Investment Q&A

Q: Hi Team,

Considering your stock and ETF and Unit selections for your most anticipated Income Portfolio,
Starting with the $100,000, which selections out of the group would you purchase in a Registered account, and what would you choose in a non registered acct?

Thanks

Stephen

Q: Peter, I am interested in Valener in the income portfolio. Could you please tell me more about the company. Growth, safety of dividend, Good management? Thanks Ken

Q: Valener is in the income portfolio. There is no report on it and nothing recent in Q&A. Its trading below book and looks to be a buy.Would you just expand a little on your thinking...Thanks.

Q: Hi Peter & 5i: It will be very interesting to see how things go with the Income Portfolio and particularly to see what changes, if any, may be made as time passes. To that end, I am wondering if you have in mind clear principles for managing the portfolio first with respect to the relative position sizes but also with the weightings between the fixed income side (bond ETFs), the common equity holdings, and the hybrids (pref shares & REITS). The original Model Portfolio had the virtue of keeping things very simple in terms of 20 positions at 5% each, with the suggestion that periodic rebalancing should trim positions that got much over 6% and look to re-allocate to positions that had become relatively smaller. The new Income Portfolio has position sizes ranging from 7% (ETFs) to 3% (Telus). Obviously the ETFs are diversified holdings in at least some dimension, so I’m not suggesting that 7% is too much. But what winds up being your flags for rebalancing? Also, with both T and BCE in the portfolio, to what extent does sector balancing come into the mix? Thanks, as always!

Q: Hello Peter, Ryan et al,
In your income portfolio you mention Loblaws. Could George Weston serve as a substitute? I ask because I already have that. The dividends don't matter that much. Once again, thanks for the excellent work

Q: Thanks for the Income Portfolio and in pdf format. What does "P & L" stand for in the column heads? I take it these differ from the lower left 'returns as a per cent'. Thanks.

Q: Hi Ryan and Peter: I have a question about the income portfolio. You include FLOT which has a trailing dividend of 0.4%. I presume therefore that the role of FLOT in the portfolio is to preserve capital, and it does seem to have done this well through the recent downs. But it seems to me that HFR (Horizons actively managed floating rate ETF) does this just as well while posting a trailing payout of just over 2%. What am I missing? Roland T.

Q: First thanks for having an excellent service!

In your new Income portfolio your first item is FLOT which is US. Aren't there dangers in holding a US item in a CDN portfolio? Aside from the exchange issue, which I have been burned with in the past, aren't there tax implications with the new IRS rules concerning income and agreements as well as estate filings required to liquidate the holding if the holder passes away?

If someone didn't want to hold a US holding in the portfolio would you recommend just changing the weighting or have an alternative?
Thanks again!

Q: Hello 5I team,

Looking at the ajusted model portfolio am I correct in thinking that you have changed the sector asset allocation? For example my calculation shows 25% in tech, 20% in financial and 0% in healthcare.
Is this correct and if so is there a reason behind this change.

Q: Hi Peter. Any comments on Alta Corp's recent down grade of Surge? Thanks.

Q: In the income portfolio CVD has a yield of 4.9% but on the ishares website the YTM is 2.29%. What would be the yield if I purchased this product today. Thank you Ron

Q: Hi 5i team,
Please give some background in building your income portfolio with regard to
a) WSP....an interesting choice considering your favorite is STN
b) SGY selection over so many good oil companies
c) FLOT with 0.4% yield as oppose to GIC

SPB, VNR and ET are excellent surprises we do not read regularly

I will gradually adopt to your income portfolio. Great work as usual, thanks

Q: Hi there,
I am following your model portfolio with some of my own picks. I already own SJ and SLF. Therefore am debating on continuing to hold my full position in TOU. Do you still feel there is a lot of upside to TOU? Thank you for such a wonderful service it has helped me tremendously.
Kerri

Q: I know you believe a portfolio should not hold more than 20 names, at least i think you believe that.
But if your managing 2 or 3 million dollars in one portfolio, do you still only hold 20 names. In other words my question is no matter the size of the portfolio do you always hold only 20 names.dave

Q: Hello,

Would you ever consider doing a US Equity Model Portfolio?
Many of the questions I have asked have been about US companies, and the advice I received has been amazing, my returns have been incredible.

Q: Hello,
Which stocks out of the new Model Portfolio would you consider high growth?
Thanks

Q: What would be your USD equivalent for XHY?

Q: Please recommend the strategy to transition old portfolio to new. Do I sell the removed companies today and replace today or do I sell 1/2 positions and buy 1/2 positions over the next 4 weeks?

Q: I have reviewed the income portfolio with great interest. My question has to do with three of the picks that have a relatively low dividend - ENB, L, SLW. From my previous questions on this subject, I know that these are quality companies with generally growing dividends and therefore increasing share prices. But if you are trying to generate income, it seems that you would have to sell some of these stocks from time to time to generate that income. Why not find other companies that generate larger dividend returns and still provide some growth potential?

Thanks for the learning opportunity.

Paul F.

Q: Hi Peter & Fantastic 5i Team,

I would also like to add my support to David's request for the same reasons he has mentioned.

I am waiting in anticipation for your GROWTH portfolio! PLEASE, PLEASE, PLEASE!

Immense thanks and gratitude for all you do for us.
Kind regards.
Francis