Consistent Performers

By ROB WHERRY

Corporate America just closed the books on the third quarter. The recap of this one is much like the four before it: Companies are struggling to grow amid a brutal global economic slowdown. And that dismal performance has had a domino effect on the mutual-fund industry. Of the 78 fund categories tracked by Lipper, none are in the black this year.

While some funds have managed to keep their heads above water, hundreds, if not thousands, of others are down even more than the S&P 500-stock index's 23%. If only there was a happy medium between the winners and losers.

Well, there is. This week's fund screen centers on consistent performers. These funds got the top score on two Lipper criteria -- consistent return and preservation -- that measure an offering's ability to provide smooth, long-term performance regardless of market conditions. Consistent return compares a fund's risk-adjusted returns over the trailing three-, five- or 10-year periods to those of its rivals. Preservation looks at the number of money-losing months a fund had during those same periods. A "5" rating is the best in each category, and a "1" is the worst.

The funds that made our cut this week rated a "5" in Lipper's consistent-return and preservation categories. The funds charged less than a 1.5% annual expense ratio, required a minimum investment under $5,000 and were open to new investors. They had track records that put them in the top 10% of their categories during the trailing three- and five-year time periods. The funds also had year-to-date returns that exceeded the S&P 500; below is a look at 10 of the 18 funds that made the list, ranked by year-to-date returns. As usual, we didn't consider load funds.