TEXT-Latin America funds fall 17.67 pct in the week-Moody's
Reuters, 01.24.03, 2:13 PM ET
Ratings News Emerging Markets Latin America Corporate Rating News (The following statement was released by the ratings agency) MOODY'S REPORTS: LATIN AMERICA FUNDS FALTER, HEADLINE LOSING WEEK FOR EQUITY FUNDS NEW YORK, Jan 24 - Latin America funds plummeted 7.67% in the week ended January 23, Moody's Investors Service reports, as the region remains troubled. "The Brazilian central bank's decision to increase interest rates produced a negative reaction," says Moody's funds analyst Keith Murray. "In addition, Mexican telecommunications and construction firms reported losses, and Venezuela's troubles remain on the minds of investors," adds Murray. Latin America funds are off 2.59% year to date. Elsewhere, metals funds continued their long-running rise with a 3.47% advance this week. "Gold is sitting at a six-year high due largely to war fears and the weak U.S. dollar," says Murray. Metals funds are up 4.54% so far this year. Overall, the U.S.-based equity fund market declined by 2.52% in the week ended January 23, as measured by Moody's Composite Total Equity Fund Index. The index tracks the daily returns of 2,648 unique fund portfolios. Domestic Funds Flop Across the Board Despite a solid Thursday, domestic equity funds slumped this week, with value funds leading the losers with a 2.95% decline. Weak earnings outlooks from stalwarts such as Eastman Kodak coupled with economic concerns to swamp U.S. stocks. Growth and income offerings lost 2.77% and growth funds declined by 2.52%, as no investment style was spared. Balanced funds were the week's top domestic performers, aided by their fixed-income allocation, but still incurred a 1.48% loss. Europe Slides, Japan Slightly Optimistic Europe funds declined by 3.67% this week, as fear over a potential war with Iraq weighed heavily on results. British equities slipped to their lowest levels since December 1995, as investors sought safety. In Japan, Mizuho bank, Japan's largest lender, raised a larger than expected amount of capital which sparked positive momentum for Japanese equities early in the week. Japan funds are up 2.84% in 2003. Utilities Remain Powerless Utilities funds declined 3.02% this week, as the energy sector remains under pressure. Utilities funds are down 0.69% since the close of 2002, when the peer group declined 22.65%. Following are yesterday's closing prices and returns data for Moody's Equity Mutual Fund Indices: MOODY'S EQUITY MUTUAL FUND INDICES AS OF JANUARY 23, 2003 DOMESTIC EQUITY MUTUAL FUND INDICES: Index Val .. Total Ret .. YTD Total Ret .. 1 Yr Moody's Value Equity Fund Index 124.49 .. 0.63% .. 0.19% .. -14.90% Moody's Small Capitalization Value Equity Fund Index 149.16 .. 0.79% .. -0.18% .. -11.19% Moody's Small Capitalization Equity Fund Index 137.41 .. 0.82% .. 0.05% .. -18.56% Moody's Growth & Income Equity Fund Index 119.02 .. 1.00% .. 0.67% .. -20.23% Moody's Moderate Growth Equity Fund Index 107.66 .. 1.26% .. 1.12% .. -22.63% Moody's Growth Equity Fund Index 165.45 .. 1.03% .. 0.64% .. -17.98% Moody's Aggressive Growth Equity Fund Index 117.04 .. 1.09% .. 0.76% .. -25.88% Moody's Balanced Fund Index 119.83 .. 0.53% .. 0.39% .. -8.62% Moody's Medium Capitalization Equity Fund Index 127.53 .. 0.82% .. 0.58% .. -15.95% WORLD/FOREIGN/REGIONAL EQUITY MUTUAL FUND INDICES: Index Val .. Total Ret .. YTD Total Ret .. 1 Yr Moody's World Equity Fund Index 92.46 .. 0.63% .. -0.25% .. -18.17% Moody's Europe Equity Fund Index 95.61 .. 0.10% .. -1.76% .. -17.13% Moody's Foreign Equity Fund Index 101.64 .. 0.21% .. -0.42% .. -10.40% Moody's Japan Equity Fund Index 83.36 .. 1.74% .. 2.84% .. -5.88% Moody's Emerging Markets Equity Fund Index 64.70 .. 0.61% .. 1.64% .. -7.37% Moody's Pacific Rim Tiger Equity Fund Index 57.55 .. 0.52% .. 4.09% .. -8.68% Moody's Latin America Equity Fund Index 66.01 .. 0.22% .. -2.59% .. -23.10% Moody's Pacific Basin Equity Fund Index 76.80 .. 1.03% .. 2.38% .. -6.99% Moody's China Equity Fund Index 67.73 .. 0.05% .. 4.27% .. -9.77% SECTOR EQUITY MUTUAL FUND INDICES: Index Val .. Total Ret .. YTD Total Ret .. 1 Yr Moody's Real Estate Equity Fund Index 127.21 .. 0.25% .. -3.45% .. -0.81% Moody's Utilities Equity Fund Index 110.63 .. -0.05% .. -0.69% .. -20.66% Moody's Natural Resources Equity Fund Index 113.62 .. 1.01% .. -1.39% .. 0.06% Moody's Health Equity Fund Index 178.39 .. 0.41% .. 2.38% .. -20.99% Moody's Technology Equity Fund Index 126.26 .. 1.84% .. 3.25% .. -29.52% Moody's Metals Equity Fund Index 98.10 .. 2.44% .. 4.54% .. 60.90% Moody's Communications Equity Fund Index 171.15 .. -0.27% .. 0.43% .. -12.40% Moody's Finance Equity Fund Index 156.97 .. 0.85% .. 1.34% .. -9.21% COMPOSITE EQUITY MUTUAL FUND INDICES: Index Val .. Total Ret .. YTD Total Ret .. 1 Yr Moody's Composite Domestic Equity Fund Index 125.60 .. 0.93% .. 0.54% .. -18.27% Moody's Composite World and Foreign Equity Fund Index 87.23 .. 0.35% .. -0.38% .. -13.60% Moody's Composite Total Equity Fund Index 116.30 .. 0.84% .. 0.49% .. -16.98% Moody's Equity Mutual Fund Indices track the daily average total return performance of 2,648 equity oriented mutual funds that are classified into 26 clusters, or peer groups. Moody's also calculates three composite indices. With total net assets of about $2.2 trillion as of June 30, 2002, the Moody's indices include funds with a three year performance history that meet Moody's inclusion requirements, or about 59% of all assets invested in stock and hybrid investment companies. Funds are objectively classified on the basis of past weekly returns over a period of three years, using statistical factor analysis and cluster analysis. The indices were established with a base value of 100.00 as of March 31, 1997, and daily index values have been calculated since that date. In addition, the indices have been back-casted to March 31, 1995 with weekly total return values calculated on the basis of peer group assignments established as of March 31, 1997. Visit Moody's Managed Funds homepage at www.moodys.com or email us at equityfunds@moodys.com for more information on Moody's Equity Fund Indices and Moody's Fund Analyzer software package.