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

Foreign Equity Funds Posted Solid Performance In 2012, Morningstar Canada Data Show

TORONTO, Jan. 3, 2013 /CNW/ - Equity funds in Canada ended 2012 with mostly positive returns, with strong performances from those that target European and Asian markets in particular. Canadian equity funds were also in positive territory for the year but lagged their foreign counterparts, according to preliminary performance numbers released today by Morningstar Canada.

The Morningstar Canada Fund Indices that measure the aggregate returns of funds in the European Equity, Asia ex-Japan Equity, Greater China Equity, and Asia Pacific Equity categories were among the best performers with increases of 18.3%, 16%, 15.5%, and 15%, respectively, in 2012. Also posting double-digit increases for the year were the International Equity, Emerging Markets Equity, Global Equity, and U.S. Equity fund indices.

The five domestic equity fund indices posted increases ranging from 5% for the Morningstar Canadian Small/Mid Cap Equity Fund Index to 8.1% for the Morningstar Canadian Dividend and Income Equity Fund Index. While these numbers were respectable on an absolute basis, they were among the weakest relative to other sector-diversified fund indices in 2012.

The Canadian equity market exhibited a stark contrast between a red-hot financial services sector and poorly performing energy and materials sectors; together these three industry groups account for nearly 80% of the S&P/TSX Composite Index. The financials sector in Canada increased by 17.1% in 2012, while energy and materials were down 4.8% and 5.7%, respectively, as measured by the S&P/TSX sub-indices.

Sector-specific fund indices were prominent among both the best and worst performers for the year. First overall was the Morningstar Health Care Equity Fund Index with a 20.6% increase, while Real Estate Equity and Financial Services Equity also fared well with increases of 17% and 15.2%, respectively.

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
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs