A Warming Trend In November


By Palash R. Ghosh What a difference a month makes. After a weak October, stocks rallied in November, driven primarily by moderating crude oil prices, tame inflation, strong new home sales, surprisingly robust third-quarter GDP growth, and better-than-expected consumer confidence. The data fueled optimism that the national economy may have overcome this summer's devastating Gulf Coast hurricanes.

Both the S&P 500 and Nasdaq indices reached 4 1/2-year highs in November. The Dow rose to its highest level since March, 2005. For the month, the average domestic stock mutual fund gained 4.15%, while the S&P 500 climbed 3.52% and the Nasdaq advanced 5.31%.

U.S. equity funds rose across the board in November, with growth-oriented portfolios outperforming value offerings. Small-cap growth funds delivered the best performance for the month, rising 5.24% on average. (For complete results of more than 5,000 funds, see BW Online's Interactive Mutual Fund Scoreboard).

Year to date, mid-cap growth funds have risen 8.61%, which put them at the top of the list. All fund style categories are in positive territory, both for the month and year-to-date periods.

From the start of the year through the end of November, the average stock fund has gained 6.25%. Over that period, the S&P 500 rose 4.61%, the NASDAQ climbed 2.64%, and the Dow is essentially flat, up only 0.21%.

Standard & Poor's Global Investment Policy Committee (IPC) cited the positive economic environment in discussing the November rally. "Inflation fears appear to have receded," the IPC said in a statement. "Benign core CPI data, coupled with indications in the November FOMC minutes that an end to Fed tightening is approaching, have bolstered investor confidence in future growth prospects."

November began with the Federal Reserve hiking its target rate by 25 basis points, as was expected, to 4.00%. Moreover, minutes from the Fed's latest policy meeting during the month seemed to indicate that the central bank may soon cease tightening.

Energy prices, which have declined sharply, also provided some relief, particularly to consumers' pocketbooks. Crude oil prices closed under $60 per barrel for the month, falling from a record high of nearly $71 at the end of August when Katrina hit the global petroleum industry. But the price of oil is still up for the year and may remain a dampening force on consumer spending and the overall economy. IPC expects the price of West Texas Intermediate crude oil to finish the year at $63.

Investors will no doubt examine the results of the Thanksgiving holiday retail activity and the upcoming jobs report as further confirmation of the sustainability of an apparently strengthening economy.

"The major stock indexes are very overbought on a daily basis, and we believe the market will pull back in the near term," said the IPC. "However, following a pause in the rally, we think the stock market will reach new recovery highs before a likely correction sets in sometime in first quarter 2006."

Below is a list of the best- and worst-performing domestic stock funds according by style category for both November, 2005, and the year-to-date period.

Rally Lifts Equity Funds in November

Fund Investment Style

Average Returns November 2005 (%)

Average Returns YTD Through 11/30/2005 (%)

Large-Cap Growth

4.18

6.04

Large-Cap Value

3.42

5.18

Large-Cap Blend

3.5

4.81

Mid-Cap Growth

5.06

8.61

Mid-Cap Value

4.3

7.76

Mid-Cap Blend

4.37

8.48

Small-Cap Growth

5.24

6.46

Small-Cap Value

4.16

6.73

Small-Cap Blend

4.27

6.15

All-Cap Growth

4.13

6.59

All-Cap Value

3.6

6.02

Domestic Equity Funds (excludes sector and balanced funds)

4.15

6.25

S&P 500-Stock Index

3.52

4.61

And here are the funds ranked the highest by BusinessWeek and their 5-year annualized pretax returns through November.

A-List Funds

Fund

Symbol

5-Year Annualized Pretax Return (%)

ABN AMRO Real Estate N

ARFCX

19.2

AIM Developing Markets A

GTDDX

18.2

AIM Energy Inv

FSTEX

19.8

AIM European Small Company A

ESMAX

20.8

AIM Gold & Precious Metals Inv

FGLDX

28.6

AIM International Small Company A

IEGAX

21.9

AIM Real Estate A

IARAX

22.1

Adelante US Real Estate Securities Y

LLUYX

19.9

Aegis Value

AVALX

18.6

Al Frank

VALUX

17.9

AllianceBernstein Real Est Invstmnt A

AREAX

19.8

AllianceBernstein Real Est Invstmnt Instl I

ARIIX

19.5

Allianz NFJ Small Cap Value A

PCVAX

19.2

Alpine International Real Estate Equity Y

EGLRX

22.1

Alpine Realty Income & Growth Y

AIGYX

21.7

Alpine US Real Estate Equity Y

EUEYX

30.9

Amer Beacon Emerging Market Instl

AEMFX

19.5

Amer Beacon Small Cap Value PlanAhead

AVPAX

21.2

Amer Century Global Gold Inv

BGEIX

31.2

Amer Century Real Estate Inv

REACX

21.0

Amer Century Sm Cap Vl Inv

ASVIX

18.2

Amer Century Sm Company Inv

ASQIX

18.3

Artisan Small Cap Value

ARTVX

17.8

Berwyn

BERWX

22.4

Bjurman Barry Micro Cap Growth

BMCFX

16.9

BlackRock Global Resources Inv A

SSGRX

35.8

Boston Company International Small Cap

SDISX

18.3

Boston Company Small Cap Value

STSVX

18.9

Bridgeway Micro Cap Limited

BRMCX

22.9

Bridgeway Ultra Small Company

BRUSX

29.7

Bridgeway Ultra Small Company Market

BRSIX

23.7

Bruce

BRUFX

30.9

Buffalo Small Cap

BUFSX

17.0

Burnham Financial Serv A

BURKX

22.4

CGM Focus

CGMFX

24.8

CGM Realty

CGMRX

29.8

Cohen & Steers Realty Focus Instl

CSSPX

23.8

Cohen & Steers Realty Income C

CSCIX

18.3

Cohen & Steers Realty Shares

CSRSX

20.5

Cohen & Steers Realty Shares Instl

CSRIX

20.6

Columbia Strategic Investor Z

CSVFX

17.9

Commonwealth New Zealand

CNZLX

17.8

Davis Real Estate A

RPFRX

19.3

Delafield

DEFIX

18.3

Delaware Emerging Markets A

DEMAX

24.5

Diamond Hill Bank & Financial A

BANCX

20.9

Dreyfus Premier Emerging Markets A

DRFMX

20.5

Driehaus Emerging Markets Growth

DREGX

20.1

EII Realty Securities Instl

EIIRX

18.1

Eastern European Equity A

VEEEX

28.2

Eaton Vance Asian Small Companies A

EVASX

19.6

Eaton Vance Emerging Mkts A

ETEMX

20.0

Eaton Vance Greater India A

ETGIX

18.8

Evergreen Precious Metals A

EKWAX

35.0

Excelsior Emerging Markets

UMEMX

20.1

Excelsior Engy & Natrl Resources

UMESX

18.2

Excelsior Real Estate

UMREX

18.9

FBR Small Cap

FBRVX

20.6

FBR Small Cap Financial

FBRSX

21.3

FMC Strategic Value

18.3

Fidelity Advisor Korea A

FAKAX

24.5

Fidelity Advisor Latin America A

FLTAX

21.8

Fidelity Emerging Market

FEMKX

17.8

Fidelity Latin America

FLATX

23.3

Fidelity Low Priced Stock

FLPSX

18.5

Fidelity Real Estate Investment

FRESX

20.2

Fidelity Select Construction & Housing

FSHOX

20.1

Fidelity Select Energy Service

FSESX

17.3

Fidelity Select Gold

FSAGX

28.5

Fidelity Select Industrial Materials

FSDPX

17.7

Fidelity Select Medical Delivery

FSHCX

17.3

Fifth Third Micro Cap Value Instl

MXAIX

21.2

First American Real Estate Securities Y

FARCX

21.0

First Eagle Global A

SGENX

18.3

First Eagle Gold A

SGGDX

36.4

First Eagle Overseas A

SGOVX

18.7

Forward Emerald Select Banking & Finance A

HSSAX

21.6

Forward Uniplan Real Estate Investment

FFREX

17.1

Franklin Gold & Precious Metals A

FKRCX

24.5

Franklin MicroCap Value

FRMCX

21.3

Franklin Real Estate Sec A

FREEX

19.1

GMO Emerging Markets Quality III

GMASX

21.8

Gabelli Gold AAA

GOLDX

32.7

Gartmore Emerging Markets A

GEGAX

19.4

Goldman Sachs Real Estate Sec A

GREAX

19.5

Guardian Baillie Gifford Emerging Mkts A

GBEMX

19.6

Hansberger Emerging Markets Instl

HEMGX

19.2

Harding Loevner Emerging Markets

HLEMX

20.8

Harris Insight Emerging Markets N

HEMAX

18.0

Heartland Value

HRTVX

18.1

Heartland Value Plus

HRVIX

18.7

Hotchkis & Wiley Mid-Cap Value I

HWMIX

19.5

Hotchkis & Wiley Small Cap Value I

HWSIX

27.2

ICON Energy

ICENX

21.3

ING Precious Metals

LEXMX

28.2

ING Russia A

LETRX

46.4

Ivy Global Natural Res A

IGNAX

26.4

Ivy Real Estate Securities A

IRSAX

20.4

J Hancock Real Estate A

JREAX

18.9

JPMorgan Small Cap Value Sel

PSOPX

17.4

JPMorgan US Real Estate A

SUSIX

19.4

James Advantage Small Cap

JASCX

19.5

Jennison Natural Resources A

PGNAX

26.7

Johnson Inv Counsel Realty

18.0

Keeley Small Cap Value

KSCVX

19.5

Kensington Strategic Realty A

KSRAX

20.2

Lazard Emerging Markets Open

LZOEX

22.1

Legg Mason Glbl Tr Emerging Mkts Prim

LMEMX

18.9

MFS Emerging Markets Equity A

MEMAX

20.0

MainStay Small Cap Opportunity I

MOPIX

20.6

Managers Emerging Mkts Equity

MEMEX

18.9

Managers Real Estate Securities

MRESX

19.6

Matthews Asian Growth & Income

MACSX

19.4

Matthews Korea

MAKOX

33.7

Matthews Pacific Tiger

MAPTX

17.8

Mellon Emerging Markets M

MEMKX

21.2

Merrill Lynch Latin America C

MCLTX

23.1

Merrill Lynch Natural Resources A

MDGRX

22.6

Midas

MIDSX

27.7

Morgan Stanley Instl Emerging Markets A

MGEMX

17.1

Morgan Stanley Instl Intl Real Estate A

MSUAX

23.1

Morgan Stanley Instl US Real Estate A

MSUSX

20.9

Morgan Stanley Real Estate B

REFBX

19.3

Munder Real Estate Eq Invmnt A

MURAX

19.1

Munder Small Cap Value A

MNVAX

20.8

Neuberger Berman Genesis Inv

NBGNX

16.8

OCM Gold

OCMGX

30.9

Oakmark Global I

OAKGX

18.6

Oakmark International Small Cap I

OAKEX

20.2

Oberweis Micro Cap

OBMCX

19.5

Old Mutual Heitman REIT Z

PBRTX

19.9

Oppenheimer Developing Markets A

ODMAX

22.7

Oppenheimer Gold & Special Minerals A

OPGSX

27.5

Oppenheimer Small & Mid Cap Value A

QVSCX

18.4

Pacific Advisors Small Cap A

PASMX

19.6

Pacific Capital Small Cap Y

PSCYX

21.6

Perritt Micro Cap Opportunities

PRCGX

24.6

Phoenix Real Estate Sec A

PHRAX

20.8

Pioneer Real Estate Shares A

PWREX

19.5

Polaris Global Value Investor

PGVFX

17.3

ProFunds Real Estate Ultrasector Inv

REPIX

21.1

Quant Emerging Markets Ord

QFFOX

22.8

RS Global Natural Resources

RSNRX

28.9

RS Partners

RSPFX

26.7

RS Value

RSVAX

18.4

RiverSource Precious Metals A

INPMX

23.4

Robeco Boston Partners Sm Cap Val II Inv

BPSCX

21.6

Royce Opportunity Inv

RYPNX

16.9

Royce Pennsylvania Mutual Inv

PENNX

17.0

Royce Select Investment Class

RYSFX

17.5

Royce Special Equity

RYSEX

17.7

Russell Emerging Markets S

REMSX

18.4

Russell Real Estate Securities S

RRESX

19.8

Rydex Precious Metals

RYPMX

20.7

SSgA Emerging Markets

SSEMX

19.6

STI Classic Small Cap Value Equity C

STCEX

19.5

Schneider Small Cap Value

SCMVX

26.2

Scudder Emerging Markets S

SEMGX

17.4

Scudder Gold & Precious Metals S

SCGDX

32.4

Scudder Latin America S

SLAFX

21.9

Spirit of America Real Estate A

SOAAX

20.0

Strategic Partners Real Estate Securities A

PURAX

23.3

Strategic Partners Sm Cap Value C

PZVCX

19.3

Stratton Monthly Dividend REIT

STMDX

18.7

Stratton Small Cap Value

STSCX

19.3

T Rowe Price Emerging Europe & Mediterranean

TREMX

28.2

T Rowe Price Emerging Markets Stock

PRMSX

18.5

T Rowe Price Latin America

PRLAX

24.2

T Rowe Price New Era

PRNEX

17.0

T Rowe Price Real Estate

TRREX

20.7

T Rowe Price Small Cap Value

PRSVX

19.5

TAMARACK Enterprise S

TETSX

18.8

TAMARACK Microcap Value S

TMVSX

17.1

Templeton China World A

TCWAX

21.0

Templeton Developing Markets A

TEDMX

19.0

Templeton Instl Emerging Markets

TEEMX

19.5

Texas Capital Value & Growth

TCVGX

19.8

Third Avenue Real Estate Value

TAREX

20.7

Third Millennium Russia

TMRFX

39.5

Tocqueville Gold

TGLDX

32.5

US Global Accolade Eastern European

EUROX

42.8

US Global Inv Global Resources

PSPFX

33.3

US Global Inv Gold Shares

USERX

32.1

US Global Inv World Prec Minerals

UNWPX

36.7

USAA Precious Metals & Minerals

USAGX

35.2

Undiscovered Managers REIT Instl

URTLX

20.6

Van Eck Global Hard Assets A

GHAAX

22.0

Van Eck Intl Investors Gold A

INIVX

31.4

Van Kampen Real Estate Securities A

ACREX

19.9

Vanguard Emerging Mkts Stock Index

VEIEX

18.7

Vanguard Energy Inv

VGENX

23.1

Vanguard Precious Metals

VGPMX

32.1

Vanguard REIT Index

VGSIX

19.9

Wasatch Micro Cap

WMICX

21.6

Wasatch Small Cap Value

WMCVX

18.6

Wells Fargo Advtg Small Cap Value Z

SSMVX

20.2

Wells S&P REIT Index A

WSPAX

19.1

Westwood Income AAA

WESRX

17.3

William Blair Small Cap Growth N

WBSNX

17.8

iShares DJ US Real Estate Index

IYR

18.8

iShares MSCI Australia Index

EWA

18.8

iShares MSCI Austria Index

EWO

31.9

iShares MSCI Brazil Index

EWZ

21.2

iShares MSCI Mexico Index

EWW

21.8

iShares MSCI South Korea Index

EWY

27.5

n/i numeric investors Small Cap Value

NISVX

23.5

Ghosh is a reporter for Standard & Poor's Fund Advisor


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus