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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: I am a retired, conservative dividend-income investor with a company pension, CPP, annuities, Fisgard Capital and the following equities:
1. 17% Mutual funds (RBC Cdn Equity Income, Sentry Cdn Income, Sentry REIT)
2. 10% ETFs (ZLB, XIT, ZWE)
3. 41% stocks (listed above)
4. 32% fixed income (annuities, Fisgard, but not including my pension nor CPP).

I plan to reduce my Sentry Cdn Income holding from 9% to 5% and purchase ZWC. The benefits would be a) saving $1k in hidden MER fees, b) receiving an extra $1k in dividends and c) a better asset allocation. I like the covered call strategy that ZWC provides, as well as the 30 companies inside the ETF.

Question = is this the right ETF product? Are there other Canadian Covered Call ETF choices that offer this diversified asset mix that I should consider? Are their other ETFs that have slightly less financials, less utilities, and more industrials that would result in a better asset allocation for me?

Thanks for your help...Steve
Read Answer Asked by Stephen on October 05, 2017
Q: Dear Gentlemen.
I want to add 2%+ on my healthcare sector. I Have GUD 1.5% &IBB 1.5% for at least 5 years. To complete the sector which stock or ETF (C$ or U$) to add to the sector
Thank you.
Best regards
Read Answer Asked by Djamel on October 05, 2017
Q: Peter and His Wonder Team
I accept the fact that you cannot time the market and that no theory or metric is always right or correct. If so we would all be rich! Ha!Ha! However, I do try to minimize risk by having the odds in my favour. So here is the question ...in your experience what tends to be the worst and best months of the year for stocks? For example I notice that August and September many stocks go sideways or drift down because buyers disappear. On the other hand in February, March and April they seem to do there best and peek. Your observations please! Is there any correlation between large and small cap? Thanks again for your great service!
Dr.Ernest Rivait
Read Answer Asked by Ernest on October 05, 2017
Q: Given the some of the uncertainties surrounding DIS, including how their new ESPN streaming service will perform, Bob Iger's impending retirement and the stock's poor price momentum of late, do you think it would be reasonable to exchange DIS for PCLN (after its modest pullback) for a very long term hold in the US consumer cyclical portion of my portfolio?
Read Answer Asked by Peter on October 05, 2017
Q: Hi Team,

I am a real estate investor and I have been for the last 15 years. Real estate is my passion and I enjoy it very much. I am trying to balance this with investing in the stock market. I enjoy researching companies, but I don't want stocks to take up the majority of my team. Is it best to construct a portfolio of high quality, low expense ETFs and add to it monthly or quarterly? Or is it better to follow a model portfolio like 5i or invests in particular companies. Less risk of picking a wrong stock in the ETF approach, but potentially also less reward. Real estae is still going to be my focus and I plan to use the real estate to fund my retirement.

Thanks for your help,
Jason
Read Answer Asked by Jason on October 05, 2017
Q: Just sold my house and not planning to buy one within half a year. I am using part of the proceeds investing in 5i stocks. I want to park the rest of the money somewhere relatively safe for a quarter or half a year. Looking at XHY.to, CVD.to, CPD.to, even KWH_u.to, ALAr.to. A bank is giving you nothing. Please advice
Read Answer Asked by Dong Sheng on October 05, 2017
Q: Was wondering what you thought of Couche-Tard? Seems to be in the doldrums right now and a pretty high valuation - with Metro taking over Jean Coutu and owning 5.7% of ATD.B - they might sell this position to take on less debt for the acquisition - their sales per store in the US wasn't that great either - would you hold, sell or buy more on this dip?
Read Answer Asked by Karen on October 05, 2017
Q: Hello 5i team,
Since I think the probability of a competing bid is close to zero, and the closing ability of the buyer is good, I want to understand the price at which PJC.A shares trade.
The facts: each shareholder can choose between (1) cash = 24,50$ or 0,61006 MRU (currently 26,09$); the aggregate consideration will be 75% in cash + 25% in MRU shares. Currently, MRU = 42,78 and PJC = 24,83 =>75%+25% = 24,90$.
Can I expect PJC shares to trade directly on this 75% & 25% prorata? Will the Coutu family exclusively get shares (they will get 2 seats on the board)? If yes, than there won't be that many shares of MRU available for the rest of PJC shareholders. Today, no PJC shareholders would choose to be paid 24,50$ cash, all would choose 100% MRU shares (price 42,78 x 0,61006= 26,10$). If I have no particular desire to own MRU share, and if I want to maximize my wealth, what should I do, if I cannot forecast MRU share price? The difference between the current price of PJC.A shares 24,83$ and the 75%+25% sum 24,90$ is very small for a transaction that will close between March and June 2018
Thank you, Eric
Read Answer Asked by Eric on October 05, 2017
Q: I am trying to clean up my husband's portfolio but am missing some ACB data. Specifically, when I checked his 2000 investment statement, he had Janus Global Equity Fund, but now he doesn't have this holding. However, he has a Mackenzie fund (MFC1055) that he didn't remember buying. I am thinking there was a fund merger at some point. Where can I find information about historical fund mergers?
Read Answer Asked by M on October 04, 2017
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