Two AIC Funds With a Financial Focus

Here are two AIC funds that hold much of their portfolios in financial services stocks. We prefer diversified funds. But if you must focus on something, finance is a relatively stable sector. AIC Diversified Canada has underperformed lately, mainly because it holds fewer stocks that we see as buys. We don’t recommend it for new buying. However, it’s OK to …read more »

ABERDEEN ASIA-PACIFIC INCOME INVESTMENT $7.98 (Toronto symbol: FAP) (CWA Rating: Income) is a closed-end fund that invests mainly in Australian debt instruments. It also invests in U.S. dollar denominated bonds of Asian countries and in Asian bonds. The fund has net assets of $559.2 million. The fund units now trade at a 6% discount to net asset value.

Aberdeen Asia-Pacific pays …read more »

RBC DIVIDEND FUND $44.90 (RBC Funds, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-463-3863; Web site: www.royalbank.com. No load — deal directly with the bank) has 43.3% of its portfolio in Financial services stocks. It has a further 17.4% in Energy stocks.

The $7.3 billion Royal Dividend Fund’s top stock holdings are Royal Bank, Bank of Nova Scotia, TD …read more »

BMO DIVIDEND FUND $45.82 (BMO Mutual Funds, 77 King Street West, Suite 4200, Royal Trust Tower, Toronto, Ont., M5K 1J5, 1-800-665-7700; Web site: www.bmo.com. No load — deal directly with the bank) (CWA Rating: Conservative) currently holds about 53.1% of its portfolio in the Financial services industry. Its next-largest holding is Energy at 13.3%.

BMO Dividend Fund’s largest holdings are Manulife …read more »

BMO Dividend and Royal Dividend hold mostly high-quality stocks. These stocks sometimes run into deep trouble and go through lengthy struggles, just like lesser investments. Eventually, though, most solve their problems and go on to thrive anew.

Both funds hold a high proportion of their assets in financial services stocks. However, if you must focus on something, finance is a relatively …read more »

IMPERIAL OIL $116 (Toronto symbol IMO; SI Rating: Average) is Canada’s largest integrated oil company, with operations in all phases of the petroleum industry.

In the three months ended March 31, 2006, Imperial’s earnings rose 58.4%, to $591 million or $1.79 a share, from $393 million or $1.13 a share. Revenues fell 2.5%, to $5.8 billion from $5.9 billion a year …read more »

MANITOBA TELECOM SERVICES $46 (Toronto symbol MBT; SI Rating: Average) moved up recently after reporting improved profits in the latest quarter. The company is the main provider of local, long distance, wireless and online services in Manitoba.

In the three months ended March 31, 2006, Manitoba Tel had earnings of $0.65 a share, up 3.2% from $0.63 a share a year …read more »

ISHARES MSCI JAPAN INDEX FUND $15.05 (American Exchange symbol EWJ; buy or sell through a broker) is an exchange-traded mutual fund that tries to match the return of the MSCI Japan Index (Morgan Stanley Capital International Japan Index). The MSCI Japan Index is a benchmark for Japanese equity performance. The iShares Japan Index Fund charges a fee of 0.84% of …read more »

PETROFUND ENERGY TRUST $27.94 (Toronto symbol PTF.UN; SI Rating: Speculative) is now the subject of a takeover bid by Penn West Energy Trust $44.30, symbol PWT.UN on Toronto.

Petrofund unitholders will receive 0.6 of a Penn West unit (with a current value of $26.58), as well as 0.12 of a junior exploration company (worth about $0.36) made up of certain assets …read more »

ISHARES MCSI CANADA INDEX FUND $25 (American Exchange symbol EWC; buy or sell through brokers) invests in most of the stocks in the Morgan Stanley Capital International Canada Index. These stocks represent Canada’s largest and most-established public companies, accounting for about 60% of the market capitalization of all publicly traded stocks. These shares are managed by Barclays Global Investors. There …read more »