TORONTO, July 23 /CNW/ - Morningstar Canada, a subsidiary of Morningstar,
Inc. (NASDAQ: MORN), a leading provider of independent investment research,
today reported a summary of institutional pooled fund performance for the
second quarter of 2008. Approximately half of the pooled funds in the
Morningstar Canada database had positive returns during the quarter, with the
best returns generally coming from domestic equity funds.
The best-performing pooled fund category for the quarter, as measured by
the median return of its constituent funds, was Natural Resources Equity with
a gain of 11.2%. The second-highest median return was the 9.3% gain posted by
the Canadian Income Trust Equity category. Two other domestic equity fund
groups come next: Canadian Equity (8.8%) and Canadian Focused Equity (4.6%).
The Precious Metals Equity category rounds out the top five with a median
return of 4.5%.
Overall, 24 of the 41 pooled fund categories had positive median returns
in the second quarter of 2008. The two worst performing groups were Financial
Services Equity and Real Estate Equity with median losses of 9.7% and 9.5%,
respectively. Pooled funds that target foreign equities also had a tough time
during the quarter. Notably, the European Equity, Global Equity, U.S. Equity
and International Equity categories had median losses of 3.9%, 3.6%, 3.4% and
3.2%, respectively. The U.S. Small/Mid Cap Equity category had the best median
return among foreign equity categories with a 2.9% gain.
Among fixed-income pooled funds, domestic offerings also outperformed
their global counterparts. Within the Canadian Fixed Income category, the
median return was a 0.6% loss, with three-quarters of its funds losing between
0.4% and 0.8%. By contrast, the Global Fixed Income category had a median loss
of 1.3%, and more than a third of its constituent funds lost more than 2% for
Among individual funds, the best performer for the quarter was Fidelity
Global Natural Resources, which returned 30%. Sixty-one pooled funds posted
double-digit returns for the quarter, 37 of which belong to the Canadian
Equity category. Of that group, the best performer was Montrusco Bolton
Quantitative Canadian Equity with a 19.5% return. At the bottom, GE Asset
Management India Equity posted the quarter's worst overall return with a loss
Morningstar Canada releases performance figures for pooled funds on the
13th business day of each month through its Principia for Pooled Funds
software. Principia is a pension fund research and presentation tool that
delivers comprehensive analysis for more than 1,000 Canadian institutional
investment funds and 220 market indices, benchmarks, averages, and medians.
Its extensive coverage of the Canadian institutional fund market is
complemented by Morningstar Canada's unique holdings database.
Morningstar Ratings Update
As of June 30, 2008, Goodman & Co., Investment Counsel Ltd., a division
of Dundee Wealth Management, is the pooled fund sponsor with the most mandates
earning the highest Morningstar Rating of 5 stars. Goodman has nine funds
bearing Morningstar's top rating out of a total of 21 rated funds. In second
place with five top-rated pooled funds is RBC Asset Management Inc., while
Desjardins Financial Security and HSBC Investments Funds Ltd. share third
place with four each.
The Morningstar Rating is an objective, quantitative measure of a fund's
historical risk-adjusted performance relative to other pooled funds in its
category. Only funds with at least a three-year track record are considered.
Funds are rated on the basis of three-, five- and 10-year track records, as
available, which are then combined for an overall rating. A fund can only be
rated if there are a sufficient number of funds in its peer group to allow
comparison for at least three years.
About Morningstar Canada and Morningstar, Inc.
Morningstar Canada is the Canadian subsidiary of Chicago-based
Morningstar, Inc., a leading provider of independent investment research. The
company offers an extensive line of Internet, software, and print-based
products and services for individuals, financial advisors, and institutions.
Morningstar provides data on more than 270,000 investment offerings, including
stocks, mutual funds, and similar vehicles. The company has operations in 18
countries and minority ownership positions in companies based in three other
For further information:
For further information: Scott Mackenzie, President and CEO, Morningstar
Canada, (416) 484-7800; Christian Charest, Associate Editor, Morningstar
Canada, (416) 484-7817