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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: We have just returned from a five week trip to Singapore, Vietnam and Malaysia. We really were impressed with the work ethic, entrepreneurship and the tremendous growth in the middle class in all three countries. We always look for the presence of Canadian companies when travelling and were disappointed in the lack thereof. We saw Manulife, A&W, CIRCLE K and RBC. With the possible change in our trade pattern to the south would you have any investment suggestions for companies that are selling into these above-mentioned countries?
Read Answer Asked by Peter on January 31, 2017
Q: I buy a number of my international stocks on the OTC Market, since my brokerage account does not let me directly transact on exchanges outside of North America. The American Depository Receipts (ADR) for a particular company ("xxxx") have the ticker format xxxxY, whereas the "fungible" shares (i.e. for which there is somewhere, at least in principle, an actual stock certificate issued by the company) have the ticker format xxxxF.

Assuming that there is at least some liquidity for the shares of a particular company, it is almost always the ADRs (xxxxY) that have the most trading volume. However, sometimes the fungible shares (xxxxF) are slightly more liquid than the ADRs.

In terms of risk (e.g. in the event of another major financial crisis) are the ADRs more risky, i.e. do they depend on the solvency of the custodial bank in New York (e.g. BNY)? On the other hand, who actually possesses the fungible shares (xxxxF)? Is it this same custodial bank? Is there a real stock certificate somewhere?

Thanks!
Read Answer Asked by Gregory on January 25, 2017
Q: I am looking at moving a significant chunk of our retirement money into either/both the Tangerine Equity Growth Portfolio and the Tangerine Balanced Growth Portfolio in an attempt to follow the 'one fund solution'. What are your thoughts and are there alternative index funds you think may be a better bet. This is my first question (membership was a Christmas prezzie from my dad)!
Read Answer Asked by Chris on January 17, 2017
Q: It has been suggested to me that a high percentage of one's investments should be made outside Canada as this is what most pension funds do since Canada is such a small part of the world's capitalisation. Do you concur with this belief re investing? In Canada, in particular, and in the US, to a lesser degree, I have a wealth of information about specific companies. In the rest of the world it is difficult to obtain good information and to buy except through ADR's. Thus my best way to invest is through Mutual Funds or ETF's. It seems to me when I look into Global ETF's that none that I could find matched the long term performance of MAW150. Since I tend to hold an investment for a long period of time, short term fluctuations in value are of little concern. My biggest concerns are the MER of 1.74% per annum and the possibility that Mawer will not match future performance with past performance. Is there an ETF that has a good track record or a different Mutual with a low MER that matches or beats MAW150? If MAW150 is the best, then based on your response, I may purchase up to 25% of my assets in it. With this change in asset mix approximately 50% of investments will be outside of Canada. Thank you. I value your opinion very much.
Read Answer Asked by ED on January 17, 2017
Q: I am looking at adding one of the two to my US holdings and would appreciate your thoughts. Which would be the better long term hold, for 5 years? Tencent Holdings, or Impinj?

Acknowledging that you do not focus on US stocks, I still value your opinion -- as you helped me (along with many others no doubt) hit it out of the ballpark with both NVDA and Tenneco. (Thank You! )

Read Answer Asked by Sylvia on January 16, 2017
Q: Good Day: I'm wondering if you have a recommendation in regard to an ETF for emerging markets that trades on the TSX? I have held ZEM in the past and have no particular concerns but as I now think about re-entering emerging markets it seems prudent to access your wisdom about possible alternatives that might be superior to the BMO product. Many thanks.
Read Answer Asked by Donald on January 12, 2017
Q: Just curious. There is an alzheimer drug that has been found to repair and rebuild teeth is called "Tideglusib" and it is mfg by a pharma co. called "Zeltia Group" but, they are on the Spanish Madrid exchange symbol "ZEL" with a quote of 4.045 ?.
The question is; how does one buy and sell on these smaller exchanges, how does the currency aspects work and what are the tax implications etc?
Thank you
Read Answer Asked by Ryczard on January 11, 2017
Q: Hello 5i
Have allowed MAW150 to become a heavy weighting in Portfolio.
Are you able to comment on potential sources for its lack of performance through 2016? I am a little surprised to be down on the year.
A recent article on MAWER indicated they have likely run out of good investment ideas and their previous choices have run out of juice.(Top award winners in Mutual Funds regressing to moderate performance)

Would you just let them do what they are paid to do (MER= 1.74%) or would you choose to reduce (MAW150: 74% International allocation-Oct 31) by shifting capital to US oriented ETF - XMC?

Portfolio Geographic allocation for International vs USA are about equal currently.

If something else comes to mind as you consider this questions please feel free to add.

Thanks
Dave


Read Answer Asked by Dave on December 20, 2016
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