For the first time in 5 1 / 2 years, taxable bond mutual funds are generating quarterly returns for investors at the same time U . S . stock funds are losing money.
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The latest quarter marked the first time in 5 1 / 2 years that taxable bond mutual funds generated quarterly returns at the same time U . S . stock funds were losing money.
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The $ 88 billion California Public Employees'Retirement System, the country's largest public fund, returned 7.2 percent for the quarter, it's biggest quarterly return ever.
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The Vanguard Wellesley Income fund, with a combination of stocks and bonds that neatly tied together both themes, ranked seventh among diversified domestic stock funds; its quarterly return was 1.65 percent.
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For example, John J . Brennan, president of the Vanguard Group, suggested using a bar chart of quarterly returns and measuring them against an index, like the Standard & AMP; Poor's 500.
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This year is likely to be " a leveling-off period of performance, " with quarterly returns hitting between high, single-digit negatives and high, single-digit positives, said Reyes.
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The industry's quarterly returns have been decaying since reaching a peak of 59.4 percent for the three months ended in December 1999 . For all of 1999, venture capitalists reveled in returns averaging 165 percent.
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But it represents a sharp slowing from the peak quarterly return of 59.4 percent recorded in the fourth quarter of 1999, according to a report released Friday by Venture Economics, a research firm based in New Jersey.
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The GAM Global fund's 20.9 percent return was the second-best quarterly return, and the GAM International fund, which invests worldwide except in the United States, ranked No . 8, with 17.54 percent.
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Emboldened by quarterly returns that peaked at 59 percent in 1999, institutional investors began to boost their allotment for venture capital from 1 percent to 2 percent of assets, said Gregory Sands, managing director for Sutter Hill Ventures in Palo Alto.