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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: Lester Asset Management is a small wealth management Company. They have made numerous appearances on BNN. For someone who wants a "No Fuss" Canadian portfolio of One or two ETFs like VCN & XHT and a small/medium fund like Lester Canadian Equity Fund, how would you rate the Fund & the company? Would you recommend another fund in the small/Medium class instead?


Thanks Team
Read Answer Asked by Warren on April 03, 2017
Q: Hello Peter, Ryan and 5i team. I am a long time holder of Mawer New Canada Fund. I purchased a substantial (for me) position in the fund for my RRSP many years ago before it closed to new investors. While I understand you are not fans of mutual funds in part due to the fees they charge - the fee on MAW107 is 1.4%) - this fund has consistently performed extremely well. This single fund currently makes up 14% of my self-managed RRSP portfolio, a 50/50 mix split between no-load low MER funds and individual North American small and large cap stocks. Is the 14% that this single fund occupies in my RRSP excessive in your opinions, or should I stay the course?
Read Answer Asked by Asher on April 03, 2017
Q: Good afternoon 5i,
I am comfortable with the individual stocks in my RRSP...thanks to you.
When I cannot complete a full DRIP share, cash accumulates. I like the idea of sliding that in to a mutual fund . I am considering the Royal SERIES D. Canadian Dividend or O'Shaughnessy U.S. Value or Life Science & Technology. What do you think of this strategy? Are the MER's of 1.23% or 1.39% too high? Any other recommendations? Long term holder. Thanks for the advice. Paul
Read Answer Asked by Paul on March 31, 2017
Q: Hi 5i Team,
Could I have your opinion on my last remaining mutual fund, Sentry all cap income fund (NCE1032). I hold positions in most of the companies in both your model and income portfolios and was thinking of maybe selling this last mutual fund. With the proceeds I was thinking of adding VGG but would miss the larger distribution offered by Sentry all cap fund. I am retired and rely on my dividend stream to supplement my company pension. Your advice would be appreciated. If not VGG maybe you could recommend something else(I also have a large position in CDZ). Thanks. Mario.
Read Answer Asked by Mario on March 31, 2017
Q: Recently we were surprised to see that my 86 year old mother in law sold an etf and purchased Manulife simplicity portfolio FE (568). I say surprised as the broker is well aware to discuss financial changes to her account with my husband and ETFs were specifically chosen to avoid buying mutual funds. What can you tell me about this fund and does it generate monthly income. It looks like the broker is selling shares every month and sending her a cheque. I do not see any info around fees (which I thought had to be disclosed under the new rules) on her monthly statement. My husband is meeting with the broker so any info you can provide or questions he should ask would be appreciated.
Read Answer Asked by Maggie on March 28, 2017
Q: Hi Team,
This question is about investing in a gold ETF. Sprott Physical Gold Trust (PHYS) I believe is a closed-end fund. I read this affects its ability to issue new shares so it cannot effectively track the price of gold. This means shares could trade at a premium to net asset value and not truly track the price of gold. Is that true and if so, is it a concern? Thank you. Michael
Read Answer Asked by Michael on March 08, 2017
Q: The children and I have been debating what a reasonable long-term rate of return is if an investor held a prudently diversified portfolio and was looking at total returns with dividends reinvested, annualized over a period of 20-30 years.

My suggestion was that 10% net of fees would be exceptional and worth every rain dance.


What say you wise sages on this matter?

Thank you
Read Answer Asked by malcolm on March 08, 2017
Q: I understand your negative opinion of (most) mutual funds due to
high fees and human factors. I've found a few actively-managed funds that appear to "earn" their high fees by delivering superior returns over time periods up to 10 years.

Two examples: Fidelity Special Situations-FID1298 and Sentry Small/Mid-Cap Income-NCE721. Morningstar gives both 5 stars.

Comments please on these two funds and on the broader idea of willingly paying higher fees for higher returns.

Cheers, IslandJohn
Read Answer Asked by John on March 02, 2017
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