S&P; Offers Model Portfolios, Slashes ‘Select’ List

Standard & Poor’s Corp., best known for managing the S&P; 500 and other stock indexes, has compiled three model mutual fund portfolios for different types of fund investors and pared its “Select List” to 36 funds from about 300.

“Advisors and mutual fund investors want more action-oriented information, which means a shorter list of Select Funds and model portfolios built around those funds,” said Sanford B. Bragg, executive managing director of New York-based S&P;, in announcing the portfolios this week.

S&P; mutual fund strategist Rosanne Pane compiled the new Select List and developed three model portfolios--for growth and income, growth, and aggressive growth investors--using 10 of the Select funds in varying proportions. Pane chose Growth Fund of America and Gabelli Westwood Equity, two large-stock funds, as core holdings for all three portfolios.

Here are all the funds that made S&P;’s new Select list:

* Large-cap growth: Alleghany Chicago Growth & Income, Growth Fund of America, Harbor Capital Appreciation, Heritage Capital Appreciation, Janus Growth & Income and Merrill Lynch Fundamental Growth.

* Large-cap blend: GE U.S. Equity, Legg Mason Value, Pioneer Fund, SSgA Growth & Income, Thornburg Value and Victory Diversified Stock.

* Large-cap value: Alliance Growth & Income, Gabelli Westwood Equity, Selected American Shares, Van Kampen Comstock and Vanguard Windsor II.

* Mid-cap growth: Citizens Emerging Growth, T. Rowe Price Mid-Cap Growth and Turner Mid Cap Growth.

* Mid-cap value: Dreyfus Midcap Value and Lord Abbett Mid Cap Value.

* Small-cap growth: Baron Growth.

* Small-cap value: Ariel Fund, Enterprise Small Company Value, Royce Pennsylvania Mutual and Third Avenue Value.

* International: Artisan International, EuroPacific Growth, Julius Baer International Equity and Pilgrim International Value.

* Investment-grade bond: Alleghany Chicago Bond, Legg Mason Investment Grade, SteinRoe Income Trust Intermediate Bond and Strong Corporate Bond.

* Money market: Deutsche Cash Management.

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Putting It Together

Standard & Poor’s has developed three model mutual fund portfolios for investors of varying risk tolerance.

Percentage of assets in each fund:

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--Portfolios-- Growth Aggressive Fund & income Growth growth Growth Fund of America 25% 30% 35% Gabelli Westwood Equity 15 20 25 T. Rowe Price Mid-Cap Growth 5 7 9 Dreyfus Midcap Value 4 6 7 Baron Growth Fund 3 4 5 Royce Pennsylvania Mutual 3 3 4 Artisan International 5 10 15 SteinRoe Intermediate Bond 15 10 0 Alleghany Chicago Bond 20 10 0 Deutsche Cash Management 5 0 0

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Source: Standard & Poor’s