Morningstar Rates the Payden GNMA Fund Five Stars.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Sept. 26, 2002

Morningstar(TM) Rates the Payden GNMA Fund Five Stars for the

Three-Year Period Ended August 31, 2002, out of 282 Funds in the

Intermediate Government Fund Category

Top performing Payden GNMA Fund (Nasdaq:PYGNX) debuts as a five star fund based on Morningstar's risk-adjusted return measure. Morningstar(TM) rates the Payden GNMA Fund five stars for the three-year period ended August 31, 2002, out of 282 funds in the intermediate government fund category. Since its inception in August 1999, the fund has posted notable returns given the instability in global financial markets. The fund's total return was 11.2 percent in 2000 and 7.7 percent in 2001.

"Ginnie Mae funds can provide higher returns than money market funds, while maintaining a high, AAA, credit rating," says David Ballantine, managing director of Payden & Rygel, the nation's largest independent global bond manager. Ballantine also notes that the Payden GNMA Fund offers check writing privileges, and an investment in mortgage-backed securities explicitly guaranteed by the full faith and credit of the U.S. Government, giving them the same solid underpinning as Treasury bonds.

"A consistent management style, low expense ratio, check writing privileges and positive outlook for Ginnie Mae securities have made the Payden GNMA Fund an attractive alternative for investors sitting out recent stock market volatility. Our GNMA Fund appeals to investors who desire the security of a fund solely invested in government-backed securities, but who seek higher yields than Treasury securities," Ballantine points out.

"There are still risks, of course, as there are with any bond fund. Examples include rising interest rates and, for mortgages, the associated prepayment risk. But some of the risks can be mitigated by investing in Ginnie Mae mutual funds that have a good track record, are professionally managed and offer diversified exposure and low fees," Ballantine explains.

Since 1968, GNMA has been a cornerstone of the American mortgage market. Chartered by the United States Congress as a government corporation, GNMA provides liquidity for low and moderate income and first-time homebuyers. The program funds mortgages for more than 25 million households annually, making homeownership a reality for millions of Americans.

Founded in 1983, Payden & Rygel (www.payden.com) is among the largest independent investment counselors in the U.S. with more than $40 billion in assets under management. The firm is headquartered in Los Angeles with offices in London, Dublin and Frankfurt. Payden & Rygel is the advisor to Paydenfunds (www.Paydenfunds.com), a family of 20 domestic no-load, low expense stock and bond mutual funds. Similar strategies are also domiciled in Dublin for Payden & Rygel's offshore accounts.

Editor's note: An overall rating is based on a weighted average of the fund's ratings for the 3, 5, and 10 year periods, if applicable.

For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating (based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance). The top 10% of funds in each category receive 5 stars. Highly rated funds are defined as those that have a 4 or 5 star Morningstar rating. Data provided by Morningstar, Inc. Although gathered from reliable sources, data completeness and accuracy cannot be guaranteed. Morningstar is a registered trademark of Morningstar, Inc. and is not affiliated with Paydenfunds.

There is no guarantee of future performance, nor are fund shares guaranteed. The value of an investment in the fund will fluctuate, so that upon redemption an investor's shares may be worth more or less than the original cost. This material should only be used when preceded or accompanied by a prospectus. Read the prospectus carefully before investing. The Paydenfunds are distributed through Payden & Rygel Distributors, member NASD.