Fabian, editor of the Maverick Advisor, an investment advisory service, has been publishing the list since 1998. In it, he compares the performance of all equity funds with five-year track records with their peer group averages.
To be considered a lemon, a fund must underperform its peer group by 25% for the last 12 months, and also underperform for the last three and five years.
A few of the losers this quarter are a group of 54 balanced funds, which comprise 22% of the total lemon list assets. Balanced fund portfolio managers follow a risk-adjusted strategy, using stocks and bonds. Many advisers recommend balanced funds to clients who want to avoid market volatility.
A few of Fabian’s lemons:
- AIM: Balanced Fund; A, B
- Vanguard LifeStrategy Growth
- Scudder Total Return; A, B, C
- AXP: Mutual; A, B, Y
- Fidelity Advisor Balanced; T, A, Ins
- MainStay: Total Return; B, A
- Liberty: Liberty Fund; A, B, Z
- Evergreen Foundation; B, I A, C
- Columbia Balanced
- INVESCO Balanced; Inv