TORONTO, Dec. 4, 2017 /CNW/ -- Morningstar Research Inc., a Canadian subsidiary of Chicago-based independent investment research provider Morningstar, Inc. (NASDAQ: MORN), today released preliminary November 2017 performance data for its 44 Morningstar Canada Fund Indices, which measure the aggregate returns of funds in various standard categories. Thirty-nine of the 44 fund indices increased during the month, with nearly all of them increasing between 0.0% and 2.0%, while the five losing indices decreased by 0.1% to 0.7%.
Highlights from Morningstar's November 2017 preliminary performance report include:
The best-performing fund index for the month was the one that tracks the U.S. Equity category, which increased 2.9%, underperforming the S&P 500 Index which had a total return of 3.1% for the month. In second place, the U.S. Small/Mid Cap Equity Fund Index increased 2.5% in November but also underperformed this fund category's market benchmark, the Russell 2000 Index, which had a total return of 2.9%. Currency effects between the Canadian and U.S. dollars were negligible over the period.
Among sector-diversified fund categories, the ones that have a large dose of U.S. stocks had an edge in November. Finishing in the top 10 was the fund index that tracks the Global Small/Mid Cap Equity category with a 2.0% increase, as well as the North American Equity and Global Equity fund indices, both up 1.7%. Funds in all three of these categories typically hold approximately half their assets in U.S. equities.
Three sector-equity fund indices were also among the top 10: Real Estate Equity ranked third overall with a 2.3% increase, while Financial Services Equity and Global Infrastructure Equity were both up 1.3% for the month.
Domestic equity funds had weak but mostly positive results in November, reflecting the 0.5% total return of the S&P/TSX Composite Index. The Morningstar Canadian Equity Fund Index increased 0.3%, while the Canadian Focused Small/Mid Cap Equity, Canadian Focused Equity, and Canadian Dividend & Income Equity fund indices were up 0.9%, 0.7%, and 0.6%, respectively. The only domestic equity fund index to lose ground in November was Canadian Small/Mid Cap Equity, down 0.3%.
The worst-performing fund indices were the ones that track the Precious Metals Equity and the Energy Equity fund categories, decreasing 0.5% and 0.7%, respectively. The other two fund indices in the red for the month were High Yield Fixed Income and European Equity, down 0.1% and 0.2%, respectively.
To view the complete report about Morningstar's preliminary November 2017 performance data for Canadian funds, please visit https://goo.gl/sg6Kkt.
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, and institutional investors in the private capital markets. 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$220 billion in assets under advisement and management as of Sept. 30, 2017. The company has operations in 27 countries.