Payden & Rygel, the adviser to Paydenfunds, has carefully developed a business continuity plan intended to respond to emergency situations. In brief, we have selected a group of senior employees who comprise our GO Team. This team will be responsible to staff our main office or back-up facility immediately after any business disruption with the expectation that routine business operations should resume within 24 hours. To ensure communications with all employees, we have an Employee Emergency Contact number which will be used by our employees to gain information regarding any disruption. The information recorded on this Emergency Contact number will be updated daily to keep all employees informed.

We have prepared emergency plans for two kinds of disruptions. If the disruption is such that our offices in Los Angeles are accessible, we will confer with local authorities to confirm that the building and surrounding area is safe for entry. Assuming this is true, GO Team members will return to our offices and resume business operations.

If our Los Angeles offices have been damaged and are no longer accessible, our GO Team will immediately be notified to travel to our emergency back-up facility which is located outside the Los Angeles area. Our back-up facility has a computer system, which receives on a real-time basis, all computer data stored on our Los Angeles computers. Therefore, data regarding client accounts will be available regardless of when the emergency might occur. In addition, we will transfer our phone lines to the back-up facility. The change in venue should be seamless with no disruption to our clients. The back-up facility is located in a city with a major airport and is also close enough to Los Angeles to allow GO team members to reach the office by automobile. We expect that operations can be resumed within 24 hours. The funds transfer agent, who maintains all shareholder records, will continue to receive all shareholder calls related to their accounts. Investors will be able to gain access to their assets the next business day.

Members of our Information Technology department visit the back up facility frequently to service our computers and perform routine tests. In addition, members of our GO Team regularly travel to the facility to ensure that all necessary client records and software systems are accessible.

Our business continuity plan is reviewed frequently and is regularly modified, as necessary. Updated plans will be posted on our Web site and a copy of this plan may also be obtained by written request.