Investment Q&A

Q: I am a multi-decade holder of POW. Could you comment on how the new mutual fund rules will affect its profits as it owns IGM?

Q: Interesting in your view of CDN banks? Are you seeing value? They are looking like decent value to me and going into some seasonal strength. BMO has been under the radar a bit but appears to have some upside with the new purchase etc. What's your opinion on BMO?

Q: As a retiree I am looking, mainly, for income from dividends which will, hopefully, increase with time. i have done well in terms of capital gain over the years with TD, which I have gradually reduced, but feel I can get better value elsewhere. Specifically with HSBC having a yield of ~6.3% versus 3.9% - both have a history of dividend increase.
I know HSBC has been through a period of re-trenching and consolidation and wonder if this has stabilised the bank now.
Any thoughts on the switch for this ~1.5% holding?

Q: Re the ETF question, another company making money on ETF's is Blackrock, which has the ubiquitous i-shares in Canada as well as in the US.

Q: 8:29 AM 10/6/2015
Hi Peter

In your comment to Robert today you said with reference to Fiera : " Its association with National Bank has not helped recently, with the bank's very bad news."

Comment to Linda yesterday : "We do not like the news, and do not like the dilution from the equity issue. We are also believers in the cockroach theory: i.e. there is usually not just one problem. Shares are also already $1 below the issue price, not a good sign."

Comment to Margot : "We do not think the bank is in 'trouble' but clearly it is concerned about the economy enough to want to shore up its capital."

So My Question is : Can you clarify your opinion? NA makes up 3% of my portfolio. I own 4 other banks in larger amounts. Do you really think NA is headed for serious trouble and should I just sell it [at a 7% loss] or is it safe to hold for years expecting nothing more than the dividend income?

Thank you..... Paul K

Q: Could I please have your thoughts on BAC for a 3/5 year hold.

Thanks, David

Q: Hi Peter, Fiera seems to always announce good results and the stock usually bumps a bit after earnings only to drift lower in the following weeks. It is now at a 52 week low and down again today in spite of the strong day on the market. What is your view of some of their recent moves? Is this still a stock/company you believe in? What is the expectation for Q3 earnings? Thanks Rob

Q: I would appreciate your opinion on FIE for a balanced income portfolio. Will the capital value hold up in our current flat interest rate environment with rates gradually rising over the coming quarters? A big part of this ETF is composed of preferred shares. Will preferred re-sets do better in a rising interest environment? Many thanks!

Q: Hi and thanks for support through this bump in the road. I hold about a 5% weighting in ZWB and it has served it's purpose for income in our RRIFs but with a high weighting in National Bank NA I am wondering if a change to TD and BNS or perhaps CWB Cdn Western Bank would serve us better. Your comments are always appreciated.

Ted

Q: For diversification,if reducing exposure to Canadian Banks,would you provide some recommendations of companies with comparable quality and expected market performance.Thanks.

Q: Which Canadian bank is your favorite, being the one that will offer the most growth and capital appreciation over the next 5 years? TD, RY, BNS, BMO, or CM?

Q: Do you think it is wise to reduce exposure to National bank given the recent news? Thank you.

Q: I hold both BNS and NA (each about 4.5% of my portfolio). With yesterday's news on NA, would you recommend reducing NA in favour of BNS or another Canadian bank, if so, which one?
Thanks,

Q: Hello team, How good is HCG's deal of acquiring CFF Bank?
Thank you!

Q: May I have your view on National's "restructuring". Will this likely have any impact on the dividend!! I purchased for a long term hold.

Q: What do you think about National Bank deal a bank rising capital through common shares for capital requirement are they in any trouble?

Q: How much would National Bank have to fall for you to consider it an overreaction to the Oct 1 news?

Knocking off 19 cents for the restructuring charge and taking off a little more for the dilution still has the shares trading below 10x earnings. Also, the Maple Financial Group, as ugly as those headlines are, only represents less than 1% of net income. Is the news as bad as it initially appears?

Your insights would be appreciated.

John

Q: Hi I have a substantial investment in the banks mainly for income. There has been a lot of articles lately about the threat of fintechs to the Canadian banks. What is you take on this threat. Thanks Mike

Q: I have a half position in efn could I have your recommendation on if I should increase to a full position or perhaps take a half position in cxi at this time, the only other financial I have is mfc. Thanks as always for your advice.

Q: could you please comment on your outlook for AIG in the 55$ range here currently -