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Mutual Fund Investors Face Disappointing First Quarter of 1994

Strategic Insights

— 1 min read

The first quarter of 1994 was marked by poor performance for most mutual fund groups, with sector funds being the only standout with a short-term growth of 4.73 per cent. Canadian bond funds, balanced funds, and mortgage funds were the hardest hit, with average losses of 5.06 per cent, 1.73 per cent, and 1.57 per cent, respectively. However, some international funds and Canadian equity funds managed to post gains, with sector funds leading the pack with an 11.07-per-cent average return over the six-month period.

Key Takeaways:

  • Sector funds were the only fund group to post a positive return in the first quarter, with an average gain of 4.73 per cent.
  • Canadian bond funds suffered the largest losses, with an average decline of 5.06 per cent.
  • Balanced funds and mortgage funds posted average losses of 1.73 per cent and 1.57 per cent, respectively.
  • International bond funds managed to post a small gain of 0.45 per cent in the six-month period.
  • Canadian equity funds, on the other hand, had a relatively high 5.81-per-cent average gain over the six-month period.
  • Top-performing funds in the first quarter included Fidelity Japanese Growth Fund, AGF Japan Fund Ltd., and Royal Trust Japanese Stock Fund.
  • Multiple Opportunities Fund led with a 35.79-per-cent gain in Canadian equity funds, followed by ABC Fundamental Value Fund and Sceptre Equity Fund.

Statistics:

  • Sector funds posted an average gain of 4.73 per cent in the first quarter.
  • Canadian bond funds lost an average of 5.06 per cent in the first quarter.
  • Balanced funds and mortgage funds lost an average of 1.73 per cent and 1.57 per cent, respectively.
  • International bond funds gained 0.45 per cent in the six-month period.
  • Canadian equity funds had a 7.58-per-cent average gain in the six-month period.
  • The Toronto Stock Exchange 300 index was down 2 per cent in March.
  • Multiple Opportunities Fund had a 35.79-per-cent gain in Canadian equity funds.
  • Fidelity Japanese Growth Fund posted a 26.42-per-cent gain in the first quarter.
  • AGF Japan Fund Ltd. was up 21.44 per cent.

Sources:

  • The Globe and Mail
  • Report on Business survey

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