funds" category.
The GNMA Fund invests in "current coupon" mortgage pools, which are mortgage
pools that have coupon rates roughly equal to the current yield demanded by the
market, and GNMA II pools, both of which are slightly cheaper than other GNMA
investments but involve no additional risk. During the six-month period ended
April 30, average maturity was also kept short compared to other funds. The
combination of these two strategies produced a return of 1.81%, which placed
the Fund 3rd out of 60 funds in Lipper's "GNMA Funds" universe.
Intermediate Maturity Strategies
The increase in investor demand for Treasury securities caused corporate,
mortgage and agency spreads to widen significantly over Treasuries during the
six-month period. The Total Return Fund and Investment Quality Bond Fund
performed relatively well in this environment. Both Funds took advantage of
changes in mortgage spreads, as we increased our allocation to mortgages when
spreads widened and moved to an underweight when spreads tightened. In
addition, the Total Return Fund benefited from an allocation to emerging
markets, as positive credit fundamentals caused spreads over Treasuries to
narrow significantly in this sector. Despite the
i
<PAGE>
Management Discussion and Analysis
significant rise in 10-year Treasury rates, the Total Return Fund earned 0.66%
and the Investment Quality Bond Fund returned 0.54% for the six months ended
April 30, 2000.
Global Strategies
In late 1999, central bankers around the world began raising short-term
interest rates in an effort to preempt inflationary pressures within the global
economy. After initially trading higher, bonds subsequently lost their appeal
with the fading specter of Y2K and the reports of continued strong economic
data. The markets recognized that these interest rate moves were the beginning
of a cycle of tighter monetary policy.
After another round of raising interest rates in early February, several
central banks intimated that the urgency for tightening as reflected in the
yield curve was excessive. This gradualist stance helped spark a bond rally
that flattened or further inverted yield curves. The anticipated narrowing of
the output gap between the U.S. and the rest of the world failed to
materialize, however, and as a result, this price appreciation was reversed in
late April.
For the six months ended April 30, 2000, the Global Fixed Income Fund and
Global Short Bond Fund posted positive returns of 3.26% and 2.48%,
respectively. As borne out by the fact that the U.S. was the worst returning
country in the global indices for 1999, global diversification remains a
prudent investment objective. We have selectively added European credit
exposure to the funds and we look to this area as a significant contributor to
overall return. In addition, currency hedging continues to protect depreciation
of non-dollar securities and higher "overnight" rates for fixed income
securities in the U.S. continue to improve overall returns.
High Income and Emerging Markets Strategies
Over the last six months, the high yield market has experienced weak investor
flows and poor investor sentiment due to several bouts of extreme volatility in
the equity and Treasury markets. While Y2K proved to be a non-event, technicals
have been poor as the buy-side struggles with weak interest in the market. High
yield mutual fund flows have been negative: over $3 billion has already left
the sector in 2000. Furthermore, a lack of collateralized bond obligations has
been an additional negative technical factor, as these structures supported the
market backstop during poor demand conditions in early and mid-1999. The equity
and Treasury market's volatility has pushed investors to the sidelines on many
occasions, adding to the reduced flows. Spreads in the high yield market have
reflected the poor technicals, and as a result, have widened to levels not seen
since December. The High Income Fund continues to be defensively positioned, as
evidenced by our high cash allocation (15%) and emphasis on noncyclical
industries. The High Income Fund returned 0.74% during the six-month period,
exceeding the Merrill Lynch High Yield Index return of -0.12% by 86 basis
points. We have been viewing the volatility in the market as an opportunity to
buy higher quality (BB rated) securities at good valuations.
In the six months ended April 30, 2000, the Emerging Markets Bond Fund posted a
return of 14.41%. Spreads tightened about two percent in the last quarter of
1999, as fears of Y2K problems faded and the fundamental outlook for emerging
markets improved. From January to April 2000, emerging market debt remained
range-bound, trading along with volatility in U.S. equity markets. Despite
strong credit trends in these countries, the tone in emerging markets has
weakened since mid-March due to uncertainty about the path of the U.S. Federal
Reserve's interest rate policy, and the impact on emerging markets in the event
of a more rapidly rising interest rate environment.
Overall emerging market spreads are relatively unchanged from the beginning of
the year, but are in positive return territory given the high carry in emerging
markets assets. The Emerging Markets Bond Fund posted a
ii
<PAGE>
Management Discussion and Analysis continued
return of 5.61% year-to-date through April 30, which is 250 basis points ahead
of the J.P. Morgan EMBI Global Constrained Index and 100 basis points ahead of
the EMBI Global Index. The strategy of the Emerging Markets Bond Fund in the
last six months has been to overweight Latin America and Central Europe, and to
underweight Asia and Africa. The Fund has also added corporates
opportunistically in order to earn additional yield over the sovereign issues.
Tax-Exempt Strategies
Virtually all financial markets experienced increased volatility in the six
months ended April 30, 2000. The municipal market was no exception. Investors
remained cautious through the first fiscal quarter as the Federal Reserve
increased rates to stem inflation. In addition, many investors were content to
hold cash and see what impact the Y2K bug would have on the market. Technical
year-end selling and a lack of participation in the market from traditional
municipal bond investors also led municipal rates higher. By the end of
January, the yield on 2-year, AAA-rated general obligation bonds had risen 43
basis points to 4.58%; whereas, the yield on 30-year bonds increased 14 basis
points to 6.03%. The yield curve continued to flatten in February and March, as
the equity market correction and Treasury buy-back announcement gave support to
the bond markets. As a result, intermediate and long-bonds rallied 25 basis
points. Unfortunately, economic data released in April showed signs of
inflation causing interest rates to rise 12 basis points across the curve.
The Short Duration Tax Exempt Fund posted a 1.36% total return for the six-
month period ended April 30, 2000, despite a 55 basis point increase in short-
term interest rates. The portfolio benefited from its emphasis on premium
coupon bonds and its short maturity orientation. The Tax Exempt Bond Fund and
the California Municipal Income Fund benefited from a yield decline of
approximately 0.50% in the long end of the market that began in January. The
portfolios have a longer maturity orientation that increases their price
sensitivity to changes in interest rates. The Tax Exempt Bond Fund had a 1.89%
total return for the six-month period. Strong demand for California exempt
bonds aided the California Municipal Income Fund, which posted a 2.28% total
return for the first six months of the fiscal year.
Equity Markets
The past six months was a period of dramatic narrowing in the breadth of the
market advance between so called "old economy " and "new economy" stocks. This
can be seen in the movement of the S&P 500 Index. Over the last six months, the
Index has increased 7.18%, with 192 issues up and 308 issues down. This
increase was led by the Technology sector, up 41.5%. Basic Materials was the
laggard at -10.5%. The top 21 stocks, on a percent return basis, however,
accounted for all the Index return. This means the remaining 479 stocks as a
group, on a capitalization weighted basis, were flat for the period. Value
stocks continued to lag growth as the 385-member S&P 500/BARRA Value Index
lagged the 115-member BARRA Growth Index, 2.68% to 10.84%. The NASDAQ Index had
its most volatile six-month period ever with several days of index changes in
excess of 5%. This is not surprising as the index is weighted based on market
capitalization, with over 75% of the Index representing technology issues.
Overall the NASDAQ Index was up 30.26%. The leading sector was Biotechnology,
up 58.9%, with the largest decrease in the Banking sector, down 17.1%.
Domestic Strategies
For the six-month period, the large cap funds had moderate results. The Market
Return Fund returned 4.19% and has a 3-star rating by Morningstar./1/ The U.S.
Growth Leaders Fund returned 4.57% over this period. The Growth & Income Fund
("Dogs of the Dow"), with a rating of "4" (out of a possible "5") in
Morningstar's Large Value category, returned - 3.33%./2/
iii
<PAGE>
Management Discussion and Analysis
During the last six months, in a reversal of the last couple of years, small
cap stocks outperformed large caps. The Russell 2000 Index was up 18.88%,
exceeding the S&P 500 by more than 12%. Our Small Cap Leaders Fund is a mixture
of growth and value styles and opened on December 20, 1999. Since inception,
the Fund earned 6.15%.
Global Strategies
In local currency terms, the large European stocks outpaced their U.S.
counterparts. The Dow Jones Europe STOXX index rose 27.37% for the six month
period. With the decline in the value of the Euro from $1.05 to $0.88, however,
the index rose only 10.61% in dollar terms. We continue to believe that with
the restructuring and movement into equities by European investors, European
stocks offer outstanding opportunities for return and diversification.
Last year, in response to the opening up of the equity markets in Europe, we
launched the European Aggressive Growth Fund. This Fund focuses on companies
with a small to medium capitalizations that we believe have high growth
potential. Primary emphasis is on companies in France, Germany, Switzerland and
the United Kingdom, with a sector emphasis on technology and consumer products.
Price-to-earnings ratios in Europe are significantly lower than those in the
U.S. and represent a good opportunity for investors. The Fund has performed
extremely well, with a return of 75.88% for the six-month period. The Global
Balanced Fund scored a "4" (out of a possible "5") rating in Morningstar's
International Hybrid category./3/ It has a mixture of foreign equities and debt
securities and posted a 6.89% return for the six-month period. This Fund has
posted consistent returns with significantly less volatility than an all-stock
portfolio. The European Growth & Income Fund returned -11.26% for this period
primarily due to the combined effects of a decline in the value of the Euro and
the fear of the impact of rising U.S. interest rates on the European markets.
In early April, we initiated a new fund, the World Target Twenty Fund, which
seeks to invest in large capitalization stocks on a global basis. All four
European funds are sub-advised by our joint venture partner Metzler/Payden,
which is registered under the US Investment Adviser Act of 1940.
-------
/1/ The Morningstar ratings are for the three-year period ending April 30,
2000, out of a total 3,606 (3-year) domestic equity funds. Morningstar's
proprietary ratings reflect historical risk-adjusted performance and are
subject to change monthly. Specifically, they are calculated from each fund's
3-year 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 the three-year period ending April 30, 2000,
for the 635 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.
/3/ The Morningstar rating is for the three-year period ending April 30, 2000,
for the 82 funds in Morningstar's "International Hybrid" 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.
iv
<PAGE>
Portfolio Highlights & Investments
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This section includes Country Allocation, Portfolio Composition tables, and
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 include the current
effect of those contracts. Unless indicated otherwise, information in this
section is as of April 30, 2000.
Semi-Annual Report 1
<PAGE>
Global Short Bond Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 23
Average Maturity 1.9 years
SEC Yield 4.68%
---------------------------
</TABLE>
Country Allocation
<TABLE>
----------------
<S> <C>
Germany 29%
U.S. 23%
New Zealand 11%
Sweden 10%
Spain 9%
France 5%
Other 13%
----------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 89%
AA 8%
A 3%
BBB 0%
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</TABLE>
Schedule of Portfolio Investments - April 30, 2000
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<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Australia (Australian Dollar)
(3%)
9,200,000 New South Wales
Treasury
Corporation, 5.50%,
10/1/02 $ 5,218.3
---------
Australia (Cost -
$5,334.7) 5,218.3
France (Euro) (4%)
8,700,000 French Government
Btns,
5.50%, 10/12/01 8,024.1
---------
France (Cost -
$8,720.9) 8,024.1
Germany (Euro) (28%)
8,000,000 Allgemeine Hypobk
AG,
4.25%, 6/25/01 7,256.7
8,000,000 Bundesobligation -
122,
4.50%, 2/22/02 7,269.9
2,000,000 Bundesobligation,
5.00%, 8/20/01 1,832.6
5,300,000 Depfa Pfandbrief
Bank,
5.25%, 12/14/01 4,861.7
18,600,000 German Government
Bond,
4.75%, 11/20/01 16,983.7
4,000,000 Rheinische Hypo Bank
AG,
4.50%, 8/26/03 3,574.8
8,100,000 Treuhandanstalt,
6.50%, 4/23/03 7,698.7
---------
Germany (Cost -
$55,458.2) 49,478.1
Italy (Euro) (4%)
7,000,000 Italian Government
BTP, 6.25%, 3/1/02 6,542.2
---------
Italy (Cost -
$7,892.6) 6,542.2
Netherlands (Euro) (4%)
8,600,000 Netherlands
Government Bond,
8.50%, 3/15/01 8,098.0
---------
Netherlands (Cost -
$9,441.8) 8,098.0
</TABLE>
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<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
-----------------------------------------------
<C> <S> <C> <C>
New Zealand (New Zealand
Dollar) (11%)
37,000,000 New Zealand
Government Bond,
10.00%, 3/15/02 $ 18,895.8
----------
New Zealand
(Cost -
$19,049.6) 18,895.8
Spain (Euro) (9%)
7,900,000 Spanish
Government Bond,
5.00%, 1/31/01 7,114.9
9,000,000 Spanish
Government Bond,
4.25%, 7/30/02 8,233.5
----------
Spain (Cost -
$17,208.2) 15,348.4
Sweden (Swedish Krona) (10%)
151,100,000 Swedish
Government Bond,
5.50%, 4/12/02 17,035.4
----------
Sweden (Cost -
$17,291.1) 17,035.4
United States (United States
Dollar) (21%)
15,500,000 FHLB,
5.63%, 3/19/01 15,378.0
3,000,000 FHLMC,
6.08%, 7/20/00 2,959.5
2,100,000 FNMA Global,
5.75%, 9/5/00
(Australian
Dollar) 1,221.2
2,000,000 GMAC,
5.50%, 2/2/05 1,808.7
6,300,000 U.S. Treasury
Note,
4.25%, 11/15/03 5,846.8
5,000,000 U.S. Treasury
Note,
6.25%, 6/30/02 4,956.8
6,000,000 U.S. Treasury
Note,
6.63%, 7/31/01 5,998.8
----------
United States
(Cost -
$39,006.1) 38,169.8
Investment Companies (1%)
2,017,000 Bunker Hill
Money Market
Fund 2,017.0
----------
Total (Cost - $181,420.1) (a)
(95%) $168,827.1
==========
</TABLE>
2 Payden & Rygel Investment Group
<PAGE>
Global Short Bond Fund
Percentages indicated are based on net assets of $178,228,828.
(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 $ 3,039
Unrealized depreciation (12,596,064)
------------
Net unrealized
depreciation $(12,593,025)
============
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
6/20/00 Australian Dollar
(sell) 0.6132 $ 6,738,958 $ 329,063
5/30/00 Euro (sell) 0.9830 26,048,175 1,848,516
7/13/00 Euro (sell) 0.9683 71,654,200 3,881,251
5/18/00 New Zealand Dollar
(sell) 0.4950 19,851,104 378,009
5/17/00 Swedish Krona (sell) 8.6700 18,523,645 546,865
------------ ----------
$142,816,082 $6,983,704
============ ==========
Liabilities:
5/2/00 Euro (buy) 0.9215 $ 16,839 $ (190)
============ ==========
</TABLE>
See notes to financial statements.
Semi-Annual Report 3
<PAGE>
Global Fixed Income Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 40
Average Maturity 7.9 years
SEC Yield 5.00%
---------------------------
</TABLE>
Country Allocation
<TABLE>
-------------------
<S> <C>
U.S. 51%
Germany 18%
United Kingdom 8%
Sweden 5%
Austria 4%
Italy 3%
Other 11%
-------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 55%
AA 28%
A 17%
BBB 0%
--------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------------------------------------------------
<C> <S> <C> <C>
Austria (Japanese Yen) (4%)
2,000,000,000 Oesterreich
Kontrollbank,
1.80%, 3/22/10 $18,524.5
---------
Austria (Cost -
$18,528.4) 18,524.5
Belgium (Japanese Yen) (1%)
4,700,000 Belgium Kingdom,
9.00%, 3/28/03 4,741.2
---------
Belgium (Cost -
$5,048.0) 4,741.2
France (Euro) (1%)
5,000,000 French Treasury
Note,
3.50%, 7/12/04 4,307.7
---------
France (Cost -
$4,351.6) 4,307.7
Germany (Euro) (17%)
15,000,000 Bayerhypo
Vereinsbank,
4.75%, 9/19/07 12,969.5
13,000,000 Hypothekenbk,
5.50%, 2/20/07 11,791.0
10,800,000 Deutsche
Ausgleichsbank,
4.00%, 7/4/09 8,710.3
12,000,000 Treuhandanstalt,
6.50%, 4/23/03 11,405.5
13,800,000 Bundesobligation,
5.00%, 8/20/01 12,644.8
20,300,000 Deutschland
Republic,
5.63%, 1/4/28 18,399.2
---------
Germany (Cost -
$93,245.6) 75,920.3
Italy (Japanese Yen) (3%)
1,110,000,000 Republic of
Italy,
3.75%, 6/8/05 11,602.4
---------
Italy (Cost -
$11,682.4) 11,602.4
Great Britain (British Pound)
(8%)
19,650,000 UK Treasury,
7.25%, 12/7/07 33,902.7
---------
Great Britain
(Cost -
$34,540.1) 33,902.7
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
----------------------------------------------
<C> <S> <C>
Netherlands (Euro) (4%)
13,900,000 Netherlands
Government,
6.50%, 4/15/03 $13,201.3
6,100,000 Netherlands
Government,
5.75%, 2/15/07 5,696.1
---------
Netherlands (Cost -
$20,204.7) 18,897.4
New Zealand (New Zealand Dollar)
(2%)
19,400,000 New Zealand
Government,
8.00%, 4/15/04 9,722.0
---------
New Zealand (Cost -
$9,870.9) 9,722.0
Poland (Zloty) (2%)
50,000,000 Poland Government
Bond,
8.50%, 2/12/05 9,198.0
---------
Poland (Cost -
$10,684.2) 9,198.0
Supranational (Euro) (1%)
460,000,000 World Bank,
4.75%, 12/20/04 4,982.4
---------
Supranational (Cost
- $4,987.6) 4,982.4
Sweden (Swedish Krona) (5%)
195,000,000 Swedish Government,
5.50%, 4/12/02 21,984.8
---------
Sweden (Cost -
$22,314.8) 21,984.8
United States (United States
Dollar) (49%)
6,000,000 AT&T Corporation,
6.00%, 3/15/09 5,347.5
5,000,000 Standard Chartered
Bank, 5.38%, 5/6/09
(Euro) 4,171.0
14,000,000 CARAT 99-1,
5.58%, 6/15/02 13,851.6
8,050,000 GMAC Swift Trust
99-1,
5.00%, 1/18/05 7,182.5
</TABLE>
4 Payden & Rygel Investment Group
<PAGE>
Global Fixed Income Fund
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
----------------------------------------------
<C> <S> <C>
14,000,000 Daimler Benz
Vehicle Trust,
5.16%, 1/20/03
(Euro) $ 13,867.7
6,600,000 John Deere Capital
Corporation, 6.39%,
9/18/00 (b) 6,588.3
7,500,000 John Deere Capital
Corporation, 6.35%,
3/15/01 (b) 7,443.8
5,000,000 Edison Mission
Energy,
7.73%, 6/15/09 4,856.3
6,000,000 Electronic Data
Systems,
6.85%, 10/15/04 5,842.5
5,000,000 FHLB,
5.91%, 6/2/00 4,973.7
15,000,000 FHLMC,
5.91%, 5/23/00 14,945.8
10,000,000 FHLMC,
6.08%, 7/20/00 9,864.9
14,413,000 FHLMC,
6.00%, 9/15/06 14,166.5
12,000,000 FNMA,
6.00%, 5/15/08 11,033.5
12,246,619 FNMA 98-11,
6.00%, 2/18/21 11,802.7
8,650,000 MBNA American
Europe,
4.38%, 8/25/04
(Euro) 7,557.9
8,050,000 Citibank Credit
Card Master,
4.50%, 8/25/04
(Euro) 7,081.3
2,000,000 GMAC, 5.50%, 2/2/05
(Euro) 1,808.7
800,000,000 Ford Motor Credit
Co., 1.20%, 2/7/05
(Japanese Yen) 7,302.4
36,000,000 U.S. Treasury Bond,
6.25%, 8/15/23 (b) 36,016.9
8,850,000 U.S. Treasury Bond,
6.00%, 2/15/26 (b) 8,617.0
9,800,000 U.S. Treasury Note,
7.00%, 7/15/06 10,029.4
6,000,000 Wells Fargo & Co.,
6.63%, 7/15/04 5,797.5
----------
United States (Cost
- $227,886.5) 220,149.4
----------
Total (Cost - $463,344.9) (a)
(97%) $433,932.8
==========
</TABLE>
Percentages indicated are based on net assets of $449,419,339.
(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 $ 43,765
Unrealized depreciation (29,455,876)
------------
Net unrealized
depreciation $(29,412,111)
============
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account.
At April 30, 2000, 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>
25 Japan 10 Year
Bond Future Jun-00 $30,636,801 $2,791,721
18 Japan 10 Year
Bond Future Sep-00 21,910,218 (33,019)
----------
$2,758,702
==========
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
05/02/00 Euro (sell) 0.9210 $ 167,704 $ 1,803
05/30/00 Euro (sell) 0.9830 57,305,985 4,066,736
07/13/00 Euro (sell) 0.9683 88,212,130 4,778,134
06/07/00 British Pound (sell) 1.5788 32,492,219 285,753
06/07/00 British Pound (sell) 1.5803 1,956,461 19,065
08/10/00 Japanese Yen (sell) 103.2000 3,042,636 80,521
05/18/00 New Zealand
Dollar (sell) 0.4950 9,950,304 189,476
09/25/00 Poland Zloty (sell) 4.2850 5,367,561 442,965
09/25/00 Poland Zloty (sell) 4.2750 5,380,117 455,520
05/17/00 Swedish
Krona (sell) 8.6700 23,771,626 701,798
------------ -----------
$227,646,743 $11,021,771
============ ===========
Liabilities:
08/10/00 Japanese Yen (sell) 106.2000 $ 40,489,642 $ (74,355)
============ ===========
</TABLE>
See notes to financial statements.
Semi-Annual Report 5
<PAGE>
Emerging Markets Bond Fund
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.
Statistics
<TABLE>
--------------------------
<S> <C>
Number of Issues 30
Average Maturity 14 years
SEC Yield 9.11%
--------------------------
</TABLE>
Country Allocation
<TABLE>
-----------------
<S> <C>
Brazil 20%
Mexico 17%
Argentina 16%
Russia 12%
South Korea 6%
Philippines 5%
Venezuela 5%
Bulgaria 4%
South Africa 3%
Poland 3%
Morocco 3%
Other 6%
-----------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Argentina (15%)
850,000 Argentina Government
Bond, 11.75%, 4/7/09 $ 832.0
680,000 Argentina Government
Bond, 7.38%, 3/31/05 632.8
450,000 Cablevision,
13.75%, 4/30/07 (c) 437.6
750,000 Multicanal SA,
13.13%, 4/15/09 761.3
-------
Argentina (Cost -
$2,682.6) 2,663.7
Brazil (20%)
1,779,596 Brazil C-Bond,
8.00%, 4/15/14 1,275.8
1,000,000 Brazil Discount,
5.19%, 4/15/24 767.5
930,000 Brazil Government
Bond, 7.38%, 4/15/06 828.9
750,000 Globo Communicacoes,
10.50%, 12/20/06 630.0
-------
Brazil (Cost -
$3,366.4) 3,502.2
Bulgaria (4%)
1,000,000 Bulgaria,
6.06%, 7/28/24 761.9
-------
Bulgaria (Cost -
$793.6) 761.9
Mexico (16%)
600,000 Alestra SA,
12.63%, 5/15/09 582.0
550,000 Grupo Iusacell SA,
14.25%, 12/1/06 576.1
250,000 Grupo Televisa,
11.88%, 5/15/06 298.5
550,000 San Luis Corporation
SA, 8.88%, 3/18/08 499.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
500,000 United Mexican
States,
6.25%, 12/31/19 $ 411.0
500,000 United Mexican
States,
9.88%, 2/1/10 515.7
--------
Mexico (Cost -
$2,874.4) 2,882.3
Morocco (2%)
486,842 Morocco Government
Bond, 6.84%, 1/1/09 434.8
--------
Morocco (Cost -
$430.2) 434.8
Panama (1%)
250,000 Panama Government
Bond,
3.50%, 7/17/14 196.3
--------
Panama (Cost -
$184.0) 196.3
Philippines (5%)
400,000 Philippines
Government Bond,
9.88%, 1/15/19 355.0
500,000 Philippines Long
Distance,
10.50%, 4/15/09 475.0
--------
Philippines (Cost -
$871.5) 830.0
Poland (3%)
450,000 PTC International
Finance II SA,
11.25%, 12/1/09 (c) 459.0
--------
Poland (Cost -
$457.3) 459.0
Russia (12%)
500,000 Russian Federation,
10.00%, 6/26/07 357.2
750,000 Russian Federation,
12.75%, 6/24/28 607.9
3,500,000 Russian Government
Bond,
5.97%, 12/15/20 947.1
</TABLE>
6 Payden & Rygel Investment Group
<PAGE>
Emerging Markets Bond Fund
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
750,000 Russian IAN,
6.06%, 12/15/15 $ 208.6
---------
Russia (Cost -
$1,628.4) 2,120.8
Slovakia (2%)
450,000 Slovak Wireless
Financial Co.,
11.25%, 3/30/07 (c) 412.0
---------
Slovakia (Cost -
$437.5) 412.0
South Africa (3%)
500,000 South African
Government Bond,
9.13%, 5/19/09 482.5
---------
South Africa (Cost -
$499.9) 482.5
South Korea (6%)
550,000 Cho Hung Bank,
11.50%, 4/1/10 (c) 537.6
500,000 Hanvit Bank,
11.75%, 3/1/10 (c) 492.5
---------
South Korea (Cost -
$1,049.5) 1,030.1
Venezuela (5%)
999,992 Venezuela FLIRB,
6.13%, 3/31/07 781.3
---------
Venezuela (Cost -
$774.5) 781.3
Investment Companies (4%)
616,460 Bunker Hill Money
Market Fund 616.5
---------
Total (Cost - $16,666.3) (a)
(98%) $17,173.4
=========
</TABLE>
Percentages indicated are based on net assets of $17,543,008.
(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 $ 740,553
Unrealized depreciation (233,531)
---------
Net unrealized appreciation $ 507,022
=========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account as collateral.
(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.
FLIRB: Front Loaded Interest Reduction Bond
IAN: Interest Arrears Note
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
7/13/00 Euro (sell) 0.9683 $435,735 $23,602
=======
</TABLE>
See notes to financial statements.
Semi-Annual Report 7
<PAGE>
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.
Statistics
<TABLE>
------------------------------------------
<S> <C>
Number of Issues 102
Average Market Cap (Equity) $59.3 Billion
------------------------------------------
</TABLE>
Top Equity Holdings
<TABLE>
---------------------------------
<S> <C>
General Electric 2.3%
Altera Corp. 2.2%
Wal-Mart Stores 2.1%
Vodafone Plc 2.0%
Lexmark International Group 1.6%
---------------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
-----------------------------------------------------
<C> <S> <C> <C> <C> <C>
Common Stocks (53%)
Basic Materials (2%)
1,000 Acerinox SA $ 39.9
1,760 BASF AG 76.2
810 Degussa-Huels AG 23.7
2,480 Rio Tinto PLC 38.6
1,230 Upm-Kymmene Oyj 31.9
--------
Basic Materials 210.3
Consumer Cyclicals (4%)
600 Accor SA 22.4
1,000 Deutsche
Lufthansa Reg'd 20.9
1,600 Electrolux AB 27.1
1,320 Karstadt AG 40.3
2,000 Philips
Electronics NV 89.4
3,800 Wal-Mart Stores,
Inc. 210.4
--------
Consumer
Cyclicals 410.5
Consumer Non-Cyclicals (7%)
620 Aventis SA 34.2
3,200 Bass PLC 37.6
2,412 Bristol - Myers
Squibb Co. 126.5
1,400 Cardinal Health,
Inc. 77.1
10 Cie Financiere
Richemont AG 24.4
2,710 Glaxo Wellcome
PLC 84.0
150 Groupe Danone 32.9
1,200 Merck & Co.,
Inc. 83.4
45 Nestle SA 79.4
40 Novartis AG 56.0
5 Roche Holding AG 52.4
1,030 Sanofi-
Synthelabo SA 38.5
--------
Consumer Non-
Cyclicals 726.4
Diversified Operations (3%)
5,400 Granada Group
PLC 52.9
9,120 Invensys PLC 43.9
710 Preussag 29.4
720 RWE AG 23.2
3,200 Tyco
International 147.0
--------
Diversified
Operations 296.4
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
--------------------------------------------------------
<C> <S> <C> <C> <C> <C>
Energy (5%)
12,826 BP Amoco PLC $ 111.3
3,100 British Energy
PLC 8.3
3,800 Enterprise Oil
PLC 28.3
986 Exxon Mobil
Corporation 76.6
1,600 Repsol SA 32.8
600 Royal Dutch
Petroleum 34.6
9,100 Shell
Transporting &
Trading Co. PLC 74.4
665 Total Fina Elf 101.1
--------
Energy 467.4
Financials (10%)
1,580 ABN Amro Holding
NV 32.6
100 Allianz AG 38.6
3,500 Allied Irish
Banks PLC 35.0
1,340 Assicurazioni
Generali 38.2
380 AXA 56.5
11,000 Banca Nazionale
Lavoro-ord (b) 36.1
7,947 Banco de Galicia
Y Buenos Aires -
ADR 137.6
3,360 Banco Santander
Central Hispano
SA 35.1
35 Bank of Scotland 0.3
800 Banque Nationale
De Paris 64.8
2,200 Barclays PLC 56.5
1,500 Capital One
Financial
Corporation 65.6
2,550 CGU PLC 36.7
800 Commerzbank AG 30.3
11,170 Credito Italiano
SpA 45.4
1,300 Deutsche Bank AG 87.5
7,830 HSBC Holdings
PLC 87.1
2,360 Ing Group NV 129.1
90 Muenchener
Rueckversicherungs-
Gesellschaft AG 26.2
70 Zurich Allied AG 29.8
--------
Financials 1,069.0
Industrial (4%)
610 ABB LTD 68.6
1,780 Atlas Copco AB 40.8
2,800 CRH PLC 44.9
400 Groupe GTM 30.8
1,600 Man AG 52.1
</TABLE>
8 Payden & Rygel Investment Group
<PAGE>
Global Balanced Fund
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
-------------------------------------------------------
<C> <S> <C> <C> <C> <C>
740 Siemens AG $ 109.4
600 Vivendi 59.5
-------
Industrial 406.1
Multimedia (2%)
1,100 MediaOne Group,
Inc. (b) 83.2
1,600 Mediaset SpA 26.0
1,330 Pearson PLC 46.0
610 VNU NV 32.7
750 Wolters Kluwer
NV 17.8
-------
Multimedia 205.7
Technology (5%)
2,200 Altera
Corporation (b) 224.9
170 Cap Gemini 33.5
490 Equant NV (b) 38.0
1,320 Lexmark
International
Group, Inc. (b) 155.8
1,130 Logica PLC 34.2
50 Sap AG 23.5
-------
Technology 509.9
Telecommunications (8%)
310 Alcatel Alsthom 72.0
2,470 British Telecom
PLC 44.5
500 Deutsche Telekom
AG-Reg 32.1
1,290 Ericsson LM-AB 115.0
2,320 Nokia Oyj 133.4
2,820 Portugal Telecom
SA 31.5
840 Sonera Oyj 46.3
6,210 Telecom Italia
Mobile SpA 59.4
3,800 Telefonica SA 84.7
43,074 Vodafone Air
Touch
Communications 198.5
-------
Telecommunications 817.4
Utilities (3%)
1,472 General Electric
Co. 231.5
160 Suez Lyonnaise
Des Eaux 25.1
-------
Utilities 256.6
-------
Total Common Stocks (Cost -
$4,397.4) 5,375.7
Bonds and Notes (27%)
Domestic Bonds (Euro) (2%)
50,000 Citibank, 4.50%,
8/25/04 44.0
50,000 GMAC Swift,
5.00%, 1/18/05 44.6
50,000 MBNA Credit
Card, 4.38%,
8/25/04 43.7
50,000 Standard
Chartered,
5.38%, 5/6/09 41.7
-------
Domestic Bonds 174.0
Foreign Bonds (Euro) (11%)
150,000 Deutschland
Republic,
5.38%, 1/4/10 137.3
100,000 Deutschland
Republic,
5.63%, 1/4/28 90.6
50,000 French
Government Bond,
3.50%, 7/12/04 43.1
600,000 German
Government Bond,
6.00%, 1/4/07 569.6
150,000 New Zealand
Government Bond,
8.00%, 4/15/04 75.2
150,000 U.K. Gilt,
7.25%, 12/7/07 258.8
-------
Foreign Bonds 1,174.6
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
-----------------------------------------------------
<C> <S> <C> <C> <C> <C>
U.S. Treasury (14%)
350,000 U.S. Treasury
Bond, 6.25%,
8/15/23 $ 350.2
700,000 U.S. Treasury
Note, 5.75%,
10/31/02 685.4
130,000 U.S. Treasury
Note, 6.38%,
5/15/00 130.0
200,000 U.S. Treasury
Note, 7.00%,
7/15/06 204.7
--------
U.S. Treasury 1,370.3
--------
Total Bonds and Notes (Cost
- $2,908.6) 2,718.9
Investment Companies (17%)
Bunker Hill
Money Market
1,778,861 Fund 1,778.9
--------
Total (Cost - $9,084.9) (a)
(97%) $9,873.5
========
</TABLE>
Percentages indicated are based on net assets of $10,225,560.
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 $1,303,391
Unrealized depreciation (514,774)
----------
Net unrealized
appreciation $ 788,617
==========
</TABLE>
(b) Non-income producing security.
At April 30, 2000, 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 SPI Future Jun-00 $ 45,678 $ 7,329
IBEX Plus Index
2 Future May-00 210,419 (7,531)
1 MIB 30 Index Future Jun-00 208,132 (4,806)
Russell 2000 Index
2 Future Jun-00 509,000 (99,214)
S&P/TSE 60 Index
3 Future Jun-00 498,572 16,507
4 Topix Index Future Jun-00 613,662 80,685
--------
$ (7,030)
========
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
5/2/00 Euro (sell) 0.9210 $ 1,677 $ 18
5/30/00 Euro (sell) 0.9830 1,494,084 106,028
7/13/00 Euro (sell) 0.9683 697,176 37,764
6/7/00 British Pound (sell) 1.5788 78,941 694
5/18/00 New Zealand
Dollar (sell) 0.4950 79,206 1,484
---------- --------
$2,351,084 $145,988
========== ========
</TABLE>
See notes to financial statements.
Semi-Annual Report 9
<PAGE>
European Growth & Income Fund
The objective of the European Growth & Income Fund is to realize capital ap-
preciation and some current income. The Fund invests primarily in common
stocks of mid-capitalization and large capitalization issuers organized or
headquartered in countries of the European Union with developed capital mar-
kets. The Fund selects primarily growth sector companies that include, but are
not limited to, biotechnology, pharmaceuticals, information technology, and
communication technology.
Statistics
<TABLE>
--------------------------------
<S> <C>
Number of Issues 40
Average Market Cap $4.2 billion
--------------------------------
</TABLE>
Top Equity Holdings
<TABLE>
--------------------------
<S> <C>
Banco Santander 4.7%
Nokia OYJ 4.2%
AXA 4.0%
Financiere Richemont 3.8%
Alcatel 3.7%
--------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Common Stocks (88%)
Basic Materials (0%)
625 Celanese AG $ 12.3
Consumer Cyclicals (7%)
1,400 Havas Advertising 700.3
3,585 Pinault-Printemps-
Redoute 724.8
--------
Consumer Cyclicals 1,425.1
Consumer Non-Cyclicals (6%)
350 Cie Financiere
Richemont AG 852.6
2,300 Oerlikon-Buehrle
Holdings 526.9
--------
Consumer Non-
Cyclicals 1,379.5
Energy (2%)
362 BP Amoco PLC 3.1
44,700 Cia Espanola De
Petroleo 398.7
--------
Energy 401.8
Financials (29%)
26,300 ABN Amro Holding NV 542.7
9,500 Assurances General de
France 473.0
6,000 AXA 891.6
53,800 Banco Santander
Central Hispano SA 562.2
51,600 Bank of Ireland 347.9
6,695 Banque Nationale de
Paris 542.3
19,900 Barclays PLC 511.2
1,300 Marschollek Laut und
Partner 692.2
27,400 Royal Bank of
Scotland Group PLC 427.2
240 Schweizerische
Rueckversicherungs-
Gesellschaft 386.7
2,869 Societe Generale 595.5
1,940 UBS AG 476.5
--------
Financials 6,449.0
Industrial (3%)
32,900 Semapa-Sociedade de
Investimento e Gestao
SA 548.3
Medical (3%)
2 Aventis SA 0.1
37,000 Celltech Group PLC
(b) 613.0
--------
Medical 613.1
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Multimedia (1%)
7,500 Sogecable SA $ 318.1
Technology (11%)
12,900 ASM Lithography
Holding NV (b) 505.4
1,800 Cap Gemini 354.2
7,350 Equant NV (b) 570.2
900 Intershop
Communications AG 401.0
800 Sap AG-Vorzug 472.7
---------
Technology 2,303.5
Telecommunications (24%)
2,400 Aixtron AG 618.8
3,600 Alcatel Alsthom 836.4
57,500 ARM Holdings PLC (b) 589.2
31,000 Beni Stabili 15.4
16,400 Nokia Oyj 942.9
16,000 Philips Electronics
NV 715.3
55,000 Portugal Telecom SA 614.9
38,000 Telecom Italia Mobile
SpA 363.5
165,350 Vodafone Air Touch
Communications 761.8
---------
Telecommunications 5,458.2
Utilities (2%)
2,320 Suez Lyonnaise des
Eaux 364.6
---------
Total Common Stocks (Cost -
$19,927.6) 19,273.5
U.S. Government Agency (1%)
200,000 FNMA Discount Note,
5.79%, 5/4/00 199.9
---------
Investment Companies (3%)
641,807 Bunker Hill Money
Market Fund 641.8
---------
Total (Cost - $20,769.3) (a)
(92%) $20,115.2
=========
</TABLE>
Percentages indicated are based on net assets of $21,862,934.
All of the securities listed above are held by the custodian in a segregated
account.
10 Payden & Rygel Investment Group
<PAGE>
European Growth & Income Fund
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 2,124,852
Unrealized depreciation (2,778,930)
-----------
Net unrealized
depreciation $ (654,078)
===========
</TABLE>
(b) Non-income producing security.
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Currency Contract Appreciation
Date Contract Price Value (Depreciation)
--------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
4/28/00 Euro (sell) 0.9535 $1,252,326 $55,688
=======
</TABLE>
See notes to financial statements.
Semi-Annual Report 11
<PAGE>
European Aggressive Growth Fund
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.
Statistics
<TABLE>
--------------------------------
<S> <C>
Number of Issues 46
Average Market Cap $2.9 billion
--------------------------------
</TABLE>
Top Equity Holdings
<TABLE>
--------------------------------
<S> <C>
Aixtron AG 4.8%
Qiagen N.V. 4.5%
ADVA AG 4.1%
Marschollek Laut & Partner 4.0%
Atlantic Telecom Group 3.2%
--------------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
Common Stocks (87%)
Consumer Cyclicals (11%)
125,965 Gruppo Editoriale
L'Espresso $ 1,778.9
11,300 Medion AG 1,065.6
2,700 Penauille
Polyservices 1,634.6
315,000 Scoot.com (b) 819.3
360,000 Seat-Pagine Gialle
SpA 1,584.2
4,500 Sr Teleperformance 1,197.2
---------
Consumer Cyclicals 8,079.8
Consumer Non-Cyclicals (16%)
135,000 Celltech Group PLC
(b) 2,236.7
9,000 Gretag Imaging Group 1,813.1
54,000 Kamps AG 1,781.0
54,000 Nestor Healthcare
Group PLC 363.3
22,500 Rhone Klinikum 839.2
27,000 Sanochemia
Pharmazeutika (b) 1,451.4
137,500 Serco Group PLC 987.4
2,250 Tecan 1,943.9
---------
Consumer Non-
Cyclicals 11,416.0
Financials (8%)
25,000 Banca Popolare Di
Lodi 295.4
5,400 Marschollek Laut und
Partner 2,875.5
5,400 New Venturetec LTD (b) 602.8
12,600 Tecis Holdings 1,825.3
---------
Financials 5,599.0
Health Care (3%)
6,300 Evotec Biosystems AG
(b) 710.6
720 Phonak Holdings 1,653.5
---------
Health Care 2,364.1
Industrial (4%)
1,350 Kaba Holdings 1,554.1
112,500 Pace Micro Technology 1,320.0
---------
Industrial 2,874.1
Technology (38%)
5,400 Adva AG Optical
Networking 2,976.6
13,500 Aixtron AG 3,480.9
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
18,000 Baltimore
Technologies PLC (b) $ 1,820.0
11,250 Brokat Infosystems AG
(b) 1,369.4
15,750 Consodata SA (b) 902.6
27,036 FI Group PLC 213.6
6,990 GFI Informatique 1,025.3
45,000 Infogrames
Entertainment (b) 1,275.1
27,000 Integra Net SA (b) 612.5
4,500 Intershop
Communications AG (b) 2,004.7
22,050 Ixos Softwarem (b) 485.4
27,000 Logica PLC 817.4
112,500 Parity Group PLC 625.7
36,000 Psion PLC 2,161.1
22,500 Qiagen NV (b) 3,257.4
6,750 S.O.I.T.E.C. (b) 1,661.1
63,000 Sherwood
International 906.8
11,250 Transiciel SA 1,504.7
---------
Technology 27,100.3
Telecommunications (7%)
202,500 Atlantic Telecom
Group (b) 2,281.0
45,000 Filtronic PLC 1,218.0
9,000 PT Multimedia
Servicos (b) 629.3
24,000 Quante AG 332.4
54,000 Tandberg ASA (b) 827.4
---------
Telecommunications 5,288.1
---------
Total Common Stock (Cost -
$59,397.9) 62,721.4
Investment Companies (11%)
7,736,912 Bunker Hill Money
Market Fund 7,736.9
---------
Total (Cost - $67,134.8) (a)
(98%) $70,458.3
=========
</TABLE>
Percentages indicated are based on net assets of $72,106,388.
(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 $9,938,167
Unrealized depreciation (6,614,644)
----------
Net unrealized appreciation $3,323,523
==========
</TABLE>
(b) Non-income producing security.
12 Payden & Rygel Investment Group
<PAGE>
World Target Twenty Fund
The objective of the World Target Twenty Fund is to realize long-term capital
appreciation. The Fund invests primarily in common stocks selected for their
growth potential. The Fund normally concentrates its investments in the common
stocks of a core group of 20-40 companies that are organized or headquartered
in countries around the world. There are no limitations on the countries in
which the Fund may invest.
Statistics
<TABLE>
---------------------------------
<S> <C>
Number of Issues 30
Average Market Cap $73.2 billion
---------------------------------
</TABLE>
Top Equity Holdings
<TABLE>
----------------------------------
<S> <C>
EMC Corporation 4.8%
Qiagen NV 4.0%
Marschollek Laut und Partner 3.7%
Nokia Oyj 3.3%
Television Francaise 3.1%
----------------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------------------------------------------
<C> <S> <C> <C>
Common Stocks (62%)
Consumer Cyclicals (2%)
2,000 Sony Corporation $ 229.8
Consumer Non-Cyclicals (6%)
5,000 Celltech Group
PLC 82.8
3,000 Kamps AG 98.9
2,400 Qiagen NV (b) 347.5
--------
Consumer Non-
Cyclicals 529.2
Diversified Operations (2%)
10,000 Hutchison
Whampoa 145.7
Financials (4%)
600 Marschollek Laut
und Partner 319.5
Industrial (6%)
400 Bouygues SA 255.8
2,500 Vivendi 247.8
--------
Industrial 503.6
Multimedia (5%)
4,000 Pearson PLC 138.4
400 Television
Francaise 274.4
--------
Multimedia 412.8
Technology (29%)
5,000 ARM Holdings PLC
(UK) (b) 51.2
5,000 ARM Holdings PLC
(US) (b) 158.8
800 Broadcom
Corporation (b) 137.9
4,000 Broadvision,
Inc. (b) 175.8
3,000 Cisco Systems,
Inc. (b) 208.0
3,000 EMC Corporation 416.8
1,200 Epcos AG (b) 169.5
1,600 JDS Uniphase
Corporation (b) 165.9
2,500 Lattice
Semiconductor
Corporation (b) 168.4
1,500 Network
Appliance, Inc.
(b) 110.9
2,500 Oracle
Corporation (b) 199.8
1,200 Peregrine
Systems, Inc.
(b) 28.9
400 Sap AG-Vorzug 236.3
1,500 Siebel Systems,
Inc. (b) 184.3
1,000 Transiciel SA 133.7
--------
Technology 2,546.2
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Telecommunications (8%)
2,000 Ericsson LM-B $ 178.3
2,200 Macrovision
Corporation (b) 107.5
5,000 Nokia Oyj 287.5
1,000 Nortel Networks
Corporation 113.3
---------
Telecommunications 686.6
---------
Total Common Stock (Cost -
$5,789.2) 5,373.4
Investment Companies (55%)
4,828,466 Bunker Hill Money
Market Fund 4,828.5
---------
Total (Cost - $10,617.6) (a) $10,201.9
(117%)
=========
</TABLE>
Percentages indicated are based on net assets of $8,728,151.
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 $ 178,586
Unrealized depreciation (594,354)
---------
Net unrealized depreciation $(415,768)
=========
</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>
Liabilities:
4/28/00 Euro (buy) 0.9699 $ 234,391 $(14,210)
4/28/00 Euro (buy) 0.9600 385,182 (19,620)
4/28/00 Euro (buy) 0.9251 120,856 (1,829)
5/31/00 Euro (buy) 0.9699 381,417 (5,772)
---------- --------
$1,121,846 $(41,431)
========== ========
</TABLE>
See notes to financial statements.
Semi-Annual Report 13
<PAGE>
Growth & Income Fund
The objective of the Growth & Income Fund is to provide growth of capital and
some current income. To achieve these objectives, the Fund invests approxi-
mately half of its total assets in the ten common stocks known as the "dogs of
the Dow" (stocks with the highest dividend yields). The remaining assets are
invested in one or more broad market equity-based derivative instruments, in-
cluding Standard & Poor's Depositary Receipts, DIAMONDS Trust Series I, Nasdaq-
100 Shares, and in equity index mutual funds.
Statistics
<TABLE>
-------------------------------------
<S> <C>
Number of Issues 16
Gross Weighted Dividend Yield* 3.19%
Dividends Yield/S&P 500 1.15%
</TABLE>
-------
* Prior to fund expenses
--------------------------------------------------------------------------------
Top Equity Holdings
<TABLE>
-----------------------------
<S> <C>
General Motors Corp. 6.0%
SBC Communications Inc. 5.9%
J.P. Morgan & Co. 5.4%
Eastman Kodak 5.1%
Exxon Corp. 4.8%
-----------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Common Stocks (99%)
Basic Materials (7%)
108,900 DuPont (E.I.) De
Nemours & Co. $ 5,165.9
130,600 International Paper
Co. 4,799.6
----------
Basic Materials 9,965.5
Consumer Cyclicals (7%)
91,000 General Motors
Corporation 8,519.9
36,334 Goodyear Tire &
Rubber 1,003.7
----------
Consumer Cyclicals 9,523.6
Consumer Non-Cyclicals (9%)
127,000 Eastman Kodak 7,104.1
235,157 Phillip Morris Co.,
Inc. 5,144.0
----------
Consumer Non-
Cyclicals 12,248.1
Diversified (52%)
226,000 Diamonds Trust Series
I 24,330.3
139,000 Nasdaq-100 Shares 13,066.0
179,000 S & P 500 Depository
Receipts 25,971.8
138,000 S&P MidCap Depository
Receipts 12,195.7
----------
Diversified 75,563.8
Energy (5%)
87,700 Exxon Mobil
Corporation 6,813.2
Financial (5%)
59,600 J.P. Morgan & Co. 7,651.2
Industrial (8%)
140,800 Caterpillar
International 5,552.8
75,500 Minnesota Mining &
Manufacturing Co. 6,530.8
----------
Industrial 12,083.6
Telecommunications (6%)
190,400 SBC Communications 8,341.9
----------
Total Common Stock (Cost - 142,190.9
$140,566.7)
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Investment Companies (1%)
926,135 Bunker Hill Money
Market Fund $ 926.1
----------
Total (Cost - $141,492.8) (a) $143,117.0
(100%)
==========
</TABLE>
Percentages indicated are based on net assets of $143,165,137.
(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 $ 14,905,757
Unrealized depreciation (13,281,577)
------------
Net unrealized appreciation $ 1,624,180
============
</TABLE>
14 Payden & Rygel Investment Group
<PAGE>
Market Return Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 55
Average Maturity 0.8 years
SEC Yield 6.24%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
---------------------
<S> <C>
Corporate Bonds 29%
Asset Backed 24%
Mortgage Backed 19%
Treasury/Agency 13%
Commercial Paper 8%
Cash Equivalent 7%
---------------------
</TABLE>
Equity Exposure
<TABLE>
-----------------------------
<S> <C>
S&P Futures 100%
S&P Depository Receipts 0%
-----------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<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 $ 1,987.4
1,000,000 Capital One Master
Trust,
7.30%, 4/17/06 996.0
1,892,553 Case Equipment Loan
Trust 98-A, 5.83%,
2/15/05 1,867.1
1,461,125 Comm,
6.43%, 10/16/02 1,461.1
2,505,000 Discover Card Master
Trust 98-2 A, 5.80%,
9/16/03 2,476.9
2,000,000 Distribution
Financial Services
Trust 99-1, 5.70%,
2/16/09 1,971.6
2,500,000 First USA Credit Card
Master Trust, 6.42%,
3/17/05 2,449.1
500,000 Ford 98-A D,
7.50%, 5/16/03 (b) 499.7
1,500,000 Ford 98-B,
7.50%, 11/15/03 1,497.8
2,600,000 Ford 99-B,
5.80%, 6/15/02 2,571.6
992,937 GMBS 90-5a,
6.69%, 12/25/20 992.9
2,465,901 GSMS 99,
5.29%, 11/13/13 2,465.9
619,855 Western 99A A2,
5.39%, 8/20/01 614.1
---------
Asset-Backed
Securities 21,851.2
Commercial Paper (7%)
3,000,000 American Express CP
6.02%, 5/22/00 3,000.0
4,000,000 Walt Disney CP,
5.90%, 5/1/00 4,000.0
---------
Commercial Paper 7,000.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Corporate Bonds (29%)
1,000,000 Associates
Corporation,
6.75%, 7/15/01 $ 993.7
1,500,000 Bear Stearns Co.,
Inc.,
6.63%, 3/28/03 1,495.6
2,000,000 Caterpillar Finance
Service,
5.47%, 9/12/01 1,950.0
2,000,000 Chase Credit,
6.30%, 4/15/03 1,998.4
2,000,000 Citibank Credit Card,
5.75%, 1/15/03 1,981.2
500,000 CSC Holdings, Inc.,
9.88%, 5/15/06 510.0
1,000,000 Ford Motor Credit
Co.,
7.06%, 6/6/01 997.5
1,000,000 GMAC,
6.70%, 4/30/01 995.0
500,000 Gulf Canada Resources
Limited,
9.25%, 1/15/04 500.0
2,000,000 Home Savings of
America,
6.00%, 11/1/00 1,987.5
500,000 MBNA 2000-B C,
6.71%, 7/15/05 499.9
1,000,000 Merrill Lynch & Co.,
6.02%, 5/11/01 987.5
2,000,000 Merrill Lynch & Co.,
6.16%, 4/22/02 1,992.3
1,500,000 Merrill Lynch
Hutchinson,
7.49%, 8/26/00 (b) 1,500.0
500,000 News America
Holdings,
7.45%, 6/1/00 500.0
500,000 Northwest Airlines,
Inc.,
8.52%, 4/7/04 460.0
1,000,000 Salomon Smith Barney
Holdings, 6.65%,
7/15/01 992.5
2,000,000 TCI Communication,
5.76%, 3/12/01 2,012.0
</TABLE>
See notes to financial statements.
Semi-Annual Report 15
<PAGE>
Market Return Fund continued
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
1,000,000 Transamerica Finance
Corporation, 5.55%,
2/15/01 $ 987.5
500,000 Unisys Corporation,
11.75%, 10/15/04 540.0
1,000,000 Washignton Mutual,
6.93%, 1/25/40 1,000.0
2,000,000 Worldcom, Inc.,
6.13%, 8/15/01 1,972.5
---------
Corporate Bonds 26,853.1
Mortgage-Backed Securities (18%)
2,480,158 Citicorp Mortgage
Securities, Inc.,
5.75%, 3/25/09 2,450.1
1,980,258 DLJ Mortgage
Acceptance
Corporation, 7.35%,
9/18/03 1,980.1
76,721 Drexel Burnham
Lambert CMO Trust,
6.44%, 5/1/16 76.7
33,094 FHLMC #1519,
6.03%, 1/15/06 33.1
1,344,796 FHLMC #846423,
7.39%, 5/1/25 1,371.7
990,509 FHLMC,
5.34%, 7/15/20 991.4
3,000,000 FHLMC,
5.75%, 11/15/18 2,921.2
743,427 FHLMC,
6.38%, 7/15/07 740.8
1,454,792 FNMA #323682,
7.19%, 8/1/27 1,483.9
847,367 FNMA 94-87,
6.14%, 3/25/09 849.7
1,496,582 FNMA ARM #490626,
5.74%, 11/1/28 1,492.9
617,614 FNMA G 94-7 F,
6.14%, 12/17/19 619.3
722,453 FNMA,
6.39%, 9/25/22 728.8
1,257,651 Prudential Home
Mortgage,
5.90%, 12/15/23 1,235.5
---------
Mortgage-Backed
Securities 16,975.2
U.S. Government Agency (8%)
7,000,000 FHLMC,
5.95%, 5/25/00 6,972.2
U.S. Treasury (5%)
4,000,000 U.S. Treasury Note,
5.63%, 2/28/01 3,974.3
500,000 U.S. Treasury Note,
6.25%, 4/30/01 499.1
---------
U.S. Treasury 4,473.4
Investment Companies (8%)
7,160,947 Bunker Hill Money
Market Fund 7,161.0
---------
Total (Cost - $91,835.3) (a)
(99%) $91,286.1
=========
</TABLE>
Percentages indicated are based on net assets of $92,035,202.
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 $ 35,402
Unrealized depreciation (584,622)
---------
Net unrealized depreciation $(549,220)
=========
</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 April 30, 2000, 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>
241 S&P 500 Futures Jun-00 87,965,000 $(6,658,215)
===========
</TABLE>
16 Payden & Rygel Investment Group
<PAGE>
U.S. Growth Leaders Fund
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 is 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.
Statistics
<TABLE>
---------------------------------
<S> <C>
Number of Issues 49
Average Market Cap $66.3 billion
---------------------------------
</TABLE>
Top Equity Holdings
<TABLE>
--------------------------------
<S> <C>
Juniper Networks 3.1%
EMC Corp. 2.7%
Exodus Communications Inc. 2.6%
General Electric Co. 2.4%
Sun Microsystems 2.4%
--------------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
Common Stocks (88%)
Consumer Cyclicals (4%)
5,650 The Walt Disney Co. $ 244.8
20,670 Park Place
Entertainment (b) 264.8
3,600 Royal Caribbean
Cruises Ltd 74.9
-------
Consumer Cyclicals 584.5
Capital Goods (3%)
2,240 General Electric Co. 352.2
Energy (2%)
5,700 El Paso Energy
Corporation 242.3
Health Care (18%)
3,680 Abgenix, Inc. (b) 329.6
1,650 Affymetrix, Inc. (b) 222.9
4,960 Cardinal Health, Inc. 273.1
7,140 Celgene Corporation
(b) 336.0
4,990 Chiron Corporation (b) 225.8
3,430 Cor Therapeutics,
Inc. (b) 261.3
4,110 Forest Laboratories,
Inc. (b) 345.5
1,580 Genentech, Inc. (b) 184.9
8,070 Sybron International
Corporation (b) 251.2
-------
Health Care 2,430.3
Technology (46%)
2,840 Altera Corporation (b) 290.4
1,780 Apple Computer, Inc.
(b) 220.8
1,050 Broadcom Corporation
(b) 181.0
1,420 Brocade
Communications
Systems (b) 176.1
2,020 Ciena Corporation (b) 249.7
4,800 Cisco Systems, Inc.
(b) 332.8
2,850 EMC Corporation (b) 396.0
4,260 Exodus
Communications,
Inc. (b) 376.7
7,100 Harris Corporation 229.4
2,080 I2 Technologies, Inc.
(b) 268.8
1,270 Inktomi Corporation
(b) 195.5
1,850 Intel Corporation 234.6
1,740 JDS Uniphase
Corporation (b) 180.4
2,140 Juniper Networks,
Inc. (b) 455.2
1,840 Lexmark International
Group, Inc. (b) 217.1
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
4,280 Oracle Corporation (b) $ 342.1
11,420 Peoplesoft, Inc. (b) 159.2
1,280 PMC Sierra, Inc. (b) 245.6
3,290 Rational Software
Corporation (b) 280.1
3,830 Sun Microsystems,
Inc. (b) 352.1
1,510 Texas Instruments,
Inc. 245.9
4,400 Verticalnet, Inc. (b) 237.6
1,200 Yahoo!, Inc. (b) 156.3
---------
Technology 6,023.40
Telecommunications (15%)
22 Cable & Wireless Hkt
Ltd 0.5
6,320 Crown Castle
International
Corporation (b) 242.5
4,640 L-3 Communications
Holdings, Inc. (b) 247.1
3,300 Lucent Technologies 205.2
8,490 McLeodusa, Inc. (b) 212.3
7,710 Nextel Partners, Inc.
(b) 169.1
1,930 Nortel Networks
Corporation 218.6
1,870 Voicestream Wireless
Corporation (b) 185.1
5,360 Western Wireless
Corporation (b) 266.3
4,670 Williams
Communications Group
(b) 172.8
---------
Telecommunications 1,919.50
---------
Total Common Stocks (Cost -
$10,869.2) 11,552.2
U.S. Government Agency (2%)
300,000 FNMA Discount Note,
6.04%, 7/6/00 296.7
Investment Companies (10%)
1,343,933 Bunker Hill Money
Market Fund 1,343.9
---------
Total (Cost - $12,509.8) (a) $13,192.8
(100%)
=========
</TABLE>
See notes to financial statements.
Semi-Annual Report 17
<PAGE>
U.S. Growth Leaders Fund continued
Percentages indicated are based on net assets of $13,167,605.
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $1,443,937
Unrealized depreciation (760,945)
----------
Net unrealized appreciation $ 682,992
==========
</TABLE>
(b) Non-income producing security.
At April 30, 2000, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Number Unrealized
of Contract Expiration Current Appreciation
Contracts Type Date Value (Depreciation)
--------------------------------------------------------------
<S> <C> <C> <C> <C>
3 S&P 500 Future Jun-00 $1,095,000 $9,979
======
</TABLE>
18 Payden & Rygel Investment Group
<PAGE>
Small Cap Leaders Fund
The objective of the Small Cap Leaders Fund is to realize long-term capital ap-
preciation. The Fund invests primarily in common stocks of small capitalization
U.S. companies that are considered to have superior growth potential. The mar-
ket capitalization of these companies is less than that of the 1,000 largest
publicly traded U.S. companies. The Fund may invest up to 20% of its total as-
sets in securities of foreign companies.
Statistics
<TABLE>
--------------------------------
<S> <C>
Number of Issues 60
Average Market Cap $1.5 billion
--------------------------------
</TABLE>
Top Equity Holdings
<TABLE>
---------------------------------
<S> <C>
Mercury Interactive Corp. 3.1%
Hamilton Bancorp Inc. 2.6%
Medquist 2.6%
ResMed, Inc. 2.6%
Prepaid Legal Services Inc. 2.5%
---------------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
Common Stocks (90%)
Basic Materials (6%)
13,400 Gibraltar Steel
Corporation $ 231.2
121,000 Kinross Gold
Corporation (b) 158.8
26,520 RTI International
Metals, Inc. (b) 280.1
16,890 Stillwater Mining Co.
(b) 472.9
--------
Basic Materials 1,143.0
Capital Goods (5%)
16,550 Belden Wire and
Cable, Inc. 491.3
19,800 McDermott
International, Inc. 160.9
8,700 Precision Castparts
Corporation 363.2
--------
Capital Goods 1,015.4
Consumer Cyclicals (7%)
2,290 Catalina Marketing
Corporation (b) 231.9
12,890 Elcor Corporation 410.1
15,200 Factory 2-U Stores,
Inc. (b) 508.2
8,600 Rex Stores
Corporation (b) 216.1
--------
Consumer Cyclicals 1,366.3
Consumer Non-Cyclicals (8%)
6,100 Cousins Properties,
Inc. 239.4
4,380 Diamond Technology
Partners, Inc. (b) 346.6
9,200 Polaroid Corporation 185.7
17,000 Pre-Paid Legal
Services, Inc. (b) 544.0
5,700 Salton, Inc. 244.7
--------
Consumer Non-
Cyclicals 1,560.4
Energy (9%)
25,830 Friede Goldman
Halter, Inc. (b) 159.8
7,680 Kaneb Pipe Line
Partners, L.P. 199.7
11,300 Nuevo Energy Co. (b) 197.7
40,100 Ocean Energy, Inc. (b) 518.8
15,840 Tuboscope, Inc. (b) 275.2
36,200 USEC, Inc. 169.7
8,150 Valero Energy
Corporation 236.4
--------
Energy 1,757.3
Financial (3%)
31,440 Hamilton Bancorp,
Inc. (b) 577.7
Health Care (18%)
9,480 Biovail Corporation
(b) 452.1
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
13,170 Jones Pharma, Inc. $ 379.5
6,550 King Pharmaceuticals,
Inc. (b) 323.4
16,270 MedQuist, Inc. (b) 576.6
16,780 ResMed, Inc. (b) 570.5
7,440 Techne Corporation (b) 529.2
13,460 Trigon Healthcare,
Inc. (b) 483.7
4,500 Zoll Medical
Corporation (b) 198.8
-------
Health Care 3,513.8
Technology (21%)
6,060 Advent Software, Inc.
(b) 318.2
6,100 Alpha Industries,
Inc. 317.2
2,700 Broadvision, Inc. (b) 118.6
3,800 Cognizant Technology
Solutions Corporation
(b) 174.3
8,000 ESS Technology, Inc.
(b) 104.0
26,560 General Cable
Corporation 204.2
3,340 Inet Technologies,
Inc. (b) 144.0
5,300 Mattson Technology,
Inc. (b) 260.4
18,300 Mechanical
Technology, Inc. (b) 323.7
7,440 Mercury Interactive
Corporation (b) 669.6
13,230 MMC Networks, Inc. (b) 350.6
4,000 Netegrity, Inc. (b) 177.5
9,020 Peregrine Systems,
Inc. (b) 217.0
4,400 QRS Corporation (b) 145.2
1,000 Sandisk Corporation
(b) 91.6
3,300 Sawtek, Inc. (b) 157.8
5,250 TranSwitch
Corporation (b) 462.3
5,300 Zomax, Inc. (b) 250.8
-------
Technology 4,487.0
Telecommunications (7%)
9,500 L-3 Communications
Holdings, Inc. (b) 505.9
4,800 Macrovision
Corporation (b) 234.6
3,380 Polycom, Inc. (b) 267.4
7,750 Time Warner Telecom,
Inc. 424.3
-------
Telecommunications 1,432.2
Transportation (5%)
15,150 Forward Air
Corporation (b) 520.8
25,000 Frontline LTD 223.5
10,700 Knightsbridge Tankers
LTD 199.3
-------
Transportation 943.6
</TABLE>
See notes to financial statements.
Semi-Annual Report 19
<PAGE>
Small Cap Leaders Fund continued
Small Cap Leaders Fund
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Utilities (1%)
11,740 California Water
Service $ 273.7
---------
Total Common Stocks (Cost -
$16,426.9) 18,070.4
U.S. Government Agency (1%)
200,000 FNMA Discount Note,
6.04%, 7/6/00 197.8
Investment Companies (9%)
1,831,825 Bunker Hill Money
Market Fund 1,831.8
---------
Total (Cost - $18,456.6) (a) $20,100.0
(100%)
=========
</TABLE>
Percentages indicated are based on net assets of $20,044,223.
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 $ 2,750,264
Unrealized depreciation (1,106,809)
-----------
Net unrealized appreciation $ 1,643,455
===========
</TABLE>
(b) Non-income producing security.
At April 30, 2000, 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>
3 Russell 2000 Index Future Jun-00 $763,500 $64,479
=======
</TABLE>
20 Payden & Rygel Investment Group
<PAGE>
Bunker Hill Money Market Fund
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 in-
vests only in high-quality corporate, bank and government debt securities with
maturities of 397 days or less.
Statistics
<TABLE>
-------------------------
<S> <C>
Number of Issues 26
Average Maturity 68 days
SEC Yield 6.10%
-------------------------
</TABLE>
Portfolio Composition
<TABLE>
-------------------------
<S> <C>
Commercial Paper 58%
Repurchase Agreement 26%
Corporate Notes 13%
Agency 3%
-------------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Commercial Paper (60%)
3,000,000 Aegon CP,
5.55%, 2/15/01 $ 2,973.1
8,000,000 American Express CP,
6.02%, 5/23/00 8,000.0
8,000,000 American General
Finance CP,
6.02%, 5/23/00 8,000.0
2,000,000 Associates CP,
6.45%, 9/15/00 1,999.9
8,000,000 Chevron CP,
5.98%, 5/8/00 8,000.0
5,000,000 Dupont Ei De Nemours,
6.00%, 5/9/00 4,993.4
7,000,000 Ford Motor Credit CP,
6.00%, 5/22/00 7,000.0
8,000,000 GE Capital CP,
6.03%, 5/23/00 8,000.0
6,000,000 GMAC CP,
6.02%, 5/2/00 6,000.0
2,000,000 Goldman Sachs CP,
6.26%, 11/28/00 1,997.5
7,000,000 Merck CP,
6.01%, 5/17/00 6,981.3
3,000,000 Merrill Lynch CP,
5.39%, 2/8/01 2,971.5
5,000,000 Merrill Lynch CP,
6.00%, 5/24/00 4,980.8
3,863,299 Nissan Auto CP,
6.13%, 2/15/01 3,863.3
6,000,000 Pfizer, Inc. CP,
5.98%, 5/9/00 5,992.0
6,000,000 Sara Lee CP,
6.02%, 5/12/00 5,989.0
8,000,000 Wal-Mart CP,
5.99%, 5/23/00 7,970.7
---------
Commercial Paper 95,712.5
Corporate Notes (13%)
4,155,010 Americredit 2000,
6.04%, 2/5/01 4,155.0
1,583,241 Associates
Manufactured Housing,
5.61%, 10/15/00 (a) 1,583.2
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
5,000,000 Bank of America
Corporate Note,
6.75%, 3/23/01 $ 5,000.0
3,000,000 Caterpillar Finance
Service,
6.95%, 11/1/00 3,006.6
500,000 International Lease
Finance Corporate
Note, 6.45%, 9/11/00 500.6
2,500,000 John Deere Corporate
Note,
5.79%, 1/18/01 2,486.0
5,000,000 Walt Disney
Corporate Note,
5.14%, 2/8/01 4,943.7
----------
Corporate Notes 21,675.1
Repurchase Agreement (28%)
44,000,000 Morgan Stanley Tri-
Party,
5.70%, 5/1/00 44,000.0
U.S. Government Agency (3%)
5,000,000 FNMA Discount Note,
5.78%, 6/29/00 4,952.6
----------
Total (Cost - $166,340.2) (a)
(104%) $166,340.2
==========
</TABLE>
Percentages indicated are based on net assets of $159,459,044.
(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.
Semi-Annual Report 21
<PAGE>
Limited Maturity Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 52
Average Maturity 0.8 years
SEC Yield 6.44%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
-------------------------------
<S> <C>
Corporate 32%
Commercial Paper 26%
Asset Backed 18%
Mortgage Backed Securities 16%
Treasury/Agency 5%
Cash Equivalent 3%
-------------------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 70%
AA 8%
A 18%
BBB 4%
--------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------------------------------------------------
<C> <S> <C>
Asset-Backed Securities (18%)
3,000,000 Americredit
Automobile
Receivables Trust,
6.54%, 10/14/02 $ 2,990.7
2,300,000 Capital Auto
Receivables Asset
Trust, 6.06%, 6/15/02 2,285.6
1,892,553 Case Equipment Loan
Trust 98-A, 5.83%,
2/15/05 1,867.1
1,464,515 Chase Manhattan Auto,
5.75%, 10/15/01 1,461.1
3,050,000 Citibank Credit Card
Master Trust, Inc.,
5.85%, 4/10/03 3,013.1
2,000,000 Deutsche Floorplan
Receivables Master
Trust 2000-1, 6.60%,
4/15/05 2,000.0
3,600,000 Distribution
Financial Services
Trust 99-1, 5.70%,
2/16/09 3,548.9
2,500,000 GMAC 99-1, 5.58%, 6/15/02 2,473.5
4,931,802 GSMS 99, 5.29%, 11/13/13 4,931.8
4,000,000 Nissan Auto
Receivables Owner
Trust, 6.73%, 5/15/02 3,989.2
929,783 Western 99A A2,
5.39%, 8/20/01 921.1
---------
Asset-Backed
Securities 29,482.1
Commercial Paper (26%)
7,000,000 American Express CP,
5.99%, 5/5/00 7,000.0
7,000,000 American General
Finance CP,
6.02%, 5/23/00 7,000.0
7,000,000 Coca Cola CP,
6.02%, 5/23/00 6,974.2
5,000,000 Dupont Ei De Nemours,
6.00%, 5/9/00 4,993.3
6,000,000 Ford Motor Credit CP,
6.00, 5/10/00 6,000.0
2,200,000 GMAC CP,
6.60%, 1/17/01 2,200.2
7,000,000 Sara Lee CP, 6.00,
5/15/00 6,983.7
---------
Commercial Paper 41,151.4
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Corporate Bonds (32%)
2,000,000 Ahmanson Finance
Note, 5.88%, 2/27/01 $1,980.0
2,500,000 DaimlerChrysler Na
Holding Co., 6.67%,
2/15/02 2,465.6
2,000,000 Disney Global Bond,
6.38%, 3/30/01 1,982.5
3,000,000 GMAC,
6.65%, 4/25/01 2,985.0
1,000,000 IBM Credit
Corporation,
5.05%, 1/22/01 986.3
1,250,000 Inter-American
Development Bank,
5.125%, 2/22/01 1,231.3
1,300,000 International Lease
Finance Corporation,
5.88%, 1/15/01 1,288.6
5,000,000 John Deere Capital
Corporation, 6.75%,
3/7/01 4,981.2
2,600,000 Keycorp,
6.75%, 5/29/01 2,580.5
2,000,000 Korea Development
Bank, 7.125%, 9/17/01 1,977.5
350,000 MBNA Corporation,
6.50%, 9/15/00 349.1
2,000,000 Merrill Lynch and
Co.,
5.39%, 2/8/01 1,975.0
3,000,000 Paccar Financial
Corporation,
5.75%, 2/15/01 2,966.3
2,990,260 SBC Glacier Finance
Ltd, 5.88%, 9/10/02 2,973.8
5,000,000 TCI Communication,
5.76%, 3/12/01 5,030.0
2,000,000 Time Warner, Inc.,
6.10%, 12/30/01 1,955.0
3,000,000 Transamerica Finance
Corporation, 5.55%,
2/15/01 2,962.5
5,000,000 Union Acceptance
Corporation,
6.72%, 12/9/02 4,988.5
</TABLE>
22 Payden & Rygel Investment Group
<PAGE>
Limited Maturity Fund
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
5,000,000 WorldCom, Inc.,
6.13%, 8/15/01 $ 4,931.2
---------
Corporate Bonds 50,589.9
Mortgage-Backed Securities (16%)
4,946,476 Countrywide Home
Loans, Inc.,
7.28%, 4/1/28 5,070.1
2,557,833 DLJ Mortgage
Acceptance
Corporation, 7.35%,
9/18/03 2,557.7
911,800 FHLMC,
5.93%, 4/15/08 908.8
3,137,793 FNMA #323682,
7.19%, 8/1/27 3,200.5
1,656,849 FNMA 97-17f,
6.05%, 11/18/25 1,655.7
4,313,306 FNMA,
6.50%, 4/18/22 4,266.9
592,896 FNMA,
9.50%, 9/1/24 621.8
2,632,380 GNMA #78075,
8.00%, 12/15/27 2,640.6
2,277,738 GNMA,
6.58%, 11/16/29 2,277.1
1,898,298 GNMA,
6.83%, 6/16/26 1,903.0
1,024,652 Headlands Mortgage,
7.75%, 3/25/12 1,020.6
---------
Mortgage-Backed
Securities 26,122.8
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
U.S. Government Agency (3%)
5,000,000 FNMA Discount Note,
6.04%, 7/6/00 $ 4,944.6
U.S. Treasury (2%)
1,000,000 U.S. Treasury Note,
6.25%, 8/31/00 999.5
2,000,000 U.S. Treasury Note,
6.50%, 8/31/01 1,996.0
----------
U.S. Treasury 2,995.5
Investment Companies (3%)
5,176,658 Bunker Hill Money
Market Fund 5,176.7
----------
Total (Cost - $160,877.5) (a)
(100%) $160,463.0
==========
</TABLE>
Percentages indicated are based on net assets of $160,557,589.
(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 $ 60,276
Unrealized depreciation (474,725)
---------
Net unrealized depreciation $(414,449)
=========
</TABLE>
See notes to financial statements.
Semi-Annual Report 23
<PAGE>
Short Bond Fund
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 primarily 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 three years.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 35
Average Maturity 1.8 years
SEC Yield 6.51%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
-------------------------------
<S> <C>
Treasury/Agency 44%
Corporate 29%
Mortgage Backed Securities 15%
Asset Backed Securities 6%
Commercial Paper 3%
Cash Equivalent 3%
-------------------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 65%
AA 9%
A 19%
BBB 7%
--------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Asset-Backed Securities (6%)
1,000,000 Capital One Master
Trust, 7.30%, 4/17/06 $ 996.0
1,500,000 Ford 98-B Class D,
7.50%, 11/15/03 1,497.7
1,398,563 Premier Auto Trust
98-2 A3,
5.77%, 1/6/02 1,394.6
--------
Asset-Backed
Securities 3,888.3
Commercial Paper (3%)
2,000,000 Dupont Ei De Nemours,
6.00%, 5/9/00 1,997.3
Corporate Bonds (29%)
2,000,000 Caterpillar Finance
Services,
6.95% , 10/10/00 2,000.2
1,000,000 Ford Motor Credit
Global,
6.50%, 2/28/02 981.3
1,000,000 General Electric
Capital Corporation,
6.01%, 4/30/01 990.0
1,150,000 GMAC,
8.50%, 1/1/03 1,171.6
1,000,000 Honeywell, Inc.,
6.75%, 3/15/02 986.2
1,000,000 International Lease
Corporation, 6.45%,
9/11/00 998.4
1,000,000 John Deere Capital
Corporation, 5.85%,
1/15/01 991.2
1,000,000 Korea Development
Bank, 7.13%, 9/17/01 988.8
1,000,000 MBNA Corporation,
6.15%, 10/1/03 935.0
1,000,000 Merrill Lynch & Co.,
5.93%, 3/23/01 990.0
1,500,000 Merrill Lynch
Hutchinson,
7.49%, 8/26/00 (b) 1,500.0
1,000,000 Salomon, Inc.,
6.88%, 12/15/03 983.8
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
2,000,000 TCI Communication,
5.76%, 3/12/01 (b) $ 2,012.0
1,000,000 Time Warner, Inc.,
6.10%, 12/30/01 977.5
1,500,000 Wal-Mart Stores,
6.75%, 5/15/02 1,483.1
1,000,000 WorldCom, Inc.,
6.13%, 8/15/01 986.3
---------
Corporate Bonds 18,975.4
Mortgage-Backed Securities (15%)
1,371,374 CS First Boston
Mortgage Securities
97-C2, 6.40%,
2/17/04 1,338.5
2,123,748 FHLMC 2012F,
6.09%, 4/15/26 2,115.6
1,040,892 FHLMC 1857FB,
6.14%, 3/15/18 1,043.2
1,656,849 FNMA 97-17F,
6.05%, 11/18/25 1,655.7
1,237,283 FNMA 97-32,
6.29, 4/25/27 1,244.6
1,866,120 FNMA ARM 514721,
6.12%, 9/1/29 1,838.1
676,736 Headlands Mortgage
1997-1A2,
7.75%, 3/25/12 674.0
88,248 Residential Funding
Corp. 93-539A1,
6.25%, 10/25/23 88.3
---------
Mortgage-Backed
Securities 9,998.0
U.S. Government Agency (5%)
3,000,000 FHLMC,
5.95%, 5/25/00 2,988.1
U.S. Treasury (39%)
6,700,000 U.S. Treasury Note,
6.13%, 12/31/01 6,639.5
1,000,000 U.S. Treasury Note,
6.25%, 6/30/02 991.3
14,000,000 U.S. Treasury Note,
6.50%, 3/31/02 13,946.8
</TABLE>
24 Payden & Rygel Investment Group
<PAGE>
Short Bond Fund
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
3,500,000 U.S. Treasury Note,
6.50%, 8/31/01 $ 3,493.0
500,000 U.S. Treasury Note,
7.25%, 8/15/04 512.0
---------
U.S. Treasury 25,582.6
Investment Companies (3%)
2,218,587 Bunker Hill Money 2,218.6
Market Fund
---------
Total (Cost - $66,172.3) (a)
(100%) $65,648.3
=========
</TABLE>
Percentages indicated are based on net assets of $65,952,674.
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 $ 34,571
Unrealized depreciation (558,514)
---------
Net unrealized depreciation $(523,943)
=========
</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 April 30, 2000, the Fund's open futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
Number of Contract Expiration Current Appreciation
Contracts Type Date Value (Depreciation)
----------------------------------------------------------------------
<C> <S> <C> <C> <C>
U.S. Treasury 2 Year
48 Note Future May-00 $9,467,250 $(49,521)
========
</TABLE>
See notes to financial statements.
Semi-Annual Report 25
<PAGE>
U.S. Government Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 23
Average Maturity 2.6 years
SEC Yield 6.09%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
--------------------
<S> <C>
Mortgage Backed 48%
Agency 34%
Treasury 16%
Cash Equivalent 2%
--------------------
</TABLE>
Credit Quality
<TABLE>
---------
<S> <C>
AAA 100%
---------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Mortgage-Backed Securities (48%)
5,000,000 FHLMC,
5.75%, 5/15/19 $ 4,892.3
2,493,096 FHLMC CMO,
6.09%, 4/15/26 2,483.6
4,000,000 FHLMC,
6.00%, 10/15/18 3,922.4
3,000,000 FHLMC,
5.75%, 11/15/09 2,967.2
3,539,000 FNMA 93-103 PG,
6.25%, 6/25/19 3,491.9
4,010,000 FNMA,
6.00%, 5/25/08 3,835.7
3,584,104 FNMA,
6.50%, 4/18/22 3,545.5
2,300,000 FNMA 97-35 PC,
6.75%, 5/18/18 2,291.4
256,089 FNMA 97-67 FC,
5.99%, 12/18/19 255.7
1,609,260 FNMA ARM 323790,
6.40%, 5/1/29 1,564.0
2,381,783 FNMA #380459,
6.27%, 7/1/05 2,264.1
1,994,870 FNMA #421914,
5.92%, 3/12/28 1,937.2
---------
Mortgage-Backed
Securities 33,451.0
U.S. Government Agency (34%)
3,000,000 FHLB,
5.13%, 9/15/03 2,815.4
4,000,000 FHLB,
6.75%, 2/15/02 3,975.6
5,000,000 FHLMC,
5.50%, 5/15/02 4,844.9
5,500,000 FHLMC,
5.75%, 7/15/03 5,266.0
3,000,000 FNMA,
5.25%, 1/15/03 2,858.3
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
4,000,000 FNMA,
6.50%, 8/15/04 $ 3,886.3
---------
U.S. Government
Agency 23,646.5
U.S. Treasury Notes (16%)
3,000,000 U.S. Treasury Note,
5.88%, 11/30/01 2,963.2
1,000,000 U.S. Treasury Note,
6.13%, 12/31/01 991.0
3,000,000 U.S. Treasury Note,
6.25%, 8/31/02 2,972.9
4,500,000 U.S. Treasury Note,
6.00%, 8/15/04 4,406.9
---------
U.S. Treasury Notes 11,334.0
Investment Companies (1%)
748,724 Bunker Hill Money
Market Fund 748.7
---------
Total (Cost - $70,271.3) (a) $69,180.2
(99%)
=========
</TABLE>
Percentages indicated are based on net assets of $69,569,390.
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 $ 15,764
Unrealized depreciation (1,106,862)
-----------
Net unrealized depreciation $(1,091,098)
===========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
26 Payden & Rygel Investment Group
<PAGE>
GNMA Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 25
Average Maturity 8.5 years
SEC Yield 7.36%
---------------------------
</TABLE>
Coupon Mix
<TABLE>
------------------
<S> <C>
6.00% 5%
6.50% 27%
7.00% 28%
7.50% 16%
8.00% 14%
Other coupons 10%
------------------
</TABLE>
Portfolio Composition
<TABLE>
--------------------
<S> <C>
GNMA 82%
Other Agency 16%
Cash Equivalent 2%
--------------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Mortgage-Backed Securities
(109%)
1,679,879 FNMA 1992-16 KC,
7.00%, 11/25/00 $ 1,674.7
3,844,605 GNMA #2631,
7.00%, 8/20/28 3,681.2
5,420,910 GNMA #2729,
6.50%, 3/20/29 5,055.0
4,305,316 GNMA #2713,
6.00%, 2/20/29 3,888.2
7,897,830 GNMA #2824,
7.00%, 10/20/29 7,562.2
7,905,623 GNMA #2809,
7.00%, 9/20/29 7,569.6
5,491,664 GNMA #473045,
6.50%, 7/15/29 5,145.0
3,269,614 GNMA #473017,
6.50%, 7/15/29 3,063.2
2,496,983 GNMA #494839,
6.50%, 6/15/29 2,339.3
7,566,203 GNMA #507768,
6.50%, 4/15/29 7,088.5
11,953,354 GNMA #518584,
7.50%, 11/15/29 11,755.3
2,816,805 GNMA #780852,
6.50%, 9/15/13 2,707.7
2,838,595 GNMA #780759,
6.50%, 4/15/13 2,728.6
5,500,000 GNMA TBA,
7.50%, 3/15/27 (b) 5,405.5
16,000,000 GNMA TBA,
8.00%, 1/15/27 (b) 16,029.9
10,000,000 GNMA II TBA,
7.00%, 10/15/29 (b) 9,575.0
3,152,777 GNMA, 7.00%, 9/20/17 3,144.7
1,314,567 GNMA 96-6 PC,
6.50%, 5/16/12 1,311.1
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
868,522 GNMA 96-6 A,
6.50%, 10/16/08 $ 865.3
4,555,475 GNMA, 6.58%,
11/16/29 4,554.1
4,700,705 GNMA, 6.68%,
11/16/29 4,727.0
2,847,447 GNMA, 6.83%, 6/16/26 2,854.6
----------
Mortgage-Backed
Securities 112,725.7
U.S. Government Agency (19%)
15,000,000 FHLMC, 6.02%,
6/13/00 14,892.1
5,000,000 FHLMC, 5.84%, 5/9/00 4,993.5
----------
U.S. Government
Agency 19,885.6
Investment Companies (3%)
2,650,959 Bunker Hill Money
Market Fund 2,651.0
----------
Total (Cost - $136,375.4) (a)
(131%) $135,262.3
==========
</TABLE>
Percentages indicated are based on net assets of $103,564,220.
(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 $ 30,019
Unrealized depreciation (1,143,068)
-----------
Net unrealized depreciation $(1,113,049)
===========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
See notes to financial statements.
Semi-Annual Report 27
<PAGE>
Investment Quality Bond Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 38
Average Maturity 9.1 years
SEC Yield 7.04%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
---------------------
<S> <C>
Mortgage Backed 46%
Corporate 21%
Treasury/Agency 17%
Commercial Paper 10%
Asset Backed 5%
Cash Equivalent 1%
---------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 68%
AA 13%
A 17%
BBB 2%
--------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Asset-Backed Securities (7%)
2,220,000 MBNA Master Credit
Card Trust, 6.60%,
11/15/04 $ 2,205.1
1,579,992 Structured Asset
Notes Transactions,
7.16%, 10/28/03 1,532.6
5,000,000 WFS Financial Owner
Trust,
5.55%, 2/20/03 4,938.5
---------
Asset-Backed
Securities 8,676.2
Commercial Paper (15%)
6,000,000 American Express CP,
6.02%, 5/4/00 6,000.0
6,000,000 Emerson Electric CP,
6.03%, 6/2/00 5,967.8
6,000,000 Ford Motor Credit
CP,
6.03%, 5/10/00 6,000.0
---------
Commercial Paper 17,967.8
Corporate Bonds (32%)
1,050,000 Citicorp,
6.65%, 5/15/00 1,050.0
4,000,000 Duke Capital
Corporation,
7.50%, 10/1/09 3,865.0
4,000,000 Grand Metropolitan
Investment,
8.63%, 8/15/01 4,060.0
10,000,000 Merrill Lynch
Hutchinson,
7.49%, 8/26/00 (c) 10,000.0
606,448 Navistar Financial
Corporation,
6.75%, 3/15/02 605.8
1,500,000 Salomon, Inc.,
5.88%, 7/23/01 1,501.2
1,500,000 Salomon, Inc.,
7.25%, 5/1/01 1,500.0
3,000,000 Sun Microsystems,
Inc.,
7.50%, 8/15/06 2,966.3
4,000,000 TCI Communication,
5.76%, 3/12/01 4,024.0
4,000,000 Tele-Communications,
Inc.,
8.25%, 1/15/03 4,065.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
4,000,000 Wal-Mart Stores,
6.75%, 5/15/02 $ 3,955.0
2,000,000 Wells Fargo & Co.,
6.63%, 7/15/04 1,932.5
---------
Corporate Bonds 39,524.8
Mortgage-Backed Securities (68%)
3,600,000 Bear Stearns
Commercial Mortgage
Securities, 7.78%,
2/15/10 3,624.8
1,368,029 Bear Stearns
Mortgage Securities,
Inc., 6.51%, 1/25/07 1,335.2
3,480,000 DLJ Commercial
Mortgage
Corporation,
7.30%, 6/1/09 3,386.0
6,100,000 FNMA TBA,
6.00%, 8/1/29 (b) 5,522.4
7,300,000 FNMA TBA,
7.00%, 5/1/28 (b) 6,978.3
8,000,000 FNMA TBA,
7.50%, 5/1/28 (b) 7,822.5
10,000,000 FNMA,
6.63%, 9/15/09 9,525.0
471,285 GNMA #399001,
8.00%, 12/15/26 472.5
3,342,565 GNMA #48928,
8.00%, 6/15/28 3,350.9
1,855,731 GNMA #780743,
8.00%, 12/15/26 1,861.5
18,300,000 GNMA TBA,
6.50%, 6/1/29 (b) 17,133.4
15,000,000 GNMA TBA,
7.00%, 9/15/29 (b) 14,418.8
7,400,000 GNMA TBA,
7.50%, 3/15/27 (b) 7,272.8
748,852 GNMA,
8.00%, 7/15/25 750.7
---------
Mortgage-Backed
Securities 83,454.8
</TABLE>
28 Payden & Rygel Investment Group
<PAGE>
Investment Quality Bond Fund
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
U.S. Government Agency (8%)
10,000,000 FHLMC,
5.84%, 5/11/00 9,983.8
U.S. Treasury (17%)
9,450,000 U.S. Treasury Bond,
6.25%, 8/15/23 9,454.5
2,000,000 U.S. Treasury Note,
5.63%, 05/15/08 1,901.2
6,250,000 U.S. Treasury Note,
6.63%, 5/15/07 6,296.4
2,425,000 U.S. Treasury Note,
7.50%, 2/15/05 2,514.5
----------
U.S. Treasury 20,166.6
Investment Companies (1%)
1,711,142 Bunker Hill Money
Market Fund 1,711.1
----------
Total (Cost - $184,558.1) (a)
(148%) $181,485.1
==========
</TABLE>
Percentages indicated are based on net assets of $122,635,922.
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 $ 27,730
Unrealized depreciation (3,100,674)
-----------
Net unrealized depreciation $(3,072,944)
===========
</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.
At April 30, 2000, 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>
201 U.S. Treasury 10 Year
Note Future May-00 $19,487,578 $192,401
136 U.S. Treasury Bond
Future May-00 13,132,500 42,422
--------
$234,823
========
</TABLE>
See notes to financial statements.
Semi-Annual Report 29
<PAGE>
Total Return Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 101
Average Maturity 9.5 years
SEC Yield 7.60%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
---------------------
<S> <C>
Mortgage Backed 42%
Treasury/Agency 22%
Commercial Paper 17%
Corporate 11%
Asset Backed 5%
Other 3%
---------------------
</TABLE>
Credit Quality
<TABLE>
----------------
<S> <C>
AAA 84%
AA 2%
A 4%
BBB 5%
BB or below 5%
----------------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
<C> <S> <C> <C> <C> <C>
------------------------------------------------------
Asset-Backed Securities (8%)
750,000 Ares Leveraged
Bond,
9.77%, 11/30/04
(c) $ 639.4
1,652,359 Chase Manhattan,
6.40%, 7/16/01 1,633.2
3,000,000 Citibank Credit
Card,
5.75%, 1/15/03 2,971.8
3,000,000 Evergreen
Funding,
7.03%, 11/15/10
(c) 1,200.0
6,000,000 First USA Credit
Card Master
Trust,
6.42%, 3/17/05 5,877.8
2,000,000 Los Angeles
Funding,
7.66%, 12/15/26
(c) 1,855.0
150,000 PTC
International
Finance,
11.25%, 12/1/09 153.0
3,000,000 Salomon, Inc.,
5.88%, 7/23/01 3,002.5
2,000,000 Standard
Chartered,
5.28%, 12/29/49 1,340.0
792,993 Structured Asset
Notes
Transactions,
7.16%, 10/28/03 769.2
3,600,000 WFS Financial
Owner Trust,
5.55%, 2/20/03 3,555.7
---------
Asset-Backed 22,997.6
Securities
Commercial Paper (26%)
10,000,000 American Express
CP,
6.00%, 5/18/00 10,000.0
7,000,000 Bank of America
CP,
6.05%, 7/17/00 6,909.4
10,000,000 Bear Stearns CP,
7.78%, 2/15/10 9,937.6
11,000,000 GE Capital CP,
5.97%, 5/16/00 11,000.0
6,000,000 Household
Finance CP,
6.05%, 6/7/00 6,000.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
28,000,000 TVA DN,
5.87%, 5/9/00 $27,963.5
---------
Commercial Paper 71,810.5
Corporate Bonds (16%)
4,500,000 Aeltus CBO II,
7.98%, 8/6/09 (c) 2,925.0
350,000 AES Corporation,
9.50%, 6/1/09 343.0
400,000 AK Steel
Corporation,
7.88%, 2/15/09 367.0
250,000 Alestra SA,
12.63%, 5/15/09 242.5
400,000 Allied Waste of
North America,
7.88%, 1/1/09 286.0
400,000 American Standard,
7.38%, 2/1/08 372.0
1,500,000 BEA 1998-1A B,
7.56%, 6/15/10 (c) 840.0
300,000 Cablevision,
13.75%, 4/30/07 291.8
4,500,000 Century Funding Ltd,
7.13%, 2/15/11 (c) 2,925.0
260,000 Cho Hung Bank,
11.50%, 4/1/10 (c) 254.2
2,000,000 Con Edison,
7.15%, 12/1/09 1,912.5
450,000 CSC Holdings, Inc.,
7.78%, 2/15/18 399.9
350,000 D.R. Horton, Inc.,
8.00%, 2/1/09 296.6
400,000 Flag LTD,
8.25%, 1/30/08 352.0
250,000 Grupo Iusacell SA,
14.25%, 12/1/06 261.9
</TABLE>
30 Payden & Rygel Investment Group
<PAGE>
Total Return Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
200,000 Grupo Televisa,
11.88%, 5/15/06 $ 238.8
500,000 Harrahs Operating
Co.,
7.88%, 12/15/05 467.5
350,000 Hollywood Park,
9.25%, 2/15/07 349.1
600,000 Kaufman & Broad Home
Corporation,
9.63%, 11/6/04 579.0
500,000 Mandalay Resort
Group,
9.25%, 12/1/05 483.7
500,000 Mark IV Industries,
7.50%, 9/1/07 430.0
4,000,000 MBNA Corporation,
6.15%, 10/1/03 3,740.0
7,000,000 Merrill Lynch
Hutchinson,
7.49%, 8/26/00 (c) 7,000.0
400,000 Nextel
Communications,
0.00%, 2/15/07 285.0
450,000 Northwest Airlines,
Inc., 8.52%, 4/7/04 414.0
450,000 NTL, Inc.,
10.00%, 10/31/02 441.0
300,000 Pogo Producing,
8.75%, 5/15/07 283.5
120,000 PTC International
Finance II SA,
11.25%, 12/1/09 122.4
225,000 Salomon, Inc.,
6.25%, 11/30/00 224.5
250,000 San Luis Corporation
SA,
8.88%, 3/18/08 226.9
500,000 Sinclair
Broadcasting,
9.00%, 7/15/07 448.8
4,000,000 Sprint Capital
Corporation,
6.38%, 5/12/09 3,605.0
2,000,000 Sun Microsystems,
Inc.,
7.50%, 8/15/06 1,977.5
3,500,000 TCI Communication,
5.76%, 3/12/01 3,521.0
1,000,000 Time Warner, Inc.,
Pass-Thru
6.10%, 12/30/01 (c) 977.5
4,000,000 TRW, Inc.,
7.13%, 6/1/09 3,671.4
2,200,000 Vodafone Airtouch
PLC,
7.75%, 2/15/10 2,167.0
1,250,000 Waste Management
WMI,
4.00%, 2/1/02 1,112.5
875,000 WMX Technologies,
6.38%, 12/1/03 778.8
500,000 Young Broadcasting,
8.75%, 6/15/07 445.0
---------
Corporate Bonds 46,059.3
Foreign Bonds (3%)
280,000 Argentina Government
Bond,
11.75%, 3/31/05 260.6
500,000 Argentina Government
Bond,
11.75%, 4/7/09 489.4
1,165,052 Brazil C-Bond,
8.00%, 4/15/14 835.2
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
<C> <S> <C> <C>
----------------------------------------------
550,000 Brazil Discount,
5.19%, 4/15/24 $ 422.1
348,750 Brazil
Government Bond,
7.38%, 4/15/06 310.8
750,000 Bulgaria,
6.06%, 7/28/24 571.4
380,000 Globo
Communicacoes,
10.50%, 12/20/06 319.2
260,000 Hanvit,
11.75%, 3/1/10 256.1
500,000 Kpnqwest,
8.13%, 6/1/09 485.0
200,000 Morocco
Government
Bonds,
5.91%, 1/1/09 178.6
350,000 Multicanal SA,
13.13%, 4/15/09 355.3
200,000 Philippine Long
Distance,
10.50%, 4/15/09 190.0
10,000,000 Poland
Government Bond,
8.50%, 2/12/05 1,839.6
200,000 Republic of
Panama,
3.50%, 7/17/14 157.0
400,000 Republic of
Philippines,
9.88%, 1/15/19 355.0
250,000 Russian
Federation,
10.00%, 6/26/07 178.6
350,000 Russian
Federation,
12.75%, 6/24/28 283.7
1,500,000 Russian
Government Bond,
5.97%, 12/15/20 405.9
550,000 Russian Ian,
6.06%, 12/15/15 153.0
200,000 South African
Government Bond,
9.13%, 5/19/09 193.0
550,000 United Mexican
States,
6.25%, 12/31/19 452.0
571,425 Venezuela DCB,
6.94%, 12/18/07 446.5
---------
Foreign Bonds 9,138.0
Mortgage-Backed Securities
(64%)
4,700,000 Bear Stearns
Commercial
Mortgage
Securities,
7.78%, 2/15/10 4,732.4
4,440,000 DLJ Commercial
Mortgage
Corporation,
7.30%, 6/1/09 4,320.1
2,035,529 FNMA 97-32,
6.29, 4/25/27 2,047.5
8,500,000 FNMA TBA,
6.00%, 8/1/29
(b) 7,695.1
11,700,000 FNMA TBA,
6.50%, 5/1/28
(b) 10,910.3
21,800,000 FNMA TBA,
7.00%, 5/1/28
(b) 20,839.3
9,200,000 FNMA TBA,
7.50%, 5/1/28
(b) 8,995.9
21,500,000 FNMA,
6.63%, 9/15/09 20,478.7
4,088,194 GNMA #449601,
8.00%, 6/15/27 4,098.4
</TABLE>
See notes to financial statements.
Semi-Annual Report 31
<PAGE>
Total Return Fund continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
<C> <S> <C> <C>
---------------------------------------------
33,900,000 GNMA TBA,
6.50%, 6/1/29
(b) $ 31,738.9
33,000,000 GNMA TBA,
7.00%, 9/15/29
(b) 31,721.3
21,100,000 GNMA TBA,
7.50%, 3/15/27
(b) 20,737.3
12,000,000 GNMA TBA,
8.00%, 1/15/27
(b) 12,022.4
----------
Mortgage-Backed
Securities 180,337.6
Preferred Stock (0%)
35,300 Swire Pacific
Capital (c) 794.2
U.S. Government Agency (21%)
30,000,000 FHLMC,
5.87%, 5/2/00 29,632.6
30,000,000 FHLMC,
6.04%, 7/13/00 29,995.1
----------
U.S. Government
Agency 59,627.7
U.S. Treasury (12%)
5,300,000 U.S. Treasury
Bond,
6.25%, 8/15/23 5,302.5
5,300,000 U.S. Treasury
Bond,
6.50%, 11/15/26 5,502.1
2,000,000 U.S. Treasury
Note,
5.63%, 05/15/08 1,901.2
14,000,000 U.S. Treasury
Note,
6.63%, 5/15/07 14,103.9
23,000,000 U.S. Treasury
Strip,
0.00%, 8/15/20 6,715.3
----------
U.S. Treasury 33,525.0
Investment Companies (1%)
1,995,035 Bunker Hill
Money Market
Fund 1,995.0
----------
Total (Cost - $435,546.5) $426,284.9
(a) (151%)
==========
</TABLE>
Percentages indicated are based on net assets of $282,752,632.
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 $ 830,268
Unrealized depreciation (10,091,896)
------------
Net unrealized
depreciation $ (9,261,628)
============
</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.
At April 30, 2000, 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>
242 U.S. Treasury 10 Year
Note Future May-00 $23,462,656 $ 79,016
261 U.S. Treasury Bond
Future May-00 25,202,813 (509,336)
---------
$(430,320)
=========
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
9/25/00 Poland Zloty (sell) 4.3205 $2,083,092 $156,076
========
</TABLE>
32 Payden & Rygel Investment Group
<PAGE>
High Income Fund
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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 102
Average Maturity 7.2 years
SEC Yield 9.98%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
--------------------
<S> <C>
Corporate 84%
U.S. Treasury 4%
Preferred Stock 3%
Asset Backed 1%
Cash 8%
--------------------
</TABLE>
Credit Quality
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
AAA 4%
A 0%
BBB 5%
BB 30%
B 61%
--------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
Asset-Backed Securities (1%)
250,000 Ford 98 A Class D,
7.50%, 5/15/03 (b) $ 249.8
1,000,000 Ford 98 B Class E,
7.50%, 11/15/03 998.5
----------
Asset-Backed
Securities 1,248.3
Collaterized Bond Obligations
(2%)
500,000 Aeltus CBO II,
7.98%, 8/6/09 (b) 325.0
250,000 Ares Leveraged Bond,
9.77%, 11/30/04(b) 213.1
1,000,000 Century Funding LTD,
7.13%, 2/15/11 650.0
750,000 Triangle Funding LTD,
7.45%, 10/15/03 731.3
----------
Collaterized Bond
Obligations 1,919.4
Preferred Stock (2%)
500 First Republic
Capital Corp. (b) 455.0
12,808 Granite Broadcasting
Preferred 1,216.7
47,000 Swire Pacific Capital
(b) 1,057.5
----------
Preferred Stock 2,729.2
Corporate Bonds (80%)
Basic Materials (5%)
900,000 AK Steel Corporation,
9.13%, 12/15/06 883.1
1,250,000 California Steel
Industry,
8.50%, 4/1/09 1,175.0
1,000,000 Lyondell Chemical
Co.,
9.88%, 5/1/07 982.5
1,250,000 Polymer Group,
9.00%, 7/1/07 1,137.5
1,250,000 Sterling Chemicals,
Inc., 12.38%, 7/15/06 1,284.4
----------
Basic Materials 5,462.5
Building & Construction (4%)
1,000,000 Albecca, Inc.,
10.75%, 8/15/08 790.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
1,000,000 Building Materials
Corporation, 8.00%,
12/1/08 $ 860.0
1,100,000 Integrat Electric
Service,
9.38%, 2/1/09 924.0
1,500,000 Kaufman & Broad Home
Corporation, 9.63%,
11/6/04 1,447.5
750,000 LLS Corporation,
11.63%, 8/1/09 720.0
----------
Building &
Construction 4,741.5
Cable Systems (7%)
500,000 Adelphia
Communications,
10.50%, 7/15/04 507.5
1,000,000 Cablevision
13.75%, 4/30/07 (b) 972.5
1,315,000 Century
Communications,
8.38%, 12/15/07 1,186.8
1,250,000 Charter Communication
Holdings LLC, 8.63%,
4/1/09 1,106.2
1,250,000 Classic Cable, Inc.,
10.50%, 3/1/10 1,231.2
1,000,000 United Pan Europe,
11.25%, 2/1/10 874.7
350,000 United Pan-Europe
Communication,
11.25%, 2/1/10 332.5
1,000,000 Winstar
Communications,
12.75%, 4/15/10 911.1
----------
Cable Systems 7,122.5
Consumer Cyclicals (4%)
1,000,000 Bally Total Fitness,
9.88%, 10/15/07 920.0
1,250,000 HMH Properties,
7.88%, 8/1/08 1,084.4
1,000,000 Pinnacle Holdings,
0.00%, 3/15/08 665.0
1,000,000 Prime Hospitality
Corporation,
9.75%, 4/1/07 970.0
</TABLE>
See notes to financial statements.
Semi-Annual Report 33
<PAGE>
High Income Fund continued
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
500,000 Prime Hospitality,
9.25%, 1/15/06 $ 492.5
----------
Consumer Cyclicals 4,131.9
Consumer Non-Cyclicals (4%)
1,100,000 Chiquita Brands
International,
10.00%, 6/15/09 891.0
1,000,000 Dominos, Inc.,
10.38%, 1/15/09 922.5
1,500,000 Fresenius Medical,
7.88%, 2/1/08 1,331.2
750,000 Packaged Ice, Inc.,
9.75%, 2/1/05 630.0
750,000 Triad Hospitals
Holdings,
11.00%, 5/15/09 (b) 776.3
----------
Consumer Non-
Cyclicals 4,551.0
Energy (7%)
1,000,000 AES Corporation,
9.50%, 6/1/09 980.0
1,000,000 Calpine Corporation,
9.25%, 2/1/04 1,007.5
1,400,000 Nuevo Energy Co.,
9.50%, 6/1/08 1,372.0
1,350,000 Orion Power Holdings,
Inc.,
12.00%, 5/1/10 1,356.8
500,000 Pogo Producing,
10.33%, 2/15/09 510.0
1,000,000 Pogo Producing,
8.75%, 5/15/07 945.0
1,000,000 R&B Falcon
Corporation,
9.50%, 12/15/08 980.0
----------
Energy 7,151.3
Financials (2%)
750,000 GS Escrow
Corporation,
5.99%, 8/1/03 708.8
1,500,000 Standard Chartered,
5.28%, 12/29/49 1,005.0
----------
Financials 1,713.8
Gaming (8%)
1,100,000 Argosy Gaming,
10.75%, 6/1/09 1,138.5
600,000 Boyd Gaming
Corporation,
9.50%, 7/15/07 564.0
1,550,000 Harrahs Operating
Co.,
7.88%, 12/15/05 1,449.3
1,000,000 Horseshoe Gaming,
9.38%, 6/15/07 977.5
1,000,000 Isle of Capri
Casinos,
8.75%, 4/15/09 897.5
1,475,000 Park Place
Entertainment,
9.38%, 2/15/07 1,460.2
1,500,000 Starwood Hotels &
Resorts,
6.78%, 11/15/05 1,387.5
1,000,000 Station Casinos,
8.88%, 12/1/08 947.5
----------
Gaming 8,822.0
Industrial (9%)
450,000 Allied Waste of North
America, 10.00%,
8/1/09 (b) 310.5
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
1,500,000 American Standard,
7.38%, 2/1/08 $ 1,395.0
850,000 BE Aerospace,
8.00%, 3/1/08 680.0
1,000,000 D.R. Horton, Inc.,
8.00%, 2/1/09 847.5
750,000 Hayes Lemmerz
International, Inc.,
8.25%, 12/15/08 635.6
1,400,000 K&F Industries,
9.25%, 10/15/07 1,305.5
250,000 Mark IV Industries,
Inc.,
7.50%, 9/1/07 215.0
1,250,000 Pierce Leahy,
8.13%, 5/15/08 1,100.0
1,450,000 Premier Parks, Inc.,
9.25%, 4/1/06 1,363.0
250,000 Ryerson Tull, Inc.,
8.50%, 7/15/01 251.6
1,500,000 Scotts Co.,
8.63%, 1/15/09 (b) 1,425.0
750,000 Tembec Industries,
Inc.,
8.63%, 6/2/09 735.0
----------
Industrial 10,263.7
Multimedia (11%)
1,000,000 Ackerly,
9.00%, 1/15/09 937.5
1,500,000 Chancellor Media,
8.13%, 12/15/07 1,488.7
1,000,000 Cumulus Media,
10.38%, 7/1/08 900.0
350,000 Granite Broadcasting,
8.88%, 5/15/08 301.0
1,300,000 HMV Media Group PLC,
10.25%, 5/15/08 988.0
1,500,000 Loews Cineplex
Entertainment,
8.88%, 8/1/08 930.0
1,250,000 Price Communications
Wireless, Inc.,
9.13%, 12/15/06 1,243.8
1,000,000 Primedia, Inc.,
7.63%, 4/1/08 900.0
1,000,000 SFX Entertainment,
Inc.,
9.13%, 12/1/08 1,010.0
1,000,000 Sinclair
Broadcasting,
9.00%, 7/15/07 897.5
1,000,000 XM Satellite Radio
Inc.,
14.00%, 3/15/10 950.0
1,000,000 Young Broadcasting,
8.75%, 6/15/07 890.0
----------
Multimedia 11,436.5
Telecommunications (18%)
1,350,000 Cadmus Communication
Corporation, 9.75%,
6/1/09 1,312.9
1,000,000 Clearnet
Communications,
0.00%, 12/15/00 1,007.5
1,500,000 Covad Communication
Group,
12.00%, 2/15/10 1,410.0
1,000,000 Echostar DBS
Corporation,
9.38%, 2/1/09 967.5
</TABLE>
34 Payden & Rygel Investment Group
<PAGE>
High Income Fund
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
---------------------------------------------
500,000 Exodus
Communications,
10.75%, 12/15/09 $ 497.5
1,000,000 Flag LTD,
8.25%, 1/30/08 880.0
400,000 Intermedia
Communications Inc.,
9.50%, 3/1/09 376.0
650,000 Kpnqwest,
8.13%, 6/1/09 630.5
1,000,000 Level 3
Communications,
9.13%, 5/1/08 867.5
1,250,000 McLeodUSA, Inc.,
9.25%, 7/15/07 1,187.5
1,000,000 Nextel
Communications,
0.00%, 2/15/07 712.5
1,250,000 Nextlink
Communications,
10.75%, 11/15/08 1,225.0
1,000,000 NTL, Inc.,
10.00%, 10/31/02 980.0
1,000,000 Philippine Long
Distance,
10.50%, 4/15/09 950.0
1,250,000 PSInet, Inc.,
10.50%, 12/1/06 1,150.0
600,000 PTC International
Finance II SA,
11.25%, 12/1/09 612.0
1,000,000 RCN Corporation,
10.13%, 1/15/10 895.0
1,750,000 Rhythms
Netconnections,
14.00%, 2/15/10 1,575.0
750,000 Slovak Wireless
Financial Co.,
11.25%, 3/30/07 686.7
1,000,000 Williams
Communication,
10.88%, 10/1/09 1,005.0
----------
Telecommunications 18,928.1
Transportation (1%)
800,000 Northwest Airlines,
Inc.,
8.52%, 4/7/04 736.0
----------
Corporate Bonds 85,060.8
U.S. Treasury (4%)
2,500,000 U.S. Treasury Note,
5.88%, 11/15/04 2,433.0
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
<C> <S> <C> <C>
--------------------------------------------
1,500,000 U.S. Treasury
Note,
6.50%, 2/28/02 $ 1,494.2
----------
U.S. Treasury 3,927.2
Investment Companies (8%)
8,020,218 Bunker Hill
Money Market
Fund 8,020.2
----------
Total (Cost - $109,147.8) $102,905.1
(a) (97%)
==========
</TABLE>
Percentages indicated are based on net assets of $106,474,486.
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 $ 252,212
Unrealized depreciation (6,494,896)
-----------
Net unrealized depreciation $(6,242,684)
===========
</TABLE>
(b) Security exempt from registration under Rule 144(b) of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
7/13/00 Euro(sell) 0.9683 $2,662,825 $144,236
========
</TABLE>
See notes to financial statements.
Semi-Annual Report 35
<PAGE>
Short Duration Tax Exempt Fund
The objective of the Short Duration Tax Exempt Fund is to earn federal tax-free
income by investing in debt obligations that 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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 34
Average Maturity 2.7 years
SEC Yield 4.34%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
------------------------------
<S> <C>
Insured Bonds 40%
General Obligations Bonds 23%
Revenue Bonds 21%
Pre-Refunded Bonds 13%
Cash Equivalent 3%
------------------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 59%
AA 20%
A 12%
BBB 9%
--------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
General Obligations (59%)
565,000 Clark County, NV
School District,
5.25%, 6/15/02 $ 569.9
1,000,000 Dade County, FL
(FGIC),
12.00%, 10/1/01 1,096.2
500,000 Denver, CO City &
County, 6.38%, 8/1/03 515.6
995,000 District of Columbia
(MBIA), 6.60%, 6/1/03
(b) 1,016.5
5,000 District of Columbia
(MBIA), 6.60%, 6/1/03
(b) 5.1
370,000 Dodge, KS Unified
School District #443
(FSA), 8.25%, 9/1/03 406.1
500,000 Florida State Board
of Education, 5.00%,
6/1/03 501.3
500,000 Howard County, MD,
4.70%, 8/15/00 500.4
1,000,000 Las Vegas, NV (FGIC),
6.60%, 10/1/09 1,051.2
780,000 Lewisville, TX Indt.
School Dist. (PSFG),
6.25%, 8/15/04 800.5
220,000 Lewisville, TX Indt.
School Dist. (PSFG),
6.25%, 8/15/04 226.9
500,000 Manhattan, KS,
4.75%, 12/15/01 499.4
500,000 Mississippi State,
5.20%, 12/15/01 503.7
105,000 New York, NY,
6.00%, 8/1/00 105.4
395,000 New York, NY,
6.00%, 8/1/00 396.4
500,000 New York, NY,
7.50%, 8/15/20 551.9
300,000 Ohio State,
5.00%, 2/1/03 300.8
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal or
Shares Security Description Value (000)
<S> <C> <C>
--------------------------------------------------------------
500,000 Pennsylvania State,
5.13%, 9/15/02 $ 503.8
500,000 Snohomish County, WA School
District (MBIA), 7.00%, 12/1/01 516.9
---------
General Obligations 10,068.0
Revenue (37%)
Airport (3%)
415,000 Denver, CO City & Co. Airport,
7.75%, 11/15/21, Pre-refunded
11/15/01 440.9
Education (3%)
500,000 Youngstown, OH School Dist. Rev.
Anticipation Notes (AMBAC),
5.00%, 6/15/00 500.2
Electric & Gas (6%)
500,000 IL Development Finance Authority
Pollution Control (MBIA),
7.25%, 6/1/11 521.6
500,000 Massachusetts Municipal Wholesale
Electric, 6.38%, 7/1/01 508.1
---------
Electric & Gas 1,029.7
Health Care (13%)
500,000 MA State Health & Ed. Fac. Auth.,
5.00%, 7/1/01 498.8
1,000,000 New York State Dormitory-Mental
Health Svcs., 6.00%, 2/15/03 1,021.3
615,000 Philadelphia, PA Hosp. & Higher Edu.
Fac. Auth., 5.00%, 11/15/00 613.9
---------
Health Care 2,134.0
Transportation (2%)
400,000 Arizona State Transportation Board,
6.50%, 7/1/11 414.5
</TABLE>
36 Payden & Rygel Investment Group
<PAGE>
Short Duration Tax Exempt Fund
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
Water & Sewer (10%)
200,000 Houston, TX Water and
Sewer System Revenue
(MBIA), 5.25%,
12/1/00 $ 201.0
600,000 Louisville, KY
Waterworks Board,
5.75%, 11/15/13 607.5
350,000 Massachusetts State
Water Resource
Authority (MBIA),
6.25%, 11/1/10 366.2
290,000 Ohio State Water
Development
Authority, 6.00%,
12/1/08 300.1
210,000 Ohio State Water
Development
Authority, 6.00%,
12/1/08 218.7
---------
Water & Sewer 1,693.5
---------
Revenue 6,212.8
Cash Equivalents (3%)
36,519 Dreyfus Tax Exempt
Cash Management Fund 36.5
500,000 Raleigh Durham, NC
Airport Authority 500.0
---------
Cash Equivalents 536.5
---------
Total (Cost - $16,911.3) (a)
(99%) $16,817.3
=========
</TABLE>
Percentages indicated are based on net assets of $17,019,943.
(a) This represents cost for federal income tax purposes and differs from
value by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 7,091
Unrealized depreciation (101,044)
---------
Net unrealized depreciation $ (93,953)
=========
</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.
Semi-Annual Report 37
<PAGE>
Tax Exempt Bond Fund
The objective of the Tax Exempt Bond Fund is to earn federal tax-free income by
investing in debt obligations that 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.
Statistics
<TABLE>
---------------------------
<S> <C>
Number of Issues 26
Average Maturity 9.4 years
SEC Yield 4.74%
---------------------------
</TABLE>
Portfolio Composition
<TABLE>
------------------------------
<S> <C>
General Obligations Bonds 37%
Revenue Bonds 31%
Insured Bonds 22%
Pre-Refunded Bonds 9%
Cash Equivalent 1%
------------------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 49%
AA 44%
A 4%
BBB 3%
--------
</TABLE>
Schedule of Portfolio Investments April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
General Obligations (51%)
Limited (9%)
700,000 Clark County NV,
School District,
5.88%, 6/15/13 $ 731.5
1,000,000 Port of Seattle, WA
5.25%, 5/1/03 1,003.8
--------
Limited 1,735.3
Unlimited (42%)
1,000,000 Alpine, UT School
District,
5.25%, 3/15/13 975.0
500,000 Berkeley County, SC
School District
5.38%, 4/1/11 503.1
1,000,000 Berkeley County, SC
School District,
5.00% 4/1/20 911.3
1,000,000 Fort Worth, TX
Independent School
District (PSFG),
0.00%, 2/15/06 736.3
5,000 Honolulu, HI City &
County 5.00% 10/1/02 5.0
995,000 Honolulu, HI City &
County, 5.00%
10/1/02(b) 998.7
1,000,000 Mississippi State,
5.80% 6/1/09 1,020.0
1,500,000 Pittsburgh, PA
(AMBAC),
5.50% 9/1/14 1,494.4
1,000,000 Texas Public Finance
Authority,
5.38% 10/1/03 1,013.7
1,000,000 Virginia State,
6.10% 5/1/00 1,048.7
--------
Unlimited 8,706.2
--------
General Obligations 10,441.5
Revenue (47%)
Electric & Gas (4%)
300,000 City of Knoxville, TN
4.85%, 3/1/06 295.9
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
500,000 Massachusetts
Municipal
Wholesale Electric
6.38%, 7/1/01 $ 508.1
--------
Electric & Gas 804.0
Health Care (3%)
800,000 California Health
Facilities
Finance Authority,
5.00%, 10/1/18 673.0
Housing (9%)
625,000 Idaho Housing and
Finance Association,
5.20%, 7/1/27(b) 603.1
1,000,000 Virginia State
Housing
Development
Authority,
6.30%, 7/1/11(b) 1,020.0
170,000 Wisconsin Housing &
Economic Development
Authority,
5.30%, 1/1/22 169.4
--------
Housing 1,792.5
Leasing (4%)
1,000,000 Avon, IN Community
School Building
Corporation,
5. 25%, 1/1/22 900.0
Special Revenue (6%)
1,250,000 Oregon State Dept.
Admin. Svcs., (FSA),
5.75%, 4/1/14 1,273.4
Transportation (13%)
1,025,000 Arapahoe Co., CO, E-
470,
6.90%, 8/31/05 1,136.6
1,465,000 Port Authority NY&
NJ,
5.80%, 12/1/12 1,494.2
--------
Transportation 2,630.8
</TABLE>
38 Payden & Rygel Investment Group
<PAGE>
Tax Exempt Bond Fund
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Water & Sewer (8%)
600,000 Louisville, KY
Waterworks,
5.75%, 11/15/13 $ 607.5
1,000,000 Ohio State Water
Department
Authority (AMBAC),
5.70%, 6/1/09 1,023.7
---------
Water & Sewer 1,631.2
---------
Revenue 9,704.9
Cash Equivalents (1%)
45,869 Dreyfus Tax Exempt
Cash
Management Fund 45.9
200,000 Harris Co., TX
Indust. Devel. Corp.
Pollution Control 200.0
---------
Cash Equivalents 245.9
---------
Total (Cost - $20,377.1) (a)
(99%) $20,392.3
=========
</TABLE>
Percentages indicated are based on net assets of $20,577,118.
(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 $263,598
Unrealized depreciation (248,388)
--------
Net unrealized appreciation $ 15,210
========
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account as collateral.
AMBAC: AMBAC Indemnity Corporation
FSA: Financial Security Assurance Inc.
MBIA: MBIA Insurance Corp.
PSFG: Permanent School Fund Guarantee
See notes to financial statements.
Semi-Annual Report 39
<PAGE>
California Municipal Income Fund
The objective of the California Municipal Income Fund is to earn federal and
California tax-free income by investing in debt obligations that 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.
Statistics
<TABLE>
----------------------------
<S> <C>
Number of Issues 49
Average Maturity 10.2 years
SEC Yield 4.61%
----------------------------
</TABLE>
Portfolio Composition
<TABLE>
------------------------------
<S> <C>
Insured Bonds 54%
Pre-Refunded Bonds 18%
Revenue Bonds 12%
General Obligations Bonds 7%
Cash Equivalent 9%
------------------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 73%
AA 8%
A 9%
BBB 10%
--------
</TABLE>
Schedule of Portfolio Investments - April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
General Obligations (18%)
Limited (3%)
1,100,000 Orange County Special
Financing Authority
(AMBAC),
6.25%, 11/1/14 $1,113.1
Unlimited (15%)
1,500,000 ABC, CA Unified
School District
(FGIC), 0.00%, 8/1/18 510.0
200,000 Escondido, CA High
School District
(MBIA), 5.95%,
11/1/08 213.0
1,195,000 Fresno, CA Unified
School District
(MBIA),
5.80%, 2/1/11 1,260.7
1,340,000 Los Angeles, CA
Unified School
District (FGIC)
6.00%, 7/1/14 (b) 1,422.1
1,300,000 Oakland, CA Unified
School District of
Alameda County,
5.25%, 8/1/11 1,303.2
1,560,000 Sacramento, CA
Unified School
District,
5.75%, 7/1/15 1,602.9
--------
Unlimited 6,311.9
--------
General Obligations 7,425.0
Revenue (72%)
Airport (3%)
200,000 Los Angeles, CA City
Department of
Airports (FGIC),
5.50%, 5/15/07 203.7
1,000,000 San Francisco City &
Co. Airport
Commission (AMBAC),
6.50%, 5/1/13 (b) 1,052.5
--------
Airport 1,256.2
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
Education (7%)
1,000,000 California
Educational
Facilities Authority
(MBIA),
5.75%, 9/1/26 $1,062.5
700,000 University of
California (MBIA),
6.38%, 9/1/19 739.4
1,000,000 University of
California (MBIA),
6.88%, 9/1/16 1,067.5
--------
Education 2,869.4
Electric & Gas (11%)
300,000 California Northern
Power Agency (AMBAC),
5.25%, 8/1/14 294.8
1,060,000 Glendale, CA Electric
Works (MBIA), 5.75%,
2/1/14 1,089.1
1,000,000 Los Angeles, CA
Department of Water
and Power,
6.00%, 2/15/24 1,005.0
1,075,000 Puerto Rico Electric
Power Authority,
6.80%, 7/2/00 1,078.9
1,000,000 Southern California
Public Power
Authority (MBIA),
5.38%, 1/1/07 1,020.0
--------
Electric & Gas 4,487.8
Health Care (6%)
400,000 California Health
Facilities Finance
Authority (MBIA),
5.00%, 8/15/18 356.0
200,000 California Health
Facilities Finance
Authority,
5.00%, 10/1/18 168.2
1,000,000 California Health
Facilities Financing
Authority,
7.88%, 11/1/23 1,012.5
</TABLE>
40 Payden & Rygel Investment Group
<PAGE>
California Municipal Income Fund
Schedule of Portfolio Investments - April 30, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
1,000,000 California Statewide
Community Development
Authority,
5.38%, 4/1/17 $ 852.5
--------
Health Care 2,389.2
Housing (1%)
375,000 California Housing
Finance Agency
(MBIA),
5.20%, 8/1/26 374.1
Lease (15%)
1,500,000 ABAG Finance
Authority for
Nonprofit
Corporations,
5.25%, 11/1/08 1,526.2
1,085,000 Alameda Co., CA
Certificates of
Participation (MBIA),
5.38%, 6/1/09 1,113.5
1,000,000 Beverly Hills, CA
Public Financing
Authority (MBIA),
5.13%, 6/1/18 922.5
400,000 Contra Costa, CA
(MBIA),
5.25%, 6/1/14 394.0
600,000 Gilroy, CA Unified
School District
(FSA),
6.25%, 9/1/12 638.2
300,000 Los Angeles Co.
Capital Asset Leasing
Corp.,
4.00%, 6/1/00 299.9
400,000 Mountain View Cap.
Improv. Fin. Auth.
(MBIA)
6.50%, 8/1/16 (b) 414.5
400,000 Orange Co., CA
Certificates of
Participation (AMBAC)
6.38%, 6/1/11 (b) 419.0
500,000 San Diego Co., CA
Certificates of
Participation,
5.50%, 2/1/13 486.3
--------
Lease 6,214.1
Sales Tax (4%)
500,000 Los Angeles Co., CA
Trans. Communications
(MBIA),
6.50%, 7/1/13 520.0
1,100,000 Los Angeles Co., CA
Transportation
Commission,
6.50%, 7/1/20 1,163.2
--------
Sales Tax 1,683.2
Special Revenue (2%)
1,055,000 Marin County
Emergency Radio
(AMBAC),
5.00%, 8/15/14(b) 1,003.6
Special Tax (11%)
1,215,000 Fontana, CA
Redevelopment Agency,
4.75%, 10/1/04 1,183.1
400,000 Inglewood, CA
Redevelopment Agency
(AMBAC),
5.25%, 5/1/16 389.5
1,000,000 Monrovia, CA
Redevelopment Agency
(AMBAC),
6.70%, 5/1/21 1,048.7
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
<C> <S> <C>
----------------------------------------------
830,000 Paramount, CA
Redevelopment Agency,
7.35%, 8/1/21(b) $ 875.7
1,000,000 San Dimas, CA
Redevelopment Agency
(FSA), 6.75%, 9/1/16 1,043.8
---------
Special Tax 4,540.8
Transportation (3%)
400,000 Alameda Corridor
Transportation
(MBIA),
5.13%, 10/1/16 (b) 376.5
1,000,000 Puerto Rico
Commonwealth Hwy. &
Trans. Auth. Hwy.
(FSA),
5.50%, 7/1/15 1,008.7
---------
Transportation 1,385.2
Water & Sewer (9%)
1,000,000 East Bay, CA
Municipal Utility
District (MBIA),
6.00%, 6/1/12 1,036.2
1,000,000 Escondido, CA (FGIC),
5.75%, 9/1/30 983.8
1,000,000 Orange Cove, CA
Irrigation District
(AMBAC),
5.00%, 2/1/17 927.5
1,000,000 San Diego, CA Public
Fac. Fin. Auth.
(FGIC), 5.00%,
5/15/29 860.0
---------
Water & Sewer 3,807.5
---------
Revenue 30,011.1
Cash Equivalents (9%)
1,771,378 Dreyfus State Tax
Exempt 1,771.4
1,500,000 Irvine, CA
Improvement Bond Act
1915-Assessment
District No. 97-17 1,500.0
100,000 Irvine, CA
Improvement Bond Act
1915-Assessment
District No. 97-17 100.0
200,000 Orange County, CA,
2.75%, 8/1/17 200.0
---------
Cash Equivalents 3,571.4
---------
Total (Cost-
$41,544.6) (a) (99%) $41,007.5
=========
</TABLE>
Percentages indicated are based on net assets of $41,458,436.
(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 $ 171,782
Unrealized depreciation (708,859)
---------
Net unrealized depreciation $(537,077)
=========
</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.
Semi-Annual Report 41
<PAGE>
Statements of Assets & Liabilities
April 30, 2000
<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*... $168,827,084 $433,932,829 $17,173,362 $ 9,873,474
Foreign cash............. 3,215 92,906 115,251
Cash.....................
Receivable for:
Interest and dividends.. 2,568,262 6,356,126 362,771 82,564
Investments sold........ 5,002,797 4,648,654 46,487
Fund shares sold........ 894
Futures and options
contracts.............. 19,082
Forward currency
contracts.............. 6,967,624 11,021,771 23,602 145,988
Paydowns................
Receivable from Advisor
(Note 3)................ 9,423
Other assets............. 10,936 40,662 5,765 1,626
------------ ------------ ----------- -----------
Total Assets.......... 183,379,918 456,093,842 17,565,500 10,293,895
------------ ------------ ----------- -----------
LIABILITIES:
Payable for:
Bank overdrafts......... 1,734,071
Forward currency
contracts.............. 190 74,355
Investments purchased... 5,019,979 4,433,460 44,335
Fund shares redeemed....
Futures and options
contracts.............. 140,584
TBA sales commitments...
Distributions payable....
Accrued expenses:
Investment advisory fees
(Note 3)............... 42,315 116,070 3,532
Administration fees
(Note 3)............... 12,525 30,952 990 674
Other liabilities........ 76,081 145,011 17,970 23,326
------------ ------------ ----------- -----------
Total Liabilities..... 5,151,090 6,674,503 22,492 68,335
------------ ------------ ----------- -----------
NET ASSETS............ $178,228,828 $449,419,339 $17,543,008 $10,225,560
============ ============ =========== ===========
NET ASSETS:
Paid in capital.......... $191,921,862 $467,970,864 $16,404,713 $ 8,940,899
Undistributed net
investment income....... (2,684,138) (486,699) 127,875 (47,737)
Undistributed net
realized gains (losses)
from investments........ (5,274,498) (2,065,124) 480,001 413,596
Net unrealized
appreciation
(depreciation) from:
Investments............. (12,593,025) (26,653,409) 507,022 781,588
Translation of assets
and liabilities in
foreign currencies..... 6,858,627 10,653,707 23,397 137,214
------------ ------------ ----------- -----------
NET ASSETS............ $178,228,828 $449,419,339 $17,543,008 $10,225,560
============ ============ =========== ===========
Outstanding shares of
beneficial interest.... 18,745,873 45,554,031 1,559,597 889,502
============ ============ =========== ===========
NET ASSET VALUE --
offering and
redemption price per
share.................. $ 9.51 $ 9.87 $ 11.25 $ 11.50
============ ============ =========== ===========
-------
* Investments, at cost... $181,420,109 $463,344,940 $16,666,340 $9,084,856
</TABLE>
42 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
European European World Growth & Market U.S. Growth Small
Growth & Aggressive Target Twenty Income Return Leaders Cap Leaders
Income Fund Growth Fund Fund Fund Fund Fund Fund
=========== =========== ============= ============ =========== =========== ===========
<S> <C> <C> <C> <C> <C> <C>
$20,115,210 $70,458,301 $10,201,881 $143,116,990 $91,286,062 $13,192,824 $20,100,007
63,894 11,536 239,547
85,293 47,139 173,148 586,561 130 32,065
1,196,638 189,557
383,089 1,676,963 646,884
12,375
55,688
18,680
1,872 982 12,519 5,964 265 324
----------- ----------- ----------- ------------ ----------- ----------- -----------
21,901,684 72,194,921 10,460,108 143,302,657 92,525,471 13,193,219 20,334,328
----------- ----------- ----------- ------------ ----------- ----------- -----------
41,431
1,681,567 262,212
439,825 5,475
5,837 11,139 59,644 8,634 883 299
1,480 4,725 483 9,722 6,002 806 1,308
31,433 72,669 8,476 68,154 35,808 18,450 26,286
----------- ----------- ----------- ------------ ----------- ----------- -----------
38,750 88,533 1,731,957 137,520 490,269 25,614 290,105
----------- ----------- ----------- ------------ ----------- ----------- -----------
$21,862,934 $72,106,388 $ 8,728,151 $143,165,137 $92,035,202 $13,167,605 $20,044,223
=========== =========== =========== ============ =========== =========== ===========
$23,734,473 $63,998,798 $ 9,130,162 $ 87,357,844 $91,390,849 $12,869,710 $19,085,452
180,003 (79,026) 16,855 9,627 57,423 12,191 45,264
(2,111,627) 4,864,041 (7,419) 54,173,486 7,794,365 (407,267) (794,427)
80,814 3,323,523 (415,768) 1,624,180 (7,207,435) 692,971 1,707,934
(20,729) (948) 4,321
----------- ----------- ----------- ------------ ----------- ----------- -----------
$21,862,934 $72,106,388 $ 8,728,151 $143,165,137 $92,035,202 $13,167,605 $20,044,223
=========== =========== =========== ============ =========== =========== ===========
2,074,676 3,635,898 953,952 9,461,012 6,764,538 1,207,610 1,889,887
=========== =========== =========== ============ =========== =========== ===========
$ 10.54 $ 19.83 $ 9.15 $ 15.13 $ 13.61 $ 10.90 $ 10.61
=========== =========== =========== ============ =========== =========== ===========
$20,769,287 $67,134,778 $10,617,649 $141,492,810 $91,835,282 $12,509,832 $18,456,552
</TABLE>
See notes to financial statements.
Semi-Annual Report 43
<PAGE>
Statements of Assets & Liabilities continued
April 30, 2000
<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*.... $166,340,190 $160,463,030 $65,648,333 $69,180,227
Foreign cash..............
Cash......................
Receivable for:
Interest and dividends... 539,566 941,621 637,745 752,369
Investments sold.........
Fund shares sold......... 2,632,565
Futures and options
contracts...............
Forward currency
contracts...............
Paydowns.................
Receivable from Advisor
(Note 3)................. 20,106
Other assets.............. 7,550 5,403 7,243 4,460
------------ ------------ ----------- -----------
Total Assets........... 169,539,977 161,410,054 66,293,321 69,937,056
------------ ------------ ----------- -----------
LIABILITIES:
Payable for:
Bank overdrafts.......... 6,261,231
Forward currency
contracts...............
Investments purchased....
Fund shares redeemed..... 2,803,403
Futures and options
contracts............... 8,250
TBA sales commitments....
Distributions payable..... 907,905 781,907 281,241 325,149
Accrued expenses:
Investment advisory fees
(Note 3)................ 5,491 14,012 7,706
Administration fees (Note
3)...................... 12,545 10,242 3,916 4,924
Other liabilities......... 95,849 54,825 33,228 29,887
------------ ------------ ----------- -----------
Total Liabilities...... 10,080,933 852,465 340,647 367,666
------------ ------------ ----------- -----------
NET ASSETS............. $159,459,044 $160,557,589 $65,952,674 $69,569,390
============ ============ =========== ===========
NET ASSETS:
Paid in capital........... $159,459,044 $161,576,383 $68,729,343 $72,255,594
Undistributed net
investment income........ (31,657) (32,493)
Undistributed net realized
gains (losses) from
investments.............. (572,688) (2,170,712) (1,595,106)
Net unrealized
appreciation
(depreciation) from:
Investments.............. (414,449) (573,464) (1,091,098)
Translation of assets and
liabilities in foreign
currencies..............
------------ ------------ ----------- -----------
NET ASSETS............. $159,459,044 $160,557,589 $65,952,674 $69,569,390
============ ============ =========== ===========
Outstanding shares of
beneficial interest..... 159,459,044 16,164,053 6,887,152 6,759,251
============ ============ =========== ===========
NET ASSET VALUE --
offering and redemption
price per share......... $ 1.00 $ 9.93 $ 9.58 $ 10.29
============ ============ =========== ===========
-------
* Investments, at cost.... $166,340,190 $160,877,479 $66,172,276 $70,271,325
</TABLE>
44 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>
$135,262,340 $181,485,148 $426,284,886 $102,905,143 $16,817,322 $20,392,307 $41,007,537
22,969 391
622,625 1,591,617 3,454,571 2,724,830 279,773 289,734 628,894
24,418,896 12,846,809 6,044,220 2,307,399
17,375 51,313
156,076 144,236
840 11,615 7,528 7,085 983 5,904 679
------------ ------------ ------------ ------------ ----------- ----------- -----------
160,304,701 195,952,564 436,021,563 108,089,084 $17,098,078 20,687,945 41,637,110
------------ ------------ ------------ ------------ ----------- ----------- -----------
56,038,870 73,178,692 153,047,049 1,000,288
542,545
45,540 45,500 75,614
599,483 56,296 82,436 145,619
2,343 39,899 67,788 29,762 2,342 8,157 6,899
7,293 8,965 17,162 6,803 1,142 1,499 2,659
46,952 43,586 61,318 35,200 18,355 18,735 23,497
------------ ------------ ------------ ------------ ----------- ----------- -----------
56,740,481 73,316,642 153,268,931 1,614,598 78,135 110,827 178,674
------------ ------------ ------------ ------------ ----------- ----------- -----------
$103,564,220 $122,635,922 $282,752,632 $106,474,486 $17,019,943 $20,577,118 $41,458,436
============ ============ ============ ============ =========== =========== ===========
$104,776,002 $139,232,655 $300,493,377 $119,210,336 $17,142,485 $22,169,773 $42,603,777
68,018 742,883 1,213,897
(98,733) (13,826,629) (8,944,630) (7,848,895) (28,589) (1,607,865) (608,264)
(1,113,049) (2,838,122) (9,691,948) (6,242,684) (93,953) 15,210 (537,077)
152,950 141,832
------------ ------------ ------------ ------------ ----------- ----------- -----------
$103,564,220 $122,635,922 $282,752,632 $106,474,486 $17,019,943 $20,577,118 $41,458,436
============ ============ ============ ============ =========== =========== ===========
10,437,980 13,382,122 30,002,792 11,601,080 1,736,495 2,196,460 4,300,675
============ ============ ============ ============ =========== =========== ===========
$ 9.92 $ 9.16 $ 9.42 $ 9.18 $ 9.80 $ 9.37 $ 9.64
============ ============ ============ ============ =========== =========== ===========
$136,375,389 $184,558,093 $435,546,514 $109,147,827 $16,911,275 $20,377,097 $41,544,614
</TABLE>
See notes to financial statements.
Semi-Annual Report 45
<PAGE>
Statements of Operations
Period ended April 30, 2000
<TABLE>
<CAPTION>
Global Global Emerging Global
Short Bond Fixed Income Markets Bond Balanced
Fund Fund Fund Fund
============ ============ ============ =========
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............ $ 4,582,085 $ 12,949,839 $ 571,005 $ 109,987
Dividend income............ 32,074
Interest expense...........
Foreign tax withholdings... (2,999)
------------ ------------ ---------- ---------
Investment Income.......... 4,582,085 12,949,839 571,005 139,062
------------ ------------ ---------- ---------
EXPENSES:
Investment advisory fees
(Note 3).................. 309,153 733,295 25,666 23,528
Administration fees (Note
3)........................ 82,441 195,545 4,563 3,764
Custodian fees............. 41,294 67,730 4,919 12,308
Transfer agent fees........ 14,889 32,588 5,653 5,864
Registration and filing
fees...................... 9,283 15,390 6,635 7,906
Professional fees.......... 1,493 3,325 107 75
Trustees' fees and
expenses.................. 12,407 29,396 683 605
Printing costs............. 8,387 32,129 625 758
Organization expenses (Note
2)........................ 145
Legal fees................. 1,760 4,402 105 91
Accounting fees............ 34,546 80,305 4,721 4,529
Insurance.................. 6,443 11,581 233
Audit fees................. 15,274 25,147 8,268 11,228
Other expenses............. 5,514 11,721 (114) 1,574
Expenses previously
deferred (Note 3).........
Expense subsidy (Note 3)... (27,629) (16,202) (39,936)
------------ ------------ ---------- ---------
Net Expenses.............. 515,255 1,242,554 45,629 32,672
------------ ------------ ---------- ---------
Net Investment Income.... 4,066,830 11,707,285 525,376 106,390
------------ ------------ ---------- ---------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains (losses)
from:
Investments............... (14,486,360) (17,863,318) 530,975 270,109
Foreign currency
transactions............. 14,035,357 16,169,731 153,004
Futures, options and swap
contracts................ (487,058) 152,198
Change in net unrealized
appreciation
(depreciation) from:
Investments............... (8,682,691) (13,034,949) 270,806 455,286
Translation of assets and
liabilities in foreign
currencies............... 9,986,131 17,283,450 23,397 (508,514)
Futures, options and swap
contracts................ 1,166,722 (46,073)
------------ ------------ ---------- ---------
Net Realized and
Unrealized Gains
(Losses)................ 852,437 3,234,578 825,178 476,010
------------ ------------ ---------- ---------
CHANGE IN NET ASSETS
RESULTING FROM
OPERATIONS................ $ 4,919,267 $ 14,941,863 $1,350,554 $ 582,400
============ ============ ========== =========
</TABLE>
-------
(a)The Fund commenced operations on March 31, 2000.
(b)The Fund commenced operations on December 20, 1999.
46 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
European European World Growth & Market U.S. Growth Small
Growth & Aggressive Target Twenty Income Return Leaders Cap Leaders
Income Fund Growth Fund Fund (a) Fund Fund Fund Fund (b)
=========== =========== ============= ============ =========== =========== ===========
<S> <C> <C> <C> <C> <C> <C>
$ 61,265 $ 132,727 $ 23,793 $ 58,726 $ 2,672,215 $ 37,734 $ 62,486
273,232 66,960 2,001,788 19,267 50,786
(6,354) (8,084)
(26,235) (8,894)
----------- ---------- --------- ------------ ----------- --------- ----------
301,908 182,709 23,793 2,060,514 2,672,215 57,001 113,272
----------- ---------- --------- ------------ ----------- --------- ----------
81,249 210,521 8,446 495,365 124,113 26,685 44,364
13,000 21,052 483 79,258 35,461 3,558 5,915
19,145 13,965 1,223 11,835 6,205 2,925 2,994
11,007 16,488 1,019 67,750 11,142 6,565 8,455
4,045 23,644 19,056 7,895 8,846 5,915 4,921
227 572 51 1,222 749 16 132
2,120 3,487 102 12,159 5,910 517 1,008
1,992 13,198 102 9,906 7,487 1,279 3,020
824 10 16,660
187 1,143 34 1,353 969 239 520
8,400 12,232 917 34,968 17,165 4,292 4,538
626 5,678 850
10,759 8,024 2,595 12,164 10,184 7,102 10,072
3,986 3,246 36 5,336 3,890 492 (46)
(11,319) (62,374) (27,126) (2,841) (33,723) (24,010) (43,470)
----------- ---------- --------- ------------ ----------- --------- ----------
146,248 265,198 6,938 742,058 199,248 35,575 59,083
----------- ---------- --------- ------------ ----------- --------- ----------
155,660 (82,489) 16,855 1,318,456 2,472,967 21,426 54,189
----------- ---------- --------- ------------ ----------- --------- ----------
(1,837,192) 5,622,013 54,409,940 (206,985) (244,550) (443,123)
(161,112) (521,721) (7,419)
9,944,287 (160,498) (351,304)
(2,590,316) 1,932,255 (415,768) (60,144,484) (148,737) 511,250 1,643,455
1,020,392 97,132 4,321
619,953 (8,524,351) 64,479
----------- ---------- --------- ------------ ----------- --------- ----------
(2,948,275) 7,129,679 (418,866) (5,734,544) 1,064,214 106,202 913,507
----------- ---------- --------- ------------ ----------- --------- ----------
$(2,792,615) $7,047,190 $(402,011) $ (4,416,088) $ 3,537,181 $ 127,628 $ 967,696
=========== ========== ========= ============ =========== ========= ==========
</TABLE>
See notes to financial statements.
Semi-Annual Report 47
<PAGE>
Statements of Operations continued
Period ended April 30, 2000
<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.............. $4,358,359 $3,455,504 $1,757,693 $ 2,218,261
Dividend income..............
Interest expense.............
Foreign tax withholdings.....
---------- ---------- ---------- -----------
Investment Income........... 4,358,359 3,455,504 1,757,693 2,218,261
---------- ---------- ---------- -----------
EXPENSES:
Investment advisory fees
(Note 3).................... 112,709 155,348 78,085 100,093
Administration fees (Note
3).......................... 60,111 44,385 22,310 28,598
Custodian fees............... 8,543 6,779 4,352 4,419
Transfer agent fees.......... 29,495 11,790 7,646 8,842
Registration and filing
fees........................ 58,093 16,322 8,529 10,753
Professional fees............ 1,261 765 306 524
Trustees' fees and expenses.. 9,574 7,013 2,414 4,384
Printing costs............... 18,285 10,125 108 3,838
Organization expenses (Note
2).......................... 140
Legal fees................... 3,628 1,184 391 523
Accounting fees.............. 25,458 22,112 10,940 14,299
Insurance.................... 375 3,604 2,459 1,642
Audit fees................... 10,604 10,502 8,551 8,983
Other expenses............... 1,485 4,231 2,818 2,690
Expenses previously deferred
(Note 3)....................
Expense subsidy (Note 3)..... (114,343) (72,305) (37,358) (46,726)
---------- ---------- ---------- -----------
Net Expenses................ 225,418 221,855 111,551 142,862
---------- ---------- ---------- -----------
Net Investment Income...... 4,132,941 3,233,649 1,646,142 2,075,399
---------- ---------- ---------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Net realized gains (losses)
from:
Investments................. (81,451) (359,611) (1,065,565)
Foreign currency
transactions...............
Futures, options and swap
contracts.................. 30,094
Change in net unrealized
appreciation (depreciation)
from:
Investments................. (264,007) (104,946) 142,833
Translation of assets and
liabilities in foreign
currencies.................
Futures, options and swap
contracts.................. (49,521)
---------- ---------- ---------- -----------
Net Realized and Unrealized
Gains (Losses)............ -- (345,458) (483,984) (922,732)
---------- ---------- ---------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS... $4,132,941 $2,888,191 $1,162,158 $ 1,152,667
========== ========== ========== ===========
</TABLE>
48 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Investment Total High Short Duration California
GNMA Quality Bond Return Income Tax Exempt Tax Exempt Municipal
Fund Fund Fund Fund Fund Bond Fund Bond Fund
=========== ============ =========== =========== ============== ========== ==========
<S> <C> <C> <C> <C> <C> <C>
$ 4,326,666 $ 5,493,247 $ 8,283,570 $ 5,026,549 $353,968 $ 872,997 $ 774,560
(5,613)
----------- ----------- ----------- ----------- -------- --------- ---------
4,326,666 5,493,247 8,283,570 5,026,549 353,968 867,384 774,560
----------- ----------- ----------- ----------- -------- --------- ---------
160,322 216,133 314,888 184,844 25,971 53,934 53,377
47,503 61,752 89,968 42,250 6,493 13,483 13,344
7,886 9,875 15,807 5,020 2,123 3,541 3,165
11,937 12,755 15,792 10,591 6,309 6,888 7,086
4,811 8,490 7,751 8,380 6,828 4,775 (419)
1,131 670 1,656 751 118 120 356
9,296 8,657 13,029 6,280 990 1,792 2,043
11,675 3,212 12,547 6,378 1,074 (1,018) 3,292
4,299 115 104
2,578 1,211 2,102 882 117 (56) 423
24,477 26,868 36,669 19,026 5,506 7,642 8,349
3,089 1,609 1,096 501 1,534
8,786 13,145 13,998 11,618 7,863 8,358 8,174
(722) 6,066 5,889 3,976 2,718 3,609 36
16,246 30,488
(86,156) (26,031) (20,399) (15,825)
----------- ----------- ----------- ----------- -------- --------- ---------
207,823 388,169 562,308 301,196 40,580 84,203 83,401
----------- ----------- ----------- ----------- -------- --------- ---------
4,118,843 5,105,078 7,721,262 4,725,353 313,388 783,181 691,159
----------- ----------- ----------- ----------- -------- --------- ---------
(82,706) (7,404,858) (3,392,402) (3,817,991) (28,546) (533,232) (459,603)
(95,437)
235,383 (1,311,179) (909) (892)
(1,790,842) 2,849,119 (2,072,283) (252,743) (41,906) 302,412 544,636
207,380 181,089
308,684 (352,339)
----------- ----------- ----------- ----------- -------- --------- ---------
(1,873,548) (4,011,672) (7,016,260) (3,889,645) (70,452) (231,729) 84,141
----------- ----------- ----------- ----------- -------- --------- ---------
$ 2,245,295 $ 1,093,406 $ 705,002 $ 835,708 $242,936 $ 551,452 $ 775,300
=========== =========== =========== =========== ======== ========= =========
</TABLE>
See notes to financial statements.
Semi-Annual Report 49
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Global Short Bond Fund Global Fixed Income Fund
========================== ============================
Period ended Year ended Period ended Year ended
April 30, October 31, April 30, October 31,
2000 1999 2000 1999
============ ============ ============= =============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 4,066,830 $ 9,440,509 $ 11,707,285 $ 23,349,737
Net realized gains
(losses) on
investments............ (451,003) 6,200,175 (2,180,645) 13,448,039
Change in net unrealized
appreciation
(depreciation)......... 1,303,440 (9,504,696) 5,415,223 (33,900,133)
------------ ------------ ------------- -------------
Change in Net Assets
Resulting from
Operations............ 4,919,267 6,135,988 14,941,863 2,897,643
------------ ------------ ------------- -------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (6,750,968) (22,986,447) (12,445,914) (39,581,035)
In excess of net
investment income......
Net realized gains from
investments............ (2,263,728) (16,164,203)
In excess of net
realized gains from
investments............
Return of capital....... (452,844)
------------ ------------ ------------- -------------
Change in Net Assets
from Distributions to
Shareholders.......... (6,750,968) (23,439,291) (14,709,642) (55,745,238)
------------ ------------ ------------- -------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 5,008,780 44,614,473 113,654,496 156,632,130
Reinvestment of
distributions.......... 6,658,322 21,735,804 12,475,010 46,656,480
Cost of fund shares
redeemed............... (45,199,862) (87,062,835) (166,629,442) (185,403,513)
------------ ------------ ------------- -------------
Change in Net Assets
from Capital
Transactions.......... (33,532,760) (20,712,558) (40,499,936) 17,885,097
------------ ------------ ------------- -------------
Total Change in Net
Assets............... (35,364,461) (38,015,861) (40,267,715) (34,962,498)
NET ASSETS:
Beginning of period..... 213,593,289 251,609,150 489,687,054 524,649,552
------------ ------------ ------------- -------------
End of period........... $178,228,828 $213,593,289 $ 449,419,339 $ 489,687,054
============ ============ ============= =============
Undistributed net
investment income...... $ (2,684,138) $ -- $ (486,699) $ 251,930
============ ============ ============= =============
FUND SHARES OF
BENEFICIAL INTEREST:
Outstanding shares at
beginning of period.... 22,261,567 24,412,663 49,681,914 48,100,341
------------ ------------ ------------- -------------
Shares sold............. 528,032 4,499,156 11,571,948 15,150,934
Shares issued in
reinvestment of
distributions.......... 708,185 2,203,115 1,273,507 4,507,472
Shares redeemed......... (4,751,911) (8,853,367) (16,973,338) (18,076,833)
------------ ------------ ------------- -------------
Change in shares
outstanding............ (3,515,694) (2,151,096) (4,127,883) 1,581,573
------------ ------------ ------------- -------------
Outstanding shares at
end of period.......... 18,745,873 22,261,567 45,554,031 49,681,914
============ ============ ============= =============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ 98,948,982 222,705,197
Sale of investments
(excluding
government)............ 120,522,598 214,163,971
Purchase of government
securities............. 9,866,977 14,026,184
Sale of government
securities............. 11,946,849 8,978,902
</TABLE>
-------
(e)The Fund commenced operations on December 17, 1998.
50 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Emerging Markets Bond European Growth &
Fund Global Balanced Fund Income Fund
============================ ======================== ==========================
Period ended Period ended Period ended Year ended Period ended Year ended
April 30, October 31, April 30, October April 30, October 31,
2000 1999 (e) 2000 31, 1999 2000 1999
============ ============ ============ ========== ============ ============
<S> <C> <C> <C> <C> <C>
$ 525,376 $ 853,224 $ 106,390 $ 192,024 $ 155,660 $ 481,324
530,975 168,367 575,311 427,201 (1,998,304) (55,586)
294,203 236,216 (99,301) 528,449 (949,971) 3,066,188
----------- ----------- ----------- ---------- ------------ ------------
1,350,554 1,257,807 582,400 1,147,674 (2,792,615) 3,491,926
----------- ----------- ----------- ---------- ------------ ------------
(488,975) (761,750) (154,127) (180,190) (256,419)
(219,341) (547,344) (582,309) (1,354,410)
----------- ----------- ----------- ---------- ------------ ------------
(708,316) (761,750) (701,471) (582,309) (180,190) (1,610,829)
----------- ----------- ----------- ---------- ------------ ------------
9,403,270 10,085,455 1,283,910 988,788 42,575,534 58,376,985
707,159 761,750 701,092 581,773 147,382 1,527,824
(4,492,856) (60,065) (264,559) (589,586) (56,130,320) (63,071,435)
----------- ----------- ----------- ---------- ------------ ------------
5,617,573 10,787,140 1,720,443 980,975 (13,407,404) (3,166,626)
----------- ----------- ----------- ---------- ------------ ------------
6,259,811 11,283,197 1,601,372 1,546,340 (16,380,209) (1,285,529)
11,283,197 -- 8,624,188 7,077,848 38,243,143 39,528,672
----------- ----------- ----------- ---------- ------------ ------------
$17,543,008 $11,283,197 $10,225,560 $8,624,188 $ 21,862,934 $ 38,243,143
=========== =========== =========== ========== ============ ============
$ 127,875 $ 91,474 $ -- $ -- $ 180,142 $ 204,533
=========== =========== =========== ========== ============ ============
1,074,053 -- 740,112 652,676 3,206,515 3,447,862
----------- ----------- ----------- ---------- ------------ ------------
827,329 1,005,416 110,562 86,968 3,565,343 4,973,234
64,303 74,371 61,087 52,543 11,704 132,937
(406,088) (5,734) (22,259) (52,075) (4,708,886) (5,347,518)
----------- ----------- ----------- ---------- ------------ ------------
485,544 1,074,053 149,390 87,436 (1,131,839) (241,347)
----------- ----------- ----------- ---------- ------------ ------------
1,559,597 1,074,053 889,502 740,112 2,074,676 3,206,515
=========== =========== =========== ========== ============ ============
14,782,543 3,351,739 12,397,130
9,874,230 3,020,806 22,981,695
203,906
</TABLE>
See notes to financial statements.
Semi-Annual Report 51
<PAGE>
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
European Aggressive World Target Growth &
Growth Fund Twenty Fund Income Fund
========================== ============ ===========================
Period ended Period ended Period ended Period ended Year ended
April 30, October 31, April 30, April 30, October 31,
2000 1999 (d) 2000 (a) 2000 1999
============ ============ ============ ============= ============
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ (82,489) $ 9,329 $ 16,855 $ 1,318,456 $ 3,272,207
Net realized gains
(losses) on
investments............ 5,100,292 (217,620) (7,419) 54,409,940 7,980,305
Change in net unrealized
appreciation
(depreciation)......... 2,029,387 1,293,188 (411,447) (60,144,484) 29,259,458
------------ ----------- ---------- ------------- ------------
Change in Net Assets
Resulting from
Operations............ 7,047,190 1,084,897 (402,011) (4,416,088) 40,511,970
------------ ----------- ---------- ------------- ------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (24,497) (1,343,629) (3,240,475)
In excess of net
investment income......
Net realized gains from
investments............ (8,216,712) (5,742,181)
In excess of net
realized gains from
investments............
------------ ----------- ---------- ------------- ------------
Change in Net Assets
from Distributions to
Shareholders.......... (24,497) -- -- (9,560,341) (8,982,656)
------------ ----------- ---------- ------------- ------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 148,198,175 9,932,243 9,130,162 14,493,070 57,522,734
Reinvestment of
distributions.......... 12,435 9,289,337 8,559,259
Cost of fund shares
redeemed............... (93,314,106) (829,949) (135,564,445) (79,240,632)
------------ ----------- ---------- ------------- ------------
Change in Net Assets
from Capital
Transactions.......... 54,896,504 9,102,294 9,130,162 (111,782,038) (13,158,639)
------------ ----------- ---------- ------------- ------------
Total Change in Net
Assets............... 61,919,197 10,187,191 8,728,151 (125,758,467) 18,370,675
NET ASSETS:
Beginning of period..... 10,187,191 -- -- 268,923,604 250,552,929
------------ ----------- ---------- ------------- ------------
End of period........... $ 72,106,388 $10,187,191 $8,728,151 $ 143,165,137 $268,923,604
============ =========== ========== ============= ============
Undistributed net
investment income...... $ (79,026) $ 27,960 $ 16,855 $ 9,627 $ 34,800
============ =========== ========== ============= ============
FUND SHARES OF
BENEFICIAL INTEREST:
Outstanding shares at
beginning of period.... 903,035 -- -- 16,526,889 17,334,643
------------ ----------- ---------- ------------- ------------
Shares sold............. 6,762,410 980,755 953,952 912,113 3,609,543
Shares issued in
reinvestment of
distributions.......... 769 582,131 556,793
Shares redeemed......... (4,030,316) (77,720) (8,560,121) (4,974,090)
------------ ----------- ---------- ------------- ------------
Change in shares
outstanding............ 2,732,863 903,035 953,952 (7,065,877) (807,754)
------------ ----------- ---------- ------------- ------------
Outstanding shares at
end of period.......... 3,635,898 903,035 953,952 9,461,012 16,526,889
============ =========== ========== ============= ============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ 79,349,781 5,789,183 104,335,236
Sale of investments
(excluding
government)............ 34,339,043 222,885,824
Purchase of government
securities.............
Sale of government
securities.............
</TABLE>
-------
(a)The Fund commenced operations on March 31, 2000.
(b)The Fund commenced operations on December 20, 1999.
(d)The Fund commenced operations on June 17, 1999.
52 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
U.S. Growth Small Cap Bunker Hill
Market Return Fund Leaders Fund Leaders Fund Money Market Fund
=========================== ========================== ============ ==============================
Period ended Year ended Period ended Period ended Period ended Period ended Year ended
April 30, October 31, April 30, October 31, April 30, April 30, October 31,
2000 1999 2000 1999 (d) 2000 (b) 2000 1999
============ ============ ============ ============ ============ =============== =============
<S> <C> <C> <C> <C> <C> <C>
$ 2,472,967 $ 3,280,094 $ 21,426 $ 11,588 $ 54,189 $ 4,132,941 $ 2,544,689
9,737,302 10,786,888 (405,048) 36,303 (794,427)
(8,673,088) (2,133,998) 511,250 181,721 1,707,934
------------ ------------ ----------- ---------- ----------- --------------- -------------
3,537,181 11,932,984 127,628 229,612 967,696 4,132,941 2,544,689
------------ ------------ ----------- ---------- ----------- --------------- -------------
(2,477,281) (3,271,760) (20,823) (8,925) (4,132,941) (2,544,689)
(8,726,185) (2,497,257) (38,522)
------------ ------------ ----------- ---------- ----------- --------------- -------------
(11,203,466) (5,769,017) (59,345) -- (8,925) (4,132,941) (2,544,689)
------------ ------------ ----------- ---------- ----------- --------------- -------------
30,508,140 46,316,116 9,025,214 4,191,588 21,418,143 6,217,198,993 513,712,895
11,058,087 5,550,528 59,345 8,380 2,196,671 2,008,530
(24,833,629) (18,451,807) (404,627) (1,810) (2,341,071) (6,147,904,865) (454,208,380)
------------ ------------ ----------- ---------- ----------- --------------- -------------
16,732,598 33,414,837 8,679,932 4,189,778 19,085,452 71,490,799 61,513,045
------------ ------------ ----------- ---------- ----------- --------------- -------------
9,066,313 39,578,804 8,748,215 4,419,390 20,044,223 71,490,799 61,513,045
82,968,889 43,390,085 4,419,390 -- -- 87,968,245 26,455,200
------------ ------------ ----------- ---------- ----------- --------------- -------------
$ 92,035,202 $ 82,968,889 $13,167,605 $4,419,390 $20,044,223 $ 159,459,044 $ 87,968,245
============ ============ =========== ========== =========== =============== =============
$ 57,423 $ 61,737 $ 12,191 $ 11,588 $ 45,264 $ -- $ --
============ ============ =========== ========== =========== =============== =============
5,554,485 3,260,654 419,668 -- -- 87,968,245 26,455,200
------------ ------------ ----------- ---------- ----------- --------------- -------------
2,201,801 3,171,771 818,188 419,843 2,109,951 6,217,198,993 513,712,895
801,316 387,981 5,300 812 2,196,671 2,008,530
(1,793,064) (1,265,921) (35,546) (175) (220,876) (6,147,904,865) (454,208,380)
------------ ------------ ----------- ---------- ----------- --------------- -------------
1,210,053 2,293,831 787,942 419,668 1,889,887 71,490,799 61,513,045
------------ ------------ ----------- ---------- ----------- --------------- -------------
6,764,538 5,554,485 1,207,610 419,668 1,889,887 159,459,044 87,968,245
============ ============ =========== ========== =========== =============== =============
26,199,795 17,815,960 24,909,006
3,948,984 10,667,613 8,038,934
7,355,625
</TABLE>
See notes to financial statements.
Semi-Annual Report 53
<PAGE>
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Limited Maturity Fund Short Bond Fund
=========================== ==========================
Period ended Year ended Period ended Year ended
April 30, October 31, April 30, October 31,
2000 1999 2000 1999
============ ============= ============ ============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 3,233,649 $ 5,398,907 $ 1,646,142 $ 5,049,854
Net realized gains
(losses) on
investments............ (81,451) (359,163) (329,517) (1,454,870)
Change in net unrealized
appreciation
(depreciation)......... (264,007) (514,035) (154,467) (1,201,100)
------------ ------------- ------------ ------------
Change in Net Assets
Resulting from
Operations............ 2,888,191 4,525,709 1,162,158 2,393,884
------------ ------------- ------------ ------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (3,328,944) (5,441,361) (1,688,072) (5,011,359)
In excess of net
investment income......
Net realized gains from
investments............
In excess of net
realized gains from
investments............
------------ ------------- ------------ ------------
Change in Net Assets
from Distributions to
Shareholders.......... (3,328,944) (5,441,361) (1,688,072) (5,011,359)
------------ ------------- ------------ ------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 132,578,833 144,494,836 21,184,478 31,467,956
Reinvestment of
distributions.......... 2,724,683 5,469,745 1,406,830 5,002,779
Cost of fund shares
redeemed............... (72,125,384) (168,270,513) (10,672,025) (87,954,462)
------------ ------------- ------------ ------------
Change in Net Assets
from Capital
Transactions........... 63,178,132 (18,305,932) 11,919,283 (51,483,727)
------------ ------------- ------------ ------------
Total Change in Net
Assets................. 62,737,379 (19,221,584) 11,393,369 (54,101,202)
NET ASSETS:
Beginning of period..... 97,820,210 117,041,794 54,559,305 108,660,507
------------ ------------- ------------ ------------
End of period........... $160,557,589 $ 97,820,210 $ 65,952,674 $ 54,559,305
============ ============= ============ ============
Undistributed net
investment income...... $ (31,657) $ 63,638 $ (32,493) $ 9,437
============ ============= ============ ============
FUND SHARES OF
BENEFICIAL INTEREST:
Outstanding shares at
beginning of period.... 9,806,525 11,608,466 5,646,372 10,927,660
------------ ------------- ------------ ------------
Shares sold............. 13,320,718 14,388,934 2,200,866 3,190,817
Shares issued in
reinvestment of
distributions.......... 273,878 545,762 146,372 511,160
Shares redeemed......... (7,237,068) (16,736,637) (1,106,458) (8,983,265)
------------ ------------- ------------ ------------
Change in shares
outstanding............ 6,357,528 (1,801,941) 1,240,780 (5,281,288)
------------ ------------- ------------ ------------
Outstanding shares at
end of period.......... 16,164,053 9,806,525 6,887,152 5,646,372
============ ============= ============ ============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ 69,405,665 33,730,919
Sale of investments
(excluding
government)............ 3,965,498 44,095,745
Purchase of government
securities............. 34,162,773 62,079,454
Sale of government
securities............. 32,122,535 38,297,695
</TABLE>
-------
(c) The fund commenced operations on August 27, 1999.
54 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Investment Quality Bond
U.S. Government Fund GNMA Fund Fund
=========================== ========================== ==========================
Period ended Year ended Period ended Period ended Period ended Year ended
April 30, October 31, April 30, October 31, April 30, October 31,
2000 1999 2000 1999 (c) 2000 1999
============ =========== ============ ============ ============ ============
<S> <C> <C> <C> <C> <C>
$ 2,075,399 $ 3,966,853 $ 4,118,843 $ 877,846 $ 5,105,078 $ 13,465,648
(1,065,565) (413,912) (82,706) 10,138 (7,169,475) (7,274,797)
142,833 (2,259,292) (1,790,842) 677,793 3,157,803 (8,531,705)
----------- ----------- ------------ ------------ ------------ ------------
1,152,667 1,293,649 2,245,295 1,565,777 1,093,406 (2,340,854)
----------- ----------- ------------ ------------ ------------ ------------
(2,131,591) (3,984,817) (4,232,931) (763,758) (5,292,561) (12,902,117)
(140,994) (377,990) (26,165) (1,977,735)
----------- ----------- ------------ ------------ ------------ ------------
(2,272,589) (4,362,807) (4,259,096) (763,758) (5,292,561) (14,879,852)
----------- ----------- ------------ ------------ ------------ ------------
15,977,227 13,686,356 1,219,849 120,346,469 8,406,380 147,882,590
1,905,173 4,016,664 2,619,428 763,755 5,060,610 14,197,865
(19,728,505) (13,953,615) (19,422,095) (751,404) (81,859,763) (123,605,779)
----------- ----------- ------------ ------------ ------------ ------------
(1,846,105) 3,749,405 (15,582,818) 120,358,820 (68,392,773) 38,474,676
----------- ----------- ------------ ------------ ------------ ------------
(2,966,023) 680,247 (17,596,619) 121,160,839 (72,591,928) 21,253,970
72,535,413 71,855,166 121,160,839 -- 195,227,850 173,973,880
----------- ----------- ------------ ------------ ------------ ------------
$69,569,390 $72,535,413 $103,564,220 $121,160,839 $122,635,922 $195,227,850
=========== =========== ============ ============ ============ ============
$ -- $ 56,192 $ -- $ 114,088 $ 68,018 $ 255,501
=========== =========== ============ ============ ============ ============
6,939,416 6,592,251 11,988,106 -- 20,682,385 17,111,232
----------- ----------- ------------ ------------ ------------ ------------
1,541,220 1,282,269 121,936 11,986,472 901,476 14,689,513
184,047 378,358 262,765 75,957 547,468 1,450,850
(1,905,432) (1,313,462) (1,934,827) (74,323) (8,749,207) (12,569,210)
----------- ----------- ------------ ------------ ------------ ------------
(180,165) 347,165 (1,550,126) 11,988,106 (7,300,263) 3,571,153
----------- ----------- ------------ ------------ ------------ ------------
6,759,251 6,939,416 10,437,980 11,988,106 13,382,122 20,682,385
=========== =========== ============ ============ ============ ============
87,832,304 327,970,261 434,862,583
95,209,195 286,838,460 490,765,808
57,627,437 50,547,429 25,928,727
42,886,602 83,099,648 48,627,361
</TABLE>
See notes to financial statements.
Semi-Annual Report 55
<PAGE>
Statements of Changes in Net Assets continued
<TABLE>
<CAPTION>
Total Return Fund High Income Fund
========================== ==========================
Period ended Year ended Period ended Year ended
April 30, October 31, April 30, October 31,
2000 1999 2000 1999
============ ============ ============ ============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 7,721,262 $ 11,195,013 $ 4,725,353 $ 8,805,546
Net realized gains
(losses) on
investments............ (4,799,018) (2,335,600) (3,817,991) (2,963,916)
Change in net unrealized
appreciation
(depreciation)......... (2,217,242) (8,866,525) (71,654) (1,130,820)
------------ ------------ ------------ ------------
Change in Net Assets
Resulting from
Operations............ 705,002 (7,112) 835,708 4,710,810
------------ ------------ ------------ ------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (7,345,790) (11,250,903) (4,539,349) (8,763,462)
In excess of net
investment income......
Net realized gains from
investments............ (810,667)
In excess of net
realized gains from
investments............
------------ ------------ ------------ ------------
Change in Net Assets
from Distributions to
Shareholders.......... (7,345,790) (12,061,570) (4,539,349) (8,763,462)
------------ ------------ ------------ ------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 86,523,879 143,194,483 15,211,662 57,185,303
Reinvestment of
distributions.......... 7,172,561 11,645,326 4,300,085 7,945,379
Cost of fund shares
redeemed............... (34,743,502) (86,942,800) (18,630,960) (43,449,500)
------------ ------------ ------------ ------------
Change in Net Assets
from Capital
Transactions.......... 58,952,938 67,897,009 880,787 21,681,182
------------ ------------ ------------ ------------
Total Change in Net
Assets............... 52,312,150 55,828,327 (2,822,854) 17,628,530
NET ASSETS:
Beginning of period..... 230,440,482 174,612,155 109,297,340 91,668,810
------------ ------------ ------------ ------------
End of period........... $282,752,632 $230,440,482 $106,474,486 $109,297,340
============ ============ ============ ============
Undistributed net
investment income...... $ 742,883 $ 367,411 $ 1,213,897 $ 1,027,893
============ ============ ============ ============
FUND SHARES OF
BENEFICIAL INTEREST:
Outstanding shares at
beginning of period.... 23,824,550 17,065,215 11,483,158 9,382,439
------------ ------------ ------------ ------------
Shares sold............. 9,062,861 14,364,438 1,629,313 5,667,182
Shares issued in
reinvestment of
distributions.......... 757,218 1,165,260 461,603 809,820
Shares redeemed......... (3,641,837) (8,770,363) (1,972,994) (4,376,283)
------------ ------------ ------------ ------------
Change in shares
outstanding............ 6,178,242 6,759,335 117,922 2,100,719
------------ ------------ ------------ ------------
Outstanding shares at
end of period.......... 30,002,792 23,824,550 11,601,080 11,483,158
============ ============ ============ ============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ 690,781,805 56,079,653
Sale of investments
(excluding
government)............ 629,009,454 58,223,944
Purchase of government
securities............. 14,297,063
Sale of government
securities............. 27,645,638
</TABLE>
-------
(e)The Fund commenced operations on December 17, 1998.
56 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Short Duration California Municipal
Tax Exempt Fund Tax Exempt Bond Fund Income Fund
=========================== ========================== ==========================
Period ended Year ended Period ended Year ended Period ended Period ended
April 30, October 31, April 30, October 31, April 30, October 31,
2000 1999 2000 1999 2000 1999 (e)
============ =========== ============ =========== ============ ============
<S> <C> <C> <C> <C> <C>
$ 313,388 $ 576,474 $ 783,181 $ 2,528,624 $ 691,159 $ 710,925
(28,546) 31,667 (534,141) 238,542 (460,495) (147,769)
(41,906) (258,573) 302,412 (3,114,694) 544,636 (1,081,713)
----------- ----------- ------------ ------------ ------------ -----------
242,936 349,568 551,452 (347,528) 775,300 (518,557)
----------- ----------- ------------ ------------ ------------ -----------
(319,259) (582,247) (810,653) (2,553,254) (704,473) (697,611)
(31,698) (139,540)
----------- ----------- ------------ ------------ ------------ -----------
(350,957) (721,787) (810,653) (2,553,254) (704,473) (697,611)
----------- ----------- ------------ ------------ ------------ -----------
9,007,738 4,069,845 124,500 12,014,744 23,375,896 35,367,478
319,457 698,143 643,171 2,193,300 376,001 597,877
(7,259,958) (6,159,617) (26,383,755) (32,743,759) (11,053,820) (6,059,655)
----------- ----------- ------------ ------------ ------------ -----------
2,067,237 (1,391,629) (25,616,084) (18,535,715) 12,698,077 29,905,700
----------- ----------- ------------ ------------ ------------ -----------
1,959,216 (1,763,848) (25,875,285) (21,436,497) 12,768,904 28,689,532
15,060,727 16,824,575 46,452,403 67,888,900 28,689,532 --
----------- ----------- ------------ ------------ ------------ -----------
$17,019,943 $15,060,727 $ 20,577,118 $ 46,452,403 $ 41,458,436 $28,689,532
=========== =========== ============ ============ ============ ===========
$ -- $ 5,871 $ -- $ 27,472 $ -- $ 13,314
=========== =========== ============ ============ ============ ===========
1,526,147 1,664,941 4,924,057 6,843,864 2,981,497 --
----------- ----------- ------------ ------------ ------------ -----------
916,591 407,302 13,165 1,209,554 2,432,790 3,529,282
32,511 70,048 68,420 225,048 39,025 60,777
(738,754) (616,144) (2,809,182) (3,354,409) (1,152,637) (608,562)
----------- ----------- ------------ ------------ ------------ -----------
210,348 (138,794) (2,727,597) (1,919,807) 1,319,178 2,981,497
----------- ----------- ------------ ------------ ------------ -----------
1,736,495 1,526,147 2,196,460 4,924,057 4,300,675 2,981,497
=========== =========== ============ ============ ============ ===========
5,716,383 5,015,360 25,367,236
3,911,984 29,897,646 12,907,184
</TABLE>
See notes to financial statements.
Semi-Annual Report 57
<PAGE>
Notes to Financial Statements
April 30, 2000
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-two 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 Deutsche Bank AG under which
the bank 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
$70 million. The Tax Exempt Bond, European Growth & Income and European
Aggressive Growth Funds took loans during the period. There were no borrowings
outstanding as of April 30, 2000.
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 regulations.
Dividend income is recorded on the
58 Payden & Rygel Investment Group
<PAGE>
April 30, 2000
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 the 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
Semi-Annual Report 59
<PAGE>
Notes to Financial Statements continued
April 30, 2000
rates or security prices in order to establish more definitely the effective
return on securities or currencies held or intended to be acquired by a Fund,
to reduce the volatility of the currency exposure associated with investment in
non-U.S. securities, or as an efficient means of adjusting exposure to the
bond, equity and currency markets and not for speculation.
Futures Contracts
-----------------
Any Fund (except the Bunker Hill Money Market Fund) may purchase or sell
futures contracts and options on futures contracts, which provide for the
future sale by one party and purchase by another party of a specified quantity
of a financial instrument or foreign currency at a fixed price on a future
date. Upon entering into such a contract, a Fund is required to deposit and
maintain as collateral such initial margin as required by the exchange on which
the contract is traded. Pursuant to the contract, that Fund agrees to receive
from or pay to the broker an amount equal to the daily fluctuations in the
value of the contract. Such receipts or payments are known as variation margin
and are recorded as unrealized gains or losses by that Fund. When the contract
is closed, that Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at
the time it was closed. The Funds may invest in futures 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, European Aggressive Growth,
World Target Twenty, Growth & Income, Market Return, U.S. Growth Leaders, Small
Cap Leaders, Total Return, and High Income Funds may invest in stock index
futures contracts, which are agreements pursuant to which two parties agree to
take or make delivery of an amount of cash equal to the difference between the
value of the index at the close of the last 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 the 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 pays 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,
European Aggressive Growth, and World Target Twenty 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
60 Payden & Rygel Investment Group
<PAGE>
April 30, 2000
to the U.S. dollar. These Funds enter into forward contracts as a hedge against
specific transactions or portfolio positions to protect against adverse
currency movements. The forward foreign currency exchange contracts are
adjusted by the daily exchange rate of the underlying currency and any gains or
losses are recorded for financial statement purposes as unrealized until the
contract settlement date, at which time a Fund records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed.
TBA Sale Commitments
--------------------
Each of 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
European Aggressive Growth, World Target Twenty, U.S. Growth Leaders, and Small
Cap Leaders Funds, which are declared and paid semi-annually; and (iii) the
Bunker Hill Money Market, Limited Maturity, Short Bond, U.S. Government, GNMA,
Short Duration Tax Exempt, Tax Exempt Bond, and California Municipal Income
Funds, 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 that exceed net investment income and net realized gains for
financial reporting
Semi-Annual Report 61
<PAGE>
Notes to Financial Statements continued
April 30, 2000
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.
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 each of 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 each of 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 each of 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 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 each of the U.S. Growth Leaders and Small Cap
Leaders Funds 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. The rate for the World Target Twenty Fund
is 1.40% on all net assets.
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,
2000 (exclusive of interest, taxes, portfolio transaction expenses, blue sky
fees, 12b-1 plan fees and extraordinary expenses).
62 Payden & Rygel Investment Group
<PAGE>
April 30, 2000
<TABLE>
<CAPTION>
Expense Voluntary Deferred
Guarantee Expense Limit Expense Subsidy
--------- ------------- ---------------
<S> <C> <C> <C>
Global Short Bond Fund.. 0.70% 0.50% $380,735
Global Fixed Income
Fund................... 0.70% n/a --
Emerging Markets Bond
Fund................... 1.25% 0.80% 41,723
Global Balanced Fund.... 0.85% 0.70% 248,381
European Growth & Income
Fund................... 0.90% n/a 217,731
European Aggressive
Growth Fund............ 1.05% n/a 121,144
World Target Twenty..... 1.40% 1.15% 8,446
Growth & Income Fund.... 0.80% 0.75% 109,406
Market Return Fund...... 0.60% 0.45% 346,672
U.S. Growth Leaders
Fund................... 1.00% 0.80% 69,614
Small Cap Leaders Fund.. 1.00% 0.80% 43,470
Bunker Hill Money Market
Fund................... 0.50% 0.30% 224,355
Limited Maturity Fund... 0.60% 0.40% 946,291
Short Bond Fund......... 0.60% 0.40% 611,967
U.S. Government Fund.... 0.60% 0.40% 390,370
GNMA Fund............... 0.50% 0.35% 169,143
Investment Quality Bond
Fund................... 0.60% 0.50% 336,648
Total Return Fund....... 0.60% 0.50% 52,842
High Income Fund........ 0.75% 0.60% --
Short Duration Tax
Exempt Fund............ 0.60% 0.50% 385,763
Tax Exempt Bond Fund.... 0.60% 0.50% 455,471
California Municipal
Income Fund............ 0.80% 0.50% 22,299
</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, European Growth & Income, European Aggressive Growth
and World Target Twenty 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 0.08%.
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.
Semi-Annual Report 63
<PAGE>
Financial Highlights
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Global Short Bond Fund
==============================================================
Period ended Year ended Year ended Year ended Period ended
April 30, October 31, October 31, October 31, October 31,
2000 1999 1998 1997 1996 (a)
============ =========== =========== =========== ============
<S> <C> <C> <C> <C> <C>
Net asset value --
beginning of period... $ 9.59 $ 10.31 $ 10.17 $ 10.07 $ 10.00
-------- -------- -------- -------- -------
Income (loss) from
investment activities:
Net investment income.. 0.17 0.67 0.92 0.58 0.05
Net realized and
unrealized gains
(losses).............. 0.06 (0.41) (0.15) 0.11 0.06
-------- -------- -------- -------- -------
Total from investment
activities........... 0.23 0.26 0.77 0.69 0.11
-------- -------- -------- -------- -------
Distributions to
shareholders:
From net investment
income................ (0.31) (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......... (0.31) (0.98) (0.63) (0.59) (0.04)
-------- -------- -------- -------- -------
Net asset value -- end
of period.............. $ 9.51 $ 9.59 $ 10.31 $ 10.17 $ 10.07
======== ======== ======== ======== =======
Total return......... 2.48%* 2.57% 7.87% 7.02% 1.10%*
======== ======== ======== ======== =======
Ratios/supplemental
data:
Net assets, end of
period (000).......... $178,229 $213,593 $251,609 $220,865 $28,913
Ratio of gross expense
to average net
assets................ 0.53%** 0.51% 0.51% 0.53% 2.31%**
Ratio of net expense to
average net assets.... 0.50%** 0.50% 0.44% 0.45% 0.45%**
Ratio of gross
investment income to
average net assets.... 3.92%** 3.89% 4.31% 4.76% 3.00%**
Ratio of net investment
income to average net
assets................ 3.95%** 3.90% 4.38% 4.84% 4.86%**
Portfolio turnover
rate.................. 133%** 175% 245% 219% 0%**
</TABLE>
-------
The Funds commenced operations on the following dates:
(a)September 18, 1996
*Not annualized
**Annualized
64 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Global Fixed Income Fund
====================================================================================
Period ended Year ended Year ended Year ended Year ended
April 30, October 31, October 31, October 31, October 31,
2000 1999 1998 1997 1996
============ =========== =========== =========== ===========
<S> <C> <C> <C> <C>
$ 9.86 $ 10.91 $ 10.16 $ 10.35 $ 10.32
-------- -------- -------- -------- --------
0.24 0.76 0.45 1.03 0.54
0.07 (0.69) 0.72 (0.16) 0.19
-------- -------- -------- -------- --------
0.31 0.07 1.17 0.87 0.73
-------- -------- -------- -------- --------
(0.25) (0.79) (0.42) (1.06) (0.70)
(0.05) (0.33)
-------- -------- -------- -------- --------
(0.30) (1.12) (0.42) (1.06) (0.70)
-------- -------- -------- -------- --------
$ 9.87 $ 9.86 $ 10.91 $ 10.16 $ 10.35
======== ======== ======== ======== ========
3.26%* 0.56% 11.81% 8.84% 7.41%
======== ======== ======== ======== ========
$449,419 $489,687 $524,650 $535,644 $651,165
0.51%** 0.49% 0.49% 0.49% 0.53%
0.51%** 0.49% 0.49% 0.49% 0.53%
4.79%** 4.48% 5.13% 5.69% 5.67%
4.79%** 4.48% 5.13% 5.69% 5.67%
129%** 104% 223% 289% 176%
</TABLE>
See notes to financial statements.
Semi-Annual Report 65
<PAGE>
Financial Highlights continued
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Emerging Market
Bond Fund
===============================
Period ended Period ended
April 30, October 31,
2000 1999 (i)
============ ============
<S> <C> <C>
Net asset value -- beginning of period........... $ 10.51 $ 10.00
------- -------
Income (loss) from investment activities:
Net investment income........................... 0.69 0.83
Net realized and unrealized gains (losses)...... 0.78 0.43
------- -------
Total from investment activities............... 1.47 1.26
------- -------
Distributions to shareholders:
From net investment income...................... (0.52) (0.75)
In excess of net investment income..............
From net realized gains......................... (0.21)
------- -------
Total distributions to shareholders............ (0.73) (0.75)
------- -------
Net asset value -- end of period................. $ 11.25 $ 10.51
======= =======
Total return................................... 14.41%* 12.92%*
======= =======
Ratios/supplemental data:
Net assets, end of period (000)................. $17,543 $11,283
Ratio of gross expense to average net assets.... 1.08%** 1.35%**
Ratio of net expense to average net assets...... 0.80%** 0.80%**
Ratio of gross investment income to average net
assets......................................... 8.93%** 9.36%**
Ratio of net investment income to average net
assets......................................... 9.21%** 9.91%**
Portfolio turnover rate......................... 223%** 225%**
</TABLE>
-------
The Funds commenced operations on the following dates:
(b)December 9, 1996
(c)June 30, 1997
(i)December 17, 1998
*Not annualized
**Annualized
66 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Global Balanced Fund European Growth & Income Fund
==================================================== ==================================================
Period ended Year ended Year ended Period ended Period ended Year ended Year ended Period ended
April 30, October 31, October 31, October 31, April 30, October 31, October 31, October 31,
2000 1999 1998 1997 (b) 2000 1999 1998 1997 (c)
============ =========== =========== ============ ============ =========== =========== ============
<S> <C> <C> <C> <C> <C> <C> <C>
$ 11.65 $ 10.84 $ 10.79 $ 10.00 $ 11.93 $ 11.46 $ 10.19 $ 10.00
------- ------- ------- ------- ------- ------- ------- -------
0.13 0.02 0.20 0.05 0.21 0.15 0.17 (0.04)
0.66 1.65 0.63 0.90 (1.54) 0.81 1.28 0.23
------- ------- ------- ------- ------- ------- ------- -------
0.79 1.67 0.83 0.95 (1.33) 0.96 1.45 0.19
------- ------- ------- ------- ------- ------- ------- -------
(0.18) (0.17) (0.05) (0.06) (0.09) (0.17)
(0.76) (0.86) (0.61) (0.11) (0.40) (0.01)
------- ------- ------- ------- ------- ------- ------- -------
(0.94) (0.86) (0.78) (0.16) (0.06) (0.49) (0.18) 0.00
------- ------- ------- ------- ------- ------- ------- -------
$ 11.50 $ 11.65 $ 10.84 $ 10.79 $ 10.54 $ 11.93 $ 11.46 $ 10.19
======= ======= ======= ======= ======= ======= ======= =======
6.89%* 15.85% 8.21% 9.49%* (11.26)%* 8.39% 14.31% 1.90%*
======= ======= ======= ======= ======= ======= ======= =======
$10,226 $ 8,624 $ 7,078 $10,312 $21,863 $38,243 $39,529 $13,608
1.54%** 1.56% 1.43% 1.64%** 0.97%** 0.96% 1.20% 2.48%**
0.70%** 0.70% 0.69% 0.70%** 0.90%** 0.90% 0.69% 0.69%**
1.42%** 1.53% 2.37% 2.38%** 0.89%** 1.19% 2.26% (0.07)%**
2.26%** 2.39% 3.11% 3.32%** 0.96%** 1.25% 2.77% 1.72%**
86%** 60% 156% 211%** 88%** 89% 34% 9%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 67
<PAGE>
Financial Highlights continued
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
World
European Aggressive Target Twenty
Growth Fund Bond Fund
=========================== =============
Period ended Period ended Period ended
April 30, October 31, April 30,
2000 1999 (j) 2000 (m)
============ ============ =============
<S> <C> <C> <C>
Net asset value -- beginning of
period.............................. $ 11.28 $ 10.00 $10.00
------- ------- ------
Income (loss) from investment
activities:
Net investment income............... 0.02 0.03 0.02
Net realized and unrealized gains
(losses)........................... 8.54 1.25 (0.87)
------- ------- ------
Total from investment activities.. 8.56 1.28 (0.85)
------- ------- ------
Distributions to shareholders:
From net investment income.......... (0.01)
In excess of net investment income..
From net realized gains.............
------- ------- ------
Total distributions to
shareholders..................... (0.01) 0.00 0.00
------- ------- ------
Net asset value -- end of period..... $ 19.83 $ 11.28 $ 9.15
======= ======= ======
Total return......................... 75.88%* 12.80%* (8.50)%*
======= ======= ======
Ratios/supplemental data:
Net assets, end of period (000)..... $72,106 $10,187 $8,728
Ratio of gross expense to average
net assets......................... 1.24%** 2.89%** 5.64%**
Ratio of net expense to average net
assets............................. 1.01%** 0.95%** 1.15%**
Ratio of gross investment income to
average net assets................. (0.54)%** (1.63)%** (1.70)%**
Ratio of net investment income to
average net assets................. (0.31)%** 0.31%** 2.79%**
Portfolio turnover rate............. 147%** 18%** 0%**
</TABLE>
-------
The Funds commenced operations on the following dates:
(d)November 1, 1996
(e)December 1, 1995
(j)June 17, 1999
(m)March 31, 2000
*Not annualized
**Annualized
68 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Growth & Income Fund Market Return Fund
================================================= ==============================================================
Period ended Year ended Year ended Year ended Period ended Year ended Year ended Year ended Period ended
April 30, October 31, October 31, October 31, April 30, October 31, October 31, October 31, October 31,
2000 1999 1998 1997 (d) 2000 1999 1998 1997 1996 (e)
============ =========== =========== =========== ============ =========== =========== =========== ============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 16.27 $ 14.45 $ 12.77 $ 10.00 $ 14.94 $ 13.31 $ 12.80 $ 10.86 $10.00
-------- -------- -------- -------- ------- ------- ------- ------- ------
0.11 0.19 0.21 0.17 0.41 0.76 0.73 0.63 0.50
(0.62) 2.15 1.71 2.74 0.19 2.37 1.46 2.64 0.86
-------- -------- -------- -------- ------- ------- ------- ------- ------
(0.51) 2.34 1.92 2.91 0.60 3.13 2.19 3.27 1.36
-------- -------- -------- -------- ------- ------- ------- ------- ------
(0.11) (0.19) (0.24) (0.14) (0.39) (0.77) (0.71) (0.63) (0.50)
(0.52) (0.33) (1.54) (0.73) (0.97) (0.70)
-------- -------- -------- -------- ------- ------- ------- ------- ------
(0.63) (0.52) (0.24) (0.14) (1.93) (1.50) (1.68) (1.33) (0.50)
-------- -------- -------- -------- ------- ------- ------- ------- ------
$ 15.13 $ 16.27 $ 14.45 $ 12.77 $ 13.61 $ 14.94 $ 13.31 $ 12.80 $10.86
======== ======== ======== ======== ======= ======= ======= ======= ======
(3.33%)* 16.47% 15.15% 29.19% 4.19%* 24.41% 18.48% 31.74% 14.06%*
======== ======== ======== ======== ======= ======= ======= ======= ======
$143,165 $268,924 $250,553 $150,944 $92,035 $82,969 $43,390 $20,195 $5,789
0.75%** 0.75% 0.77% 0.89% 0.53%** 0.53% 0.69% 0.96% 4.14%**
0.75%** 0.75% 0.54% 0.54% 0.45%** 0.45% 0.45% 0.45% 0.00%**
1.33%** 1.19% 1.32% 1.25% 5.50%** 5.29% 5.45% 4.85% 1.81%**
1.33%** 1.19% 1.55% 1.60% 5.58%** 5.37% 5.69% 5.36% 5.95%**
105%** 5% 10% 2% 33%** 113% 48% 140% 146%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 69
<PAGE>
Financial Highlights continued
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
U.S. Growth Small Cap
Leaders Fund Leaders Fund
=========================== ============
Period ended Period ended Period ended
April 30, October 31, April 30,
2000 1999 (j) 2000 (l)
============ ============ ============
<S> <C> <C> <C>
Net asset value -- beginning of
period............................... $ 10.53 $10.00 $ 10.00
------- ------ -------
Income (loss) from investment
activities:
Net investment income................ 0.07 0.03 0.03
Net realized and unrealized gains
(losses)............................ 0.41 0.50 0.59
------- ------ -------
Total from investment activities... 0.48 0.53 0.62
------- ------ -------
Distributions to shareholders:
From net investment income........... (0.03) (0.01)
In excess of net investment income...
From net realized gains.............. (0.08)
------- ------ -------
Total distributions to
shareholders...................... (0.11) 0.00 (0.01)
------- ------ -------
Net asset value -- end of period...... $ 10.90 $10.53 $ 10.61
======= ====== =======
Total return.......................... 4.57%* 5.30%* 6.15%*
======= ====== =======
Ratios/supplemental data:
Net assets, end of period (000)...... $13,168 $4,419 $20,044
Ratio of gross expense to average net
assets.............................. 1.34%** 4.61%** 1.39%**
Ratio of net expense to average net
assets.............................. 0.80%** 0.80%** 0.80%**
Ratio of gross investment income to
average net assets.................. (0.06%)** (2.84%)** 0.14%**
Ratio of net investment income to
average net assets.................. 0.48%** 0.97%** 0.73%**
Portfolio turnover rate.............. 280%** 241%** 138%**
</TABLE>
-------
The Funds commenced operations on the following dates:
(g)December 17, 1997
(j)June 17, 1999
(l)December 20, 1999
*Not annualized
**Annualized
70 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Bunker Hill
Money Market Fund Limited Maturity Fund
====================================== ==============================================================
Period ended Year ended Period ended Period ended Year ended Year ended Year ended Year ended
April 30, October 31, October 31, April 30, October 31, October 31, October 31, Octrober 31,
2000 1999 1998 (g) 2000 1999 1998 1997 1996
============ =========== ============ ============ =========== =========== =========== ============
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 9.98 $ 10.08 $ 10.06 $ 10.06 $ 10.06
-------- ------- ------- -------- ------- -------- -------- -------
0.03 0.05 0.05 0.29 0.56 0.56 0.54 0.53
(0.05) (0.09) 0.02
-------- ------- ------- -------- ------- -------- -------- -------
0.03 0.05 0.05 0.24 0.47 0.58 0.54 0.53
-------- ------- ------- -------- ------- -------- -------- -------
(0.03) (0.05) (0.05) (0.29) (0.57) (0.56) (0.54) (0.53)
-------- ------- ------- -------- ------- -------- -------- -------
(0.03) (0.05) (0.05) (0.29) (0.57) (0.56) (0.54) (0.53)
-------- ------- ------- -------- ------- -------- -------- -------
$ 1.00 $ 1.00 $ 1.00 $ 9.93 $ 9.98 $ 10.08 $ 10.06 $ 10.06
======== ======= ======= ======== ======= ======== ======== =======
2.79%* 4.97% 4.65%* 2.58%* 4.71% 5.87% 5.46% 5.41%
======== ======= ======= ======== ======= ======== ======== =======
$159,459 $87,968 $26,455 $160,558 $97,820 $117,042 $152,429 $50,771
0.45%** 0.41% 0.71%** 0.53%** 0.50% 0.47% 0.52% 0.62%
0.30%** 0.30% 0.29%** 0.40%** 0.38% 0.29% 0.30% 0.30%
5.35%** 4.72% 4.81%** 5.70%** 5.44% 5.40% 5.30% 5.13%
5.50%** 4.83% 5.23%** 5.83%** 5.56% 5.58% 5.52% 5.45%
n/a n/a n/a 105%** 60% 91% 135% 217%
</TABLE>
See notes to financial statements.
Semi-Annual Report 71
<PAGE>
Financial Highlights continued
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Short Bond Fund
=============================================================
Period ended Year ended Year ended Year ended Year ended
April 30, October 31, October 31, October 31, October 31,
2000 1999 1998 1997 1996
============ =========== =========== =========== ===========
<S> <C> <C> <C> <C> <C>
Net asset value --
beginning of period.... $ 9.66 $ 9.94 $ 9.92 $ 9.97 $ 10.04
------- ------- -------- ------- -------
Income (loss) from
investment activities:
Net investment income.. 0.30 0.56 0.63 0.58 0.54
Net realized and
unrealized gains
(losses).............. (0.08) (0.28) 0.02 (0.05) (0.06)
------- ------- -------- ------- -------
Total from investment
activities........... 0.22 0.28 0.65 0.53 0.48
------- ------- -------- ------- -------
Distributions to
shareholders:
From net investment
income................ (0.30) (0.56) (0.63) (0.58) (0.54)
In excess of net
investment income.....
From net realized
gains................. (0.01)
------- ------- -------- ------- -------
Total distributions to
shareholders......... (0.30) (0.56) (0.63) (0.58) (0.55)
------- ------- -------- ------- -------
Net asset value -- end
of period.............. $ 9.58 $ 9.66 $ 9.94 $ 9.92 $ 9.97
======= ======= ======== ======= =======
Total return............ 2.27%* 2.89% 6.80% 5.52% 4.86%
======= ======= ======== ======= =======
Ratios/supplemental
data:
Net assets, end of
period (000) ......... $65,953 $54,559 $108,661 $94,256 $97,966
Ratio of gross expense
to average net
assets................ 0.53%** 0.50% 0.50% 0.49% 0.57%
Ratio of net expense to
average net assets.... 0.40%** 0.40% 0.30% 0.40% 0.40%
Ratio of gross
investment income to
average net assets.... 5.77%** 5.58% 5.84% 5.91% 5.50%
Ratio of net investment
income to average net
assets................ 5.90%** 5.68% 6.04% 6.00% 5.67%
Portfolio turnover
rate.................. 238%** 229% 596% 208% 212%
</TABLE>
-------
The Funds commenced operations on the following dates:
*Not annualized
**Annualized
72 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
U.S. Government Fund
====================================================================================
Period ended Year ended Year ended Year ended Year ended
April 30, October 31, October 31, October 31, October 31,
2000 1999 1998 1997 1996
============ =========== =========== =========== ===========
<S> <C> <C> <C> <C>
$ 10.45 $ 10.90 $ 10.56 $ 10.54 $ 10.61
------- ------- ------- ------- -------
0.31 0.57 0.56 0.60 0.58
(0.15) (0.39) 0.33 0.02 (0.04)
------- ------- ------- ------- -------
0.16 0.18 0.89 0.62 0.54
------- ------- ------- ------- -------
(0.30) (0.57) (0.55) (0.60) (0.58)
(0.02) (0.06) (0.03)
------- ------- ------- ------- -------
(0.32) (0.63) (0.55) (0.60) (0.61)
------- ------- ------- ------- -------
$ 10.29 $ 10.45 $ 10.90 $ 10.56 $ 10.54
======= ======= ======= ======= =======
1.60%* 1.76% 8.60% 6.10% 5.20%
======= ======= ======= ======= =======
$69,569 $72,535 $71,855 $15,479 $22,114
0.53%** 0.50% 0.54% 0.63% 0.78%
0.40%** 0.40% 0.34% 0.45% 0.45%
5.68%** 5.29% 5.18% 5.31% 5.26%
5.81%** 5.39% 5.38% 5.49% 5.59%
191%** 128% 287% 160% 152%
</TABLE>
See notes to financial statements.
Semi-Annual Report 73
<PAGE>
Financial Highlights continued
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
GNMA Fund
==========================
Period ended Period ended
April 30, October 31,
2000 1999 (k)
============ ============
<S> <C> <C>
Net asset value -- beginning of period............. $ 10.11 $ 10.00
-------- ---------
Income (loss) from investment activities:
Net investment income............................. 0.37 0.09
Net realized and unrealized gains (losses)........ (0.20) 0.10
-------- ---------
Total from investment activities................. 0.17 0.19
-------- ---------
Distributions to shareholders:
From net investment income........................ (0.36) (0.08)
In excess of net investment income................
From net realized gains...........................
-------- ---------
Total distributions to shareholders.............. (0.36) (0.08)
-------- ---------
Net asset value -- end of period................... $ 9.92 $ 10.11
======== =========
Total return....................................... 1.81%* 1.82%*
======== =========
Ratios/supplemental data:
Net assets, end of period (000)................... $103,564 $ 121,161
Ratio of gross expense to average net assets...... 0.50%** 0.90%**
Ratio of net expense to average net assets........ 0.35%** 0.35%**
Ratio of gross investment income to average net
assets........................................... 6.79%** 5.41%**
Ratio of net investment income to average net
assets........................................... 6.94%** 5.96%**
Portfolio turnover rate........................... 0%** 94%**
</TABLE>
-------
The Funds commenced operations on the following dates:
(b)December 9, 1996
(k)August 27, 1999
*Not annualized
**Annualized
74 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Investment Quality Bond Fund Total Return Fund
===================================================================================================================
Period ended Year ended Year ended Year ended Year ended Period ended Year ended Year ended Period ended
April 30, October 31, October 31, October 31, October 31, April 30, October 31, October 31, October 31,
2000 1999 1998 1997 1996 2000 1999 1998 1997 (b)
============= =========== =========== =========== =========== ============ =========== =========== ============
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.44 $ 10.17 $ 10.01 $ 9.81 $ 9.96 $ 9.67 $ 10.23 $ 10.25 $ 10.00
-------- -------- -------- -------- -------- -------- -------- -------- --------
0.35 0.58 0.60 0.58 0.63 0.35 0.66 0.57 0.46
(0.30) (0.65) 0.20 0.22 (0.17) (0.29) (0.60) 0.20 0.23
-------- -------- -------- -------- -------- -------- -------- -------- --------
0.05 (0.07) 0.80 0.80 0.46 0.06 0.06 0.77 0.69
-------- -------- -------- -------- -------- -------- -------- -------- --------
(0.33) (0.58) (0.59) (0.60) (0.61) (0.31) (0.57) (0.58) (0.44)
(0.13)
(0.08) (0.05) (0.05) (0.08)
-------- -------- -------- -------- -------- -------- -------- -------- --------
(0.33) (0.66) (0.64) (0.60) (0.61) (0.31) (0.62) (0.79) (0.44)
-------- -------- -------- -------- -------- -------- -------- -------- --------
$ 9.16 $ 9.44 $ 10.17 $ 10.01 $ 9.81 $ 9.42 $ 9.67 $ 10.23 $ 10.25
======== ======== ======== ======== ======== ======== ======== ======== ========
0.54%* (0.71)% 8.33% 8.44% 4.86% 0.66%* 0.55% 7.72% 7.10%*
======== ======== ======== ======== ======== ======== ======== ======== ========
$122,636 $195,228 $173,974 $ 94,987 $ 32,304 $282,753 $230,440 $174,612 $ 98,863
0.50%** 0.50% 0.50% 0.53% 0.64% 0.50%** 0.50% 0.52% 0.69%**
0.50%** 0.50% 0.44% 0.45% 0.00% 0.50%** 0.50% 0.44% 0.45%**
6.63%** 6.06% 6.06% 5.95% 5.77% 6.90%** 5.58% 5.99% 5.97%**
6.63%** 6.06% 6.12% 6.03% 6.41% 6.90%** 5.58% 6.07% 6.21%**
119%** 67% 156% 317% 197% 154%** 45% 208% 206%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 75
<PAGE>
Financial Highlights continued
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
High Income Fund
======================================
Period ended Year ended Period ended
April 30, October 31, October 31,
2000 1999 1998 (h)
============ =========== ============
<S> <C> <C> <C>
Net asset value -- beginning of period.. $ 9.52 $ 9.77 $ 10.00
-------- -------- -------
Income (loss) from investment
activities:
Net investment income.................. 0.60 0.89 0.47
Net realized and unrealized gains
(losses).............................. (0.53) (0.34) (0.34)
-------- -------- -------
Total from investment activities..... 0.07 0.55 0.13
-------- -------- -------
Distributions to shareholders:
From net investment income............. (0.41) (0.80) (0.36)
In excess of net investment income.....
From net realized gains................
-------- -------- -------
Total distributions to shareholders.. (0.41) (0.80) (0.36)
-------- -------- -------
Net asset value -- end of period........ $ 9.18 $ 9.52 $ 9.77
======== ======== =======
Total return............................ 0.74%* 5.65% 1.28%*
======== ======== =======
Ratios/supplemental data:
Net assets, end of period (000)........ $106,474 $109,297 $91,669
Ratio of gross expense to average net
assets................................ 0.57%** 0.55% 0.71%**
Ratio of net expense to average net
assets................................ 0.57%** 0.55% 0.54%**
Ratio of gross investment income to
average net assets.................... 8.95%** 7.99% 7.58%**
Ratio of net investment income to
average net assets.................... 8.95%** 7.99% 7.75%**
Portfolio turnover rate................ 120%** 68% 134%**
</TABLE>
-------
The Funds commenced operations on the following dates:
(h)December 30, 1997
*Not annualized
**Annualized
76 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
Short Duration Tax Exempt Fund
==================================================================================
Period ended Year ended Year ended Year ended Year ended
April 30, October 31, October 31, October 31, October 31,
2000 1999 1998 1997 1996
============ =========== =========== =========== ===========
<S> <C> <C> <C> <C>
$ 9.87 $ 10.11 $ 10.08 $ 10.01 $ 10.08
------- ------- ------- ------- -------
0.19 0.37 0.42 0.38 0.38
(0.05) (0.15) 0.03 0.07 (0.06)
------- ------- ------- ------- -------
0.14 0.22 0.45 0.45 0.32
------- ------- ------- ------- -------
(0.19) (0.37) (0.41) (0.38) (0.38)
(0.02) (0.09) (0.01) (0.01)
------- ------- ------- ------- -------
(0.21) (0.46) (0.42) (0.38) (0.39)
------- ------- ------- ------- -------
$ 9.80 $ 9.87 $ 10.11 $ 10.08 $ 10.01
======= ======= ======= ======= =======
1.36%* 2.29% 4.55% 4.55% 3.28%
======= ======= ======= ======= =======
$17,020 $15,061 $16,825 $38,176 $36,336
0.82%** 0.85% 0.68% 0.62% 0.70%
0.50%** 0.50% 0.44% 0.45% 0.45%
3.54%** 3.27% 3.75% 3.58% 3.56%
3.86%** 3.62% 3.99% 3.75% 3.81%
50%** 54% 53% 57% 35%
</TABLE>
See notes to financial statements.
Semi-Annual Report 77
<PAGE>
Financial Highlights continued
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Tax Exempt Bond Fund
=============================================================
Period ended Year ended Year ended Year ended Year ended
April 30, October 31, October 31, October 31, October 31,
2000 1999 1998 1997 1996
============ =========== =========== =========== ===========
<S> <C> <C> <C> <C> <C>
Net asset value --
beginning of period... $ 9.43 $ 9.92 $ 9.71 $ 9.47 $ 9.59
------- ------- ------- ------- -------
Income (loss) from
investment activities:
Net investment income.. 0.25 0.42 0.40 0.44 0.45
Net realized and
unrealized gains
(losses).............. (0.07) (0.49) 0.20 0.24 (0.12)
------- ------- ------- ------- -------
Total from investment
activities........... 0.18 (0.07) 0.60 0.68 0.33
------- ------- ------- ------- -------
Distributions to
shareholders:
From net investment
income................ (0.24) (0.42) (0.39) (0.44) (0.45)
In excess of net
investment income
From net realized
gains.................
------- ------- ------- ------- -------
Total distributions to
shareholders......... (0.24) (0.42) (0.39) (0.44) (0.45)
------- ------- ------- ------- -------
Net asset value -- end
of period.............. $ 9.37 $ 9.43 $ 9.92 $ 9.71 $ 9.47
======= ======= ======= ======= =======
Total return............ 1.89%* (0.81)% 6.32% 7.33% 3.52%
======= ======= ======= ======= =======
Ratios/supplemental
data:
Net assets, end of
period (000).......... $20,577 $46,452 $67,889 $57,579 $49,862
Ratio of gross expense
to average net
assets................ 0.62%** 0.57% 0.57% 0.59% 0.61%
Ratio of net expense to
average net assets.... 0.50%** 0.50% 0.49% 0.45% 0.45%
Ratio of gross
investment income to
average net assets.... 4.53%** 4.07% 4.00% 4.46% 4.57%
Ratio of net investment
income to average net
assets................ 4.65%** 4.14% 4.08% 4.60% 4.73%
Portfolio turnover
rate.................. 31%** 28% 36% 42% 23%
</TABLE>
-------
The Funds commenced operations on the following dates:
(i)December 17, 1998
*Not annualized
**Annualized
78 Payden & Rygel Investment Group
<PAGE>
<TABLE>
<CAPTION>
California Municipal
Income Fund
=====================================================================
Period ended Period ended
April 30, October 31,
2000 1999 (i)
============ ============
<S> <C>
$ 9.62 $ 10.00
------- -------
0.20 0.26
0.02 (0.38)
------- -------
0.22 (0.12)
------- -------
(0.20) (0.26)
------- -------
(0.20) (0.26)
------- -------
$ 9.64 $ 9.62
======= =======
2.28%* (1.22)%*
======= =======
$41,458 $28,690
0.59%** 0.77%**
0.50%** 0.50%**
4.05%** 3.17%**
4.14%** 3.44%**
86%** 39%**
</TABLE>
See notes to financial statements.
Semi-Annual Report 79
<PAGE>
Trustees and Officers
Trustees
Joan A. Payden, Chairman and Chief Executive Officer
President, Payden & Rygel
W.D. Hilton, Jr.
CEO, Trust Services, Inc.
John P. Isaacson
Managing Principal, Payden & Rygel
J. Clayburn La Force
University of California, Los Angeles
Dean Emeritus, The John E. Anderson Graduate
School of Management
Gerald S. Levey, M.D.
University of California, Los Angeles
Provost, Medical Sciences and
Dean, UCLA School of Medicine
Thomas V. McKernan, Jr.
President and Chief Executive Officer,
Automobile Club of Southern California
Christopher N. Orndorff
Managing 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
80 Payden & Rygel Investment Group
<PAGE>
[LETTERHEAD OF PAYDEN & RYGEL]
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.
