Initial Ratings on Four Fixed-Income Funds
08/21/08 - 03:46 PM EDT
Kevin Baker
TheStreet.com Ratings initiated coverage of four open-end, fixed-income mutual funds that accrued a track record of three years of risk and performance data by the end of July.
Only one of these funds that opened for business in July of 2005 received our top rating level of excellent. Starting out with a rating of A+, the ING Institutional Prime Money Market Fund(PILXX Quote - Cramer on PILXX - Stock Picks) has returned 4.61% annually for the last three years and 4.07% for the 12 months ending July 31. The fund maintains a $1.00 net asset value investing in high-quality U.S. short-term debt. The remaining three funds begin at the hold level. Rated C+, the DWS Inflation Protected Plus Fund(TIPAX Quote - Cramer on TIPAX - Stock Picks) finished July with a one-year total return of 9.94% by seeking out inflation-indexed bonds of the U.S. government, its agencies or foreign governments issuing investment-grade, inflation-protected bonds. The fund ranked in the middle of the pack after accounting for the 2.75% front load. The LKCM Aquinas Fixed Income Fund(AQFIX Quote - Cramer on AQFIX - Stock Picks) earned a rating of C with returns of 4.57% over one year and averaging 3.62% over three years. This fund applies Catholic values in socially responsible investing with a policy of actively pushing companies to adhere to moral behavior and the selling of securities of companies that won't comply. LKCM stands for Luther King Capital Management, which is the fund advisor lead by J. Luther King Jr., who is unrelated to famed civil rights leader and Baptist minister Martin Luther King Jr. Lastly, the Leader Short-Term Bond Fund(LCCMX Quote - Cramer on LCCMX - Stock Picks) gets an initial rating of C. The fund invests in both investment-grade and non-investment-grade bonds but targets average maturities of less than four years. Just over half of the fund is invested in a money market fund. The remainder is split between corporate debt and preferred shares with a small amount of mortgages and government securities. The one-year total return of 3.68% is mostly absorbed by a front load of 3.5%.
RSS
