BEST PERFORMING MUTUAL FUNDS SINCE 2000
Mutual funds are judged on several parameters, the most important of which sways an investor into their fold. This is the total returns generated on investment and how consistently it occurs. Past performance is no guarantee that the fund will deliver matching returns in the future. This explains why the list of top performers is not permanent or sacrosanct.
To shortlist the best performing mutual funds since 2000 one has to segregate funds by objective so that investors can choose the right investment vehicle to match their risk profiles.
These categories are:
ALL INTERNATIONAL STOCK FUNDS ALL BOND FUNDS ALL BALANCED FUNDS ALL ALTERNATIVE FUNDS
ALL INTERNATIONAL STOCK FUNDS
These funds typically invest outside the country in which they are registered. In this category the best performing mutual funds since 2000 (in terms of annualized returns as on May 31, 2009) are-
1. ING RUSSIA A (LETRX)- Its annualized return is 26.28%. On a total asset base of $ 314 million its net asset value stands at $ 21.35 (June 24, 2009). This fund has large bets in the energy sector (45.99% of net assets).
2. Dreyfus Greater China A (DPCAX)- Its annualized return is 18.05%. On an asset base of $712 million the NAV is $36.10 (June 24, 2009). Bulk of its investments is in industrial materials and financial services (together accounting for over 62% of net assets).
3. Matthews China (MCHFX)- The annualized return generated is 17.84%. On an asset base of $ 1,414 million the NAV is $ 19.57. Half of its investments is in the services sector although its top holding is the Dongfeng Motor Group Co. Ltd.
4. BlackRock Latin America A (MDLTX)- Its annualized return is 17.54%. On an asset base of $489 million the NAV is $ 42.85. Its major holdings are in the telecom, energy and financial services sectors.
5. T. Rowe Price Latin America (PRLAX)- its annualized return is 17.52%. On an asset base of $ 1,955 million the NAV is $ 32.43. Its major investments are in energy, industrial materials and financial services.
ALL BOND FUNDS
These are also known as fixed income funds and unlike equity funds, where the returns are uncertain, the returns here are dependent on interest rates and money supply. It is an ideal way to balance and insulate one’s portfolio from the vagaries of the equity market.
1. GMO Emerging Country Debt III (GMCDX)- The annualized return is 14.52%. On an asset base of $ 2,095 million the NAV is $ 6.95. Its investments are mainly concentrated in BB and BBB-rated bonds. Yield is 10.8%.
2. MFS Emerging Markets Debt A (MEDAX)- The annualized return is 14.41. On an asset base of $605 million the NAV is $ 12.53. Its investments are mostly in B, BB and BBB-rated bonds. Yield is 7.09%.
3. PIMCO Emerging Markets Bond Instl (PEBIX)- The annualized return is 14.04%. On an asset base of $ 2,439 million the NAV is $ 9.25. Its investments are largely in B, BB, BBB-rated bonds. Yield is 7.17%.
ALL BALANCED FUNDS
These funds invest money in stock and bonds, generally in the ratio of 60-40. Balanced funds are meant for investors who want better returns than fixed income funds but are not willing to place their bets on equity because their risk appetite is limited.
1. Bruce (BRUFX)- The annualized return is 14.93%. On an asset base of $ 176 million the NAV is $ 275.20. It has 36.3% of net assets in stocks and 44.5% in bonds.
2. First Eagle Global A (SGENX)- The annualized return is 12.11%. On an asset base of $ 17, 021 million the NAV is $ 34.15. It has 80% in stocks and 5.3% in bonds.
3. Waddell & Reed Asset Strategy A (UNASX)- The annualized return is 11.11%. On an asset base of $ 2,750 million the NAV is $ 7.37. It has 29% in stocks and 12.2% in bonds.
ALL ALTERNATIVE FUNDS
Unlike pure stock or pure bond funds, the alternative funds follow a hybrid investment strategy.
1. USAA Precious Metals and Minerals (USAGX)- The annualized return is 23.91%. On an asset base of $ 1,220 million the NAV is $ 25.78. Its investments are mainly into gold mining companies.
2. First Eagle Gold A (SGGDX)- The annualized return is 22.07%. Its asset base is $ 1,625 million and its NAV is at $ 22.47. It has invested 70% into stocks of mining companies, primarily gold.
3. Evergreen Precious Metals B (EKWBX)- The annualized return is 21.73%. On an asset base of $ 969 million the NAV is $ 53.09. Its investments are into gold mining company stocks.
#All mutual fund data source-Morningstar