Standard & Poor’s released its latest scorecard measuring the consistency of top mutual fund performers over three and five consecutive years. The semiannual scorecard also measures performance persistence, corrected for survivorship bias.

As of December 31, 2005, only 15.5% of large-cap funds, 10.2% of mid-cap funds, and 9.8% of small-cap funds maintained a top-quartile ranking over three consecutive 12-month periods. The data on the scorecard also show that 32.2% of large-cap, 27.3% of mid-cap, and 25.7% of small-cap funds consistently maintained a top half ranking over the same time period.

“Very few funds manage to maintain a consistent top quartile ranking for long periods of time,” says Srikant Dash, Index Strategist at Standard & Poor’s. “Our study shows that over five consecutive years, only 1.9% of large-cap funds, 3.1% of small-cap funds, and no mid-cap funds have maintaineda top-quartile ranking.”

The scorecard also evaluates the characteristics of those few funds that persistently maintain a top half or top quartile ranking. Standard & Poor’s data show that consistent performers have longer manager tenure at their funds, lower expenses relative to their peers, and have managed to minimize or avoid losses during the bear market relative to their peers.

“When we viewed consecutive 12-month performance or non-overlapping cumulative periods, consistent top performers all had experienced management teams with tenure higher than their peers,” says Rosanne Pane, Mutual Fund Strategist at Standard & Poor’s. “Experienced management teams can successfully maneuver their funds through a variety of market environments.”

Below is a list of ten funds in each equity fund category that showed persistent performance over five consecutive 12-month periods. The complete semiannual scorecard is available at .

LARGE-CAP FUNDS

Fund Name

Five-Year Return (Annualized %)

Open / Closed to New Investors

Hotchkis & Wiley Large Cap Value Fund/I (HWLIX)

13.1

Open

Dodge & Cox Stock Fund (DODGX)

11.0

Closed

RiverSource Diversified Equity Income Fund/A (INDZX)

9.8

Open

DFA U.S. Large Cap Value Portfolio III (DFUVX)

9.3

Open

American Beacon Large Cap Value/AMR (AAGAX)

9.2

Closed

LWAS/DFA U.S. High Book-to-Market Portfolio (DFBMX)

9.1

Open

Target Portfolio Trust:Large Cap Value (TALVX)

8.6

Open

Oppenheimer Value/A (CGRWX)

7.8

Open

Cambiar Opportunity Fund (CAMOX)

7.5

Open

Gabelli Equity Income/AAA (GABEX)

7.1

Open

MID-CAP FUNDS

Fund Name

Five-Year Return (Annualized %)

Open / Closed to New Investors

Hotchkis & Wiley Mid-Cap Value Fund/I (HWMIX)

17.7

Closed

Security:Mid Cap Value Fund/A (SEVAX)

16.1

Open

Janus Mid Cap Value Fund/Investor (JMCVX)

13.8

Open

Vanguard Selected Value (VASVX)

13.3

Open

Vanguard Strategic Equity (VSEQX)

11.8

Open

BlackRock Mid-Cap Value Portfolio/Inv A (BMCAX)

11.5

Open

SEI Institutional Managed Trust Mid-Cap Fund/A (SEMCX)

11.5

Open

Robeco Boston Partners Mid Cap Value/Inst (BPMIX)

11.1

Open

Westcore Mid-Cap Value Fund (WTMCX)

10.9

Open

Rochdale Mid/Small Value Portfolio (RIMKX)

10.9

Open

SMALL-CAP FUNDS

Fund Name

Five-Year Return (Annualized %)

Open / Closed to New Investors

Hotchkis & Wiley Small Cap Value Fund/I (HWSIX)

25.0

Closed

Perritt MicroCap Opportunities (PRCGX)

24.2

Open

RS Partners Fund (RSPFX)

23.6

Closed

n/i Small Cap Value Fund (NISVX)

21.1

Closed

Berwyn Fund (BERWX)

19.9

Open

DFA U.S. Small Cap Value Portfolio/II (DFAVX)

19.4

Open

DFA U.S. Small Cap Value Portfolio (DFSVX)

19.1

Open

Pacific Capital Small Cap/Y (PSCYX)

19.1

Open

Robeco Boston Partners Small Cap Value II/Inv (BPSCX)

18.9

Closed

MainStay Funds Small Cap Opportunity/I (MOPIX)

18.8

Open

Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.