Topic: How To Invest

Pat: Can I have your recommendation on the Scotia Global Dividend Fund? Thank you.

Article Excerpt

Scotia Global Dividend Fund is a mutual fund that invests in dividend-paying stocks worldwide. Its top holdings are Citigroup, UBS Group AG, Wells Fargo & Company, Nestlé SA, Procter & Gamble, Roche Holdings AG, Novartis AG, Mondelez International, Apple and Bayer AG. Scotia Global Dividend Fund’s geographic breakdown includes the U.S., 48.7%; Switzerland, 11.2%; Canada, 9.7%; the U.K., 9.0%; and Germany, 3.3%. The fund’s MER is 2.64%. It yields 2.2%. The Scotia Global Dividend Fund holds mostly large-capitalization multinational companies. We don’t see any particular advantage in investing solely in the world’s biggest stocks, and we have no reason to believe the fund’s managers can create any such advantage. With that in mind, we see little appeal in exposing yourself to a 2.64% MER, so we don’t recommend the Scotia Global Dividend Fund. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ As a low-cost alternative to the Scotia Global Dividend Fund, you could invest equal amounts in these…