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Listed below are 15 of the largest funds in our 19,000+ Mutual Fund database.  Their total assets account for about 10% of the assets of all the funds we follow.  As such, many investors are affected by how these funds perform.  While their one-year returns are sharply higher than their five-year returns, the past three months ending June 30, 2010 show an almost uniform weakness.  Are we in a new market correction or is this a pause in a stock recovery?  Surely, the debt crisis in Europe and worries of slower growth in Asia provided reasons for investors to sell. 

All the equity funds listed in our table performed in line with the S&P 500, Russell 3000, MSCI EAFE, and MSCI WORLD over the past three months ended June 30, 2010.  In other words, they declined between 11% and 15%.  One exception is the Fidelity Contrafund (FCNTX).  It outpaced the other funds by about three to four percentage points.  This fund, often considered to be a large-cap growth fund, can also invest in value stocks.  Whether investing in growth or value, the fund seeks to purchase stocks of companies whose value is not fully recognized by the market.  Other funds may attempt the same strategy, but this Fund has historically delivered above average results.  Subscribers should also note that this fund often has an above average overall Rank.

Another fund that outperformed over the past three months ended June 30th  is American Funds Income Fund of America (AMECX).  This fund holds a blend of income-producing securities, of both the stock and bond varieties.  This approach has helped the fund reduce its risk and price volatility and improve its return during this difficult time in the market.  In fact, this fund recently had a very good Risk rank and Overall rank.

A third fund that outperformed during the same three-month period is Franklin Income A Fund (FKINX).  This fund also holds a blend of income producing stocks and bonds.  It is also able to hold some foreign issues.  The fund’s emphasis is currently tilted toward income, as it has about 60% of its assets in bonds as of May 31, 2010.  This helped the fund report a relatively low 3.6% loss for the three months ended June 30, 2010.  It also helped the fund report a slight loss of 0.4% for six months, outperforming all other funds on the list.  This fund has historically been favorably rated for risk and overall rank.

 

 

Results

Through

June30

2010

FUND NAME/

TICKER

Fund

Size

(in

billions)

3 Mos

6 Mos

1 year

5 years

American Funds Growth Fund of America A

AGTHX 

$141

-11.7%

-8.0%

20.4%

0.8%

 

 

Vanguard Total Stock Market Index

VTSMX 

108

-11.3

-6.0

15.9

-0.3

American Funds Capital World Growth & Income A

CWGIX 

69

-12.4

-12.3

8.4

3.2

Fidelity Contrafund

FCNTX 

61

-8.1

-4.8

16.4

3.0

American Funds Investment Company of America A

AIVSX 

54

-11.6

-8.7

9.9

-0.1

Vanguard 500 Index

VFINX 

86

-11.5

-6.7

14.3

-0.7

 

American Funds Income Fund of America A

AMECX 

60

-6.3

-3.5

16.3

0.3

Vanguard Wellington Income VWELX 

 

47

-6.7

-3.3

12.4

3.8

American Funds EuroPacific Growth A

AEPGX 

89

-12.0

-11.4

9.5

5.0

Dodge & Cox Stock

DODGX 

43

-13.7

-7.9

15.3

-2.4

American Funds Washington Mutual A

AWSHX 

44

-10.3

-6.8

13.1

-1.2

Dodge & Cox International Stock

DODFX 

39

-14.0

-10.9

13.2

2.8

American Funds New PerspectiveA

ANWPX 

38

-11.4

-9.3

13.4

4.1

American Funds Fundamental Investors A

ANCFX 

41

-11.5

-7.6

12.8

2.2

Franklin Income A

FKINX 

50

-3.6

-0.4

19.0

3.2

S&P 500 Index

 

-11.4

-6.7

14.4

-0.9

Russell 3000

 

-11.3

-6.0

15.7

-0.5

MSCI EAFE

 

-14.9

-14.7

3.1

-1.1

MSCI WORLD

 

-13.3

-10.9

8.0

-1.5

Barclays Aggregate Bond

 

3.5

5.3

9.5

5.4

Barclays High Yield Bond

 

-0.1

4.5

26.8

7.8