Foreign Stocks Post Healthy Gains


    Mutual funds in Canada that invest in foreign stocks posted healthy gains in January, in large part because of the Canadian dollar’s sharp drop against most major world currencies, says Morningstar Canada data. The falling loonie was also indirectly responsible for the strong results of fixed income funds during the month. Thirty-seven of its 42 Canada fund indices increased for the month of January. Among the best performers were the indices that track fund returns in the Asia Pacific ex-Japan equity, Greater China equity, and Asia Pacific equity categories, which increased by 12 per cent, 10.6 per cent, and 10.3 per cent, respectively. Funds in the U.S. equity category collectively increased by 3.8 per cent. And a Bank of Canada interest rate cut resulted in strong positive results in fixed income categories in January. The Canadian long-term fixed income and Canadian inflation-protected fixed income fund indices increased by 8.3 per cent and 7.3 per cent, respectively.