| Fund Company | TD Mutual Funds |
| Fund Type | Global Equity |
| Rating | A |
| Style | Growth |
| Risk Level | High |
| Load Status | No Load / Optional |
| Manager | Daniel Martino since October 2009 |
| MER | 2.82% |
| Code | TDB 652 – No Load Units TDB 324 – Front End Units TDB 354 – DSC Units |
| Minimum Investment | $500 |
Analysis: Finally, a fund after my own heart – entertainment and communications! The TD Entertainment and Communications Fund invests in companies that are involved in the entertainment, media, and communications industries such as Amazon, Google, and Facebook. Given the pace at which our communication technologies continue to evolve, there is significant growth opportunity, if you have the stomach to withstand the potential of another tech bubble.
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 nearly 60%. Consumer services is the next largest sector, making up nearly 35% of the fund. It has a go anywhere mandate, but most of the focus has historically been in the U.S. As of September 30,
As part of the management process, the manager looks for multi year, secular trends that will evolve over the broader technology landscape. Because of this longer term focus, portfolio turnover of late has been fairly modest, averaging in the 40% range. They will use periods of higher volatility to improve the portfolio, as evidenced by the higher turnover in 2008 and 2009.
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.
It is classified as a global equity fund because the Science & Technology category is no more. Despite the strong performance and modest historic volatility, this is not a fund that I would consider to be a core holding. Given that it invests only in a few sectors, the potential for extreme volatility is fairly high. Instead, I believe that this fund should be treated much like a sector fund, and is only suitable for those who can accept its higher risk profile. Exposure within a portfolio should also be limited.