Fund Description

Incepted in December 1998, Payden & Rygel serves as the investment adviser to the fund. The fund seeks income that is exempt from federal and California income tax and is consistent with preservation of capital. Under normal market conditions, the fund invests at least 80% of its total assets in ''California Municipal Securities,'' which are defined as debt obligations issued by the State of California, local governments and other authorities in California, and their agencies and instrumentalities, or by other issuers, all of which debt obligations pay interest income exempt from California personal income tax. The fund may invest up to 20% of its total assets in ''Municipal Securities,'' which are defined as debt obligations issued by state and local governments, territories, and possessions of the U.S., regional government authorities, and their agencies and instrumentalities, and which pay interest income either exempt from U.S. federal income tax or exempt from federal income tax but subject to the federal alternative minimum tax. The fund declares and distributes dividends to shareholders monthly. The fund distributes any net realized capital gains from the sale of portfolio securities at least once yearly.