|
|
|
|
April Month-End Summary: Turnaround or Temporary Relief?
hat a difference a month makes! After a dismal first quarter, the equity markets rebounded strongly. The results weren't good enough to pull the major indexes out of the red for the year, but losses did narrow dramatically. An unexpected interest rate cut by the Federal Reserve Board, fewer negative earnings surprises, positive economic news late in the month, the resurgence of technology stocks, and investors smelling a buying opportunity all fueled the month's gains, but the rally's staying power will depend on whether the economy is truly on the mend.
After hitting a two-year low early in the month, the technology-laden NASDAQ began its turnaround in earnest, stringing together four consecutive up days, the first time it has done so since August 2000. During the month, the index soared 33% in 10 trading days, its strongest short-term gain ever. Profit-taking took its toll at the end of the month, but the NASDAQ still was up 15% in April, cutting its year-to-date loss to 14%. The Dow Jones Industrial Average and the S&P 500 also gained ground during the month; the former was up 8.7%, finishing just off its 2001 opening number, while the latter gained 7.7%, narrowing its year-to-date loss to 5%.
Equity Funds Turn Positive
Equity fund investors finally had something to cheer about in April. Overall, U.S. equity funds were up 8.78%, narrowing their year-to-date loss to 2.36%. All categories were in the black, but technology/communications funds led the way, posting an 11.71% gain for the month. The group was still down almost 20% year to date, however. Four more categories had double-digit gains in April (precious metals, aggressive growth, mid-cap, and energy/natural resources funds), but only three of 12 equity fund groups had positive year-to-date returns.
Fixed-Income Funds Take A Breather
Fixed-income fund performance was generally down in April, although convertible funds were up 6.37% for the month. The Fed did slash interest rates without warning, but bond prices have been falling and yields have been rising, particularly on the long-end of the curve. On April 30, yields on 30-year and 10-year Treasury bonds were 5.78% and 5.33% respectively, both at or near highs for the year. Good housing numbers and stronger-than-expected first-quarter economic growth stoked fears that the economy might be turning around and that additional Fed easing may no longer be in the cards. Overall, the average U.S. fixed-income fund lost 0.27% in April, although the group was still up 1.32% through the first four months of the year.
Bright Skies Overseas
As has been the case in recent months, international markets moved in tandem with their U.S. counterparts. The MSCI EAFE Equity Index was up 6.89% in April, and all foreign and international fund categories were in the black, except global income funds, which lost 0.49%. Global equity funds led the pack, gaining 7.78% for the month, but emerging market income funds were the only category that posted positive returns year to date through April 30 (1.86%). The average equity fund was up 6.31% for the month and down 6.11% through the first four months of 2001, while the average bond fund lost 0.09% in April and gained 1.04% year to date.
Category Returns
Final Fund Category Performance 04/30/2000
Fund Category
|
1 Month
|
3 Months
|
YTD
|
1 Year
|
3 Year
|
5 Year
|
10 Year
|
12-mo Yield
|
|
Aggressive Growth
|
11.71
|
-15.14
|
-12.70
|
-24.44
|
4.67
|
8.61
|
12.86
|
0.48
|
|
Asset Allocation - Domestic
|
4.23
|
-4.42
|
-2.63
|
-3.52
|
4.17
|
9.61
|
11.44
|
2.20
|
|
Asset Allocation - Global
|
4.56
|
-4.09
|
-2.02
|
-1.17
|
2.10
|
4.93
|
7.74
|
2.45
|
|
Balanced - Domestic
|
4.24
|
-3.58
|
-1.56
|
-0.22
|
4.66
|
10.13
|
10.59
|
2.26
|
|
Balanced - Global
|
5.49
|
-6.32
|
-5.87
|
-2.47
|
4.15
|
8.58
|
10.44
|
1.80
|
|
Convertible
|
6.37
|
-5.16
|
-1.21
|
-6.24
|
6.96
|
10.96
|
13.06
|
2.79
|
|
Corporate - High Yield
|
-1.27
|
-3.63
|
2.40
|
-4.62
|
-2.63
|
3.34
|
8.15
|
10.11
|
|
Corporate - Investment Grade
|
-0.59
|
0.63
|
2.63
|
10.80
|
4.86
|
6.35
|
7.46
|
5.60
|
|
Emerging Market Equity
|
5.65
|
-12.12
|
-1.83
|
-25.36
|
-7.01
|
-4.24
|
0.64
|
0.17
|
|
Emerging Market Income
|
0.31
|
-3.46
|
1.86
|
6.54
|
1.16
|
9.58
|
NA
|
8.85
|
|
Equity Income
|
6.00
|
-3.19
|
-1.98
|
2.99
|
3.49
|
11.76
|
12.45
|
1.36
|
|
General Bd - Investment Grade
|
-0.40
|
0.76
|
2.48
|
10.27
|
5.11
|
6.34
|
7.04
|
5.57
|
|
General Bd - Long
|
-0.64
|
0.58
|
2.52
|
11.69
|
5.39
|
6.99
|
8.15
|
6.24
|
|
General Bd - Short & Interm
|
-0.27
|
0.95
|
2.55
|
9.56
|
5.52
|
6.18
|
6.29
|
5.60
|
|
General Mortgage
|
0.02
|
1.32
|
2.48
|
10.12
|
5.62
|
6.18
|
6.44
|
5.59
|
|
Global Equity
|
7.78
|
-10.57
|
-8.91
|
-16.15
|
3.45
|
8.62
|
9.98
|
0.56
|
|
Global Income
|
-0.49
|
-1.78
|
0.21
|
4.06
|
1.51
|
4.31
|
6.04
|
5.52
|
|
Growth & Income
|
6.47
|
-4.71
|
-2.71
|
-1.44
|
4.50
|
12.77
|
13.56
|
0.66
|
|
Growth - Domestic
|
8.71
|
-10.07
|
-7.63
|
-14.17
|
5.35
|
12.57
|
13.51
|
0.36
|
|
Loan Participation
|
-0.84
|
-0.62
|
-0.18
|
3.63
|
4.40
|
5.46
|
6.06
|
7.87
|
|
Mid Cap
|
10.50
|
-9.14
|
-7.42
|
-7.19
|
9.76
|
13.55
|
14.87
|
0.20
|
|
Multi-Sector Bond
|
-0.75
|
-1.02
|
1.64
|
5.64
|
2.43
|
5.59
|
7.36
|
6.81
|
|
Municipal - High Yield
|
-0.79
|
0.52
|
1.21
|
6.46
|
2.40
|
4.81
|
6.05
|
5.10
|
|
Municipal - Insured
|
-1.49
|
-0.43
|
0.18
|
9.28
|
4.18
|
5.30
|
6.29
|
4.34
|
|
Municipal - National
|
-1.13
|
0.00
|
0.85
|
8.43
|
3.84
|
5.01
|
6.01
|
4.29
|
|
Municipal Single State
|
-1.28
|
-0.16
|
0.49
|
8.90
|
3.80
|
5.13
|
6.08
|
4.29
|
|
Non-US Equity
|
6.14
|
-9.20
|
-7.58
|
-20.51
|
2.09
|
3.81
|
7.57
|
0.78
|
|
S&P 500 Index
|
7.74
|
-8.50
|
-5.37
|
-13.66
|
4.77
|
15.04
|
14.82
|
0.73
|
|
Sector - Energy/Natural Res
|
10.05
|
8.08
|
4.66
|
25.96
|
6.85
|
9.14
|
10.33
|
0.52
|
|
Sector - Financial Services
|
3.09
|
-3.47
|
-4.16
|
26.17
|
3.99
|
17.47
|
20.40
|
0.45
|
|
Sector - Health/Biotechnology
|
8.33
|
-8.70
|
-15.83
|
11.17
|
14.89
|
14.83
|
16.28
|
0.07
|
|
Sector - Other
|
7.89
|
-5.82
|
-1.77
|
0.92
|
1.85
|
9.03
|
13.68
|
0.27
|
|
Sector - Precious Metals
|
14.44
|
8.52
|
8.82
|
12.95
|
-10.70
|
-16.23
|
-3.87
|
0.71
|
|
Sector - Real Estate
|
2.29
|
0.00
|
0.55
|
18.20
|
1.68
|
10.00
|
8.41
|
3.61
|
|
Sector - Tech/Communications
|
19.27
|
-26.91
|
-19.49
|
-48.52
|
14.32
|
16.41
|
20.28
|
0.13
|
|
Sector - Utilities
|
.59
|
-0.22
|
-2.01
|
0.44
|
8.93
|
14.16
|
12.65
|
1.62
|
|
Small Cap 9.56
|
-6.42
|
-3.33
|
-3.46
|
4.33
|
10.05
|
13.88
|
0.20
|
|
US Government - Long
|
-1.07
|
0.34
|
1.41
|
11.18
|
5.55
|
6.73
|
7.13
|
5.14
|
|
US Government - Short & Interm
|
-0.22
|
1.13
|
2.31
|
9.97
|
5.54
|
6.07
|
6.22
|
5.10
|
|
US Government/Agency
|
-0.58
|
0.61
|
1.75
|
10.57
|
5.22
|
6.23
|
6.61
|
5.18
|
|
US Treasury
|
-0.94
|
0.45
|
1.31
|
9.85
|
5.92
|
7.05
|
8.02
|
5.07
|
Wiesenberger, the country's first mutual fund tracking service, has provided mutual fund data to financial professionals for more than 55 years. It is the leading provider of customized retirement, marketing and sales, and research software to both distributors and sponsors, including financial planning companies, wirehouses, broker/dealer firms, banks, mutual fund and insurance companies. Wiesenberger is a division of Thomson Financial, a US$1 billion provider of information services and work solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation (TTC), one of the world's leading information companies. TTC, with annual revenues of more than $6 billion US, has interests in specialized information and newspaper publishing. TTC's common shares are traded on the Toronto, Montreal and London stock exchanges. For data questions or help with stories, contact Ramy Shaalan at Wiesenberger at 301.545.4397.
|
Sponsored by James J. Eccleston. This Web site contains material of general interest. It is neither intended to, nor constitutes, either legal advice or investment advice.
Always consult an attorney and/or investment adviser when building and protecting your wealth.
All content Copyright © 2010 Advocate Compliance Partners, Inc. except where noted. All rights reserved.
One North Franklin Street, Suite 2620, Chicago, IL 60606
Telephone 312-332-0000 | Fax 312-332-0003
|
|
|
|
|
