NEW YORK (TheStreet) -- TheStreet.com Ratings initiated coverage of 23 mutual funds that accrued a track record of three years of risk-and-performance data by the end of August.

Only one of these funds that opened for business in August of 2006 received our second-highest rating level of "good."

The fund with an initial rating of B-plus,

Franklin Templeton 2015 Retirement Target Fund A

(FTRAX) - Get Report

, is a fund of funds designed to provide an appropriate asset allocation for investors planning to retire in 2015. Franklin Templeton asserts that the best mix for this is 46% domestic equity, 25% fixed income, 22% foreign equity, and 7.2% in cash and equivalent short-term investments. One large drawback is the fund's 5.75% initial sales fee.

At the other end of the initial rating spectrum are two funds with ratings that can only get better.

The

Prudential Target Large Cap Value Portfolio

(TLVRX)

starts off with the lowest possible rating of E-minus. The prospects of this fund moving up are tied to the fortunes of its largest holdings including

JPMorgan Chase

(JPM) - Get Report

,

AT&T

(T) - Get Report

,

Chevron

(CVX) - Get Report

and

Verizon Communications

(VZ) - Get Report

.

Likewise, the E-minus-rated

Prudential Target Small Cap Growth Portfolio

(TSCRX)

is banking on a resurgence in

Bally Technologies

(BYI)

,

Thoratec

(THOR) - Get Report

and

Netflix

(NFLX) - Get Report

.

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.

Funds rated A or B are considered "buy" based on a track record of higher-than-average risk-adjusted performance. Funds at the C level are rated as "hold," while underperformers at the D and E rank as "sell."

For more information, check out an

explanation of our ratings

.

Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.