TAKE A SHARPE LOOK AT RISK VS. RETURN

U.S. EQUITY GROWTH

THREE YEAR ONE YEAR

Return/ Total Return/ Total assets

TOP 10 unit of risk return unit of risk return in millions

Torray 3.16 166.18 2.19 37.12 531.8

T. Rowe Price Value 3.01 132.28 2.26 29.25 508.6

Pegasus Intrinsic Value/I 3.00 93.15 2.35 25.25 522.3

Hilliard Lyons Growth 2.90 120.69 3.06 40.41 53.1

Tweedy Browne American Value 2.84 131.61 2.52 38.87 643.0

Oppenheimer Quest Value/A 2.83 117.78 2.07 26.50 728.3

Delafield 2.83 92.61 1.94 19.66 142.9

Oak Value 2.82 128.83 2.42 37.70 110.8

Putnam Capital Appreciation/A 2.81 127.11 2.04 29.77 957.0

Morgan Stanley Inst Equity Growth/A 2.81 149.35 1.71 31.22 568.8

BOTTOM 5

Parnassus 0.44 45.73 1.21 29.69 353.4

Crabbe Huson Special 0.41 30.59 0.64 11.28 371.5

Norwest Contrarian/I 0.34 30.54 0.62 14.14 5.3

Mathers -0.31 10.16 -0.38 3.01 141.3

Hudson Investors -0.95 -32.17 -1.38 -30.33 0.2

Average 1.70 95.90 1.30 24.81

S&P 500 (Composite) 2.34 125.48 1.80 33.35

Using the Sharpe ratio, which measures return compared with volatility, Torray led over three years in both total and risk-rated return, but slipped in the one-year ranking.

U.S. Equity Aggressive Growth

THREE YEAR ONE YEAR

Return/ Total Return/ Total assets

TOP 10 unit of risk return unit of risk return in millions

Merger 2.85 40.14 2.56 11.65 460.1

Evergreen/Y 2.44 110.20 2.02 30.34 1080.9

FBP Contrarian Equity 2.24 100.10 1.73 25.42 27.5

Analytic Shares Enhanced Equity 2.14 112.38 1.59 29.86 6.9

Oppenheimer Capital Appreciation/A 2.08 117.97 1.28 26.32 1204.1

Rydex Series Trust Nova 2.06 172.49 1.58 42.33 487.7

Janus Twenty 1.86 125.88 1.26 29.70 5942.7

Princor Emerging Growth/A 1.80 96.54 1.29 22.94 347.3

Alliance Quasar/B 1.77 132.22 0.67 16.28 538.2

Nor
thern Select Equity 1.72 106.66 1.44 31.87 101.7

BOTTOM 5

American Heritage -0.01 15.29 2.02 75.00 19.7

Fontaine Trust Capital Appreciation -0.30 -3.46 -1.82 -27.31 3.4

Dreyfus Premier Aggressive Growth/A -0.35 -5.75 -0.66 -13.03 316.3

Frontier Equity Portfolio -0.75 -50.87 -1.10 -39.53 0.7

Rydex Series Trust URSA -2.12 -44.74 -1.71 -20.98 404.3

Average 1.05 78.53 0.79 19.12

Russell 2000 Trust 1.29 83.10 1.10 22.36

Merger Fund’s total return was nothing to write home about, but its return per unit of risk was well ahead of its peers’. Rydex improved last year, but not enough to avoid the cellar.

U.S. SMALL-CAP EQUITY

THREE YEAR ONE YEAR

Return/ Total Return/ Total assets

TOP 10 unit of risk return unit of risk return in millions

Evergreen Small Cap Equity/Y 3.16 111.35 3.08 33.62 $67.5

Longleaf Partners SmallCap 2.97 99.89 2.93 29.04 937.4

Heartland Growth: Value Plus 2.94 117.37 3.06 30.60 306.6

Mutual Discovery/Z 2.92 97.56 2.03 22.94 3,854.4

Wachovia Special Value/A 2.88 130.32 2.04 29.08 37.0

UAM FMA Small Company/Inst 2.61 119.61 3.37 40.39 47.9

T Rowe Price Small Cap Value 2.53 106.07 2.09 27.92 2,057.8

Keeley Small Cap Value 2.40 41.01 2.50 135.34 21.3

Dreyfus Growth & Value: SmallValue 2.42 129.99 1.58 25.96 396.1

Fidelity Low-Priced Stock 2.41 100.85 2.10 26.73 10,459.3

BOTTOM 5

Smith Barney Special Equity/B 0.33 42.25 -0.51 -6.38 257.5

Excelsior Small Cap/A 0.30 37.03 0.41 14.21 66.5

American Century-20th Century Giftrust 0.29 44.56 -0.20 -1.20 1,111.4

Govett Small Companies/A 0.16 32.09 -0.53 -12.59 135.9

AmTrust Value -0.50 -16.67 -1.08 -20.19 0.6

Average 1.28 87.39 1.06 21.43

Wilshire Smallcap Index 1.51 93.27 1.48 27.27

Evergreen’s three-year risk-rated return matched that of Torray, the growth sect
or leader, but its one-year figure was considerably better. AmTrust had no competition for last place.

International Equity Growth

THREE YEAR ONE YEAR

Return/ Total Return/ Total assets

TOP 10 unit of risk return unit of risk return in millions

Janus Overseas 1.69 85.91 0.87 18.23 3107.4

Tweedy Browne Global Value 1.60 63.66 1.78 22.96 1932.2

Scout Worldwide 1.37 60.61 1.05 18.35 55.2

GAM Int’l/A 1.19 82.99 1.13 29.07 1667.1

Fidelity Diversified Int’l 1.16 61.02 0.63 13.72 1496.7

BT Int’l Equity 1.15 65.31 0.77 17.37 547.1

Amer AAdvantage Int’l/Inst 1.10 54.44 0.35 9.56 238.3

Dresdner RCM Int’l Growth Equity 1.09 64.03 0.78 17.93 97.5

Morgan Stanley Inst Int’l Equity/A 1.07 52.70 0.74 13.98 2790.0

Amer AAdvantage Int’l/Plan 1.05 52.68 0.33 9.26 24.8

BOTTOM 5

Merrill Int’l Equity/B -0.28 4.43 -0.64 -5.95 435.2

CIGNA Inst Int’l Stock -0.31 2.68 -0.52 -4.93 7.8

Strong Int’l Stock -0.38 0.08 -1.15 -14.20 165.1

Colonial Int’l Fund for Growth/B -0.40 0.56 -0.63 -5.63 47.3

State Street Research Int’l Equity/B -0.70 -9.01 0.66 -5.59 21.0

Average 0.33 29.15 0.05 5.56

MSCI World except US 0.17 22.88 -0.15 2.56

There isn’t a huge spread between the best and the worst here. Janus, the three-year leader, skidded behind three others in one-year risk-rated and total returns.

U.S. EQUITY GROWTH & INCOME

THREE YEAR ONE YEAR

Return/ Total Return/ Total assets

TOP 10 unit of risk return unit of risk return in millions

Vontobel U.S. Value 3.51 128.62 3.26 34.31 127.5

Royce Total Return 3.50 97.05 2.74 23.70 102.7

UAM FPA Crescent/A 3.34 88.87 2.76 21.95 153.2

T. Rowe Price Dividend Growth 3.17 115.98 2.39 30.77 684.4

Kemper Dreman High Return/A 3.04 149.53 2.02 31.93 1,380.8

Portico Growth & Income/Instl 3.00 125.11 2.31 33.54
380.7

Legg Mason Total Return/Primary 2.86 135.07 2.48 37.50 555.2

Evergreen Growth & Income/Y 2.85 116.04 2.49 31.25 681.5

Addison Capital Shares 2.82 123.93 2.00 29.30 72.4

Legg Mason Total Return/Navigator 2.79 138.10 2.59 39.03 15.5

BOTTOM 5

FPA Paramount 0.80 43.22 -0.56 -1.76 753.7

Merrill Asset Growth/B 0.39 28.32 0.17 7.28 8.1

Steadman Associated -0.05 12.12 -0.22 -1.33 3.9

Steadman Investment -0.36 -5.32 -0.15 1.14 1.6

Steadman American Indust -0.61 -27.55 -0.56 -12.35 0.9

Average 2.10 103.01 1.61 27.11

S&P 500 2.34 125.48 1.80 33.35

Vontobel barely edged out Royce in the three-year rankings, but was well ahead of the pack in 1997. Its risk-rated return topped all sectors. Three Steadman funds fought for last.

Global Emerging Markets Equity

THREE YEAR ONE YEAR

Return/ Total Return/ Total assets

TOP 10 unit of risk return unit of risk return in millions

Nicholas-ApplegateEmerging Country/I 0.53 50.86 0.20 10.12 69.6

Pioneer Emerging Markets/A 0.25 32.60 0.19 9.87 88.2

EV Traditional Emerging Markets 0.23 28.85 -0.33 -2.65 4.7

Evergreen Emerging Market Growth/Y 0.21 28.42 0.39 13.74 61.0

EV Marathon Emerging Markets 0.18 25.96 -0.33 -2.85 10.0

USAA Investment Trust Emerging Market -0.01 16.67 0.36 -3.46 266.8

Wachovia Emerging Markets/A -0.03 14.29 -0.39 -4.01 8.0

Templeton Developing Markets/1 -0.07 11.37 -0.52 -9.41 3,605.4

Sit Developing Markets Growth -0.15 6.41 -0.36 -5.20 12.8

TCW Galileo Emerging Markets -0.16 5.57 -0.21 -0.46 47.1

BOTTOM 5

PaineWebber Emerging Markets/C -0.53 -13.21 -0.41 -5.34 5.1

Ivy New Century/B -0.53 -15.55 -1.20 -27.93 9.5

UAM Acadian Emerging Markets -0.54 -15.49 -0.82 -15.91 74.7

GT Global Emerging Markets/A -0.72 -23.85 -0.78 -16.05 106.0

Fidelity Emerging Market -0.75
-36.92 -1.35 -40.77 463.1

Average -0.21 3.57 -0.30 -3.32

IFCI Composite TR -0.53 -14.70 -0.76 –