Broad Equity Funds Tread Water in October 2016, Morningstar Canada Data Show

TORONTO, Nov. 2, 2016 /CNW/ -- Morningstar Research Inc., a Canadian subsidiary of Chicago-based independent investment research provider Morningstar, Inc. (NASDAQ: MORN), today released preliminary October 2016 performance data for its 44 Morningstar Canada Fund Indices, which measure the aggregate returns of funds in various standard categories. Thirteen of the 44 Fund Indices increased during the month, but most fund categories saw minimal movement in either direction.

Highlights from Morningstar's October 2016 preliminary performance report include:

  • Thirty-two Morningstar Canada Fund Indices had performance ranging between -1% and 1%, including most broadly diversified equity categories and all 12 indices that track balanced or target-date categories.
  • The top- and bottom-performing fund indices were both sector-specific category trackers. The Morningstar Financial Services Equity Fund Index increased 3.4%, while the Morningstar Precious Metals Equity Fund Index decreased 5.4%.
  • Among broadly diversified equity fund indices, the best performer was the one that tracks the Emerging Markets Equity category, which increased 1.9%, followed by Asia Pacific Equity, up 0.8%. Among the worst performers was the Morningstar European Equity Fund Index, down 2.3%. The Global Equity and Global Small/Mid Cap Equity Fund Indices both decreased 0.4%, while International Equity and Greater China Equity were both down 0.6%.
  • The Morningstar Canadian Equity Fund Index increased 0.6% in October, in line with the S&P/TSX Composite Index. Two other domestic equity fund indices had positive results for the month: Canadian Dividend & Income Equity and Canadian Focused Equity, up 0.5% and 0.03%, respectively. The Canadian Focused Small/Mid Cap Equity and Canadian Small/Mid Cap Equity Fund Indices were down 0.9% and 1.4%, respectively.
  • Funds in the U.S. Equity category collectively posted a 0.5% decrease, outperforming the S&P 500 Index which decreased 1.8% in October. Currency movements between the Canadian and U.S. dollars were a factor, as the loonie depreciated by more than 2% versus its U.S. counterpart during the month. Meanwhile, the Morningstar U.S. Small/Mid Cap Equity Fund Index decreased 1.6%.
  • Fixed-income funds had mixed results in October. The best-performing fixed-income categories were Preferred Share Fixed Income and Floating Rate Loans, up 2.5% and 0.7%, respectively, while the worst performer was Canadian Long Term Fixed Income with a 2.4% decrease. The fund index that tracks the largest category, Canadian Fixed Income, decreased 0.8% during the month.

To view the complete report about Morningstar's preliminary October 2016 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 on nearly 540,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on approximately 18.5 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than US$200 billion in assets under advisement or management as of Sept. 30, 2016. The company has operations in 27 countries.

©2016 Morningstar, Inc. All rights reserved.


Media Contact:
Christian Charest, +1 416 484-7817 or


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SOURCE Morningstar Research Inc.

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