Q: Can I please get your opinion on CYB? It’s been a long term hold in an RRSP and has done well. Do you see it as a continuing long term hold in an RRSP or maybe sell half and put into something else? It is over 10% now.
5i Research Answer:
CYB has total assets under management of $1.5B, a portfolio of 57 companies, an MER of 1.15%, and its top holding is EdgePoint Wealth Management at a 16% weight. Since inception in 2008, it has returned a strong 13.7% annualized rate, and while we cannot personalize responses, we would be comfortable trimming some exposure over time to reallocate to other global equity funds or North American specific companies. It does have a concentrated position in EdgePoint Wealth Management and while we feel comfortable with this long-term, it does open up the fund to concentration risks.