Most Fund Categories See Red in June, Morningstar Canada Data Show
Jul 03, 2015, 07:00 ET
TORONTO, July 3, 2015 /CNW/ -- Morningstar Research Inc., a Canadian subsidiary of Chicago-based independent investment research provider Morningstar, Inc. (NASDAQ:MORN), today released preliminary performance data for June and the second quarter of 2015 about its 42 Morningstar Canada Fund Indices, which measure the aggregate returns of funds in various standard categories. All but four of the 42 Fund Indices decreased during the month, with a majority of indices posting losses between 1% and 3%. For the second quarter, 11 Fund Indices had positive results.
Highlights from Morningstar's June 2015 preliminary performance report include:
- All fund indices that track equity or balanced categories were in the red for June, as were most fixed-income indices. The only positive performers were in the four least risky categories—Canadian Short Term Fixed Income and the three money market categories—which all increased by less than 0.1%.
- Funds in the Greater China Equity category were the best performers overall for the second quarter of 2015, consistent with the first quarter, despite steep losses in June. The Morningstar Greater China Equity Fund Index decreased by 4.6% in June, but its strong showing in April and May brought its quarterly return to a healthy 5.5%. The index remains the best-performing fund index in Canada by a wide margin for the year to date with a 22.1% increase. However, the fund index has significantly underperformed the Shanghai Stock Exchange Index, which is up 32.2% for the same period. The returns of funds in this category were hampered by their exposure to Hong Kong and Taiwan stocks, which had much more modest results.
- The fund indices that track the Natural Resources Equity, Energy Equity, and Precious Metals Equity categories were among the worst performers in June, with decreases of 4.1%, 4.6%, and 6.1%, respectively. For the second quarter of 2015, the Morningstar Precious Metals Equity Fund Index ranks near the top with a 1.3% increase owing to its strong results in April and May, while the Natural Resources Equity and Energy Equity fund indices are down 0.3% and 3.4%, respectively.
- The major diversified equity categories were all negative for both the month and the quarter, with results mostly in the middle of the pack. The U.S. Equity, Global Equity, Canadian Equity, and International Equity fund indices were down 1.6%, 2.0%, 2.5%, and 3.1% in June, respectively, while their quarterly results ranged between -0.9% and -1.8%.
- Unlike the first quarter, currency movements were modest and had a limited effect on the performance of foreign equity funds in the second quarter. The Canadian dollar appreciated by 1.7% against the U.S. dollar and by 2% to 3% against most Asian currencies, but depreciated by 2.1% against the euro and 4.0% against the UK pound. Currency movements were in the 8-10% range in the first quarter of the year.
To view the complete report about Morningstar's preliminary June 2015 performance data for Canadian funds, please visit http://cawidgets.morningstar.ca/ArticleTemplate/ArticleGL.aspx?culture=en-CA&id=705097.
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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Christian Charest, +1 416-484-7817 or [email protected]
SOURCE Morningstar Research Inc.
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