Conservative Funds Get Highest Ratings

NEW YORK (TheStreet) -- The highest-ranked newly rated mutual fund is the DWS Disciplined Market Neutral Fund(DDMAX), which selects stocks from the Russell 1000 Index and offsets them with short positions.

TheStreet.com Ratings, in all, initiated coverage of 20 mutual funds that accrued a track record of three years of risk and performance data by the end of October. Three, including the DWS Disciplined Market Neutral Fund, received the second-highest rating of "good."

Industries are balanced with about the same dollar value of longs and shorts -- betting on price increases and declines, respectively. The largest long positions include Oil States International(OIS), Discover Financial Services(DFS), Ryder System(R) and Avnet(AVT). On the short side are Boeing(BA), J.M. Smucker(SJM), McCormick(MKC) and Cadence Design Systems(CDNS).

While the DWS Disciplined Market Neutral Fund has shown that it can avoid getting buffeted by major ups and downs of the market, it has yet to show a flare for making money. Returns of 3.1% for one year and a 0.3% annual increase over three years, before a 5.75% sales fee, compare favorably relative to funds losing more money. However, it leaves a lot to be desired in absolute terms.

The second-best newly rated fund is the John Hancock Funds II -- Lifecycle 2010 Portfolio(JLAAX). The fund, which carries a sales fee of 5%, is being marketed to investors planning to retire next year. It holds John Hancock funds allocated to get more conservative over time. Only 56% of its assets are invested in stocks.

The Matthews Asia Pacific Equity Income Fund(MAPIX) is the top performer of the three "buy"-rated funds, averaging 9.1% over the past three years. It rocketed 49% for the 12 months through October. It doesn't charge a front-end sales fee. Some of the fund's best-performing Asia Pacific region stocks include one-year returns of 253% in Minth Group, 222% in ASM Pacific Technology and 198% in XinAo Gas Holdings.

Making the Grade Newly Rated Stock Mutual Funds Fund (Ticker) Initial Rating Total Return 1 Year Total Return 3 Years DWS Disciplined Market Neutral Fund (DDMAX) B+ 3.09% 0.27% John Hancock Funds II - Lifecycle 2010 Portfolio (JLAAX) B 21.67% -1.69% Matthews Asia Pacific Equity Income Fund (MAPIX) B 49.13% 9.08% Scout Mid Cap Fund (UMBMX) C 28.22% 1.84% Templeton Emerging Markets Small Cap Fund (TEMMX) C 84.73% 0.44% John Hancock Funds II - Lifecycle 2015 Portfolio (JLBAX) C 21.67% -2.64% Oakmark Global Select Fund (OAKWX) C 42.50% -0.06% John Hancock Funds II - Lifecycle 2020 Portfolio (JLDAX) C- 21.62% -3.49% John Hancock Funds II - Lifecycle 2025 Portfolio (JLEAX) D+ 20.89% -4.52% Forward Large Cap Equity Fund (FFLAX) D 7.76% -4.28% CRM All Cap Value Fund (CRMEX) D 10.85% -6.58% RS Partners Fund (RSPKX) D 24.57% -7.08% John Hancock Funds II - Lifecycle 2030 Portfolio (JLFAX) D 20.57% -5.13% John Hancock Funds II - Lifecycle 2035 Portfolio (JLHAX) D 20.67% -5.09% John Hancock Funds II - Lifecycle 2040 Portfolio (JLIAX) D 20.69% -5.08% John Hancock Funds II - Lifecycle 2045 Portfolio (JLJAX) D 20.63% -5.12% Olstein Strategic Opportunities Fund (OFSAX) D- 32.26% -6.23% Seligman TargETFund 2045 (STQAX) E+ 19.12% -5.37% Seligman TargETFund 2035 (STZAX) E+ 19.19% -5.40% Williamsburg Investment Trust - Jamestown Select Fund (JEDIX) E 4.59% -8.92% Source: TheStreet.com

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