New Fund Picks

6/20/2011


Fund investors should consider the 20 funds listed below and our recommended portfolios. Through June 14, the Forecasts' Growth Portfolio has gained 3.1%, compared to 3.6% for its passive benchmark portfolio. The Conservative Portfolio is up 3.2%, versus 3.4% for its benchmark.

HISTORICAL RETURNS
Total Return
Total
Return
Since 2007 *
2007
2008
2009
2010
2011 *
Growth Portfolio
11.3
(39.9)
32.8
18.2
3.1
8.2
Benchmark
7.6
(35.8)
27.5
13.6
3.6
3.7
Conservative Portfolio
9.9
(30.9)
25.3
16.0
3.2
13.9
Benchmark
7.8
(25.6)
22.0
11.3
3.4
12.6
S&P 500 Index
5.5
(37.0)
26.5
15.1
3.3
(0.1)
MSCI EAFE Index
(Int'l Stocks)
11.2
(43.4)
31.8
7.8
3.6
(7.4)
Barclays Aggregate
Bond Index
7.0
5.2
5.9
6.5
2.8
30.6
* Through June 14.

While most of our recommended funds have done well in 2011 and earn solid scores in our rating system, two funds are being replaced. Weightings on several funds are being adjusted, boosting our large-cap exposure.

In the foreign small and midcap growth category, T. Rowe Price International Discovery ($46; PRIDX) is being dropped, partly because of a middling fund score of 57 in our fund-rating system. Wasatch International Growth ($21; WAIGX), which earns a 95, typically invests in stocks with market capitalizations of less than $5 billion. The fund focuses on fast-growing sectors, particularly in emerging markets. On March 31, Wasatch's largest sector bet was consumer discretionary (17%), with Asia (43%) the biggest regional weighting. Up 4.1% this year, the fund has outpaced its peer-group return of 2.9%.


In the foreign large-cap value category, Manning & Napier International ($10; EXITX) is replacing Vanguard International Value ($32; VTRIX), which has lagged its peers. Manning & Napier earns a score of 98 and ranks among the top 1% of its peer group for one- , three- , and five-year returns. The fund's 99 holdings have an average market capitalization of $19 billion. At the end of April, more than 70% was invested in Europe. Industrials represented nearly 17%, followed by consumer staples at 16%.

 

FORECASTS FUND RECOMMENDATIONS
Through June 14, our recommended Growth Portfolio has returned 3.1% for the year, versus 3.6% for its benchmark portfolio. The Conservative Portfolio has returned 3.2%, versus 3.4% for its benchmark.
Year-to-Date
% of Portfolio
Fund (Price; Ticker)
Return
(%)
Rank
Conser-
vative
(%)
Growth
(%)
Fund
Rating
American Century Heritage
($22; TWHIX)
3.0
D
7
8
63
Buffalo Growth
($26; BUFGX)
3.0
B
11
12
94
Dreyfus MidCap Index
($29; PESPX)
4.7
B
0
0
87
Dreyfus Small Cap Stock Index
($21; DISSX)
2.9
B
0
0
63
Heartland Select Value
($30; HRSVX)
1.5
E
5
7
70
Heartland Value Plus
($30; HRVIX)
0.8
C
7
8
92
Manning & Napier International
($10; EXITX)
7.6
A
8
8
98
T. Rowe Price New Horizons
($36; PRNHX)
7.0
A
10
10
97
Vanguard 500 Index
($119; VFINX)
3.3
B
5
5
65
Vanguard Dividend Growth
($15; VDIGX)
5.7
A
11
12
98
Vanguard Emerging Mkts.
Stock Indx. ($30; VEIEX)
(0.5)
B
0
5
96
Vanguard GNMA ($11; VFIIX)
3.4
A
6
0
94
Vanguard Inter.-Term Tax
Exempt ($14; VWITX)
4.0
B
0
0
76
Vanguard Short-Term Invest.
Grade ($11; VFSTX)
1.8
B
0
0
78
Vanguard Total Bond Mkt. Index ($11; VBMFX)
2.6
D
10
0
53
Vanguard Total Int'l Stock
Index ($16; VGTSX)
2.2
D
5
4
85
Vanguard Wellesley Income
($23; VWINX)
4.6
A
0
0
98
Vanguard Wellington
($32; VWELX)
3.7
A
6
9
89
Wasatch International Growth
($21; WAIGX)
4.1
B
5
7
95
Wells Fargo Advantage High
Income ($8; STHYX)
4.5
B
4
5
73
* Year-to-date ranks through June 14 from Morningstar, comparing performance among funds with same objectives. A = top 20%; B = next 20%; C= middle 20%; D = next 20%; E = bottom 20%. Fund ratings are percentile ranks based on our fund-rating system.

Current Hotline

Stock Spotlight

Individual Stock Reports

ISRs make stock research easy!

Perhaps the most valuable two page reports available anywhere.

All the data you would normally have to plow through years of 10-K filings, earnings reports, and reams of market data to assemble — yours all in one concise report.

ISRs contain our proprietary Quadrix scores — find out how we rate all the stocks in the S&P 500.

Visit us at individualstockreports.com