PAYDEN OFFERS ITS 5 STAR MORNINGSTAR US RATED CENTRAL AND EASTERN EUROPEAN EQUITY FUND TO NON-US INSTITUTIONS

London, June 11, 2007 –Payden & Rygel Ltd. today announced the launch of the Payden Central and Eastern European Equity Fund, a fund exclusively for institutional investors focused on the rapidly growing countries of central and Eastern Europe. The new fund, which is listed on the Irish stock exchange, allows institutions the opportunity to participate in a broad array of countries whose economies are benefiting from such factors as direct foreign investments; healthy, stable economies, lower corporate tax rates and competitive labor costs.

The new fund will be sub-advised by Metzler/Payden, a 50/50 joint venture formed between independent partners Metzler Bank and Payden & Rygel in 1998. The joint-venture serves as advisor to the Metzler/Payden European Emerging Markets Fund (MPYMX), a five-star, Morningstar-rated fund that is offered in the US. Metzler/Payden has a strong track record in the emerging markets equity sector.  The US mutual fund achieved a 46.27% return in 2006, and 43% annualized performance since inception 12/30/02.  This fund, which has appreciated 8.42% year-to date as of May 31, 2007, has approximately $500 million in assets.  

“We are very pleased to begin offering the Payden Central and Eastern European Equities Fund to the market place,” said Joan Payden, Chairman and founder of Payden & Rygel.  “We believe there continues to be an excellent environment for investing in the emerging and growing countries of Central and Eastern Europe, particularly as we see this economy benefiting from convergence with the more developed areas of Europe. Central and Eastern Europe is a growing region which is benefiting from numerous favorable trends including increased needs for labor outsourcing from the economies of developed Europe as well as continued political stability.”

Robin Creswell, Managing Director of Payden & Rygel Global Ltd., added “The new fund is going to benefit from economic growth in the region, which we expect will remain above average for several more years. The fund will look at this area broadly, seeking to find those companies best positioned to prosper from economic growth and reform.  We believe there continues to be good value and long-term prospects in many sectors of the Central and Eastern European economies.”

The strategy is based on a proprietary approach to investing which combines rigorous quantitative and qualitative screening.  The firm performs top-down analysis that includes studying broad economic factors and seeks to find the most promising sectors. Stocks are ranked according to numerous metrics including valuation and momentum. In-depth qualitative analysis is then performed to help find the best securities.

“Our approach combines a top-down and bottom-up methodology that seeks to locate those companies best positioned to benefit over the months ahead,” said Soeren Rytoft, Portfolio Director at Payden & Rygel.  “Eastern Europe is much more than Russia. That is why the fund is managed against the well diversified Nomura-CEE index that also focuses on the Baltic States and Turkey”

“Even though European emerging markets stock prices have generally moved higher, there still are securities that appear undervalued given our economic outlook,” said Marcus Bruck, Portfolio Manager at Metzler/Payden. “We see continued above average growth for this region.  The economic catch up story is still intact.”

For more information about the new fund, please contact Soeren Rytoft, Payden & Rygel Ltd., in London at +44 20 7621 3000.

About Payden & Rygel
Payden & Rygel is one of the largest privately owned investment managers in the United States, with more than $50 billion in assets under management. Headquartered in Los Angeles, California since 1983, Payden & Rygel has long maintained an international presence.

Payden & Rygel Global Ltd., a wholly-owned subsidiary of Payden & Rygel established in London in 1999, manages more than $12 billion in a broad array of strategies in the equity and fixed income markets.  The firm has experienced strong growth, serving institutional clients in the UK, Continental Europe and the Middle East.  The firm’s global client base includes banks, supranationals, government institutions, pension funds, insurers, foundations and public funds.  

About Metzler/Payden
Metzler/Payden (metzlerpayden.com) is a US Investment Management Firm that specializes in European equity funds and was established in 1998 to meet investors’ needs for international diversification. The firm fuses the experience of independent partners Metzler Bank and Payden & Rygel, enabling the unique exchange of expertise, research, and ideas across the Atlantic to offer global solutions to our clients.