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Topic: How To Invest

TD Canadian Equity Fund $19.01

TD CANADIAN EQUITY FUND $19.01 (CWA Rating: Conservative) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-866-222-3456; Web site: www.tdcanadatrust.ca. No load — deal directly with the bank) uses a “bottom-up” approach (using fundamentals such as earnings, cash flow and low debt) to identify undervalued companies with strong growth potential.

TD Canadian Equity Fund’s 10 largest holdings are Royal Bank, Brookfield Asset Management, TD Bank, Potash Corp., Crescent Point Energy Trust, Nexen Inc., Suncor Energy, Sun Life Financial, Manulife Financial and Research in Motion.

The $2.6 billion fund currently holds about 47.6% of its portfolio in Resources shares. It also has a bias towards Financial services stocks at 28.2%.

Over the last 10 years, TD Canadian Equity posted an 11.5% annual rate of return. That’s better than the S&P/TSX’s return of 9.7%. The fund lost 17.2% over the past year, compared to a loss of 14.4% for the S&P/TSX. TD Canadian Equity’s MER is 2.07%.

TD Canadian Equity Fund is a buy.

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