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Overseas Funds Rose Solid 5.11% In First Quarter.(SERIES: MUTUAL FUND QUARTERLY)(IBD SPECIAL REPORT)

Investor's Business Daily

| April 02, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: MURRAY COLEMAN

Mutual funds that invest abroad managed to post gains for the first quarter despite a March sell-off that took a bite out of returns.

During March, world stock funds rose on average by 0.71%, according to preliminary Lipper Inc. figures. U.S. diversified stock funds returned -0.61%.

"Everybody was hit by a slight correction," said Peggy McKay, manager of the $65 million JohnsonFamily International Value Fund. "But the quarter was fairly decent."

Overall, the average world stock fund gained 5.11% in the first quarter. That includes funds investing partially in the U.S. Strictly domestic stock funds wound up returning 2.98% in the first quarter.

"If it wasn't for Japan, world markets would've done much worse as a whole than the U.S. in the past month," said McKay.

Japanese Rebound

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