Investment Q&A

Q: The PMIF currently shows a YTD return of about 5.85% on their website. Sounds really good for a monthly income fund. This seems to include a change in unit price value from January 1, 2019 plus monthly distributions to date (Nov 2019). However is not the real return only the annual sum of the monthly distributions (around 2.5%)? The fund drops in unit value on the monthly ex-dividend date. Seems to me just the unit distribution (yield) should be the real return value. YTD is misleading when there is such a large unit drop in December to account for year end distributions.

Q: Laurentain bank is offering a online saving account
At 3.30 %
It seems so high for a saving account
What risk do you see in using this service
Thanks for the help

Q: Follow-up to Graham's question of where to park money that is safe. High Interest Savings accounts are offering rates of over 2%. Motive's rate is currently 2.8% and is CDIC backed.

Q: I'm holding cash and gradully adding to it with dividends in case there's a market correction. What's the best place to hold these funds that are secure yet get some interest while waiting?

Q: Hi 5i,
I will be needing to spend around 50-100k from my portfolio in 6 months to one year time frame. Can you give me some safe alternatives to park this money now so it is all there when needed and still makes a return until then?
Thanks
John

Q: 1. As I approach retirement I am looking for options to at least slightly improve the dismal returns from the fixed income portion of my portfolio (currently in bond funds, PSA, GICs, returns 2.2-3%).
I am wondering what you think of market linked GICs? The 5-year TD Canadian Banking & Utilities GIC offers an annual guaranteed minimum interest of 2.75%, and maximum total return 25.00%. The 5 year Oaken GIC rate is 2.85%. With 100% principal protection, a competitive minimum interest rate and the potential for a modestly greater return I cannot see any downside to the TD product which makes me think I must be missing something.

Q: Hello 5i team, I am slowly reducing my exposure to equities for two reasons: position my portfolios ( US + CDN) for a possible recession or slowdown and also, I am 66 year old and my portfolios are 80% equities.
I have taken small positions to above bonds ETFs.. May I have your comments and also, would you recommend short/long or medium bonds and treasuries? As well, do you have other recommendations for someone my age? Thanks CR

Q: For an investor with a high equity tilt (e.g. 90% equity - 10% bonds), can you recommend one fund as a one-stop-shop for the bond component? PMIF currently has my attention.

Q: In his profoundly influential book, The Battle for Investment Survival, originally written in 1935, Gerald Loeb states: "Indeed, should some super-solvent agency agree to preserve the buying power of capital for a substantial length of time at a stated fee per annum, informed people would embrace the plan enthusiastically if they felt there was any real possibility of the agency staying solvent."

According to Bloomberg, 17 trillion dollars are invested at negative interest rates today. Surely, much of that is smart money. Is that money acting on Loeb's dictum?

Q: Further clarification of my question re bond holdings in portfolio. md stable income fund is a segregated group annuity insurance policy holding 50% insurance and 30% short term bonds. I would like to decrease my weighting to 10% or switch to another short term fund as 20% plus cash holdings is hurting my returns. What percentage do you feel of a moderate rrif should be short term bond? Thanks once again for your opinion
Tom

Q: What would you consider good alternatives to XTR (iShares diversified monthly income ETF) that Do Not use return of capital in their distributions?

Thank You
Frank

Q: Hi, Would these two funds be too correlated to each other, or too much overlap to hold for at least five years, thanks?

Q: Hi
I am looking to add a bond etf to my portfolio. I am looking for something with a reasonable yield, that is defensive with some possible growth opportunities. Could you recommend the one that fits that those criterion or if you have a better choice, I would appreciate it. Thanks

Q: Working on the fixed income portion of my portfolio, thinking of the above plus IYLD all at 4.24% except ZAG at 6.36%.
Retired and looking for income, do I need to increase, decrease or eliminate any, or add something better?
Would all of these be best in RRSP?

Q: I would appreciate your help in simplifying my RRIF fixed income portfolio. I am retired at 73, with about 55/45 equity/income split.primary aim is income and capital preservation. I hold positions in zag 10%, xsh 9%, clf 5%, pmif 5%, tlt 5%, xlb 3%, Xhy 2.5%, srln 2.5%, rbf 1340 4%, mdl240 23% and (sadly) preferreds HPR 3% vrp (US) 1.5% .the rest is cash type investments. I would like to switch the canadian PFD to all US: switch xlb for more TLT. I am gradually decreasing mdl240 which has to be withdrawn overtime for another more flexible short duration ETF. Keeping either xhy or srln which ever you feel would improve the porfolio. I would appreciate your thoughts of these etfs, and percentage allotments to them If there are better choices please share your insight. Please use the number of credits appropriate. Thanks very much Tom

Q: What can you tell me about this company? I have held it for about 10 years in a registered account. Not sure what the yield is either. Is there another similar bond fund that is better?

Q: hello 5i,
I have generally done well with your stocks but I bought tlt:US only a couple of weeks ago. I am already down 4 percent. I imagine I bought at a bad time because it has gone up for the year. Now stock markets are moving up and bonds, I guess are moving down. I am at a bit of a loss regarding how to proceed with this. I suppose I should buy something like gst's with fixed income to make sure i don't lose money. so, the question is what to do with tlt now. Do you still consider it worthwhile in the current situationÉ
thanks

Q: Good morning,

Looking for your opinion on the most recent issue of 5.25% , Dec/2024 debentures ?

Thank you.

Q: Another re-balancing questions as my “fixed income” levels are about 20% below where they should be .... as a retiree. And am holding 20% of my portfolios in cash.
My question is regarding XRB and if that would be an appropriate diversifier to a bond portfolio consisting mostly or your previous recommendations: XLB - CBO -XTR - TLT - CBO and VSC.
At some point interest rates will go up and in the meantime XRB has a 1.86% yield which at least beats cash.
Buy? Pass on this - at least for now? Buy something else as a fixed income diversifier.
As usual thank you for your any guidance you can provide here.

Q: Within fixed income today, is it wise to move from longer term bonds into floating rate bonds...seems the longer bonds are beginning to slide while floating rates bonds are holding firm. both pay similar yields. thanks as always.