Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Elizabeth White, Dana Gardner, tru welu, Blue Box Blog

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
The OpenStack cloud operating system includes Trove, a database abstraction layer. Rather than applications connecting directly to a specific type of database, they connect to Trove, which in turn connects to one or more specific databases. One target database is Postgres Plus Cloud Database, which includes its own RESTful API. Trove was originally developed around MySQL, whose interfaces are significantly less complicated than those of the Postgres cloud database. In his session at 16th Cloud...
There are 182 billion emails sent every day, generating a lot of data about how recipients and ISPs respond. Many marketers take a more-is-better approach to stats, preferring to have the ability to slice and dice their email lists based numerous arbitrary stats. However, fundamentally what really matters is whether or not sending an email to a particular recipient will generate value. Data Scientists can design high-level insights such as engagement prediction models and content clusters that a...
It's time to face reality: "Americans are from Mars, Europeans are from Venus," and in today's increasingly connected world, understanding "inter-planetary" alignments and deviations is mission-critical for cloud. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, discussed cultural expectations of privacy based on new research across these elements
In today's application economy, enterprise organizations realize that it's their applications that are the heart and soul of their business. If their application users have a bad experience, their revenue and reputation are at stake. In his session at 15th Cloud Expo, Anand Akela, Senior Director of Product Marketing for Application Performance Management at CA Technologies, discussed how a user-centric Application Performance Management solution can help inspire your users with every applicati...
The consumption economy is here and so are cloud applications and solutions that offer more than subscription and flat fee models and at the same time are available on a pure consumption model, which not only reduces IT spend but also lowers infrastructure costs, and offers ease of use and availability. In their session at 15th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed this shifting dynamic with an ...
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackI...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT transformation?
The recent trends like cloud computing, social, mobile and Internet of Things are forcing enterprises to modernize in order to compete in the competitive globalized markets. However, enterprises are approaching newer technologies with a more silo-ed way, gaining only sub optimal benefits. The Modern Enterprise model is presented as a newer way to think of enterprise IT, which takes a more holistic approach to embracing modern technologies.
For better or worse, DevOps has gone mainstream. All doubt was removed when IBM and HP threw up their respective DevOps microsites. Where are we on the hype cycle? It's hard to say for sure but there's a feeling we're heading for the "Peak of Inflated Expectations." What does this mean for the enterprise? Should they avoid DevOps? Definitely not. Should they be cautious though? Absolutely. The truth is that DevOps and the enterprise are at best strange bedfellows. The movement has its roots in t...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.