Precious Metals and Natural Resources mutual funds were the top performers in February.

That’s the second month in a row the categories have finished one-two, according to new data from Morningstar Canada.

A big turnaround by Japanese Equity funds was also evident. They ended February with a 4.7% median gain, third best among the 34 official categories. A surge in the Tokyo stock market allowed the category to jump from its last-place January return of -8.1%. The category’s top performer during February was Fidelity Japanese Growth, which gained 11.2%.

Among all mutual funds tracked by Morningstar, the overall median return was just 0.2% during February, as U.S. Equity, U.S. Small and Mid Cap Equity and Science & Technology funds posted negative returns.

The latter category lost 11.5% during February, and at –31.1% was the worst performing category during the year ended Feb. 28. Canadian equity funds managed to break even, for the most part, during February, as did global and international funds.

“While a flat return is nothing to write home about, some good news can be extracted from the change in momentum in the latter part of the month,” said Mark Warywoda, Morningstar Canada senior analyst. “Most funds had been following the stock markets downward through the month’s first three weeks, but a late surge allowed many of them to recoup earlier losses and at least break even.”

The median fund in the Precious Metals category produced an 11.2% return. Fund managers outperformed the Toronto Stock Exchange’s Gold & Precious Minerals index, which gained 5.5% during the month. The category’s top performing fund — and the best among all funds — was Sprott Gold & Precious Minerals, which gained 17.5% during the month.

The median Natural Resources fund was up 7.8% during February, propelled by a 9.1% gain in the TSE Oil & Gas index, as well as by strong gains in the TSE’s Paper & Forest Products and Metals & Minerals indexes. The category’s best one-month performer was Dominion Equity Resource, up 12.9%.

C.I. Mutual Funds added four five star funds to its lineup at Feb. 28, vaulting into second place with 10 funds holding the top rating. Mackenzie Financial still has the most five star funds, with 11, down two from Jan. 31.

AIM Funds Management added one more five star fund to raise its tally to nine, while TD Mutual Funds added three to give it a total of eight top-ranked funds.

Overall, there were 191 five-star funds at Feb. 28, up from 188 at the end of January; including 22 which made the leap from four stars, and four in their initial period of rating eligibility. Twenty other funds dropped to a four-star ranking from five-stars.