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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: 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
Read Answer Asked by Gerald on October 19, 2021
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
Read Answer Asked by Gordon on August 03, 2021
Q: MBN What does this company do. Is it profitable. What is the outlook going forwards? Thanks.
Read Answer Asked by Francis on July 13, 2021
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
Read Answer Asked by Shyam on July 09, 2021
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!
Read Answer Asked by Duane on April 22, 2021
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.
Read Answer Asked by John on April 15, 2021
Q: Hi 5i,
Further to my previous question about return of capital, you mention that some investors, over time, can see their adjusted cost base go to zero as result of return of capital. What does this signify, that you now own it for $0 cost. Would the investor expect share prices to be severely impaired?
I am trying to decide if one of these health funds might be a lower risk way to generate some stable income while providing lower risk to principal.

Thx
Jim
Read Answer Asked by jim on March 25, 2021
Q: Hi 5i
A question was recently asked concerning the "return of capital" required to support the high distributions of FHI.

What percentage is required for HHl,and LIFE ?

What is long term net effect of "return of capital" on the share price of these funds? Does it continue to fall?

Does it ever get to a point where all or most "capital" has been returned ?
Just looking for very general understanding if return of capital is good or bad.... or maybe not an issue?
Thx
Jim
Read Answer Asked by jim on March 25, 2021
Q: What are your thoughts on this income fund, I’ve held it for over a year and see its the price has been climbing this year, up from a price in the low $10.00 range last year.
It provides a very healthy yield (+10%) and was a Gordon Pape suggestion over a year ago at this price level. Is it a good steady fund to own for income in one’s RRSP?

Thnx
Read Answer Asked by David on March 24, 2021