This Day On The Street
Continue to site
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

September Bolsters Third-Quarter Performance Of Most Funds, Morningstar Data Show

TORONTO, Oct. 2, 2012 /CNW/ - September saw increases across the board for the Morningstar Canada Fund Indices, with positive monthly returns helping some categories achieve strong quarterly performance and leaving only one fund index in negative territory in the third quarter.

"Bold efforts by central banks to bolster global growth have instilled some confidence in equity investors, despite persistent fundamental economic concerns," Morningstar Fund Analyst Nick Dedes said.

The biggest increases in the month among the 42 benchmarks came from some of the most volatile sectors, including the best one-month performance: a return of 11.7% logged by the Precious Metals Equity category. Precious metals funds were also the leaders for the third quarter, as the index rose 19.5% in the past three months, according to preliminary performance numbers today released by Morningstar Canada.

"Longer-term inflationary pressure of major stimulus efforts was a boon for precious metals, which also benefited from a drop in the U.S. dollar," Dedes said, pointing out that gold climbed more than 10% and silver jumped more than 25% in the third quarter.

Natural Resources Equity funds ranked second in the quarter, with the index increasing 11.5%. A one-month surge of 5.6% contributed to the category's quarterly performance.

The performance of these sectors and stocks in general have been aided by the U.S. Federal Reserve's announcement of further asset purchases and its expectation for exceptionally low short-term interest rates through at least 2015, along with the European Central Bank's announcement of an unlimited bond-buying program for distressed government bonds. "These stimulative measures have had a big impact on categories that traditionally exhibit high volatility and, in many cases, are highly levered to prospective economic growth," Dedes said.

On the domestic front, strength in the resources and financial services sectors helped carry the S&P/TSX Composite Index to increases of 3.4% in September and 7% over the last three months. Funds that invest in Canadian stocks posted solid gains in September, with the Morningstar Canadian Small/Mid Cap Equity Index increasing by 7.3% to rank third for the quarter. By comparison, the Canadian Focused Small/Mid Cap and Canadian Equity indices each rose 3% in September alone, making for increases of 6.1% and 5.9%, respectively, in the third quarter.

1 of 3

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,698.28 -31.83 -0.18%
S&P 500 2,071.64 -5.14 -0.25%
NASDAQ 4,995.0480 -14.1660 -0.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs