Canadian, Chinese Equity Funds Perform Well in April as Natural Resources Bounce Back, Morningstar Canada Data Show

TORONTO, May 4, 2015 /CNW/ -- Morningstar Research Inc., a Canadian subsidiary of Chicago-based independent investment research provider Morningstar, Inc., today released preliminary performance data for April 2015 about its 42 Morningstar Canada Fund Indices, which measure the aggregate returns of funds in various standard categories. Seventeen of the 42 Fund Indices increased during the month, including seven that increased by 2% or more, while three of the Fund Indices that lost ground decreased by more than 2%.

Highlights from Morningstar's April 2015 preliminary performance report include:

• Funds in the Greater China Equity category were the best performers, as the fund index that tracks this category increased by 9.5% in April. Both the Shanghai and Hong Kong stock markets posted double-digit gains for the month, but a strengthening Canadian dollar versus major Asian currencies mitigated the effect for Canadian investors. The Morningstar Asia Pacific Ex-Japan Equity Fund Index was also a top performer with a 2.9% increase.
• Funds that concentrate on the energy sector had their best monthly return of the past year with a 7.4% increase—the second-best performance among all Morningstar Canada Fund Indices. The index's monthly results have been negative in eight of the past 12 months, and it was the overall worst performer for the 2014 calendar year. Rebounding energy stocks, combined with strong gains in the basic materials sector, resulted in the Morningstar Natural Resources Equity Fund Index posting the third-best result with a 6.8% increase.
• Funds in the Canadian Equity category posted an aggregate increase of 1.7% in April, underperforming the S&P/TSX Composite Index's 2.4% gain for the month. Among other domestic equity fund categories, Canadian Small/Mid Cap Equity and Canadian Dividend & Income Equity increased 2.6% and 1.5%, respectively.
• The worst-performing fund indices were the ones that track the U.S. Equity and U.S. Small/Mid Cap Equity categories, with decreases of 3.2% and 5.1%, respectively. Stock markets in the United States were flat to slightly positive, but currency effects negatively impacted these funds, as the U.S. dollar depreciated by 4.4% during the month versus its Canadian counterpart.
• All seven Fund Indices that track fixed-income categories had negative results in April. The best performer among the group was the Morningstar High Yield Fixed Income Fund Index with a 0.1% decrease, while the worst performer was the Morningstar Canadian Long Term Fixed Income Fund Index with a 2.7% decrease.

To view the complete report about Morningstar's preliminary April 2015 performance data for Canadian funds, please visit http://cawidgets.morningstar.ca/ArticleTemplate/ArticleGL.aspx?culture=en-CA&id=695998.

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 www.morningstar.ca 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 approximately 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 15 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 and had approximately US$179 billion in assets under advisement or management as of March 31, 2015. The company has operations in 27 countries.

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SOURCE Morningstar Research Inc.