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Topic: How To Invest

TD CANADIAN EQUITY FUND $21.81

TD CANADIAN EQUITY FUND $21.81 (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 to pick stocks. The fund’s managers look at fundamentals, like earnings, cash flow and debt level, to identify what they see as undervalued companies.

TD Canadian Equity Fund’s 10 largest holdings are Royal Bank, TD Bank, Manulife Financial, Bank of Nova Scotia, Canadian Natural Resources, Sun Life Financial, Suncor Energy, Ivanhoe Mines, EnCana Corp. and Research in Motion.

The $2.5-billion fund holds 49.0% of its portfolio in resource stocks. It also has a bias toward financial services stocks, at 32.1%.

TD Canadian Equity returned 6.5% annually over the 10 years to July 31, 2009, equaling the S&P/-TSX. The fund lost 28.4% over the past year, compared to a loss of 17.7% for the S&P/TSX. TD Canadian Equity’s MER is 2.07%.

TD Canadian Equity Fund is a buy.

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