The tables on this page rank the top-performing mutual funds for the first quarter of 2003 for each of the main investment objectives as defined by research firm Morningstar Inc., which provided the data for these tables. Performance figures for 5,400 funds are on the following pages.
Most of the mutual funds that invest in the stocks of U.S. companies are sorted by Morningstar into nine broad categories. First, the funds are categorized by the average market capitalization of the stocks they own: large, mid-size or small. (A stock's capitalization is its share price times the number of its outstanding shares.)
The funds are further categorized by their basic investment objective: growth, value or a blend of the two. Among other criteria, growth-oriented funds tend to focus on stocks of companies that have, or are expected to have, robust earnings growth. Value funds look for stocks that appear to be underpriced relative to the underlying value of the company.
In the tables, these broad categories are identified as large-cap growth (LG); mid-cap growth (MG); small-cap growth (SG); large blend (LB); mid-cap blend (MB); small blend (SB); large value (LV); mid-cap value (MV); and small value (SV).
Domestic bond funds, which have 70% or more of their assets invested in bonds; international stock and bond funds, which have 40% or more of their holdings in foreign securities; and other types of funds are categorized as follows:
* Long-term government (GL): At least 80% of bond portfolio invested in government issues with an average effective maturity of more than 10 years.
* Intermediate-term government (GI): At least 80% of bond portfolio invested in government issues with average effective maturity of at least four years but less than 10 years.
* Short-term government (GS): At least 80% of bond portfolio invested in government issues with an average effective maturity of at least one but less than four years.
* Long-term investment grade (CL): Focus on corporate and other investment-grade securities with an average effective maturity of more than 10 years.
* Intermediate-term investment grade (CI): Focus on corporate and other investment-grade securities with an average effective maturity of more than four but less than 10 years.
* Short-term investment grade (CS): Focus on corporate and other investment-grade securities with an average effective maturity of more than one but less than four years.
