Q: Could I have your evaluation of these companies

Q: Good morning,

I have become aware of RA and INF through your Q/A section. I currently own VZ and XUS in my US dollar accounts for income. I am considering replacing them with INF due to the higher return. However, I note that INF which is stock based, will be merging with RA which is fixed income based. I also note that RA is four times bigger than INF so the merged funds will become a largely fixed income portfolio. Furthemore, only 20% of RA investments are rated BBB or higher. I wonder if RA is able to pay such a high dividend because it bought these perhaps sub-par investments well below par. My question is whether the extra dividend provided by INF/RA outweighs its risk relative to XUS and VZ.

Q: INF is merging into RA. This adds 195 M in assets to RA’s 841 M. RA then will be over the 1B in assets. I have RA , but not sure if I should add now or after the merge. I have it for dividends and a bit of growth. I know the MER is high at 2.23% but because the yield is high at 10+ I don’t mind . Although with the merge not sure of the outcome. Your comments please ?