Investment Q&A

Q: Hi there, I am a big fan of your Balanced Equity Portfolio. I like the more growth oriented names in it and was wondering if you were to swap out the less growth names for names that have a little more risk but for higher return, which would you swap and for what names? Thanks!

Q: It's time for my annual RRSP contribution; I follow the Balanced Equity Portfolio for my RRSP.

I am currently underweight in AEM, AC, BYD, CAE, CCL, KXS, MG, SHOP, SLF, TOI.

As of today, which three or four of these should I add to?

Thank you!

Q: Thanks for your updated flash reports. I like the format. You mentioned TOI as a buy-and-forget stock.

I presume this means if you forgot you owned the stock and came upon it years later, these are the stocks you think likeliest to have appreciated nicely years from now if you just held on through the ups and downs.

With lots of volatility on the horizon (threats to global order, US internal order, pandemic, inflation, climate change), buy-and-forget sounds attractive.

What are your favourite buy-and-forget stocks in Canada?

Thanks,

Chris

Q: Hi Peter and Team, Happy New Year!

I have been following the Balanced Equity Portfolio as close as I can since the first day it was available in 2013. Congratulations on the great build and success with that portfolio!

Over time, I've had some deviations and don't have exactly the weights you have per the last report. I keep adding cash to the investments every month and have also spend some time building up some ETFs to reflect the "rest of the world."

My question is this - let's say I can top up weightings on BE Portfolio names, which ones would be the most buyable today based on current conditions and outlook. I am long term (like I said, held the BE Portfolio since inception and a number of the names I owned before the BE Portfolio was created), and want to keep making the annualized rate of return it's been delivering.

The names that I have the biggest gap to in the BE Portfolio are CSU (rode from $214 to $1650 but had to sell to fund a home purchase and never bought back and its kept going up) and WSP (just had less cash at the time).

Original weighting target has been 5% in 20 names.

Q: What looks most attractive to you today in the BE portfolio? Thanks again.

Q: Hi Peter and Team,

We have and love the Balanced Equity Portfolio for Canadian stocks. Have you considered adding an international Balanced Equity Portfolio that 5i Members could "bolt on" to the current one to serve as their international type exposure?

Thanks,

Marc

Q: Good morning 5i.

I've perused the Q&A section which has been extremely helpful. I'm looking to build a concentrated portfolio with growth in mind, but also a few names to balance out volatility. Based on what I've read, I was thinking of starting equal weights in the 12 positions below.

CSU, TOI, SHOP, DSG, KXS, NVEI, BAM, GSY, TFII, BYD, WSP, ATZ

What are your thoughts on the the blend of companies and would you suggest any adjustments?

Thanks for your time.

Q: Based on the companies contained in the two portfolios above, which of them are you most impressed with, having gone thru the pandemic, which would lead you to expect even better results as the economy moves past the stimulus provided by the feds?

Q: Hi 5i Team,

I have been trying to manage close to the BE Portfolio since the start of 5i and I want to continue.

I have some weightings I could top up now and I want to check if we should be adding to these today given recent run ups or if there are other names in the BE portfolio you would suggest as better adds today?

The names I was looking at first were PBH, TFII, KXS, and SIS but would like to hear if there's other names in the BE Portfolio we should be more excited about for new money today?

Q: I follow the Balanced Portfolio & am wondering why you continue to hold GUD in the portfolio. In the portfolio it is down 47%, since Dec 2020 the price has remained at its low & the stock pays no dividend. Does 5iResearch see a favourable turn around in the near future.
Thanks … Cal

Q: I would like to invest a portion of my RRSP funds in the balanced portfolio I've seen here. I have a 15-year time span until I'd possibly need to begin relying on these funds. I understand that we are all in unique circumstances and that you don't wish to provide specific advice but could you give me some overall guidance on how one should be integrating the portfolio into an investment account? More specifically, should I purchase a position in all stocks at the same time or slowly adding one stock at a half/ full position per month or if they seem to be retracting in price. I thought of adding a new holding on a regular basis but I was concerned that I would not have the complete industry exposure until all were purchased. Is there a more prudent way of doing things in your experience. Thanks in advance.

Q: Can you please advise which one would you consider as a value stock as of today price from your Model, Growth, Income portfolio?

Thanks for the great service.

Q: New to the site here. Why are there companies in the model portfolios that are not rated? If you are recommending them why wouldn't you rate them? Thanks!

Q: I follow the Balanced portfolio for my RRSP; it's time to make my 2021 contribution. My goal for this account is steady, long-term growth while accepting moderate volatility as it is all-equity.

I have a small amount of TOI from the CSU spin-off, and am contemplating adding to it to bring it to a half-position, would you endorse this move? If not, then I would close my position since it is quite small at this point.

I would then have enough money to add to maybe 3-5 additional positions, which of these would be good to add to right now?

AEM, AC, ATD.B, CCL.B, ENB, GUD, MG, PKI, SHOP

I am fully weight/overweight the other Balanced Portfolio holdings so would rather not add to those.

Please deduct as many credits as required. Thank you.

Q: Some help for Paul asking for ideas to invest in his TFSA. In February (13)?, 2017, 5i answered a request for the top 10 picks harvested from the 5i portfolios. They were as follows: GSY, SHOP, SLF, WSP, GUD, OTEX, SIS, KXS, PBH, and one other I lost track of. Over the 4 years the return, if still held, would be +280%, but even without SHOP or GUD, the return is a respectable +96%. So for Paul and me would you do it again from current portfolio holdings. My New Years resolution is to pay more attention to your picks...........thx. Lionel

Q: I am light on Industrials and heavy on Tech. Looking to the Balanced Equity P/F for inspiration I see a 29% weight (about my weight in Tech) with 9 names included, twice the recommended weighting. I know AC was recently added but are there one or two names you especially favour, and one that may be on the way out or due for reduction?

On a separate tangent, is there a reason this P/F has no representation in Communications Services or Real Estate?

Q: Hello team,

A glance at the yield in the BP last month indicated 1.66%. Obviously that number would have been higher had CAE, GIL not cut their dividends and Suncor reduced theirs.

Is this yield in line with the guidelines that 5i uses for this portfolio? Or does one need to adjust to the new reality post pandemic of lower rates for longer?

Additionally, the BP currently has 7 stocks with no dividend and 3 others (Boyd, CSU, ATD) with a smallish dividend. While I get that these stocks would be considered growth stocks, at what point does one get concerned with the likes of CAE, GC, GUD, SU and GIL who have seen a sustained destruction in share price? Thanks in advance.

Q: In my RRSP, I follow your Balanced Equity portfolio. I would like to add more US exposure, and for now, intend to do so buy selling some of my Balanced Equity portfolio holdings and purchasing either VIG or VGG. Of these, which should I sell to do so:

ATZ, AEM, ATD.B, BAD, BYD, CCL.B, CAE, ENB, GIL, GC, GUD, MG, NFI, PKI, SLF, TFII, WSP

Please disregard sector, geographical, and asset class allocation considerations in your answer. Thank you.

Q: I’d like your opinion on where certain BP holdings would be best placed in TFSA as opposed to a cash account, and if it makes sense to shift low growth stocks to the registered account and higher growth to a TFSA.

I’d like to transfer approx 3 stocks (lower growth/dividend payers -PBH, ENB, SIS from my TFSA into the cash account in December. In January I plan on transferring the same value amount back(higher growth/lower DIVS - CSU,ATD,BYD, KL plus $6000 into The cash account.

Would this be in line with TFSA rules and would it be beneficial to me to do? And what account would you buy NFI In? Still waiting on better momentum before repurchasing.

Q: Hope you are all staying safe and sane.

I have about 20% of my RRSPs following your Balanced portfolio, the rest in cash. I would like to deploy most of that cash in the next year. Which names would you start adding to first?