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By Ashley Redmond and Nick Dedes | 10-02-2012

September fund performance update

Mostly positive monthly returns across the board thanks to stimulative measures in U.S. and Europe.

Ashley Redmond: I'm here with Nick to discuss September’s fund performance. Nick, thanks so much for joining me. Investors should be happy with this month’s results – we had positive gains in many categories – even helping some categories achieve strong quarterly results.

Nick Dedes: Yeah, that’s right. I think a key driver behind some of the strong results were the bold measures taken by a number of central banks – including the U.S. Federal Reserve announcing expectations for rates to remain low, exceptionally low through 2015 – and also continued asset purchases. In addition to that we had the European Central Bank announcing an unlimited bond buying program for distressed government debt. So, I think these stimulative measures had a particularly big impact on some of the more volatile categories and asset classes; also those in some cases are more levered to perspective economic growth.

Redmond: And you also noted that the most volatile categories were the biggest contributors this month.

Dedes: Yes, precious metals was an example of that. Now, precious metals also were boosted by these stimulative measures – anytime you have such announcements it kind of conjures up ideas of inflationary pressures. So, that's a positive; precious metals like gold, which was up over I believe 10% for the quarter and silver up over 25% for the quarter.

Redmond: Great. So, should investors should be happy with these results, since we had such negative results in July and August?

Dedes: Yeah, I mean September was strong. It contributed to good quarterly results, but at the same time I think it is worth noting that the reason behind this stimulative measures put forth by central banks is that fundamentally there is a lot of concern about the global economy.

Redmond: Great. Thanks so much Nick.

Dedes: Pleasure.

Redmond: To check out fund performance, go to morningstar.ca.

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