BMO EQUITY FUND $31.50 (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) generally invests in the shares of 20 to 40 “blue-chip” Canadian companies. These stocks are selected based on the manager’s outlook for the industry they operate in, the earnings record of each company, the strength of management, and the potential for growth.
BMO Equity Fund’s 10 largest holdings are Manulife Financial, Suncor Energy, Royal Bank, TD Bank, Sun Life Financial, Petro-Canada, Canadian National Railway, CIBC, Bank of Nova Scotia and EnCana.
The $2 billion BMO Equity currently holds 37.6% of its portfolio in the Financial services industry. Its next-largest holding is Energy at 23.2%.
Over the last 10 years, BMO Equity posted an 11.5% annual rate of return. That’s better than the S&P/TSX’s return of 10.6%. The fund gained 14.9% over the past year, compared to a gain of 19.6% for the S&P/TSX. BMO Equity’s MER is 2.32%.
BMO Equity Fund is a buy.