DAILY SNAPSHOT DATE Symbol TICK NAV($) TDNAV Daily NAV change ($) CHG YTD Return YTDR FUND FACTS 12/31/05 Inception Date 2/27/04 Total net assets $1.40 mil Average duration 5.50 years Average maturity 9.30 years Average credit AAA Capital gains paid Annually Dividends paid Monthly Last Distribution $0.104 SEC Yield 2.29% Min. Purchase $5,000 Min. Purchase (IRA) $2,000 RETURNS 12/31/05 Year to date 2.02% 1 year trailing 2.02% Since inception 3.40% YEARLY RETURNS   Lehman U.S. TIPS Index Lehman U.S. Treasury Index 1998 3.95% 10.02% 1999 2.40% -2.56% 2000 13.17% 13.52% 2001 7.89% 6.75% 2002 16.56% 11.79% 2003 8.40% 2.24% 2004 8.46% 3.54% This data is intended to provide historical information only and is not indicative of future results. There is no guarantee that fund performance will replicate that of an index of TIPS securities. Why invest? Invests primarily in Treasury Inflation-Protected Securities (TIPS), which are designed to protect the holder from loss of spending power due to future increases in inflation Principal repayment at maturity for U.S. TIPS is guaranteed by the full faith and credit of the U.S. Government Low correlation of TIPS to other asset classes provides diversification benefits Low expense ratio and no loads or 12b-1 fees Investment strategy The Payden Real Return Fund is an actively managed fixed-income fund that invests primarily in Treasury Inflation-Protected Securities (TIPS). This asset class was designed to protect investors’ purchasing power from inflation. The fund seeks maximum current income and price appreciation consistent with the preservation of capital and prudent risk taking. All sectors of the inflation indexed security markets are utilized to add value while maintaining an overall risk level similar to an intermediate-duration U.S. Treasury portfolio. Role in portfolio Intermediate-term bond— Appropriate fixed-income holding for investors concerned about the rate of inflation. A low cost leader Payden Real Return Fund Morningstar average: Intermediate-term bond Expense ratio 0.38% 1.06% Front-end fees None 0.69% Deferred load None 0.69% 12b-1 fee None 0.35% What are TIPS? Treasury Inflation-Protected Securities (TIPS) are Treasury bonds adjusted to eliminate the effects of inflation. Unlike conventional Treasury bonds, which offer fixed semi-annual interest payments as well as a final, fixed principal payment at maturity, TIPS’ principal values are linked to the Consumer Price Index (CPI). In other words, if the CPI rises by 2% over the course of a year, for example, the principal value of a TIPS bond will be adjusted upward by the same amount. Market update Inflation protected Treasuries (TIPS) underperformed nominal Treasury bonds over the quarter as future inflation expectations declined due to oil prices retreating from their post-hurricane highs. Additionally, real yields on TIPS rose in October when Ben Bernanke was officially announced as the replacement for Alan Greenspan as chairman of the Federal Reserve. Bernanke’s stated preference of an explicit inflation target was seen as a negative for the TIPS market. Although the long-term impact of Bernanke’s tenure on inflation remains to be seen, the Fed has signaled the end of the tightening cycle is near, and we expect inflation to remain contained, with growth likely slowing in 2006. How to invest. 800 572-9336 Prospectus/Applications   Through the following mutual fund marketplace: - Ameritrade RELATED INFO: stats + facts | Dividends | Capital Gains | Purchase Paydenfunds Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end perf o rmance, which may be higher or lower than that quoted, visit our Web site at p a yden.com or call 800 572 9336. The total operating expense as of 2/28/05 was 0.60%; however, the adviser has agreed to limit expenses to 0.38%. For more information and to obtain a prospectus, visit our Web site at payden.com or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in this document; read the prospectus carefully before investing. The Paydenfunds are distributed through Payden & Rygel Distributors, member NASD. Investment Philosophy Investment Process

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