TORONTO, Dec. 2, 2016 /CNW/ -- Morningstar Research Inc., a Canadian subsidiary of Chicago-based independent investment research provider Morningstar, Inc. (NASDAQ: MORN), today released preliminary November 2016 performance data for its 44 Morningstar Canada Fund Indices, which measure the aggregate returns of funds in various standard categories. Twenty of the 44 fund indices increased during the month, including all indices that track Canadian or U.S. equity categories.
Highlights from Morningstar's November 2016 preliminary performance report include:
- U.S. Equity and U.S. Small/Mid Cap Equity were the top-performing regionally based equity categories for the month, with their fund indices increasing 3.9% and 5.1%, respectively. The S&P 500 Index had fallen approximately 2% in the days leading up to the U.S. election on Nov. 8, 2016, but following the victory by Republican candidate Donald Trump, the U.S. stock index rebounded to reach record highs by the end of November, producing a total return of 3.7%.
- All five Canadian stock categories had positive results in November. The Morningstar Canadian Focused Equity Fund Index, whose constituent funds hold, on average, approximately 30% of their assets in U.S. stocks, had the best performance in that group with a 2.5% increase, followed by Canadian Dividend & Income Equity, up 2.4%. The Canadian Small/Mid Cap Equity and Canadian Focused Small/Mid Cap Equity both increased 2.3%, while the Morningstar Canadian Equity Fund Index was up 2.2%, matching the total return of the S&P/TSX Composite Index.
- The top-performers overall in November were two fund indices that track cyclical sector stocks: the Morningstar Financial Services Equity Fund Index, which increased 7.0%, and Energy Equity, which increased 6.9%. Both sectors got a boost following the U.S. election, as markets expect the new administration's policies to be more favourable to the energy sector and to usher in higher interest rates, which would benefit financial services firms.
- Overseas markets generally decreased in November while the Canadian dollar appreciated against several currencies including the euro, the Japanese yen, and the Chinese renminbi. This led to negative results for the fund indices that track several foreign stock categories including Greater China Equity (-0.9%), European Equity (-1.7%) and Asia Pacific Equity (-2.5%). The Morningstar Emerging Markets Equity Fund Index was the worst performer among foreign equity fund indices, down 5.6%.
- For the second consecutive month, the worst overall performer was the Morningstar Precious Metals Equity Fund Index, which decreased 16.6%. The price of gold futures dropped more than 8% during the month as new expectations for world markets were priced in following the U.S. election.
- With the prospects of rising yields, fixed-income funds posted negative results last month. The worst-performing fund indices in this area were Canadian Long Term Fixed Income and Canadian Inflation-Protected Fixed Income, down 4.3% and 2.0%, respectively. The Canadian Fixed Income and Global Fixed Income fund indices both decreased 1.9%, while Floating Rate Loans increased 0.3%—the only fixed-income fund index in the black.
To view the complete report about Morningstar's preliminary November 2016 performance data for Canadian funds, please visit http://tr.im/1YjQA.
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 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.
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Christian Charest, +1 416 484-7817 or [email protected]
SOURCE Morningstar Research Inc.