Nearly two thirds of Morningstar’s fund indices increased during the third quarter
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The energy sector was among Canada’s best-performing stock sectors last month, according to preliminary September and third-quarter performance data on fund indices from Morningstar Canada.
The Morningstar Energy Equity Fund Index, which measures the aggregate returns of funds in the energy sector, achieved the second-best result for the quarter with a 6.8% increase; that was partly driven by a 10.3% rise in September, which surpassed all other sector-specific fund categories.
The other star sector categories for the quarter were the Natural Resources Equity and Financial Services Equity fund indices, which posted increases of 4.1% and 3.9%, respectively; zeroing in on September, they were up by 3.1% and 4.9%, respectively.
The twin tailwinds of energy and financial services propelled the Canadian Equity Fund Index to 3.1% growth in September, and 3% for the quarter. The Canadian Dividend & Income Equity and Canadian Focused Equity Fund Indices also got a lift, with quarterly increases of 2.3% and 1.7%, respectively.
Looking at funds focused outside Canada, the Greater China Equity Category maintained its dominance in the Canadian marketplace. It was the best-performing fund category for the third quarter, increasing by 8.1% — an impressive record despite its disappointing 0.5% performance last month. The Morningstar US Equity Fund Index matched the S&P 500 Index’s total return of 2.1% in September; however, it underperformed for the quarter with 1.1% versus the benchmark’s 4.5% third-quarter return, largely due to the strengthening of the loonie against the greenback in July.
Only four equity fund indices ended the quarter in the red: the Morningstar Global Infrastructure Equity Fund Index (-0.5%), Real Estate Equity (-0.9%), US Small/Mid Cap Equity (-0.3%), and Global Small/Mid Cap Equity (-1.1%).
The biggest losers, however, were the Canadian Fixed Income, Canadian Inflation-Protected Fixed Income, and Canadian Long Term Fixed Income categories, falling by 1.8%, 3.2%, and 4.3%, respectively in the third quarter. But the Preferred Share Fixed Income index posted decent returns, going up 2%.
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The Morningstar Energy Equity Fund Index, which measures the aggregate returns of funds in the energy sector, achieved the second-best result for the quarter with a 6.8% increase; that was partly driven by a 10.3% rise in September, which surpassed all other sector-specific fund categories.
The other star sector categories for the quarter were the Natural Resources Equity and Financial Services Equity fund indices, which posted increases of 4.1% and 3.9%, respectively; zeroing in on September, they were up by 3.1% and 4.9%, respectively.
The twin tailwinds of energy and financial services propelled the Canadian Equity Fund Index to 3.1% growth in September, and 3% for the quarter. The Canadian Dividend & Income Equity and Canadian Focused Equity Fund Indices also got a lift, with quarterly increases of 2.3% and 1.7%, respectively.
Looking at funds focused outside Canada, the Greater China Equity Category maintained its dominance in the Canadian marketplace. It was the best-performing fund category for the third quarter, increasing by 8.1% — an impressive record despite its disappointing 0.5% performance last month. The Morningstar US Equity Fund Index matched the S&P 500 Index’s total return of 2.1% in September; however, it underperformed for the quarter with 1.1% versus the benchmark’s 4.5% third-quarter return, largely due to the strengthening of the loonie against the greenback in July.
Only four equity fund indices ended the quarter in the red: the Morningstar Global Infrastructure Equity Fund Index (-0.5%), Real Estate Equity (-0.9%), US Small/Mid Cap Equity (-0.3%), and Global Small/Mid Cap Equity (-1.1%).
The biggest losers, however, were the Canadian Fixed Income, Canadian Inflation-Protected Fixed Income, and Canadian Long Term Fixed Income categories, falling by 1.8%, 3.2%, and 4.3%, respectively in the third quarter. But the Preferred Share Fixed Income index posted decent returns, going up 2%.
For more of Wealth Professional's latest industry news, click here.
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Executives worried about Canadian business landscape
Why oil sands producers need oil to pass $50 per barrel
