All Precious Metals Mutual Funds Fall in First Quarter 2003, According to Weiss Ratings; Health, Convertible, and Real Estate Only Fund Sectors to Deliver Positive Returns.Business Editors PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--May 8, 2003 In a marked turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. from the same period last year, all of the mutual fund industry's precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. funds posted negative returns for the first quarter of 2003, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies, mutual funds, and stocks. Precious metals funds lost an average of 11.62 percent during the first three months of 2003, compared to an average gain of 35.92 percent for the same period in 2002. "This is a good example of the risks of chasing the hottest sector," warned David Lackey, president of Weiss Ratings, Inc. "Sector chasing may work for nimble nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. , but most investors are better off establishing a diversified diversified (di·verˑ·s portfolio that meets their individual risk profiles." Overall, 7,338, or 88.4 percent, of the 8,300 stock mutual funds studied by Weiss delivered negative returns, resulting in an average first quarter loss of 3.66 percent for all stock funds. Those recording the largest losses for the first quarter include:
Weiss 1st Qtr 1-Year
Fund Investment 2003 Annual
Fund Name Sector Rating Return Return
------------------------------------------- ---------- ------- -------
Perkins Opportunity Fund Small Cap D -29.88 -39.40
(POFDX)
ProFunds-Telecom UltraSector Svc Aggressive
(TCPSX) Growth U -23.58 -54.90
Frontier Fund-Equity Small Cap E- -19.23 -74.07
(FEFPX)
Matthews Korea Fund Foreign C -19.03 -32.12
(MAKOX)
Touchstone Intl Equity Fund B
(TIEBX) Foreign U -15.80 -37.35
------------------------------------------- ---------- ------- -------
Weiss Investment Ratings: A = Excellent; B = Good; C = Fair; D = Weak;
E = Very Weak; U = Unrated
Meanwhile, the only fund sectors to post positive returns for the quarter were health-related funds, funds invested in convertible securities,(1) and real estate-related funds, which registered modest returns of 0.96 percent, 1.81 percent, and 1.33 percent, respectively. Stock funds recording the largest gains during the first quarter include:
1st
Weiss Qtr 1-Year
Fund Investment 2003 Annual
Fund Name Sector Rating Return Return
--------------------------------- ---------- ---------- ------ -------
Amerindo Technology D Technology E- 24.43 -8.18
(ATCHX)
Royce Trust & GiftShares Cons
(RGFCX) Small Cap B+ 24.31 4.27
Polynous Growth Fund Growth B- 21.27 -25.90
(PAGFX)
ProFunds-Internet UltraSector Inv Aggressive
(INPIX) Growth U 14.16 -38.31
Apex Mid-Cap Growth Fund Mid Cap E- 13.89 -33.33
(BMCGX)
--------------------------------- ---------- ---------- ------ -------
Weiss Investment Ratings: A = Excellent; B = Good; C = Fair; D = Weak;
E = Very Weak; U = Unrated
Bond Funds Remain a Safe Haven 1. Designated area(s) to which noncombatants of the United States Government's responsibility and commercial vehicles and materiel may be evacuated during a domestic or other valid emergency. 2. for Investors Investors continued to find safety in bonds, with 97.9 percent of bond mutual funds Bond mutual fund A mutual fund which primarily or exclusively holds bonds. reporting positive returns in the first quarter, for an average gain of 1.42 percent on all bond funds. Of the 4,348 bond mutual funds reviewed by Weiss, those recording the largest returns during the first three months of 2003 include:
1st
Weiss Qtr 1-Year
Fund Investment 2003 Annual
Fund Name Sector Rating Return Return
---------------------------------- --------- ---------- ------ -------
Fidelity Adv Hi Income Advantage Corporate
(FAHCX) - High
Yield E 10.78% 8.32%
PIMCO Emerging Mkts Bond Emerging
(PEBIX) Mkt
Income C+ 10.47% 16.11%
Alliance Emerging Mkt Debt A Global
(AGDAX) Income C+ 10.40% 18.72%
SEI Intl Tr-Emerging Mkts. Debt Emerging
(SITEX) Mkt
Income C+ 9.79% 13.06%
TCW Galileo Emerging Mkt Income Emerging
(TGEIX) Mkt
Income C+ 8.44% 17.83%
---------------------------------- --------- ---------- ------ -------
Weiss Investment Ratings: A = Excellent; B = Good; C = Fair; D = Weak;
E = Very Weak; U = Unrated
In addition to rating the risk-adjusted performance of more than 12,000 equity and fixed income mutual funds, Weiss also issues investment ratings on more than 7,000 stocks and safety ratings on more than 15,000 financial institutions, including banks, insurers, and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. firms. Weiss Ratings is the only major rating agency that receives no compensation from the companies it rates. Consumers can purchase a rating for as little as $7.95 through www.WeissRatings.com, or starting at $15 by calling 800-289-9222. (1) Convertible mutual funds assets are normally invested in at least 80 percent of convertible securities, which can be convertible preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. or lower quality debt securities with high share prices that perform like a stock. These funds can also be convertible bonds, which would be debt securities with a low underlying share price. |
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