Investment Q&A

Q: These CEFs pay good dividends. Would you consider either a good investment from a Canadian point of view - with particular reference to tax liabilities inside a LIF account, or in a non-registered account?

Q: Could you please comment on Lifeco Split Corp. How high risk is this.

Q: Can you provide an overview of these products that are widely available in the US and not canada. I know they use leverage to generate returns and especially many pay higher dividends. i have tracked them against my other portfolio holdings and they have not done (in general) any worse than my other holdings in a correction. I like the nice dividends for my retirement - For example QYLD. how much more risk am i taking on?

Q: Could you please comment on Closed end Municipal Bond Funds in the U.S.? How are they leveraged, and are they a good safe investments as a hedge against more troubled times next year? Any picks?

Q: Hi 5i
I am still keeping an eye on BGI.un for a possible entry point and wondering with the pull back that has occurred over the past few months if the time is right to take a position or is there some negative news that has caused the pull back and I should be cautious? Appreciate you opinion. Thanks

Q: Is there a summary of Canadian Closed end funds that is available to view? Years ago, Financial Post carried a daily summary of this sector, but I cannot find that anymore.

Q: I hold riocan for income and some growth and I am up at 45% so far. For more income, do you think it is a good idea to sell and buy the global dividend spit fund ( GDV.to ) that has a dividend of 10% at the moment ? Advise me if you have a better suggestion or simply do nothing and keep riocan. BTW it is in a taxable account so I have to pay taxes on the move. Thanks and have a nice day.

Q: I have been encouraged to invest in this dividend split corp paying about 5.45%. Still explain the risk/benefit. Thank you so much.

Q: I am scratching my head on this one! I bought some very cheaply in the recent market sell off. I am looking at the NAV of $18.10 (Sept. pricing). That seems an extraordinarily steep discount to what it presently sells for. Am I reading it correctly? Further, I noticed it passed up a termination date some time back but has another at 2023 year end. What would convince them to shut it down? Shareholders like me or something else? If something else what could that look like?

TIA

Q: I came across this name the other day and it piqued my interest. In particular the yield. Would you recommend this company as part of a dividend portfolio and does it have any growth potential besides its yield?
Thank you as always for your great service it is much appreciated.

Q: Just wondering what you think about Canadian General Investments.

It appears as if it is trading at large discount to its NAV. Do you see the share price catching up to the NAV?

Would you be a buyer at these levels?

Q: Hi 5i,
Do you think that Brookfield Global Infrastructure BGI.un will benefit from the passing of the Biden infrastructure bill? They have quite a diverse ownership of assets with approximately 70% in the US. They also pay a very good dividend. Thanks

Q: Hi 5i,
Would you please provide an explanation of the announcement July 23 by Brookfield Global Infrastructure of establishing an At The Market Equity Program. They don't say how the cash raised will be used. Is this to raise money for the fund to invest in more infrastructure assets? It seems timely right now given so many advisors are suggesting to invest in infrastructure. Your thoughts please. Thanks

Q: Can you comment on this? I have little info on it.

Q: MBN What does this company do. Is it profitable. What is the outlook going forwards? Thanks.

Q: Hello,
I would like to understand the performance bonus to Hamblin Watsa of 20% over 5 %.. is it operating like the Buffet partnership with the 0/6/25%? Is FIH.U operating like a mutual fund? What are your thoughts on a long term position? What sort of returns should one expect from this? Thank you for your sage advice. Shyam

Q: In an answer about this fund on March 24 this year you said you thought there were better funds. Could you name a few and explain why please?

Q: Greetings 5i,

What to do about FFN. I love the div and I’m +77% since the Covid bounce back. I guess my biggest concern is I don’t understand how the div is so large. I wonder if the div it pays gradually erodes the NAV and so inevitably will result in a lower and lower share price and zero dividend. Or will the share price move up with the assets it owns? Can 5i shed some light on this?

Thanks!

Q: Good morning,
I see "Sprott Physical Gold and Silver Trust Updates Its 'At-The-Market' Equity Program" and may issue up to one billion dollars of new units. If I understand this correctly, Sprott will issue new units at the market price. So say gold and or silver go up, Sprott will issue new units, does this not stop the price of CEF from participating in the price rise of the metals and they issue new units and therefore reduce the demand from the market for units currently available and cap the price rise? If one wants to participate in the rise in gold and or silver appreciation it seems to me CEF is therefore not the way to do it.
Thanks.

Q: The NAV as of March 31/21 is 14.80 so being below 15.00 no dividend is paid. What is the rationale for DF trading in the 4.70 range recently and today is at 5.35.
Thanks