Mutual funds get bump from Suncor, Canadian Oil Sands

TD Asset Management is the largest shareholder of Canadian Oil Sands

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—This article was updated on Oct. 7, 2015 at 1:30 p.m. to include more information—

Wishing you bought shares of Canadian Oil Sands before stocks skyrocketed? If you’re a Canadian mutual fund holder, chances are you probably own a fair amount already.

Stock prices soared more than 50% on Monday after Suncor Energy launched an unsolicited $6.6 billion bid for Canadian Oil Sands Ltd. this week.

TD Asset Management is the largest shareholder of the energy company, owning roughly 5% of common stock, meaning that the hundreds of thousands of Canadians who hold TD mutual funds may have received the Canadian Oil Sands bump.

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TD Dividend Growth, TD Monthly Income or TD Dividend Income funds are the largest mutual fund shareholders in Canadian Oil Sands, according to Morningstar. Other funds with holdings in Canadian Oil Sands are managed by Deutsche Asset & Wealth, Franklin Advisers Inc. and CIBC to name a few.

According to Doug Warwick of TD Asset Management, the spike in Canadian Oil Sands stock price indicates that there is “a lot of value out there.” He says that mutual funds that own energy stocks may see gains when oil normalizes back to more reasonable levels.

“This would be favourable news for most mutual funds out there today,” Warwick says.

Around 4.9 million Canadian households invest in mutual funds, Ipsos Reid finds.

As well, mutual funds make up 31% of Canadians’ financial wealth, according to The Investment Funds Institute of Canada.

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