Scudder's (SCDGX) Growth & Income fund is a solid large-cap performer with a five-year annualized return of 17.9% and an abundance of name-brand stocks in its portfolio. Among its top holdings in 1998 were Ford (F), up 82% for the year; Xerox (XRX), up almost 60%; and Sprint (FON), which posted a 43% gain.None of the fund's top 10 holdings as of Sept. 30 had negative returns for 1998, and only five of its top 25 holdings -- all small ones accounting for less than 2% of assets -- were in the red. The fund's overall 1988 return? A measly 6.1%. What happened? Simple. Growth & Income stuck to its value-investing guns, remained diversified and didn't buy any tech. In most years, this would be a winning strategy. In 1998, it was a formula for mediocrity.
|Source: Lipper Inc.|
- The $399.5 million ( PANVX) Putnam New Value, with a median market capitalization of $19.3 billion, returned just 5.6% in 1998. The $4.5 billion ( NGUAX) Neuberger Berman Guardian fund, returned just 2.3%. Perhaps the year's biggest dud, the $18.2 billion ( VWNDX) Vanguard Windsor fund, returned an embarrassing 0.8%.