Asian, European Equity Funds Outperform in May 2017, Morningstar Canada Data Show

TORONTO, June 2, 2017 /CNW/ -- Morningstar Research Inc., a Canadian subsidiary of Chicago-based independent investment research provider Morningstar, Inc. (NASDAQ: MORN), today released preliminary May 2017 performance data for its 44 Morningstar Canada Fund Indices, which measure the aggregate returns of funds in various standard categories. Twenty-six of the 44 fund indices increased during the month, including four indices that increased by more than 2%.

Highlights from Morningstar's May 2017 preliminary performance report include:

  • North American stock markets had muted performance during the month of May, and currency movements were minimal. As a result, funds that focus on overseas equity typically outperformed those that target Canadian or U.S. stocks.
  • The best performer among the 44 Morningstar Canada Fund Indices was the one that tracks funds in the Greater China Equity category, which increased 3.2%. Hong Kong's Hang Seng Index was up 4.2% for the month, but part of that gain was offset by a 1.4% depreciation of the Hong Kong dollar versus the Canadian dollar. Stocks in Taiwan also fared well with a 1.7% gain, but the Shanghai Composite Index lost 1.2% in May. 
  • Positive results in China also benefited the more broadly diversified Asian equity funds, as did a strong showing by South Korean stocks, which were up 6.4%. The Morningstar Asia Pacific ex-Japan Equity and Asia Pacific Equity fund indices increased by 1.6% and 1.2%, respectively.
  • The second-best-performing fund category in May was European Equity with a 2.9% increase. The UK's FTSE 100 Index was up 4.4% for the month, and while major markets in France and Germany saw little movement, the euro's 1.8% appreciation against the loonie also contributed to the strong performance of funds in this category.
  • In the United States, the S&P 500 Index had a total return of 1.4%, which was offset by the loonie's 1.2% appreciation against the U.S. dollar. As a result, funds in the U.S. Equity category produced an aggregate gain of 0.3%. The Morningstar U.S. Small/Mid Cap Equity Fund Index decreased 0.3% for the month.
  • In Canada, the S&P/TSX Composite Index produced a total return of -1.3%, as each of the country's three largest stock sectors had negative performance. The energy, materials, and financials sub-indexes lost 5.6%, 2.2%, and 2.0%, respectively. Funds in the Canadian Equity category marginally outperformed the benchmark with a 1.2% decrease. The Morningstar Canadian Focused Equity Fund Index performed slightly better with a 1.1% decrease, while funds in the Canadian Small/Mid Cap Equity decreased by 0.6%.
  • As was the case in April, the worst performers in May were fund indices that track sector-specific categories. Energy Equity, Natural Resources Equity, and Financial Services Equity decreased 4.6%, 3.3%, and 2.1%, respectively, while Precious Metals Equity was down 1.1%.
  • Fixed-income funds were mostly positive in May, with increases for seven of the eight categories ranging from 0.1% for the Morningstar Canadian Short Term Fixed Income Fund Index to 1.7% for the Morningstar Canadian Long Term Fixed Income Fund Index. The only category in the red was Preferred Share Fixed Income, whose fund index decreased 2.0%.

To view the complete report about Morningstar's preliminary May 2017 performance data for Canadian funds, please visit

Morningstar Canada's preliminary fund performance figures are based on change in funds' net asset values per share during the month, and do not necessarily include end-of-month income distributions. Final performance figures will be published on next week.

About Morningstar Research Inc. and Morningstar, Inc.
Morningstar Research Inc. is a Canadian subsidiary of Chicago-based Morningstar, Inc., a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than US$200 billion in assets under advisement and management as of March. 31, 2017. The company has operations in 27 countries.

©2017 Morningstar, Inc. All rights reserved.


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SOURCE Morningstar, Inc.

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