Investment Q&A

Q: I hold 7% of my portfolio in CBO. It's performance over the last 5 years has been less than I thought it would been. I was wondering if you could suggest an alternative. I was considering switching 3% to something else with similar considerations. What about VSC?

Q: I bought a bond from S in 2015 that originally was to mature in 2018, but unfortunately was extended to 2021. In the meantime I have a 56% paper loss. I saw today that S stock price is at $0.18(!). Is there a more than likely chance that Sherritt will go under and if so, is there a way to estimate how much of my principal I can get back? Should I just sell this bond even if it’s in my RRSP? Thanks, Martin

Q: When I read/hear the phrase "GIC-like funds" what is being referred to? Can you provide a few examples if that phrase has meaning in the realm of investing?

Q: Hi Team, I have a small weighting in MFR.UN. Capitol loss of 12% over 5 years or so. The yield is high so is there value in holding on for medium term or longer. A few concerns. Manulife website figures. Management fee is stated to be 1.1% yet MER is 3.81%. weighting 147% U.S. , & negative (short presumably) 59% Cad. The holdings are short duration so I cant see capital losses unless they are trading losses. There should surely be some currency gain from the U.S.currency holdings. My premise is that both rates and currency average about todays, over the next 3-4 years. Do you see any hope of recovery in unit value? Are they eroding capital to keep up the payout. Is the payout at least safe? Is this fund performance worth the management fee? Thanks.

Q: Hello. Which one of these is a better place to stash cash in my Questrade account? PSA or CSAV. Is money in these protected by CDIC or something else. Is there anything better you would recommend? Thanks

Q: I start withdrawing from my RIF next year. At this point I have just under 6% in VSC, 5% in XBB, 2% in XHY and was thinking of adding some CBH for the longer term corporate bonds.

If you feel my thinking is correct what % limit would you set for CBH? I know there is more to my investments than what is listed here with BCE and ENB et al also held for their income stream but I want to get your thoughts.

Thank you,
Ron

Q: I am considering investing a small portion of my overall portfolio in "green" bonds and came across a company called CoPower that I believe is partially owned by VanCity Community Investment Bank. It looks like it has a return of around 5% but you must hold it for 5 years. Is that correct?
What can you tell me about the company and whether this would be considered a "safe" (relative term) investment similar to other corporate bonds.
Thanks!

Q: Is there a report or a blog on Bonds regarding which Bond ETF will do better in different economy cycle ie interest rate up or down. Recession or in good economy.

Thanks for your great service

Q: Good Morning: I notice that Laurentian bank is advertising a hi-yield saving acct. with a 3.3% rate. This seems unsustainable in the current environment. Their ad does not say anything about a limited term for this rate but does of course warn that rates can change without notice. Any comments?

Q: Wajax is currently offering 6% senior unsecured debentures with maturity in 2025. Do you consider the risk of default / bankruptcy of Wajax by 2025 to be significant?
Thanks!

Q: The PMIF currently shows a YTD return of about 5.85% on their website. Sounds really good for a monthly income fund. This seems to include a change in unit price value from January 1, 2019 plus monthly distributions to date (Nov 2019). However is not the real return only the annual sum of the monthly distributions (around 2.5%)? The fund drops in unit value on the monthly ex-dividend date. Seems to me just the unit distribution (yield) should be the real return value. YTD is misleading when there is such a large unit drop in December to account for year end distributions.

Q: Laurentain bank is offering a online saving account
At 3.30 %
It seems so high for a saving account
What risk do you see in using this service
Thanks for the help

Q: Follow-up to Graham's question of where to park money that is safe. High Interest Savings accounts are offering rates of over 2%. Motive's rate is currently 2.8% and is CDIC backed.

Q: I'm holding cash and gradully adding to it with dividends in case there's a market correction. What's the best place to hold these funds that are secure yet get some interest while waiting?

Q: Hi 5i,
I will be needing to spend around 50-100k from my portfolio in 6 months to one year time frame. Can you give me some safe alternatives to park this money now so it is all there when needed and still makes a return until then?
Thanks
John

Q: 1. As I approach retirement I am looking for options to at least slightly improve the dismal returns from the fixed income portion of my portfolio (currently in bond funds, PSA, GICs, returns 2.2-3%).
I am wondering what you think of market linked GICs? The 5-year TD Canadian Banking & Utilities GIC offers an annual guaranteed minimum interest of 2.75%, and maximum total return 25.00%. The 5 year Oaken GIC rate is 2.85%. With 100% principal protection, a competitive minimum interest rate and the potential for a modestly greater return I cannot see any downside to the TD product which makes me think I must be missing something.

Q: Hello 5i team, I am slowly reducing my exposure to equities for two reasons: position my portfolios ( US + CDN) for a possible recession or slowdown and also, I am 66 year old and my portfolios are 80% equities.
I have taken small positions to above bonds ETFs.. May I have your comments and also, would you recommend short/long or medium bonds and treasuries? As well, do you have other recommendations for someone my age? Thanks CR

Q: For an investor with a high equity tilt (e.g. 90% equity - 10% bonds), can you recommend one fund as a one-stop-shop for the bond component? PMIF currently has my attention.

Q: In his profoundly influential book, The Battle for Investment Survival, originally written in 1935, Gerald Loeb states: "Indeed, should some super-solvent agency agree to preserve the buying power of capital for a substantial length of time at a stated fee per annum, informed people would embrace the plan enthusiastically if they felt there was any real possibility of the agency staying solvent."

According to Bloomberg, 17 trillion dollars are invested at negative interest rates today. Surely, much of that is smart money. Is that money acting on Loeb's dictum?

Q: Further clarification of my question re bond holdings in portfolio. md stable income fund is a segregated group annuity insurance policy holding 50% insurance and 30% short term bonds. I would like to decrease my weighting to 10% or switch to another short term fund as 20% plus cash holdings is hurting my returns. What percentage do you feel of a moderate rrif should be short term bond? Thanks once again for your opinion
Tom