Table: The Year Of Red Ink

No category of funds escaped the scourge of rising interest rates. Tax-
      free funds fared worse than most taxables. World bond funds did worst of all.
      
      FUND OBJECTIVE                 TOTAL RETURN*    BEST PERFORMER OF GROUP (1994)
                               1994 1992-94** 1990-94**
      GOVT.-ADJ.RATE MTGE.    -2.3%   2.1%    5.2%    Smith Breeden Sh. Dur. U.S. 
      Govt.
         GOVT.-MORTGAGE       -2.5    3.4     6.8     Fidelity Mortgage Securities
      CORP.-HIGH-QUALITY      -2.7    4.2     7.0     Seven Seas Yield Plus
      CONVERTIBLE             -3.5    8.8     9.6     MainStay Convertible B
      GOVT.-GENERAL           -3.8    3.4     6.5     Bernstein Govt. Short Duration
      CORP.-HIGH-YIELD        -3.8   10.9    10.9     Fidelity Spartan High-Income
      CORP.-GENERAL           -4.1    5.1     7.5     Strong Advantage
      GOVT.-TREASURY          -4.7    4.1     6.8     Permanent Port. Treasury Bill
      MUNI.-NATIONAL          -5.1    4.7     6.3     Calvert Tax-Free Res. Lim.-
                                                      Term A
      MUNI.-SINGLE STATE      -5.8    4.8     6.5     Thornburg NM Intermediate Muni A
      SH.-TRM. WORLD INCOME   -6.1    1.0     NA      Dean Witter Global Sh.-Term 
      Income
      MUNI.-CALIFORNIA        -6.7    4.4     6.1     Benham CA Tax-Free Short-Term
      MUNI.-NEW YORK          -6.9    4.6     6.4     Limited Term NY Municipal
      WORLD BOND              -8.2    3.5     7.5     Benham European Government
      ALL BOND FUNDS          -4.9    4.8     7.0
      TAXABLE FUNDS           -4.0    5.0     7.7
      TAX-FREE FUNDS          -5.8    4.7     6.4
      *Pretax, includes reinvestment of dividends and capital gains   **Average 
      annual        DATA: MORNINGSTAR INC.
      
Before it's here, it's on the Bloomberg Terminal.
LEARN MORE