The Palm Beach Post from West Palm Beach, Florida on March 28, 1998 · Page 101
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The Palm Beach Post from West Palm Beach, Florida · Page 101

West Palm Beach, Florida
Issue Date:
Saturday, March 28, 1998
Page 101
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SATURDAY. MARCH 28, 1998 The Palm Beach Post SECTION S .,,,,,,,, j,i -., - r WEEKEND If (Of C .juL'J i 5jJ Um Jane Bryant Qucnn , STOCKS There are lessons to be learned from the Beardstown Ladies STORY, 21S Beardstown Ladies get it wrong: They earn doo-da UPPER A look at the most noteworthy funds m America. By Lipper Analytical Services, Inc. and The Associated Press. Note: Funds must have five years of performance history in order to be evaluated. Rushmore American Gas Index Fund Betting on the natural gas industry The fund seeks investment results that correlate to an index comprising the common stocks of natural gas distribution and transmission company members of the American Gas Association. The Rushmore American Gas Index enables investors to minimize the large swings many natural resource funds experience, and to capitalize on the growing natural gas industry without having to pick and choose the gas companies to invest in. Fund family Rushmore Group Phone 800-621-7874 Adviser Money Management Associates Portfolio manager Team Managed Fund began 1989 Total net assets $239.5 million as of Feb. 27 Minimum first investment $2,500 ' Load (maximum) None Redemption fee None 12b-1 plan None I Expense ratio 0.85 Natural Resources The fund ranked second out of 49 funds in the natural resources funds objective for the year ending March 19; for the five-year performance period the fund ranked ninth out of 48 funds. (As of Dec. 31) of total of total of total Asset allocation net assets Top sectors net assets Top holdings net assets Common 99.1 . Diversified companies 50.0 Enron Corp. , 4.7 Convertibles 0.0 Gas utilities 28.0 Consolidated Natural Gas 4.7 Bonds 0.0 Combination companies 22.0 Duke Energy Co. 4.6 Cash & Equivalents 0.9 Williams Co. 4.5 Other 0.0 El Paso Energy 4.2 The Rushmore American Gas Index Fund is managed to mirror the American Gas Association Index of gas companies. The AGA is a trade association composed of 300 natural gas distribution, transmission, gathering and marketing companies in North America. Following the index allows the fund to diversify across both geographic regions and capitalization size as well as provide steady, long-term capital appreciation. Changes are made in the composition of the fund when companies drop out of the AGA index or when mergers and liquidations change the index composition. However, changes in this passively managed fund ; are rare, exemplified by an extremely low turnover rate of 8.2 percent for the fiscal year ending March 31, 1997. Traditionally, natural gas prices have closely followed the price of crude oil. This held true until early this year when natural gas prices held steady as crude oil prices fell. Natural gas now stands on its own which, according to fund originator Phil Borish, is a mixed bag of positives and negatives for his gas index fund. Natural gas' newfound independence from the price of crude enabled the Rushmore American Gas Index Fund to avoid the recent losses many of its peers within the natural resource fund objective suffered. The fund gained 3.26 percent for the four-week period ending March 19, compared to 2.54 percent for the objective average. However, the independence also means that large industrial users who have the capability to switch from natural gas to oil-based energy may move away from the slightly higher priced gas. Deregulation of the natural gas industry has opened the door for consolidation, and many large power companies are taking advantage. The natural gas industry is undergoing a phase of convergence as large electric companies buy up natural gas companies in an effort to become "a one-stop shop" for consumer energy needs. Borish foresees the overall effect of this convergence to be positive as the newly formed companies continue to grow stronger. - By Lipper Analytical Services ; NEW YORK I keep waiting to hear which charity the Beardstown Ladies will designate to receive their ill-gotten gains. ; The Ladies belong to that famous small-town investment club, whose elderly members claimed an average annual investment return of 23.4 percent from 1984 to 1993. Their performance, they said, was double that of the stock market as a whole, as measured by Standard & Poor's 500-stock average. Based on those claims, they've sold 732,000 copies so far of The Beardstown Ladies Common-Sense Investment Guide (subtitled, "How We Beat the Stock Market and How You Can, Too"). The cover shows 16 happy and apparently wealthy Ladies, each with a fan of greenbacks in her hand. ; They're almost certainly wealthy now. Three additional Beardstown financial books have sold 415,000 copies, according to their publisher, Hyperion Press, a division of Disney Publishing. A new book, on stock picking, just shipped 130,000 copies. You can see the Ladies on video. An estate-planning book is due next year. They're in steady demand for personal appearances. There's just one problem. Ther market-beating claim was wrong. Over that 10-year period, the Ladies actually earned a mediocre 9.1 percent annually, according to an audit by the accounting firm Price Please see QUINNZZS Rushmore American Gas Index Fund Xnite. 1$ On a scale of A to E How did this How did this fund rank? 2QQQQ y 1MQQ lfiflQQ 14QQQ UKBO B0Q0 . am tow 2000 I V V V V V (As of March 19) Avg. for all funds In obj. B Current Market D B Last Bear Market A NA Last Bull Market B Cumulative This return fund lYear 24.26 5 Years 81.92 10 Years NA 12-Month Yield 2.49 1 T V D 1 " ' ' ' ' ' e If you had invested $2,500 five years ago, and added another $500 every quarter, the result would be $20,264.10. The total value includes change in share price, reinvestment of dividends and capital gains. It is not intended to portray the future performance of this fund or any fund. 2.40 76.72 154.20 NA n mm Available Mornings, Afternoons, Evenings & Weekends. All Classes are Taught Hands-on and Begin Weekly. oQuickenQuickbooks 0 Desktop Publishing Autocad Intro to Computers Windows 95 Word Excel 0 Internet HTML Computer Repair Front Page 98 Visual Basic . . . and more All Sessions include a 100 Learning Guarantee, unlimited Phone Support, Free Practice Time & Free Refresher Courses! H MONTHLY SPECIAL I FREE QUICKBOOKS CLASS! ! WITH PURCHASE OF A REGULARLY SCHEDULED QUICKBOOKS CLASS Not available with any other offer. ! No coupon necessary! 7 eaj' ' Quality Computer Training and Emergency Repairs West Palm Beach: C020 Qlxc(k:2 C!vd, Suite 2CD Across from Turnpike (551) 604-3333 E:ca Raton: 7035 Zxzaa Xhj, S . : : 2C3 N7 cf Fcv. ziV.zz & Pilsctto Park tezis (351) 730-7379 Pembroke Fines: 154 S. fkrr.hp Hi. SV cf nncsFh-'np 2 doers 11 cf Putlix (354) 7044444 PS t i . y:frr"dJ;a0r:rU:i::ty (S3)-FC-12345 ,

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