Canada's funds among worst performers in Sept., report says
03.10.2008 18:00
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- Source: cbc.ca
Even as Canadian financial institutions have been relatively sheltered from the credit meltdown in the United States, this country's mutual funds performed more poorly than their American counterparts, according to Morningstar Canada Thursday. Morningstar, which follows the mutual fund industry, said 41 of the 43 indices which it tracks lost money in September, and Canadian funds on those indices performed more poorly than U.S. stocks. "Our markets are a lot more focused on the two sectors natural resources and financials," said Al Kellett, a Morningstar analyst. Dropping commodity prices and the spectre of slow global economic growth hammered Canadian mutual funds more than American equities, he said. For example, Morningstar's index of Canadian funds specializing in small and mid-sized capitalization issues lost 18.2 per cent of its value in September. The equivalent American mutual funds index dropped 11.6 per cent of its value in the same period. September swoonEquity prices in Canada and the United States took a haircut in September as Lehman Brothers went bankrupt and the two biggest U.S. mortgage companies were taken over along with insurance giant AIG. Overall, the biggest losers in Morningstar's report for that month were natural resource funds, down a hefty 21.4 per cent in September. | Sept. performance | 1 mo. | 3 mo. | | Natural resource funds | -21.4% | -34.3% | | Cdn. small/mid-cap funds | -19.8 | -27.4 | | U.S. small/mid-cap funds | -11.6 | - 8.1 | | Source: Morningstar Canada |
Investing outside of Canada and the United States, however, did not prove to be much of a haven as Wall Street melted down. Morningstar's index of China-based mutual funds slipped 19.8 per cent in value in the month. Asian funds not including Japanese investment vehicles dropped 13.3 per cent while Japan's funds turned in relatively better performance, losing only 9.8 per cent of their value in September. Only U.S. money market mutual funds, at 0.0, and Canadian money market funds, posting a gain of 0.1 per cent, managed to avoid losing value in September. Consumer HeadlinesStock markets giving up gains after bailout passedThe Toronto and New York markets gave up some earlier gains Friday as Congress passed the revised $700-billion US package to address the U.S. mortgage finance crisis. Investigation needed into E. coli warning delay: hospital presidentThe president of Windsor Regional Hospital in southwestern Ontario is demanding an investigation into delays in warning his hospital about possible E. coli contamination in lettuce served to patients.Quebec cheese retailers get $8.4M in provincial aidThe Quebec government will spend $8.4 million to revive its cheese industry, which has been hit hard by the recent listeriosis crisis.Nokia unveils music-playing, touch-screen cellphoneNokia has launched its first touch-screen smartphone that plays music, adding another potential competitor to Apple Inc.'s iPhone. But in North America it's Research In Motion's anticipated touch-screen BlackBerry that's expected take on the popular Apple device.People with fish allergies warned not to use type of salad dressingThe Canadian Food Inspection Agency is warning people with fish allergies not to use Western Family Light Creamy Caesar dressing. Consumer Life FeaturesYOUR VIEWTake back your phoneTips to avoid telemarketersECONOMYJobsSaskatchewan makes pitch for skilled workersSAFETYRecalls and Advisories- Salad dressing
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