NEW YORK (CNN/Money) – If you own one of the mutual funds alleged to have been market-timed or late traded, why not channel your anger productively and realize what the scandal really has brought to light: That a lot of the funds implicated so far haven't been a great place for your money anyway.
At least judging by long-term performances.
To date, 39 funds have been identified either by regulators or a fund family as being targets of market timers or late traders. (Track the funds here.)
There are plenty of others, though.
In fact, the SEC has said as many as half of fund companies have had market-timing arrangements. And in cases where firms such as Prudential had brokers that were alleged to have facilitated improper trades, they had access to a broad group of funds.
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Using Morningstar data, we looked at the three-, five- and 10-year performance records of the 39 funds that have been named to see how their performance compared with that of their peers.
We found that 15 of the funds ranked in the bottom half of their categories for two to three of those periods. And of those 15 funds, eight ranked in the bottom quarter for at least one of those periods.
One of the worst offenders was OneGroup LargeCap Value (OLVAX), which ranked in the 96th percentile of its category on a three-year basis; in the 76th percentile over five years; and in the 77th percentile over 10 years.
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Other funds that were bottom performers for all three periods: Janus Enterprise (JAENX) (which took above-average risk and delivered three-year returns that were nearly 12 percentage points below its category average); Nations Value (NVLEX); OneGroup Diversified Equity (PAVGX) ; OneGroup Diversified Midcap (PECAX), and OneGroup Equity Income (OIEIX).
Alger SmallCap (ALSAX), meanwhile, which doesn't have a 10-year record yet, ranked in the 98th percentile of its peers over five years, with a return that fell more than 13 percentage points below its category average.
By contrast, only seven of the 39 funds ranked in the top half of their categories for two to three of the time periods measured. Of those, only four ranked in the top quarter for more than one time period.
The best performer in these respects was Putnam International Equity (POVSX), which was the only fund to have ranked in the top half of its category for all three periods. It ranked in the 47th percentile of its category over three years; in the 8th percentile over five years; and in the 2nd percentile over a 10-year time horizon.
(To view the records of the funds that have been implicated in the market timing scandal so far, click here.)
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