Topic: How To Invest


BMO EQUITY FUND $20.70 (BMO Mutual Funds, 77 King Street West, Suite 4200, Royal Trust Tower, Toronto, Ontario, M5K 1J5, 1-800-665-7700; Web site: No load — deal directly with the bank) (CWA Rating: Conservative) mostly invests in blue chip Canadian companies. The fund’s managers aim to identify stocks based on their analysis of the outlook for the industry the firms operate in, as well as their earnings records, management strength and growth potential.

The $1.4-billion BMO Equity Fund’s 10 largest holdings are Bank of Nova Scotia, Royal Bank of Canada, Toronto-Dominion Bank, Canadian Natural Resources, Suncor Energy, EnCana Corporation, Barrick Gold, Manulife Financial, CIBC and Goldcorp.

The fund currently holds 35.9% of its portfolio in the resource sector. Its next-largest segment is financial services, at 21.6%.

Over the last 10 years, BMO Equity posted a 5.2% annual rate of return. That’s better than the S&P/TSX’s 4.6%. The fund lost 33.9% over the past year, compared to a loss of 38.2% for the S&P/TSX. BMO Equity’s MER is 2.28%.

BMO Equity Fund is a buy.

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