Investment Q&A

Q: I'm looking to place some money into a "long-term" hold ETF. While I have usually went with traditional index-trackers (think most iShares/Vanguard), I'm now starting to look at some of the new funds by Purpose Investments.

Any thoughts on PHR (Purpose Duration Hedged Real Estate) or PRA (Purpose Diversified Real Asset Fund)?

Q: With the recently announced change in US/Cuba relations would you recommend this etf?

Q: I have an investment in the Global Infrastructure fund (GIF.UN). As luck would have it, it's gone straight down since I purchased it. The yield is 6% so I like that but being down 11% on my capital offsets that value significantly. The Middlefield company website suggests an NAV $2 higher that the current unit price ($11 vs. $9). Is the posted NAV yet catch up with the real value? The top 10 holdings look like good companies to me. I could average down, sell or hold. Not sure at this point what to do. Any thoughts?
Second part question is that I don't healthcare exposure and wondering what you think of Middlefield's new healthcare fund GHC.UN is a good place to invest or would you suggest something else for exposure in this space? What's your opinion of the quality of the Middlefield management to provide a good investment vehicle, stable returns and growth?

Thank you.

Q: On November 20th Harvest Portfolios Group Inc. issued a news release announcing it had filed the final prospectus for a new fund which will invest in an equally-weighted portfolio of equity securities of 20 healthcare issuers listed on a North American stock exchange. Offering is scheduled to close on December 18 and the units will be listed on the TSE under HHL.UN.
Are you aware of this new fund? Do you know Harvest Portfolios Group management? What is your opinion as I am interested in investing in health care?
Thank you very much.
Nadine

Q: Peter and Team,

This is sort of a follow up to a question I had yesterday regarding finding shorter term or floating rate bond instruments in which to invest. Ideally, I'd get a product that didn't get creamed by rising rates and paid me a good yield.

What are your thoughts on O'Leary's Floating Rate Income Fund OFR.UN?

Thanks,

Marc

Q: i own a large position in this and thought it was fairly safe with a VG dividend ... seems to have dropped a little, do i need to worry about this if interest rates rise ...thx

Q: Would you consider Brookfield Total Return Fund: HTR-US a good- reasonably safe investment in the current market situation. Also, do you think the dividend is safe at this level (approx 9% yield)?
Thank you.

Q: When I assumed control of my RRSP from the broker , I found OCV-UN in overly large amounts. Broker piled in at IPO price of $12. (Broker was dealer-advisor). I left the holding as was for the wrong reason, namely : OCV.UN has dropped significantly from cost such that monthly distribution is now around 9 to 10% p.a. I am uncomfortable with O’Leary. Are you able to suggest one or more ETFs that could take the place of OCV.UN? In the alternate, if you feel it’s OK to leave it alone for now, I would be thankful for knowing that.
Thank you and all the best
Adam

Q: Canadian Banc Corp is an Investment Corporation
that invests in a diversified portfolio consisting of six
Canadian Banks. Two types of shares are available, a
Class A (BK) and a Preferred (BK.PR.A).

I have had class A shares for a few years and am very pleased. It seems to good great dividend and capital gains . I see the very low liquidity as a big problem. I believe you are not supportive of the structure and the fund.
Would you reduce as it is 6% of holding with no other bank exposure? what other red flags would you look out for.
thanks
Yossi

Q: I thought this article by Rob Carrick (Oct 23rd) would be of interest to your Members.
Any comments on it from 5i would be welcome as CBO is often recommended on the site as providing a 4% + return.

Thanks in advance:

"You're probably not getting the yield on bond ETFs you think you are"
Oct 23, 2014 by Rob Carrick


"Some of the most stubborn investors out there are the ones who believe they’re getting yields of as much as 4 per cent on their mainstream bond ETFs."

"Consider the popular five-year laddered corporate and government bond funds offered in BlackRock Canada’s iShares family of exchange-traded funds (CBO and CLF). If you find quotes for them on Globeinvestor.com, you’ll see yield of 4.2 per cent for the corporate bond ETF and 3.6 per cent for the government bond ETF. For comparison’s sake, a Government of Canada five-year bond yields about 1.4 per cent a 10-year Canada bond gets you just short of 2 per cent."

"I am continually surprised by the number of investors who don’t question these bond ETF yields further. They insist on believing they are getting double the yields available on government bonds. Think about it, people. If bond ETFs offered such outsized yields, wouldn’t investors have piled into them and driven the yields down? As prices rise for bonds and bond ETFs, yields fall."

"If you’re in the group that takes the published yields for bond ETFs at face value, let me direct your attention to the yield to maturity numbers displayed on the fund profiles for CBO and CLF on the BlackRock website. CBO clocks in at 2 per cent, or 1.7 per cent after fees. CLF comes in at 1.4 per cent, or 1.2 per cent after fees."

"The yields you see in bond ETF quotes is the distribution yield, which is based on the previous 12 months’ worth of interest payments and the current share price for the bond ETF. If the price of a bond ETF stayed put, then distribution yield might mean something. In fact, the price of CBO and CLF units have been falling in recent years. Globeinvestor.com shows a three-year cumulative drop of 3.6 per cent for CBO and almost 5 per cent for CLF. A lot of the bonds held in these ETFs have been trading at prices that are above their value at redemption. As these bonds approach maturity, they decline in price."

"If you want to know what yield you’ll get from a bond ETF on a total return basis – that’s interest paid out combined with changes in the unit price – then check yield to maturity. The distribution yield is a much happier number, but it’s not the whole picture."

Q: Your thoughts on PDV and GII.UN. They both pay a good dividend.

Q: Hi 5i Team;

I'm thinking of buying this because it has a high yield (6.86%). Would you recommend buying it or is there a better buy with this yield?

Thanks
Larry

Q: This fund pays out a dividend of 9.3 cents per month - 9.47% at today's share price. It has what seems to be a low beta of 0.22. ( Is that relevant for this tuype of stock?)
How would you rate this stock as a reliable component of the fixed income portion of my US dollar portfolio?

Thank you.

Q: Hi 5i Team.
One of the few remaining Mut. funds left from our "big broker" days is Mackenzie Sentinel Corp. Bond fund MFC756/856. We hold it in both our joint taxable a/c, and in our RSP's. It is a substantial holding at ~ 8.5% of our consolidated. We have done fairly well todate, but over the last month it has been on a steady decline (-1.7%).
With a MER of 1.75, we are contemplating taking our profits before further declines, and investing the proceeds in something like exch. traded fund CLF or perhaps splitting between it and a floating rate ETF.
Can you give us your opinion. Thanks

Q: Dear Gentlemen,
I want to increase my Income PF.
Your opinion on Aston Hill VIP Income VIP.un
Any better suggestion for high income.
Thanks
Best Regards

Q: Peter and Team,
Could you please give me your opinion/assessment of AEU.UN. Many thanks,
Nancy

Q: Would like your opinion on vet verses rbn.un for appreciation and div income. Thanks.

Q: What can you tell me about TDb Split Corp (symbol XTD on the TSE). How does the stock generate its income?

Q: Hello 5i,
I have a diversified portfolio with over 60 companies and am thinking of buying Brookfield Global Infrastructure Securities Income Fund (BGI.UN). What do you think, there's not much information on the fund?
Thanks,

Q: Brookfield Global Infrastructure Securities Income Fund (BGI.UN)I am trying to look into this and am having trouble finding much on it. It has hit new highs the past 2 days and has a 5+ dividend. You haven't commented on it since just after its IPO just over a year ago. What does it do; why is it hot now.
Bryon in Elmira