TORONTO, June 4, 2012 /CNW/ - All equity fund categories in Canada ended May with losses, according to preliminary performance numbers today released by Morningstar Canada. All 22 Morningstar Canada Fund Indices that track the aggregate performance of equity fund categories were in the red, and only eight of the total 42 indices constructed by Morningstar posted flat or positive results for the month.
With most balanced funds also in negative territory, the best outcomes showed up in fixed-income categories. "Investors continue to ignore the prospect of rising rates and flock to the safety they perceive in fixed income," Morningstar Fund Analyst Nick Dedes said. "That popularity is driving yields lower and prices higher."
The Morningstar Canadian Long Term Fixed Income and Morningstar Canadian Inflation-Protected Fund Indices led the way with increases of 4.1% and 3.9%, respectively, while the Canadian Fixed Income Index ranked third with a return of 1.7%. Also in the black were Global Fixed Income funds, which rose 0.8%, while the Canadian Short Term Fixed Income Index rounded out the top-five list with a return of 0.5%.
Slight losses of 0.2% and 0.5% by the Real Estate Equity and Health Care Equity Indices, respectively, were enough to make those two the best performers among equity fund categories.Turbulence was pervasive across equity markets and the high volatility of certain other industry sectors was evident. Natural Resources Equity funds fell 10.2% for the steepest and only double-digit loss among all 42 Morningstar fund indices. That decline reflected a plunge of 14% in the price of Brent crude oil as concerns heightened about weakening economic growth and the slowing demand for fuel. The Morningstar Precious Metals Equity Index performed only slightly better, declining 8.6% as the second-worst performer in the month. The spot price of gold dropped a steep 6% in May.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV