The average Canadian equity fund rose 3.4% in March thanks to “old economy” stocks such as banks, oil producers and retailers, which climbed to record highs. The category gained 3.2% for the first quarter of 2002 and rose an average 6.4% in the full year ended March 31.

March was even kinder to global equity funds, which advanced an average 4.1%
as investors wagered on an economic recovery taking hold. However, the battered global equity fund group, which slipped 2.9% in the year ended March 31, posted a feeble gain of 0.7% in the first three months of the year.

Tech funds enjoyed an average 6.7% gain in March. But that was simply a recovery from a low base. In the first three months of the year, the average science and technology fund dived 8.7% and the group has now posted an average annual loss of 7.9% over three years.

Conservative income-seeking dividend funds still outpaced their more aggressive equity rivals. The average dividend fund made 2% in March to post a relatively stellar gain of 8.7% over one year. The giant $1.5-billion PH&N Dividend Income Fund, one of the group’s superstars, now boasts a one-year return of 14.8%. Over 10 years, the fund has produced an annual average return of 17.9%, one of the best performances by any mutual fund in any category.

In the Canadian bond fund category, the average fund in the group lost 1.7% last month, to post a loss of 1.2% for the first three months. The average Canadian balanced fund gained 1.4% last month, leaving it ahead 1.2% in the first quarter. The average precious metals fund jumped 8.3% in March to register an incredible gain of 35.8% for the first quarter. Leading the charge was Royal Bank of Canada’s $213-million Royal Precious Metals Fund, which recorded a gain of 58.4% in the three months, the best return of any mutual fund of any type.