| Fund Company | Phillips, Hager & North Investment Management |
| Fund Type | U.S. Equity |
| Rating | F |
| Style | Value |
| Risk Level | Medium |
| Load Status | No Load / Optional |
| Manager | Carl Lytollis since July 2005 |
| MER | 1.20% – No Load 2.07% – Front End |
| Code | RBF 1460 – No Load Units RBF 6460 – Front End Units |
| Minimum Investment | $500 |
Analysis: This fund invests in a relatively concentrated portfolio of U.S. based companies that have a growing dividend stream and attractive valuations. Most of the holdings are big, well know, blue chip companies like Johnson & Johnson, Chevron, Exxon Mobil and GE.
The sector mix is fairly diversified. Given the focus on dividends, it is not surprising to see that financials have the largest weighting in the fund, at about 19%. Industrials, healthcare, technology, energy and the consumer sectors are all pretty evenly represented, holding between 12% and 15% each.
While the fund may be called the PH&N U.S. Dividend Income Fund, it does not pay a regular distribution. Instead it pays out an annual distribution at year end.
Performance has been middling at best for the lower cost D Series units. For the past year, it gained 29%, which lagged both the index and the majority of its peers. Longer term, the numbers aren’t substantially better, with a five year annualized gain of 9.8%, compared to the S&P 500 which gained 11.7%. If we look at the higher cost Advisor Series units, the results are even more disappointing. The volatility has been in line with the index and category average.
Considering all the above, this isn’t a bad fund, I just don’t see any compelling reason to own it. There are better U.S. equity picks available, or you could go with an index fund for a stronger risk reward profile. That is particularly true if you are considering the higher priced advisor series units.