Mutual Funds Tumble In Attack Aftermath

September 24, 2001 ( - The average stock mutual fund plunged more than 10% in the past week, according to mutual fund tracker Lipper.

Last year, US diversified equity funds slipped an average 1.7%, while in 1999 that sector gained 28.3%.

Among the most popular funds, Fidelity Magellan is down 25.1% this year, while the Vanguard 500 Index is down 24.8%. Of the 25 largest mutual funds tracked by Lipper, the only one to post a year-to-date gain is the $47 billion PIMCO Total Return fund, now up 8.5%.

Week’s Worth

Once again Science & Technology funds led the way, sliding over 14% over the past week. Tech funds have fallen more than 53% since the beginning of the year, according to the report.

Communications funds, having already been battered down 45% this year, fell just 5.2% in the past week. Large-cap growth funds are down 36.2% in 2001.

Bear funds also fared extremely well over the week, though Lipper does not track them separately as their own group, according to CBSMarketWatch.

Gold funds, up 17% for the year, were the only segment tracked by Lipper to gain ground for the week. The sector rose 4% for the week.

Lipper Leader

Separately, on Friday Lipper appointed managing director Michael Peace as its new chief executive officer. Peace succeeds Sarah Dunn, who was appointed the head of a new corporate and media customer division at London-based Reuters in July.

Peace has served as managing director of Lipper Asia since 1999 and has worked at Reuters for 14 years.