| Fund Company | Phillips Hager & North Investment Management |
| Fund Type | Canadian Equity |
| Rating | C |
| Style | Growth |
| Risk Level | Medium |
| Load Status | No Load / Optional |
| RRSP/RRIF Suitability | Good |
| TFSA Suitability | Good |
| Manager | Doug Stadelman since October 2009 Andrew Sweeney since October 2010 |
| MER | 1.18% Series D units, 2.04% Advisor units |
| Code | PHN 130 – No Load Units PHN 6130 – Front end units |
| Minimum Investment | $5,000 |
Analysis: Like other PH&N equity offerings, it follows the PH&N philosophy of “quality growth”. The managers look for companies that offer an attractive yield combined with strong management, high levels of profitability, a sound financial position, strong earnings and dividend growth. Valuation is also a key component to the process, since they don’t want to overpay.
It is diversified, holding more than 90 names, with the top ten making up more than 40% of the fund. From a sector standpoint, it looks a lot like its benchmark, with financials, energy and materials representing the bulk of it. Still, it is slightly underweight in materials, which has certainly helped boost its shorter term returns when compared to the S&P/TSX Composite Index.
The longer term numbers have been pretty much middle of the pack with the Series D units finishing just above the median for the category, and the Advisor series coming in just below the median. This discrepancy is the result of the cost structure, which is still fairly attractive with an MER of 1.30% for the Series D units and 2.04% for the advisor sold units.
While this isn’t a bad option, I would likely lean a bit more towards the PH&N Dividend Income Fund over this offering. It has generated comparable returns, but done so with less volatility.