<PAGE>
[LOGO OF Paydenfunds]
(P)ANNUAL REPORT OCTOBER 31,2000
(F)
<PAGE>
Contents
------------------------------------------------------------------------
<TABLE>
<C> <S>
. Chairman's Letter
i Management Discussion and Analysis
1 Portfolio Highlights and Investments
51 Statements of Cash Flows
52 Statements of Assets and Liabilities
56 Statements of Operations
60 Statements of Changes in Net Assets
68 Notes to Financial Statements
76 Financial Highlights
91 Independent Auditors' Report
92 Trustees and Officers
</TABLE>
Annual Report
<PAGE>
Dear Shareholders
---------------------------------------------------------------------------
Welcome to the Paydenfunds!
As you can see, we have adopted a fresh, new look that symbolizes our
renewed pledge to earn and keep your trust. To be "The Investor's Advocate" is
what we strive for everyday.
Advocate [n.]--(1) one that pleads the cause of another; (2) one that defends
or maintains a cause or proposal
What this means to you is that we will maintain the breadth of our low
expense mutual fund offerings, adhere to our disciplined investment process and
continue to produce publications and other educational materials that are of
value to your needs. We are proud of our fund offerings and our service
standards, but in the end, we know that our shareholders are the reason why we
are so successful. Your objective is to grow your money wisely and ours is to
help you attain that goal.
With each passing year, we are more energized by the changes around us. We
are constantly shown the delicate balance of our world markets, which leads us
to adhere to the successful implementation of our investment process and risk
management in our funds. On the other hand, the constant consolidation of our
industry reinforces why we value our independence and how we need to continue
with our forward progress for our shareholders.
In the past, asset allocation not only looked at separate asset classes but
also at U.S. vs. non-U.S. exposure. New wisdom has shown that investors need to
see sectors and industries on a more global basis. Certainly, the fact that
world equity markets have been so volatile while bond markets strengthened
justifies the need for a global asset allocation plan for any investment
portfolio. Our Global Balanced, European Aggressive Growth, Global Fixed
Income, Emerging Markets Bond, and World Target Twenty funds are great tools to
help you diversify your investments on a global scale.
The euro continues to be a major story of this year, and despite the fact
that the currency has continued to falter, we still look to Europe as a
promising investment. Its growth prospects, which are in part driven by
corporate tax reform and deregulation of its capital markets, still make the
region a good bargain. In fact, our European Aggressive Growth Fund was
featured in the Business/Your Money section of the October 1, 2000 edition of
The Washington Post as evidence of this same fact!
<PAGE>
[LOGO OF PAYDENFUNDS]
---------------------------------------------------------------------------
As we march forward in the twenty-first century, we feel a renewed sense of
pride in our accomplishments and our continued obligation to strive for
excellence. Our Funds have performed well despite a rather uncertain year. We
will do more to earn and keep your trust as your single source for educated
investing and personal service. To that end, please visit our new website,
which is dedicated solely to the interests of our mutual fund shareholders:
www.paydenfunds.com
The site will be one more way for you to access our expertise and research
publications and, more importantly, your account with the convenience you
deserve. We hope you like our new look, and we certainly hope that you see all
of us here at Paydenfunds as "The Investor's Advocate."
As always, we work for you,
/s/ Joan A. Payden
Joan A. Payden
Chairman & CEO
Payden & Rygel Investment Group
<PAGE>
Management Discussion and Analysis
Short Duration Strategies
Assets of the Bunker Hill Money Market Fund more than doubled during the year
to approximately $200 million. The Fund maintained its strategy of holding a
relatively long average maturity of 70 to 80 days and was able to earn a return
of 6.06% for the fiscal year, which placed the fund 23rd out of 367 funds
tracked in Lipper's Money Market Funds category. For the year ended 9/30/00,
the Fund posted a total return of 5.96%, placing it 17th of 362 funds in the
same peer group.
The Limited Maturity Fund strives to earn more than what is available from
money market funds while holding a relatively stable share price. The Fund
ended the year with a net asset value of $9.97, and returned 6.24%. The
portfolio consists primarily of investment grade corporate and asset-backed
securities that mature in 18 months or less.
The Short Bond Fund takes advantage of opportunities in the high quality asset-
backed sector and concentrated on the two-year sector of the yield curve. These
strategies contributed to the Fund's top decile ranking of 110 funds in
Lipper's Short Investment Grade Debt Funds universe for the twelve months
ending 10/31/00. The Fund's return of 6.61% also topped the benchmark return of
6.06%.
An overweight of U.S. agency securities and well-structured mortgages helped
the U.S. Government Fund maintain its solid performance. The Fund returned
6.33% for the fiscal year, which placed it in the top 10% of the 94 funds that
comprise the Lipper Short-Intermediate U.S. Government Funds Index. Likewise,
our GNMA Fund has performed solidly, posting a total return of 7.79% for the
same period, which places it in the top 10% of 54 funds and 4th out of 54 funds
for the year ended 9/30/00 in Lipper's GNMA Funds universe.
Core Bond and Intermediate Maturity Strategies
It is amazing to reflect that it was just one year ago that the world was
bracing for Y2K. That passed with a yawn, and investors were able to refocus on
the fundamental and technical factors that typically drive markets. The year
2000, however, has unfolded to be anything but typical. The Fed Funds target
rate was increased from 5.25% to 6.50%, putting the brakes on a very robust
economy. At the same time, the Treasury announced an unprecedented "buy-back"
program to retire outstanding treasuries in light of budget surpluses. Then,
the credit status of government sponsored agencies such as Fannie Mae and
Freddie Mac was questioned after there was talk of pulling back the level of
government sponsorship and support. As a backdrop to these events, Wall Street
is shrinking further with waves of consolidations. It is imperative that
investors are cognizant of liquidity requirements and structure their
portfolios to match cash flow needs.
With the Fed increasing the Fed Funds target by 1.25%, it is not surprising
that short maturity rates, such as money market securities, also rose by a
similar amount. Yields for Treasury securities ranging from two year maturities
and longer, however, did not increase in a similar fashion, and this has led to
an inversion of the yield curve, where longer maturities have lower yields than
shorter maturities. The two-year Treasury rose 8 basis points to 5.92% over the
twelve month period ending October 31, 2000, while the 30 year Treasury ended
39 basis points lower at 5.79%. This was good news for longer portfolios, which
benefited from the interest rate declines. The Investment Quality Bond Fund
returned 5.74% for the twelve months ending October 31, 2000, and the Total
Return Fund earned 5.60%. Both of these funds are well diversified across
several fixed income sectors including Treasuries, Agencies, Corporates, and
Mortgage-backed securities. In addition, the Total Return fund has weightings
in non-dollar, high yield, and emerging markets securities. These additional
sectors should provide higher returns over time due to their yield advantage.
i
<PAGE>
Management Discussion and Analsys
Global Strategies
The economic environment has been good for global bonds in the last twelve
months. Yields began the fiscal year at a high level relative to the previous
year, which ensured bond returns would be well supported from higher income
levels. In addition, with economic data suggesting global growth peaked in the
early summer, bond yields have fallen modestly as concerns about rising
inflation are lessened. As yields drop, bond prices increase with the value of
future coupon payments. This resulted in a total return for the Global Fixed
Income Fund of 6.96% in the twelve-month period ending October 31, 2000. The
Global Short Bond Fund returned 5.93% over the same period. We are pleased that
the Global Fixed Income Fund earned ***** Morningstar ratings out of 2,154
funds in their Taxable Bond category for the five-year period ended 9/30/00 and
10/31/00./1/
On a currency-hedged basis government bonds in the various developed markets
had similar performance. The U.S. treasury market did outpace its counterparts
in Europe and Japan modestly as the debt buy-back program and the sell-off in
the corporate bond market increased the demand for treasuries. We held an
overweight position in the U.S. portion of the Funds during the year to
capitalize on this technical factor.
The strength of the U.S. dollar has resulted in negative returns for many
global-bond funds. We have, however, maintained our currency-hedged position
over the entire period, protecting the funds from the depreciation in the euro,
the British pound, and the Australian and New Zealand dollars.
High Yield Strategies
Over the past year, the high yield bond market has been suffering through a
period of substantial volatility. Equity market weakness, rising defaults, and
concern over future growth has resulted in poor investor sentiment. Outflows
from high yield mutual funds have been steady over the course of the year, and
the issuance of collateralized debt obligations backed by high yield bonds have
fallen.
One of the primary factors weighing down the high yield market was the
continuing volatility in the NASDAQ. The lack of an interest rate increase by
the Federal Reserve on August 22nd and the neutral bias did give a temporary
boost to the high yield market, albeit the bounce was short-lived as the
markets become more focused on rising fuel prices and their impact on the
economy and high yield credits. The continuing weakness in the euro currency
and negative earnings surprises (e.g. Intel) also continued to depress the high
yield market as uncertainty will not lead to renewed inflows into high yield
mutual funds.
The High Income Fund has been positioned defensively ahead of the sector's
spread widening, and as a result, has outperformed the index and peer group by
a significant margin for the year-to-date period. For the one-year period ended
10/31/00, the Fund returned 0.59%. We have underweighted the lower tier of the
market, and have generally emphasized larger, more liquid issues. These
positions have held up well as liquidity has fallen. Going forward, while we
expect the volatility to continue, the general sell-off has presented
opportunities to purchase solid credits at historically high yields. We view
this as an opportunity and will use cash to make these purchases over the near
term.
-------
/1/ (C)1999 by Morningstar. All rights reserved. Morningstar's proprietary
ratings reflect historical risk-adjusted performance as of September 30 and
October 31, 2000, and are subject to change monthly. Specifically, they are
calculated from the fund's 3-and 5-year average annual returns in excess of
90-day Treasury bill returns with appropriate adjustments for fees and a risk
factor that reflects performance below a 90-day Treasury bill return. The top
10% of the funds in an investment category receive five stars and the next
22.5% receive four stars.
ii
<PAGE>
Management's Discussion and Analysis continued
Emerging Markets Strategies
Over the last twelve months, emerging market credit trends have been largely
positive. Interest spreads were also influenced by volatility in the U.S.
equity markets and concern about the extent of a U.S. slowdown. Overall
emerging market spreads tightened about 250 basis points over the last twelve
months (although about 100 basis points of this was due to a technical change
in the spread calculation of Soviet-era defaulted loans that were restructured
into Russian eurobonds).
Rating agency trends on emerging market sovereigns during this period were
overwhelmingly slanted toward upgrades. Russia was the top performer over the
last twelve months, supported by improving macroeconomic and political trends,
as well as good technicals as a result of the successful London Club
restructuring of Soviet-era debt. Mexican assets performed well after Moody's
upgrade to investment grade this year and a peaceful democratic presidential
transition. Brazil also continued strong economic performance as inflation and
interest rates declined, and IMF fiscal targets were met. The markets have
become increasingly concerned, however, about Argentina and its prospects for
economic recovery.
The strategy of the Emerging Markets Bond Fund during this period has been to
overweight Russia and Central Europe, and overweight Latin American countries
with improving fundamentals and upgrade potential such as Brazil and Mexico.
Within Latin America, we have been underweight in Argentina due to growing
concerns about the country's political fragility and external financing needs,
and have avoided exposure to the Andean countries including Peru and Colombia.
We have also underweighted Asia (due to limited relative value opportunities)
and Africa. The Fund has returned 18.13% during the last twelve months, on par
with J.P. Morgan's EMBI Global and outperforming the EMBI Global Constrained
Indices.
Tax Exempt Bond Strategies
Municipal investors were rewarded for having the fortitude to weather the
market's volatility in the beginning of the year and remaining steadfast to
their investment objectives. The municipal market encountered many challenges
during the course of the year, with the most notable: (1) Y2K, (2) the Federal
Reserve's proactive posture toward inflationary pressures, and (3) the Treasury
buy-back program.
The market assumed a "wait-and-see" approach in the first quarter as we entered
the Year 2000. Once the New Year began and it became apparent that there were
no lingering computer problems resulting from the date change, trading resumed
as normal. All eyes focused on the Federal Reserve as they continued to take
preemptive action to stem potential inflationary pressures. The Federal Reserve
increased short-term rates on four occasions; the last of the increases
occurred in May, with the Federal Funds Rate at 6.50%. While short-term rates
were on the rise, long-term rates began to fall. Economic data suggested that
the economy was heading toward a soft landing. In addition, the Treasury was
using the budget surplus to buy back long-term Treasury bonds. This placed a
premium on long bonds causing long-term interest rates to fall. The municipal
yield curve followed the Treasury curve and flattened.
iii
<PAGE>
Management Discussion and Analysis
The Short Duration Tax Exempt Fund posted a 4.18% total return and the Tax
Exempt Bond Fund posted 6.70% for the trailing one-year period ended 10/31/00.
Out of 1,856 funds in the Municipal Bond category, the Short Duration Tax
Exempt Fund earned a ***** Morningstar rating and the Tax Exempt Bond Fund
earned a **** Morningstar rating for each of the one year periods ended
9/30/00 and 10/31/00. The Tax Exempt Bond Fund and the California Municipal
Income Fund performed well due to their longer maturity orientation. We
purchased long bonds throughout the year to take advantage of falling yields.
Our allocation to bonds in the 4- to 5-year maturity range benefited the
portfolio as yields fell. These portfolios have greater sensitivity to interest
rate movements than the Short Duration Tax Exempt Fund, causing them to perform
better in a declining interest rate environment. The California market
outperformed other segments of the municipal market. The yield on intermediate
California tax-exempt bonds fell by approximately 50 basis points. Heavy demand
was met with limited supply in the California market, causing California tax-
exempt bond yields to decline by more than any other state. As with the Tax
Exempt Bond Fund, we purchased more long-term bonds than normal to increase the
portfolio's sensitivity to declining interest rates. As a result, the
California Municipal Income Fund was able to post a 7.68% total return for the
year.
Equity Strategies
Stocks were mixed during this fiscal year. Although annual corporate profits
were strong again, investors began to appreciate the high prices being paid for
that growth. Consequently, the market price to earnings ratio contracted and
the S&P 500 index gained only 6.1%. Leadership was more broadly based, with
energy and healthcare adding to the usual gains in the technology sector. For
the first time in several years, stocks characterized as a "value" style
outperformed "growth" stocks. The S&P 500/BARRA Growth index advanced 2.1%,
while the S&P 500/BARRA Value index rose 9.7%. Nearly one-half of the stocks in
the S&P 500 index (231 stocks, or 46%) posted a negative return for the year
ending October 31, 2000. The Market Return Fund returned 3.15% and the Growth &
Income Fund returned 0.47% during that same period.
Small cap stocks soundly beat their large cap cousins. The Russell 2000 index
gained 17.6%, or nearly 1150 basis points more than the S&P 500. We believe
small cap stocks continue to have greater consensus forecast earnings growth at
lower valuations than large cap stocks. In addition, they are an excellent
diversifier as this past year so vividly demonstrated. Our Small Cap Leaders
Fund returned 16.48% since its inception on 12/20/99, while our U.S. Growth
Leaders Fund posted a total return of 9.75% for the trailing one-year period
ended 10/31/00.
European stocks strongly outpaced U.S. stocks in local currency terms. The Dow
Jones Europe STOXX index rose 25.5% on the continued strength and restructuring
of the European economy. The new currency, the euro, did not fare as well;
therefore, in U.S. dollar terms, the Dow Jones Europe STOXX index only advanced
2.5%. The European Growth & Income Fund returned -32.13% for the one-year
period ended 10/31/00. The World Target Twenty Fund has had a rough start since
its inception on March 31, 2000, and returned -16.22% since its inception.
Based on its 12-month total return of 48.83%, however, the European Aggressive
Growth Fund outperformed its benchmark by an impressive 34.77%.
-------
/2/ (C)1999 by Morningstar. All rights reserved. Morningstar's proprietary
ratings reflect historical risk-adjusted performance as of September 30 and
October 31, 2000, and are subject to change monthly. Specifically, they are
calculated from the fund's 3- and 5-year average annual returns in excess
of 90-day Treasury bill returns with appropriate adjustments for fees and a
risk factor that reflects performance below a 90-day Treasury bill return.
The top 10% of the funds in an investment category receive five stars and
the next 22.5% receive four stars.
iv
<PAGE>
Management Discussion and Analysis continued
Likewise, our Global Balanced Fund posted a total return of 4.08% for the same
period, earning a **** Morningstar rating of 1,208 funds in Morningstar's
International Equity category for each of the one year periods ended 9/30/00
and 10/31/00./3/ We continue to believe that European stocks offer outstanding
opportunities for return and diversification.
-------
/3/ (C)1999 by Morningstar. All rights reserved. Morningstar's proprietary
ratings reflect historical risk-adjusted performance as of September 30 and
October 31, 2000, and are subject to change monthly. Specifically, they are
calculated from the fund's 3- and 5-year average annual returns in excess
of 90-day Treasury bill returns with appropriate adjustments for fees and a
risk factor that reflects performance below a 90-day Treasury bill return.
The top 10% of the funds in an investment category receive five stars and
the next 22.5% receive four stars.
v
<PAGE>
Portfolio Highlights & Investments
--------------------------------------------------------------------------------
This section includes unaudited Country Allocation, Portfolio Composition
tables, and audited Schedules of Portfolio Investments. In the case of the
Group's fixed income Funds, these tables are designed to identify the country
or type of security where a Fund is exposed to changes in interest rates. In
the case of the Group's equity Funds, these tables are designed to identify the
holdings and industries of each Fund. In either case, if a Fund makes use of
futures, options or forward currency contracts, the tables and Schedules of
Investments include the effect of those contracts. Unless indicated otherwise,
information in this section is as of October 31, 2000.
Annual Report
1
<PAGE>
Global Short Bond Fund
Unaudited
The objective of the Global Short Bond Fund is to realize a high level of total
return consistent with preservation of capital. The Fund invests primarily in
U.S. and foreign government notes and bonds and U.S. and foreign corporate debt
securities. The Fund also has substantial investments in foreign currency con-
tracts. The Fund's maximum average portfolio maturity (on a dollar-weighted ba-
sis) is three years.
Country Allocation
<TABLE>
------------------
<S> <C>
Euroland 29%
U.S. 22%
Great Britain 20%
New Zealand 11%
Canada 9%
Japan 5%
Sweden 4%
------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 80%
AA 19%
A 1%
BBB 0%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 5.93%
Three Year, 5.43%
Since 9/18/96, 5.95%
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $154.0
Number of Issues 23
Average Maturity 1.8 years
SEC Yield 4.62%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Canada (Canadian Dollar) (9%)
10,630,000 Canadian Government
Bond, 5.25%, 9/1/03 $ 6,852.4
11,050,000 Canadian Government
Note, 5.50%, 9/1/02 7,194.9
----------
Canada 14,047.3
Germany (Euro) (15%)
8,000,000 Allgemeine Hypobk
AG, 4.25%, 6/25/01 6,732.7
5,300,000 Depfa Pfandbrief
Bank,
5.25%, 12/14/01 4,488.6
6,800,000 German Government
Bond,
4.75%, 11/20/01 5,740.2
4,000,000 Rheinische Hypo Bank
AG, 4.50%, 8/26/03 3,310.2
2,680,000 Treuhandanstalt,
6.50%, 4/23/03 2,338.9
----------
Germany 22,610.6
Great Britain (British Pound)
(20%)
8,070,000 UK Treasury Note,
6.50%, 12/7/03 11,972.6
12,950,000 UK Treasury Note,
7.00%, 6/7/02 19,144.9
----------
Great Britain 31,117.5
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------------------------------------------
<C> <S> <C>
Italy (Euro) (9%)
7,000,000 Italian Government
BTP, 6.25%, 3/1/02 $ 6,009.6
715,000,000 Italian Government
Bond,
5.13%, 7/29/03
(Japanese Yen) 7,349.8
----------
Italy 13,359.4
Netherlands (Euro) (2%)
3,100,000 Netherlands
Government Bond,
8.50%, 3/15/01 2,656.7
New Zealand (New Zealand Dollar)
(11%)
25,910,000 New Zealand
Government Bond,
5.50%, 4/15/03 10,022.2
15,500,000 New Zealand
Government Bond,
10.00%, 3/15/02 6,415.8
----------
New Zealand 16,438.0
Spain (Euro) (3%)
4,100,000 Spanish Government
Bond,
5.00%, 1/31/01 3,473.0
2,300,000 Spanish Government
Bond,
4.25%, 7/30/02 1,918.6
----------
Spain 5,391.6
</TABLE>
Paydenfunds
2
<PAGE>
Global Short Bond Fund
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
-----------------------------------------------
<C> <S> <C>
Supranational (Japanese Yen)
(5%)
738,000,000 IBRD-World Bank
EuroYen, 4.50%,
3/20/03 $ 7,398.3
Sweden (Swedish Krona) (4%)
67,400,000 Swedish Government
Bond,
5.50%, 4/12/02 6,823.1
United States (United States
Dollar) (12%)
2,000,000 GMAC,
5.50%, 2/2/05 (Euro) 1,659.1
4,900,000 U.S. Treasury Note,
4.25%, 11/15/03 4,678.3
2,600,000 U.S. Treasury Note,
5.75%, 8/15/03 2,590.3
9,240,000 U.S. Treasury Note,
7.50%, 2/15/05 9,804.8
----------
United States 18,732.5
Investment Companies (0%)
615,393 Bunker Hill Money
Market Fund * 615.4
----------
Total (Cost - $150,182.2) (a)
(90%) 139,190.4
Other Assets, net of Liabilities
(10%) 14,841.0
----------
Net Assets (100%) $154,031.4
==========
</TABLE>
* Affiliated Investment
(a) For federal income tax purposes, cost is $150,194,597 and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 737,440
Unrealized depreciation (11,741,603)
------------
Net unrealized
depreciation $(11,004,163)
============
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
11/30/00 British
Pound (sell) 0.6587 $ 26,901,618 $1,161,954
11/30/00 British
Pound (sell) 0.6877 1,454,040 1,463
11/30/00 Canadian
Dollar (sell) 1.4637 7,645,009 311,055
11/30/00 Canadian
Dollar (sell) 1.5100 7,006,623 72,464
11/30/00 Euro (sell) 1.0404 16,368,214 1,914,853
11/30/00 Euro (sell) 1.0582 24,569,350 2,503,150
11/30/00 Euro (sell) 1.1396 2,895,684 94,974
11/30/00 Japanese
Yen (sell) 108.3280 14,973,045 34,063
11/30/00 New Zealand
Dollar (sell) 2.1691 7,786,628 1,089,405
11/30/00 New Zealand
Dollar (sell) 2.4918 9,912,604 118,560
11/30/00 Swedish
Krona (sell) 8.8542 7,878,747 895,554
------------ ----------
$127,391,562 $8,197,495
============ ==========
Liabilities:
11/30/00 British Pound (sell) 0.7023 $ 4,720,229 $ (95,064)
============ ==========
</TABLE>
See notes to financial statements.
Annual Report
3
<PAGE>
Global Fixed Income Fund
Unaudited
The objective of the Global Fixed Income Fund is to realize a high level of to-
tal return consistent with preservation of capital. The Fund invests primarily
in investment grade U.S. and foreign government notes and bonds and U.S. and
foreign corporate debt securities. The Global Fixed Income Fund invests in se-
curities payable in U.S. dollars and foreign currencies.
Country Allocation
<TABLE>
-------------------
<S> <C>
U.S. 44%
Euroland 24%
Japan 17%
United Kingdom 10%
Canada 2%
Other 3%
-------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 71%
AA 16%
A 11%
BBB 2%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 6.96%
Three Year, 6.34%
Five Year, 7.04%
Since 9/1/92, 7.32%
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $523.4
Number of Issues 48
Average Maturity 8.9 years
SEC Yield 4.36%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
----------------------------------------------
<C> <S> <C>
Austria (Japanese Yen) (4%)
2,370,000,000 Oesterreich
Kontrollbank,
1.80%, 3/22/10 $ 21,745.5
Belgium (Euro) (2%)
10,980,000 Belgium
Government Bond,
5.75%, 9/28/10 9,424.7
2,700,000 Belgium
Government Bond,
9.00%, 3/28/03 2,477.9
----------
Belgium 11,902.6
Canada (Canadian Dollar) (2%)
7,400,000 Canada Government
Bond,
5.50%, 6/1/10 4,748.9
6,500,000 Canadian
Government Note,
8.75%, 12/1/05 4,790.3
----------
Canada 9,539.2
France (Euro) (4%)
24,380,000 France Government
Bond,
5.50%, 10/25/07 20,953.4
Germany (Euro) (12%)
5,450,000 Bundes Republic
Deutschland,
5.25%, 1/4/08 4,630.9
4,000,000 Bundesobligation,
5.00%, 8/20/01 3,385.8
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------------------------------------------------
<C> <S> <C>
11,800,000 Bundes Republic
Deutschland, 5.25%,
1/4/11 $ 10,024.5
14,560,000 Bundesschatzanweisungen,
4.00%, 12/14/01 12,192.1
10,800,000 Deutsche
Ausgleichsbank,
4.00%, 7/4/09 8,129.3
24,700,000 Deutschland
Republic,
5.63%, 1/4/28 20,872.5
4,460,000 Treuhandanstalt,
6.50%, 4/23/03 3,892.3
----------
Germany 63,127.4
Great Britain (British Pound)
(9%)
5,000,000 Standard Chartered
Bank, 5.38%, 5/6/09
(Euro) 3,840.8
7,070,000 UK Treasury Note,
7.25%, 12/7/07 11,350.2
2,410,000 UK Treasury Note,
7.00%, 6/7/02 3,562.9
6,380,000 UK Treasury Note,
8.50%, 12/7/05 10,454.6
6,350,000 UK Treasury Note,
5.00%, 6/7/04 9,025.3
1,260,000 UK Treasury Note,
5.75%, 12/7/09 1,907.4
</TABLE>
Paydenfunds
4
<PAGE>
Global Fixed Income Fund
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
----------------------------------------------
<C> <S> <C>
4,660,000 UK Treasury Note,
8.00%, 6/7/21 $ 9,624.1
---------
Great Britain 49,765.3
Italy (Japanese Yen) (5%)
2,120,000,000 Republic of
Italy,
3.75%, 6/8/05 21,830.1
330,000,000 Republic of
Italy,
5.13%, 7/29/03 3,392.2
---------
Italy 25,222.3
Netherlands (Euro) (5%)
32,630,000 Netherlands
Government Bond,
5.75%, 2/15/07 28,356.3
Poland (Polish Zloty) (2%)
50,000,000 Poland Government
Bond,
8.50%, 2/12/05 8,415.4
Spain (Japanese Yen) (4%)
2,270,000,000 Kingdom of Spain,
3.10%, 9/20/06 22,952.9
Supranational (Japanese Yen)
(4%)
1,950,000,000 International
Bank Recon &
Develop,
5.25%, 3/20/02 19,060.0
Sweden (Swedish Krona) (1%)
50,900,000 Swedish
Government Bond,
6.50%, 5/5/08 5,493.8
United States (United States
Dollar) (38%)
6,000,000 AT&T Corp.,
6.00%, 3/15/09 5,265.0
8,050,000 Citibank Credit
Card Master,
4.50%, 8/25/06
(Euro) (d) 6,566.8
6,530,000 Daimler Chrysler
Auto Trust,
7.09%, 12/6/03 6,565.4
5,000,000 Edison Mission
Energy,
7.73%, 6/15/09 4,781.3
6,000,000 Electronic Data
Systems,
6.85%, 10/15/04 5,970.0
10,844,619 FHR 2125,
6.00%, 9/15/06 10,737.6
2,600,000 First USA Credit
Card Master
Trust,
6.42%, 3/17/05 2,588.8
7,575,297 FNMA 98-11,
6.00%, 2/18/21
(Japanese Yen) 7,433.9
930,000,000 FNMA,
1.75%, 3/26/08 8,623.3
9,650,000 Ford Credit Auto
Owner Trust,
7.24%, 2/15/04
(Japanese Yen) 9,697.6
800,000,000 Ford Motor Credit
Co.,
1.20%, 2/7/05 7,198.3
8,050,000 GMAC Swift Trust
99-1,
5.00%, 1/18/05
(Euro) (c) 6,620.7
2,000,000 GMAC,
5.50%, 2/2/05
(Euro) 1,659.1
8,650,000 MBNA American
Europe,
4.38%. 8/19/04
(Euro) 7,013.8
53,750,000 U.S. Treasury
Bond,
5.50%, 8/15/28
(b) 50,585.2
2,800,000 U.S. Treasury
Note,
4.25%, 11/15/03 2,673.3
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
19,800,000 U.S. Treasury Note,
5.75%, 8/15/10 $ 19,781.4
16,350,000 U.S. Treasury Note,
7.00%, 7/15/06 17,235.5
9,400,000 U.S. Treasury Note,
7.50%, 2/15/05 9,974.6
6,000,000 Wells Fargo & Co.,
6.63%, 7/15/04 5,917.5
----------
United States 196,889.1
Investment Companies (2%)
9,792,101 Bunker Hill Money
Market Fund * 9,792.1
----------
Total (Cost - $522,493.2) (a)
(94%) 493,215.3
Other Assets, net of Liabilities
(6%) 30,182.0
----------
Net Assets (100%) $523,397.3
==========
</TABLE>
* Affiliated Investment
(a) For federal income tax purposes, cost is $522,595,495, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,793,203
Unrealized depreciation (31,173,391)
------------
Net unrealized
depreciation $(29,380,188)
============
</TABLE>
(b) All or a portion of the security is held by the custodian in a segregated
account.
(c) Certain conditions for public sale may exist.
(d) Security exempt from registration under Rule 144(a) of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See notes to financial statements.
Annual Report
5
<PAGE>
Global Fixed Income Fund continued
Open Futures Contracts
<TABLE>
<CAPTION>
Number of Expiration Current Unrealized
Contracts Contract Type Date Value (Depreciation)
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
14 Japan 10 Year Dec-00 $17,152,203 $(41,750)
Bond Future
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Contract Appreciation
Date Currency Price Value (Depreciation)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
11/30/00 British
Pound (buy) 0.6905 $ 5,503,160 $ 16,633
11/30/00 British
Pound (sell) 0.6587 47,411,825 2,047,845
11/30/00 British
Pound (sell) 0.6835 1,901,900 13,550
11/30/00 Canadian
Dollar (sell) 1.4637 9,564,802 389,167
11/30/00 Canadian
Dollar (sell) 1.4790 486,815 14,925
11/30/00 Euro (sell) 1.0405 84,580,320 9,894,720
11/30/00 Euro (sell) 1.0582 65,439,519 6,667,044
11/30/00 Euro (sell) 1.1063 6,055,795 369,505
11/30/00 Euro (sell) 1.1451 15,055,864 424,276
11/30/00 Japanese
Yen (sell) 106.4240 48,485,304 960,551
11/30/00 Japanese
Yen (sell) 104.9000 57,340,324 1,940,831
11/30/00 Japanese
Yen (sell) 106.8000 2,808,989 45,922
11/30/00 Swedish
Krona (sell) 8.8542 22,581,374 2,566,759
11/30/00 Swedish
Krona (sell) 9.8371 1,474,019 22,524
------------- -----------
$ 368,690,010 $25,374,252
============= ===========
Liabilities:
11/30/00 British
Pound (sell) 0.69119 $5,063,595.00 $ (20,325)
11/30/00 Euro (buy) 1.14590 5,454,219 (149,844)
11/30/00 Euro (sell) 1.18648 5,495,252 (38,272)
11/27/00 Polish
Zloty (sell) 4.74970 8,779,502 (111,282)
11/30/00 Swedish Krona
(buy) 9.610000 16,472,425 (626,103)
------------- -----------
$ 41,264,993 $ (945,826)
============= ===========
</TABLE>
See notes to financial statements.
Paydenfunds
6
<PAGE>
Emerging Markets Bond Fund
Unaudited
The objective of the Emerging Markets Bond Fund is to realize a high level of
total return consistent with preservation of capital. The Fund invests at least
75% of its total assets in debt securities issued by governments, agencies and
instrumentalities of emerging market countries, and corporations organized or
headquartered in emerging market countries. Substantially all of these securi-
ties are rated below investment grade.
Country Allocation
<TABLE>
------------------
<S> <C>
Brazil 21%
Mexico 16%
Russia 14%
United States 12%
Argentina 7%
Korea 7%
Bulgaria 5%
Venezuela 5%
Philippines 3%
Panama 3%
Morocco 2%
Slovakia 2%
South Africa 2%
Other 1%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 18.13%
Since 12/17/98, 16.62%
Statistics
<TABLE>
-----------------------------------
<S> <C>
Net Assets (in millions) $49.3
Number of Issues 30
Average Maturity 14 years
SEC Yield 10.64%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Argentina (8%)
1,000,000 Argentina Government
Bond,
11.75%, 4/7/09 $ 872.5
1,260,000 Argentina Government
Bond,
7.375%, 3/31/05 1,102.5
1,150,000 Cablevision,
13.75%, 4/30/07 (b) 908.5
1,050,000 Multicanal SA,
13.125%, 4/15/09 (b) 913.5
---------
Argentina 3,797.0
Brazil (22%)
6,464,903 Brazil C-Bond,
8.00%, 4/15/14 4,827.7
2,860,000 Brazil Government
Bond,
7.63%, 4/15/06 2,602.6
3,000,000 Brazil Government
Bond,
11.00%, 8/17/40 2,280.0
1,250,000 Globo Communicacoes,
10.50%, 12/20/06 (c) 1,084.4
---------
Brazil 10,794.7
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Bulgaria (5%)
3,250,000 Bulgaria Government
Bond,
3.00%, 7/28/12 $ 2,327.8
----------
Bulgaria 2,327.8
Mexico (17%)
1,750,000 Innova SA,
12.88%, 4/1/07 1,581.6
1,500,000 Pemex,
9.13%, 10/13/10 1,455.0
1,750,000 San Luis Corporation
SA,
8.88%, 3/18/08 (c) 1,601.2
1,750,000 United Mexican
States,
6.25%, 12/31/19 1,540.0
2,000,000 United Mexican
States,
9.88%, 2/1/10 2,080.0
----------
Mexico 8,257.8
Morocco (2%)
1,250,000 Morocco Government
Bond,
7.75%, 1/1/09 1,086.8
----------
Morocco 1,086.8
</TABLE>
Annual Report
7
<PAGE>
Emerging Markets Bond Fund continued
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Panama (3%)
1,500,000 Panama Government
Bond,
10.75%, 5/15/20 $ 1,459.5
---------
Panama 1,459.5
Philippines (3%)
1,500,000 Philippines
Government Bond,
9.88%, 1/15/19 1,117.5
600,000 Philippines Long
Distance,
10.50%, 4/15/09 510.0
---------
Philippines 1,627.5
Russia (14%)
1,250,000 Russian Federation,
11.75%, 6/10/03 (c) 1,196.9
2,750,000 Russian Federation,
10.00%, 6/26/07 (c) 2,059.1
2,500,000 Russian Federation,
12.75%, 6/24/28 (c) 2,109.4
4,700,000 Russian Federation,
2.50%, 3/31/30 (c) 1,750.8
---------
Russia 7,116.2
Slovakia (2%)
1,000,000 Eurotel,
11.25%, 3/30/07 (b) 783.9
---------
Slovakia 783.9
South Africa (2%)
1,100,000 South African
Government Bond,
9.13%, 5/19/09 1,072.5
---------
South Africa 1,072.5
South Korea (7%)
1,750,000 Cho Hung Bank
11.50%, 4/1/10 (b) 1,673.4
1,750,000 Hanvit Bank,
11.75%, 3/1/10 (b) 1,677.8
---------
South Korea 3,351.2
Turkey (1%)
625,000 Turkey Government
Bond,
12.38%, 6/15/09 628.1
---------
Turkey 628.1
United States (10%)
5,000,000 FHLMC,
6.43%, 11/03/00 4,998.2
---------
United States 4,998.2
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Venezuela (6%)
3,404,726 Venezuela Government
Bond FLIRB, 7.63%,
3/31/07 $ 2,808.9
---------
Venezuela 2,808.9
Investment Companies (2%)
965,313 Bunker Hill Money
Market Fund* 965.3
---------
Total (Cost - $52,288.6) (a)
(104%) 51,075.4
Liabilities in excess of Other
Assets (-4%) (1,813.2)
---------
Net Assets (100%) $49,262.2
=========
</TABLE>
* Affiliated Investment
(a) For federal income tax purposes, cost is $52,298,885, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 429,927
Unrealized depreciation (1,653,406)
-----------
Net unrealized depreciation $(1,223,479)
===========
</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.
(c) Certain conditions for public sale may exist.
FLIRB: Front Loaded Interest Reduction Bond
IAN: Interest Arrears Note
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Delivery Contract Contract Unrealized
Date Currency Price Value (Depreciation)
------------------------------------------------------------
<C> <S> <C> <C> <C>
Liabilities:
11/30/00 Euro (sell) 1.20795 $778,179 $(19,599)
</TABLE>
See notes to financial statements.
Paydenfunds
8
<PAGE>
Global Balanced Fund
Unaudited
The objective of the Global Balanced Fund is to realize long-term capital ap-
preciation. The Fund divides the investment of its assets between a common
stock portfolio and an investment grade debt securities portfolio. The invest-
ment process includes allocation decisions between debt securities and common
stocks, between U.S. issuers and foreign issuers, and between securities pay-
able in U.S. dollars and in foreign currencies. The Fund may invest up to 20%
of its assets in emerging markets countries.
Top Equity Holdings
<TABLE>
------------------------
<S> <C>
Vodafone Group PLC 2.1%
Ing Group NV 1.7%
BP Amoco PLC 1.4%
Nokia Oyj-A 1.2%
HSBC Holdings PLC 1.1%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 4.08%
Three Year, 9.26%
Since 12/9/96, 9.62%
Statistics
<TABLE>
----------------------------------
<S> <C>
Net Assets (in
millions) $10.0
Number of Issues 90
Average Market Cap
(Equity) $42.9 Billion
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Common Stocks (50%)
Basic Materials (3%)
1,000 Acerinox SA $ 27.8
1,300 BASF AG 51.1
810 Degussa-Huels AG 21.7
800 Heidelberger Zement
AG 38.1
710 Preussag 23.1
2,480 Rio Tinto PLC 40.2
1,230 Upm-Kymmene Oyj 34.8
960 Vinci 48.2
-------
Basic Materials 285.0
Capital Goods (1%)
430 ABB LTD 38.2
1,200 Man AG 31.6
450 Siemens AG 57.2
-------
Capital Goods 127.0
Communication Services (8%)
1,550 Alcatel 94.4
2,470 British Telecom PLC 29.0
2,000 Cable & Wireless PLC 28.3
7,160 Ericsson LM-B 95.1
1,600 Mediaset SpA 23.1
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
2,920 Nokia Oyj $ 120.0
1,450 Pearson PLC 38.9
1,800 Reuters Group PLC 35.1
1,240 Sonera Oyj 27.3
6,210 Telecom Italia Mobile
SpA 52.7
3,800 Telefonica SA (b) 72.4
610 VNU NV 28.7
49,074 Vodafone Group PLC 204.3
-------
Communication
Services 849.3
Consumer Cyclicals (2%)
600 Accor SA 24.3
10 CIE Financiere
Richmont AG 27.8
1,000 Deutsche Lufthansa -
Reg 19.7
1,600 Electrolux 20.1
1,820 KarstadtQuelle AG 59.8
-------
Consumer Cyclicals 151.7
Consumer Non-Cyclicals (5%)
400 Aventis SA 28.8
5,500 Diageo PLC 52.0
3,310 Glaxo Wellcome PLC 95.3
4,075 Granada Compass PLC
(b) 35.1
300 Groupe Danone 41.9
</TABLE>
Annual Report
9
<PAGE>
Global Balanced Fund Continued
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
----------------------------------------------
<C> <S> <C> <C>
33 Nestle $ 68.4
40 Novartis AG 60.7
5 Roche Holding AG 45.7
1,030 Sanofi-
Synthelabo SA 54.1
450 Vivendi 32.3
--------
Consumer Non-
Cyclicals 514.3
Diversified (14%)
9,120 Invensys PLC 21.8
2,400 S & P 500
Depository
Receipt 343.1
11,400 S&P MidCap
Depository
Receipt 1,083.0
--------
Diversified 1,447.9
Energy (3%)
16,326 BP Amoco PLC 138.5
1,600 Repsol YPF, SA 25.4
600 Royal Dutch
Petroleum 35.5
9,100 Shell
Transporting &
Trading Co. PLC 73.3
565 Total Fina SA 80.7
--------
Energy 353.4
Financials (10%)
1,580 ABN Amro Holding
NV 36.6
100 Allianz AG 33.9
3,500 Allied Irish
Banks PLC 35.6
1,340 Assicurazioni
Generali 44.0
380 Axa 50.2
34,500 Banca di Roma
SpA 36.3
4,560 Banco Santander
Central Hispano
SA 44.1
2,200 Barclays PLC 63.0
800 BNP Paribas SA 68.9
2,550 CGNU PLC 34.1
800 Commerzbank 22.6
11,170 Unicredito
Italiano SpA 56.8
1,300 Deutsche Bank AG 106.9
7,830 HSBC Holdings
PLC 111.6
2,384 Ing Group NV 163.5
90 Muenchener
Rueckver AG 28.4
2,800 Prudential PLC 37.7
70 Zurich Financial
Services AG 33.9
--------
Financials 1,008.1
Technology (2%)
170 Cap Gemini 27.1
490 Equant N.V. (b) 16.4
1,130 Logica PLC 33.5
1,940 Philips
Electronics NV 76.1
500 SAP AG 81.7
--------
Technology 234.8
Utilities (1%)
3,100 British Energy
PLC 8.1
720 RWE AG 28.9
160 Suez Lyonnaise
Des Eaux 24.4
--------
Utilities 61.4
--------
Total Common
Stocks
(Cost - $4,897.1) 5,032.9
Bonds and Notes (35%)
Corporate Bonds (Euro)(2%)
50,000 Citibank Credit
Card Master,
4.50%, 8/25/04 40.8
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-------------------------------------------------
<C> <S> <C>
50,000 GMAC Swift Trust 99-
1, 5.00%, 1/18/05 $ 41.1
50,000 MBNA American Europe,
4.38%. 8/25/04 40.6
50,000 Standard Chartered
Bank,
5.38%, 5/6/09 38.4
---------
Corporate Bonds 160.9
Foreign Bonds (Euro) (11%)
150,000 Canada Government
Bond,
5.50%, 6/1/10 96.3
150,000 Deutschland Republic,
5.38%, 1/4/10 128.8
100,000 Deutschland Republic,
5.63%, 1/4/28 84.5
50,000 French Treasury Bond,
3.50%, 7/12/04 40.1
600,000 German Government
Bond,
6.00%, 1/4/07 530.2
150,000 U.K.Gilt, 7.25%, 12/7/07 240.8
---------
Foreign Bonds 1,120.7
U.S. Treasury (23%)
800,000 U.S. Treasury Bond,
5.50%, 8/15/09 808.3
300,000 U.S. Treasury Bond,
5.50%, 8/15/28 282.3
350,000 U.S. Treasury Bond,
6.25%, 8/15/23 361.0
300,000 U.S. Treasury Note,
5.75%, 8/15/03 298.9
320,000 U.S. Treasury Note,
5.75%, 8/15/10 319.7
200,000 U.S. Treasury Note,
7.00%, 7/15/06 210.8
---------
U.S. Treasury 2,281.0
---------
Total Bonds and Notes (Cost - 3,526.6
$3,808.1)
Investment Companies (12%)
1,174,377 Bunker Hill Money
Market Fund * 1,174.4
---------
Total (Cost - $9,879.6) (a)
(97%) 9,769.9
Other Assets, net of Liabilities
(3%) 276.4
---------
Net Assets (100%) $10,046.3
=========
</TABLE>
<TABLE>
<S> <C>
*
Affiliated
Investment
</TABLE>
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market Fund.
(a) For federal income tax purposes, cost is $9,887,922, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 901,496
Unrealized depreciation (1,019,548)
-----------
Net unrealized
depreciation $ (118,052)
===========
</TABLE>
(b) Non-income producing security.
Paydenfunds
10
<PAGE>
Global Balanced Fund
Open Futures Contracts
<TABLE>
<CAPTION>
Number of Expiration Current Unrealized
Contracts Contract Type Date Value (Depreciation)
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2 Russell 2000 Index Future Dec-00 $500,500 $ (41,914)
1 SPI Future Dec-00 42,492 (2,546)
1 MIB 30 Index Future Dec-00 202,873 (3,439)
4 Topix Index Future Dec-00 505,174 (40,772)
3 S&P/TSE 60 Index Future Dec-00 223,728 (47,514)
----------
$(136,185)
==========
</TABLE>
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Delivery Contract Contract Unrealized
Date Currency Price Value Appreciation
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
11/30/00 British Pound (sell) 0.65870 $ 75,908 $ 3,279
11/30/00 Canadian Dollar (sell) 1.47600 27,100 884
11/30/00 Canadian Dollar (sell) 1.46370 75,152 3,058
11/30/00 Euro (sell) 1.04043 692,021 80,957
11/30/00 Euro (sell) 1.05823 944,975 96,274
---------- --------
$1,815,156 $184,452
========== ========
</TABLE>
See notes to financial statements.
Annual Report
11
<PAGE>
European Growth & Income Fund
Unaudited
The objective of the European Growth & Income Fund is to realize capital appre-
ciation and some current income. The Fund invests primarily in common stocks of
mid capitalization and large capitalization issuers organized or headquartered
in countries of the European Union with developed capital markets. Growth sec-
tors will be the main focus of the investment portfolio.
Top Equity Holdings
<TABLE>
-------------------------------------
<S> <C>
Shire Pharmaceuticals Group PLC 5.8%
Celltech Group PLC 5.4%
BB Biotech AG 5.3%
Alcatel 4.8%
Hermes International 4.2%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended Ocober 31, 2000
One Year, -32.13%
Three Year, -5.61%
Since 6/30/97, -4.51%
Statistics
<TABLE>
----------------------------------------
<S> <C>
Net Assets (in millions) $6.7
Number of Issues 30
Average Market Cap $21.3 billion
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-------------------------------------------------
<C> <S> <C>
Common Stocks (85%)
Basic Materials (2%)
3,000 Bouygues SA $ 152.6
Communication Services (21%)
2,000 Adva AG Optical
Networking (b) 146.6
5,000 Alcatel 304.7
11,000 Havas Advertising SA 177.0
100 Kudelski SA (b) 134.6
5,000 Nokia Oyj 205.5
8,000 ProSieben Sat.1 Media
AG 250.9
2,700 Television Francaise 147.1
--------
Communication
Services 1,366.4
Consumer Cyclicals (8%)
2,000 Hermes International 269.5
2,500 Medion AG 254.3
--------
Consumer Cyclicals 523.8
Consumer Non-Cyclicals (15%)
17,000 Celltech Group PLC (b) 340.1
4,300 Elan Corporation PLC (b) 227.4
2,000 Qiagen NV (b) 85.6
18,000 Shire Pharmaceuticals
Group PLC (b) 365.9
--------
Consumer Non-
Cyclicals 1,019.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
------------------------------------------------
<C> <S> <C>
Financials (19%)
7,000 ABN Amro Holding NV (b) $ 161.9
300 BB Biotech AG (b) 335.8
2,738 Ing Group NV (b) 187.8
8,000 Mediolanum SpA 117.1
2,000 MLP AG-Vorzug 269.5
12,300 San Paolo IMI (b) 199.1
--------
Financials 1,271.2
Technology (20%)
1,400 ARC International,
PLC (b) 6.9
20,000 ARM Holdings PLC (b) 197.5
5,000 Asm Lithography
Holding NV (b) 136.5
3,000 Bookham Technology
PLC (b) 98.8
1,300 Gretag Imaging Group 233.6
2,000 Parsytec AG (b) 87.3
4,820 Philips Electronics
NV 189.2
1,100 SAP AG-Vorzug 222.3
3,500 STMicroelectronics
N.V. 176.3
--------
Technology 1,348.4
--------
Total Common Stocks (Cost - 5,681.4
$6,269.2)
</TABLE>
Paydenfunds
12
<PAGE>
European Growth & Income Fund
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Investment Companies (10%)
673,815 Bunker Hill Money
Market Fund * $ 673.8
--------
Total (Cost - $6,943.0) (a) (95%) 6,355.2
Other Assets, net of
Liabilities (5%) 370.7
--------
Net Assets (100%) $6,725.9
========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market 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 $ 625,215
Unrealized depreciation (1,213,040)
-----------
Net unrealized
depreciation $ (587,825)
===========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
Annual Report
13
<PAGE>
European Aggressive Growth Fund
Unaudited
The objective of the European Aggressive Growth Fund is to realize long term
capital appreciation. The Fund primarily invests in the common stocks of 40-70
issuers organized or headquartered in European countries. Under normal market
conditions the Fund will have a weighted average market capitalization (total
market price of outstanding securities) of no greater than $1 billion. The Fund
may also invest up to 20% of its assets in European emerging markets countries.
Top Equity Holdings
<TABLE>
-----------------------
<S> <C>
Qiagen NV 6.5%
Aixtron AG 6.1%
Tecan Group AG 5.4%
Celltech Group AG 5.0%
MLP AG - Vorzug 4.9%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended Ocober 31, 2000
One Year, 48.83%
Since 6/17/99, 45.64%
Statistics
<TABLE>
---------------------------------------
<S> <C>
Net Assets (in millions) $63.0
Number of Issues 42
Average Market Cap $1.8 billion
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
Common Stocks (90%)
Communication Services (14%)
32,400 Adva AG Optical
Networking (b) $ 2,375.2
125,965 Gruppo Editoriale
L'Espresso SpA 1,376.1
30,000 Intershop
Communications AG (b) 1,296.7
315,000 Scoot.com PLC (b) 397.9
36,000 SR Teleperformance 1,181.9
70,000 Tandberg ASA (b) 1,852.5
---------
Communication
Services 8,480.3
Consumer Cyclicals (2%)
15,000 Medion AG 1,525.5
Consumer Non-Cyclicals (31%)
150,000 Celltech Group PLC (b) 3,000.9
400 Disetronic Holding AG 347.4
15,000 Evotec Biosystems AG
(b) 526.3
54,000 Kamps AG 846.6
54,000 Nestor Healthcare
Group PLC 390.0
27,000 Penauille
Polyservices 1,495.4
720 Phonak Holdings AG 2,062.7
90,000 Qiagen NV (b) 3,851.9
25,000 Rhone Klinikum AG 1,361.3
30,000 Sanochemia
Pharmazeutika AG (b) 1,067.8
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
137,500 Serco Group PLC $ 1,263.6
3,000 Tecan Group AG 3,221.0
---------
Consumer Non-
Cyclicals 19,434.9
Financials (9%)
25,000 Banca Popolare di
Lodi Srcl 260.2
21,600 MLP AG-Vorzug 2,910.6
5,400 New Venturetec LTD (b) 404.8
28,000 Tecis Holdings AG 2,021.8
---------
Financials 5,597.4
Technology (32%)
27,000 Aixtron AG 3,615.4
10,000 Aspocomp Group Oyj 296.6
220,000 Baltimore
Technologies PLC (b) 1,694.4
20,000 Bookham Technology
PLC (b) 658.8
15,750 Consodata SA (b) 654.1
27,000 FI Group PLC 198.0
27,960 GFI Informatique (b) 709.0
9,000 Gretag Imaging Group 1,617.2
45,000 Infogrames
Entertainment SA (b) 940.1
1,350 Kaba Holdings AG 1,821.1
27,000 Logica PLC 799.3
112,500 Pace Micro Technology
PLC 803.6
</TABLE>
Paydenfunds
14
<PAGE>
European Aggressive Growth Fund
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
180,000 Psion PLC $ 1,089.7
77,500 Silicon-On-Insulator
Technologies (b) 1,753.7
24,000 Teleplan
International NV (b) 844.1
12,000 Thiel Logistik AG (b) 1,800.1
22,500 Transiciel SA 1,101.2
---------
Technology 20,396.4
Transportation (2%)
16,000 D. Logistics AG (b) 1,125.5
---------
Total Common Stocks (Cost-
$55,842.4) 56,560.0
Investment Companies (5%)
3,093,578 Bunker Hill Money
Market Fund * $ 3,093.6
---------
Total (Cost - $58,936.0) (a)
(95%) 59,653.6
Other Assets, net of Liabilities
(5%) 3,364.3
---------
Net Assets (100%) $63,017.9
=========
</TABLE>
* Affiliated Investment
(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 $ 16,291,968
Unrealized depreciation (15,574,383)
------------
Net unrealized
appreciation $ 717,585
============
</TABLE>
(b) Non-income producing security.
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Delivery Contract Contract Unrealized
Date Currency Price Value (Depreciation)
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Liabilities:
11/1/00 Euro (buy) 1.16409 $ 7,615 $(102)
11/1/00 Swiss Franc (sell) 1.79760 7,615 --
------- ------
$15,230 $(102)
======= ======
</TABLE>
See notes to financial statements.
Annual Report
15
<PAGE>
World Target Twenty Fund
Unaudited
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.
Top Equity Holdings
<TABLE>
----------------------------
<S> <C>
EMC Corporation 6.7%
Veritas Software Corp. 5.9%
Qiagen NV 5.2%
MLP AG-Vorzug 4.5%
Sony Corp. 4.4%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the period ended October 31, 2000
Since 3/31/00, -16.22%
Statistics
<TABLE>
---------------------------------------
<S> <C>
Net Asset (in millions) $7.5
Number of Issues 34
Average Market Cap $49.4 billion
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
------------------------------------------------
<C> <S> <C>
Common Stocks (96%)
Basic Materials (3%)
4,000 Bouygues SA $ 203.4
Communication Services (28%)
5,000 Broadvision, Inc. (b) 148.8
4,000 Cisco Systems, Inc. (b) 215.5
20,500 Ericsson LM-B 272.2
2,000 Inktomi Corporation (b) 126.9
2,500 JDS Uniphase
Corporation (b) 203.4
2,500 Network Appliance,
Inc. (b) 297.5
7,500 Nokia Oyj 308.2
4,000 Nortel Networks
Corporation 182.0
4,000 Pearson PLC (b) 107.4
4,000 Television Francaise 218.0
--------
Communication
Services 2,079.9
Consumer Cyclicals (8%)
4,000 Macrovision
Corporation (b) 291.5
4,000 Sony Corporation (b) 319.5
--------
Consumer Cyclicals 611.0
Consumer Non-Cyclicals (11%)
10,000 Celltech Group PLC (b) 200.1
6,000 Kamps AG (b) 94.1
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------------------------------------------------
<C> <S> <C>
8,700 Qiagen NV (b) $ 372.3
2,500 Vivendi 179.5
-------
Consumer Non-
Cyclicals 846.0
Diversified (4%)
21,000 Hutchison Whampoa (b) 260.5
Financials (4%)
2,400 MLP AG-Vorzug 323.4
Technology (38%)
5,000 ARM Holdings PLC (b) 49.4
5,000 ARM Holdings PLC-ADRs (b) 150.0
800 Broadcom Corporation (b) 177.9
5,400 EMC Corporation/Mass (b) 480.9
1,200 Epcos AG (b) 91.0
3,000 Fujitsu Limited (b) 53.4
10,000 Lattice Semiconductor
Corporation (b) 291.9
8,000 Oracle Corporation (b) 264.0
6,000 Peregrine Systems,
Inc. (b) 144.0
1,200 SAP AG-Vorzug 242.6
3,000 Siebel Systems, Inc.
(b) 314.8
1,000 Tokyo Electron LTD (b) 78.2
2,000 Transiciel SA 97.9
3,000 Veritas Software
Corporation (b) 423.0
-------
Technology 2,859.0
</TABLE>
Paydenfunds
16
<PAGE>
World Target Twenty Fund
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Total Common Stocks (Cost -
$8,327.8) $7,183.2
Investment Companies (4%)
343,839 Bunker Hill Money
Market Fund * 343.8
--------
Total (Cost - $8,671.6) (a)
(100%) 7,527.0
Liabilities in excess of Other
Assets (0%) (20.9)
--------
Net Assets (100%) $7,506.1
========
</TABLE>
* Affiliated Investment
(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 $ 599,388
Unrealized depreciation (1,744,013)
-----------
Net unrealized depreciation $(1,144,625)
===========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
Annual Report
17
<PAGE>
Growth & Income Fund
Unaudited
The objective of the Growth & Income Fund is to provide growth of capital and
some current income. To achieve these objectives the Growth & Income Fund nor-
mally invests approximately half of its assets in the ten stocks in the Dow
Jones Industrial Average with the highest dividend yields. This strategy is
commonly referred to as investing in the "dogs of the Dow." The remaining as-
sets are invested in securities intended to replicate the total return of the
S&P 500 Index, normally Standard & Poor's Depository Receipts, and equity in-
dex mutual funds.
Top Equity Holdings
<TABLE>
------------------------------------------
<S> <C>
SBC Communications 8.1%
J.P. Morgan & Co. 7.5%
Phillip Morris 6.1%
Exxon Corp. 5.6%
Minnesota Mining & Manufacturing Co. 5.1%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 0.47%
Three Year, 10.44%
Since 11/1/96, 14.90%
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in millions) $104.2
Number of Issues 14
Gross Dividend Yield* 2.95%
Dividends Yield/S&P 500 1.16%
---------------------------------
</TABLE>
* Prior to fund expenses
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Common Stocks (95%)
Basic Materials (11%)
69,800 DuPont (E.I.) De
Nemours & Co. $ 3,167.2
75,200 International Paper
Co. 2,754.2
55,500 Minnesota Mining &
Manufacturing Co. 5,362.7
----------
Basic Materials 11,284.1
Capital Goods (3%)
92,000 Caterpillar
International 3,225.7
Communication Services (8%)
147,200 SBC Communications 8,491.6
Consumer Cyclicals (4%)
61,600 General Motors
Corporation 3,826.9
Consumer Non-Cyclicals (6%)
173,057 Phillip Morris Co.,
Inc. 6,338.2
Diversified (46%)
89,100 Nasdaq-100 Shares (b) 7,303.4
145,800 S & P 500 Depository
Receipt 20,842.6
211,100 S & P MidCap
Depository Receipt 20,054.5
----------
Diversified 48,200.5
Energy (6%)
64,900 Exxon Mobil
Corporation 5,788.3
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Financial (7%)
47,000 J.P. Morgan & Co. $ 7,778.5
Technology (4%)
97,100 Eastman Kodak 4,357.4
----------
Total Common Stocks (Cost -
$89,656.3) 99,291.2
Investment Companies (5%)
4,931,721 Bunker Hill Money
Market Fund* 4,931.7
----------
Total (Cost - $94,588.0) (a)
(100%) 104,222.9
Liabilities in excess of Other
Assets (0%) (13.6)
----------
Net Assets (100%) $104,209.3
==========
</TABLE>
* Affiliated Investment
(a) For federal income tax purposes, cost is $94,824,312, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $17,063,587
Unrealized depreciation (7,665,041)
-----------
Net unrealized appreciation $ 9,398,546
===========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
Paydenfunds
18
<PAGE>
Market Return Fund
Unaudited
The objective of the Market Return Fund is to realize a total return in excess
of the S&P 500 Index. To achieve this objective, the Market Return Fund divides
the investment of its assets between a portfolio of debt and other income-pro-
ducing securities and a portfolio of equity-based derivative instruments, such
as stock index futures contracts and equity swap contracts.
Portfolio Composition
<TABLE>
----------------------
<S> <C>
Mortgage Backed 36%
U.S. Gov't Agency 22%
Asset Backed 21%
Corporate Bonds 10%
Cost Equivalent 10%
Treasury 1%
----------------------
</TABLE>
Equity Exposure
<TABLE>
-----------------------------
<S> <C>
S&P Futures 100%
S&P Depository Receipts 0%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 3.15%
Three Year, 14.97%
Since 12/1/95, 18.27%
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $59.0
Number of Issues 43
Average Maturity 0.9 years
SEC Yield 6.37%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Asset-Backed Securities (20%)
1,000,000 Capital One Master
Trust, 7.30%, 4/17/06 $ 1,012.1
1,427,555 Case Equipment Loan
Trust 98-A, 5.83%,
2/15/05 1,413.5
1,247,866 Comm 2000-FL1,
6.92%, 12/16/11 (b) 1,247.9
1,953,062 Conseco Finance,
6.94%, 12/15/31 1,958.6
2,000,000 Distribution
Financial Services
Trust 99-1, 5.70%,
2/16/09 1,980.0
1,332,000 First USA Credit Card
Master Trust, 6.58%,
3/17/05 1,325.4
1,500,000 Ford 98 B,
7.50%, 11/15/03 (b) 1,502.2
500,000 Ford 98-A D,
7.50%, 5/16/03 (b) 500.6
1,000,000 Ford Credit Auto
Owner Trust,
6.75%, 1/15/04 991.8
---------
Asset-Backed
Securities 11,932.1
Corporate Bonds (10%)
500,000 CSC Holdings, Inc.,
8.13%, 7/15/09 486.9
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
1,200,000 Enron Corp.,
7.11%, 9/10/01 (b) $ 1,200.1
500,000 Gulf Canada Resources
Limited, 9.25%,
1/15/04 505.0
2,000,000 International Paper
Co.,
7.60%, 7/8/02 (b) 2,005.0
500,000 Northwest Airlines,
Inc., 8.52%, 4/7/04 484.4
1,000,000 TRW, Inc.,
6.50%, 6/1/02 982.5
---------
Corporate Bonds 5,663.9
Mortgage Backed Securities (35%)
1,000,000 Arc 2000-BC3 M1,
7.22%, 9/25/30 1,003.2
1,623,900 Citicorp Mortgage
Securities, Inc.,
5.75%, 3/25/09 1,604.9
1,930,712 DLJ Mortgage
Acceptance Corp.,
7.35%, 9/18/03 1,924.0
67,968 Drexel Burnham
Lambert CMO Trust,
7.38%, 5/1/16 68.0
1,186,270 FHLMC #846423,
8.18%, 5/1/25 1,206.6
</TABLE>
Annual Report
19
<PAGE>
Market Return Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
712,057 FHLMC,
7.02%, 7/15/20 $ 711.3
306,470 FHLMC,
6.38%, 7/15/07 305.4
1,254,648 FNMA #323682,
7.99%, 8/1/27 1,277.7
2,811,622 FNMA #543364 ARM,
8.09%, 5/1/21 2,868.4
722,973 FNMA 94-87,
7.00%, 3/25/09 726.2
1,179,785 FNMA ARM #490626,
5.74%, 11/1/28 1,181.7
465,113 FNMA G 94-7 F,
7.08%, 12/17/19 466.4
650,693 FNMA,
7.32%, 9/25/22 658.8
826,404 GMBS 90-5a,
7.19%, 12/25/20 826.4
2,499,484 JP Morgan Commercial
Mortgage Finance,
7.19%, 4/15/10 (b) 2,499.5
500,000 MBNA 2000-B C,
7.31%, 7/15/05 (b) 499.3
857,152 Prudential Home
Mortgage,
5.90%, 12/25/23 843.7
1,260,000 Residential Funding
Mortgage Securities,
2000-H14,
7.39%, 4/25/11 1,257.1
1,000,000 WAMU 2000-1 M2,
7.42%, 1/25/40 995.7
---------
Mortgage Backed
Securities 20,924.3
U.S. Government Agency (22%)
4,000,000 FHLMC,
6.39%, 12/12/00 3,970.9
1,000,000 FNMA,
6.38%, 10/15/02 998.7
6,500,000 FNMA,
6.63%, 4/15/02 6,508.1
1,500,000 FNMA,
6.75%, 8/15/02 1,507.5
---------
U.S. Government
Agency 12,985.2
U.S. Treasury (1%)
500,000 U.S. Treasury Note,
6.25%, 4/30/01 499.8
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Investment Companies (9%)
5,580,489 Bunker Hill Money
Market Fund * $ 5,580.5
---------
Total (Cost - $57,605.8) (a)
(98%) 57,585.8
Other Assets, net of Liabilities
(2%) 1,445.1
---------
Net Assets (100%) $59,030.9
=========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market 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 $ 114,942
Unrealized depreciation (134,886)
---------
Net unrealized depreciation $ (19,944)
=========
</TABLE>
(b) Security exempt from registration under Rule 144(a) of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
Open Futures Contracts
<TABLE>
<CAPTION>
Number of Expiration Current Unrealized
Contracts Contract Type Date Value (Depreciation)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
163 S&P 500 Futures Dec-00 $58,688,150 $(2,991,312)
</TABLE>
Written Option Activity
<TABLE>
<CAPTION>
Number of Contracts
Contracts Premium
--------- ---------
<S> <C> <C>
Options outstanding at beginning of period -- $ --
Options sold 1,250 31,215
Options canceled in closing transactions -- --
Options expired prior to exercise (1,250) (31,215)
------ --------
Options outstanding at end of period -- $ --
</TABLE>
See notes to financial statements.
Paydenfunds
20
<PAGE>
U.S. Growth Leaders Fund
Unaudited
The objective of the U.S. Growth Leaders Fund is to realize long-term capital
appreciation. The Fund invests primarily in the common stocks of very large
American growth companies that are financially strong, well-established, and
world leaders in their industries. The Fund 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.
Top Equity Holdings
<TABLE>
----------------------------------
<S> <C>
Rational Software Corp. 2.8%
Sun MicroSystems, Inc. 2.7%
EMC Corp. 2.6%
Powerwave Technologies, Inc. 2.6%
El Paso Energy Corp. 2.2%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 9.75%
Since 6/17/99, 11.08%
Statistics
<TABLE>
----------------------------------
<S> <C>
Net Assets (in
millions) $19.0
Number of Issues 60
Average Market Cap $27.9 billion
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Common Stocks (70%)
Capital Goods (8%)
3,300 Ballard Power
Systems, Inc. (b) $ 354.8
6,000 C&D Technologies,
Inc. 354.8
7,100 Capstone Turbine
Corp. (b) 394.0
5,400 General Electric Co. 296.0
2,000 Honeywell
International, Inc. 107.6
----------
Capital Goods 1,507.20
Communication Services (6%)
16,490 McLeodusa, Inc. (b) 317.4
10,500 Powerwave
Technologies, Inc.
(b) 505.3
1,870 Voicestream
Wireless Corp. (b) 245.9
----------
Communication
Services 1,068.60
Consumer Cyclicals (1%)
11,000 Hasbro, Inc. 118.3
Consumer Non-Cyclicals (1%)
7,000 Hispanic Broadcasting
Corp. (b) 218.8
Energy (3%)
5,000 Alberta Energy
Company LTD 184.1
6,000 EOG Resources, Inc. 236.2
4,000 Halliburton Co. 148.3
----------
Energy 568.60
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------------------------------------------------
<C> <S> <C>
Health Care (8%)
3,360 Celgene Corp. (b) $ 216.3
2,000 Forest Laboratories,
Inc. (b) 265.0
3,700 Invitrogen Corp. (b) 281.4
1,800 Lion Bioscience AG (b) 138.7
7,000 Sangamo BioSciences,
Inc. 182.4
1,500 Techne Corp. (b) 169.1
2,000 Vertex
Pharmaceuticals, Inc. (b) 186.2
---------
Health Care 1,439.1
Technology (33%)
1,000 Brocade
Communications
Systems (b) 227.4
2,940 Ciena Corp. (b) 309.1
3,800 Clarent Corp. (b) 118.0
4,100 Corning, Inc. 313.6
900 Elantec
Semiconductor, Inc. (b) 100.1
5,700 EMC Corp. (b) 507.7
8,520 Exodus
Communications, Inc. (b) 286.0
2,000 Flextronics
International LTD (b) 76.0
1,100 Foundry Networks,
Inc. (b) 73.1
3,000 Inktomi Corp. (b) 190.3
1,600 Jabil Circuit, Inc. (b) 91.3
1,000 Juniper Networks,
Inc. (b) 195.0
</TABLE>
Annual Report
21
<PAGE>
U.S. Growth Leaders Fund continued
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
7,000 LTX Corp. (b) $ 98.0
12,000 Lucent Technologies 279.7
2,100 Mercury Interactive
Corp. (b) 233.1
700 Newport Corp. 79.9
4,210 Nextel Partners, Inc.
(b) 103.1
3,500 Nortel Networks Corp. 159.2
9,020 Peregrine Systems,
Inc. (b) 216.5
2,200 PMC Sierra, Inc. (b) 372.9
3,500 Qualcomm Inc. (b) 227.9
9,000 Rational Software
Corp. (b) 537.2
500 SDL, Inc. (b) 129.6
4,000 Silicon Storage
Technology, Inc. (b) 91.0
1,600 StorageNetworks, Inc.
(b) 101.5
4,800 Sun Microsystems,
Inc. (b) 532.2
7,000 Taiwan Semiconductor
Manufacturing Company
(b) 158.8
1,520 Texas Instruments,
Inc. 74.6
4,900 TranSwitch Corp. (b) 283.0
3,900 VA Linux Systems,
Inc. 114.1
---------
Technology 6,279.9
Utilities (10%)
2,000 Calpine Corp. (b) 157.9
2,500 Duke Energy Corp. 216.1
3,000 Dynegy, Inc. 138.9
7,000 El Paso Energy Corp. 438.8
5,000 Enron Corp. 410.3
12,700 NRG Energy, Inc. (b) 330.2
6,000 The Williams
Companies, Inc. 250.9
---------
Utilities 1,943.1
---------
Total Common Stocks (Cost - 13,143.6
$12,557.9)
U.S. Government Agency (33%)
300,000 FHLMC, 6.40%,
11/10/00 299.5
6,000,000 FHLMC, 6.43%, 11/3/00 5,997.9
---------
U.S. Government 6,297.4
Agency
Investment Companies (0%)
62,863 Bunker Hill Money
Market Fund* 62.9
---------
Total (Cost - $18,918.1) (a) 19,503.9
(103%)
Liabilities in excess of Other (544.5)
Liabilities (-3%)
---------
Net Assets (100%) $18,959.4
=========
</TABLE>
-------
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market Fund.
(a) For federal income tax purposes, cost is $18,961,240, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,750,073
Unrealized depreciation (1,207,409)
-----------
Net unrealized appreciation $ 542,664
===========
</TABLE>
(b) Non-income producing security.
Open Futures Contracts
<TABLE>
<CAPTION>
Unrealized
Number of Expiration Current Appreciation
Contracts Contract Type Date Value (Depreciation)
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4 Mid Cap 400 Futures Dec-00 $1,042,500 $(57,828)
8 NASDAQ 100 Futures Dec-00 2,640,000 (7,107)
3 S&P 500 Futures Dec-00 1,080,150 65,754
--------
$ 819
========
</TABLE>
Written Option Activity
<TABLE>
<CAPTION>
Number of Contracts
Contracts Premium
---------------------------------------------------------------
<S> <C> <C>
Options outstanding at beginning of period 0 $ 0
Options sold 63 35,360
Options canceled in closing transactions (63) (35,360)
Options expired prior to exercise 0 0
--- --------
Options outstanding at end of period 0 $ 0
=== ========
</TABLE>
See notes to financial statements.
Paydenfunds
22
<PAGE>
Small Cap Leaders Fund
Unaudited
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.
Top Equity Holdings
<TABLE>
-----------------------------------
<S> <C>
Precision Castparts Corp. 4.3%
Pre-Paid Legal Services, Inc. 3.7%
Ocean Energy, Inc. 2.8%
Valero Energy Corp. 2.5%
C&D Technologies, Inc. 2.4%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended Ocober 31, 2000
Since 12/20/99, 16.48%
Statistics
<TABLE>
-----------------------------------------
<S> <C>
Net Assets (in millions) $20.9
Number of Issues 73
Average Market Cap $842.6 million
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------------------------------------------------
<C> <S> <C>
Common Stocks (89%)
Basic Materials (9%)
20,000 Arch Coal, Inc. $ 217.5
12,000 Consol Energy, Inc. 203.2
9,700 Gibraltar Steel Corp. 121.9
10,000 Great Lakes Chemical
Corp. 333.7
171,000 Kinross Gold Corp. (b) 69.5
40,000 Methanex Corp. (b) 160.0
26,000 RTI International
Metals, Inc. (b) 377.0
14,000 Stillwater Mining Co. (b) 406.0
---------
Basic Materials 1,888.8
Capital Goods (7%)
2,300 Benchmark
Electronics, Inc. (b) 92.6
8,000 C&D Technologies,
Inc. 473.0
23,000 Precision Castparts
Corp. 868.2
---------
Capital Goods 1,433.8
Communication Services (1%)
2,400 Tollgrade
Communications, Inc.
(b) 229.8
Consumer Cyclicals (9%)
7,000 Blyth, Inc. 182.0
6,870 Catalina Marketing
Corp. (b) 269.6
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
--------------------------------------------------
<C> <S> <C>
7,100 Factory 2-U Stores,
Inc. (b) $ 226.8
17,000 Pre-Paid Legal
Services, Inc. (b) 745.9
10,000 Skechers USA, Inc. (b) 151.8
40,000 The Topps Co., Inc. (b) 361.3
---------
Consumer Cyclicals 1,937.4
Consumer Non-Cyclicals (2%)
13,700 Salton, Inc. (b) 313.4
Energy (10%)
37,000 Friede Goldman
Halter, Inc. (b) 212.8
40,100 Ocean Energy, Inc. (b) 556.4
5,100 Patterson Energy,
Inc. (b) 143.4
4,000 PYR Energy Corp. (b) 24.0
20,000 Trico Marine
Services, Inc. (b) 332.5
15,000 Valero Energy Corp. 495.9
17,000 Varco International,
Inc. (b) 293.3
---------
Energy 2,058.3
Financial (6%)
9,150 Cousins Properties,
Inc. 237.9
31,440 Hamilton Bancorp,
Inc. (b) 471.6
16,000 IndyMac Bancorp, Inc. (b) 334.0
6,000 UCBH Holding, Inc. 218.3
---------
Financial 1,261.8
</TABLE>
Annual Report
23
<PAGE>
Small Cap Leaders Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
Health Care (13%)
6,600 3 Dimensional
Pharmaceutical, Inc.
(b) $ 157.6
8,200 ImmunoGen, Inc. (b) 281.9
5,500 Invitrogen Corp. (b) 418.3
4,200 Lion Bioscience ADR
(b) 323.7
13,000 NeoRx Corp. (b) 211.2
3,000 Noven
Pharmaceuticals, Inc.
(b) 133.7
3,300 NPS Pharmaceuticals,
Inc. (b) 141.5
1,500 OSI Pharmaceuticals,
Inc. (b) 108.0
10,000 Paradigm Genetics,
Inc. (b) 158.7
5,100 Pharmacopeia, Inc. (b) 93.1
9,000 ResMed, Inc. (b) 229.5
12,000 Sangamo BioSciences,
Inc. (b) 312.7
5,900 Vaxgen, Inc. (b) 161.9
---------
Health Care 2,731.8
Technology (20%)
3,300 Acacia Research Corp.
(b) 105.0
2,400 ACT Manufacturing,
Inc. (b) 78.9
9,200 Advanced Power
Technology, Inc. (b) 295.0
6,060 Advent Software, Inc.
(b) 362.5
1,800 American
Superconductor Corp.
(b) 85.9
7,000 Certicom Corp. (b) 231.0
5,200 Clarent Corp. (b) 161.5
7,000 Cognizant Technology
Solutions Corp. (b) 287.0
4,300 Documentum, Inc. (b) 365.5
2,100 FuelCell Energy, Inc.
(b) 160.8
20,000 General Cable Corp. 120.0
15,400 Identix, Inc. (b) 221.6
10,000 IXYS Corp. (b) 253.1
3,900 JNI Corp. (b) 347.3
3,700 L-3 Communications
Holdings, Inc. (b) 244.0
5,000 LTX Corp. (b) 70.0
4,800 Macrovision Corp. (b) 349.8
7,000 Mattson Technology,
Inc. (b) 82.2
9,300 Mechanical
Technology, Inc. (b) 69.8
4,200 Netegrity, Inc. (b) 327.6
---------
Technology 4,218.5
Transportation (6%)
25,000 Frontline LTD (b) 411.2
7,000 Heartland Express,
Inc. (b) 121.6
20,000 Knightsbridge Tankers
LTD 431.3
15,000 Swift Transportation
Co., Inc. (b) 213.8
---------
Transportation 1,177.9
Utilities (6%)
45,000 Azurix Corp. (b) 281.2
9,540 California Water
Service Group 257.0
7,000 Kinder Morgan Energy
Partners 332.5
10,000 Midcoast Energy
Resources, Inc. 202.5
10,000 Western Gas
Resources, Inc. 219.4
---------
Utilities 1,292.6
Total Common Stocks (Cost - 18,544.1
$16,824.0)
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Investment Companies (7%)
1,561,769 Bunker Hill Money
Market Fund * $ 1,561.8
---------
Total (Cost - $18,385.7) (a)
(96%) 20,105.9
Other Assets, net of Liabilities
(4%) 751.4
---------
Net Assets (100%) $20,857.3
=========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market 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 $ 3,406,492
Unrealized depreciation (1,686,371)
-----------
Net unrealized appreciation $ 1,720,121
===========
</TABLE>
(b) Non-income producing security.
See notes to financial statements.
Paydenfunds
24
<PAGE>
Bunker Hill Money Market Fund
Unaudited
The objective of the Bunker Hill Money Market Fund is to provide investors with
liquidity, a stable share price, and as high a level of current income as is
consistent with the preservation of principal and liquidity. The Fund invests
only in high-quality corporate, bank and government debt securities with matu-
rities of 397 days or less.
Portfolio Composition
<TABLE>
-------------------------
<S> <C>
Commerical Paper 39%
Repurchase Agreement 26%
Corporate Notes 23%
Asset Backed 6%
Treasury/Agency 4%
Cash Equivalent 2%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended Ocober 31, 2000
One Year, 6.06%
Since 12/17/97, 5.46%
Statistics
<TABLE>
----------------------------------
<S> <C>
Net Assets (in millions) $200.9
Number of Issues 32
Average Maturity 68 days
SEC Yield 6.47%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Asset Backed Securities (6%)
4,991,364 Associates
Manufactured Housing,
5.61%, 10/15/01 (a) $ 4,997.8
4,000,000 Merrill Lynch
Mortgage Investors,
Inc. 2000 - WM2,
6.65%, 11/27/01 4,000.0
3,582,161 MMCA Automobile
Trust,
6.73%, 5/15/01 3,582.1
----------
Asset Backed
Securities 12,579.9
Commercial Paper (42%)
8,000,000 American Express CP,
6.48%, 11/21/00 8,000.0
8,000,000 American General
Finance CP,
6.44%, 11/08/00 8,000.0
8,000,000 Bear Stearns CP,
6.48%, 12/20/00 7,929.4
8,000,000 Enterprise Funding
CP,
6.47%, 1/17/01 7,888.3
8,000,000 Ford Motor Credit CP,
6.48%, 11/16/00 8,000.0
8,000,000 GE Capital Corp. CP,
6.47%, 12/11/00 8,000.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
5,325,000 GMAC CP,
7.13%, 5/1/01 $ 5,331.1
2,000,000 Goldman Sachs CP,
6.26%, 11/28/00 1,999.7
8,000,000 Household Finance CP,
6.46%, 12/14/00 8,000.0
9,000,000 International Lease
Finance CP,
6.45%, 12/18/00 8,924.2
3,000,000 Merrill Lynch CP,
5.39%, 2/8/01 2,990.0
9,000,000 Sara Lee CP,
6.46%, 11/6/00 8,991.9
----------
Commercial Paper 84,054.6
Corporate Notes (25%)
3,000,000 Aegon,
5.55%, 2/15/01 2,990.2
5,000,000 Associates Corp.
Note,
5.88%, 5/16/01 4,962.3
2,000,000 Associates Corp.
Note,
6.45%, 10/15/01 1,995.7
5,000,000 Bank of America Corp.
Note,
6.75%, 3/23/01 5,000.0
</TABLE>
Annual Report
25
<PAGE>
Bunker Hill Money Market Fund continued
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
5,000,000 Bank One Wisconsin
Corp. Note, 6.35%,
3/19/01 $ 4,985.7
3,000,000 Caterpillar Finance
Service,
6.95%, 11/1/00 3,000.0
500,000 Honeywell
International,
6.60%, 4/15/01 499.3
1,000,000 Honeywell
International,
7.45%, 4/11/01 1,002.5
2,500,000 John Deere Corp.
Note,
5.79%, 1/18/01 2,495.8
4,000,000 John Deere Corp.
Note,
6.69%, 10/10/01 3,998.9
6,000,000 Key Bank NA,
5.88%, 4/23/01 5,968.5
5,000,000 National City Bank,
5.13%, 2/5/01 4,975.9
3,000,000 Paccar Financial
Corp.,
5.75%, 2/15/01 2,989.9
5,000,000 Walt Disney Corp.
Note,
5.14%, 2/8/01 4,980.3
----------
Corporate Notes 49,845.0
U.S. Government Agency (4%)
9,000,000 FNMA Discount Note,
6.41%, 12/14/00 8,931.1
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
Investment Companies (2%)
3,750,152 Dreyfus Treasury
Cash Management Fund $ 3,750.2
-----------
Total (Cost - $159,160.8) (79%) 159,160.8
Repurchase Agreement (27%)
54,000,000 Lehman Tri-Party
dated 10/31/00,
6.53% and Maturity
of 11/1/00 (b) 54,000.0
Liabilities in excess of Other
Assets (-6%) (12,230.8)
-----------
Net Assets (100%) $ 200,930.0
===========
</TABLE>
(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.
(b) The repurchase agreement is collateralized by the following securities:
<TABLE>
<CAPTION>
Principal Security Description Value (000)
----------------------------------------------
<C> <S> <C>
575,556 GNMA 0%, 12/16/27 $ 367.6
59,576,471 Freddie Mac 0%,
9/15/25 35,311.5
7,332,000 Freddie Mac 0%,
1/15/18 1,902.1
52,790,125 FNMA 0%, 1/25/22 16,924.0
680,000 FHLMC 0%, 4/25/24 576.1
---------
$55,081.3
</TABLE>
See notes to financial statements.
Paydenfunds
26
<PAGE>
Limited Maturity Fund
Unaudited
The objective of the Limited Maturity Fund is to realize a total return that,
over time, is greater than money market funds and is consistent with the pres-
ervation of capital. The Fund invests in a wide variety of investment grade
debt securities payable primarily in U.S. dollars. The Fund's maximum average
portfolio maturity (on a dollar-weighted basis) is one and one-half year.
Portfolio Composition
<TABLE>
-------------------------------
<S> <C>
Asset - Backed 33%
Corporate 28%
Mortgage Backed Securities 25%
Commercial Paper 9%
Treasury/Agency 3%
Cash Equivalent 2%
-------------------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 71%
AA 1%
A 10%
BBB 18%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 6.24%
Three Year, 5.61%
Five Year, 5.53%
Since 5/2/94, 5.53%
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $178.8
Number of Issues 53
Average Maturity 0.9 years
SEC Yield 6.51%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Asset Backed Securities (33%)
2,618,938 Americredit
Automobile
Receivables Trust,
6.54%, 10/14/02 $ 2,616.6
2,000,000 Associates Credit
2000-1 B,
6.96%, 5/17/06 1,998.1
1,150,000 BA Master Credit Card
Trust,
7.49%, 8/16/04 (b) 1,153.2
5,000,011 Case Equipment Loan
Trust 98-A, 5.83%,
2/15/05 4,950.8
14,643 Chase Manhattan Auto,
5.75%, 10/15/01 14.6
6,000,000 Citi Group, Inc.,
6.00%, 5/8/01 5,968.8
3,050,000 Citibank Credit Card
Master Trust, Inc.,
5.85%, 4/10/03 3,035.6
2,000,000 Deutsche Floorplan
Receivables Master
Trust 2000-1,
7.06%, 4/15/05 2,000.8
3,600,000 Distribution
Financial Services
Trust 99-1,
5.70%, 2/16/09 3,564.0
4,000,000 First USA Credit Card
Master Trust, 6.42%,
3/17/05 3,982.8
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
3,000,000 First USA Credit Card
Master Trust, 6.58%,
3/17/05 $ 2,985.2
2,000,000 Ford Credit Auto
Owner Trust,
5.90%, 6/15/02 1,991.2
3,500,000 Ford Credit Auto
Owner Trust,
6.75%, 1/15/04 3,471.3
1,824,088 GMAC 99-1,
5.58%, 6/15/02 1,816.1
6,000,000 Honda 1999-A Auto
Receivables, 6.45%,
9/16/02 5,984.5
3,832,209 Nissan Auto
Receivables Owner
Trust, 6.73%, 5/15/02 3,831.8
4,726,845 WFS Financial Owner
Trust,
5.55%, 2/20/03 4,700.4
5,000,000 World Omni Auto
Receivables Trust,
7.13%, 2/15/04 5,034.0
----------
Asset - Backed
Securities 59,099.8
Commercial Paper (8%)
8,000,000 GE Capital,
6.47%, 11/7/00 8,000.0
7,000,000 Household Finance
Corp.,
6.45%, 11/15/00 7,000.0
----------
Commercial Paper 15,000.0
</TABLE>
Annual Report
27
<PAGE>
Limited Maturity Fund continued
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Corporate Bonds (28%)
5,000,000 Caterpillar Finance
Service,
7.09%, 8/29/02 $ 5,018.7
2,500,000 DaimlerChrysler Na
Holding Co., 6.67%,
2/15/02 2,487.5
2,615,000 Enron Corp.,
6.45%, 11/15/01 2,595.4
1,000,000 IBM Credit Corp.,
5.05%, 1/22/01 996.3
1,250,000 Inter-American
Development Bank,
5.13%, 2/22/01 1,243.8
1,300,000 International Lease
Finance Corp.,
5.88%, 1/15/01 1,296.7
3,600,000 International Paper
Co.,
7.60%, 7/8/02 3,609.0
2,600,000 Keycorp,
6.75%, 5/29/01 2,600.0
3,000,000 Korea Development
Bank,
7.13%, 9/17/01 2,985.5
5,000,000 Qwest Capital
Funding,
6.88%, 8/15/01 4,997.8
3,000,000 Sprint Capital
Corp.,
7.63, 6/10/02 3,022.5
5,000,000 TCI Communication,
6.38%, 3/12/01 5,030.0
2,000,000 Time Warner, Inc.,
6.10%, 12/30/01 (b) 1,970.0
3,000,000 TRW, Inc.,
6.50%, 6/1/02 2,947.5
3,307,596 Union Acceptance
Corp.,
6.72%, 12/9/02 3,305.9
5,000,000 WorldCom, Inc.,
6.13%, 8/15/01 4,968.7
----------
Corporate Bonds 49,075.3
Mortgage Backed Securities (25%)
2,000,000 Arc 2000-BC3 M1,
7.22%, 9/25/30 2,006.3
4,389,185 Countrywide Home
Loans, Inc.,
8.01%, 4/1/28 4,452.9
2,493,836 DLJ Mortgage
Acceptance Corp.,
7.35%, 9/18/03 2,485.2
532,273 FHLMC,
5.93%, 4/15/08 531.9
16,000,000 FHLMC,
6.63%, 8/15/02 16,040.0
2,706,109 FNMA #323682,
7.99%, 8/1/27 2,755.9
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
2,811,622 FNMA #543364 ARM,
8.09%, 5/1/21 $ 2,868.4
1,441,379 FNMA 97-17f,
7.18%, 11/18/25 1,441.5
4,100,000 FNMA,
6.38%, 10/15/02 4,094.9
3,242,048 FNMA,
6.50%, 4/18/22 3,215.8
586,224 FNMA,
9.50%, 9/1/24 608.4
2,083,115 GNMA,
7.07%, 11/16/29 2,089.6
1,486,226 GNMA,
7.32%, 6/16/26 1,492.8
971,169 Headlands Mortgage,
7.75%, 3/25/12 973.1
----------
Mortgage Backed
Securities 45,056.7
U.S. Government Agency (3%)
4,000,000 FHLMC,
6.40%, 11/14/00 3,990.8
2,000,000 FHLMC,
6.43%, 11/3/00 1,999.3
----------
U.S. Government
Agency 5,990.1
Investment Companies (2%)
3,147,221 Bunker Hill Money
Market Fund * 3,147.2
----------
Total (Cost - $177,116.3) (a)
(99%) 177,369.1
Other Assets, net of Liabilities
(1%) 1,454.8
----------
Net Assets (100%) $178,823.9
==========
</TABLE>
* Affiliated Investment
(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 $ 398,854
Unrealized depreciation (146,086)
---------
Net unrealized appreciation $ 252,767
=========
</TABLE>
(b) Security exempt from registration under Rule 144(a) of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See notes to financial statements.
Paydenfunds
28
<PAGE>
Short Bond Fund
Unaudited
The objective of the Short Bond Fund is to realize a high level of total return
consistent with preservation of capital. In order to achieve these objectives
the Short Bond Fund invests in a wide variety of investment grade debt securi-
ties payable primarily in U.S. dollars. The Fund's maximum average portfolio
maturity (on a dollar-weighted basis) is three years.
Portfolio Composition
<TABLE>
-------------------------------
<S> <C>
Treasury/Agency 37%
Asset Backed Securities 27%
Corporate 23%
Mortgage Backed Securities 10%
Cash Equivalent 3%
-------------------------------
</TABLE>
Credit Quality
<TABLE>
--------
<S> <C>
AAA 70%
AA 5%
A 11%
BBB 6%
BB 8%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 6.61%
Three Year, 5.42%
Five Year, 5.32%
Since 1/1/94, 5.30%
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $67.0
Number of Issues 37
Average Maturity 1.7 years
SEC Yield 6.32%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Asset Backed Securities (26%)
994,514 Bank of America
Commercial Mortgage,
Inc.,
6.80%, 7/15/04 $ 992.9
1,000,000 Capital One Master
Trust, 7.30%, 4/17/06 1,012.1
1,597,274 CS First Boston
Mortgage Securities
97-C2,
6.40%, 2/17/04 1,585.3
2,000,000 First Bank Corporate
Card Master Trust,
6.40%, 2/15/03 1,988.8
1,500,000 First USA Credit Card
Master Trust, 6.42%,
3/17/05 1,493.6
1,500,000 Ford 98 B,
7.50%, 11/15/03 (b) 1,502.3
750,000 Ford Credit Auto
Owner Trust,
6.75%, 1/15/04 743.9
1,200,000 MBNA Master Credit
Card Trust, 5.65%,
2/15/06 1,161.8
800,000 MBNA Master Credit
Card Trust, 6.60%,
11/15/04 798.8
361,358 Premier Auto Trust
98-2 A3,
5.77%, 1/6/02 361.1
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------------
<C> <S> <C>
2,675,940 SLM Student Loan
Trust, 6.84%, 7/25/08 $ 2,676.9
1,500,000 Western Financial
Owner Trust, 7.07%,
2/20/05 1,511.7
2,000,000 World Omni Auto
Receivables Trust,
7.13%, 2/15/04 2,013.6
---------
Asset Backed
Securities 17,842.8
Corporate Bonds (23%)
2,000,000 DaimlerChrysler NA,
7.13%, 3/1/02 1,997.5
1,000,000 Ford Motor Credit
Global,
6.50%, 2/28/02 995.0
1,150,000 GMAC, 8.50%, 1/1/03 1,181.6
1,000,000 Honeywell, Inc.,
6.75%, 3/15/02 997.5
1,000,000 International Paper
Co., 8.00%, 7/8/2003 1,016.2
1,000,000 Korea Development
Bank, 7.13%, 9/17/01 993.8
1,000,000 MBNA Corp., 6.15%, 10/1/03 963.8
1,000,000 Salomon, Inc.,
6.88%, 12/15/03 993.8
</TABLE>
Annual Report
29
<PAGE>
Short Bond Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
-----------------------------------------------
<C> <S> <C>
1,500,000 Sun Microsystems
Inc,
7.00%, 8/15/02 $ 1,498.1
1,000,000 Time Warner, Inc.,
6.10%, 12/30/01 (b) 985.0
1,500,000 Wal-Mart Stores,
6.75%, 5/15/02 1,501.9
2,000,000 Wells Fargo Company,
8.75%, 5/1/02 2,055.0
---------
Corporate Bonds 15,179.2
Mortgage Backed Securities (10%)
608,192 FHLMC, 7.08%, 3/15/18 609.0
1,680,581 FNMA ARM 514721,
6.08%, 9/1/29 1,663.8
596,332 Headlands Mortgage,
7.75%, 3/25/12 597.5
2,000,000 Medallion Trust,
6.88%, 12/18/31 2,000.0
42,486 Residential Funding
Corp.,
7.13%, 10/25/23 42.5
1,500,000 Residential Funding
Mortgage Securities,
7.49%, 10/25/13 1,504.1
---------
Mortgage Backed
Securities 6,416.9
U.S. Treasury (37%)
1,500,000 U.S. Treasury Note,
5.75%, 8/15/03 1,494.4
8,700,000 U.S. Treasury Note,
6.13%, 12/31/01 8,687.4
3,950,000 U.S. Treasury Note,
6.25%, 6/30/02 3,962.5
10,200,000 U.S. Treasury Note,
6.50%, 3/31/02 10,247.8
500,000 U.S. Treasury Note,
7.25%, 8/15/04 523.2
---------
U.S. Treasury 24,915.3
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Investment Companies (3%)
2,079,933 Bunker Hill Money
Market Fund * $ 2,079.9
---------
Total (Cost - $66,348.8) (a)
(99%) 66,434.1
Other Assets, net of Liabilities
(1%) 522.7
---------
Net Assets (100%) $66,956.8
=========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market 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 $234,471
Unrealized depreciation (149,191)
--------
Net unrealized appreciation $ 85,280
========
</TABLE>
(b) Security exempt from registration under Rule 144(a) of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
Open Futures Contracts
<TABLE>
<CAPTION>
Number of Expiration Current Unrealized
Contracts Contract Type Date Value Appreciation
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
84 U.S. Treasury Dec-00 $16,810,500 $53,486
2 Year Note
</TABLE>
See notes to financial statements.
Paydenfunds
30
<PAGE>
U.S. Government Fund
Unaudited
The objective of the U.S. Government Fund is to realize a high level of total
return consistent with preservation of capital. The fund invests primarily in
U.S. Government obligations, i.e., U.S. Treasury bonds, notes and bills and
other bonds and obligations issued or guaranteed by the U.S. Government, U.S.
Government-sponsored enterprises, or federal agencies.
Portfolio Composition
<TABLE>
--------------------
<S> <C>
Mortgage Backed 42%
Treasury 39%
Agency 15%
Cash Equivalent 4%
--------------------
</TABLE>
Credit Quality
<TABLE>
---------
<S> <C>
AAA 100%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 6.33%
Three Year, 5.51%
Five Year, 5.57%
Since 1/1/95, 6.75%
Statistics
<TABLE>
---------------------------------
<S> <C>
Net Assets (in
millions) $68.4
Number of Issues 18
Average Maturity 2.7 years
SEC Yield 5.82%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Mortgage Backed Securities (41%)
4,866,359 FHLMC,
5.75%, 5/15/19 $ 4,801.4
3,522,070 FHLMC,
6.00%, 10/15/18 3,479.1
2,367,978 FNMA #380459,
6.27%, 7/1/05 2,327.7
1,712,162 FNMA #421914,
5.90%, 3/1/28 1,680.7
1,331,071 FNMA 97-35 Pc,
6.75%, 5/18/18 1,323.7
1,495,848 FNMA ARM 323790,
6.37%, 5/1/29 1,469.2
4,010,000 FNMA,
6.00%, 5/25/08 3,936.3
2,693,951 FNMA,
6.50%, 4/18/22 2,672.1
4,000,000 FNMA,
6.50%, 8/15/04 3,995.6
2,500,000 FNMA,
7.13%, 2/15/05 2,553.4
---------
Mortgage Backed
Securities 28,239.2
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
U.S. Government Agency (15%)
2,300,000 FHLB,
6.75%, 2/15/02 $ 2,306.5
5,000,000 FHLMC,
5.50%, 5/15/02 4,929.1
3,000,000 FNMA,
5.25%, 1/15/03 2,927.3
---------
U.S. Government
Agency 10,162.9
U.S. Treasury Notes (39%)
11,300,000 U.S. Treasury Note,
5.75%, 8/15/03 11,257.6
4,500,000 U.S. Treasury Note,
6.00%, 8/15/04 4,518.3
1,700,000 U.S. Treasury Note,
6.75%, 5/15/05 1,762.4
8,300,000 U.S. Treasury Note,
7.50%, 2/15/05 8,807.4
---------
U.S. Treasury Notes 26,345.7
</TABLE>
Annual Report
31
<PAGE>
U.S. Government Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Investment Companies (4%)
2,939,487 Bunker Hill Money
Market Fund * $ 2,939.5
---------
Total (Cost - $67,280.1) (a) (99%) 67,687.3
Other Assets, net of
Liabilities (1%) 746.4
---------
Net Assets (100%) $68,433.7
=========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market Fund.
(a) This represents cost for federal income tax purpose and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 619,542
Unrealized depreciation (212,353)
---------
Net unrealized appreciation $ 407,189
=========
</TABLE>
See notes to financial statements.
Paydenfunds
32
<PAGE>
GNMA Fund
Unaudited
The objective of the GNMA Fund is to realize a high level of total return con-
sistent with preservation of capital. The Fund invests primarily in Government
National Mortgage Association mortgage backed securities, which are debt secu-
rities representing part ownership in a pool of mortgage loans backed by the
U.S. Government.
Portfolio Composition
<TABLE>
---------------------
<S> <C>
GNMA 89%
Other Agency 10%
Cash Equivalents 1%
---------------------
</TABLE>
Coupon Mix
<TABLE>
----------
<S> <C>
6.00% 3%
6.50% 25%
7.00% 43%
7.50% 16%
8.00% 13%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 7.79%
Since 8/27/99, 8.18%
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $113.4
Number of Issues 29
Average Maturity 8.6 years
SEC Yield 7.16%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
------------------------------------------
<C> <S> <C>
Mortgage Backed Securities
(113%)
4,000,000 FHLMC #2236,
7.02%, 10/15/24 $ 3,997.0
5,008,535 FHLMC, 1669 3A,
7.03%, 7/15/20 5,003.4
127,455 FNMA 1992-16 KC,
7.00%, 11/25/00 126.9
3,000,000 FNMA TBA,
7.00%, 4/1/28 (b) 2,940.0
3,644,220 GNMA #2631,
7.00%, 8/20/28 3,573.6
4,137,458 GNMA #2713,
6.00%, 2/20/29 3,880.1
5,178,325 GNMA #2729,
6.50%, 3/20/29 4,976.0
1,988,018 GNMA #2795,
6.50%, 8/20/29 1,910.3
7,705,766 GNMA #2809,
7.00%, 9/20/29 7,556.4
7,667,829 GNMA #2824,
7.00%, 10/20/29 7,519.2
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Security
or Shares Description Value (000)
---------------------------------------------
<C> <S> <C>
9,836,911 GNMA #2895,
7.00%, 3/20/30 $ 9,646.3
3,156,958 GNMA #473017,
6.50%, 7/15/29 3,048.4
5,197,373 GNMA #473045,
6.50%, 7/15/29 5,018.7
7,298,265 GNMA #507768,
6.50%, 4/15/29 7,047.4
2,670,581 GNMA #780759,
6.50%, 4/15/13 2,630.5
2,615,176 GNMA #780852,
6.50%, 9/15/13 2,575.9
4,390,073 GNMA 1999-4,
7.17%, 12/20/29 4,409.3
2,000,000 GNMA TBA,
6.50%, 6/1/29 (b) 1,930.6
4,000,000 GNMA TBA,
7.50%, 12/15/30 (b) 4,016.8
5,500,000 GNMA TBA,
7.50%, 8/15/27 (b) 5,518.9
16,000,000 GNMA TBA,
8.00%, 11/15/28 (b) 16,254.9
</TABLE>
Annual Report
33
<PAGE>
GNMA Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
4,166,230 GNMA,
7.07%, 11/16/29 $ 4,179.1
4,242,169 GNMA,
7.17%, 11/16/29 4,265.5
2,229,339 GNMA,
7.32%, 6/16/26 2,239.1
11,422,602 GNMA,
7.50%, 11/15/29 11,465.4
2,334,928 GNMA,
6.50%, 6/15/29 2,254.7
----------
Mortgage Backed
Securities 127,984.4
U.S Government Agency (13%)
6,000,000 FHLMC Discount Note 5,997.9
9,000,000 FHLMC Discount Note 8,956.8
----------
U.S. Government
Agency 14,954.7
Investment Companies (1%)
1,000,726 Bunker Hill Money
Market Fund * 1,000.7
----------
Total (Cost - $142,798.5) (a)
(127%) 143,939.8
Liabilities in excess of Other
Assets (-27%) (30,537.8)
----------
Net Assets (100%) $113,402.0
==========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market Fund and securities purchased on a
delayed delivery basis.
(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 $1,176,258
Unrealized depreciation (34,921)
----------
Net unrealized appreciation $1,141,337
==========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
See notes to financial statements.
Paydenfunds
34
<PAGE>
Investment Quality Bond Fund
Unaudited
The objective of the Investment Quality Bond Fund is to realize a high level of
total return consistent with preservation of capital. In order to achieve these
objectives the Investment Quality Bond Fund invests in a wide variety of in-
vestment grade debt securities payable primarily in U.S. dollars.
Portfolio Composition
<TABLE>
--------------------
<S> <C>
Treasury/Agency 31%
Mortgage Backed 30%
Corporate 25%
Asset Backed 13%
Cash Equivalent 1%
--------------------
</TABLE>
Credit Quality
<TABLE>
--------------------
<S> <C>
AAA 65%
AA 3%
A 12%
BBB 20%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended Ocober 31, 2000
One Year, 4.38%
Five Year, 5.27%
Since 1/1/94, 5.29%
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $77.2
Number of Issues 43
Average Maturity 9.6 years
SEC Yield 6.47%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Asset Backed Securities (16%)
3,000,000 Associates Credit
Card Trust,
6.96%, 9/18/06 $ 3,001.0
1,500,000 BA Master Credit Card
Trust, 7.49%, 8/16/04
(c) 1,504.2
2,300,000 Medallion Trust,
6.88%, 12/18/31 2,300.0
299,112 Navistar Financial
Corp., 6.75%, 3/15/02 299.0
1,485,748 Structured Asset
Notes Transactions,
7.16%, 10/28/03 (c) 1,447.1
3,811,972 WFS Financial Owner
Trust, 5.55%, 2/20/03 3,790.6
----------
Asset Backed
Securities 12,341.9
Corporate Bonds (31%)
1,000,000 Alcoa, Inc.,
7.38%, 8/1/10 1,010.0
1,000,000 AT&T Corp.,
6.50%, 3/15/29 785.0
1,000,000 BP Amoco Place,
5.90%, 4/15/09 928.7
1,500,000 Clear Channel
Communications,
7.25%, 9/15/03 1,486.9
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
1,500,000 Duke Capital Corp.,
7.50%, 10/1/09 $ 1,507.5
1,500,000 Edison Mission
Energy,
7.73%, 6/15/09 1,434.4
1,000,000 Ford Motor Company,
6.38%, 2/1/29 803.8
1,000,000 Goldman Sachs Group
Inc., 7.63%, 8/17/05 1,012.5
1,750,000 International Paper
Co.,
8.00%, 7/8/03 (c) 1,778.4
1,000,000 Koninklijke KPN NV,
8.00%, 10/1/10 981.2
1,500,000 News America
Holdings,
8.50%, 2/15/05 1,563.7
1,500,000 Osprey Trust,
7.80%, 1/15/03 (c) 1,500.0
1,200,000 Phillips Pete,
8.50%, 5/25/05 1,266.0
1,500,000 Salomon, Inc.,
7.08%, 7/23/01 1,501.7
1,500,000 Sun Microsystems,
Inc., 7.50%, 8/15/06 1,522.5
1,200,000 TCI Communication,
6.38%, 3/12/01 1,207.2
</TABLE>
Annual Report
35
<PAGE>
Investment Quality Bond Fund continued
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
500,000 Wachovia Corp.,
7.45%, 7/15/05 $ 505.6
2,000,000 Wal-Mart Stores,
7.55%, 2/15/30 2,075.0
1,000,000 WorldCom Inc,
8.25%, 5/15/10 1,036.3
----------
Corporate Bonds 23,906.4
Mortgage Backed Securities (37%)
3,595,092 FNMA #323541,
6.00%, 2/1/29 3,371.5
1,600,000 FNMA Note,
7.00%, 7/15/05 1,629.0
1,100,000 FNMA TBA,
6.00%, 9/1/15 (b) 1,058.7
3,850,000 FNMA TBA,
6.50%, 4/1/28 (b) 3,699.6
8,000,000 FNMA TBA,
7.00%, 4/1/28 (b) 7,840.0
1,100,000 FNMA TBA,
7.00%, 9/1/15 (b) 1,093.5
2,000,000 GNMA #2781,
6.50%, 7/20/29 1,921.9
2,270,277 GNMA #448928,
8.00%, 6/15/28 2,307.2
1,697,642 GNMA #780743,
8.00%, 12/15/26 1,726.3
3,650,000 GNMA TBA,
7.50%, 8/15/27 (b) 3,662.5
----------
Mortgage Backed
Securities 28,310.2
U.S. Treasury (39%)
4,570,000 U.S. Treasury Bond,
6.25%, 8/15/23 4,714.1
980,000 U.S. Treasury Note,
5.63%, 05/15/08 966.1
4,580,000 U.S. Treasury Note,
6.13%, 11/15/27 4,682.2
6,250,000 U.S. Treasury Note,
6.63%, 5/15/07 6,506.1
3,800,000 U.S. Treasury Note,
6.75%, 5/15/05 3,939.5
6,700,000 U.S. Treasury Note,
7.50%, 2/15/05 7,109.6
2,000,000 U.S. Treasury Note,
5.50%,2/28/03 1,981.2
----------
U.S. Treasury 29,898.8
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Investment Companies (1%)
754,751 Bunker Hill Money
Market Fund * $ 754.8
----------
Total (Cost--$95,174.4) (a)
(123%) 95,212.1
Liabilities in excess of Other
Assets (-23%) (17,968.9)
----------
Net Assets (100%) $ 77,243.2
==========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market Fund and securities purchased on a
delayed delivery basis.
(a) For federal income tax purposes, cost is $95,365,797 and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 528,789
Unrealized depreciation (683,195)
---------
Net unrealized depreciation $(154,406)
=========
</TABLE>
(b) Security was purchased on a delayed delivery basis.
(c) Security exempt from registration under Rule 144(a) of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
See notes to financial statements.
Paydenfunds
36
<PAGE>
Total Return Fund
Unaudited
The objective of the Total Return Fund is to realize a high level of total re-
turn consistent with preservation of capital. The Fund invests in a wide vari-
ety of debt instruments and income-producing securities, payable both in U.S.
dollars and foreign currencies. The Total Return Fund generally invests in in-
vestment grade debt securities, but may invest up to 25% of its assets in below
investment grade securities.
Portfolio Composition
<TABLE>
---------------------
<S> <C>
Treasury/Agency 29%
Corporate 25%
Mortgage Backed 23%
Foreign 10%
Asset Backed 7%
Commercial Paper 3%
Cash Equivalent 3%
---------------------
</TABLE>
Credit Quality
<TABLE>
---------------------
<S> <C>
AAA 50%
AA 3%
A 15%
BBB 14%
BB or below 18%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 5.60%
Three Year, 4.58%
Since 12/9/96, 5.36%
Statistics
<TABLE>
----------------------------
<S> <C>
Net Assets $310.3
Number of Issues 127
Average Maturity 9.3 years
SEC Yield 6.98%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Asset Backed Securities (8%)
8,000,000 Associates Credit
Card Trust,
6.96%, 9/18/06 $ 8,002.6
28,855 Chase Manhattan,
6.40%, 7/16/01 28.9
3,000,000 Citibank Credit
Card,
5.75%, 1/15/03 2,992.8
3,000,000 Evergreen Funding,
8.18%, 11/15/10 (c) 1,350.0
2,180,000 Los Angeles Funding,
7.66%, 12/15/26 (c) 2,103.7
7,500,000 Medallion Trust,
6.88%, 12/18/31 7,500.0
742,873 Structured Asset
Notes Transactions,
7.16%, 10/28/03 (c) 723.6
2,744,620 WFS Financial Owner
Trust,
5.55%, 2/20/03 2,729.2
----------
Asset Backed
Securities 25,430.8
Commercial Paper (4%)
7,000,000 GE Capital Corp. CP,
6.45%, 11/29/00 7,000.0
6,500,000 Goldman Sachs CP,
6.55%, 1/11/01 6,416.0
----------
Commercial Paper 13,416.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Corporate Bonds (32%)
750,000 Adelphia
Communications,
10.88%, 10/1/10 $ 701.2
400,000 Allied Waste of
North America,
7.88%, 1/1/09 345.0
850,000 AES Corp.,
9.50%, 6/1/09 864.9
400,000 AK Steel Corp.,
7.88%, 2/15/09 359.0
400,000 American Standard,
7.38%, 2/1/08 370.0
375,000 Argosy Gaming,
10.75%, 6/1/09 392.8
3,000,000 AT&T Corp.,
6.50%, 3/15/29 2,355.0
3,000,000 Bear Stearns
Company, Inc.,
7.63%, 2/1/05 3,007.5
3,000,000 BSCH Issuance
Limited,
7.63%, 9/14/10 2,962.5
700,000 Calpine Corp.,
8.75%, 7/15/07 686.0
550,000 Charter
Communication
Holdings LLC,
8.63%, 4/1/09 495.0
</TABLE>
Annual Report
37
<PAGE>
Total Return Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------------
<C> <S> <C>
3,000,000 CIT Holdings LLC,
7.13%, 12/17/03 $ 2,928.7
3,000,000 Citigroup Inc.,
7.25%, 10/1/10 2,977.5
3,000,000 Clear Channel
Communications,
7.25%, 9/15/03 2,973.7
2,000,000 Coastal Corp.,
7.75%, 6/15/10 2,025.0
2,000,000 Con Edison,
7.15%, 12/1/09 1,940.0
1,500,000 ConAgra Inc.,
7.50%, 9/15/05 1,513.1
700,000 CSC Holdings, Inc.,
8.13%, 7/15/09 681.6
350,000 D.R. Horton, Inc.,
8.00%, 2/1/09 309.8
3,000,000 Dominion Resources,
7.63%, 7/15/05 3,026.3
1,525,000 Echostar DBS Corp.,
9.38%, 2/1/09 1,500.2
3,000,000 Enron Corp.,
6.63%, 11/15/05 2,932.5
500,000 Exodus
Communications,
10.75%, 12/15/09 450.0
400,000 Flag LTD,
8.25%, 1/30/08 328.0
500,000 Flextronics
International,
9.88%, 7/1/10 (c) 505.0
3,000,000 Ford Motor Company,
7.45%, 7/16/31 2,763.8
650,000 Global Crossing
Holding LTD,
9.50%, 11/15/09 619.1
800,000 Harrahs Operating Co.,
7.88%, 12/15/05 774.0
750,000 HMH Properties,
7.88%, 8/1/08 690.0
350,000 Hollywood Park,
9.25%, 2/15/07 373.6
3,000,000 International Paper Co.,
8.00%, 7/8/03 (c) 3,048.8
600,000 Kaufman & Broad Home
Corp.,
9.63%, 11/15/06 591.0
500,000 Kpnqwest,
8.13%, 6/1/09 445.0
700,000 Level 3
Communications,
9.13%, 5/1/08 565.3
750,000 Lyondell Chemical Co.,
9.88%, 5/1/07 729.4
750,000 Mandalay Resort
Group,
9.25%, 12/1/05 740.6
4,000,000 MBNA Corp.,
6.15%, 10/1/03 3,855.0
750,000 MGM Grand Inc.,
9.75%, 6/1/07 778.1
400,000 Nextel
Communications,
0.00%, 10/31/07 (d) 308.0
450,000 Northwest Airlines, Inc.,
8.52%, 4/7/04 435.9
450,000 NTL, Inc.,
10.00%, 2/15/07 391.5
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
3,000,000 Osprey Trust,
7.80%, 1/15/03 (c) $ 3,000.0
500,000 Pogo Producing,
10.38%, 2/15/09 523.1
800,000 Pogo Producing,
8.75%, 5/15/07 776.0
3,000,000 Raytheon Co.,
5.70%, 11/1/03 2,883.7
3,000,000 Salomon, Inc.,
7.08%, 7/23/01 3,003.5
225,000 Salomon, Inc.,
6.63%, 11/30/00 225.0
500,000 Sinclair
Broadcasting,
9.00%, 7/15/07 445.0
2,000,000 Standard Chartered,
7.15%, 12/29/49 1,300.0
800,000 Sterling Chemicals,
Inc.,
12.38%, 7/15/06 770.0
2,000,000 Sun Microsystems,
Inc.,
7.65%, 8/15/09 2,022.5
2,000,000 Sun Microsystems,
Inc.,
7.50%, 8/15/06 2,030.0
3,500,000 TCI Communication,
6.38%, 3/12/01 3,521.0
1,000,000 Time Warner, Inc.,
6.10%, 12/30/01 (c) 985.0
2,500,000 TRW, Inc.,
7.13%, 6/1/09 2,328.1
1,500,000 Unilever Capital
Corp.,
7.13%, 11/1/10 1,483.1
4,000,000 Viacom Inc.,
7.70%, 7/30/10 4,075.0
3,000,000 Visteon Corp.,
7.95%, 8/1/05 2,996.3
5,700,000 Vodafone Airtouch
PLC,
7.75%, 2/15/10 (c) 5,806.9
3,000,000 Wal-Mart, Inc.,
7.55%, 2/15/30 3,112.5
1,400,000 Wells Fargo Bank,
7.55%, 6/21/2010 1,415.8
875,000 WMX Technologies,
6.38%, 12/1/03 826.9
500,000 Young Broadcasting,
8.75%, 6/15/07 450.0
----------
Corporate Bonds 97,718.8
Foreign Bonds (10%)
500,000 Argentina Government
Bond, 11.75%, 4/7/09 436.3
504,000 Argentina Government
Bond,
7.63%, 3/31/05 441.0
3,500,000 Austria Government
Bond,
3.40%, 10/20/04 2,765.7
2,770,673 Brazil C-
Bond, 8.00%,
4/15/14 2,069.0
1,000,000 Brazil Government
Bond,
11.00%, 8/17/40 760.0
1,540,000 Brazil Government
Bond,
7.63%, 4/15/06 1,401.4
1,500,000 Bulgaria Government
Bond,
3.00%, 7/28/12 1,074.4
</TABLE>
Paydenfunds
38
<PAGE>
Total Return Fund
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
700,000 Cablevision,
13.75%, 4/30/07 $ 553.0
1,000,000 Cho Hung-Panhandle
Royalty Co., 11.50%,
4/1/10 (c) 956.2
3,200,000 France Government
Bond,
5.50%, 10/25/07 2,750.2
750,000 Globo Communicacoes,
10.50%, 12/20/06 (e) 650.6
750,000 Hanvit Bank,
11.75%, 3/1/10 (c) 719.1
750,000 Innova SA,
12.88%, 4/1/07 677.8
3,000,000 Koninklijke KPN NV,
8.00%, 10/1/10 (c) 2,943.7
500,000 Morocco Government
Bond,
7.75%, 1/1/09 434.7
650,000 Multicanal SA,
13.13%, 4/15/09 565.5
700,000 Panama Government
Bond,
10.75%, 5/15/20 681.1
750,000 Pemex Project
Funding Master,
9.13%, 10/13/10 (c) 727.5
300,000 Philippine Long
Distance,
10.50%, 4/15/09 255.0
600,000 Philippines
Government Bond,
9.88%, 1/15/19 447.0
10,000,000 Poland Government
Bond,
8.50%, 2/12/05 1,683.1
270,000 PTC International
Finance II SA,
11.25%, 12/1/09 243.0
500,000 Russian Federation,
11.75%, 6/10/03 (e) 478.8
1,250,000 Russian Federation,
10.00%, 6/26/07 (e) 935.9
1,000,000 Russian Federation,
12.75%, 6/24/28 (e) 843.7
2,260,000 Russian Federation,
2.50%, 3/31/30 (e) 841.9
750,000 Sanluis Corp. SA,
8.88%, 3/18/08 (e) 686.3
500,000 Slovak Wireless
Financial Co.,
11.25%, 3/30/07 (c) 392.0
500,000 South Africa
Government Bond,
9.13%, 5/19/09 487.5
375,000 Turkey Government
Bond,
12.38%, 6/15/09 376.9
750,000 United Mexican
States,
6.25%, 12/31/19 660.0
750,000 United Mexican
States,
9.88%, 2/1/10 780.0
1,607,130 Venezuela Government
Bond,
7.88%, 12/18/07 1,344.0
----------
Foreign Bonds 31,062.3
Mortgage Backed Securities (29%)
8,538,343 FNMA #323541,
6.00%, 2/1/29 8,007.3
1,639,682 FNMA #551775,
6.00%, 9/1/29 1,537.7
6,000,000 FNMA 2000-40 F,
7.12%, 12/25/22 6,038.4
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
3,200,000 FNMA Note,
7.00%, 7/15/05 $ 3,258.0
3,600,000 FNMA TBA,
6.00%, 9/1/15 (b) 3,465.0
11,700,000 FNMA TBA,
6.50%, 4/1/28 (b) 11,242.9
24,900,000 FNMA TBA,
7.00%, 4/1/28 (b) 24,402.0
3,600,000 FNMA TBA,
7.00%, 9/1/15 (b) 3,578.6
4,900,000 GNMA #2781,
6.50%, 7/20/29 4,708.6
3,849,865 GNMA #449601,
8.00%, 6/15/27 3,912.4
11,800,000 GNMA TBA,
7.5%, 8/15/27 (b) 11,840.5
7,000,000 GNMA TBA,
8.00%, 11/15/28 (b) 7,111.5
----------
Mortgage Backed
Securities 89,102.9
U.S. Treasury (36%)
15,400,000 U.S. Treasury Bond,
6.25%, 8/15/23 15,885.7
2,300,000 U.S. Treasury Bond,
6.50%, 11/15/26 2,459.5
23,940,000 U.S. Treasury Note,
5.63%, 5/15/08 23,600.1
15,400,000 U.S. Treasury Note,
6.13%, 11/15/27 15,743.6
14,000,000 U.S. Treasury Note,
6.63%, 5/15/07 14,573.7
12,400,000 U.S. Treasury Note,
6.75%, 5/15/05 12,855.2
10,800,000 U.S. Treasury Note,
7.50%, 2/15/05 11,460.2
17,000,000 U.S. Treasury Note,
5.50%, 2/28/03 16,840.0
----------
U.S. Treasury 113,418.0
Investment Companies (5%)
14,463,923 Bunker Hill Money
Market Fund * 14,463.9
----------
Total (Cost - $387,102.6) (a)
(124%) 384,612.7
Liabilities in excess of Other
Assets (-24%) (74,362.6)
----------
Net Assets (100%) $310,250.1
==========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market Fund and securities purchased on a
delayed delivery basis.
(a) For federal income tax purposes, cost is $387,141,284, and unrealized
appreciation (depreciation) of securities is as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 3,075,978
Unrealized depreciation (5,604,559)
-----------
Net unrealized depreciation $(2,528,581)
===========
</TABLE>
Annual Report
39
<PAGE>
Total Return Fund continued
(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.
(d) Step bond coupon rates increase in increments to maturity. Rate shown is as
of October 31, 2000.
(e) Certain conditions for public sale may exist.
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Delivery Contract Contract Unrealized
Date Currency Price Value (Depreciation)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Liabilities:
11/27/00 Polish Zloty (sell) 4.74970 $1,810,641 $ (22,950)
11/30/00 Euro (sell) 1.20729 5,632,440 (138,720)
11/30/00 Euro (sell) 1.20795 289,747 (7,298)
---------- ---------
$7,732,828 $(168,968)
========== =========
</TABLE>
See notes to financial statements.
Paydenfunds
40
<PAGE>
High Income Fund
Unaudited
The objective of the High Income Fund is to realize a high level of current in-
come while providing for capital appreciation by investing in a diversified
portfolio of below investment grade bonds. The Fund invests at least 65% of its
total assets in below investment grade bonds.
Portfolio Composition
<TABLE>
-----------------------------
<S> <C>
Corporate 88%
Foreign Government Bonds 4%
Cash Equivalent 4%
U.S. Treasury 2%
Preferred Stock 1%
Asset Backed 1%
-----------------------------
Credit Quality
-----------------------------
AAA 7%
BBB 1%
BB 35%
B or below 57%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended Ocober 31, 2000
One Year, 0.59%
Since 12/30/97, 2.63%
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $139.5
Number of Issues 127
Average Maturity 7.8 years
SEC Yield 10.56%
</TABLE>
Schedule of Investments - October 31, 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%, 5/16/03 (b) $ 250.3
1,000,000 Ford 98 B Class E,
7.50%, 11/15/03 1,001.5
----------
Asset Backed
Securities 1,251.8
Foreign Bonds (4%)
1,500,000 Brazil Global Bond,
10.13%, 5/15/27 1,125.0
1,500,000 Bulgaria Government
Bond,
6.06%, 7/28/24 1,125.0
750,000 Panama Government
Bond,
10.75%, 5/15/20 729.7
1,000,000 Philippine Government
Bond,
9.88%, 3/16/10 847.5
2,500,000 Poland Government
Bond,
8.50%, 2/12/05 420.8
1,000,000 Unites Mexican
States,
8.50%, 2/1/06 981.9
----------
Foreign Bonds 5,229.9
Preferred Stock (1%)
500 First Republic
Capital Corp. (b) 440.0
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
13,616 Granite Broadcasting
Preferred $ 1,062.0
----------
Preferred Stock 1,502.0
Corporate Bonds (86%)
Basic Materials (7%)
1,100,000 AK Steel Corp.,
9.13%, 12/15/06 1,078.0
1,250,000 California Steel
Industry,
8.50%, 4/1/09 1,100.0
1,750,000 Lyondell Chemical
Co.,
9.88%, 5/1/07 1,701.9
1,350,000 Pacifica Papers,
Inc.,
10.00%, 3/15/09 1,346.6
1,350,000 Packaging Corp. of
America,
9.63%, 4/1/09 1,377.0
1,250,000 Polymer Group,
9.00%, 7/1/07 900.0
250,000 Ryerson Tull, Inc.,
8.50%, 7/15/01 249.6
1,250,000 Sterling Chemicals,
Inc.,
12.38%, 7/15/06 1,203.1
1,000,000 WCI Steel, Inc.,
10.00%, 12/1/04 811.2
----------
Basic Materials 9,767.4
</TABLE>
Annual Report
41
<PAGE>
High Income Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Building & Construction (5%)
1,000,000 Albecca, Inc.,
10.75%, 8/15/08 $ 896.2
1,250,000 Building Materials
Corp.,
8.00%, 12/1/08 362.5
1,200,000 D.R. Horton, Inc.,
8.00%, 2/1/09 1,062.0
1,700,000 Kaufman & Broad Home
Corp.,
9.63%, 11/15/06 1,674.5
1,250,000 LLS Corp.,
11.63%, 8/1/09 1,112.5
1,500,000 Ryland Group,
9.75%, 9/1/10 1,486.9
----------
Building &
Construction 6,594.6
Cable Systems (6%)
1,500,000 Adelphia
Communications,
7.875, 5/1/2009 1,185.0
1,000,000 Cablevision,
13.75%, 4/30/07 (b) 790.0
1,500,000 Charter Communication
Holdings LLC,
8.625%, 4/1/09 1,350.0
1,250,000 Classic Cable, Inc.,
10.50%, 3/1/10 1,031.3
1,600,000 Rogers
Communications,
8.875%, 7/15/07 1,584.0
1,100,000 Time Warner Telecom
LLC,
9.75%, 7/15/08 973.5
1,000,000 United Pan Europe,
11.25%, 2/1/10 635.6
350,000 United Pan-Europe
Communication,
11.25%, 2/1/10 262.5
1,000,000 Winstar
Communications, Inc.,
12.75%, 4/15/10 (b) 610.2
500,000 Winstar
Communications, Inc.,
12.75%, 4/15/10 (b) 360.0
----------
Cable Systems 8,782.1
Consumer Cyclicals (4%)
1,000,000 Bally Total Fitness,
9.88%, 10/15/07 (b) 930.0
1,250,000 HMH Properties,
7.88%, 8/1/08 1,150.0
200,000 K-Mart Corp.,
8.38%, 12/1/04 170.0
1,000,000 Prime Hospitality
Corp.,
9.75%, 4/1/07 1,002.5
500,000 Prime Hospitality,
9.25%, 1/15/06 498.8
1,500,000 Starwood Hotels &
Resorts,
6.75%, 11/15/05 1,402.5
----------
Consumer Cyclicals 5,153.8
Consumer Non-Cyclicals (6%)
1,100,000 Chiquita Brands
International,
10.00%, 6/15/09 544.5
1,000,000 Dominos, Inc.,
10.38%, 1/15/09 910.0
1,500,000 Fresenius Medical,
7.88%, 2/1/08 1,402.5
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
1,250,000 HCA-The Healthcare
Co.,
7.25%, 5/20/08 $ 1,164.1
1,000,000 Healthsouth Corp.,
10.75%, 10/1/08 (b) 1,006.2
1,100,000 Lifepoint Hospitals
Holding,
10.75%, 5/15/09 1,174.2
1,200,000 Tenet Healthcare
Corp.,
9.25%, 9/1/10 1,257.0
750,000 Triad Hospitals
Holdings,
11.00%, 5/15/09 781.9
----------
Consumer Non-
Cyclicals 8,240.4
Energy (9%)
1,700,000 AES Corp.,
9.50%, 6/1/09 1,729.7
1,000,000 Calpine Corp.,
9.25%, 2/1/04 998.8
2,000,000 CMS Energy Corp.,
9.88%, 10/15/07 2,005.0
300,000 Gulf Canada Resources
Limited,
9.25%, 1/15/04 303.0
1,400,000 Nuevo Energy Co.,
9.50%, 6/1/08 1,400.0
1,500,000 Ocean Energy, Inc.,
8.88%, 7/15/07 1,515.0
1,350,000 Orion Power Holdings,
Inc.,
12.00%, 5/1/10 (b) 1,431.0
750,000 Pogo Producing,
10.38%, 2/15/09 784.7
1,000,000 Pogo Producing,
8.75%, 5/15/07 970.0
1,000,000 R&B Falcon Corp.,
9.50%, 12/15/08 1,060.0
----------
Energy 12,197.2
Financials (2%)
750,000 GS Escrow Corp.,
7.71%, 8/1/03 718.2
1,500,000 Hanvit Bank,
11.75%, 3/1/10 (b) 1,438.1
----------
Financials 2,156.3
Gaming (10%)
1,000,000 Anchor Gaming,
9.88%, 10/15/08 (b) 1,011.2
1,100,000 Argosy Gaming,
10.75%, 6/1/09 1,152.2
1,100,000 Boyd Gaming Corp.,
9.50%, 7/15/07 1,001.0
1,700,000 Harrahs Operating
Co.,
7.88%, 12/15/05 1,644.7
200,000 Hollywood Park,
9.25%, 2/15/07 213.5
1,350,000 Horseshoe Gaming,
9.38%, 6/15/07 1,343.3
1,600,000 International Game
Technology,
8.38%, 5/15/09 1,556.0
1,000,000 Mandalay Resort
Group,
10.25%, 8/1/07 1,025.0
</TABLE>
Paydenfunds
42
<PAGE>
High Income Fund
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
700,000 Mandalay Resort
Group,
9.25%, 12/1/05 $ 691.3
1,000,000 MGM Grand, Inc.,
9.75%, 6/1/07 1,037.5
1,475,000 Park Place
Entertainment,
9.38%, 2/15/07 1,489.7
1,450,000 Premier Parks, Inc.,
9.25%, 4/1/06 1,326.8
1,000,000 Station Casinos,
8.88%, 12/1/08 960.0
----------
Gaming 14,452.2
Industrial (9%)
550,000 Allied Waste of North
America,
10.00%, 8/1/09 468.9
1,500,000 American Standard,
7.38%, 2/1/08 1,387.5
1,350,000 Ball Corp.,
7.75%, 8/1/06 1,289.3
850,000 BE Aerospace,
8.00%, 3/1/08 774.6
1,350,000 Fisher Scientific
International,
9.00%, 2/1/08 1,228.5
1,500,000 Flextronics
International,
9.88%, 7/1/10 (b) 1,515.0
1,400,000 K&F Industries,
9.25%, 10/15/07 1,338.8
950,000 Owens-Ill
Incorporated,
7.85%, 5/15/04 712.5
1,250,000 Pierce Leahy,
8.13%, 5/15/08 1,162.5
1,700,000 Scotts Co.,
8.63%, 1/15/09 (b) 1,627.7
750,000 Tembec Industries,
Inc.,
8.63%, 6/30/09 731.3
1,500,000 Vantico Group SA,
12.00%, 8/1/10 1,042.4
----------
Industrial 13,279.0
Multimedia (7%)
1,000,000 Ackerly,
9.00%, 1/15/09 920.0
1,350,000 Cadmus Communication
Corp.,
9.75%, 6/1/09 1,329.8
1,500,000 Chancellor Media,
8.13%, 12/15/07 1,507.5
1,500,000 CSC Holdings, Inc.,
8.13%, 7/15/09 1,460.6
1,000,000 Cumulus Media,
10.38%, 7/1/08 810.0
350,000 Granite Broadcasting,
8.88%, 5/15/08 231.0
1,750,000 Lamar Media Corp.,
8.63%, 9/15/07 1,715.0
1,000,000 Primedia, Inc.,
7.63%, 4/1/08 900.0
1,150,000 Young Broadcasting,
8.75%, 6/15/07 1,035.0
----------
Multimedia 9,908.9
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Telecommunications (20%)
1,350,000 360Networks Inc,
13.00%, 5/1/08 $ 1,134.0
1,000,000 Alestra SA,
12.63%, 5/15/09 847.5
1,000,000 Clearnet
Communications,
0.00%, 12/15/05 (c) 1,053.7
1,000,000 Covad Communications
Group,
12.00%, 2/15/10 480.0
1,500,000 Crown Castle
International Corp.,
10.75, 8/1/11 1,537.5
1,250,000 Echostar Broadband
Corp.,
10.38%, 10/1/07 (b) 1,253.1
750,000 Slovak Wireless
Financial Co.,
11.25%, 3/30/07 (b) 588.0
1,000,000 Exodus
Communications,
10.75%, 12/15/09 900.0
1,500,000 Flag LTD,
8.25%, 1/30/08 1,230.0
1,500,000 Global Crossing
Holding LTD,
9.50%, 11/15/09 1,428.8
1,500,000 Innova S De R.L.,
12.88%, 4/1/07 1,355.6
850,000 Kpnqwest,
8.13%, 6/1/09 756.5
1,500,000 Level 3
Communications,
9.13%, 5/1/08 1,211.3
1,250,000 McLeodUSA, Inc.,
9.25%, 7/15/07 1,150.0
1,500,000 Nextel
Communications,
0.00%, 10/31/02 (c) 1,155.0
1,250,000 Nextlink
Communications,
10.75%, 11/15/08 1,100.0
1,200,000 NTL, Inc.,
10.00%, 02/15/07 1,044.0
1,350,000 Ono Finance PLC,
14.00%, 7/15/10 (b) 892.4
1,500,000 Pinnacle Holdings,
0.00%, 3/15/08 (c) 866.2
1,250,000 Price Communications
Wireless, Inc.,
9.13%, 12/15/06 1,251.6
1,000,000 Primus Telecomm
Group,
11.25%, 1/15/09 500.0
1,250,000 Psinet, Inc.,
10.50%, 12/1/06 600.0
600,000 PTC International
Finance II SA,
11.25%, 12/1/09 540.0
1,250,000 RCN Corp.,
10.13%, 1/15/10 875.0
1,150,000 Sinclair
Broadcasting,
9.00%, 7/15/07 1,023.5
1,500,000 Telecorp PCS, Inc.,
10.63%, 7/15/10 (b) 1,496.2
1,500,000 Williams
Communication,
10.88%, 10/1/09 1,267.5
----------
Telecommunications 27,537.4
Transportation (1%)
1,000,000 Atlas Air, Inc.,
9.25%, 4/15/08 970.0
</TABLE>
Annual Report
43
<PAGE>
High Income Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
1,100,000 Northwest Airlines,
Inc.,
8.52%, 4/7/04 $ 1,065.6
----------
Transportation 2,035.6
Corporate Bonds 120,104.9
U.S. Treasury (1%)
500,000 U.S. Treasury Note,
5.88%, 11/15/04 500.2
1,500,000 U.S. Treasury Note,
6.50%, 2/28/02 1,505.7
----------
U.S. Treasury 2,005.9
Investment Companies (4%)
5,695,284 Bunker Hill Money
Market Fund * 5,695.3
----------
Total (Cost - $146,563.4) (a)
(97%) 135,789.8
Other Assets, net of Liabilities
(3%) 3,701.1
----------
Net Assets (100%) $139,490.9
==========
</TABLE>
* Affiliated Investment
All of the securities listed above are held by the custodian in a segregated
account except Bunker Hill Money Market 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 $ 860,714
Unrealized depreciation (11,634,325)
------------
Net unrealized
depreciation $(10,773,611)
============
</TABLE>
(b) Security exempt from registration under Rule 144(b) of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(c) Step bond coupon rates increase in increments to maturity. Rate shown is as
of October 31, 2000.
Open Forward Currency Contracts
<TABLE>
<CAPTION>
Delivery Contract Contract Unrealized
Date Currency Price Value (Depreciation)
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Liabilities:
11/30/00 Euro (sell) 1.20795 $4,122,693 $(103,833)
11/27/00 Polish (Zloty) 4.74970 452,660 (5,738)
---------- ---------
$4,575,353 $(109,571)
========== =========
</TABLE>
See notes to financial statements.
Paydenfunds
44
<PAGE>
Short Duration Tax Exempt Fund
Unaudited
The objective of the Short Duration Tax Exempt Fund is to earn federal tax-free
income, by investing in debt obligations which are exempt from federal income
tax, consistent with preservation of capital. The Fund generally invests in in-
vestment grade debt securities, but may invest up to 25% of its assets in below
investment grade securities.
Portfolio Composition
<TABLE>
------------------------------
<S> <C>
Insured Bonds 51%
General Obligations Bonds 25%
Revenue Bonds 12%
Pre-Refunded Bonds 8%
Cash Equivalent 4%
------------------------------
</TABLE>
Credit Quality
<TABLE>
------------------------------
<S> <C>
AAA 57%
AA 14%
A 11%
BBB 18%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 4.18%
Three Year, 3.66%
Five Year, 3.76%
Since 9/1/94, 3.94%
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $13.4
Number of Issues 30
Average Maturity 2.6 years
SEC Yield 4.22%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
General Obligations (54%)
400,000 City of Knoxville, TN
Bond Anticipation
Notes,
5.00%, 6/1/02 $ 403.5
500,000 City of Manhattan,
KS,
4.75%, 12/15/01 500.1
565,000 Clark Co., NV School
Dist. (MBIA),
5.25%, 6/15/02 572.8
500,000 Denver, CO City &
Co.,
6.38%, 8/1/03,
Prerefunded 8/1/01 512.3
5,000 District of Columbia
(MBIA),
6.60%, 6/1/03 5.1
370,000 Dodge, KS Unified
School Dist. #443
(FSA),
8.25%, 9/1/03 405.2
500,000 Florida State Board
of Education Capital
Outlay,
5.00%, 6/1/03 506.3
410,000 Florida State Dept.
of Trans. (MBIA),
5.70%, 7/1/11,
Prerefunded 7/1/05 433.6
780,000 Lewisville, TX Indpt
School Dist. (PSFG),
6.25%, 8/15/04 802.4
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
220,000 Lewisville, TX Indpt.
School Dist. (PSFG),
6.25%, 8/15/04,
Prerefunded 8/15/02 $ 226.9
500,000 Mississippi State
General Obligation,
5.20%, 12/15/01 503.8
500,000 New York, NY,
7.50%, 8/15/20,
Prerefunded 8/15/04 556.3
300,000 Ohio State General
Obligation,
5.00%, 2/1/03 303.8
500,000 Snohomish Co., WA
Everett School Dist.
#002 (MBIA),
7.00%, 12/1/01 513.6
1,000,000 Washington State,
6.60%, 2/1/02 1,025.0
---------
General Obligations 7,270.7
Revenue (40%)
Electric & Gas (4%)
500,000 Massachusetts
Municipal Wholesale
Electric, 6.38%,
7/1/01 505.5
Health Care (8%)
500,000 Massachusetts State
Health & Educational
Facilities,
5.00%, 7/1/01 501.4
</TABLE>
Annual Report
45
<PAGE>
Short Duration Tax Exempt Fund continued
Schedule of Investments - October 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
615,000 Philadelphia, PA
Hospitals & Higher
Ed. Facs. Auth.,
5.00%, 11/15/00 $ 614.9
---------
Health Care 1,621.8
Pollution Control (4%)
500,000 Illinois Development
Finance Authority
(MBIA),
7.25%, 6/1/11 517.5
Transportation (6%)
500,000 New Jersey State
Transit Corp.
(AMBAC),
5.00%, 2/1/03 503.1
300,000 Wisconsin State
Transportation
Revenue (MBIA),
6.25%, 7/1/02 308.6
---------
Transportation 811.7
Water & Sewer (18%)
400,000 City of Houston, TX
Water & Sewer (MBIA),
6.20%, 12/1/23,
Prerefunded 12/1/05 429.0
350,000 MA State Water
Resources Auth.
(MBIA),
6.25%, 11/1/10 367.5
290,000 OH State Water
Develop. Auth.
(AMBAC),
6.00%, 12/1/08 302.3
210,000 OH State Water
Develop. Auth.
(AMBAC),
6.00%, 12/1/08,
Prerefunded 12/1/04 221.8
500,000 So. Carolina Public
Svc. Auth. (AMBAC),
6.10%, 7/1/27,
Prerefunded 7/1/02 523.1
500,000 Washington Co., OR
Uni. Sewer (AMBAC),
6.13%, 10/1/12,
Prerefunded 10/1/04 528.1
---------
Water & Sewer 2,371.8
---------
Revenue 5,322.8
</TABLE>
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
Investment Companies (1%)
63,506 Dreyfus Tax Exempt
Cash Management Fund $ 63.5
Variable Rate Demand Notes (3%)
400,000 Raleigh Durham, NC
Airport
Authority,
3.55%, 11/1/15 400.0
100,000 Southwest Higher
Education Authority,
TX
3.40%, 7/1/15 100.0
---------
Variable Rate Demand
Notes 500.0
---------
Total (Cost - $13,151.4) (a)
(98%) 13,157.0
Other Assets, net of Liabilities
(2%) 220.0
---------
Net Assets (100%) $13,377.0
=========
</TABLE>
(a) This represents cost for federal income tax purposes and differs from
value by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 31,425
Unrealized depreciation (25,842)
--------
Net unrealized appreciation $ 5,583
========
</TABLE>
AMBAC:Ambac Assurance Corporation
FGIC:Financial Guaranty Insurance Company
MBIA:MBIA Insurance Corp.
PSFG:Permanent School Fund Guarantee
See notes to financial statements.
Paydenfunds
46
<PAGE>
Tax Exempt Bond Fund
Unaudited
The objective of the Tax Exempt Bond Fund is to earn federal tax-free income by
investing in debt obligations which are exempt from federal income tax, consis-
tent with preservation of capital. The Fund generally invests in investment
grade debt securities, but may invest up to 25% of its assets in below invest-
ment grade securities.
Portfolio Composition
<TABLE>
------------------------------
<S> <C>
General Obligations Bonds 44%
Insured Bonds 22%
Revenue Bonds 20%
Pre-Refunded Bonds 10%
Cash Equivalent 4%
------------------------------
</TABLE>
Credit Quality
<TABLE>
------------------------------
<S> <C>
AAA 57%
AA 31%
A 3%
BBB 9%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 6.70%
Three Year, 4.00%
Five Year, 4.56%
Since 12/21/93, 3.95%
Statistics
<TABLE>
-------------------------------------
<S> <C>
Net Assets (in millions) $24.8
Number of Issues 29
Average Maturity 10.0 years
SEC Yield 4.57%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
General Obligations (54%)
Limited (3%)
700,000 Clark Co., NV School
Dist. (MBIA), 5.88%,
6/15/13, Prerfunded
6/15/05 $ 742.9
Unlimited (51%)
1,000,000 Anderson Co., SC
School Dist. #002,
5.25%, 3/1/21 970.0
1,000,000 Berkeley Co., SC
School Dist.,
5.00%, 4/1/20 941.2
500,000 Berkeley Co., SC
School Dist.,
5.38%, 4/1/11 518.8
1,500,000 Florida State Board
of Education Capital
Outlay,
5.75%, 06/01/12 1,597.5
1,150,000 Fort Bend, TX
Independent School
Dist. (PSFG),
5.00%, ETM 2/15/17 1,104.0
1,000,000 Fort Worth, TX
Independent School
Dist. (PSFG),
0.00%, 2/15/06 773.8
1,000,000 Georgia State General
Obligation,
5.00%, 3/01/13 998.7
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------
<C> <S> <C>
1,000,000 Glendale, AZ,
5.30%, 7/1/12 $ 1,026.2
495,000 Honolulu, HI City &
Co.,
5.00%, 10/1/02 500.0
5,000 Honolulu, HI City &
Co.,
5.00%, ETM 10/1/02 5.1
1,000,000 Minnesota State
General Obligation,
5.50%, 6/1/08 1,055.0
1,000,000 Mississippi State
General Obligation,
5.80%, 6/1/09 1,032.5
1,000,000 Virginia State
General Obligation,
6.10%, 6/1/06 1,057.5
1,000,000 Washington State
General Obligation,
5.63%, 7/1/14 1,030.0
---------
Unlimited 12,610.3
---------
General Obligations 13,353.2
Revenue (41%)
Electric & Gas (2%)
500,000 Massachusetts
Municipal Wholesale
Electric,
6.38%, 7/1/01 505.5
</TABLE>
Annual Report
47
<PAGE>
Tax Exempt Bond Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Health Care (3%)
800,000 California Health
Facilities Financing
Authority,
5.00%, 10/1/18 $ 725.0
Housing (7%)
505,000 Idaho Housing and
Finance Association,
5.20%, 7/1/27 508.8
1,000,000 Virginia State
Housing Development
Authority,
6.30%, 7/1/11 1,031.2
170,000 Wisconsin Housing &
Economic Develop.
Auth.,
5.30%, 11/1/05 173.4
---------
Housing 1,713.4
Special Revenue (10%)
1,200,000 Minnesota Public
Facilities Authority,
5.00%, 3/1/12 1,201.6
1,250,000 Oregon State Dept. of
Administrative Svcs.
(FSA),
5.75%, 4/1/14 1,310.8
---------
Special Revenue 2,512.4
Transportation (11%)
1,025,000 Arapahoe Co., CO
Capital Improvement,
6.90%, 8/31/15,
Prerefunded 8/31/05 1,151.9
1,465,000 Port Authority of New
York & New Jersey,
5.80%, 12/1/12 1,521.7
---------
Transportation 2,673.6
---------
Water & Sewer (8%)
1,000,000 Atlanta, GA Water &
Wastewater Revenue
(FGIC),
5.00%, 11/01/09 1,017.5
1,000,000 Phoenix, AZ, Civic
Improvement (MBIA),
5.60%, 7/1/17,
Prerefunded 7/1/06 1,051.3
---------
Water & Sewer 2,068.8
---------
Revenue 10,198.7
Investment Companies (1%)
92,159 Dreyfus Tax Exempt
Cash Management Fund 92.2
Variable Rate Demand Notes (3%)
100,000 Lincoln Co., WY
Pollution Control
Revenue Bond,
4.00%, 8/1/15 100.0
700,000 Maricopa Co., AZ
Pollution Control
Revenue,
4.95%, 5/1/29 700.0
---------
Variable Rate Demand
Notes 800.0
---------
Total (Cost - $23,942.2) (a)
(99%) 24,444.1
Other Assets, net of Liabilities
(1%) 313.0
---------
Net Assets (100%) $24,757.1
=========
</TABLE>
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $564,269
Unrealized depreciation (62,431)
--------
Net unrealized appreciation $501,838
========
</TABLE>
AMBAC: AMBAC Indemnity Corporation
FSA: Financial Security Assurance Inc.
MBIA: MBIA Insurance Corp.
PSFG: Permanent School Fund Guarantee
ETM: Escrow To Maturity
See notes to financial statements.
Paydenfunds
48
<PAGE>
California Municipal Income Fund
Unaudited
The objective of the California Municipal Income Fund is to earn federal and
California tax-free income by investing in debt obligations which are exempt
from federal and California income tax, consistent with preservation of capi-
tal. The Fund generally invests in investment grade debt securities, but may
invest up to 25% of its assets in below investment grade securities.
Portfolio Composition
<TABLE>
------------------------------
<S> <C>
Insured Bonds 67%
Revenue Bonds 13%
Pre-Refunded Bonds 9%
General Obligations Bonds 8%
Cash Equivalent 3%
------------------------------
</TABLE>
Credit Quality
<TABLE>
------------------------------
<S> <C>
AAA 81%
AA 8%
A 4%
BBB 7%
</TABLE>
Investment Performance
[PERFORMANCE GRAPH APPEARS HERE]
Average Annual Total Return
for the periods ended October 31, 2000
One Year, 7.68%
Since 12/17/98, 3.35%
Statistics
<TABLE>
------------------------------------
<S> <C>
Net Assets (in millions) $34.8
Number of Issues 35
Average Maturity 9.7 years
SEC Yield 4.37%
</TABLE>
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
General Obligations (33%)
Limited (3%)
1,100,000 Orange Co., Special
Financing Auth.
(AMBAC),
6.25%, 11/1/14 $ 1,100.0
Unlimited (30%)
1,375,000 Central Valley School
Dist. Fin. Auth.
(MBIA),
6.25%, 2/1/11 1,560.6
1,000,000 Chaffey Joint Union
High School Dist.
(FGIC),
5.5%, 8/1/14 1,048.8
1,195,000 Fresno, CA Unified
School Dist. (MBIA),
5.80%, 2/1/11 1,314.5
1,340,000 Los Angeles, CA
Unified School Dist.
(FGIC),
6.00%, 7/1/14 1,495.8
1,300,000 Oakland Unified
School Dist., Alameda
Co. (MBIA),
5.25%, 8/1/11 1,363.4
900,000 Puerto Rico
Commonwealth (MBIA),
6.25%, 7/1/08 1,009.1
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
1,560,000 Sacramento City
Unified School Dist.,
5.75%, 7/1/15 $ 1,671.2
1,000,000 San Diego, CA Unified
School Dist., 5.25%,
10/4/01 1,013.4
---------
Unlimited 10,476.8
General Obligations 11,576.8
Revenue (62%)
Airport (4%)
200,000 Los Angeles, CA City
Dept. of Airports
(FGIC),
5.50%, 5/15/07 (b) 209.2
1,085,000 San Francisco City
and Co. Airport Comm.
(FSA),
5.25%, 5/1/13 1,120.3
---------
Airport 1,329.5
Education (5%)
1,000,000 California Ed.
Facilities Auth.
(MBIA), 5.75%,
9/1/26, Prerefunded
9/1/06 1,092.5
700,000 Univ. of California
Revenue (MBIA),
6.38%, 9/1/19,
Prerefunded 9/1/02 742.0
---------
Education 1,834.5
</TABLE>
Annual Report
49
<PAGE>
California Municipal Income Fund continued
Schedule of Investments - October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
----------------------------------------------
<C> <S> <C>
Electric & Gas (3%)
1,060,000 Glendale, CA Electric
Works (MBIA), 5.75%,
2/1/14 $1,135.5
Health Care (4%)
200,000 California Health
Facilities Financing
Auth.,
5.00%, 10/1/18 181.3
1,000,000 California Health
Facilities Financing
Auth.,
5.88%, ETM 11/1/23 1,056.2
--------
Health Care 1,237.5
Housing (1%)
330,000 California Housing
Finance Agency
(MBIA),
5.20%, 8/1/26 330.3
Lease (10%)
1,085,000 Alameda Co., CA Cert.
of Participation
(MBIA),
5.38%, 6/1/09 1,158.2
1,625,000 California State
Public Works Board
Lease (FSA),
5.25%, 6/1/15 1,685.9
500,000 San Diego Co., CA
Certificates of
Participation,
5.50%, 2/1/13 499.4
--------
Lease 3,343.5
Special Tax (9%)
1,215,000 Fontana, CA
Redevelopment Agency,
4.75%, 10/1/04 1,216.5
1,000,000 Monrovia, CA
Redevelopment Agency
(AMBAC),
6.70%, 5/1/21 1,051.3
1,000,000 San Dimas, CA
Redevelopment Agency
(FSA),
6.75%, 9/1/16 1,039.8
--------
Special Tax 3,307.6
Transportation (20%)
1,100,000 Los Angeles Co., CA
Trans. Comm., 6.50%,
7/1/20, Prerefunded
7/1/02 1,164.6
500,000 Los Angeles Co., CA
Trans. Comm. (MBIA),
6.50%, 7/1/13 517.7
1,000,000 Puerto Rico
Commonwealth Hwy. &
Trans. Auth. (FSA),
5.50%, 7/1/15 1,058.8
500,000 Puerto Rico
Commonwealth
Infrastructure Fin.
Auth.,
5.50%, 10/1/17 514.4
1,025,000 San Diego Co.
Regional Trans. Comm.
(AMBAC),
6.00%, 4/1/06 1,110.8
1,000,000 San Mateo Co., CA
Transit Dist. (MBIA),
5.25%, 6/1/17 1,022.5
1,470,000 San Mateo Co., CA
Transit Dist. (MBIA),
5.50%, 6/1/17 1,545.3
--------
Transportation 6,934.1
</TABLE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
or Shares Security Description Value (000)
---------------------------------------------------
<C> <S> <C>
Water & Sewer (6%)
1,000,000 East Bay Municipal Utility
Dist. (MBIA),
6.00%, 6/1/12 $ 1,042.5
1,000,000 Sacramento Co.
Sanitation Dist.
Financing,
6.00%, 12/1/15 1,090.0
---------
Water & Sewer 2,132.5
---------
Revenue 21,585.0
Variable Rate Demand Notes (3%)
600,000 California Pollution
Control Financing
Auth.,
2.15%, 11/1/26 600.0
400,000 Irvine Ranch, CA
Water Dist.,
3.50%, 10/1/10 400.0
---------
Variable Rate Demand
Notes 1,000.0
Investment Companies (0%)
---------
54,733 Dreyfus State Tax
Exempt 54.7
---------
Total (Cost - $33,454.9) (a)
(98%) 34,216.5
Other Assets, net of Liabilities
(2%) 575.9
---------
Net Assets (100%) $34,792.4
=========
</TABLE>
(a) This represents cost for federal income tax purposes and differs from value
by unrealized appreciation (depreciation) of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $816,285
Unrealized depreciation (54,711)
--------
Net unrealized appreciation $761,574
========
</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.
ETM: Escrow To Maturity
See notes to financial statements.
Paydenfunds
50
<PAGE>
Statements of Cash Flows
Year ended October 31, 2000
(all numbers in thousands)
<TABLE>
<CAPTION>
Investment Total
GNMA Quality Bond Return
Fund Fund Fund
======== ============ ==========
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net investment income...................... 7,795 8,213 18,420
Adjustments to reconcile net investment
income to net cash provided by operating
activities:
Change in interest and dividends
receivable.............................. (4) 1,715 (2,728)
Amortization/accretion................... (1,101) (331) (2,624)
TBA commitment income.................... (523) (556) (972)
Change in other assets................... (13) 1 (20)
Change in other liabilities.............. 16 (116) 77
Purchase of investments.................. (722,258) (1,215,386) (2,469,065)
Proceeds from the sale of investments.... 692,342 1,332,818 2,340,831
Payments for futures variation........... (338) (2,705)
Change in forward exchange contracts..... 917
Proceeds from paydowns................... 25,768 4,305 5,270
-------- ---------- ----------
Net Cash From Operating Activities..... 2,022 130,325 (112,599)
-------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment for fund shares redeemed .......... (20,436) (136,543) (67,416)
Proceeds from fund shares sold............. 7,736 13,631 132,504
Cash paid for dividends and capital gains.. (3,075) (678) (730)
Purchase of TBA transactions............... (395,730) (681,625) (1,187,746)
Proceeds from sale of TBA transactions..... 409,483 674,922 1,236,003
-------- ---------- ----------
Net Cash From Financing Activities..... (2,022) (130,293) 112,615
-------- ---------- ----------
CHANGE IN CASH....................... -- 32 16
Beginning Cash............................. -- -- --
-------- ---------- ----------
Ending Cash................................ -- 32 16
======== ========== ==========
Non Cash Financing..................... 4,524 7,721 18,711
</TABLE>
See notes to financial statements.
Annual Report
51
<PAGE>
Statements of Assets & Liabilities
October 31, 2000
<TABLE>
<CAPTION>
Global Global Emerging Global
Short Bond Fixed Income Markets Balanced
Fund Fund Bond Fund Fund
============ ============ =========== ===========
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value *.. $139,190,434 $493,215,305 $51,075,388 $ 9,769,870
Foreign cash............. 2,230 149,003 877 2,000
Cash..................... 91,013 20,000
Receivable for:
Interest and dividends.. 2,765,367 8,540,808 842,481 94,717
Investments sold........
Fund shares sold........ 54,725 10,200 318
Futures and options
contracts.............. 1,229 20,129
Forward currency
contracts.............. 12,270,927 25,374,252 184,452
Receivable from Advisor
(Note 3)................ 3,476
Other assets............. 16,947 63,345 3,940 2,005
------------ ------------ ----------- -----------
Total Assets........... 154,245,905 527,489,680 51,952,886 10,076,967
------------ ------------ ----------- -----------
LIABILITIES:
Payable for:
Forward currency
contracts.............. 95,064 945,826 19,599
Investments purchased... 2,604,720
Fund shares redeemed.... 2,310 2,809,622 40
Futures and options
contracts..............
TBA sales commitments...
Distributions payable.... 3,718 14,874
Accrued expenses:
Investment advisory fees
(Note 3)............... 35,370 131,389 20,625
Administration fees
(Note 3)............... 10,531 35,037 3,264 668
Other liabilities........ 67,524 155,667 42,479 29,972
------------ ------------ ----------- -----------
Total Liabilities...... 214,517 4,092,415 2,690,687 30,680
------------ ------------ ----------- -----------
NET ASSETS............. $154,031,388 $523,397,265 $49,262,199 $10,046,287
============ ============ =========== ===========
NET ASSETS:
Paid in capital.......... $166,207,209 $536,651,316 $48,962,772 $ 9,201,505
Undistributed net
investment income....... 234,126 (58,491) 587,945 (811)
Distributions in excess
of net investment
income..................
Undistributed net
realized gains (losses)
from investments........ (9,405,275) (7,978,217) 944,407 912,071
Net unrealized
appreciation
(depreciation) from:
Investments............. 185,917 (3,458,665) (1,110,209) 483,445
Translation of assets
and liabilities in
foreign currencies..... (3,190,589) (1,758,678) (122,716) (549,923)
------------ ------------ ----------- -----------
NET ASSETS............. $154,031,388 $523,397,265 $49,262,199 $10,046,287
============ ============ =========== ===========
Outstanding shares of
beneficial interest.... 16,050,958 52,491,652 4,421,098 912,851
============ ============ =========== ===========
NET ASSET VALUE --
offering and
redemption price per
share.................. $ 9.60 $ 9.97 $ 11.14 $ 11.01
============ ============ =========== ===========
-------
* Investments, at cost... $150,182,175 $522,493,161 $52,288,596 $ 9,879,633
</TABLE>
See notes to financial statements.
Paydenfunds
52
<PAGE>
<TABLE>
<CAPTION>
European
Growth & European World Growth & Market U.S. Growth Small Cap
Income Aggressive Target Twenty Income Return Leaders Leaders
Fund Growth Fund Fund Fund Fund Fund Fund
========== =========== ============= ============ =========== =========== ===========
<S> <C> <C> <C> <C> <C> <C>
$6,355,218 $59,653,560 $7,526,971 $104,222,858 $57,585,811 $19,503,904 $20,105,863
2,876 1,535,838
370,037 75,000
42,093 19,257 2,846 69,493 263,819 859 33,529
752,506
361,832 1,589,363 10,000 86,601 23,230 99,500 55,500
1,195,386 197,250
5,267
12,447 22,078 990 17,335 31,412 3,139 1,951
---------- ----------- ---------- ------------ ----------- ----------- -----------
6,779,733 63,190,133 7,540,807 104,471,287 59,099,658 19,804,652 20,949,349
---------- ----------- ---------- ------------ ----------- ----------- -----------
102
794,506 46,853
20,397 72,087 156,806 1,909 16,435
9,154
33,638 4,178 39,701 7,203 3,986 8,886
508 4,225 516 6,951 3,902 1,097 1,385
32,937 62,167 29,993 58,574 46,605 29,181 34,975
---------- ----------- ---------- ------------ ----------- ----------- -----------
53,842 172,219 34,687 262,032 68,773 845,205 92,099
---------- ----------- ---------- ------------ ----------- ----------- -----------
$6,725,891 $63,017,914 $7,506,120 $104,209,255 $59,030,885 $18,959,447 $20,857,250
========== =========== ========== ============ =========== =========== ===========
$7,318,791 $63,630,866 $8,609,614 $ 72,664,845 $62,241,458 $17,926,100 $17,864,184
(2,291) 67,161 82,571 60,338
(1,298,432) 41,300 21,911,858 (266,478) 364,167 1,212,607
(592,464) 7,107,657 (774,091) 9,634,843 (3,011,256) 586,609 1,720,121
(436) (6,422,177) (370,703)
---------- ----------- ---------- ------------ ----------- ----------- -----------
$6,725,891 $63,017,914 $7,506,120 $104,209,255 $59,030,885 $18,959,447 $20,857,250
========== =========== ========== ============ =========== =========== ===========
834,011 3,756,308 895,792 6,675,506 4,534,186 1,659,659 1,793,499
========== =========== ========== ============ =========== =========== ===========
$ 8.06 $ 16.78 $ 8.38 $ 15.61 $ 13.02 $ 11.42 $ 11.63
========== =========== ========== ============ =========== =========== ===========
$6,943,043 $58,935,975 $8,671,596 $ 94,588,015 $57,605,755 $18,918,114 $18,385,742
</TABLE>
See notes to financial statements.
Annual Report
53
<PAGE>
Statements of Assets & Liabilities continued
October 31, 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*.... $159,160,789 $177,369,084 $66,434,118 $67,687,285
Repurchase agreement, at
cost..................... 54,000,000
Foreign cash..............
Cash......................
Receivable for:
Interest and dividends... 1,083,469 1,597,921 815,081 794,497
Investments sold.........
Fund shares sold......... 9,238,888 11,958
Futures and options
contracts............... 5,250
Forward currency
contracts...............
Receivable from Advisor
(Note 3).................
Other assets.............. 17,200 15,384 5,882 5,183
------------ ------------ ----------- -----------
Total Assets............ 223,500,346 178,994,347 67,260,331 68,486,965
------------ ------------ ----------- -----------
LIABILITIES:
Payable for:
Forward currency
contracts...............
Investments purchased.... 12,931,093 251,172
Fund shares redeemed..... 9,214,837 24,787
Futures and options
contracts...............
TBA sales commitments....
Distributions payable..... 307,673 21,411 46
Accrued expenses:
Investment advisory fees
(Note 3)................ 12,802 29,295 8,961 10,273
Administration fees (Note
3)...................... 12,608 11,691 4,599 4,552
Other liabilities......... 91,368 83,288 38,787 38,377
------------ ------------ ----------- -----------
Total Liabilities....... 22,570,381 170,472 303,519 53,248
------------ ------------ ----------- -----------
NET ASSETS.............. $200,929,965 $178,823,875 $66,956,812 $68,433,717
============ ============ =========== ===========
NET ASSETS:
Paid in capital........... $200,929,965 $179,196,750 $68,927,933 $69,921,562
Undistributed net
investment income........
Distributions in excess of
net investment income....
Undistributed net realized
gains (losses) from
investments.............. (625,643) (2,109,887) (1,895,034)
Net unrealized
appreciation
(depreciation) from:
Investments.............. 252,768 138,766 407,189
Translation of assets and
liabilities in foreign
currencies..............
------------ ------------ ----------- -----------
NET ASSETS............. $200,929,965 $178,823,875 $66,956,812 $68,433,717
============ ============ =========== ===========
Outstanding shares of
beneficial interest..... 200,929,965 17,940,146 6,910,760 6,535,260
============ ============ =========== ===========
NET ASSET VALUE --
offering and redemption
price per share......... $ 1.00 $ 9.97 $ 9.69 $ 10.47
============ ============ =========== ===========
-------
* Investments, at cost.... $159,160,789 $177,116,316 $66,348,838 $67,280,096
</TABLE>
See notes to financial statements.
Paydenfunds
54
<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>
$143,939,835 $95,212,127 $384,612,703 $135,789,812 $13,156,983 $24,444,058 $34,216,465
678 55,600
31,537 15,769
640,457 1,270,064 5,829,020 3,847,792 255,982 377,055 631,043
3,905,499
13,748 465 227 5,925
372
12,716 7,169 25,584 11,157 4,769 2,780 3,054
------------ ----------- ------------ ------------ ----------- ----------- -----------
144,606,756 100,426,396 390,484,219 139,704,588 13,424,031 24,823,893 34,850,562
------------ ----------- ------------ ------------ ----------- ----------- -----------
168,968 109,571
30,782,927 23,102,725 79,789,540
2,751 15,000 1,414
10,987 3,002 11,484
338,449 12,104 54,171 4,976 33,181 12,498
12,525 16,662 77,818 42,040 3,748 7,771
7,522 5,266 21,188 9,609 916 1,673 2,576
52,330 40,645 110,986 52,419 26,120 26,742 35,350
------------ ----------- ------------ ------------ ----------- ----------- -----------
31,204,740 23,183,155 80,234,155 213,639 47,012 66,758 58,195
------------ ----------- ------------ ------------ ----------- ----------- -----------
$113,402,016 $77,243,241 $310,250,064 $139,490,949 $13,377,019 $24,757,135 $34,792,367
============ =========== ============ ============ =========== =========== ===========
$112,188,449 $92,553,801 $325,333,100 $158,717,264 $13,398,690 $25,734,720 $34,559,766
53,469 284,455 1,761,890 (2,013)
72,230 (15,401,805) (12,700,021) (10,097,939) (27,255) (1,479,423) (526,960)
1,141,337 37,776 (1,585,904) (10,115,599) 5,584 501,838 761,574
(1,081,566) (774,667)
------------ ----------- ------------ ------------ ----------- ----------- -----------
$113,402,016 $77,243,241 $310,250,064 $139,490,949 $13,377,019 $24,757,135 $34,792,367
============ =========== ============ ============ =========== =========== ===========
11,171,865 8,301,632 32,668,246 15,921,162 1,356,003 2,584,488 3,503,359
============ =========== ============ ============ =========== =========== ===========
$ 10.15 $ 9.30 $ 9.50 $ 8.76 $ 9.87 $ 9.58 $ 9.93
============ =========== ============ ============ =========== =========== ===========
$142,798,498 $95,174,351 $387,102,554 $146,563,423 $13,151,399 $23,942,220 $33,454,891
</TABLE>
See notes to financial statements.
Annual Report
55
<PAGE>
Statements of Operations
Periods ended October 31, 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 (Note 2).... $ 8,710,532 $25,269,583 $ 2,599,105 $ 254,212
Dividend income............. 79,769
Foreign tax withholdings.... (2,668) (2,636) (6,773)
----------- ----------- ----------- ----------
Investment Income......... 8,707,864 25,266,947 2,599,105 327,208
----------- ----------- ----------- ----------
EXPENSES:
Investment advisory fees
(Note 3)................... 556,724 1,459,367 112,859 49,166
Administration fees (Note
3)......................... 148,460 389,164 20,064 7,867
Custodian fees.............. 71,870 167,080 17,419 18,470
Transfer agent fees......... 27,837 65,352 13,405 12,033
Registration and filing
fees....................... 16,348 27,255 23,175 12,158
Professional fees........... 3,379 8,784 466 186
Trustees' fees and
expenses................... 19,563 52,271 2,976 1,085
Printing costs.............. 15,489 57,241 4,412 1,211
Organization expenses (Note
2)......................... 145
Legal fees.................. 3,535 9,560 500 200
Accounting fees............. 62,398 154,308 12,476 9,068
Insurance................... 12,544 23,005 94 461
Audit fees.................. 28,006 44,248 20,699 23,433
Interest expense (Note 2)...
Other expenses.............. 15,831 25,842 3,873 8,580
Expenses previously deferred
(Note 3)................... 3,150
----------- ----------- ----------- ----------
Gross Expenses............ 981,984 2,483,477 235,568 144,063
Custodian credits (Note 2).. (966) (1,665) (1,527) (16)
Expense subsidy (Note 3).... (53,145) (33,402) (75,481)
----------- ----------- ----------- ----------
Net Expenses.............. 927,873 2,481,812 200,639 68,566
----------- ----------- ----------- ----------
Net Investment Income.... 7,779,991 22,785,135 2,398,466 258,642
----------- ----------- ----------- ----------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains (losses)
from:
Investments................ (4,344,721) (9,474,065) 995,391 1,104,616
Foreign currency
transactions.............. 2,825,162 412,774 131,557 (315)
Futures, options and swap
contracts................. 2,244,871 144,159
Change in net unrealized
appreciation (depreciation)
from:
Investments................ 4,096,251 12,450,395 (1,346,425) 286,709
Translation of assets and
liabilities in foreign
currencies................ (63,085) 4,871,065 (122,716) (1,195,651)
Futures, options and swap
contracts................. (1,123,878) (175,639)
----------- ----------- ----------- ----------
Net Realized and
Unrealized Gains
(Losses)................. 2,513,607 9,381,162 (342,193) 163,879
----------- ----------- ----------- ----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS.. $10,293,598 $32,166,297 $ 2,056,273 $ 422,521
=========== =========== =========== ==========
</TABLE>
-------
(a) The Fund commenced operations on March 31, 2000.
(b) The Fund commenced operations on December 20, 1999.
See notes to financial statements.
Paydenfunds
56
<PAGE>
<TABLE>
<CAPTION>
European European World U.S. Growth Small Cap
Growth & Aggressive Target Twenty Growth & Market Leaders Leaders
Income Fund Growth Fund Fund (a) Income Fund Return Fund Fund Fund (b)
=========== =========== ============= ============ =========== =========== ==========
<S> <C> <C> <C> <C> <C> <C>
$ 109,509 $ 313,745 $ 56,634 $ 57,727 $ 5,619,674 $ 188,943 $ 114,459
397,537 156,246 12,298 3,263,801 29,679 128,785
(33,613) (13,431) (299)
----------- ----------- ----------- ------------ ----------- --------- ----------
473,433 456,560 68,633 3,321,528 5,619,674 218,622 243,244
----------- ----------- ----------- ------------ ----------- --------- ----------
120,544 496,969 58,693 815,393 250,689 74,874 111,787
19,287 49,697 3,913 130,463 71,625 9,983 14,905
39,070 60,335 6,460 17,995 15,513 10,354 7,412
23,862 35,933 6,968 146,565 23,062 12,906 15,026
12,808 34,863 3,772 16,888 18,120 12,445 7,705
432 1,192 114 2,818 1,787 173 363
2,557 6,277 450 17,739 10,506 1,374 2,062
2,806 12,137 1,035 25,085 12,302 2,055 3,145
1,095 33,652 10 16,660
355 1,675 600 2,864 1,990 400 740
14,087 24,996 5,025 58,718 34,355 9,483 10,735
1,210 147 17 10,988 1,734 34 45
22,948 20,414 20,581 23,322 21,282 17,849 20,731
19,752 8,084 2,835
8,789 6,004 1,456 13,201 10,443 998 485
5,926
----------- ----------- ----------- ------------ ----------- --------- ----------
289,602 758,723 142,736 1,290,810 473,408 152,928 211,801
(1,547) (77) (1,725) (270) (317)
(53,059) (107,930) (86,412) (65,874) (69,008) (52,830) (62,504)
----------- ----------- ----------- ------------ ----------- --------- ----------
236,543 649,246 56,247 1,224,936 402,675 99,828 148,980
----------- ----------- ----------- ------------ ----------- --------- ----------
236,890 (192,686) 12,386 2,096,592 5,216,999 118,794 94,264
----------- ----------- ----------- ------------ ----------- --------- ----------
208,705 (1,062,181) 44,204 50,154,046 (334,502) 714,283 1,448,728
(4,308,942) (628,604) (15,290)
734,891 (37,571) 2,010,879 (347,897) (236,121)
(1,936,674) 5,716,389 (774,091) (52,133,821) 380,539 404,888 1,720,121
448,657 (6,324,097) (370,703)
(114,939) (4,857,448)
----------- ----------- ----------- ------------ ----------- --------- ----------
(4,968,302) (2,298,493) (1,115,880) (2,017,346) (2,800,532) 771,274 2,932,728
----------- ----------- ----------- ------------ ----------- --------- ----------
$(4,731,412) $(2,491,179) $(1,103,494) $ 79,246 $ 2,416,467 $ 890,068 $3,026,992
=========== =========== =========== ============ =========== ========= ==========
</TABLE>
See notes to financial statements.
Annual Report
57
<PAGE>
Statements of Operations continued
Periods ended October 31, 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 (Note
2)..................... $ 10,783,047 $ 9,242,388 $ 3,900,322 $ 4,321,015
Dividend income.........
Foreign tax
withholdings...........
------------- ------------ ------------ ------------
Investment Income...... 10,783,047 9,242,388 3,900,322 4,321,015
------------- ------------ ------------ ------------
EXPENSES:
Investment advisory fees
(Note 3)............... 259,710 401,992 171,778 198,206
Administration fees
(Note 3)............... 138,512 114,855 49,079 56,630
Custodian fees.......... 17,142 19,985 12,532 10,880
Transfer agent fees..... 65,205 27,199 16,369 17,671
Registration and filing
fees................... 48,625 34,816 7,432 15,328
Professional fees....... 3,518 2,666 1,076 1,304
Trustees' fees and
expenses............... 20,376 15,921 5,733 7,761
Printing costs.......... 29,779 21,738 4,697 7,568
Organization expenses
(Note 2)............... 282
Legal fees.............. 5,995 3,160 1,174 1,291
Accounting fees......... 60,122 53,079 24,260 28,076
Insurance............... 1,083 7,200 4,805 3,249
Audit fees.............. 22,346 22,157 19,541 19,940
Interest expense (Note
2).....................
Other expenses ......... 5,626 11,362 8,950 8,650
Expense previously
deferred (Note 3)......
------------- ------------ ------------ ------------
Gross Expenses......... 678,321 736,130 327,426 376,554
Custodian credits (Note
2)..................... (2,964) (3,908) (129) (2,218)
Expense subsidy (Note
3)..................... (155,937) (158,019) (81,898) (91,185)
------------- ------------ ------------ ------------
Net Expenses .......... 519,420 574,203 245,399 283,151
------------- ------------ ------------ ------------
Net Investment
Income............... 10,263,627 8,668,185 3,654,923 4,037,864
------------- ------------ ------------ ------------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains
(losses) from:
Investments............ (114,343) (401,591) (1,365,493)
Foreign currency
transactions..........
Futures, options and
swap contracts........ 132,899
Change in net unrealized
appreciation
(depreciation) from:
Investments............ 403,210 504,277 1,641,120
Translation of assets
and liabilities in
foreign currencies....
Futures, options and
swap contracts........ 53,486
------------- ------------ ------------ ------------
Net Realized and
Unrealized Gains
(Losses)............. -- 288,867 289,071 275,627
------------- ------------ ------------ ------------
CHANGE IN NET ASSETS
RESULTING FROM
OPERATIONS............. $ 10,263,627 $ 8,957,052 $ 3,943,994 $ 4,313,491
============= ============ ============ ============
</TABLE>
See notes to financial statements.
Paydenfunds
58
<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 Income Fund
============ ============ ============= ============ ============== ============ ============
<S> <C> <C> <C> <C> <C> <C>
$ 8,191,415 $ 8,838,980 $ 19,668,323 $ 10,931,692 $ 689,945 $ 1,511,286 $ 1,794,679
86,048 188,260
------------ ------------ ------------- ------------ ---------- ------------ ------------
8,191,415 8,838,980 19,754,371 11,119,952 689,945 1,511,286 1,794,679
------------ ------------ ------------- ------------ ---------- ------------ ------------
305,897 349,044 747,188 414,777 49,866 92,975 121,741
90,636 99,727 213,482 94,806 12,467 23,244 30,435
15,539 19,040 48,225 15,464 4,820 5,678 8,483
22,681 22,866 36,217 22,890 12,592 13,368 14,623
10,514 16,280 38,598 21,021 11,092 9,551 2,424
2,207 1,840 5,010 2,196 293 391 839
14,014 12,609 28,658 12,815 1,656 2,865 4,071
16,904 6,983 34,706 13,737 1,572 1,175 5,744
4,299 115 209
3,508 2,267 5,559 2,270 285 201 911
42,959 44,348 85,268 40,534 10,914 14,169 18,042
228 6,021 3,703 2,378 978 2,957 86
19,853 24,010 26,268 22,929 18,571 19,114 19,056
5,613
209 14,501 14,873 10,804 8,190 8,906 3,343
16,246 47,668
------------ ------------ ------------- ------------ ---------- ------------ ------------
549,448 635,782 1,335,538 676,830 133,296 200,207 229,798
(1,435) (803) (1,326) (1,201) (12) (949) (505)
(151,481) (9,469) (55,368) (48,441) (39,073)
------------ ------------ ------------- ------------ ---------- ------------ ------------
396,532 625,510 1,334,212 675,629 77,916 150,817 190,220
------------ ------------ ------------- ------------ ---------- ------------ ------------
7,794,883 8,213,470 18,420,159 10,444,323 612,029 1,360,469 1,604,459
------------ ------------ ------------- ------------ ---------- ------------ ------------
90,322 (8,337,295) (5,642,738) (6,122,437) (27,212) (404,790) (378,300)
926,114 906,050
(412,058) (2,845,743) (909) (891)
463,544 5,959,840 5,603,441 (4,125,658) 57,631 789,040 1,843,287
(1,027,136) (735,410)
73,861 77,981
------------ ------------ ------------- ------------ ---------- ------------ ------------
553,866 (2,715,652) (2,908,081) (10,077,455) 30,419 383,341 1,464,096
------------ ------------ ------------- ------------ ---------- ------------ ------------
$ 8,348,749 $ 5,497,818 $ 15,512,078 $ 366,868 $ 642,448 $ 1,743,810 $ 3,068,555
============ ============ ============= ============ ========== ============ ============
</TABLE>
See notes to financial statements.
Annual Report
59
<PAGE>
Statements of Changes in Net Assets
Periods ended October 31st
<TABLE>
<CAPTION>
Global Short Bond Fund Global Fixed Income Fund
========================== ============================
2000 1999 2000 1999
============ ============ ============= =============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 7,779,991 $ 9,440,509 $ 22,785,135 $ 23,349,737
Net realized gains
(losses) on
investments............ (1,519,559) 6,200,175 (6,816,420) 13,448,039
Change in net unrealized
appreciation
(depreciation)......... 4,033,166 (9,504,696) 16,197,582 (33,900,133)
------------ ------------ ------------- -------------
Change in Net Assets
Resulting from
Operations............ 10,293,598 6,135,988 32,166,297 2,897,643
------------ ------------ ------------- -------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (10,608,086) (22,986,447) (24,314,383) (39,581,035)
In excess of net
investment income...... (58,491)
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.......... (10,608,086) (23,439,291) (26,636,602) (55,745,238)
------------ ------------ ------------- -------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 29,554,112 44,614,473 236,029,853 156,632,130
Reinvestment of
distributions.......... 9,061,829 21,735,804 21,761,205 46,656,480
Cost of fund shares
redeemed............... (97,863,354) (87,062,835) (229,610,542) (185,403,513)
------------ ------------ ------------- -------------
Change in Net Assets
from Capital
Transactions.......... (59,247,413) (20,712,558) 28,180,516 17,885,097
------------ ------------ ------------- -------------
Total Change in Net
Assets............... (59,561,901) (38,015,861) 33,710,211 (34,962,498)
NET ASSETS:
Beginning of period..... 213,593,289 251,609,150 489,687,054 524,649,552
------------ ------------ ------------- -------------
End of period........... $154,031,388 $213,593,289 $ 523,397,265 $ 489,687,054
============ ============ ============= =============
Undistributed net
investment income...... $ 234,126 $ -- $ -- $ 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............. 3,105,670 4,499,156 23,936,175 15,150,934
Shares issued in
reinvestment of
distributions.......... 959,944 2,203,115 2,216,061 4,507,472
Shares redeemed......... (10,276,223) (8,853,367) (23,342,498) (18,076,833)
------------ ------------ ------------- -------------
Change in shares
outstanding............ (6,210,609) (2,151,096) 2,809,738 1,581,573
------------ ------------ ------------- -------------
Outstanding shares at
end of period.......... 16,050,958 22,261,567 52,491,652 49,681,914
============ ============ ============= =============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ $212,732,399 $ 549,874,654
Sale of investments
(excluding
government)............ 251,508,698 483,020,618
Purchase of government
securities............. 34,410,733 123,296,613
Sale of government
securities............. 41,600,290 76,263,129
</TABLE>
-------
(e) The Fund commenced operations on December 17, 1998.
See notes to financial statements.
Paydenfunds
60
<PAGE>
<TABLE>
<CAPTION>
Emerging Markets European Growth &
Bond Fund Global Balanced Fund Income Fund
=========================== ======================= ===========================
2000 1999 (e) 2000 1999 2000 1999
============ =========== =========== ========== ============= ============
<S> <C> <C> <C> <C> <C>
$ 2,398,466 $ 853,224 $ 258,642 $ 192,024 $ 236,890 $ 481,324
1,126,948 168,367 1,248,460 427,201 (3,365,346) (55,586)
(1,469,141) 236,216 (1,084,581) 528,449 (1,602,956) 3,066,188
------------ ----------- ----------- ---------- ------------- ------------
2,056,273 1,257,807 422,521 1,147,674 (4,731,412) 3,491,926
------------ ----------- ----------- ---------- ------------- ------------
(2,033,552) (761,750) (260,787) (180,190) (256,419)
(219,351) (720,684) (582,309) (1,354,410)
------------ ----------- ----------- ---------- ------------- ------------
(2,252,903) (761,750) (981,471) (582,309) (180,190) (1,610,829)
------------ ----------- ----------- ---------- ------------- ------------
47,173,198 10,085,455 1,467,552 988,788 112,433,479 58,376,985
2,170,412 761,750 980,148 581,773 147,859 1,527,824
(11,167,978) (60,065) (466,651) (589,586) (139,186,988) (63,071,435)
------------ ----------- ----------- ---------- ------------- ------------
38,175,632 10,787,140 1,981,049 980,975 (26,605,650) (3,166,626)
------------ ----------- ----------- ---------- ------------- ------------
37,979,002 11,283,197 1,422,099 1,546,340 (31,517,252) (1,285,529)
11,283,197 -- 8,624,188 7,077,848 38,243,143 39,528,672
------------ ----------- ----------- ---------- ------------- ------------
$ 49,262,199 $11,283,197 $10,046,287 $8,624,188 $ 6,725,891 $ 38,243,143
============ =========== =========== ========== ============= ============
$ 587,945 $ 91,474 $ (811) $ -- $ -- $ 204,533
============ =========== =========== ========== ============= ============
1,074,053 -- 740,112 652,676 3,206,515 3,447,862
------------ ----------- ----------- ---------- ------------- ------------
4,135,139 1,005,416 126,451 86,968 10,820,013 4,973,234
192,436 74,371 86,204 52,543 11,742 132,937
(980,530) (5,734) (39,916) (52,075) (13,204,259) (5,347,518)
------------ ----------- ----------- ---------- ------------- ------------
3,347,045 1,074,053 172,739 87,436 (2,372,504) (241,347)
------------ ----------- ----------- ---------- ------------- ------------
4,421,098 1,074,053 912,851 740,112 834,011 3,206,515
============ =========== =========== ========== ============= ============
$ 68,240,879 $ 5,921,646 $ 25,789,846
33,484,881 5,562,196 47,656,591
-- 2,114,016 --
-- 1,028,281 --
</TABLE>
See notes to financial statements.
Annual Report
61
<PAGE>
Statements of Changes in Net Assets continued
Periods ended October 31st
<TABLE>
<CAPTION>
European Aggressive World Target
Growth Fund Twenty Fund Growth & Income Fund
========================== ============ ===========================
2000 1999 (d) 2000 (a) 2000 1999
============= =========== ============ ============= ============
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ (192,686) $ 9,329 $ 12,386 $ 2,096,592 $ 3,272,207
Net realized gains
(losses) on
investments............ (1,690,785) (217,620) 28,914 50,116,475 7,980,305
Change in net unrealized
appreciation
(depreciation)......... (607,708) 1,293,188 (1,144,794) (52,133,821) 29,259,458
------------- ----------- ----------- ------------- ------------
Change in Net Assets
Resulting from
Operations............ (2,491,179) 1,084,897 (1,103,494) 79,246 40,511,970
------------- ----------- ----------- ------------- ------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (11,070) (2,149,256) (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............
Return of capital.......
------------- ----------- ----------- ------------- ------------
Change in Net Assets
from Distributions to
Shareholders.......... (11,070) -- -- (10,365,968) (8,982,656)
------------- ----------- ----------- ------------- ------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 302,443,135 9,932,243 9,903,297 21,709,132 57,522,734
Reinvestment of
distributions.......... 11,070 10,220,679 8,559,259
Cost of fund shares
redeemed............... (247,121,233) (829,949) (1,293,683) (186,357,438) (79,240,632)
------------- ----------- ----------- ------------- ------------
Change in Net Assets
from Capital
Transactions.......... 55,332,972 9,102,294 8,609,614 (154,427,627) (13,158,639)
------------- ----------- ----------- ------------- ------------
Total Change in Net
Assets............... 52,830,723 10,187,191 7,506,120 (164,714,349) 18,370,675
NET ASSETS:
Beginning of period..... 10,187,191 -- -- 268,923,604 250,552,929
------------- ----------- ----------- ------------- ------------
End of period........... $ 63,017,914 $10,187,191 $ 7,506,120 $ 104,209,255 $268,923,604
============= =========== =========== ============= ============
Undistributed net
investment income...... $ -- $ 27,960 $ -- $ (2,291) $ 34,800
============= =========== =========== ============= ============
FUND SHARES OF
BENEFICIAL INTEREST:
Outstanding shares at
beginning of period.... 903,035 -- -- 16,526,889 17,334,643
------------- ----------- ----------- ------------- ------------
Shares sold............. 14,866,547 980,755 1,037,877 1,384,597 3,609,543
Shares issued in
reinvestment of
distributions.......... 703 643,685 556,793
Shares redeemed......... (12,013,977) (77,720) (142,085) (11,879,665) (4,974,090)
------------- ----------- ----------- ------------- ------------
Change in shares
outstanding............ 2,853,273 903,035 895,792 (9,851,383) (807,754)
------------- ----------- ----------- ------------- ------------
Outstanding shares at
end of period.......... 3,756,308 903,035 895,792 6,675,506 16,526,889
============= =========== =========== ============= ============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ $ 89,419,314 $ 8,395,255 $ 117,588,947
Sale of investments
(excluding
government)............ 40,296,430 109,804 282,794,021
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.
See notes to financial statements.
Paydenfunds
62
<PAGE>
<TABLE>
<CAPTION>
U.S. Growth Small Cap Bunker Hill
Market Return Fund Leaders Fund Leaders Fund Money Market Fund
============================ ======================= ============ ===============================
2000 1999 2000 1999 (d) 2000 (b) 2000 1999
============ ============ =========== ========== ============ ================ =============
<S> <C> <C> <C> <C> <C> <C>
$ 5,216,999 $ 3,280,094 $ 118,794 $ 11,588 $ 94,264 $ 10,263,627 $ 2,544,689
1,676,377 10,786,888 366,386 36,303 1,212,607
(4,476,909) (2,133,998) 404,888 181,721 1,720,121
------------ ------------ ----------- ---------- ----------- ---------------- -------------
2,416,467 11,932,984 890,068 229,612 3,026,992 10,263,267 2,544,689
------------ ------------ ----------- ---------- ----------- ---------------- -------------
(5,211,493) (3,271,760) (47,811) (33,926) (10,263,627) (2,544,689)
(8,726,185) (2,497,257) (38,522)
------------ ------------ ----------- ---------- ----------- ---------------- -------------
(13,937,678) (5,769,017) (86,333) -- (33,926) (10,263,627) (2,544,689)
------------ ------------ ----------- ---------- ----------- ---------------- -------------
51,664,800 46,316,116 17,358,387 4,191,588 25,585,741 15,000,113,482 513,712,895
13,754,838 5,550,528 85,110 32,039 6,353,424 2,008,530
(77,836,431) (18,451,807) (3,707,175) (1,810) (7,753,596) (14,893,505,186) (454,208,380)
------------ ------------ ----------- ---------- ----------- ---------------- -------------
(12,416,793) 33,414,837 13,736,322 4,189,778 17,864,184 112,961,720 61,513,045
------------ ------------ ----------- ---------- ----------- ---------------- -------------
(23,938,004) 39,578,804 14,540,057 4,419,390 20,857,250 112,961,720 61,513,045
82,968,889 43,390,085 4,419,390 -- -- 87,968,245 26,455,200
------------ ------------ ----------- ---------- ----------- ---------------- -------------
$ 59,030,885 $ 82,968,889 $18,959,447 $4,419,390 $20,857,250 $ 200,929,965 $ 87,968,245
============ ============ =========== ========== =========== ================ =============
$ 67,161 $ 61,737 $ 82,571 $ 11,588 $ 60,338 $ -- $ --
============ ============ =========== ========== =========== ================ =============
5,554,485 3,260,654 419,668 -- -- 87,968,245 26,455,200
------------ ------------ ----------- ---------- ----------- ---------------- -------------
3,761,828 3,171,771 1,544,384 419,843 2,469,109 15,000,113,482 513,712,895
1,004,342 387,981 7,557 2,875 6,353,424 2,008,530
(5,786,469) (1,265,921) (311,950) (175) (678,485) (14,893,505,186) (454,208,380)
------------ ------------ ----------- ---------- ----------- ---------------- -------------
(1,020,299) 2,293,831 1,239,991 419,668 1,793,499 112,961,720 61,513,045
------------ ------------ ----------- ---------- ----------- ---------------- -------------
4,534,186 5,554,485 1,659,659 419,668 1,793,499 200,929,965 87,968,245
============ ============ =========== ========== =========== ================ =============
$ 61,607,107 $30,134,659 $37,952,957 --
53,143,668 21,752,451 22,577,712 --
7,483,594 -- -- --
12,836,641 -- -- --
</TABLE>
See notes to financial statements.
Annual Report
63
<PAGE>
Statements of Changes in Net Assets continued
Periods ended October 31st
<TABLE>
<CAPTION>
Limited Maturity Fund Short Bond Fund
============================ ==========================
2000 1999 2000 1999
============= ============= ============ ============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 8,668,185 $ 5,398,907 $ 3,654,923 $ 5,049,854
Net realized gains
(losses) on
investments............ (114,343) (359,163) (268,692) (1,454,870)
Change in net unrealized
appreciation
(depreciation)......... 403,210 (514,035) 557,763 (1,201,100)
------------- ------------- ------------ ------------
Change in Net Assets
Resulting from
Operations............ 8,957,052 4,525,709 3,943,994 2,393,884
------------- ------------- ------------ ------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (8,760,353) (5,441,361) (3,696,581) (5,011,359)
In excess of net
investment income......
Net realized gains from
investments............
In excess of net
realized gains from
investments............
Return of capital.......
------------- ------------- ------------ ------------
Change in Net Assets
from Distributions to
Shareholders.......... (8,760,353) (5,441,361) (3,696,581) (5,011,359)
------------- ------------- ------------ ------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 222,694,091 144,494,836 29,347,077 31,467,956
Reinvestment of
distributions.......... 8,747,970 5,469,745 3,673,476 5,002,779
Cost of fund shares
redeemed............... (150,635,095) (168,270,513) (20,870,459) (87,954,462)
------------- ------------- ------------ ------------
Change in Net Assets
from Capital
Transactions.......... 80,806,966 (18,305,932) 12,150,094 (51,483,727)
------------- ------------- ------------ ------------
Total Change in Net
Assets............... 81,003,665 (19,221,584) 12,397,507 (54,101,202)
NET ASSETS:
Beginning of period..... 97,820,210 117,041,794 54,559,305 108,660,507
------------- ------------- ------------ ------------
End of period........... $ 178,823,875 $ 97,820,210 $ 66,956,812 $ 54,559,305
============= ============= ============ ============
Undistributed net
investment income...... $ -- $ 63,638 $ -- $ 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............. 22,382,408 14,388,934 3,045,959 3,190,817
Shares issued in
reinvestment of
distributions.......... 879,320 545,762 381,636 511,160
Shares redeemed......... (15,128,107) (16,736,637) (2,163,207) (8,983,265)
------------- ------------- ------------ ------------
Change in shares
outstanding............ 8,133,621 (1,801,941) 1,264,388 (5,281,288)
------------- ------------- ------------ ------------
Outstanding shares at
end of period.......... 17,940,146 9,806,525 6,910,760 5,646,372
============= ============= ============ ============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ $ 136,579,017 $ 39,283,713
Sale of investments
(excluding
government)............ 39,493,312 34,323,304
Purchase of government
securities............. 83,950,654 79,697,770
Sale of government
securities............. 69,099,337 56,799,214
</TABLE>
-------
(c)The Fund commenced operations on August 27, 1999.
See notes to financial statements.
Paydenfunds
64
<PAGE>
<TABLE>
<CAPTION>
Investment Quality Bond
U.S. Government Fund GNMA Fund Fund
============================ ========================== ============================
2000 1999 2000 1999 (c) 2000 1999
============ ============ ============ ============ ============= =============
<S> <C> <C> <C> <C> <C>
$ 4,037,864 $ 3,966,853 $ 7,794,883 $ 877,846 $ 8,213,470 $ 13,465,648
(1,365,493) (413,912) 90,322 10,138 (8,749,353) (7,274,797)
1,641,120 (2,259,292) 463,544 677,793 6,033,701 (8,531,705)
------------ ------------ ------------ ------------ ------------- -------------
4,313,491 1,293,649 8,348,749 1,565,777 5,497,818 (2,340,854)
------------ ------------ ------------ ------------ ------------- -------------
(4,098,059) (3,984,817) (7,908,971) (763,758) (8,410,800) (12,902,117)
(140,994) (377,990) (28,230) (1,977,735)
------------ ------------ ------------ ------------ ------------- -------------
(4,239,053) (4,362,807) (7,937,201) (763,758) (8,410,800) (14,879,852)
------------ ------------ ------------ ------------ ------------- -------------
17,682,825 13,686,356 7,741,795 120,346,469 13,630,427 147,882,590
4,173,977 4,016,664 4,523,940 763,755 7,720,565 14,197,865
(26,032,936) (13,953,615) (20,436,106) (751,404) (136,422,619) (123,605,779)
------------ ------------ ------------ ------------ ------------- -------------
(4,176,134) 3,749,405 (8,170,371) 120,358,820 (115,071,627) 38,474,676
------------ ------------ ------------ ------------ ------------- -------------
(4,101,696) 680,247 (7,758,823) 121,160,839 (117,984,609) 21,253,970
72,535,413 71,855,166 121,160,839 -- 195,227,850 173,973,880
------------ ------------ ------------ ------------ ------------- -------------
$ 68,433,717 $ 72,535,413 $113,402,016 $121,160,839 $ 77,243,241 $ 195,227,850
============ ============ ============ ============ ============= =============
$ -- $ 56,192 $ -- $ 114,088 $ 53,469 $ 255,501
============ ============ ============ ============ ============= =============
6,939,416 6,592,251 11,988,106 -- 20,682,385 17,111,232
------------ ------------ ------------ ------------ ------------- -------------
1,703,956 1,282,269 766,690 11,986,472 1,465,192 14,689,513
402,722 378,358 452,438 75,957 837,049 1,450,850
(2,510,834) (1,313,462) (2,035,369) (74,323) (14,682,994) (12,569,210)
------------ ------------ ------------ ------------ ------------- -------------
(404,156) 347,165 (816,241) 11,988,106 (12,380,753) 3,571,153
------------ ------------ ------------ ------------ ------------- -------------
6,535,260 6,939,416 11,171,865 11,988,106 8,301,632 20,682,385
============ ============ ============ ============ ============= =============
$ 31,913,033 $110,121,599 $ 105,129,248
30,329,283 39,113,192 176,996,021
76,483,403 9,428,672 70,713,111
55,886,250 9,502,070 84,460,350
</TABLE>
See notes to financial statements.
Annual Report
65
<PAGE>
Statements of Changes in Net Assets continued
Periods ended October 31st
<TABLE>
<CAPTION>
Total Return Fund High Income Fund
=========================== ==========================
2000 1999 2000 1999
============= ============ ============ ============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment income... $ 18,420,159 $ 11,195,013 $ 10,444,323 $ 8,805,546
Net realized gains
(losses) on
investments............ (7,562,367) (2,335,600) (5,216,387) (2,963,916)
Change in net unrealized
appreciation
(depreciation)......... 4,654,286 (8,866,525) (4,861,068) (1,130,820)
------------- ------------ ------------ ------------
Change in Net Assets
Resulting from
Operations............ 15,512,078 (7,112) 366,868 4,710,810
------------- ------------ ------------ ------------
FROM DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income... (19,495,157) (11,250,903) (10,560,974) (8,763,462)
In excess of net
investment income......
Net realized gains from
investments............ (810,667)
In excess of net
realized gains from
investments............
Return of capital.......
------------- ------------ ------------ ------------
Change in Net Assets
from Distributions to
Shareholders.......... (19,495,157) (12,061,570) (10,560,974) (8,763,462)
------------- ------------ ------------ ------------
FROM CAPITAL
TRANSACTIONS:
Proceeds from fund
shares sold............ 132,497,778 143,194,483 57,944,080 57,185,303
Reinvestment of
distributions.......... 18,711,041 11,645,326 9,941,083 7,945,379
Cost of fund shares
redeemed............... (67,416,158) (86,942,800) (27,497,448) (43,449,500)
------------- ------------ ------------ ------------
Change in Net Assets
from Capital
Transactions.......... 83,792,661 67,897,009 40,387,715 21,681,182
------------- ------------ ------------ ------------
Total Change in Net
Assets............... 79,809,582 55,828,327 30,193,609 17,628,530
NET ASSETS:
Beginning of period..... 230,440,482 174,612,155 109,297,340 91,668,810
------------- ------------ ------------ ------------
End of period........... $ 310,250,064 $230,440,482 $139,490,949 $109,297,340
============= ============ ============ ============
Undistributed net
investment income...... $ 284,455 $ 367,411 $ 1,761,890 $ 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............. 13,959,408 14,364,438 6,288,729 5,667,182
Shares issued in
reinvestment of
distributions.......... 1,976,309 1,165,260 1,086,712 809,820
Shares redeemed......... (7,092,021) (8,770,363) (2,937,437) (4,376,283)
------------- ------------ ------------ ------------
Change in shares
outstanding............ 8,843,696 6,759,335 4,438,004 2,100,719
------------- ------------ ------------ ------------
Outstanding shares at
end of period.......... 32,668,246 23,824,550 15,921,162 11,483,158
============= ============ ============ ============
LONG TERM INVESTMENT
ACTIVITY:
Purchase of investments
(excluding
government)............ $ 311,689,418 $125,076,694
Sale of investments
(excluding
government)............ 229,708,330 87.202,217
Purchase of government
securities............. 147,533,511 9,394,057
Sale of government
securities............. 105,955,478 7,434,389
</TABLE>
-------
(e) The Fund commenced operations on December 17, 1998.
See notes to financial statements.
Paydenfunds
66
<PAGE>
<TABLE>
<CAPTION>
Short Duration California Municipal
Tax Exempt Fund Tax Exempt Bond Fund Income Fund
=========================== ========================== =========================
2000 1999 2000 1999 2000 1999 (e)
============ =========== ============ ============ ============ ===========
<S> <C> <C> <C> <C> <C>
$ 612,029 $ 576,474 $ 1,360,469 $ 2,528,624 $ 1,604,459 $ 710,925
(27,212) 31,667 (405,699) 238,542 (379,191) (147,769)
57,631 (258,573) 789,040 (3,114,694) 1,843,287 (1,081,713)
------------ ----------- ------------ ------------ ------------ -----------
642,448 349,568 1,743,810 (347,528) 3,068,555 (518,557)
------------ ----------- ------------ ------------ ------------ -----------
(619,551) (582,247) (1,389,848) (2,553,254) (1,623,671) (697,611)
(31,698) (139,540)
------------ ----------- ------------ ------------ ------------ -----------
(651,249) (721,787) (1,389,848) (2,553,254) (1,623,671) (697,611)
------------ ----------- ------------ ------------ ------------ -----------
10,029,458 4,069,845 7,820,366 12,014,744 36,203,965 35,367,478
563,749 698,143 1,097,044 2,193,300 1,246,761 597,877
(12,268,114) (6,159,617) (30,966,640) (32,743,759) (32,792,775) (6,059,655)
------------ ----------- ------------ ------------ ------------ -----------
(1,674,907) (1,391,629) (22,049,230) (18,535,715) 4,657,951 29,905,700
------------ ----------- ------------ ------------ ------------ -----------
(1,683,708) (1,763,848) (21,695,268) (21,436,497) 6,102,835 28,689,532
15,060,727 16,824,575 46,452,403 67,888,900 28,689,532 --
------------ ----------- ------------ ------------ ------------ -----------
$ 13,377,019 $15,060,727 $ 24,757,135 $ 46,452,403 $ 34,792,367 $28,689,532
============ =========== ============ ============ ============ ===========
$ -- $ 5,871 $ -- $ 27,472 $ (2,013) $ 13,314
============ =========== ============ ============ ============ ===========
1,526,147 1,664,941 4,924,057 6,843,864 2,981,497 --
------------ ----------- ------------ ------------ ------------ -----------
1,020,892 407,302 845,548 1,209,554 3,750,003 3,529,282
57,374 70,048 116,332 225,048 127,805 60,777
(1,248,410) (616,144) (3,301,449) (3,354,409) (3,355,946) (608,562)
------------ ----------- ------------ ------------ ------------ -----------
(170,144) (138,794) (2,339,569) (1,919,807) 521,862 2,981,497
------------ ----------- ------------ ------------ ------------ -----------
1,356,003 1,526,147 2,584,488 4,924,057 3,503,359 2,981,497
============ =========== ============ ============ ============ ===========
$ 10,881,787 $ 17,878,549 $ 41,913,426
12,771,124 40,484,533 36,000,297
-- -- --
-- -- --
</TABLE>
See notes to financial statements.
Annual Report
67
<PAGE>
Notes to Financial Statements
October 31, 2000
1. Organization and Related Matters
The Payden & Rygel Investment Group (the "Group" or "Paydenfunds") 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.
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. Such quotations 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
using other fixed income securities with a comparable level of risk, and for
which the prices are more readily obtainable. 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. All other securities are appraised at their fair value as
determined in good faith under procedures established by the Board of Trustees.
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. 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.
Premiums and discounts are generally amortized or accreted for both financial
statement and tax reporting purposes as required by Federal income tax
regulations. Dividend income is recorded on the ex-dividend date. Realized
gains or losses on investment transactions are determined on the identified
cost basis.
Foreign Currency Translation
The accounting records of the Funds are maintained in U.S. dollars. Each of the
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 and
expense are
Paydenfunds
68
<PAGE>
October 31, 2000
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 appreciation/depreciation
from translation of assets and liabilities in foreign securities arises 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, except for tri- party agreements
where an independent custodian takes possession. On a daily basis the Funds
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 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
Annual Report
69
<PAGE>
Notes to Financial Statements continued
October 31, 2000
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 an agreement pursuant to which two parties agree
to take or make delivery of an amount of cash equal to the difference between
the value of the index at the close of the last trading day of the contract and
the price at which the index contract was originally written. Variation margin
accounting procedures apply to these index futures contracts. Each Fund invests
in these futures contracts to permit the Fund to meet its objectives at a lower
cost than investing directly in equity securities, while permitting the
equivalent of an investment in a portfolio of equity securities. The potential
risk to a Fund is that the change in value of the underlying index may not
correlate to the change in value of the contracts.
Swap Contracts
Any Fund (except 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
notional principal amount. A Fund will typically pay a floating rate of
interest and receive the total return of a specified rate or index. A Fund
usually enters into such transactions on a "net" basis, with the Fund receiving
or paying, as the case may be, only the net amounts of the two payment streams.
The net amount of the receivable/payable if any 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 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.
Paydenfunds
70
<PAGE>
October 31, 2000
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
underlying 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.
The following Funds earned a fee for entering into dollar roll agreements. The
amounts below are included in interest income in the statement of operations.
<TABLE>
<S> <C>
Short Bond Fund....................................................... $ 15,768
U.S. Government Fund.................................................. 81,005
GNMA Fund............................................................. 523,064
Investment Quality Bond Fund.......................................... 556,303
Total Return Fund..................................................... 971,888
</TABLE>
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 accounting principles generally accepted in
the United States of America ("generally accepted accounting principles.")
Federal Income Taxes
It is the policy of each Fund to meet the requirements for qualification as a
regulated investment company as defined in applicable sections of the Internal
Revenue Code (the "Code"), and to make distributions of net investment income
and net realized gains sufficient to relieve it from all Federal income or
excise taxes. Accordingly, no provision for Federal income or excise tax is
necessary.
Each Fund files a tax return annually using tax accounting methods required
under provisions of the Code, which may differ from generally accepted
accounting principles, the basis on which these financial statements are
prepared. The differences arise primarily from the treatment of foreign
currency transactions and futures contracts and the deferral of certain losses
under Federal income tax regulations. Accordingly, the amounts of net
investment income and net realized gains or losses reported in these financial
statements may differ from those reported in each Fund's tax return and,
consequently, the character of distributions to shareholders reported in the
financial highlights may differ from that reported to shareholders for Federal
income tax purposes.
Distributions which exceed net investment income and net realized gains for
financial reporting purposes but not for tax purposes, if any, are shown as
distributions in excess of net investment income and net realized gains in the
accompanying
Annual Report
71
<PAGE>
Notes to Financial Statements continued
October 31, 2000
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.
Affiliated Investment
Each of the Funds below invests in the Bunker Hill Money Market Fund, an
affiliated Fund. Interest earned for the period ended October 31, 2000 is shown
below and included in interest income in the statement of operations.
<TABLE>
<S> <C>
Global Short Bond Fund................................................ $115,628
Global Fixed Income Fund.............................................. 377,819
Emerging Markets Bond Fund............................................ 109,806
Global Balanced Fund.................................................. 86,474
European Growth & Income Fund......................................... 75,134
European Aggressive Growth Fund....................................... 315,457
World Target Twenty Fund.............................................. 56,476
Growth & Income Fund.................................................. 106,328
Market Return Fund.................................................... 264,575
U.S. Growth Leaders Fund.............................................. 170,375
Small Cap Leaders Fund................................................ 101,608
Limited Maturity Fund................................................. 347,253
Short Bond Fund....................................................... 176,394
U.S. Government Fund.................................................. 69,909
GNMA Fund............................................................. 76,192
Investment Quality Bond Fund.......................................... 189,565
Total Return Fund..................................................... 217,894
High Income Fund...................................................... 315,688
</TABLE>
Custodian Credits
The funds have entered into an agreement with the custodian, whereby it earns
custodian fee credits for temporary cash balances. These credits, which offset
custodian fees that may be charged to the Funds, are based on 75% of the daily
effective federal funds rate.
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
Paydenfunds
72
<PAGE>
October 31, 2000
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 1.20% on all net assets.
Payden & Rygel has agreed to guarantee that, for as long as it acts as
investment adviser to the Funds, the expenses of the Funds, including advisory
fees (exclusive of interest and taxes) will not exceed the percentages
indicated below of that Fund's average daily net assets on an annualized basis.
On March 1, 2000 the advisor eliminated the 0.95% voluntary expense limit for
the European Aggressive Growth Fund. 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
and taxes).
Each Fund remains liable to Payden & Rygel for expenses subsidized in any
fiscal year as 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. They are not recorded as liabilities in
the statement of assets and liabilities, but will be recognized as net expense
in the statements of operations as expense previously deferred in future
periods, if expense limits permit.
<TABLE>
<CAPTION>
Cumulative
Expense Voluntary Deferred
Guarantee Expense Limit Expense Subsidy
--------- ------------- ---------------
<S> <C> <C> <C>
Global Short Bond Fund 0.70% 0.50% $ 406,251
Global Fixed Income Fund 0.70% n/a --
Emerging Markets Bond Fund 1.25% 0.80% 55,773
Global Balanced Fund 0.85% 0.70% 293,349
European Growth & Income Fund 0.90% n/a 259,471
European Aggressive Growth Fund 1.05% n/a 156,700
World Target Twenty 1.40% 1.15% 86,412
Growth & Income Fund 0.80% 0.75% 166,513
Market Return Fund 0.60% 0.45% 381,957
U.S. Growth Leaders Fund 1.00% 0.80% 98,434
Small Cap Leaders Fund 1.00% 0.80% 62,504
Bunker Hill Money Market Fund 0.50% 0.30% 286,055
Limited Maturity Fund 0.60% 0.40% 1,032,005
Short Bond Fund 0.60% 0.40% 656,507
U.S. Government Fund 0.60% 0.40% 434,829
GNMA Fund 0.50% 0.35% 234,468
Investment Quality Bond Fund 0.60% 0.50% 346,117
Total Return Fund 0.60% 0.50% 35,662
High Income Fund 0.75% 0.60% --
Short Duration Tax Exempt Fund 0.60% 0.50% 415,100
Tax Exempt Bond Fund 0.60% 0.50% 483,513
California Municipal Income Fund 0.80% 0.50% 45,547
</TABLE>
Annual Report
73
<PAGE>
Notes to Financial Statements continued
October 31, 2000
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 a distribution agreement with the Group, Payden & Rygel Distributors is
not entitled to receive any distribution fees from the Group.
On September 15, 2000 the Emerging Markets Bond, Global Balanced, European
Growth & Income, European Aggressive, World Target Twenty, Growth & Income,
Market Return, U.S. Growth Leader, Small Cap Leaders and High Income Funds
implemented a redemption fee payable to the Distributor and equal to 1% of the
value of shares redeemed if the shares are held less than 60 days.
Certain officers and/or trustees of the Group are affiliated with Payden &
Rygel, Payden & Rygel Distributors and/or Treasury Plus, Inc. Such officers and
trustees receive no fees from the Funds for serving as officers and/or trustees
of the Group.
4. Federal Income Taxes
At October 31, 2000, the following Funds had capital loss carryforwards in the
amounts indicated for Federal income tax purposes. These carryforwards are
available to offset future capital gains, if any.
<TABLE>
<CAPTION>
Capital Loss Carryforwards
-----------------------------------------------------------------------------
Expiring Expiring Expiring Expiring Expiring Expiring Expiring
2002 2003 2004 2005 2006 2007 2008 Total
-------- -------- -------- -------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Global Short Bond Fund 37,169 3,854,157 212,166 4,604,772 8,708,264
Global Fixed Income Fund 7,991,404 7,991,404
European Aggressive
Growth Fund 236,251 1,025,839 1,262,090
Market Return Fund 3,257,279 3,257,279
Limited Maturity Fund 1,971 64,303 61,717 38,977 317,490 144,488 628,946
Short Bond Fund 341,923 6,293 195,694 1,196,264 313,253 2,053,427
U.S. Government Fund 1,894,946 1,894,946
Investment Quality Bond
Fund 5,069,875 10,140,332 15,210,207
Total Return Fund 3,006,874 9,654,162 12,661,036
High Income Fund 1,053,468 2,732,436 6,312,035 10,097,939
Short Duration Tax
Exempt Fund 27,212 27,212
Tax Exempt Bond Fund 521,295 92,036 460,399 405,699 1,479,429
California Municipal
Income Fund 147,769 379,191 526,960
</TABLE>
Paydenfunds
74
<PAGE>
October 31, 2000
5. Line of Credit
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
$60 million. The following funds took loans during the year ended October 31,
2000. No Fund had a loan outstanding at year end.
<TABLE>
<CAPTION>
Maximum Average Daily Wtd. # of
Amount Outstanding Average Days
Borrowed Balance Rate Borrowed
---------- ----------- ---------- --------
<S> <C> <C> <C> <C>
Tax Exempt Bond $7,250,000 $5,307,000 5.58% 7
European Aggressive Growth 5,700,000 3,577,000 6.23 13
European Growth & Income 5,800,000 3,201,000 6.70 33
Growth & Income 4,000,000 3,725,000 6.85 4
</TABLE>
6. Distribution
The Growth & Income Fund declared a capital gain dividend of $3.08 per share to
shareholders of record on October 31, 2000, with an ex-date of November 1, 2000
and pay date of November 2, 2000.
7. Fund Termination
On November 16, 2000 the Board of Trustees approved the closing of the Payden &
Rygel European Growth and Income Fund, which is anticipated to occur December
22, 2000, at which time all portfolio holdings will be liquidated and
transferred to other Paydenfunds or paid in cash.
8. Exempt Interest Income Designation (Unaudited)
<TABLE>
<CAPTION>
Exempt-Interest
Exempt-Interest Dividends
Dividends Per Share
--------------- ---------------
<S> <C> <C>
Short Duration Tax Exempt Fund $ 619,551 $0.39
Tax Exempt Bond Fund 1,389,848 0.45
California Municipal Income Fund 1,623,671 0.40
</TABLE>
Annual Report
75
<PAGE>
Financial Highlights
(For a share outstanding during the period ended October 31st)
<TABLE>
<CAPTION>
Global Short Bond Fund
===============================================
1996
2000 1999 1998 1997 (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........ 0.55 0.67 0.92 0.58 0.05
Net realized and unrealized
gains (losses).............. (0.41) (0.15) 0.11 0.06
-------- -------- -------- -------- -------
Total from investment
activities................. 0.55 0.26 0.77 0.69 0.11
-------- -------- -------- -------- -------
Distributions to shareholders:
From net investment income... (0.54) (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................ (0.54) (0.98) (0.63) (0.59) (0.04)
-------- -------- -------- -------- -------
Net asset value -- end of
period....................... $ 9.60 $ 9.59 $ 10.31 $ 10.17 $ 10.07
======== ======== ======== ======== =======
Total return *.............. 5.93% 2.57% 7.87% 7.02% 1.10%
======== ======== ======== ======== =======
Ratios/supplemental data:
Net assets, end of period
(000s)...................... $154,031 $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 net investment
income to average net assets
(1) **...................... 4.16% 3.89% 4.31% 4.76% 3.00%
Ratio of net investment
income to average net assets
**.......................... 4.19% 3.90% 4.38% 4.84% 4.86%
Portfolio turnover rate **... 143% 175% 245% 219% 0%
</TABLE>
-------
The Funds commenced operations on the following dates:
(a) September 18, 1996
* Not annualized for periods less than 1 year
** Annualized for periods less than 1 year
(1) Excluding expense reductions
See notes to financial statements.
Paydenfunds
76
<PAGE>
<TABLE>
<CAPTION>
Global Fixed Income Fund
======================================================================================
2000 1999 1998 1997 1996
========= ======== ======== ======== ========
<S> <C> <C> <C> <C>
$ 9.86 $ 10.91 $ 10.16 $ 10.35 $ 10.32
--------- -------- -------- -------- --------
0.49 0.76 0.45 1.03 0.54
0.16 (0.69) 0.72 (0.16) 0.19
--------- -------- -------- -------- --------
0.65 0.07 1.17 0.87 0.73
--------- -------- -------- -------- --------
(0.50) (0.79) (0.42) (1.06) (0.70)
(0.04) (0.33)
--------- -------- -------- -------- --------
(0.54) (1.12) (0.42) (1.06) (0.70)
--------- -------- -------- -------- --------
$ 9.97 $ 9.86 $ 10.91 $ 10.16 $ 10.35
========= ======== ======== ======== ========
6.96% 0.56% 11.81% 8.84% 7.41%
========= ======== ======== ======== ========
$ 523,397 $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%
4.68% 4.48% 5.13% 5.69% 5.67%
4.68% 4.48% 5.13% 5.69% 5.67%
131% 104% 223% 289% 176%
</TABLE>
See notes to financial statements.
Annual Report
77
<PAGE>
Portfolio Highlights & Investments
(For a share outstanding during the period ended October 31st)
<TABLE>
<CAPTION>
Emerging Market Global
Bond Fund Balanced Fund
================ ===============
1999
2000 (i) 2000 1999
======= ======= ======= ======
<S> <C> <C> <C> <C>
Net asset value -- beginning of period...... $ 10.51 $10.00 $ 11.65 $10.84
------- ------- ------- ------
Income (loss) from investment activities:
Net investment income...................... 1.05 0.83 0.30 0.02
Net realized and unrealized gains
(losses).................................. 0.79 0.43 0.31 1.65
------- ------- ------- ------
Total from investment activities.......... 1.84 1.26 0.61 1.67
------- ------- ------- ------
Distributions to shareholders:
From net investment income................. (1.00) (0.75) (0.30)
In excess of net investment income.........
From net realized gains.................... (0.21) (0.95) (0.86)
Return of capital..........................
------- ------- ------- ------
Total distributions to shareholders........ (1.21) (0.75) (1.25) (0.86)
------- ------- ------- ------
Net asset value -- end of period............ $ 11.14 $ 10.51 $ 11.01 $11.65
======= ======= ======= ======
Total return*............................. 18.13% 12.92% 4.08% 15.85%
======= ======= ======= ======
Ratios/supplemental data:
Net assets, end of period (000s)........... $49,262 $11,283 $10,046 $8,624
Ratio of gross expense to average net
assets**.................................. 0.94% 1.35% 1.46% 1.56%
Ratio of net expense to average net
assets**.................................. 0.80% 0.80% 0.70% 0.70%
Ratio of net investment income to average
net assets (1) **......................... 9.42% 9.36% 1.87% 1.53%
Ratio of net investment income to average
net assets**.............................. 9.56% 9.91% 2.63% 2.39%
Portfolio turnover rate**.................. 146% 225% 82% 60%
</TABLE>
-------
The Funds commenced operations on the following dates:
(b) December 9, 1996
(c) June 30, 1997
(i) December 17, 1998
* Not annualized for periods less than 1 year
** Annualized for periods less than 1 year
(1) Excluding expense reductions
See notes to financial statements.
Paydenfunds
78
<PAGE>
<TABLE>
<CAPTION>
Global Balanced European Growth &
Fund Income Fund
==================== ========================================================
1997 1997
1998 (b) 2000 1999 1998 (c)
====== ======= ======= ======= ======= =======
<S> <C> <C> <C> <C> <C>
$10.79 $ 10.00 $ 11.93 $ 11.46 $ 10.19 $ 10.00
0.20 0.05 0.15 0.17 (0.04)
0.63 0.90 (3.81) 0.81 1.28 0.23
------ ------- ------- ------- ------- -------
0.83 0.95 (3.81) 0.96 1.45 0.19
------ ------- ------- ------- ------- -------
(0.17) (0.05) (0.06) (0.09) (0.17)
(0.61) (0.11) (0.40) (0.01)
------ ------- ------- ------- ------- -------
(0.78) (0.16) (0.06) (0.49) (0.18) 0.00
------ ------- ------- ------- ------- -------
$10.84 $ 10.79 $ 8.06 $ 11.93 $ 11.46 $ 10.19
====== ======= ======= ======= ======= =======
8.21% 9.49% (32.13)% 8.39% 14.31% 1.90%
====== ======= ======= ======= ======= =======
$7,078 $10,312 $ 6,726 $38,243 $39,529 $13,608
1.43% 1.64% 1.20% 0.96% 1.20% 2.48%
0.69% 0.70% 0.98% 0.90% 0.69% 0.69%
2.37% 2.38% 0.76% 1.19% 2.26% (0.07)%
3.11% 3.32% 0.98% 1.25% 2.77% 1.72%
156% 211% 118% 89% 34% 9%
</TABLE>
See notes to financial statements.
Annual Report
79
<PAGE>
Financial Highlights continued
(For a share outstanding during the period ended October 31st)
<TABLE>
<CAPTION>
European Aggressive World Target Growth & Income
Growth Fund Twenty Fund Fund
===================== ============ ==================
2000 1999 (j) 2000 (m) 2000 1999
========= ========= ============ ======== ========
<S> <C> <C> <C> <C> <C>
Net asset value --
beginning of period... $ 11.28 $ 10.00 $ 10.00 $ 16.27 $ 14.45
--------- --------- ------- -------- --------
Income (loss) from
investment activities:
Net investment income.. (0.02) 0.03 0.21 0.19
Net realized and
unrealized gains
(losses).............. 5.53 1.25 (1.62) (0.14) 2.15
--------- --------- ------- -------- --------
Total from investment
activities........... 5.51 1.28 (1.62) 0.07 2.34
--------- --------- ------- -------- --------
Distributions to
shareholders:
From net investment
income................ (0.01) (0.21) (0.19)
In excess of net
investment income.....
From net realized
gains................. (0.52) (0.33)
Return of capital......
--------- --------- ------- -------- --------
Total distributions to
shareholders.......... (0.01) 0.00 0.00 (0.73) (0.52)
--------- --------- ------- -------- --------
Net asset value -- end
of period.............. $ 16.78 $ 11.28 $ 8.38 $ 15.61 $ 16.27
========= ========= ======= ======== ========
Total return *........ 48.83% 12.80% (16.22)% 0.47% 16.47%
========= ========= ======= ======== ========
Ratios/supplemental
data:
Net assets, end of
period (000s)......... $63,018 $ 10,187 $ 7,506 $104,209 $268,924
Ratio of gross expense
to average net assets
**.................... 1.22% 2.89% 2.92% 0.79% 0.75%
Ratio of net expense to
average net assets
**.................... 1.05% 0.95% 1.15% 0.75% 0.75%
Ratio of net investment
income to average net
assets (1) **......... (0.48)% (1.63)% (1.52)% 1.25% 1.19%
Ratio of net investment
income to average net
assets **............. (0.31)% 0.31% 0.25% 1.29% 1.19%
Portfolio turnover rate
**.................... 73% 18% 3% 72% 5%
</TABLE>
-------
The Funds commenced operations on the following dates:
(d) November 1, 1996 (j) June 17, 1999
(e) December 1, 1995 (m) March 31, 2000
* Not annualized for periods less than 1 year
** Annualized for periods less than 1 year
(1) Excluding expense reductions
See notes to financial statements.
Paydenfunds
80
<PAGE>
<TABLE>
<CAPTION>
Growth & Income
Fund Market Return Fund
==================== ============================================================
1996
1998 1997 (d) 2000 1999 1998 1997 (e)
======== ======== ======= ======= ======= ======= ======
<S> <C> <C> <C> <C> <C> <C>
$ 12.77 $ 10.00 $ 14.94 $ 13.31 $ 12.80 $ 10.86 $10.00
-------- -------- ------- ------- ------- ------- ------
0.21 0.17 0.84 0.76 0.73 0.63 0.50
1.71 2.74 (0.38) 2.37 1.46 2.64 0.86
-------- -------- ------- ------- ------- ------- ------
1.92 2.91 0.46 3.13 2.19 3.27 1.36
-------- -------- ------- ------- ------- ------- ------
(0.24) (0.14) (0.84) (0.77) (0.71) (0.63) (0.50)
(1.54) (0.73) (0.97) (0.70)
-------- -------- ------- ------- ------- ------- ------
(0.24) (0.14) (2.38) (1.50) (1.68) (1.33) (0.50)
-------- -------- ------- ------- ------- ------- ------
$ 14.45 $ 12.77 $ 13.02 $ 14.94 $ 13.31 $ 12.80 $10.86
======== ======== ======= ======= ======= ======= ======
15.15% 29.19% 3.15% 24.41% 18.48% 31.74% 14.06%
======== ======== ======= ======= ======= ======= ======
$250,553 $150,944 $59,031 $82,969 $43,390 $20,195 $5,789
0.77% 0.89% 0.53% 0.53% 0.69% 0.96% 4.14%
0.54% 0.54% 0.45% 0.45% 0.45% 0.45% 0.00%
1.32% 1.25% 5.75% 5.29% 5.45% 4.85% 1.81%
1.55% 1.60% 5.83% 5.37% 5.69% 5.36% 5.95%
10% 2% 96% 113% 48% 140% 146%
</TABLE>
See notes to financial statements.
Annual Report
81
<PAGE>
Financial Highlights continued
(For a share outstanding during the period ended October 31st)
<TABLE>
<CAPTION>
U.S. Growth Small Cap
Leaders Fund Leaders Fund
=================== ============
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 0.05
Net realized and unrealized gains
(losses).................................. 0.95 0.50 1.60
--------- -------- --------
Total from investment activities......... 1.02 0.53 1.65
--------- -------- --------
Distributions to shareholders:
From net investment income................. (0.05) (0.02)
In excess of net investment income.........
From net realized gains.................... (0.08)
--------- -------- --------
Total distributions to shareholders...... (0.13) 0.00 (0.02)
--------- -------- --------
Net asset value -- end of period............ $ 11.42 $ 10.53 $ 11.63
========= ======== ========
Total return*............................... 9.75% 5.30% 16.48%
========= ======== ========
Ratios/supplemental data:
Net assets, end of period (000)............ $ 18,959 $ 4,419 $ 20,857
Ratio of gross expense to average net
assets**.................................. 1.23% 4.61% 1.14%
Ratio of net expense to average net
assets**.................................. 0.80% 0.80% 0.80%
Ratio of net investment income to average
net assets (1) **......................... 0.52% (2.84)% 0.17%
Ratio of net investment income to average
net assets**.............................. 0.95% 0.97% 0.51%
Portfolio turnover rate**.................. 229% 241% 138%
</TABLE>
-------
The Funds commenced operations on the following dates:
(g) December 17, 1997
(j) June 17, 1999
* Not annualized for periods less than 1 year
** Annualized for periods less than 1 year
(1) Excluding expense reductions
See notes to financial statements.
Paydenfunds
82
<PAGE>
<TABLE>
<CAPTION>
Bunker Hill
Money Market Fund Limited Maturity Fund
============================ ==============================================
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
-------- ------- ------- -------- ------- -------- -------- -------
0.06 0.05 0.05 0.59 0.56 0.56 0.54 0.53
(0.09) 0.02
-------- ------- ------- -------- ------- -------- -------- -------
0.06 0.05 0.05 0.59 0.47 0.58 0.54 0.53
-------- ------- ------- -------- ------- -------- -------- -------
(0.06) (0.05) (0.05) (0.60) (0.57) (0.56) (0.54) (0.53)
-------- ------- ------- -------- ------- -------- -------- -------
(0.06) (0.05) (0.05) (0.60) (0.57) (0.56) (0.54) (0.53)
-------- ------- ------- -------- ------- -------- -------- -------
$ 1.00 $ 1.00 $ 1.00 $ 9.97 $ 9.98 $ 10.08 $ 10.06 $ 10.06
======== ======= ======= ======== ======= ======== ======== =======
6.06% 4.97% 4.65% 6.24% 4.71% 5.87% 5.46% 5.41%
======== ======= ======= ======== ======= ======== ======== =======
$200,930 $87,968 $26,455 $178,824 $97,820 $117,042 $152,429 $50,771
0.39% 0.41% 0.71% 0.51% 0.50% 0.47% 0.52% 0.62%
0.30% 0.30% 0.29% 0.40% 0.38% 0.29% 0.30% 0.30%
5.84% 4.72% 4.81% 5.93% 5.44% 5.40% 5.30% 5.13%
5.93% 4.83% 5.23% 6.04% 5.56% 5.58% 5.52% 5.45%
n/a n/a n/a 103% 60% 91% 135% 217%
</TABLE>
See notes to financial statements.
Annual Report
83
<PAGE>
Financial Highlights continued
(For a share outstanding during the period ended October 31st)
<TABLE>
<CAPTION>
Short Bond Fund
============================================
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........... 0.59 0.56 0.63 0.58 0.54
Net realized and unrealized
gains (losses)................. 0.03 (0.28) 0.02 (0.05) (0.06)
------- ------- -------- ------- -------
Total from investment
activities.................... 0.62 0.28 0.65 0.53 0.48
------- ------- -------- ------- -------
Distributions to shareholders:
From net investment income...... (0.59) (0.56) (0.63) (0.58) (0.54)
In excess of net investment
income.........................
From net realized gains......... (0.01)
Return of capital...............
------- ------- -------- ------- -------
Total distributions to
shareholders.................. (0.59) (0.56) (0.63) (0.58) (0.55)
------- ------- -------- ------- -------
Net asset value -- end of
period.......................... $ 9.69 $ 9.66 $ 9.94 $ 9.92 $ 9.97
======= ======= ======== ======= =======
Total return *................... 6.61% 2.89% 6.80% 5.52% 4.86%
======= ======= ======== ======= =======
Ratios/supplemental data:
Net assets, end of period
(000).......................... $66,957 $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 net investment income
to average net assets (1)**.... 5.83% 5.58% 5.84% 5.91% 5.50%
Ratio of net investment income
to average net assets **....... 5.96% 5.68% 6.04% 6.00% 5.67%
Portfolio turnover rate **...... 171% 171% 596% 208% 212%
</TABLE>
-------
* Not annualized for periods less than 1 year
** Annualized for periods less than 1 year
(1) Excluding expense reductions
See notes to financial statements.
Paydenfunds
84
<PAGE>
<TABLE>
<CAPTION>
U.S. Government Fund
===================================================================================================
2000 1999 1998 1997 1996
======= ======= ======= ======= =======
<S> <C> <C> <C> <C>
$ 10.45 $ 10.90 $ 10.56 $ 10.54 $ 10.61
------- ------- ------- ------- -------
0.59 0.57 0.56 0.60 0.58
0.05 (0.39) 0.33 0.02 (0.04)
------- ------- ------- ------- -------
0.64 0.18 0.89 0.62 0.54
------- ------- ------- ------- -------
(0.60) (0.57) (0.55) (0.60) (0.58)
(0.02) (0.06) (0.03)
------- ------- ------- ------- -------
(0.62) (0.63) (0.55) (0.60) (0.61)
------- ------- ------- ------- -------
$ 10.47 $ 10.45 $ 10.90 $ 10.56 $ 10.54
======= ======= ======= ======= =======
6.33% 1.76% 8.60% 6.10% 5.20%
======= ======= ======= ======= =======
$68,434 $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%
5.57% 5.29% 5.18% 5.31% 5.26%
5.70% 5.39% 5.38% 5.49% 5.59%
138% 128% 287% 160% 152%
</TABLE>
See notes to financial statements.
Annual Report
85
<PAGE>
Financial Highlights continued
(For a share outstanding during the period ended October 31st)
<TABLE>
<CAPTION>
GNMA Fund
==================
2000 1999(k)
======== ========
<S> <C> <C>
Net asset value -- beginning of period..................... $ 10.11 $ 10.00
-------- --------
Income (loss) from investment activities:
Net investment income..................................... 0.69 0.09
Net realized and unrealized gains (losses)................ 0.05 0.10
-------- --------
Total from investment activities......................... 0.74 0.19
-------- --------
Distributions to shareholders:
From net investment income................................ (0.70) (0.08)
In excess of net investment income........................
From net realized gains...................................
Return of capital.........................................
-------- --------
Total distributions to shareholders...................... (0.70) (0.08)
-------- --------
Net asset value -- end of period........................... $ 10.15 $ 10.11
======== ========
Total return *............................................. 7.79% 1.82%
======== ========
Ratios/supplemental data:
Net assets, end of period (000s).......................... $113,402 $121,161
Ratio of gross expense to average net assets **........... 0.48% 0.90%
Ratio of net expense to average net assets **............. 0.35% 0.35%
Ratio of net investment income to average net assets (1)
**....................................................... 6.75% 5.41%
Ratio of net investment income to average net assets **... 6.88% 5.96%
Portfolio turnover rate **................................ 53% 94%
</TABLE>
-------
The Funds commenced operations on the following dates:
(b) December 9, 1996
(k) August 27, 1999
* Not annualized for periods less than 1 year
** Annualized for periods less than 1 year
(1) Excluding expense reductions
See notes to financial statements.
Paydenfunds
86
<PAGE>
<TABLE>
<CAPTION>
Investment Quality Bond Fund Total Return Fund
================================================ ======================================
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
------- -------- -------- ------- ------- -------- -------- -------- -------
0.63 0.58 0.60 0.58 0.63 0.68 0.66 0.57 0.46
(0.13) (0.65) 0.20 0.22 (0.17) (0.16) (0.60) 0.20 0.23
------- -------- -------- ------- ------- -------- -------- -------- -------
0.50 (0.07) 0.80 0.80 0.46 0.52 0.06 0.77 0.69
------- -------- -------- ------- ------- -------- -------- -------- -------
(0.64) (0.58) (0.59) (0.60) (0.61) (0.69) (0.57) (0.58) (0.44)
(0.13)
(0.08) (0.05) (0.05) (0.08)
------- -------- -------- ------- ------- -------- -------- -------- -------
(0.64) (0.66) (0.64) (0.60) (0.61) (0.69) (0.62) (0.79) (0.44)
------- -------- -------- ------- ------- -------- -------- -------- -------
$ 9.30 $ 9.44 $ 10.17 $ 10.01 $ 9.81 $ 9.50 $ 9.67 $ 10.23 $ 10.25
======= ======== ======== ======= ======= ======== ======== ======== =======
5.74% (0.71)% 8.33% 8.44% 4.86% 5.60% 0.55% 7.72% 7.10%
======= ======== ======== ======= ======= ======== ======== ======== =======
$77,243 $195,228 $173,974 $94,987 $32,304 $310,250 $230,440 $174,612 $98,863
0.51% 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%
6.58% 6.06% 6.06% 5.95% 5.77% 6.90% 5.58% 5.99% 5.97%
6.59% 6.06% 6.12% 6.03% 6.41% 6.90% 5.58% 6.07% 6.21%
161% 67% 156% 317% 197% 164% 45% 208% 206%
</TABLE>
See notes to financial statements.
Annual Report
87
<PAGE>
Financial Highlights continued
(For a share outstanding during the period ended October 31st)
<TABLE>
<CAPTION>
High Income Fund
=============================
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........................... 0.85 0.89 0.47
Net realized and unrealized gains (losses)...... (0.78) (0.34) (0.34)
--------- -------- -------
Total from investment activities.............. 0.07 0.55 0.13
--------- -------- -------
Distributions to shareholders:
From net investment income...................... (0.83) (0.80) (0.36)
In excess of net investment income..............
From net realized gains.........................
Return of capital...............................
--------- -------- -------
Total distributions to shareholders........... (0.83) (0.80) (0.36)
--------- -------- -------
Net asset value -- end of period................. $ 8.76 $ 9.52 $ 9.77
========= ======== =======
Total return *................................... 0.59% 5.65% 1.28%
========= ======== =======
Ratios/supplemental data:
Net assets, end of period (000s)................ $ 139,491 $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 net investment income to average net
assets (1) **.................................. 8.81% 7.99% 7.58%
Ratio of net investment income to average net
assets **...................................... 8.81% 7.99% 7.75%
Portfolio turnover rate **...................... 87% 68% 134%
</TABLE>
-------
The Funds commenced operations on the following dates:
(h) December 30, 1997
* Not annualized for periods less than 1 year
** Annualized for periods less than 1 year
(1) Excluding expense reductions
See notes to financial statements.
Paydenfunds
88
<PAGE>
<TABLE>
<CAPTION>
Short Duration Tax Exempt Fund
===================================================================================================
2000 1999 1998 1997 1996
======= ======= ======= ======= =======
<S> <C> <C> <C> <C>
$ 9.87 $ 10.11 $ 10.08 $ 10.01 $ 10.08
------- ------- ------- ------- -------
0.39 0.37 0.42 0.38 0.38
0.02 (0.15) 0.03 0.07 (0.06)
------- ------- ------- ------- -------
0.41 0.22 0.45 0.45 0.32
------- ------- ------- ------- -------
(0.39) (0.37) (0.41) (0.38) (0.38)
(0.02) (0.09) (0.01) (0.01)
------- ------- ------- ------- -------
(0.41) (0.46) (0.42) (0.38) (0.39)
------- ------- ------- ------- -------
$ 9.87 $ 9.87 $ 10.11 $ 10.08 $ 10.01
======= ======= ======= ======= =======
4.18% 2.29% 4.55% 4.55% 3.28%
======= ======= ======= ======= =======
$13,377 $15,061 $16,825 $38,176 $36,336
0.86% 0.85% 0.68% 0.62% 0.70%
0.50% 0.50% 0.44% 0.45% 0.45%
3.57% 3.27% 3.75% 3.58% 3.56%
3.93% 3.62% 3.99% 3.75% 3.81%
73% 54% 53% 57% 35%
</TABLE>
See notes to financial statements.
Annual Report
89
<PAGE>
Financial Highlights continued
(For a share outstanding during the period ended October 31st)
<TABLE>
<CAPTION>
California
Municipal
Tax Exempt Bond Fund Income Fund
=========================================== ================
2000 1999 1998 1997 1996 2000 1999(i)
======= ======= ======= ======= ======= ======= =======
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value --
beginning of period... $ 9.43 $ 9.92 $ 9.71 $ 9.47 $ 9.59 $ 9.62 $ 10.00
------- ------- ------- ------- ------- ------- -------
Income (loss) from
investment activities:
Net investment income.. 0.45 0.42 0.40 0.44 0.45 0.40 0.26
Net realized and
unrealized gains
(losses).............. 0.16 (0.49) 0.20 0.24 (0.12) 0.32 (0.38)
------- ------- ------- ------- ------- ------- -------
Total from investment
activities.......... 0.61 (0.07) 0.60 0.68 0.33 0.72 (0.12)
------- ------- ------- ------- ------- ------- -------
Distributions to
shareholders:
From net investment
income................ (0.46) (0.42) (0.39) (0.44) (0.45) (0.41) (0.26)
In excess of net
investment income.....
From net realized
gains.................
Return of capital......
------- ------- ------- ------- ------- ------- -------
Total distributions
to shareholders..... (0.46) (0.42) (0.39) (0.44) (0.45) (0.41) (0.26)
------- ------- ------- ------- ------- ------- -------
Net asset value -- end
of period.............. $ 9.58 $ 9.43 $ 9.92 $ 9.71 $ 9.47 $ 9.93 $ 9.62
======= ======= ======= ======= ======= ======= =======
Total return *.......... 6.70% (0.81)% 6.32% 7.33% 3.52% 7.68% (1.22)%
======= ======= ======= ======= ======= ======= =======
Ratios/supplemental
data:
Net assets, end of
period (000s)......... $24,757 $46,452 $67,889 $57,579 $49,862 $34,792 $28,690
Ratio of gross expense
to average net
assets **............. 0.69% 0.57% 0.57% 0.59% 0.61% 0.60% 0.77%
Ratio of net expense to
average net
assets **............. 0.52% 0.50% 0.49% 0.45% 0.45% 0.50% 0.50%
Ratio of net investment
income to average net
assets (1)**.......... 4.51% 4.07% 4.00% 4.46% 4.57% 4.12% 3.17%
Ratio of net investment
income to average net
assets **............. 4.68% 4.14% 4.08% 4.60% 4.73% 4.22% 3.44%
Portfolio turnover
rate **............... 63% 28% 36% 42% 23% 101% 39%
</TABLE>
-------
The Funds commenced operations on the following dates:
(i) December 17, 1998
* Not annualized for periods less than 1 year
** Annualized for periods less than 1 year
(1) Excluding expense reductions
See notes to financial statements.
Paydenfunds
90
<PAGE>
Independent Auditors' Report
We have audited the accompanying statements of assets and liabilities of Payden
& Rygel Investment Group (the "Funds"), including Global Short Bond Fund,
Global Fixed Income Fund, Emerging Markets Bond Fund, Global Balanced Fund,
European Growth & Income Fund, European Aggressive Growth Fund, World Target
Twenty Fund, Growth & Income Fund, Market Return Fund, U.S. Growth Leaders
Fund, Small Cap Leaders Fund, Bunker Hill Money Market Fund, Limited Maturity
Fund, Short Bond Fund, U.S. Government Fund, GNMA Fund, Investment Quality Bond
Fund, Total Return Fund, High Income Fund, Short Duration Tax Exempt Fund, Tax
Exempt Bond Fund and California Municipal Income Fund, including the schedules
of portfolio investments, as of October 31, 2000, and the related statements of
operations, the statements of changes in net assets, and the financial
highlights for the periods presented. In addition, we have audited the
statements of cash flows for the year ended October 31, 2000 for the GNMA Fund,
Investment Quality Bond Fund and Total Return Fund. These financial statements
and financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of October 31, 2000, by
correspondence with the Funds' custodians and brokers; where replies were not
received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of October 31, 2000, the results of their operations, the changes in
their net assets, and their financial highlights for the respective periods
stated above, including the statements of cash flows for the Funds indicated
above, in conformity with accounting principles generally accepted in the
United States of America.
As discussed in Note 7, on November 16, 2000, the Board of Trustees approved
the closing of the European Growth & Income Fund, which is anticipated to occur
on December 22, 2000.
Deloitte & Touche LLP
Chicago, Illinois
December 8, 2000
Annual Report
91
<PAGE>
Trustees and Officers
Trustees
Joan A. Payden, Chairman and Chief Executive Officer
President and CEO, Payden & Rygel
W.D. Hilton, Jr.
CEO, Trust Services, Inc.
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
Mary Beth Syal
Managing Principal, Payden & Rygel
Officers
Gregory P. Brown, President and Chief Operating Officer
Yot Chattrabhuti, Vice President
Bradley F. Hersh, Vice President and Treasurer
David L. Wagner, Vice President
Edward S. Garlock, Secretary
Paydenfunds
92
<PAGE>
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.
<PAGE>
GLOBAL BOND FUNDS
Global Short Bond Fund
Global Fixed Income Fund
Emerging Markets Bond Fund
GLOBAL STOCK FUNDS
Global Balanced Fund
European Growth & Income Fund
European Aggressive Growth Fund
World Target Twenty Fund
DOMESTIC STOCK FUNDS
Growth & Income Fund
Market Return Fund
U.S. Growth Leaders Fund
Small Cap Leaders Fund
DOMESTIC STOCK FUNDS
Bunker Hill Money Market Fund
Limited Maturity Fund
Short Bond Fund
U.S. Government Fund
GNMA Fund
Investment Quality Bond Fund
Total Return Fund
High Income Fund
TAX EXEMPT BOND FUNDS
Short Duration Tax Exempt Fund
Tax Exempt Bond Fund
California Municipal Income Fund
[LOGO FOR PAYDENFUNDS]
Paydenfunds
333 South Grand Ave Los Angeles, California 90071
1-800-5-PAYDEN 1-800-572-9336 www.paydenfunds.com
