Third Quarter Positive For Funds

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    The third quarter was a positive one for mutual funds in Canada with all but one of the 22 Morningstar Canada Fund Indices that measure the performance of equity fund categories posting increases. Foreign equity funds were among the top performers with the Greater China Equity Fund Index up 2.6 per cent in September and nine per cent for the best performance among regional indices for the quarter. Funds that invest in Japanese equities increased 4.7 per cent in the quarter. Ranking second for quarterly performance among regional fund indices was the European Equity Fund Index which increased 8.5 per cent for the three-month period. For funds that invest in precious metals, the rally in gold that saw a double-digit increase by the Precious Metals Equity Fund Index in August came to an abrupt end. Despite a three-month increase of 9.3 per cent and a second-place ranking for the quarter, sliding gold prices led the index to declines of 10.9 per cent in September and 41 per cent for the year-to-date, which were the worst performances by any fund index for both periods.