RiskMetrics Releases Q4 Fund Evaluations

January 9, 2003 (PLANSPONSOR.com) - The RiskMetrics Group has released its equity mutual fund stars and laggards based on the amount of return managers offer to investors for the risks those investors face.

The latest list for the fourth quarter of 2002 includes publicly traded US and  UK equity mutual funds and investment trusts.  Riskmetrics makes the designations within four style categories:

  • conservative
  • balanced
  • growth
  • aggressive.

This risk-adjusted evaluation incorporates managers’ proficiency in managing risk over an extended period. The quantitative approach isolates those funds or unit trusts that have provided the greatest risk-adjusted out-performance, while maintaining the most stable level of risk over the last five years, RiskMetrics said.

Among the US evaluations:

  • Vanguard/Wellesley Income Fund was designated a best conservative fund; Gabelli Mathers Fund was tagged with a worst conservative fund
  • American Century Equity Income Fund and Dodge & Cox Balanced Fund won best balanced funds; CDC Nvest Balanced Fund and Dreyfus LifeTime Income Portfolio were designated worst balanced funds.
  • Dodge & Cox Stock Fund and Neuberger Berman Genesis Fund won best growth fund designations while Credit Suisse International and SAFECO Dividend Income Fund got worst growth fund descriptions.

Among the UK evaluations:

  • Norwich Property and HSBC Money Mkt were best conservative funds; Exeter Zero Preference and Royal Bank of Scotland High Yield were in the worst conservative fund category.
  • GAM International Growth and Rathbone Income were best growth funds; CIS UK Income and Quilter High Inc. Portfolio got worst growth fund designations.
  • Fidelity European and Credit Suisse Transatlantic Retail were best aggressive funds; LeggMason UK Emerging Growth and M&G Strategic Growth were in the worst aggressive growth fund category.