Equity Fund Return Solid


    After posting healthy gains in January, equity mutual funds in Canada had another solid month in February, as global markets benefited from a rebound in the price of oil, positive economic data from the United States, and accommodative policies from central banks. As a result, 40 of the 42 Morningstar Canada Fund Indices increased for the month. “After a six-month slide, oil prices recovered somewhat in late January, which continued during the first week of February, despite the news of record U.S. inventories. The rest of the month saw heightened oil price volatility without significant gains, leading economists and market participants to question whether we’ve finally reached the bottom,” says Achilleas Taxildaris, of Morningstar Canada. Small-capitalization funds, which typically have a higher exposure to the oil and gas sector, were among the best performers. Along with the energy sector, financial services stocks had a stellar performance last month and, as a result, the other domestic equity fund indices also ranked in the top 10.