Mutual Fund Investing
Funds Now Covered by TSC Ratings
Kevin Baker
04/30/08 - 11:53 AM EDT
TheStreet.com Ratings initiated coverage of 19 open-end mutual funds that accrued a track record of three years of risk and performance data by the end of March.
Three of the funds that opened for business in March 2005, received our top rating of A+ or Excellent.
The Adv Inn Cir Reaves Select Research FundRSRAX, with nearly 87% invested in domestic growth stocks, found the two sweet spots in the U.S. economy: utilities and energy. The fund is allocated to 22% electric, 17.5% telecommunications, 14.7% oil & gas, 14.3% gas and 7.1% oil & gas services. The fund does have an undesirable front load of 4.75% that cuts into potential returns.
The next two funds avoid U.S. stocks. While they don't charge loads, they both have 2% early-withdrawal penalties. Be sure to ask your broker or the fund family, if you are directly purchasing a fund investment, what loads, fees, and expenses you would be charged if you purchase a fund. Confirming this information before you make the purchase is the best way to avoid a negative surprise when it's time to liquidate the position and move on.
The American Century International Stock FundASKIX staged a comeback in the first quarter of 2008 after a few rough months finishing out 2007. Some of its top-performing holdings include K+S AGKUNAF, a German chemical company that is up an average of 95.20% per year for the last three years; Vestas Wind Systems A/SVWDRY, a Danish alternative-energy company up 92.64% annually; and AlstomAOMFF, a French industrial machinery company up 85.57% over the same period.
The other non-U.S. equity fund starting off at A+ is the Northern International Equity Index FundNOINX. This fund tracks the MSCI EAFE Index by holding a huge portfolio of nearly 1,200 securities. Its biggest country holdings are: U.K., at 19.5%; Japan, at 19.4%; France, at 9.8%; Germany, at 9.1%; and Switzerland, at 6.9%.
Research Methodology
TheStreet.com Ratings condenses the available fund performance and risk data into a single composite opinion of each fund's risk-adjusted performance. This allows the unbiased identification of those funds that have historically done well and those that have underperformed the market. While there is no guarantee of future performance, these Investment Ratings provide a solid framework for making informed, timely investment decisions.
The funds listed below have either reached their three year anniversary or are additional share classes of existing funds for which the fund companies have submitted three years of pro-forma results.
| New Coverage of Open-End Mutual Funds as of March 2008 | ||
| Fund (Ticker) Initial Rating | Inception Date | Objective |
| Adv Inn Cir Reaves Sel Research Inv (RSRAX) A+ | 3/30/2005 | Growth - Domestic |
| American Century Intl Stock Inv (ASKIX) A+ | 3/31/2005 | Non-US Equity |
| Northern Trust Intl Eq Index Fd (NOINX) A+ | 3/22/2005 | Non-US Equity |
| Calamos International Growth A (CIGRX) B+ | 3/16/2005 | Non-US Equity |
| Managers AMG TSqr MidCap Gr Prem (TMDPX) B+ | 3/4/2005 | Mid Cap |
| Tilson Dividend Fd (TILDX) B+ | 3/16/2005 | Growth & Income |
| Cohen & Steers Intl Realty Fd A (IRFAX) B | 3/31/2005 | Non-US Equity |
| ING GET U.S. Core Portfolio -Ser 7 (IGUIX) B | 3/9/2005 | Equity Income |
| Principal Inv Prt Global Eq AdvPfd (PNPPX) B- | 3/1/2005 | Global Equity |
| Northern Trust Midcap Index Fd (NOMIX) C+ | 3/22/2005 | Mid Cap |
| Schwab Hedged Equity Inv (SWHIX) C+ | 3/1/2005 | Equity Income |
| Federated Strategic Value A (SVAAX) C | 3/30/2005 | Equity Income |
| Schwab Premier Equity Fund Inv (SWPNX) C | 3/21/2005 | Equity Income |
| Allianz OCC Core Equity A (AOCAX) C- | 3/31/2005 | Growth - Domestic |
| Vanguard Telecom Services Index Adm (VTCAX) C- | 3/11/2005 | Growth - Domestic |
| BNY Hamilton Smll Cap Cor Eqty A (BNPAX) D+ | 3/2/2005 | Small Cap |
| Tilson Focus Fd (TILFX) D | 3/16/2005 | Growth - Domestic |
| SSgA Enhanced Small Cap Fd (SESPX) E+ | 3/22/2005 | Small Cap |
| Chinook Emerg Growth Class I (CHEGX) E | 3/29/2005 | Small Cap |