April Cruelest Month for Stock Funds

May 2, 2002 (PLANSPONSOR.com) - April disappointed investors, despite promises of a rebound made by a slew of positive economic data, as the average diversified US stock mutual fund dipped by 3.7% on average, bringing year-to-date totals into negative territory.

Investors, still jittery from the accounting scandals spawned by Enron, remained skeptical over the outlook for corporate profits and reduced their equity bets.

After a flat first quarter, April’s performance brought the return of the average US stock fund down by 3.3% for the first four months of the year, according to data from Lipper, Inc.

Get more!  Sign up for PLANSPONSOR newsletters.

In comparison, in April:

  • the Dow Jones Industrial Average dropped 4.4%
  • the Nasdaq composite index plummeted 8.5%
  • the Standard & Poor’s 500 index lost 6.1%.

Nevertheless, despite the unfriendly market conditions, small-cap value and gold funds managed to provide some bright spots, rising 2.2% and 6.4% respectively.

Still, the funds in the volatile technology and telecom sectors are still taking a beating.

According to Lipper, the month’s worst performers were science and technology funds, down 12.2%, while on a year-to-date basis telecom funds, having lost 28.1%, bring up the rear.

Undeterred by the torpid performance, investors are slowly returning to equities, placing a $29.3 billion net into stock funds in March – the sixth consecutive month in which funds saw positive flows.

Though data are not yet available, Lipper notes that investors are believed to have added to funds in April, but at a much slower pace than the previous month. 
 

Madden Departs Ennis Knupp for Russell

May 1, 2002 (PLANSPONSOR.com) - Frank Russell Company has hired William B. Madden, a principal at Ennis Knupp & Associates, as a senior consultant.

At Ennis Knupp & Associates, Madden provided research to high net worth advisors. He also served as chairman of the investment policy committee, which approves research papers for the public. In addition, he worked as an investment consultant to a range of institutional endowments and foundations as well as public sector clients, according to Russell.

Previously, Madden worked as a senior consultant for Towers Perrin from 1997 to 1999 and in various roles including senior consultant for AG Becker/SEI from 1980 to 1996. He holds a doctorate in physics from the University of Notre Dame.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

Ennis Knupp & Associates has reassigned Madden’s consulting relationships to other senior professionals in the firm and does not plan to hire a replacement at this time.

«