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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: Hello 5i team

Could you give me your opinion on the BMO ultra short bond ETF, ZST. The bonds held all mature in less than a year and yet its distribution yield is 3.96 % It has been distributing at about this rate since it was formed in 2011. I looked at the holdings and I couldn't imagine that these companies would run into trouble in the short period they hold the bonds. ( Of course they will have to be constantly changing their holdings because if the short term nature) It seemed very safe to me but am I missing something? I am 76 years old with a portfolio of about 2.5 M and I am trying to hold enough cash to cover 3+ years of the rent for my wife who has gone into longterm care. I would like to get a little interest for this money and I wonder whether this would be a good candidate for some of these funds.

Ross
Read Answer Asked by Ross on December 18, 2015
Q: Good morning,

With the increase in the interest rate by a .25% today and with a plan to increase by the same amount in each of every quarter in 2016, will this affect BCE and Telus since they are companies that are, usually, negatively affected by an high interest environment? I own both of them, BCE 5% and Telus 4.4%. I own them for their safety and increases of their dividends. Should continue to hold them?
Thank you

Paul
Read Answer Asked by Paul on December 18, 2015
Q: I am sitting on dead money in exchange traded funds and gold. Do I sell and lose a lot of money to reinvest or do I attempt to ride it out? My only source of income is my investments.
Read Answer Asked by Neil on December 18, 2015
Q: Thank you for your work, this has been a difficult year. Hopefully things will settle down next year.
As tax loss selling draws to a close, what do you see as compelling value.
Read Answer Asked by Deborah on December 18, 2015
Q: In view of US Fed plan to gradually increase their bank rate to 1.375% by end of 2016 would you pls advise a few TSX stocks in addition to the above that would profit by that scenario. I already have NFI also.
( Thks for ESL & SJ by the way). Happy Xmas to all you guys.
Read Answer Asked by Arthur on December 18, 2015
Q: Hello,

This may be out of scope, but I would appreciate your opinion on WNDW.

Thank you for the great service.

Tim
Read Answer Asked by Tim on December 18, 2015
Q: Do you think the latest news in their drug approval is any reason to start a small speculative position.
Thanks
Read Answer Asked by David on December 18, 2015
Q: Two Harbors appears to be a solid buy right now. What am I missing if anything?
Read Answer Asked by george on December 18, 2015
Q: Hello.

I've decided to change my investing strategy for 2016. I'm investing in a combination of Canadian perpetual and rate reset preferred shares and a small portfolio of yielding blue chip CDN stocks.
I'm having trouble finding resets that I actually like. There are a handful that seem to be bargains but most of them reset in the following 1 or 2 years. I'm looking for ways to hedge against rising interest rates should they increase over the next 5 years. Could you provide a strategy of a particular security that would accomplish this. I was thinking of owning a large position in a 1 to 5 yr term bond ETF or shorting one of the more liquid preferred ETF's as a hedge. Neither idea I like very much. Your thoughts???
Read Answer Asked by nicholas on December 18, 2015
Q: You have previously discussed allocating higher weightings to particular companies with strong growth prospects, a strategy which I like to employ in my own portfolio (i.e. I am comfortable holding as much as 20% of my portfolio in a single name). I have favoured FSV and XTC for the past few years, and have seen great results. I am looking to take profits and bring those two positions down from around 35% of my portfolio to 20% (10 each). Currently DH looks like an attractive candidate for an overweight position of 15%. Is this a company you would be comfortable overweighting heavily? Or are there other companies you would prefer at the moment (maybe 1-2 others)? Risk tolerance wise, I am looking for aggressive growth, and can hold for as long as 5-10 years.
Thanks
Alex
Read Answer Asked by Alexander on December 18, 2015
Q: In this falling oil price environment, why does Huskey stock not react more like a Suncor rather than some mid-tier oil producer?
Is Huskey not insolated to some degree because it has downstream operations that should help the balance sheet. Is this all about the lack of a cash dividend payment?
Huskey stock has fared worse that many smaller producers.

As always, thanks
Read Answer Asked by John on December 18, 2015
Q: Hi,

Why is it that BEP is rising despite another down turn in oil? And why is it that in a previous question you preferred ENB to BEP? They are such different companies. Finally, would you recommend either of these companies now for a two year hold?
Read Answer Asked by Graeme on December 18, 2015
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