TD CANADIAN EQUITY FUND $30.40 (CWA Rating: Conservative) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-463-3863; 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 Bank of Nova Scotia, Suncor Energy, Royal Bank, TD Bank, Rogers Communications, Canadian Oil Sands Trust, CN Railway, Tim Hortons, Canadian Natural Resources and Teck Cominco.
The $2.9 billion fund currently holds about 28.0% of its portfolio in Financial services shares. It also has a bias towards Energy stocks, with 21.7% of its holdings in that sector.
Over the last 10 years, TD Canadian Equity posted a 12.2% annual rate of return. That’s better than the S&P/TSX’s return of 10.0%. The fund gained 23.1% over the past year, compared to a gain of 17.3% for the S&P/TSX. TD Canadian Equity’s MER is 2.14%.
TD Canadian Equity Fund is a buy.