| August 2006
In the August
edition of Mutual Fund Focus, we look at how difficult it is for mutual
funds ranked in the upper quartiles to retain those rankings. We also
take a look at a study that indicates superior performance for lifestyle
funds and report on a recent buyout. These and many other intriguing
articles and interviews are available at www.investmentadvisor.com in the Hot Topics section
under Mutual Funds.
HARD TO KEEP UP
FUND PERFORMANCE
Standard & Poor's latest mutual fund
persistence scorecard, released in mid-August, found that through June
30, very few funds were able to consistently repeat top half or top
quartile performance.
Over five-years ending June 30, 2006, only
58 (10.8%) large-cap funds, 12 (7.9%) mid-cap funds, and 19 (7.7%)
small-cap funds maintained a top-half ranking over five consecutive
12-month periods, S&P found. A total of three large-cap funds
(1.12%), zero mid-cap funds, and one small-cap fund (0.81%) maintained a
top-quartile ranking over the same period.
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text
LIFESTYLE FUNDS
DELIVER
It looks like the popularity of Lifestyle funds is paying
off. John Hancock has found that participants in its 401(k) plans who
invested only in a target-risk Lifestyle Portfolio from 2001 to 2005 got
better returns than John Hancock plan participants who chose their own
asset allocations. The survey, conducted by Burgess + Associates for
John Hancock, compared investment returns of more than 162,000 John
Hancock USA 401(k) plan participants and also found that 93.5% of these
Lifestyle participants experienced results superior to the S&P 500
Index.
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text
MUNDER MANAGERS
AND PARTNERS BUY FIRM
Led by senior management and portfolio
managers, Birmingham, Michigan-based Munder Capital Management will team
up with Crestview Partners, L.P., and Grail Partners, LLC, to pay
Comerica $302 million plus Munder’s stake in World Asset
Management, for Comerica’s 90% interest in Munder Capital
Management. The deal is slated to close, subject to regulatory
approvals, before year-end.
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text
© 2006 Wicks Business Information, LLC
 |
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