Investment Q&A

Q: You currently have > 9% cash in the Income portfolio. In the past you have indicated you prefer to be mostly invested. If my memory is correct, your responses to past questions have referenced the Income portfolio being up x% so far this year (now 13%) vs the targeted 6-8%/year, so you are taking your time to find appropriate investments. Respectfully, I would counter with the multiyear performance #s of 2-5%/year (quite a bit below the 6-8% target), so wouldn't you want the cash to be put to work? I know you just added a new 3% position on Oct 8.

So, I am trying to understand...is the 9% cash level is more of a "strategic" allocation (waiting for a pullback...market timing, which I know you don't believe in), are you still undergoing research for the right investment or is there some other reason?

Please note I am not criticizing. I have loads of respect for the 5iR team and have way more confidence managing my own portfolio knowing 5iR is there to provide guidance. I am just trying to understand the purpose for the cash in the Income portfolio. I too have roughly 7% cash and am struggling to find the "right" investment and put it to work.

Thanks...Steve

Q: I'm just wondering why you don't have any Reits in the income portfolio?

Q: Hi
What in your view are the 6 most promising stocks in your growth portfolio and why?

Also, out of your income portfolio, what are the 6 highest paying dividend stocks, and frequency of payout?

Thanks!

Q: Hi, I was just curious how your income portfolio works and how often dividends are payed out? What kind of monthly income would you see with a similar spread starting out with about 40K?
Thanks

Q: I know in the past you have tried to keep your cash allocation down to a minimum. The Income portfolio is now at 10.9%. Any plans to top up current holdings or to add new positions? Or is the current cash allocation being created on purpose?

Thanks...Steve

Q: Wondering if you can confirm what Benchmarks are used for the 5i Model Portfolios.
I may be wrong but from passed members questions I gather you may use XTR for Income, XCS for Growth. What about Balance Equity portfolio benchmark?
Many Thanks
Frank

Q: I just noticed that the May income portfolio is more than 10% in cash. Is it normal ?, or it due partially to the sale of Valener, ?, if not, are you setting aside some cash for future deployment in a market downturn ? , what would you buy then (or now) ?.
thanks

Q: I hold aa good amount of your income portfolio and about 50% of the balanced portfolio. But my u.s. exposure is only 12%. Would it be a good idea to use xei for Canadian dividend exposure as I require about 4.5% to live on in my outside accounts and sell down some of the balanced fund and invest in vun to bring my exposure higher. Also, what percentage of my total portfolio would you suggest in u.s.exposure...Thanks for the great service...Gene

Q: you'd just respond to martin on benchmark of income portfolio is XTR.
My sense is that not a good benchmark with more than 45% of fixed income product (xfr, xhb) plus 4% HY and 4% pref (reflecting well your investment in cpd and xhy). Please comments

Q: Your income portfolio has very interesting companies. My question is which of these companies would be considered dividend growers and is it true that dividend grower over time have outperformed growth stocks...thanks for the great service ...Gene

Q: Hello Team,
I a significant amount of cash to deploy in my RRSP and also in my TFSA.

I would like to build a mixed portfolio (50% income/50% growth) and would like to know what would your best 4 picks from each categories (income portfolio/growth portfolio) at this moment.

Would you have the same picks for the RRSP and the TFSA.

Thanks in advance!

Michel

Q: From your income portfolio, what are the top three you would consider a good buying opportunity today?

Q: I hold most of the income portfolio in a cash account to supplement my retirement income. I have equal weightings of most of the holdings and am beginning to double up on them as more cash becomes available. Could you suggest which three holdings would you double up on at this time? Thank you.

Q: Hello- we are plan to transfer our rrsp from a BMO managed mutual fund to the stocks listed in your income model portfolio in a self-managed rrsp.
Would it be reasonable to plan to update the income model once per year or would it require constant tweaking.
Thank you

Q: Can you please identify if any 5i stocks in your 3 portfolios are "zombies" as defined by the following quote from Cresat:

" Crescat calculates that about 80 percent of Canadian non-financial stocks have been cash-flow negative in the past 12 months, which he measures as cash flow from operations minus capital expenditures.

That may be inflated by the the large numbers of “zombie” companies on Canadian stock exchanges, which the Organisation for Economic Co-operation and Development defines as those 10 years and older and whose earnings aren’t high enough to cover interest payments on their debts. In a September study, Deloitte found 16 percent of public companies on the Toronto Stock Exchange and its sister Venture Exchange are considered zombies, compared with 10 percent globally.
Costa said even if he excludes energy and materials stocks, 70 percent of Canadian stocks have still lost money on a free cash-flow basis. If you consider only non-financial stocks with a market value of more than $100 million, the share is still more than 50 percent, he said."

Q: Team, if you we're trying to create a dividend growth portfolio of 8 Canadian stocks what names would you include for a long term hold.

Q: Is the income portfolio designed to ride out a recession without major changes?

Q: Can I get your thoughts/comparison with your income portfolio and the BTSX strategy.

Q: Hi 5i,
My current strategy is to have a hybrid approach so that I have some of the income portfolio holdings, some growth and some from balanced. In addition I have taken the same approach with US holdings and UK/Australian (to a lesser extent) so my version is diversified (both by sector and geographically, well hopefully) and I think of it like a balance equity portfolio.
Generally how does this (balanced) approach compare to the income or growth portfolio which seems more targeted in its purpose. Are there persuasive arguments to follow one style over another?
Thanks
Mike

Q: Why using the IShares Diversifieed montly income ETF as benchmark in order to determine the total returns of the Income portfolio,just curious how the portfolio would graphically compare with a broader S&PTSX.
We hang in there and collect divi.
Thank You for your soothing stand.
Daniel