Diversify & conquer: experienced management and varied investment vehicles are key to beating lackluster returns. Here are 100 funds that hit the mark.

WHILE OIL PRICES SOARED FROM roughly $43 per barrel in early January to more than $55 by midyear, the broad market hasn't performed nearly as impressively, In fact, with a few exceptions, neither stock nor bond funds have taken off.

So what's an investor to do? Diversification is the key. "I mix it up," says Steve Noakes, a consultant who specializes in information security in Falls Church, Virginia. "I have funds holding small-, mid-, and large-cap stocks, along with international stocks." This approach puts Noakes in a position to gain if one area of the market gets hot, and it protects him against steep losses such as those suffered by tech-heavy investors from 2000 to 2002.

For the last 15 years, Noakes has invested in Fidelity Destiny II, a fund that held 111 different stocks at last report. With this fund, investors commit to monthly contributions for at least 10 years.

"Investors should have a little bit of everything," says Ivory Johnson, director of financial planning at The Scarborough Group in Annapolis, Maryland. "Every asset class has its day in the sun, and you can't predict which will shine in the next six months. By filling in all the categories, you can reduce the volatility of your portfolio."

Johnson says real estate mutual funds are among his most desirable holdings. The following were key trends in mutual fund performance in the first half of the year:

* Domestic stock funds posted slight losses (performance was down less than 1%). Value funds topped growth funds. Mid value, small value, real estate investment trusts, corporate bonds, and emerging markets were all up more than 2%.

* After natural resources, stock funds were led by two other niche categories: Latin American funds (up 11.78%) and utilities funds (up more than 10%).

* On the bright side, there were no enormous losers. The worst performers were precious metals funds and technology funds, both down more than 5%.

* World stock funds, too, posted modest losses in the first half. Emerging markets stock funds (up 4.92%) did well.

* Emerging markets bond funds did even better, up 5.28%. More traditional bond funds generally provided smaller returns to investors.

Investors are hoping performances during the second half fare a bit better. "There are no obvious answers," says Cheryl Holland, president of Abacus Planning Group in Columbia, South Carolina.

Suppose, instead of diversifying, you put all your money into large-cap growth funds. Such funds are expected to be long-term winners but they can suffer severe losses in any given year. "If you're down 30% one year," says Johnson, "you have to gain 43% just to get back to where you were. By spreading your investments, you reduce the risk of taking such a huge loss."

For example, 2002 was the worst year in recent memory for domestic stock funds (down more than 22%), while bond and real estate funds registered gains. A diversified portfolio would have experienced losses much less than 22%.

Investing regularly as Noakes has done with Fidelity Destiny II is known as dollar-cost averaging, which assures you're buying when stocks are low as well as when they're high. Such long-term perseverance pays off: Fidelity Destiny II, for example, has returned nearly 13% per year for the last 15 years. With such results, an initial $10,000 investment would have grown to more than $60,000.

Make combination plans. Historically, investors seeking double-digit returns have found them in stock funds rather than bond funds. Nevertheless, a truly diversified portfolio will include some bond funds, which held up well while stocks plummeted from 2000 to 2002.

For instance, Bernee and Hillary Dunson of Atlanta, both 40, hold a mix of investments that includes individual stocks and real estate. "I also have a retirement plan at my dental practice," says Bernee. "There, I invest in mutual funds, which my wife and I select." Hillary says the retirement plan's largest holding is Buffalo High-Yield Fund. This fund, which primarily invests in "high-yield" (low-rated, or junk) bonds, delivered positive annual returns throughout the recent bear market for stocks and shows an annual return of about 9% for the last five years.

Portfolio diversification also affects how the Dunsons invest for their two young children, who are literally model youngsters. The children's photos are used to promote Bernee's dental practice. Not only does this provide a nice tax break (deductible payments for the dental practice and tax-free income to the children), it also gives the younger Dunsons money to invest.

"The money has been invested in Roth IRAs," says Lee Baker of Apex Financial Services in Tucker, Georgia, who serves as the Dunsons' financial planner. In 2005, up to $4,000 worth of earned income can be contributed by each child. Investment earnings are not taxed and, after age 59 1/2, withdrawals will be tax-free.

"The Roth IRA money is invested in mutual funds," says Baker. "The same is true for each child's 529 plan." Again, 529 plans offer tax-free investing, provided that the money is ultimately used for higher education.

For the young Dunsons, Baker recommends Virginia's 529 plan, choosing mutual funds run by American Funds. "Their money is in Investment Company of America for domestic stocks, New Perspective for global stocks, and Bond Fund of America," Baker says. "This is a nice mix of funds from a company that has done a good job of keeping costs low and providing excellent returns. The Roth IRA money is invested in American Funds Growth Fund of America, which rounds out their portfolios."

Hedge your bond bets. Investors seeking to include bond funds in a diversified portfolio need to be careful these days. "With a flat yield curve, you might be better off with short- and intermediate-term bond funds," says Johnson. "There are concerns that long-term interest rates will rise." That is, short-term bonds now yield nearly as much as long-term bonds. If you invest in long-term bond funds to get a little more yield, you'll risk losing principal, because long-term bonds lose value when interest rates rise.

"I also like TIPS funds," says Johnson, referring to mutual funds that invest in Treasury inflation-protected securities. These bonds, obligations of the federal government, will pay higher yields if inflation rises, as many forecasters expect. Johnson's firm has a policy that prohibits mentioning specific funds, but TIPS funds are available from several mutual fund families, including Fidelity, Vanguard, and PIMCO.

Mark Salzinger, who publishes the No-Load Fund Investor newsletter out of Brentwood, Tennessee, offers another way to reduce interest-rate risk in bond funds. "Fidelity's Floating Rate High Income Fund invests mainly in bank loans," he says. "If inflation increases and interest rates move up, the rates on those bank loans will go higher, so payments to investors will rise."

Stay well stocked. Among stock funds, Baker suggests that a core holding might be T. Rowe Price Total Equity Market Index Fund, which tracks the Dow Jones Wilshire 5000 Composite Index and thus provides exposure to the broad market. "Cutting expenses will pay off over the long term," he says, "and index funds tend to be less expensive than funds where the managers try to pick stocks."

If you prefer funds that try to beat the market rather than match a broad index, you should hold several funds that buy different types of stocks. Russ Kinnel, Morningstar's director of mutual fund research, expresses an interest in funds that hold large company growth stocks.

"I'm not arguing that large-growth is a sure-fire hit for the next 12 months," says Kinnel, "but you ought to get a pretty good return over the next five to 10 years. The managers of large-growth funds have very small cash positions, which signals that they are finding a lot of attractive investments." Over the last five years, large-cap growth funds have lost 8.32% per year while small-cap value stocks have returned 14.86% a year, so it may be time for the tables to turn.

Large-growth funds might get a boost from a familiar market sector: tech stocks. "If I had to pick one area for investing, it would be technology," says Johnson. "Corporations are holding as much cash now as they've had in the last 45 years, and a great deal of that cash probably will go to upgrade obsolete technology. Rather than invest in a specialized technology fund, I'd choose a diversified fund with a manager who has been successful enough in picking sectors to outperform the market for the past five or 10 years." Among Morningstar's favored large-cap growth funds, Fidelity Capital Appreciation and Vanguard Growth Equity have substantial exposure to information technology.

Growth funds can be balanced by value funds such as Artisan Mid Cap Value and TCW Galileo Dividend Focused Fund, which are Salzinger's selections. "Another way to diversify your portfolio," he says, "might be to invest in a fund that holds the stocks of companies that produce commodities, such as T. Rowe Price New Era."

Keep up with foreign affairs. Once you have determined your allocation of stock and bond funds, the third leg of the stool is international investing. "We don't want to have all of our eggs in the U.S. basket," says Holland. "We're concerned that the dollar may weaken." If the U.S. dollar loses ground, the stocks of foreign countries are likely to appreciate as their currencies move up in value.

"We have steadily recommended international allocations," says Holland, "including international small-cap and emerging markets funds for most clients. Altogether, about 20% of equity allocations are in international funds." Holland's favorite foreign funds include Harbor International (a value fund) and Artisan International (which holds growth stocks); for smaller accounts that may have room for just one foreign fund, she cites Vanguard Total International Stock Index Fund, which combines European, Pacific, and emerging markets indexes.

"For international investing," says Johnson, "China and India are poised for growth while the European Union seems to have problems. My preference is to invest in a world stock fund and let the manager pick the best companies. However, you might want to look and see if the manager has a history of investing in the high-growth areas of Asia."

Kinnel suggests combining Vanguard International Growth, a large-cap fund that does not hedge currency risk, with Tweedy, Browne Global Value, a fund that invests in smaller companies and hedges in order to protect U.S. investors from a weak dollar. "This strategy can provide more diversification for your overseas holdings," he says.

Thus, to diversify your mutual fund holdings you must go beyond buying a few funds holding the same blue-chip stocks; you need various types of assets, domestic and international. "Your mother and your grandmother probably told you not to put all your eggs in one basket," says Baker. "Well, they were absolutely right. You shouldn't try to catch the 'next big thing.' Instead, stick to a diversified portfolio."

B.E.'S TOP MUTUAL
FUND PERFORMERS

                                                  TICKER    1-YEAR
             FUND NAME                            SYMBOL    RETURN

Large        Old Westbury Mid Cap Equity          OWMCX      4.83%
Growth       Legg Mason Growth Trust Primary      LMGTX     -2.92
             Calvert Social Investment
               Equity A                           CSIEX      5.56
             Dreyfus Premier Alpha Growth T       BSFAX      6.03
             Fidelity Contrafund                  FCNTX     11.94

Mid          Delaware American Services A         DASAX     11.30
Growth       Eagle Growth                         EGRWX     17.22
             Meridian Growth                      MERDX      2.65
             Columbia Acorn Select Z              ACTWX     10.23
             Munder MidCap Select A               MGOAX     17.00

Small        Oberweis Micro-Cap                   OBMCX      2.27
Growth       Schroder U.S. Opportunities Inv      SCUIX     14.48
             John Hancock Small Cap A             DSISX     10.92
             Dreyfus Premier Future Leaders R     DFLRX      9.98
             Dreyfus Premier Future Leaders A     DFLAX      9.54

Large        Mairs & Power Growth                 MPGFX      5.96
Blend        Century Shares Trust                 CENSX      6.09
             AmSouth Select Equity A              ASECX     -2.13
             Thompson Plumb Growth                THPGX     -4.23
             Fidelity Select Food &
               Agriculture                        FDFAX      8.80

Mild         CGM Focus                            CGMFX     27.97
Blend        Fairholme                            FAIRX     25.37
             Kinetics Paradigm                    WWNPX     27.44
             RS Value                             RSVAX     29.24
             FPA Paramount                        FPRAX      8.88

Small        Bridgeway Ultra-Small Co. Mkt Fun    BRSIX      6.12
Blend        Texas Capital Value & Growth         TCVGX     20.39
             Stratton Small-Cap Value             STSCX     23.11
             Pacific Advisors Small Cap A         PASMX      4.38
             Strategic Partners Small
               Cap Value                          PZVAX     19.59

Large        Yacktman Focused                     YAFFX      7.37
Value        Yacktman                             YACKX      6.89
             John Hancock Classic Value A         PZFVX     10.43
             Clipper Focus PBHG                   PBFOX      4.60
             Oakmark Select I                     OAKLX      8.61

Mid          Fidelity Select Constr. & Housing    FSHOX     31.82
Value        Delafield                            DEFIX      9.48
             Phoenix Mid-Cap Value A              FMIVX     15.39
             Marshall Mid-Cap Value Inv           MRVEX     10.93
             Janus Mid Cap Value Investor         JMCVX     12.26

Small        Pacific Capital Small Cap A          PCSAX     14.65
Value        Berwyn                               BERWX     16.37
             Pacific CapitaI Small Cap B          PCSBX     13.78
             JPMorgan Small Cap Value A           PSOAX     12.20
             Legg Mason U.S. Small Cap
               Value Prim                         LMSVX     14.79

Moderate     Bruce                                BRUFX     27.83
Allocation   T. Rowe Price Capital
               Appreciation                       PRWCX     10.72
             Oakmark Equity & Income I            OAKBX      6.24
             EquiTrust Managed                    FBMGX      7.18
             Greenspring                          GRSPX      5.63

World        Polaris Global Value                 PGVFX     14.75%
Stock        Vanguard Global Equity               VHGEX     15.29
             Templeton Global Smaller Comp A      TEMGX     19.01
             Mutual Discovery A                   TEDIX     ]9.52
             Pearl Total Return                   PFTRX     13.06

Foreign      Fidelity Advisor Diversified
               Intl A                             FDVAX     14.22
Large        Marsico International
               Opportunities                      MIOFX      7.51
Growth       Fidelity Advisor Diversified
               Intl B                             FDIBX     13.22
             Laudus Int'l MarketMasters In        SWOIX     14.71
             MFS International Growth A           MGRAX     10.53

Foreign      Fidelity Canada                      FICDX     29.10
Large        Exeter World Opportunities A         EXWAX     15.40
Blend        Thornburg International Value A      TGVAX     15.77
             Vanguard International Value         VTRIX     14.94
             Members International Stock A        MINAX     18.71

Long-Term    American Cen. Target Mat 2025 Inv    BTTRX     36.56
Government   American Cen. Target Mat 2020 Adv    ACTEX     26.01
             Wasatch-Hoisington U.S. Treasury     WHOSX     25.69
             American Cen. Target Mat 2015 Inv    BTFTX     16.24
             PIMC0 Long-Term U.S. Gov'tA          PFGAX     15.17

Inter-       Vanguard Inflation-Protected Secs    VIPSX      9.07
mediate      American Century Inflat-Adj
               Bd Inv                             ACITX      8.95
Government   BlackRock Government Inc Inv A       CCGAX      7.01
             Vanguard Interm-Term U.S. Treas      VFITX      6.25
             PIMCO Total Return Mortgage D        PTMDX      6.01

Short-Term   Managers Intermediate
               Duration Govt                      MGIDX      5.33
Government   Marshall Government Income Inv       MRGIX      5.73
             Accessor Mortgage Securities Adv     AMSFX      5.15
             American Century Target
               Mat 2005 Inv                       BTFIX      1.59
             Allegiant Government Mortgage A      ARSAX      5.43

Long-Term    Delaware Extended Duration Bond A    DEEAX     16.35
Corporate    Vanguard Long-Term lnvest.-Grade     VWESX     17.76
Bond         Vanguard Long-Term Bond Index        VBLTX     16.81
             Lebenthal Taxable Municipal Bond     LTMBX     11.36
             Smith Barney Invest. Grade Bond A    SIGAX     11.95

Short-Term   Ivy Mortgage Securities A            IYMAX      5.52
Bond         Phoenix Multi-Sector S/T Bd A        NARAX      5.49
             UMB Scout Bond                       UMBBX      4.08
             Bremer Bond                          BBNDX      4.77
             Brown Advisory Inter. Income A       BIATX      4.19

High-Yield   Westcore Flexible Income             WTLTX     10.35
Bond         Pioneer High Yield A                 TAHYX      5.76
             Nations High Yield Bond Inv A        NAHAX      8.93
             AFBA Five Star High Yield I          AFHYX      4.22
             Calamos High Yield A                 CHYDX      8.75

Muni Nat'l   Harris Insight Tax-Exempt Bond N     HXBAX      6.65
Interme-     Delaware Tax-Free USA Interm. A      DMUSX      8.45
diate        Evergreen Municipal Bond A           EKEAX      8.54
             American Funds Tax-Exempt Bond A     AFTEX      7.38
             Federated Municipal Securities A     LMSFX      8.29

                                        3-YEAR             5-YEAR
FUND NAME                               RETURN             RETURN

Old Westbury Mid Cap Equity              4.23%               5.30%
Legg Mason Growth Trust Primary         22.35                3.14
Calvert Social Investment
  Equity A                               6.70                2.81
Dreyfus Premier Alpha Growth T           6.60                2.72
Fidelity Contrafund                     11.53                2.58

Delaware American Services A            17.87               16.33
Eagle Growth                             7.27               11.16
Meridian Growth                         11.03               11.14
Columbia Acorn Select Z                 14.49               10.11
Munder MidCap Select A                  17.19                8.95

Oberweis Micro-Cap                      23.13               12.59
Schroder U.S. Opportunities Inv         14.55               11.10
John Hancock Small Cap A                 9.79                9.33
Dreyfus Premier Future Leaders R        10.42                9.29
Dreyfus Premier Future Leaders A        10.01                8.91

Mairs & Power Growth                    11.52               11.16
Century Shares Trust                     7.57               11.06
AmSouth Select Equity A                  7.19                8.98
Thompson Plumb Growth                    7.41                8.61
Fidelity Select Food &
  Agriculture                            5.25                8.19

CGM Focus                               17.17               30.20
Fairholme                               17.65               18.67
Kinetics Paradigm                       22.17               16.88
RS Value                                28.43               16.72
FPA Paramount                           14.80               15.18

Bridgeway Ultra-Small Co. Mkt Fun       25.45               21.21
Texas Capital Value & Growth            19.40               20.45
Stratton Small-Cap Value                20.02               19.49
Pacific Advisors Small Cap A            19.97               17.78
Strategic Partners Small
  Cap Value                             18.83               17.49

Yacktman Focused                        14.52               17.97
Yacktman                                15.16               17.80
John Hancock Classic Value A            14.13               17.32
Clipper Focus PBHG                       6.34               13.73
Oakmark Select I                         9.50               13.70

Fidelity Select Constr. & Housing       18.85               22.54
Delafield                               14.09               18.76
Phoenix Mid-Cap Value A                 14.21               17.82
Marshall Mid-Cap Value Inv              13.75               16.61
Janus Mid Cap Value Investor            14.53               16.38

Pacific Capital Small Cap A             18.17               21.01
Berwyn                                  16.41               20.88
Pacific CapitaI Small Cap B             17.29               20.08
JPMorgan Small Cap Value A              11.87               18.34
Legg Mason U.S. Small Cap
  Value Prim                            13.20               18.26

Bruce                                   43.42               33.40
T. Rowe Price Capital
  Appreciation                          12.62               13.64
Oakmark Equity & Income I               10.46               13.03
EquiTrust Managed                        8.90               10.31
Greenspring                             10.32               10.18

Polaris Global Value                    17.72%              13.67%
Vanguard Global Equity                  15.32                9.49
Templeton Global Smaller Comp A         16.86                9.41
Mutual Discovery A                      13.69                9.39
Pearl Total Return                      12.36                8.92

Fidelity Advisor Diversified
  Intl A                                14.03                4.58
Marsico International
  Opportunities                         11.55                3.71
Fidelity Advisor Diversified
  Intl B                                13.01                3.66
Laudus Int'l MarketMasters In           13.46                1.64
MFS International Growth A              11.87                0.21

Fidelity Canada                         21.96               10.51
Exeter World Opportunities A            14.04                7.07
Thornburg International Value A         13.29                5.03
Vanguard International Value            12.72                3.18
Members International Stock A           14.09                3.08

American Cen. Target Mat 2025 Inv       18.46               13.34
American Cen. Target Mat 2020 Adv       15.11               12.28
Wasatch-Hoisington U.S. Treasury        12.90               10.99
American Cen. Target Mat 2015 Inv       11.78               10.96
PIMC0 Long-Term U.S. Gov'tA              9.67               10.25

Vanguard Inflation-Protected Secs        9.21                9.77
American Century Inflat-Adj
  Bd Inv                                 8.63                9.19
BlackRock Government Inc Inv A           5.73                8.14
Vanguard Interm-Term U.S. Treas          5.73                7.73
PIMCO Total Return Mortgage D            4.95                7.38

Managers Intermediate
  Duration Govt                          4.25                6.57
Marshall Government Income Inv           4.46                6.10
Accessor Mortgage Securities Adv         3.83                6.09
American Century Target
  Mat 2005 Inv                           3.24                6.05
Allegiant Government Mortgage A          3.87                5.92

Delaware Extended Duration Bond A       13.91               12.75
Vanguard Long-Term lnvest.-Grade        10.84               10.92
Vanguard Long-Term Bond Index           10.97               10.72
Lebenthal Taxable Municipal Bond         7.66                9.31
Smith Barney Invest. Grade Bond A        8.62                9.16

Ivy Mortgage Securities A                4.59                7.04
Phoenix Multi-Sector S/T Bd A            6.65                6.91
UMB Scout Bond                           3.78                5.98
Bremer Bond                              3.86                5.90
Brown Advisory Inter. Income A           4.44                5.89

Westcore Flexible Income                10.99                9.43
Pioneer High Yield A                    11.39                9.36
Nations High Yield Bond Inv A           13.47                9.12
AFBA Five Star High Yield I              9.97                8.91
Calamos High Yield A                    11.01                8.74

Harris Insight Tax-Exempt Bond N         5.50                7.24
Delaware Tax-Free USA Interm. A          6.28                6.85
Evergreen Municipal Bond A               5.88                6.54
American Funds Tax-Exempt Bond A         5.41                6.50
Federated Municipal Securities A         5.49                6.39

                                    MINIMUM INITIAL
FUND NAME                             INVESTMENT           PHONE

Old Westbury Mid Cap Equity             $1,000         800-607-2200
Legg Mason Growth Trust Primary          1,000         800-822-5544
Calvert Social Investment
  Equity A                               1,000         800-368-2748
Dreyfus Premier Alpha Growth T           1,000         800-554-4611
Fidelity Contrafund                      2,500         800-343-3548

Delaware American Services A             1,000         800-362-7500
Eagle Growth                               500         800-749-9933
Meridian Growth                          1,000         800-446-6662
Columbia Acorn Select Z                  1,000         800-345-6611
Munder MidCap Select A                   2,500         800-468-6337

Oberweis Micro-Cap                       1,000         800-323-6166
Schroder U.S. Opportunities Inv         10,000         800-464-3108
John Hancock Small Cap A                 1,000         800-225-5291
Dreyfus Premier Future Leaders R         1,000         800-334-6899
Dreyfus Premier Future Leaders A         1,000         800-334-6899

Mairs & Power Growth                     2,500         800-304-7404
Century Shares Trust                   250,000         800-321-1928
AmSouth Select Equity A                  1,000         800-451-8382
Thompson Plumb Growth                    2,500         800-999-0887
Fidelity Select Food &
  Agriculture                            2,500         800-343-3548

CGM Focus                                2,500         800-345-4048
Fairholme                                2,500         866-202-2263
Kinetics Paradigm                        2,500         800-930-3828
RS Value                                 5,000         800-766-3863
FPA Paramount                            1,500         800-982-4372

Bridgeway Ultra-Small Co. Mkt Fun        2,000         800-661-3550
Texas Capital Value & Growth             2,000         800-880-0324
Stratton Small-Cap Value                 2,000         800-634-5726
Pacific Advisors Small Cap A                 0         800-989-6693
Strategic Partners Small
  Cap Value                              1,000         800-225-1852

Yacktman Focused                         2,500         800-525-8258
Yacktman                                 2,500         800-525-8258
John Hancock Classic Value A             1,000         800-225-5291
Clipper Focus PBHG                       2,500         800-433-0051
Oakmark Select I                         1,000         800-625-6275

Fidelity Select Constr. & Housing        2,500         800-343-3548
Delafield                                5,000         800-221-3079
Phoenix Mid-Cap Value A                    500         800-243-1574
Marshall Mid-Cap Value Inv               1,000         800-236-8560
Janus Mid Cap Value Investor             2,500         800-525-3713

Pacific Capital Small Cap A              1,000         800-258-9232
Berwyn                                   3,000         800-992-6757
Pacific CapitaI Small Cap B              1,000         800-258-9232
JPMorgan Small Cap Value A               1,000         800-480-4111
Legg Mason U.S. Small Cap
  Value Prim                             1,000         800-577-8589

Bruce                                    1,000         800-872-7823
T. Rowe Price Capital
  Appreciation                           2,500         800-638-5660
Oakmark Equity & Income I                1,000         800-625-6275
EquiTrust Managed                          250         877-860-2904
Greenspring                              2,000         800-366-3863

Polaris Global Value                    $2,500         888-263-5594
Vanguard Global Equity                   3,000         800-662-7447
Templeton Global Smaller Comp A          1,000         800-342-5236
Mutual Discovery A                       1,000         800-342-5236
Pearl Total Return                       3,000         866-747-9030

Fidelity Advisor Diversified
  Intl A                                 2,500         877-208-0098
Marsico International
  Opportunities                          2,500         888-860-8686
Fidelity Advisor Diversified
  Intl B                                 2,500         877-208-0098
Laudus Int'l MarketMasters In            2,500         800-435-4000
MFS International Growth A               1,000         800-225-2606

Fidelity Canada                          2,500         800-343-3548
Exeter World Opportunities A             2,000         800-466-3863
Thornburg International Value A          5,000         800-847-0200
Vanguard International Value             3,000         800-662-7447
Members International Stock A            1,000         800-877-6089

American Cen. Target Mat 2025 Inv        2,500         800-345-2021
American Cen. Target Mat 2020 Adv        2,500         800-345-2021
Wasatch-Hoisington U.S. Treasury         2,000         800-551-1700
American Cen. Target Mat 2015 Inv        2,500         800-345-2021
PIMC0 Long-Term U.S. Gov'tA              5,000         888-877-4626

Vanguard Inflation-Protected Secs        3,000         800-662-7447
American Century Inflat-Adj
  Bd Inv                                 2,500         800-345-2021
BlackRock Government Inc Inv A             500         800-441-7762
Vanguard Interm-Term U.S. Treas          3,000         800-662-7447
PIMCO Total Return Mortgage D            5,000         888-877-4626

Managers Intermediate
  Duration Govt                          1,000         800-835-3879
Marshall Government Income Inv           1,000         800-236-8560
Accessor Mortgage Securities Adv         5,000         800-882-9612
American Century Target
  Mat 2005 Inv                           2,500         800-345-2021
Allegiant Government Mortgage A            500         800-622-3863

Delaware Extended Duration Bond A        1,000         800-362-7500
Vanguard Long-Term lnvest.-Grade         3,000         800-662-7447
Vanguard Long-Term Bond Index            3,000         800-662-7447
Lebenthal Taxable Municipal Bond         2,500         800-221-5822
Smith Barney Invest. Grade Bond A        1,000         800-451-2010

Ivy Mortgage Securities A                  500         800-777-6472
Phoenix Multi-Sector S/T Bd A              500         800-243-4361
UMB Scout Bond                           1,000         800-996-2862
Bremer Bond                              2,000         800-595-5552
Brown Advisory Inter. Income A           2,000         800-540-6807

Westcore Flexible Income                 2,500         800-392-2673
Pioneer High Yield A                     1,000         800-225-6292
Nations High Yield Bond Inv A            1,000         800-321-7854
AFBA Five Star High Yield I                500         800-243-9865
Calamos High Yield A                     2,500         800-823-7386

Harris Insight Tax-Exempt Bond N         1,000         800-982-8782
Delaware Tax-Free USA Interm. A          1,000         800-523-4640
Evergreen Municipal Bond A               1,000         800-343-2898
American Funds Tax-Exempt Bond A           250         800-421-0180
Federated Municipal Securities A         1,500         800-341-7400

SOURCE: MORNINGSTAR INC. MORNINGSTAR MAKES EVERY EFFORT TO ENSURE THE
ACCURACY AND COMPLETENESS OF THIS DATA, BUT CANNOT GUARANTEE IT, TOP
FUNDS IN EACH CATEGORY, RANKED BY FIVE-YEAR RETURNS, OPEN TO THE
PUBLIC. RETURNS THROUGH JUNE 30, 2005