asset management

SCUDDER NEW ASIA FUND $22.95 (New York symbol SAF; SI Rating: Aggressive) invests in a diversified portfolio of Asian and Pacific Rim stocks. It’s managed by Deutsche Asset Management. Scudder New Asia has 24% of its assets in Korea, 17% in Japan, 16% in Taiwan, 15% in Hong Kong, and 8% in China. The fund invests in companies with superior management, dominant market positions, strong balance sheets and improving earnings. Top holdings include Samsung Electronics, Daegu Bank of Korea and Taiwan Semiconductor....

Many tech stocks have moved up lately, and the Nasdaq composite index is now at 2,360, its highest level since 2001. Spending by corporations for information technology products and services should continue to rise this year, along with the U.S. economy. New U.S. regulatory requirements for record maintenance should also increase the demand for computer equipment and software. Still, it would be a risky mistake to let these stocks dominate your portfolio. Although their outlook is bright, they remain highly volatile. You also need to avoid more junior techs that may have more conceptual than financial appeal. Many such stocks can make great scientific progress without making much if any money for investors....

TD CANADIAN SMALL-CAP EQUITY FUND $30.48 (CWA Rating: Aggressive) (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) invests in small to medium-sized companies located in Canada and other countries, that the managers feel offer either superior earnings growth or appear undervalued. It looks for sound companies that stand to benefit as the business and economic environment continues to improve. TD Canadian Small-Cap Equity Fund’s top ten holdings are ING Canada, 3.9%; Inmet Mining, 2.9%; Addenda Capital, 2.6%; Centerra Gold, 2.6%; Pason Systems, 2.5%; First Quantum Minerals, 2.5%; Northbridge Financial, 2.5%; Highpine Oil & Gas, 2.3%; Eldorado Gold, 2.2%; and Industrial Alliance Insurance, 2.2%. The $317.7 million fund is broken down by economic sector as follows: 20.9% in Energy, 20.8% in Materials, 17.3% in Financials, 10.0% in Consumer discretionary, 9.4% in Information technology, 6.5% in Industrials, 5.7% in Health care, 4.8% in Consumer staples, and 3.4% in Utilities....

GREAT LAKES HYDRO INCOME FUND $18.70 (Toronto symbol GLH.UN; SI Rating: Extra Risk) owns five hydroelectric power generation, transmission and distribution systems, in Quebec, B.C., New England and Ontario. Its facilities have 995 megawatts of generating capacity. In the three months ended December 31, 2005, Great Lakes’ revenues rose 29.8%, to $39.2 million from $30.2 million. Cash flow per share more than doubled, to $0.35 from $0.17. Improved rainfall boosted the fund’s power generation in Ontario, and reservoir levels are now above average. The long-term outlook for Great Lakes depends on the satisfactory operating performance of its plants. The company is also subject to environmental regulations. When its long-term contracts come up for renewal, they may be hurt or helped by continuing deregulation of power generation....

TD HEALTH SCIENCES FUND $16.09 (CWA Rating: Speculative) (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) invests mostly in U.S. companies with a mixture of large-capitalization stocks and earlier-stage biotechnology shares. The fund’s managers believe all these firms will profit from an aging population stimulating higher spending by governments and individuals on health care, drugs and research. The fund’s top holdings include WellPoint, Amgen, Sepracor, ImClone Systems, Genentech, Gilead Sciences, UnitedHealth Group, Wyeth, Community Health Systems and Cephalon. Its MER is 2.79%. The $286.4 million fund’s manager is well-known U.S. fund manager T. Rowe Price Associates. TD Health Sciences gained 6.6% over the last year....

While sector or ‘theme’ funds entail special risks, they are much safer than investing in one or two issues in risky fields, such as health care and biotechnology. We feel the bulk of your fund portfolio should be in well-balanced, diversified funds. Should you choose to invest in sector funds, limit your investment to modest quantities. Above all, invest only in funds with proven management and high-quality holdings. Here are updates on two we like: TALVEST GLOBAL HEALTH CARE FUND $16.83 (CWA Rating: Speculative) (CIBC Asset Management, 1500 University Street, Suite 800, Montreal, PQ. H3A 3S6. 1-800-268-8258; Web site: www.talvest.com. Available from brokers) invests in companies in a variety of segments of the health-care industry. Its selections may include pharmaceutical firms, designers and manufacturers of medical equipment and supplies, operators of hospitals and other health-care facilities, and biotech researchers....

TD CANADIAN EQUITY FUND $29.13 (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 Manulife Financial, Suncor Energy, Royal Bank, EnCana, TD Bank, Petro-Canada, Rogers Communications, Bank of Nova Scotia, Falconbridge and Valero Energy.

The $2.4 billion fund currently holds about 31.8% of its portfolio in Financial services shares....

Many bank-run funds share common faults: they are run by committees and anonymous bank employees who produce mediocre results, yet they charge high fees. Here, however, are two big funds run by individual managers that hold the kind of conservative, well-balanced portfolios of high quality stocks we like. Each has its quirks, but overall they are well positioned for low-risk returns. TD CANADIAN EQUITY FUND $29.13 (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 Manulife Financial, Suncor Energy, Royal Bank, EnCana, TD Bank, Petro-Canada, Rogers Communications, Bank of Nova Scotia, Falconbridge and Valero Energy....