Canadian equity funds see positive results in Q2

first_img Facebook LinkedIn Twitter For the second quarter in a row this year, Canadian equity funds saw positive results with natural resources funds leading the way, according to preliminary performance numbers released by Toronto-based Morningstar Canada on Thursday. Eighteen of 21 Morningstar Canada Fund Indices were up during Q2 with 11 of those funds seeing an increase of 3% or more. The best performer of the quarter was the energy equity category of the Morningstar Canada Fund Index with an increase of 13.7%. Another strong performer was the Morningstar Natural Resources Equity Fund Index, which came in third overall. IE Staff “Fund returns in these two categories benefited from oil and gas stocks that rose with escalating oil prices, as the current conflict in Iraq sent oil prices higher in June in light of uncertainty surrounding the country’s oil supply,” said Vishal Mansukhani, Morningstar manager research analyst. “Iraq has become an important oil producer over the past few years, pumping more than 3 million barrels each day.” The second best performing fund category of the quarter was Precious Metals Equity, which saw an increase of 12.1%. Among the top 10 performers for Q2 were the five domestic equity fund indices. The purely domestic Canadian Small/Mid Cap Equity and Canadian Equity categories were up 6.2% and 5.8%, respectively, while the Canadian Focused Small/Mid Cap Equity and Canadian Focused Equity categories, which can allocate up to 49% of their holdings in foreign stocks, increased by 4.7% and 3.8%, respectively. The Morningstar Canadian Dividend & Income Equity Fund Index was up 5% for the quarter. For the most part, foreign equity funds also saw positive results. For example, the Morningstar Emerging Markets Equity Fund Index increased 3.2% for the quarter; Asia Pacific ex-Japan Equity was up 2.3%; and U.S. Equity increased by 1.5%. The weaker returns were mostly due to currency effects as the Canadian dollar appreciated against most major currencies during this time. The only indices to end up in the red for the quarter were Greater China Equity and U.S. Small/Mid Cap Equity, with decreases of 0.3% each, and European Equity, down 1.8%. European Equity was also the worst performer for the month of June with a 1.5% decrease. Share this article and your comments with peers on social medialast_img read more