S&P Releases Mid-Year 2003 Review on High-Yield Bond Funds 

    NEW YORK, July 3 /PRNewswire/ -- Standard & Poor's, a leading provider of
independent investment research, ratings, and indices released today the
results of its mid-year 2003 review of high-yield bond funds.  According to
figures from Standard & Poor's mutual fund database, high-yield bond funds
returned 12.48% through the first half of the year, and 7.53% in the second
quarter alone.  Domestic bond funds overall had an inflow of $8.97 billion in
May, compared with an inflow of $10.54 billion in April.
    According to Standard & Poor's, high-yield bond fund performance has been
aided by the low interest rate environment in 2003, investors continuing to
remain cautious with respect to equity investments, and the lower number of
corporate defaults.  "The driving force behind the performance of high-yield
funds this year is really the low interest rates," explains Joel Friedman,
Director of Funds Research at Standard & Poor's.  "In the current low rate
environment, yields for funds that invest in speculative-grade bonds are more
attractive than those for competing fixed-income investments, such as
Treasuries or money-market accounts."
    "The performance of this group was also helped by the fact that investors
gained confidence in high-yield bonds as default rates for the securities they
invest in declined in the first half of the year," continues Friedman.  Data
from Standard & Poor's through May 31st, show the default rate has moved down
to 6.14% in 2003 after hovering around 10% in 2001 and 2002.
    As for the remaining six months, Standard & Poor's sees some opportunity
in high-yield bonds but not to the extent of what was seen in the first half
of the year.  "High-yield bonds funds will always remain susceptible to
volatility," adds Friedman.  "Should interest rates begin to creep back up or
default activity increase, the high-yield bond fund market could see some
price pressure.  In addition, as spreads tighten further, there may be fewer
opportunities for investors in high-yield bond funds."
    A table showing the performance of high-yield bonds funds can be found at
the bottom of this release.

     Time Period           Average Percentage Return For High-Yield Bond Funds
     First Quarter 2003    4.55%
     Second Quarter 2003   7.53%
     First Half 2003       12.48%

     Time Period           Average Percentage Return For High-Yield Bond Funds
     First Quarter 2002    .95%
     Second Quarter 2002   -4.60%
     First Half 2002       -3.69%

     Source:  Standard & Poor's
     Data Though:  June 30, 2003

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