Investment Q&A

Q: Looking at this, what's your take on it.

Q: Hello 5i team,
Since its inception, your balanced equity portfolio has generated something like 16% compound return pa; it has beaten the other "advisors" hands down and I enjoyed the ride. Congratulations!
Of the 6 major banks, BNS is the worst performer with a 5-year return of 7% compared to TD 47%, RY 35%, BMO 33%, NA 30% and CIBC 24%; and yet BNS is perennially in your BE portfolio. Why?
Thanks,
Antoine

Q: Odlum Brown has just recommended to sell CME and replace it with BLK. Seems like an odd time to sell CME as my understanding is that the recent increased volatility should be good for it, which is likely why it is actually up over the recent period!!

BLK also looks good, especially after its recent pull back.

I currently have 2% of my portfolio in CME but do not have BLK.

Would 5i support holding CME and initiating in BLK or does it seem reasonable to exit CME on its recent strength and pick up some BLK? I have 15% of my portfolio in financials at the moment.

C.

Q: I am retired and own GMP Capital preferred series B in a non-registered account for income. How safe do you think the dividend is? I was encouraged when they recently re-instated the dividend on the common shares, suggesting management confidence in ongoing profitability, yet the pref B price continues to trend lower. Why?

Q: I think that 3 more increases in interest rates are expected by end of 2019. You commented recently that one of these banks stock dropped due to bad loans. Is the info on bad loans available in the QLY rpts or elsewhere? I understood that the banks generally do well in rising interest rates but will this be offset by fewer mortgages?
Thanks

Q: I have a 10% position in TD and a 2.5% position in BNS. Would you reduce the TD position and use the proceeds to bring BNS up to 5% or just add to BNS using the 25% cash position in the account? In addition, I have 5% positions in V and BAC. Over exposed to financials period? I am a retired conservative investor who would ideally prefer to have good dividend with some growth. I have substantial gains in all financials mentioned.

Thank you for your great service.

Tom

Q: While it is true FFH has had an annual compound return of 18% since inception. 1985, the lions share of that return was created between 1985 and 1998.
Since then , a shareholder who

bought FFH In 1998 has had an annual compound return of less than 1% a year. ( 540.00 1998 )
600.00 2018.
How would you judge this performance??

Q: Just wondering what your rational is for holding GS in your income portfolio. After reading your comments yesterday ?? KWH is behaving at bit better for now.
thanks !

Q: I am interested in starting a position In VISA for my RRSP. What would be a good entry price?

Q: Hello there,
I don't want to beat a dead horse here but doesn't GS look pretty tempting here as it drifts toward $10/share.? It hasn't been this low ( other than the last few weeks) since January 2009 during the worst days of the financial crisis . Certainly the world is in a better place now than it was back then? Also approaching a 10% yield which is either highly enticing or highly dangerous?? I haven't figured out which yet? As a very profitable cheap company with a large cash position is this a buy here? I see no insider buying activity at all in the last few months though, what don't they like here? Any thoughts here would be appreciated.
Thank-you

Q: Hi Peter, when do TD & BNS report and what are your expectations ?
Based upon the recent muted responses to good 1/4s and the very negative responses to misses is there any value in exiting here and freeing capital for the best overall market values once this 1/4 is over ? Both banks have held in well so far but its tough to picture that either one will have a short term move up substantially from here. Thanks, Paul

Q: Seems like these active managers have been so out of favour that they now represent reasonable value. Some of the comments/questions recently have me thinking, I'm not so sure that the DIY investing model is for everyone. (No one could answer that better than 5i!) Since you have been on both sides of the investment industry do you believe that these firms will find their footing or do you think they are doomed?
Are these numbers correct?
AGF.B Yield 6.2% Payout Ratio 33% Debt 400M Market Cap 430M
CIX Yield 3.6% Payout Ratio 59% Debt 2.5B Market Cap 5B
GS Yield 9.14% Payout Ratio 81% Debt 50M Market Cap 350M

Would you please rate them based on total expected return(dividends and appreciation) over 3-5 years?

Thanks!

Q: Guest on bnn continually refer to rising interest rates good for banks and insurance CO’s. It’s a bit misleading because unless spreads increase it’s not going to happen . Could Peter Address this point when he is on bnn on Thursday. Thank you

Roy

Q: Hi there

Any thoughts on why Onex has fallen so much since the summer?

Thanks

Stuart

Q: Any thights oir infor on the price drop with Fiera today?
Slainte

Q: I thought chesswoods results were very good and was dissapointed with the markets re-action (or lack of). I like this company and its dividend but am I missing something.

Q: Please comment on ECN's earnings. Thank you.

Q: In your reply to Kimberley regarding MKP, you stated that you'd find it hard to get interested (given all the issues), but that's assuming you don't already own it. However, for those of us who do, would you suggest hanging on to it? Or would you swap it out for something like EIT.un if one wants to maintain the same level of non-dividend income?

Q: how did their quarter look?? Thx

Q: Any material reason you can see or have heard of, other than the current earnings miss, to explain TMX Group being down 7%?

Thanks again for your help.

John