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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: Steinberg offers 2 "funds"; an international equity and a junk bond fund paying a 6% distribution. I like the idea that the equity fund can hold a large cash balance at times compared to other equity funds that must stay invested at all times. Do you have any opinion on each of these funds suitability for a balanced investor looking for a combination of income and growth? Let's say a 50-50 exposure to each.
Read Answer Asked by Jim on August 26, 2019
Q: I have money parked in a GIC that will expire very soon. Needless to say that the current rate isn't good enough and I'm looking for a higher return without too much risk. As a replacement of my GIC, can you suggest 4 or 5 mutual funds (bond oriented or others - I am open !) that I can rely on for an "adequate" yield ? I am not looking for an homerun with bases loaded. I would be satisfied with a yield of 4-5 % approx. per year. I am not a fan of mutual funds showing yields that vary a lot year after year.

I really appreciate your excellent services !
Read Answer Asked by Stéphane on August 15, 2019
Q: I am being pitched on a number of RBC MF for a portfolio makeup. Can I have your analysis on the following and perhaps equivalent etfs. thank you.

RBC Canadian bond index A
RBC Canadian index fund A
RBC global bond fund A
RBC global corporate bond fund A
RBC international index curr neutral A
RBC us index fund A

Read Answer Asked by Craig on August 12, 2019
Q: Do they disclose Holdings. If so what is the latest report or reference.
Read Answer Asked by Doug on August 12, 2019
Q: I have several hundred thousand US $ in this money market----Is TDB166 covered by Canadian Deposit Insurance and if so to what amount? Also if there is a limitation to the amount covered can it be spread into several accounts to qualify for full coverage?

If not covered---- what possible black swan event could take it to zero?
Read Answer Asked by joe on August 01, 2019
Q: 2:00 PM 7/14/2019
I expect to be parking a lot of cash in our 4 TDWaterhouse accounts... two RRIFs and two TFSAs
I want to be sure the money is covered by CDIC insurance
.--------------------------------------------
The CDIC site states :
Eligible deposits are insured separately in each of seven categories:
in one name
in more than one name
in a RRSP
in a RRIF
in a TFSA
in trust
for paying taxes on mortgaged properties
.-------------------------------------------
From the CDIC website :
We insure eligible deposits at each member institution up to a maximum of $100,000 (principal and interest combined) per depositor per insured category.
Eligible deposits include:
1. Savings accounts
2. Chequing accounts
3. Term deposits, (such as GICs) with original terms to maturity of five years or less

Uninsured financial products include:
1. mutual funds (including money market funds), stocks and bonds
2. term deposits, such as GICs, with original terms to maturity greater than five years;
3. foreign currency deposits (e.g., U.S. dollars);
-------------------------------------------
The question is just what specific securities are eligible.
Do the :
1. TD "savings" account TDB8150,
2. and the Purpose High Interest Savings ETF PSA.TO
3. and the Horizons Active Floating Rate Bond ETF Common HFR.TO
all qualify or are they considered to be "Mutual Funds"

So it looks as though just <5 yr GICs, and cash sitting uninvested in these accounts actually qualify

Can you please clarify this issue and tell me just what savings vehicles actually do qualify?
Thank you.

Read Answer Asked by Paul on July 15, 2019
Q: As per Steve's July 10 question on income portfolio cash position, I would like to deploy my 12% cash to increase my dividend flow. I am light on fixed income and US exposure. Please comment on buying DYN1567 or Dynamic global div. Fund for dividends and switching my VUN holding to dynamic power American growth fund. Mid 70s couple on rrifs and lower risk.
Thanks in advance,
Read Answer Asked by Peter on July 11, 2019
Q: Greetings 5i team,
I hold these three securities (one mutual fund and two ETFs) in my RSP for global (non-Canadian) equity exposure, total 17% (approx 150k) of overall portfolio and am looking for 5i analysis and possible replacement recommendations. Among the three I have some active management which has been successful, but expensive (EDG), some div income incl 50% US (CYH), some global non-NA exposure (XIN). I primarily invest in international securities for the diversification and growth and not nec income.
I would like to:
- possibly trade off the div income (CYH) for greater international growth
- understand if the active management component is worth the squeeze (cost) for this particular and only MF I own (EDG)
- reconsider the mix of international exposure among the three securities

What combination of ETF(s) would 5i recommend as potential replacement (or sustain as is) for these three securities that meet my goals?
TY for your work

P.S. Good webinar today on Portfolio Analytics.
Read Answer Asked by Steve on July 10, 2019
Q: Can I have your opinion on Fundex Mutual Funds, We are speaking with an advisor about putting some money with Fundex through the advisor. I don't remember the particular fund but it would be on the conservative side.
Always appreciate your answers, Thank You. Peter
Read Answer Asked by Peter on June 14, 2019
Q: I had some money in Mawer New Canada Fund (small caps)
is there another mutual fund of high quality that you would consider as small cap
or an ETF for small cap (Canada)?

thanks
Read Answer Asked by Michael on June 13, 2019
Q: HI,
Do you see any problem with holding significant amounts of Mawer global balanced fund and Mawer balanced fund to provide diversification for a portfolio of canadian stocks selected from the 5i portfolios and carefully selected US stocks ?
Additional fixed income required would com from
PH&N or other suitable sources

Thanks in advance
Read Answer Asked by Leonard on June 11, 2019
Q: Gentlemen,
I have 15% PF to invest. Can you please suggest at least 4 corporate class mutual funds for income. (deferred tax for corporate account)
Thanks,
Regards
Read Answer Asked by Djamel on May 21, 2019
Q: We have been divesting ATL1880 but it still is 1.7% of our portfolio (was 20%). One reason is because I realized that its return is mostly ROC and it has a high turnover rate.
I feel that the turnover is churn to the benefit of management company. I have recently read that receiving ROC is not necessarily a bad thing. Would like your opinion in general and in relation to this fund. This is our last mutual fund holding and its fees are also higher then I think reasonable. As we need income I want to replace with something that would provide equal income so would appreciate any suggestions you may have.
Read Answer Asked by Betty on May 08, 2019
Q: Can you educate me about this company and fund? It is showing low average double-digit returns for the past 6 years. Would this include ROC or do they use derivatives? They refer to a base annual rate of return plus an amount for "profit share". What is this amount referring to? I don't need the income now but I will in two years. Is this a product I would only purchase then, use as a bond proxy now or stay away from it completely?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on April 29, 2019
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