The June 2015 issue of Forbes named the Small-Company Stock Fund to the Mutual Fund Honor Roll. To earn this distinction, the fund had to outperform its peers in both bull and bear market cycles since 2000. The fund received a grade of A+ in bull markets and an A in bear markets. The fund has remained on the Mutual Funds Honor Roll for its second consecutive year. To view the fund’s performance for the recent standardized periods click here.
There were 990 funds in the domestic stock fund category that includes the Small-Company Stock Fund, and all were graded on a curve over two up-and-down market cycles using annual returns from August 31, 2000, through May 31, 2015. A fifth of the class got a straight A and a fifth a D. The Bs and Cs each go to 25% of the funds. In addition, funds had to have a portfolio team with an average tenure of at least five years. Sector funds, single-country funds, those not taking new investors and those with minimums over $50,000 were excluded.
Forbes’ Honor Roll is a short list of funds that have done well in both bull and bear markets, earning a grade A and better. Forbes evaluated 942 funds for its Honor Roll based on the following criteria: a compound annual return over the last two market cycles (since August 31, 2000) or at least 10% and a minimum investment no higher than $50,000. Sector funds and funds managed by anonymous portfolio managers or large committees were excluded. Raw performance data came from Lipper and Morningstar.
Past performance does not guarantee future results. Investing in small-company stocks poses special risks. Share prices of small-capitalization stock funds may be more volatile than those of large-capitalization stock funds. Smaller companies may have limited product lines, markets or financial resources, or their management teams may have less depth and expertise, compared with large-capitalization companies.