Investment Q&A

Q: Would you recommend this fund or is there something else you would suggest for income.
Many thanks,
Peggy

Q: I am interested in A CEf/ETF in the US health care sector and came across HHL.UN. It seems to be doing quite well with a high yield, but I am concerned that the payout over 2015 is 100 % ROC. I wrote the company and got this reply (HHL.UN only started in 2014): The distributions last year were all return of capital. This was in part due to the way the initial costs of the Fund are amortized over the first several years (ie. Certain of the initial IPO costs that were actually taken at the time of the IPO are for tax purposes considered expenses over subsequent years, although the actual cash cost has already occurred.)

I do not want to invest in a company that basically send me my money back. Your opinion please? Thank you!

Q: This stock has not moved much since it was listed. Your opinion please, is it a buy for a hold of 4 years or is this a 10 yr. hold.
Lilly

Q: Your thoughts on this one for income. These are all high quality companies and the common stock version has payed a nice dividend for a long time.

Q: BGI.UN seems very illiquid but seems to be in a good sector and has a high yield. Thoughts on that ?

Q: I hold a modest position in the ETN as I have an interest in the Schiller Cyclically Adjusted Price-Earnings strategy. Currently the position is in my RRSP, but I am considering it in a Non-registered account instead.

From a tax standpoint, my current findings suggest that it would be only capital gains based on my buy/sell costs, but I haven't found specific information from CRA to confirm. Can you advise where I might be able find the relevant taxation information.

Thanks, Jeff

Q: I have held this for a while, and regrettably let it slide to the point where I am barely even, including dividends (all ROC). My initial thought was that as rates rise and their loans mature, they will roll over at higher rates, thus protecting or even enhancing the dividend. Now, rates don't appear ready to move by any substantial amount any time soon. Is there a danger that they will issue new loans at lower rates and reduce the dividend? Do you know what their current payout percentage is? This is held solely for income - would you hold for now or sell?
Thank-you

Q: U has dropped a lot and from what I can see is trading at a big discount to book. I realize the fees are high, but what do you think of it for a trader.

Q: Dear Sirs,

Could you please comment on the holdings og BGI.un, specifically as it pertains to their ownership of MLP's in the U.S. and if this is the case , the percentage of the fund devoted to this asset class.

Best regards,
Brads

Q: Hello great team,
I own some split preferred FFN.pr.a. I am OK with 5.25% dividend and my understanding is that my principal investment and dividend are safe as long as NAV value of the unit remain above $10. Current NAV is ~$14. Are there any other risks (e.g. management) in losing my principal of $10 per preferred share other than drop in NAV value less than $10. Overall, what do you think about this preferred? DBRS rating is 4 high. The fund is managed by Qudravest Capital Management. I will appreciate any alternate suggestions to this preferred share? – I am OK with 5% return and safe principal.
Thanks

Q: will you please advice if this is a safe buy? whats with the dividend

thanks donald.

Q: Hi 5i,

I rarely ask questions. I find the answers usually in the Q&A database. I have a credit of 93 questions. (Hmmm, wonder if there is an aftermarked for 5i Questions, ha ha ha).

Seriously, I would like your opinion on Dividend Select 15 Corp. I understand it is a holder of quality Canadian dividend producers and can increase the amount of its distrubuted dividend by writing covered calls against the underlying holdings. I would like to hold this in my TSFA, with a DRIP strategy. I would be looking for at minimum a 5 year hold after which I would exit the DRIP and use the income to supplimnent my retirement income.

You have the best service out there.

Jim,

PS. It would be cool if the 5i person who actually answers the Q&A's indicates their intials (P=Peter, R=Ryan, T=Team) etc.)

Q: any opinions on this one , thanks

Q: what do you think of this one , safe to add it to a portfolio? Or avoid it for something else? thanks

Q: My bank adviser recommended this fund. It has gone from $30 to $50 in the last 2 years. I see a MER of 3.10 and it has back end load.
Can you tell me how this back end load works in general and what you think of this fund? I wonder if there is a little bit of conflict of interest here because the bank sponsors this fund.

Q: What are you thoughts on buying uranium participation for a 5 year hold.

Q: Seems to pretty much dropped steadily since inception,could you comment on this going forward ?

Q: I am looking for a trading opportunity in this.
FTN just sold 2.5 million shares of FTN at 9.90 at the end of November. The most recent NAV on Quadravest website for FTN is 16.71 at Dec. 31.
These are dual class structures and if the preferreds are worth $10 that leaves approximately $6.71 for the nav of FTN.
Whoever pays $9.90 for this in Nov. got ripped off.
FTN was at $5 in the last week of trading. If I bid at $5 my cost should have a good margin of error below the current NAV.
I had success with RBN.un previously playing this game with stink bids well below NAV.
Thx for expert opinions.
Blake

Q: DFN pays dividends on a basket of largely banking and other large companies. Over the last few days it has dropped to levels not seen since 2012. Since the companies it holds have not dropped back anywhere near so much what could account for such a collapse?

Q: Hello Peter;

Was wondering if I could get your present thoughts on mfr.un and

what it will take to turn it around (if anything)

all the best!