Of the five types of hybrid mutual funds we track, the 19 convertible-security funds finished April with the highest average one-month return at 4.36%. The trailing four categories are ranked by the average one-month total return for each group.
The best performing convertible fund for April is the
Franklin Convertible Securities A
. This D+ rated fund gained 7.55% in one month, enough to pay back the front load of 5.75%.
The fund is apportioned to 63.8% corporate securities of companies like
It's allocated 31.9% to preferred shares, including those of
The category in second place is global asset allocation, averaging 3.48% for the month. This is one of the most flexible types of mutual-fund categories, as it can generally choose among any of the classes of investment from anywhere around the world.
The C+ rated
Purisima Total Return Fund
topped this group of 41 funds gaining 7.84% in April.
Unfortunately, as the fund is not sold to the public, the only way to invest in it is to be one of the smaller private clients of Fisher Investments.
A representative of Fisher said the fund has a current allocation of about 55% foreign and the remaining domestic. The firm considers the Morgan Stanley World Index as its internal benchmark for comparison.
The third-place category of domestic asset allocation is led by the
TCW LifePlan Aggressive Fund
The group averaged 3.46% while the individual fund showed a performance of 7.78% in April. This LifePlan fund invests in a portfolio of other TCW funds, including 37.99%
TCW Large Cap Growth Fund
TCW Diversified Value Fund
TCW Growth Equities Fund
TCW Value Opportunities Fund
TCW Core Fixed Income Fund
TCW Relative Value Small Cap Fund
TCW Small Cap Growth Fund
The net result is a highly diversified fund with 93% invested in U.S. securities.
For 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.