This Day On The Street
Continue to site
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

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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs