Welcome!

News Feed Item

Equity Funds Shift into High Gear in February, Morningstar Canada Data Show

TORONTO, March 4, 2014 /CNW/ - After starting the year with lacklustre returns in January, mutual funds in Canada that invest in equities shifted into high gear in February, posting strong gains. All but one of the 22 Morningstar Canada Fund Indices that measure the aggregate returns of equity funds were up during the month, with 17 of the indices increasing by 3% or more. Fixed income funds, which recorded big gains in January, were relegated to the bottom of the returns table but remained in positive territory last month, according to preliminary performance numbers today released by Morningstar Canada.

For the second month in a row, funds in the Precious Metals Equity category were the top performers in February with an average increase of 11.4%, owing to solid returns from gold producers. As these stocks are also major constituents of funds in the Natural Resources Equity, Canadian Focused Small/Mid-Cap Equity, and Canadian Small/Mid-Cap Equity categories, the fund indices that measure these categories were also among the top performers with February increases of 6.6%, 5.4%, and 4.7%, respectively.

"Investors flocked to gold, viewing it as a safe haven amid turmoil in emerging markets and recent political tension in Ukraine, and also after economic growth in the United States missed its fourth-quarter estimates just as the Federal Reserve began tapering its quantitative easing program," Morningstar Fund Analyst Vishal Mansukhani said.

Among sector-diversified equity categories, the best-performing fund index was European Equity with a 5.9% increase in February. The U.S. Equity category also had a good month with a 4.2% increase, while the International Equity and Global Equity fund indices were up 4.8% and 3.8%, respectively. The worst performer, and the only index to post a negative result for the month, was the Morningstar Japanese Equity Fund Index with a 0.5% decrease. Unlike recent months, currency effects had little impact on the performance of Canadian-based foreign equity funds in February.

"European stocks were buoyed by a positive outlook for corporate earnings, supported by improving exports and higher consumer confidence across the continent, which led to a recovery in domestic demand," Mansukhani said. "In the U.S. markets, investors took the decreased economic growth figures in stride and instead chose to focus on better-than-expected readings from Chicago Purchasing Managers Index, which suggested that the U.S. economic recovery continued in February. Investors also shrugged off declines in consumer confidence from areas that were most affected by winter storms and severely cold weather during the last few weeks. Moreover, investors speculated that the Federal Reserve will continue to maintain monetary support."

In Canada, the three largest stock market sectors—financials, energy, and materials—all increased by more than 4% last month, which led to strong returns for diversified domestic equity funds. The Morningstar Canadian Equity, Canadian Focused Equity, and Canadian Dividend & Income Equity fund indices increased by 3.7%, 3.6%, and 3%, respectively.

"Canadian consumer spending increased, companies added to their inventories, and the nation's economy accelerated more than expected last quarter. This led the S&P/TSX Composite Index to post its eighth straight monthly gain," Mansukhani said.

For more about February 2014 fund performance, go to www.morningstar.ca.

Morningstar Canada's preliminary fund performance figures are based on change in funds' net asset values per share during the month, and do not necessarily include end-of-month income distributions. Final performance figures will be published on www.morningstar.ca next week.

About Morningstar Research Inc. and Morningstar, Inc.
Morningstar Research Inc. is a Canadian subsidiary of Chicago-based Morningstar, Inc., a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on approximately 446,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 10 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and had approximately US$159 billion in assets under advisement or management as of Dec. 31, 2013. The company has operations in 27 countries.

©2014 Morningstar, Inc. All rights reserved.

SOURCE Morningstar Research Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effi...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
SYS-CON Events announced today that CHEETAH Training & Innovation will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CHEETAH Training & Innovation is a cloud consulting and IT training firm specializing in improving clients cloud strategies and infrastructures for medium to large companies.
"Tintri focuses on the Ops side of the DevOps, which basically is pushing more and more of the accessibility of the infrastructure to the developers and trying to get behind the scenes," explained Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that TMC has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo and Big Data at Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Global buyers rely on TMC’s content-driven marketplaces to make purchase decisions and navigate markets. Learn how we can help you reach your marketing goals.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...