Shifting gears.Changes in the market create new leaders among bLack funds How times have changed. For the most part, 1999 was a good year for the 15 equity mutual funds that make up the BLACK ENTERPRISE Black Mutual Funds index (average 1-year total return: 21.22%; average six-month total return, ending Dec. 31, 1999: 8.97%). The first two quarters of 2000 has produced less than sterling results (Year-to-date, ending July 31:-.30%). To put it in context, the average domestic equity fund gained 4% for the first six months of 2000, 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. Morningstar, the Chicago-based mutual fund research company (see "Asset Allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. Comeback Comeback Australian breed of wool sheep, bred by crossing Merino with Corriedale, Polwarth or Zenith sheep; wool is 21 to 25 microns. It is a registered breed, but the term is more commonly used in the sense of a type of sheep produced by crossbreeding a crossbred Merino back to Merino. ," in this issue). In fact, there has been a dramatic shift in the leadership among the equity funds on the list. One such fund portrayed por·tray tr.v. por·trayed, por·tray·ing, por·trays 1. To depict or represent pictorially; make a picture of. 2. To depict or describe in words. 3. To represent dramatically, as on the stage. the comeback kid, while another leading portfolio fell prey to the volatile tech sector. The new king of the hill is the $257 million Ariel Fund (ARGFX). Run by John W. Rogers Jr., the fund has been unappreciated for years in a market that has favored large-cap growth equities. Roger's strategy of buying niche players has seemingly seem·ing adj. Apparent; ostensible. n. Outward appearance; semblance. seem  ing·ly adv. paid off: The fund's
year-to-date total return was 11.06%. The fund's holdings include
Central Newspapers (NYSE NYSESee: New York Stock Exchange : ECP (Enhanced Capabilities Port) See IEEE 1284. 1. ECP - Engineering Change Proposal. 2. ECP - Enhanced Capabilities Port. 3. ECP - Extended Capabilities Port. 4. ECP - Extended Concurrent Prolog. ), a newspaper chain which has a "monopoly" in the Phoenix and Indianapolis markets; Herman Miller Herman Miller may refer to:
What an about-face. For the six-month period, ending December 31, 1999, the fund posted a negative return of 7.34%. And its annual return for that year was also less than sterling: a negative return of 5.76%. However, Ariel's Appreciation fund (CAAPX) has produced a better, but not yet bravura bra·vu·ra n. 1. Music a. Brilliant technique or style in performance. b. A piece or passage that emphasizes a performer's virtuosity. 2. A showy manner or display. adj. 1. , performance during the past two quarters. The portfolio produced a total return of 2.87%, so far this year vs. a negative total return of 10.46% for the last six months of 1999. When we reviewed the index in our April 2000 issue, the undisputed leader was the DEM See digital elevation model. Equity Investor fund (DEMEX), which produced a cumulative total return of 90.19% for the six months ending December 31 and a staggering one-year total return of 113.61%. Talk about reversal of fortune: The fund's year-to-date total return, ending July 31 was a negative 4.45%. DEM (domestic emerging markets), a growth fund that invests in companies run by women or minorities, is managed by Nathan A. Chapman Jr., president of Baltimore-based Chapman Capital Management, who placed a huge bet on the ultra-volatile technology sector At one point, the fund had as much as 15% of its assets in Broadvision (Nasdaq: BVSN BVSN Broadvision, Inc. (stock abbreviation, AMEX) ), which develops and markets application software solutions for e-businesses. At press time, the stock traded for $31.25, more than 65% off its 52-week high of $90.67 per share. Chapman didn't explore negative territory alone: 10 funds produced returns under 3%. One-time stellar performers like Lou Holland Growth (LHGFX) couldn't even muster TO MUSTER, mar. law. By this term is understood to collect together and exhibit soldiers and their arms; it also signifies to employ recruits and put their names down in a book to enroll them. a single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. over the past seven months: a puny pu·ny adj. pu·ni·er, pu·ni·est 1. Of inferior size, strength, or significance; weak: a puny physique; puny excuses. 2. Chiefly Southern U.S. Sickly; ill. return of 0.96%. With a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. of the economy, on one hand, and the continued volatility of the tech sector, on the other, the performance of these funds over the next two quarters will be telling.
B.E. BLACK MUTUAL FUNDS INDEX
Year-to-Date 12-Month
Total Total
Fund Name (Ticker) Return(*) Return
STOCK FUNDS
Ariel Appreciation (CAAPX) 2.87 -6.50
Ariel Fund (ARGFX) 11.06 2.03
Brown Capital Balanced (BCBIX) 2.51 7.65
Brown Capital Equity Institutional
(BCEIX) 4.22 12.27
Brown Capital Small Co.(BCSIX) 8.96 42.15
DEM Equity Institutional (DEMNX) -4.01 91.61
DEM Equity Investor (DEMEX) -4.45 90.06
Edgar Lomax Value (LOMAX) -9.52 -14.43
Kenwood Growth & Income (KNWDX) -4.74 -12.18
Lou Holland Growth (LHGFX) 0.96 8.70
MDL Large-Cap Equity Growth (MLGEX) -3.56 6.38
Profit Value (PVALX) 5.42 23.36
SRI Equity (N/A)(**) -4.49 18.88
Unity Fund(**) -9.00 14.55
Victory Lakefront (VLAKX) -1.09 -0.06
BOND FUND
Ariel Premier Bonds Institutional
(APBFX) 3.94 4.77
MDL Broad Market Fixed Income
(MBMFX) 4.78 5.19
3-Year 5-year
Total Total
Fund Name (Ticker) Return Return
STOCK FUNDS
Ariel Appreciation (CAAPX) 11.12 17.59
Ariel Fund (ARGFX) 9.57 16.13
Brown Capital Balanced (BCBIX) 13.70 14.65
Brown Capital Equity Institutional
(BCEIX) 22.07 18.48
Brown Capital Small Co.(BCSIX) 23.40 22.34
DEM Equity Institutional (DEMNX) N/A N/A
DEM Equity Investor (DEMEX) N/A N/A
Edgar Lomax Value (LOMAX) N/A N/A
Kenwood Growth & Income (KNWDX) 0.97 N/A
Lou Holland Growth (LHGFX) 14.98 N/A
MDL Large-Cap Equity Growth (MLGEX) N/A N/A
Profit Value (PVALX) 20.99 N/A
SRI Equity (N/A)(**) 17.48 22.43
Unity Fund(**) N/A N/A
Victory Lakefront (VLAKX) 7.93 N/A
BOND FUND
Ariel Premier Bonds Institutional
(APBFX) 4.39 N/A
MDL Broad Market Fixed Income
(MBMFX) N/A N/A
Telephone Minimum
Fund Name (Ticker) Number Investment
STOCK FUNDS
Ariel Appreciation (CAAPX) 800-292-7435 $1,000
Ariel Fund (ARGFX) 800-292-7435 1,000
Brown Capital Balanced (BCBIX) 800-525-3863 10,000
Brown Capital Equity Institutional
(BCEIX) 800-525-3863 10,000
Brown Capital Small Co.(BCSIX) 800-525-3863 10,000
DEM Equity Institutional (DEMNX) 800-752-1013 25,000
DEM Equity Investor (DEMEX) 800-752-1013 25
Edgar Lomax Value (LOMAX) 800-385-7003 2,500
Kenwood Growth & Income (KNWDX) 312-368-1666 2,000
Lou Holland Growth (LHGFX) 800-295-9779 2,000
MDL Large-Cap Equity Growth (MLGEX) 877-635-3863 500
Profit Value (PVAILX) 888-744-2337 2,500
SRI Equity (N/A)(**) 877-211-6300 25,000(***)
Unity Fund(**) 888-229-2105 1,000
Victory Lakefront (VLAKX) 800-539-3863 500
BOND FUND
Ariel Premier Bonds Institutional
(APBFX) 800-292-7435 $1,000
MDL Broad Market Fixed Income
(MBMFX) 877-635-3863 500
(*) As of 7/31/00. (**) No ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. , fund is ineligible in·el·i·gi·ble adj. 1. Disqualified by law, rule, or provision: ineligible to run for office; ineligible for health benefits. 2. for listing on an exchange. (***) Only open to retail investors Retail Investor Individual investors who buy and sell securities for their personal account, and not for another company or organization. Notes: Retail investors buy in much smaller quantities than larger institutional investors. through retirement plans Source: Morningstar Inc.; Liberty Freedom |
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