This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Resource, Financials Push Domestic Equity Funds Up In August, Morningstar Canada Data Show

Stocks in this article: MORN

TORONTO, Sept. 5, 2012 /CNW/ - The Canadian economy's three largest sectors -- financials, energy and materials -- all posted solid returns in August, leading to gains for the investment funds that target those sectors as well as for broader domestic equity funds. European and U.S. equity funds also did well for the month, but those that focus on Asian equity markets had negative results, according to preliminary performance numbers released today by Morningstar Canada.

By far the best performer among the 42 Morningstar Canada Fund Indices was the one that follows the Precious Metals Equity category, which saw a 10.1% increase in August. "Gold and silver turned sharply upward in the last third of the month, nearly hitting US$1,700 and US$31 per ounce, respectively. Speculation on additional quantitative easing in the United States led to demand for the metals, as the prospect of a weakening dollar meant expectations of rising prices," said Morningstar Fund Analyst Adam Fisch.

In second place, the Morningstar Natural Resources Equity Fund Index, which was also the second-best performer in July, had another good month in August with a 3.1% increase, while the fund index that tracks the Financial Services Equity category finished the month in fifth place with a 2.2% increase.

The success of these three industry sectors also meant good news for funds in the diversified domestic equity categories; the Morningstar Canadian Equity Fund Index, whose constituent funds allocate on average nearly three-quarters of their portfolios to these sectors, increased by 2.4%. Meanwhile, the Canadian Small/Mid Cap Equity, Canadian Focused Small/Mid Cap Equity, and Canadian Dividend & Income Equity fund indices saw increases of 2.1%, 1.8%, and 1%, respectively.

South of the border, the S&P 500 Index approached its highest level in four years, ending the month with a 2.3% gain when expressed in U.S. dollars. For Canadian investors, this translated into a 1.5% increase for the Morningstar U.S. Equity Fund Index after accounting for unfavourable currency effects. Funds in the U.S. Small/Mid Cap Equity category did even better with an average increase of 2.4% for the month.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,069.52 +95.21 0.56%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,532.9260 -16.30 -0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs