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Topic: How To Invest

TD Canadian Equity Fund $32.56

TD CANADIAN EQUITY FUND $32.56 (CWA Rating: Conservative) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-386-3757; 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, Suncor Energy, TD Bank, Rogers Communications, Canadian Natural Resources, Canadian Oil Sands Trust, Research in Motion, Schlumberger, Manulife Financial and Freeport McMoran.

The $3.2 billion fund currently holds about 51.7% of its portfolio in Resources shares. It also has a bias towards Financial services stocks, with 18.8% of its holdings in that sector.

Over the last 10 years, TD Canadian Equity posted an 11.0% annual rate of return. That’s better than the S&P/TSX’s return of 9.8%. The fund gained 20.1% over the past year, compared to a gain of 21.4% for the S&P/TSX. TD Canadian Equity’s MER is 2.09%.

TD Canadian Equity Fund is a buy.

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