Rough ride to recovery: black-owned mutual funds brace for a bumpy bull ride.Welcome to a whole new world. The stock market has rellied over the last few months after three years of gloom and doom gloom and doom n. A deeply pessimistic outlook or feeling. gloom  -and-doom surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. a weak dollar, war with Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. , and the highest unemployment rates in years. As a result, black-owned funds faced a particularly tough task: to stay in business until the market bounces Bounces is a 1985 sports/fighting game released for the Commodore 64 and ZX Spectrum. Points are scored by catching and throwing the bouncing ball into a goal, or by knocking the opponent out with the ball or hand-to-hand combat. back. Only two funds from our October October: see month. 2003 list failed their mission: DEM See digital elevation model. Equity Institutional (DEMNX) and DEM Equity Investor (DEMEX). Both were run by Nathan Nathan (nā`thən), in the Bible. 1 Court prophet in the time of David and Solomon. He announced the oracle to David concerning his dynasty. He confronted David over David's adultery with Bath-sheba and over her husband's murder. Chapman who was recently indicted INDICTED, practice. When a man is accused by a bill of indictment preferred by a grand jury, he is said to be indicted. on federal charges for mail fraud, wire fraud, and securities fraud. Most of the funds on the BLACK ENTERPRISE Mutual Funds Index, however, completed the task with Ariel Capital Management leading the pack with the Ariel fund (ARGFX). The small-cap Small-cap A stock with a small capitalization, meaning a total equity value of less than $500 million. small-cap 1. Of or relating to the common stock of a relatively small firm having little equity and few shares of common stock value fund posted a three-year average annual total return of 14.90% as of October 7. "Our patient approach to investing is perceived to be more valuable than ever. People realize that trying to get rich quick can lead to difficult returns," says John W. Rogers Jr., CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Ariel Mutual Funds in Chicago. The bond market has gained great momentum in what has been a bear of a market for stocks. Consequently, MDL MDL - (Originally "Muddle"). C. Reeve, Carl Hewitt and Gerald Sussman, Dynamic Modeling Group, MIT ca. 1971. Intended as a successor to Lisp, and a possible base for Planner-70. Basically LISP 1.5 with data types and arrays. Broad Market Fixed Income (MBMFX), an intermediate government fund, enjoyed the ride with a 7% return over the past three years. "Obviously, bonds have had a great run. Our fund's assets have increased from $20 million to approximately $50 million over the last year and a half," remarks Mark D. Lay, chairman and chief investment strategist strat·e·gist n. One who is skilled in strategy. Noun 1. strategist - an expert in strategy (especially in warfare) strategian market strategist - someone skilled in planning marketing campaigns of MDL Capital Management Inc. in Pittsburgh. But will that phenomenal growth sustain itself? "Over the next 12 months, bonds will have a rough time because of the increasing money supply happening here and abroad," says Lay. He surmises that, yes, the economy is going into a rising interest environment--which means bond prices will fall--but he's confident that "with equities not doing well recently, people now understand the importance of bonds." For black-owned funds, branding is the key to survival. "With the exception of top firms, the complications that black firms are facing [staying in business] are ferocious fe·ro·cious adj. 1. Extremely savage; fierce. See Synonyms at cruel. 2. Marked by unrelenting intensity; extreme: ferocious heat. ," says Lay. "They are putting a lot of money into advertising and television, [and that's key, because] if people aren't seeing your product then they aren't going to call."
B.E. BLACK FUND INDEX
1-Year Ann. 3-Year Ann.
Found Name (Ticker) Total Return* Total Return*
Ariel (ARGFX) 30.00% 14.90%
Ariel Appreciation (CAAPAX) 38.65 12.45
Ariel Premier Bond Instl (APBFX) 4.41 7.98
Ariel Premier Growth Inv (APGFX) 29.79 N/A
Brown Cap Mgmt Balanced Instl (BCBIX) 27.78 -7.29
Brown Cap Mgmt Equity Instl (BCEIX) 35.71 -12.18
Brown Cap Mgmt Small Co Instl (BCSIX) 60.43 -2.24
Edgar Lomax Value (LOMAX) 26.78 1.88
Kenwood Growth & Inc (KNWDX) 41.41 5.83
Lou Holland Growth (LHGFX) 33.50 -4.78
MDL Broad Market F/I (MBMFX) .70 7.00
Profit Value (PVALX) 41.09 -7.60
5-Year Ann. Toll-Free
Found Name (Ticker) Total Return* Number
Ariel (ARGFX) 14.83 800-292-7435
Ariel Appreciation (CAAPAX) 13.74 800-292-7435
Ariel Premier Bond Instl (APBFX) 5.81 800-292-7435
Ariel Premier Growth Inv (APGFX) N/A 800-292-7435
Brown Cap Mgmt Balanced Instl (BCBIX) 2.18 800-525-3863
Brown Cap Mgmt Equity Instl (BCEIX) 1.36 800-525-3863
Brown Cap Mgmt Small Co Instl (BCSIX) 16.62 800-525-3863
Edgar Lomax Value (LOMAX) 3.23 866-205-0524
Kenwood Growth & Inc (KNWDX) 7.99 888-536-3863
Lou Holland Growth (LHGFX) 4.70 800-295-9779
MDL Broad Market F/I (MBMFX) 4.56 877-635-3863
Profit Value (PVALX) 8.04 888-744-2337
Minimum
Found Name (Ticker) Initial Investment
Ariel (ARGFX) $ 1,000
Ariel Appreciation (CAAPAX) 1,000
Ariel Premier Bond Instl (APBFX) 1,000,000
Ariel Premier Growth Inv (APGFX) 1,000
Brown Cap Mgmt Balanced Instl (BCBIX) 10,000
Brown Cap Mgmt Equity Instl (BCEIX) 10,000
Brown Cap Mgmt Small Co Instl (BCSIX) 10,000
Edgar Lomax Value (LOMAX) 2,500
Kenwood Growth & Inc (KNWDX) 2,000
Lou Holland Growth (LHGFX) 250
MDL Broad Market F/I (MBMFX) 500
Profit Value (PVALX) 2,500
*AS OF OCTOBER 7, 2003. SOURCE: MORNINGSTAR INC.
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