Investment Q&A

Q: Currently have BNS,TD,CM,IGM,FSZ and SLF in the Financial Sector comprising 21% of my Income portfolio. I would like to replace CM ( or do you feel fine having 3 bank stocks ) - can you give me some suggestions as possible replacements ?

thanks

Q: I have recently taken over my parent’s investment account management because of health reasons. I found that my parent’s financial advisor had their money tied up and mutual funds with heavy fees, as well as GICs that were locked in for a long period of time. The money is now available for investing. They are retired and in their 80s. I will be keeping most of the money in HISA, GIC, and some short term bonds if the yields ever go above GICs. I would like to include a couple of stocks that are quite secure and pay decent dividends. And suggestions? I was thinking of RY, CM, BNS, PWF, BCE, CU, TRP, and ENB. Do these sound good, and do you have other suggestions?

Q: Hello,
In the banking sector, I presently own a full position in TD. I wanted to add another bank and was looking at CM. I like the yield and appears to be trading at a better PE and PB given the weakness recently in the share price.
Do you have any compelling reasons for not owning this bank?
Thanks,
Dan

Q: My question is about allocation of Canadian Banks in 5i Portfolios and what would be a reasonable weighting in a broad portfolio of 30-35 holdings which looks 80% like a Balanced with 20% Growth. BNS is the only Canadian Bank held in 5i Balanced Portfolio (4%) and Income Portfolio (6%). Historically, Canadian Banks have provided substantial returns through dividends and capital appreciation. But, I like 5i approach of finding companies with value/growth potential in small/mid cap universe and structuring portfolios. By association, my portfolio weight in Canadian Banks has grown to about 15%, CM,TD and RY, in order of 10.5%. 3% and 1.5%, respectively.
Would it make sense to reduce these holdings to align more along the line of 5i approach ?

Thanks.

Q: 11:10 AM 5/16/2018
I very much appreciated the geographic distribution of business exposure to different countries for BNS that you provided this morning to Ron.

It would be very helpful to me and likely to many other members if you could provide a similar geographic breakdown of activities for the other 5 Canadian banks. It would help us to calculate our exposure outside of Canada.

Thank you............. Paul K.

Q: I have recently inherited a portfolio of stocks heavily weighted towards the Canadian banks (RY, BNS, TD, BMO, NA, CM). About 30% of the portfolio is made up of these six banks and I am uncomfortable with the lack of diversity and high correlation.

Which two or three banks do you feel are the least attractive and therefore the best sell candidates?

Q: What do you think of CIBC at this level ($110)? I'm looking for relatively safe income with some growth. Do you see more downside? Thx. Scott

Q: 11:56 AM 4/3/2018
I own RY, CM, BNS, and some TD, and they comprise nearly 20% of my income-oriented portfolio. It is often suggested that I should own shares in one or more insurance companies, but I think the big banks are already in the insurance business so I believe I am already am invested in the insurance sector.
Would you think I need to buy some SLF?
Could you please give me an estimate of what proportion is in insurance business in each of the big banks.
Thank you............. Paul K

Q: Of the top 6 Canadian Banks, can you rank their exposure to the US from the least to the most exposure?

Q: hello 5i:
clarification please. "Chris" asked about the big 5 Canadian banks, but I only see 4 listed. Where does BMO fit in this mix?
thanks
Paul L

Q: I need to unload one of the 5 big banks. How do you rate the 5 on a scale from best (keep) down to "worst" (sell)? Thanks for the continuing great service!

Q: Hello: I currently own BMO, CM and BNS. I’m thinking of switching BMO for TD as BMO did not increase its dividend as TD did. Also I believe TD has more US exposure which should show better growth. Your opinion please.

Q: Any need for a bit of a short term hedge going into earnings ?
Thanks

Q: Hello Peter, Ryan & Co.
The Canadian banks are core holdings in my portfolio, which I intend to hold for a very long time. I am a bit perplexed, however, at the recent selloff. I recognize that the current pullback/correction in the market is very broad, but it seems to have been triggered by a fear of rising interest rates - don't banks & insurance companies actually benefit from rising rates? The banks' shares seem to have fallen as much as the interest-sensitive stocks this week (like REITs & utilities), which makes no sense to me. Can you explain?

Q: Thinking of changing 4 Can. banks into 1 for tax loss but not missing the upside in the next 30 days. Which one would you pick, or just leave as is ?
Thanks

Q: I like CIBC because of it's personal mortgage exposure: higher mortgage amounts means more revenue for the bank, also rising rates, a healthy dividend, and great earnings reports. Now that it has more US exposure others seem to like more as well. It has had a good run since I bought at $104. Would now be good time to take these profits or do you see more upside for CIBC?

Q: Hi team,

Thank you for the great service. could you please comment on the quarter?

Morris

Q: Any guesses as to which Canadian banks may soon do a stock split?

Q: The dividend yield for CIBC is significantly higher than the other four big banks in Canada. I recently heard that if there is a real estate downturn that CIBC would be the most negatively affected because it has the greatest exposure to residential mortgages.
My question is why do you think the dividend yield is higher for CIBC?

Q: Hello

Are you able to explain why CIBC has been reluctant to stock split? Historically Canadian banks begin splitting close $100 price to become more affordable for Canadians. This is has not been the case last few years. Is there any discussions of a split in the horizon?

Thx
Jerry