Funds With Low Expense Ratios Outperforming Their More Expensive Peers Over
 Long Term, Says S&P 

    NEW YORK, June 11 /PRNewswire/ -- Standard & Poor's, a leading provider of
independent investment research, ratings and indices, reported today that, on
average, funds with lower expense ratios have outperformed their more
expensive peers in eight out of the nine domestic fund style categories over a
one, three, five, and ten-year annualized basis.  The only exception was the
Mid-Cap Blend investment style, where funds with a higher expense ratio
outperformed their less expensive peers on a one, five, and ten year
annualized basis.
    Standard & Poor's began its research by determining the average expense
ratio for each of the nine domestic fund style categories.  It then sorted the
funds in each of the nine style categories into two groups -- those with an
expense ratio below the average of their peers and those with an expense ratio
that was higher.  It then compared the average annualized return for each of
the two groups over a one, three, five, and ten-year performance period to
determine if a fund's return justified the level of its expenses over the long
term.  Standard & Poor's found that for funds with larger than average expense
ratios; a higher return was not necessarily something investors wound up with
in eight of the nine style categories.
    "Investors don't always take expenses into account when selecting a mutual
fund because they are typically stated in percentage terms -- making it harder
to translate in a meaningful way," notes Phil Edwards, Standard & Poor's
Managing Director of Funds Research.  "Investors need to pay closer attention
to expenses, especially in a market environment where returns are expected to
be in the single digits.  It is in this type of setting that expenses can take
a larger proportion of a fund's return."
    A table showing the average performance of the funds with expense ratios
above and below the average for their style category can be found at the
bottom of this release.


    Style Category           1-Year     3-Year     5-Year   10-Year    Average
                             Return     Return     Return    Return    Expense
                              (%)        (%)         (%)       (%)      Ratio
    Average Large-Cap
     Growth Fund             -16.12     -19.78      -4.34      7.27      1.6
    Funds Above Average
     Expense Ratio           -16.70     -20.80      -5.50      6.05     2.24
    Funds Below Average
     Expense Ratio           -15.66     -19.03      -3.71      7.59     1.10

    Average Large-Cap
    Blend Fund               -14.65     -13.20      -3.55      8.11     1.26
    Funds Above Average
     Expense Ratio           -14.95     -13.33      -4.33      6.42     1.85
    Funds Below Average
     Expense Ratio           -14.39     -13.11      -2.99      8.59     0.75

    Average Large-Cap
     Value Fund              -15.92      -5.66      -1.98      8.41     1.41
    Funds Above Average
     Expense Ratio           -16.46      -6.23      -2.61      7.24     1.94
    Funds Below Average
     Expense Ratio           -15.45      -5.20      -1.54      8.74     0.97

    Average Mid-Cap
     Growth Fund             -19.09     -18.83      -2.52      7.01     1.69
    Funds Above Average
     Expense Ratio           -19.60     -19.80      -3.53      4.69     2.22
    Funds Below Average
     Expense Ratio           -18.60     -17.94      -1.80      7.69     1.19

    Average Mid-Cap
     Blend Fund              -15.60      -4.81       1.61      9.66     1.26
    Funds Above Average
     Expense Ratio           -15.44      -4.94       2.38     10.37     1.78
    Funds Below Average
     Expense Ratio           -15.75      -4.70       1.00      9.33     0.76

    Average Mid-Cap
     Value Fund              -15.38       2.89       1.91     10.17     1.48
    Funds Above Average
     Expense Ratio           -15.85       1.12       0.27      8.74     1.98
    Funds Below Average
     Expense Ratio           -15.02       4.04       2.63     10.47     1.11

    Average Small-Cap
     Growth Fund             -22.99     -16.88      -3.54      5.92     1.78
    Funds Above Average
     Expense Ratio           -23.54     -19.07      -5.32      2.44     2.55
    Funds Below Average
     Expense Ratio           -22.60     -15.43      -2.42      7.49     1.25

    Average Small-Cap
     Blend Fund              -19.61      -2.75       0.34      9.47     1.44
    Funds Above Average
     Expense Ratio           -20.37      -3.96       0.44      6.19     2.06
    Funds Below Average
     Expense Ratio           -19.03      -2.04       0.28      9.64     0.97

    Average Small-Cap
     Value Fund              -18.23       5.28       1.21     10.03     1.60
    Funds Above Average
     Expense Ratio           -18.60       4.35       0.12      6.91     2.22
    Funds Below Average
     Expense Ratio           -17.99       5.87       1.86     10.67     1.16

     Source:  Standard & Poor's
     Data Through:  April 30, 2003

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