10 King William Street • London EC4N 7TW • United Kingdom • +44 (0) 20-7621-3000 • PAYDEN.COM

30 JUNE 2011

OFFSHORE FUNDS — DUBLIN

PAYDEN GLOBAL HIGH YIELD FUND

MARKET UPDATE AND OUTLOOKUS economic growth slowed in the second quarter of 2011. The Japanese earthquake aftermath hampered auto production activity, higher energy prices reduced household spending power and peripheral Europe debt woes caused uncertainty in financial markets. As a result, government bond yields and equity prices both fell during the quarter. Is this a hint of a more serious economic slowdown on the horizon? In our view, the growth slowdown is a “soft patch” in the economic expansion, not the sign of a “double dip” recession. The good news: auto production activity is coming back on line and oil prices are down near $90 per barrel. Furthermore, progress toward avoiding a Greek default is giving the markets hope that a more comprehensive solution will soon emerge.

Despite a 1.9% rate of growth in the first quarter and soft economic data received in the second quarter, we continue to expect that US gross domestic product will expand in line with its long-term trend of 2.5-3.0% in 2011. We do not anticipate a “double dip” recession scenario. Although the market and the media have focused on inflation, we think high gas prices and high unemployment remain key macro risks as higher gas prices threaten to cut into already thin household income gains. As a result, we do not foresee any US Federal Reserve interest rate hikes this year. This implies front-end rates will remain low until more progress is made in job creation (the US unemployment rate is still above 9%). In this environment, longer-term Treasury rates will remain range-bound and only rise gradually as economic growth gains traction. This moderate economic growth, low-inflation environment is still favorable for an array of fixed-income sectors to pick up additional yield over US Treasuries.

Credit spreads will continue to compress throughout the year. We still favor the higher-quality end of the high-yield spectrum as we think CCC-rated credits are overvalued relative to B-rated securities.

FUND HIGHLIGHTS » Potential for income and capital appreciation » Focuses on upper-tier high-yield bonds and employs strong risk controls » Portfolio diversification tool

INVESTMENT STRATEGYThe Payden Global High Yield Bond Fund seeks to maximize total return by focusing on the upper tier of the high-yield bond market. High-yield bonds can provide diversification and yield benefits to an investment portfolio due to their low correlation with both US Treasuries and investment-grade corporate bonds.

1. All periods over one year are annualised.

CREDIT ALLOCATION

59% B

9% CCC

28% BB

4% BBB and above

DURATION ALLOCATION

1% 10+ yrs6% 0-1 yrs

6% 7-10 yrs

11% 1-3 yrs 41% 5-7 yrs

35% 3-5 yrs

12.28%3.84%

-22.05%

7.84%

28.46%

2.65% 1.80%8.42%

18.96%

3.60%

20092010 2008 20062007 2005 20032004 2002

-30%

-20%

-10%

0%

10%

20%

30%

YTD

CALENDAR-YEAR RETURNS

SECTOR ALLOCATION

4% Cash

8% Corporates- Financials

7% Corporates-Utilities

81% Corporates- Industrials

TRAILING PERIOD RETURNS1

Effective Date Ticker

Year To Date

1Year

5Year

10Year

Since Inception (11 Jul 01)

30 Jun 2011 PARGLHI 3.84% 13.01% 5.15% 5.85% 5.85%

10 King William Street • London EC4N 7TW • United Kingdom • +44 (0) 20-7621-3000 • PAYDEN.COM

This material has been prepared by Payden & Rygel Global Limited. Payden & Rygel Global Limited is authorised and regulated by the Financial Services Authority.

The information in this document is intended for your use only and does not constitute an invitation or offer to subscribe for or purchase any of the products or services mentioned. The information provided is not intended to provide a sufficient basis on which to make an investment decision. It is not intended for retail clients and such persons should not rely on this material. Moreover, any investment or service to which this material may relate will not be made available to retail clients. This material is directed exclusively at professional clients and eligible counterparties as defined by the rules of the Financial Services Authority or parties who are otherwise eligible under these rules. Payden & Rygel Global Limited has not taken any steps to ensure that the products and services referred to in this document are suitable for any particular investor and no assurance can be given that the stated investment objectives will be achieved. The value of investments may fall as well as rise.

The law may restrict distribution of this document in certain jurisdictions; therefore, persons into whose possession this document comes should inform themselves about and observe any such restrictions.

For more information and to obtain a prospectus, visit payden.com or call (+44) 20 7621 3000. Before investing, investors should carefully read and consider investment objectives, risks, charges, expenses and other important information about the fund, which is contained in this document. The Payden & Rygel offshore funds are distributed by Payden & Rygel Global Limited, regulated by the Financial Services Authority.

CONTACTAlverne Bolitho, PrincipalTel: (+44) 20 7621 3000e-mail: abolitho@payden.com

PORTFOLIO MANAGER

PAYDEN GLOBAL HIGH YIELD FUND

ROLE IN PORTFOLIOHigh-yield bond — Appropriate for investors who seek higher yields and diversification in the growing $1.2 trillion high-yield bond market.

MANAGER OVERVIEWINVESTMENT MANAGERPayden & Rygel was founded in 1983 to deliver superior service to the institutional investment community. A singular focus on client needs and a passion for investment solutions are the foundations on which Payden & Rygel was built. The firm’s tested approach to risk management fuses quantitative analysis with qualitative insight. This concept of mixing science with art in a culture of integrity is a cornerstone of the firm’s investment philosophy.

Payden & Rygel is dedicated to an independent, entrepreneurial ethic. These core values, coupled with a global perspective, make Payden & Rygel the leading investment management firm that it is today.

Headquarters: Los AngelesFounded: 1983 Assets Under Management: $60 billion (as of 30.06.11)

Sabur Moini, MBASenior Vice PresidentPortfolio Manager22 Years of Investment Experience

SHARE CLASS USD

ISIN Number IE0030624831

SEDOL Number 3-062-483

Bloomberg Reference PARGLHI ID

Inception Date 11 JUL 2001

Irish Stock Exchange Listed Yes

UCITS Compliant Yes

Liquidity Daily

Share Classes CAD, GBP, USD, ZAR

Minimum Initial Investment $1,000,000

PORTFOLIO ANALYTICS

Fund Credit Rating B1

Effective Duration 4.7 years

EXPENSES

Management Fee 0.60%

Maximum Total Expense Ratio (TER) 0.75%