It's no surprise that fund companies place performance center stage when the going is good. And according to one writer for the Wall Street Journal, it looks like those times have returned.

But good times -- at least for investors -- they're not. According to the article, fund firms have a history of touting performance in advertising at the worst possible buying opportunity for investors. (The writer examined advertisements in the April issue of one personal finance magazine from 2000 to 2005.)

Take April of 2000, for instance. The reporter counted 20 performance-based advertisements, ten of which promoted funds with one-year gains of at least 100 percent.

Ad languaged included "Our international fund numbers are beautiful. Wish you were here," from a Federated Investors ad; "Where do these numbers come from?" in a Strong Investments ad; and "Opportunity rarely knocks this loudly," in a Scudder ad.

But by April of 2003, a real buying opportunity, only three fund firms had advertisements in the magazine that mentioned performance.

From this small sampling, it's clear that fund firms are locked in a herd mentality, at least when it comes to advertising to retail investors. But what's a fund firm to do when times are tough? While it makes no sense to flaunt performance when investors are fleeing, it may make sense to explain to investors why the timing is right.

Take the April 2003 issue, for example. A fund firm that advertised at all was competing with only two other ads to have its message heard, versus 19 in the 2000-era.  

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