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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: Following your comments about retail REITs a few days ago, I reviewed my REIT holdings and my only retail REIT is CHP.UN. Their properties are almost exclusively Loblaws-branded grocery stores, with a small mix of other retailers. My view in buying this a few years ago is that people have to eat, but at that time there was really no alternative like the recent Amazon move. What is your view of CHP.UN in general, and would you continue to hold it for income.

Thank-you
Read Answer Asked by grant on October 31, 2017
Q: CPX took a hit following their last quarter, but they did raise their dividend and still have around a 50% payout (correct?). With the lower price, I am considering buying some, mainly for the dividend as opposed to capital gains (I'm retired and always looking for income). Some questions:
- has their coal-plant issue been satisfactorily resolved
- is their debt level in line with other power producers
- what do you think of their movement towards renewables
- do you consider the dividend sustainable (yeah, I know . . . )
- how successful have they been in meeting estimates
- would you buy today for income (I already hold AQN and NPI)

Thank-you
Read Answer Asked by grant on October 31, 2017
Q: Peter,

I want to compare performance of various mutual funds on my electronic watchlist. This will involve equity funds as well as balanced funds. I have no interest in bond funds. I will be looking at both small cap & large cap. What companies to you recommend me comparing. I know you like Mawer and have owned various of their funds for a number of years and am very happy with the results.
If specific mutual fund families have a specific successful niche ( ie small cap etc ) please indicate. looking at Canada, USA, non North America as well as Emerging Markets.

Thanks for allowing us to renew at old prices early.


Thank you

Paul
Read Answer Asked by paul on October 31, 2017
Q: Hi,

My question is regarding their recent offer for convertible debentures and I would appreciate any thoughts you might have on them. The cd's will bear 7% interest paid semi annually, with a conversion price of 2.20. There is also the chance THCX would force the conversion of all of the principal amount of the outstanding cd's on 30 days' notice if the average trading price of the common shares be greater than 3.15 for any 10 consecutive trading days. I do agree with your skepticism of this sector, but can't help but wonder about this one partly because of it's location and partly because we have a government that seems to be willing to move forward with setting standards that might help this industry to become more established.
On the other hand, it also occurs to me that with the recent rise in the US dollar, I should just buy MSFT, INTC or more NVDA, the latter which thank you - I bought on your recommendation some time ago.

Dawn

Read Answer Asked by Dawn on October 31, 2017
Q: I own equal amounts of these bond funds in an RSP. While CBO has a 2.3% return over the last year, and is considered one of 5Si"s "core" holdings, I am thinking that I should retain this position. XSB is off about 1% in the last 12 months, and its return over the last 5 years is dismal. XSH has about a 0.4% return in the last 12 months , with a 3 year return of 2.1%. Is there a benefit to selling any or all of these positions, and purchasing higher yielding bond etf's? If I were to sell, should I seek US or Canadian bonds fund, and which specific etf's might you recommend?
Thank you for your consistently good advice.
Read Answer Asked by doug on October 31, 2017
Q: Hello 5i,
Which preferred do to you prefer? Pardon the pun.
I'm seeking USD dividend income from Canadian companies to take advantage of the div tax credit. Can you suggest other vehicles or strategies to achieve this?
Are these perpetual or rate reset? With rates increasing, why aren't these going down in value? The yield seems to be north of 5%. Any obvious risks I may be overlooking?
Thank you.
Read Answer Asked by Carlo on October 31, 2017
Q: I intend to reduce my equity holdings for two reasons – I need to free up some cash for other projects and, secondly, I am concerned about the current risk in the equity markets and want to discharge an investment loan I have against my house. I am happy with the securities I own and their % in the portfolio. Consequently, my plan is to generally reduce across the board.

I own both ENB and ENF. Should I sell one and keep the other or reduce both?

I also own ESP. It has been a wild ride and I am presently down about 25%. What is your outlook on this stock over the next couple of years? Given my plans for portfolio restructuring should I sell and book the loss or continue to hold?

In the US portion of my portfolio I own GOOGL, AMZN and FB among others. If the market enters a severe correction do you see these as more risky than the US market in general?
Read Answer Asked by Ross on October 31, 2017
Q: Is there any single ETF with significant holdings in Japan,India and China?
Thank you,
Philip
Read Answer Asked by Philip on October 31, 2017
Q: Can you please give me your thoughts (or alternative recommendations) on the following Funds for a 64 year old heading into retirement within the next year.

RBC Select Balanced Portfolio - Series A . (RBF460)
EdgePoint Cdn Growth & Income Port Sr A (CAD). - (EDG188)
EdgePoint Global Growth & Inc Port Sr A (CAD). - (EDG180)
PIMCO Monthly Income A (CAD). - (PMO005)

Please deduct as many credits as required.

As always, thank you for your invaluable service.

Micheal
Read Answer Asked by micheal on October 31, 2017
Q: I would like to add to my industrials and can't decide between these two companies. I know you like both. Is there anything that suggests one over the other? I am wondering if given I have enough healthcare already, is that enough to influence me to go with NFI as it is the "purer" industrial play?

Appreciate your insight (and really looking forward to the new website!)

Paul F.
Read Answer Asked by Paul on October 31, 2017
Q: You seem to like Covalon a lot and I wonder what you are seeing that it might be worth investing in.
It looks to me that their product line is not very diversified....and a Chinese copycat could easily move in.
If you had a choice between COV,KXS or CLS what would be your pick be in order without looking at sectors?
Read Answer Asked by Josh on October 31, 2017
Q: I have about 35 % in the above stocks in my TFSA and they have gone up nicely. The rest of my TFSA portfolio is following loosely your income portfolio ( + ZPW, ZWE, ZWH etc). My question is whether I should lower my exposure to the financial sector above?
Do you have some suggestions as to which US companies I could buy were I to sell some of the banks. I bought the US banks for growth as the rest of the stocks on the Can. side are mostly income producers.I already own Alphabet, Apple, Microsoft and Visa in my RRSP.
Thank you for your answer.
Heidi
Read Answer Asked by Heidrun on October 31, 2017
Q: Lately, a few analysts at BNN have mentioned about canadian banks being overvalued. I own TD, NA, BNS with about 4% each on the portfolio. All in registered accounts and above purchase price. Would it make sense to sell all (or some) and wait in case they correct ?. If yes, what can they be replaced with ? Thanks
Read Answer Asked by Alejandro (Alex) on October 31, 2017
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