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Mutual Fund News

BNN MARKET CALL / GAVIN GRAHAM

Gavin Graham, director of investments, BMO Asset Management. Today we look at BMO Guardian Dividend Growth Fund (managed by Michael Stanley).

Fund Stats

MER 2%

Total Assets $429.6-million

Globe 5-Star Rating

Top Five Holdings

Royal Bank; TD Bank; Scotiabank; Manulife; CIBC

Past Picks: May 20, 2008

Cameco (CCO-TSX)

Then: $42.84 Now: $30.13

Total return: -28.98%

Thomson Reuters (TRI-TSX)

Then: $36.82 Now: $34.17

Total return: -3.38%

Power Financial (PWF-TSX)

Then: $35.21 Now: $26.11

Total return: -21.84%

TOP PICKS

TMX Group (X-TSX) $33.68

"TMX is a play on the recovery in volumes and new issues in Canada on the back of the resource sector. It's been oversold."

Husky Energy (HSE-TSX) $33.65

"Husky has a similar asset profile to Suncor after the merger with Petro-Canada, with oil sands refining and marketing and offshore oil. However, it's cheaper and its largest shareholder, Li Ka-shing, is likely looking to retire in the near future."

Telus (T-TSX) $32.75

"The selloff on fears of wireless competition has been overdone. Telus pays an excellent dividend and may yet end up merging with an Eastern Canadian player to provide the complete package of phone, Internet and TV."

Performance

FundGroupS&P/TSX
1 mo.5.16%6.97%7.26%
6 mos.-8.71%-6.1%-2.51%
1 yr-26.1%-24%-30.7%

Outlook

"The markets have rebounded by 35 per cent in the last three months, which is the average recovery over the 12 months after a bear market in the last 80 years. Some pause should be expected, especially if second-quarter earnings remain weak. The continued low level of interest rates and the recovery in resource prices driven by Asian demand should move the TSX higher in the next year."

Anwar Ali

BNN-Business News Network presents Market Call live Monday to Friday at 12:30 p.m. ET/9:30 a.m. PT. To send a question e-mail marketcall@bnn.ca.

© 2007 The Globe and Mail. All rights reserved.

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