Slump Deepens for Morningstar Resources and Precious Metals Funds

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Fund Analyst Jordan Benincasa wrote, "Net asset values of precious metals equity funds moved in the same direction as the price of gold, which was down about 8% during the month. Sharp swings in returns are the norm for precious metals funds, which have historically been among the most volatile of any funds."

Morningstar Canada said Wednesday that August was "another money-losing month" for investment funds "whose primary holdings are commodities and precious metals producers." The worst performer among the 42 Morningstar Canada Fund Indices was the Morningstar Precious Metals Equity Index, which declined 11.3% last month, making it the second consecutive month of double-digit losses.

Fund Analyst Jordan Benincasa wrote, "Net asset values of precious metals equity funds moved in the same direction as the price of gold, which was down about 8% during the month. Sharp swings in returns are the norm for precious metals funds, which have historically been among the most volatile of any funds."

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