Investment Q&A

Q: Hi, Northview Fund (NHF.UN) is doing a recapitalization transaction where the portfolio is being acquired and becoming a $2.7 billion tradional multi family REIT. The deemed transaction price is $15.06 and the stock has been drifting lower, I get that this can be sector specific, but this is not a well followed company, I am wondering if am I missing something on this transaction and why would this be drifting to the $7's. There is a share consolidation coming but I believe it is post transaction.

Q: I hold the listed equities/ ETF in my 14 year old grandson's RESP account. Given thee current environment what changes would you make in preparation for the next 4 years? I consider HFR is cash available.

Woule you consider adding some US listings for diversification? Given some current thinking regarding the US dollar would it be wiser to add Cdn listed ETFs of US companies? . What would be the tax implications of adding US listed companies that do not pay a dividend? Any paperwork?

Thanks very much. Take whatever credits are needed.

are there any stocks in the account that you would replace?,

Mike

Q: RESP with 5 years until first withdrawal. Currently only holding is VEQT and approx 30% cash. Looking for some stable compounder companies to sweeten the total return. Please suggest 8 ideas. Thank you

Q: Good afternoon,

I am starting a RESP for our grandsons: one born in 2021, the other born in 2023.

To maximize the CESG grant I contribute just over 2500$/year.

How would you suggest to invest the funds ? 2 or 3 index funds?
Would you include a NASDAQ -100 index fund such as XQQ, ZQQ or HXQ or even XIT (Canadian tech ETF)?

I would appreciate your guidance.
Kind Regards

Q: Hi,
Thanks for all your solid advice over the years as our kids RESP has done great. Our kids are currently grade 8 & 10. I have sold/ trimmed some of their holdings to create 10% cash (20k). I am planning to put the 20k into CASH.TO until I can find a RESP eligible GIC at a higher rate. How do you recommend I start unwind the portfolio? Create a percentage of cash each year? We will not be making any more contributions as we have now maximized the government grant.
Thanks a bunch,
Kerri

Q: May I have your thoughts on PLD.

Q: My Grandsons are 3 &1 old. They have 43% ZUT, 35% VFV, 21% ZWB and 0.9% BTCC.in their present RESP. I am looking for thoughts for the coming year deposit.
My thought are add to VFV (not enough now to reinvest),add a Reit ETF like TGRE or add an telecom ETF. I can not find a telecom ETF in Canada so maybe an alternative would be T.
All thoughts would be much appreciated.
Thank you

Q: Looking at the price performance of this name the decline appears to have started around the time an increase in interest rates was contemplated since when the price has halved and the yield gone from around five to about 10%. Listening to the conference call the recent shortfall appears to have been problems with their Prospect investment, against which management says they should receive some or all of the moneys owing, probably in '23, maybe '24, and that the future for their facilities are buoyant - not that anyone would fault management for championing their business. Over the years, and they have been almost all low rate years, their unit price has not dropped below 10, or 9 if you go back 20 years save for a brief interlude in ‘09, since which time they have presumably grown.

What has been your experience with other health care REITs and what outlook would you assign to the sector as well as for MPW

Q: I have an RESP for my nephew who is in grade 12 now and attending a college in the fall. His parents are not great savers, and I don't have children, so I'm fine to subsidize his education. I currently hold only CDZ and TD in the RESP and would like to add some additional cash soon.

What's your advice on how to proceed? Do I add to one or both, or would I be better to invest in CASH or PSA.

Thanks,
Robert

Q: Hi there. I am looking for a dividend growth company or ETF to add to our kids RESP with a 10 year time horizon. What do you recommend from the 5i Research universe to initiate a position in now. After the initial purchase, I intend to dollar cost average on an ongoing basis. I already have Telus, Abbvie, and BMO in two other accounts and those are my highest dividend payers.

Q: In a previous question you recommended ZSP be held in a RRSP so as to avoid the US withholding tax on dividends. Does the same tax rule apply to a RESP? If not & there is a US withholding tax on dividends, is it still worth holding ZSP in a RESP. Thanks … Cal

Q: Is there a way to avoid the foreign withholding tax on US dividends?

Q: I am looking to start a RESP for my one-year-old grandson. Can you please suggest a suitable investment portfolio for an initial $5000 investment. Could you also recommend a strategy for investing future deposits to the plan.

Thanks.

Q: Hi Team,
I am looking for your opinion. I am thinking of adding 5k to my kids RESP after todays ugly selloff. I am banking with the ATB and most of the resp is currently in the atb compass growth fund. My question is...do you feel that I am best off adding to this fund, or buying an idividual stock? As far as stock I was thinking stable growth with a dividend. I had either BNS or SLF in mind. What are your thoughts? Or any other better suggestions as opposed to the ones mentioned? I don't plan on using any funds for at least 2 years. Thanks

Shane.

Q: Questions on RESPS. My kids are 5 and 3 so I have their RESP money in VGRO, right now. Plan is to move it to VBAL when they get closer to needing the money. But then I assume I have to de-risk it even further later on. What would you suggest for this eg. GICS and how many years out? I know this is years out, but just want to have a plan.

Q: My daughter has a Family RESP Account for our 2 grandaughters.
They are soon to be 16 and 13 years young.
Both, at this stage of the education game, appear to be headed to college or university.. I contribute monthly into the RESP plan for my grandchildren.
The original funds were invested in a Target 2025 mutual fund RBF1048, recently rename to RBF5731. This is showing an inception return of 4.4%. Since 2016 I have been investing this thru my Direct Investing Account. My present portfolio mix is about 98% equity Stock and is showing a return of 28%, since inception.
Finally to my question. Since the oldest Granddaughter will be attending post secondary education in the next 2 years and little.
What is your suggestion on how to split the total amount? Should I start investing more in fixed income?
Any other suggestions you have for a situation like this?
Thanks team,,,, your are my number 1 in finance.

Q: Hi,

Should one treat an RESP with a child who is 17 years old similarly to someone would view their nest egg when only a few years from retirement?

In other words, I have an RESP for my nephew as his parents don't have the financial wherewithal to assist him with schooling, which will start in about 1.5 years. Should I be switching to more conservative investments with his schooling approaching?

Right now, I really just have CDZ and TD. Would you keep those?

Thanks,
Robert

Q: Hi 5i Team,

I have held a balanced Canadian Couch Potato Portfolio with the above etfs in my son's RESP which i started when he was born in 2009. The portfolio has done pretty well (in my books at least) at 8% annual return. I am now looking at a 6 year time horizon for when he will need to begin to draw from the RESP. I am thinking of starting to rotate toward more conservative holdings as the timeline for needing the funds draws closer. Under "normal" circumstances from what i have learned this would mean moving more into bonds at this point but I am having trouble believing this is appropriate in the current market. With interest rates and inflation both rising i am wondering if low debt dividend stocks might be a better bet to hold onto purchasing power in this time frame? Maybe something something like CDZ vs XBB? I know you can not suggest specific portfolio recommendations but looking for suggestions/best bets for maintaining value and keeping up with inflation over this time frame.

Thanks,

Q: Greetings 5i team,
Marcel asked a question about contributing $10k to his granddaughter's RESP. If he wants to maximize the juicy gov't grant, he should first review the rules under which the grant is awarded; that large a contribution may not all be recognized for the grant, if made in a single year.
SP

Q: Good Morning
We have a approximately 10k that we would like to contribute to our Grand daughters RESP. We would like to do so with stocks and have about a 10 year window before the funds would be needed. Could you suggest 3 conservative stocks that would be appropriate for this type of account with one additional stock having a more aggressive approach?
Thks
Marcel