Q: Would you have any objections about this fund invested in a fixed income part of portfolio within a registered account ? Could you suggest some similar funds or ETF as a better option and/or for diversification of a fixed income portion of portfolio. Thank you.
5i Research Answer:
PMO205 has a five star rating and a since-inception return of 6.92%. It has accomplished the job. It did lose money (6.6%) last year but beat its benchmark (-13.3%). We would be quite comfortable owning this. MER is high though at 0.84%. Note PMIF is an ETF equivalent, but also fees are high. ZMI is not exactly equivalent, but offers an indicated yield of 5.39%, fees of 0.46%, and a fairly conservative set up but does have equity exposure. XBB is all bonds, 3.2% and 0.10% fees. Again, not 100% equivalent. We would thus be OK keeping PMO205 currently.