High oil and gas prices powered investment funds that invest in natural resources again last month, according to preliminary performance data from Morningstar Canada.

The resource sector’s good fortunes also boosted Canadian equity funds in general. All but three of the 32 Morningstar Canada Fund Indices gained ground during the month.

Natural Resources was the top performing Morningstar Canada fund index during February, gaining 11.9%. Morningstar says the category has outperformed all other categories so far this year with a cumulative 16% return during the first two months.

“Oil prices have remained lofty, once again breaking through the US$50 per barrel barrier, due to cold weather in the Western Hemisphere, potentially forestalling the Organization of Petroleum Exporting Countries’ plans to cut production,” said Morningstar Canada analyst Brian O’Neill, in a release.

Second best category for February was the Latin American Equity fund index, up 11.8%, followed by Emerging Markets Equity and Precious Metals, gaining 7.7% and 7.6% respectively.

Fixed-income funds produced mostly flat returns during February, with the Canadian Bond and Foreign Bond fund indices falling 0.2% and 0.4% respectively. The month’s worst performing fund index was Healthcare, down 0.5%.

Small-cap stocks led the strong Canadian equity sector. The Canadian Small Cap Equity fund index rose 6.7% during the month, followed by Canadian Equity (Pure), up 4.9%, and Canadian Equity, up 4.7%. “Despite the strength of the loonie, which exerts pressure on exports, the S&P/TSX Composite Index has posted positive returns for seven straight weeks,” O’Neill said. “The energy, materials, and financials sectors — which together comprise almost 70% of the index — were all up for the month.”

U.S. and other foreign equity fund indices had a less lucrative month. The U.S. Equity index rose 1%, outpaced by the U.S. Small & Mid Cap Equity index at 2.2%.

Among other foreign sectors, the Asia ex-Japan Equity fund index gained 4.7% in February, while Japanese Equity, barely broken even at 0.8%. European Equity had a strong month, gaining 4.2%.

International Equity, which includes funds that invest only outside North America, rose 3.6%, while Global Equity, held back by U.S. stocks’ less stellar performance, increased 2.3%.

Final performance figures will be published at mid-month.