TORONTO, Jan. 23 /CNW/ - Morningstar Research Inc., a subsidiary of
Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment
research, today reported a summary of institutional pooled fund performance
for the fourth quarter of 2008. Approximately 81% of the pooled funds in the
Morningstar Canada database had negative returns during the quarter, including
all but six of the 572 equity funds.
Seventeen of the 23 equity-based pooled fund categories posted median
losses greater than 10%. The Canadian Equity category, which contains 138
pooled funds, posted a median loss of 22.1%, while the median return among the
Canadian Focused Equity category's 36 funds was a 17.6% loss. Foreign equity
funds fared somewhat better than their domestic counterparts; the Emerging
Markets Equity, European Equity, U.S. Equity and Global Equity categories had
median losses of 17.9%, 11.6%, 10.4% and 9.3%, respectively. The Japanese
Equity category had the best median return among sector-diversified equity
categories with a 4.6% loss.
The Natural Resources Equity pooled fund category had the worst median
return among all categories with a 26.3% loss for the quarter. Second worst
was the Canadian Small/Mid Cap Equity category with a 22.2% loss. The only
category to post a positive median return, and third-best overall, was
Precious Metals Equity, which contains only one fund; it gained 4.3%.
Overall, six of the 41 pooled fund categories had positive median returns
in the fourth quarter of 2008. The best-performing group was Canadian Long
Term Fixed Income with a median return of 4.6%, followed by Global Fixed
Income, up 4.4%. Canadian Fixed Income was fourth with a median return of
3.5%, while Canadian Short Term Fixed Income was up 2.5%. Two of the six
fixed-income categories produced negative median returns: Canadian Inflation
Protected Fixed Income and High Yield Fixed Income had median losses of 0.5%
and 3.1%, respectively.
Among individual funds, many of the top performers for the quarter
belonged to the Global Fixed Income category. The best return was the 29.6%
gain posted by SEI Enhanced Global Bond, followed by United Global fixed
Income Pool (28.4%) and TD Emerald Global Government Bond Index (26.2%). Of
the 1,032 pooled funds tracked by Morningstar Canada, 199 posted positive
returns for the quarter, including 41 money-market funds and 128 fixed-income
funds. Among equity funds, the best performer by far was Burgundy Asian with a
21.5% gain, followed by Goodman Precious Metals Equity, up 4.3%. At the
bottom, RBC Private O'Shaughnessy U.S. Growth Equity Pooled lost 39.9%.
Morningstar Canada releases performance figures for pooled funds on the
13th business day of each month through its Principia for Pooled Funds
software. Principia is a pension fund research and presentation tool that
delivers comprehensive analysis for more than 1,000 Canadian institutional
investment funds and 216 market indices, benchmarks, averages, and medians.
Its extensive coverage of the Canadian institutional fund market is
complemented by Morningstar Canada's unique holdings database.
Morningstar Ratings Update As of Dec. 31, 2008, Burgundy Asset Management
Ltd. is the pooled fund sponsor with the most mandates earning the highest
Morningstar Rating of 5 stars. Burgundy has seven funds bearing Morningstar's
top rating out of a total of 15 rated funds. In second place with five
top-rated pooled funds is Mawer Investment Management Ltd., while Industrial
Alliance Insurance and Financial Services Inc. ranks third with four top-rated
The Morningstar Rating is an objective, quantitative measure of a fund's
historical risk-adjusted performance relative to other pooled funds in its
category. Only funds with at least a three-year track record are considered.
Funds are rated on the basis of three-, five-, and 10-year track records, as
available, which are then combined for an overall rating. A fund can only be
rated if there are a sufficient number of funds in its peer group to allow
comparison for at least three years.
About Morningstar Research Inc.
Morningstar Research Inc. is the Canadian subsidiary of Chicago-based
Morningstar, Inc., a leading provider of independent investment research. The
company offers an extensive line of Internet, software, and print-based
products and services for individuals, financial advisors, and institutions.
Morningstar provides data on more than 290,000 investment offerings, including
stocks, mutual funds, and similar vehicles. The company has operations in 19
countries and minority ownership positions in companies based in three other
For further information:
For further information: Scott Mackenzie, President and CEO, Morningstar
Canada, (416) 484-7800; Christian Charest, Associate Editor, Morningstar
Canada, (416) 484-7817