Mutual Funds Paid Off Big During Quarter : Investments: Lipper Analytical Services, which tracks performance, said only gold-oriented and world-income sectors declined in early ’91.
Mutual fund investors made a bundle in the first quarter of 1991.
Whether they invested in small companies, growth stocks, high technology, banks, real estate or health, they raked in gratifying paper profits, according to Lipper Analytical Services, which tracks mutual fund performance.
Only two categories of mutual funds were net losers during the three months: gold-oriented funds, which invest in gold and gold mining companies, and world-income funds, which often invest in foreign currencies and bonds.
Otherwise, this was the kind of quarter that makes people flock to the stock market.
The value of the average health and biotechnology fund jumped 30.25% during the period, Lipper said. The second-best performing group was science and technology funds, up 25.75%. That was closely followed by small-company growth funds, up 25.56%; financial services funds, up 24.65%, and real estate funds, jumping 22.03%.
A variety of factors boosted mutual fund performance last quarter, said A. Michael Lipper, president of Lipper Analytical. First and foremost, the stock market, which tanked last October, staged a steep and broad-based rally.
Small-company stocks tended to do better than the shares of big companies. That’s good for mutual fund performance because these funds tend to hold a large number of shares in small and mid-size firms, Lipper said.
The two top performers were the American Heritage fund, which jumped 54.17% and the Prudent Speculator:Leveraged fund, up 48.32%. Both borrow to invest in the stock market, which improves their performance when the market does well but hurts it when stocks decline.
The quarter’s worst performing funds were invested in gold and currency. Strategic Investments, which buys gold and silver mining stocks, was the biggest loser, sliding 22.22%. Seven other precious-metals funds were among the 10 worst, losing 15% to 9% in value in the first few months of 1991.
Fidelity Investments and Shearson Lehman took a bath on funds that invest in the German mark, which hit record lows against the dollar this year. The funds declined in value 10.70% and 11.02%, respectively.
MUTUAL FUND PERFORMANCE (Appreciation plus reinvested income and capital gains, listed in percent) QUARTER ENDED MARCH 31, 1991 Top Performers American Heritage Fund: 54.17% Prudent Speculator: Leveraged: 48.32 Oberweis Emerging Growth: 43.85 T. Rowe Price Science & Tech.: 43.58 Fidelity Select Medical: 41.61 Twentieth Century: Ultra Investors: 40.75 Fidelity Select Biotechnology: 40.42 Transamerica Technology Fund: 39.61 Montgomery: Small Capitalization Fund:39.57 Oppenheimer Global Biotech Fund:38.97 S&P; 500 (dividends reinvested):+14.51 All equity funds average: +11.61 Worst Performers Strategic Investments: -22.22% Rushmore: Precious Metals Index: -14.58 Strategic Gold/Minerals: -13.37 Behman Equity: Gold Equities Index: -11.87 U.S.: Gold Shares Fund: -11.64 Shearson Currency: Deutsch Mark: -11.02 Blanchard Precious Metals: -10.76 Fidelity Deutsch Mark Performance:-10.70 Kemper Gold Fund: -9.61 U.S.: World Gold Fund: -9.51 YEAR ENDED MARCH 31, 1991 Top Performers Fidelity Select Biotechnology: 92.12% Fidelity Select Medical: 79.94 Fidelity Select Health Fund: 72.27 Financial Portfolio: Health Fund: 69.04 Twentieth Century: Ultra Investors: 60.91 Oppenheimer Global Biotechnology: 59.98 Putnam Health Science: 46.69 Equity Portfolio: Growth Fund:46.60 Phoenix Multi-Portfolio: Cap. Apprec.: 43.84 Founders: Discover Fund: 42.53 S&P; 500 (dividends reinvested): +14.40 All equity funds average: +11.78 Worst Performers Strategic Investments: -43.21% Strategic Silver: -37.42 Strategic Gold/Minerals: -36.38 U.S.: Gold Shares: -33.77 Steadman Oceanographic: -33.51 Rushmore: Precious Metals Index: -31.74 U.S.: World Gold Fund: -28.03 Bull & Bear Special Equities Fund: -27.11 Financial Portfolio: Gold Fund: -25.83 Kemper Gold Fund: -25.72 FIVE YEARS ENDED MARCH 31, 1991 Top Performers Delaware DelCap Fund: Concept 1:342.70% Financial Portfolio: Health: 254.42 DFA Group: Japan Small Company: 216.90 GT Global Japan: 193.02 GT Global Pacific: 174.77 Transamerica Technology: 160.68 Fidelity Select Health: 156.93 Fidelity Select Food & Ag.: 149.71 Nomura Pacific Basin Fund: 145.53 First Investors Global Fund: 144.30 S&P; 500 (dividends reinvested): +86.34 All equity funds average: +92.94 Worst Performers Strategic Gold/Minerals:-59.94% Steadman Oceanographic: -58.84 Steadman American Industry: -48.53 Dividend/Growth: Growth Series: -46.71 Strategic Investments: -43.17 44 Wall Street Fund: -40.50 American Heritage Fund: -39.95 Strategic Silver: -26.79 Quantum Fund: -25.20 Pilgrim Corp. Investors Fund: -22.71 GROUP PERFORMANCE (periods ended March 31, 1991)
Quarter Year Five Years Health/Biotechnology Funds +30.25% +59.04% +150.45% Science and Technology Funds +25.75 +18.60 +69.09 Small Company Growth Funds +25.56 +14.88 +48.08 Financial Services Funds +24.65 +11.47 +23.75 Capital Appreciation Funds +18.39 +11.59 +57.29 Growth Funds +17.53 +13.59 +59.76 Specialty/Miscellaneous Funds +16.68 +4.69 +54.11 Growth and Income Funds +14.19 +11.79 +62.29 Convertible Securities Funds +12.84 +5.82 +29.53 Equity Income Funds +11.88 +7.90 +49.80 Pacific Region Funds +10.73 +3.41 +152.05 Option Income Funds +10.56 +8.75 +56.79 Flexible Portfolio Funds +9.94 +10.41 +53.48 Balanced Funds +9.80 +11.89 +54.63 Global Funds +9.75 +3.19 +60.96 Income Funds +7.55 +10.29 +48.86 International Funds +7.00 -0.33 +72.84 Global Flexible Portfolio Funds +6.40 +5.66 +47.32 Fixed Income Funds +4.38 +10.10 +38.24 European Region Funds +1.37 -5.45 +79.72 World Income Funds -0.49 +13.84 +86.51 S&P; 500 (dividends reinvested) +14.51 +14.40 +86.34 All equity funds average +11.61 +11.78 +92.94
Source: Lipper Analytical Services
