Stock Portfolios' Assets Remain within Comfortable Limits, According to Latest Turner Investment Partners Study

Business Wire, March 24, 2008

BERWYN, Pa. -- In its latest asset-capacity study, Turner Investment Partners revised the capacity limits for its 23 primary stock portfolios, noting that most of the portfolios remain well within those limits.

Turner sets asset limits and subsequently closes the portfolios (and their corresponding mutual funds) when those limits are reached, in an effort to help preserve the portfolios' return potential. The study notes that research "has confirmed an inverse relationship between the size of assets under management and investment performance -- that is to say, the larger a stock portfolio's asset base, the more deleterious the effect on performance."

The study, written by David Kovacs, chief investment officer, quantitative strategies, and Bob Turner, chairman and chief investment officer, is updated at least once annually. For the first time, it establishes asset limits not only for the 23 individual portfolios but for 11 groups of portfolios, based on capitalization segment and investment style (for example, large-cap growth, quantitative mid-cap, small cap core/value). As a result, a portfolio is now subject to closing either when it reaches its own individual asset limits or when the entire group of portfolios of which it is a part hits that particular group's collective asset limits.

The authors contend that developing limits for the 11 broad portfolio groups "is a refinement that will enable us, when the need arises, to close our portfolios more efficiently -- and more flexibly -- than before."

The study details the methodology Turner uses to calculate the maximum asset capacity of its stock portfolios and groupings. It concludes: "Since the early days of our firm, we've believed that it's in the best interest of clients to close our portfolios when their assets reach a certain predetermined size -- a size established by in-depth research. Because portfolios can in fact be too big for their own -- and clients' -- good."

To read this study in its entirety, see the Turner Investment Partners Web site, www.turnerinvestments.com/asset-capacity study. Or call 484-329-2439 for a free copy of the piece.

The views expressed represent the opinions of Turner Investment Partners and are not intended as a forecast, a guarantee of future results, or investment recommendations. Past performance is no guarantee of future results. A company's fundamentals or earnings growth is no guarantee that its share price will increase.