TD Entertainment & Communications Fund

Analysis: The TD Entertainment and Communications Fund is an interesting option that invests in companies that are involved in the entertainment, media, and communications industries. Typical holdings include such companies as Apple, Walt Disney, Comcast, and AT&T.

It is a fairly concentrated portfolio where the top 10 names make up slightly more than half of the fund. Not surprisingly, it is heavily weighted towards technology, which makes up 55%. Consumer services is the next largest sector, making up nearly 40% of the fund.

Stunningly, this fund has been classified as a global equity fund. While the industry may have done away with the science and technology category, we continue to classify it as such and do not in any way consider this fund to be an appropriate core holding, as the industry’s fund classification would suggest.

It has been a very strong performer, finishing in the first quarter file every year except for 2008 and 2002 when it finished near the bottom. It is slightly more volatile than the category average, which is not surprising given the narrowness of its mandate. If you are considering investing in this fund, you’d better be ready for a potentially bumpy ride.

Is our opinion, this fund is only suitable for investors who have a high-risk tolerance and are looking to add some exposure to the entertainment and media sectors. For those seeking a more broad technology mandate, we would suggest they look at the TD Science and Technology Fund, CI Global Science and Technology Fund, or the BMO Guardian Global Technology Fund. Each of these is a high quality, well-managed fund providing broad based exposure to the sector.