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Tuesday, January 30, 2007
Top Performing Mutual Funds Fail to Repeat Past Performance in 2006
The Standard & Poor's investment research firm yesterday released its latest mutual fund persistence scorecard that measures the consistency of top mutual fund performers over time. For 2006, Standard & Poor's scorecard shows very few funds managed to consistently repeat top-half or top-quartile performance. Over five years ending December 31, 2006, only 71 (13.2%) large-cap, 16 (9.9%) mid-cap and 24 (10.0%) small-cap funds maintained a top-half ranking over five consecutive 12-month periods. A total of eight (3.0%) large-cap, two (2.5%) mid-cap and zero small-cap funds maintained a top-quartile ranking over the same period. "Standard & Poor's research suggests that screening for top-quartile funds, as the sole basis for an investment decision, is inappropriate," says Srikant Dash, Index Strategist at Standard & Poor's. Click here for more details.
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Posted by KenW
Friday, January 26, 2007
Forbes.com's "Best Buy" Mutual Funds
Forbes has released the results of its 2007 Mutual Fund Survey of mutual funds which "deliver a decent return to investors over the long haul while keeping costs under control." Categories covered include stock funds, bond funds (each with sub-categories) and balanced funds. Click here for more details and fund selections.
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Posted by KenW
Tuesday, January 23, 2007
Money Market Fund Assets Hit Record High
Ironically, with equity funds at or near theirs highs, money market fund assets are also at their highs. The Investment Company Institute's weekly money fund asset series reported assets at $2.39 trillion for the week ended Wednesday, January 10, with retail assets weighing in at $977.3 billion and institutional assets reaching $1.4 trillion. "We have created a new paradigm where one out of every five dollars invested in mutual funds is invested in a money fund," says Bruce Bent, founder and Chairman of The Reserve money fund complex. Click here for more details from Bruce Bent.
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Posted by KenW
Friday, January 19, 2007
Money Magazine's Top 70 Mutual Fund Picks for 2007
Money magazine has selected 70 mutual funds it says are "The best mutual funds you can buy." The list includes an array of actively managed stock and bond portfolios, low-cost index and exchange-traded funds and target-date retirement funds. Given the magazine's criteria of "low expenses, a strong record for putting shareholder interests first, and a consistent investment strategy," it's not too surprising to find 23 Vanguard mutual funds and exchange-traded funds on the list, nearly twice as many as its nearest competitor. Click here for more information and a complete list of all 70 fund picks.
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Posted by KenW
Wednesday, January 17, 2007
Price Capital Appreciation Fund Extends Win Streak to 16 Years
The T. Rowe Price Capital Appreciation Fund has extended its unmatched industry win streak to 16 consecutive years of positive returns. The Fund has also outperformed S&P 500 with lower market volatility. The T. Rowe Price Capital Appreciation Fund - which returned 14.5% in 2006 - once again posted a positive calendar year return, making it the only domestic equity or balanced fund tracked by either Morningstar or Lipper to provide a gain for each of the past 16 years. Moreover, during this 16-year period, the no-load Fund outperformed the S&P 500 stock index with an annualized return of 13.1% compared with 11.8% for the index. The Fund has also outperformed the broader market index since its inception June 30, 1986, and on average has had lower volatility than the index as measured by standard deviation. Click here for more details.
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Posted by KenW
