Investment Q&A

Q: Do you know of any software available that can track stock quotes other than Quicken pro. I have used Quicken Pro for many years but now they will discontinue the stock downloads u9nless one purchases their 2017 program. Cost is about 84.00 per year. It works pretty good except it does not correct stock prices for different exchanges. (such as US dollars). Thanks. Ernie

Q: My portfolio has been sitting unchanged for some time (2 yrs), many winners are 5i recommendations, some not so much. With that said, my portfolio is well underperforming the model equity portfolio. Below are my current holdings. If I am to sell off those not included, and change the weight to match those in the model portfolio, how would you go about executing this? Big bang? Are there names you would wait to get into today, or those that you are considering a change in the near future? The value is about 500K, so the trades(from my perspective) will be significant. % are approximate on the add side. Your advise would be really appreciated.

AYA-6.3 (%) - Sell
AVO - 3.7 - Sell
BAD - 3.5 - Increase to 5%
BNS - 6.3 - trim to 5%
BDI - .6 - Sell
CGX - 4.8 - Sell
CSU - 5.6 - No Change
DSG - 4.0 - Sell
DHX - 3.7 - Sell
ENB - 3.5 - Maintain
ENGH - 4.2 - Maintain
XTC - 1.05 - Sell
HCG - 1.1 (ugh) - Sell and burn transaction receipt
MUX - 4.6 - Sell
PKI - 6.4 - Trim to 5%
PLI - 2 - Sell
SSL - 3.8 - Sell
TOY - 6.7 - Trim to 5%
STN - 3.8 - Sell
SJ - 4.1 - Maintain
SLF - 5.2 - Maintain
SYZ - 4.1 - Trim to 3%
TOU - 3.5 - Sell
WCP - .7 - Increase to 3%
Add: AEM 3%, AIF 3%, ATD 4%, CCL 5%, CLS 3%, CXI 3%, GUD 3%, MG 5%, MX 3%, KXS 5%, NFI 3%, PBH 5%, SIS 5%, T 3%, WSP 4%

Also - (I have asked about as many questions of late as I have traded) - for RESP for 4 yr old, roughly 12K in there now, where would you park this given building a portfolio of names is a challenge with the limited funds.

Thanks,

Eric

Q: My approach to investing is simple. Many analysts insist that Canadians have too much of their money in Canada and should be investing elsewhere around the world. I believe the best stock market in the world in the U.S. So my approach has been to invest in Canadian companies that do business in the U.S. and elsewhere (TD, Enbridge, Magna, CCL.B) These companies give you international exposure, you invest in CDN $ and you get the dividend tax credit for non-registered accounts.
Am I missing something?

Q: This will be for the benefit of Patricia and all that are concerned or think they would like to ask more question. IT IS A STRONG ENCOURAGEMENT TO do the following:
Call CDIC at 1 800 461 2342 you will be surprised how easy it is to speak to someone.
YOU CAN ASK:
-about the specific investment that you are planning to do they will tell you if they cover this investment. THEY DO NOT GIVE recommandations.
-About how much money they have to cover any bankrupcy.
-When you will be reimbursed in case of a bankrupcy
-How to make sure that you will be reimbursed capital AND interest
_IF they had experience with past bankrupcy
You will end up appeciating the quality and value of this service.
Print at your will
CDJ

Q: If I were to buy a GIC from Home Capital under 100000, what would happen if they went broke? I understand that the GIC is insured, but for how long would the money be tied up while all the paperwork gets done? And I guess I wouldn't get interest during that time?
Thanks

Q: I do options in U.S. markets, but find low volume and low open interest in Canada. Do you or members know of liquid Canadian stocks suitable for covered write. Thanks.

Q: Both these companies report in USD. They are listed in NY and Toronto. Is the Toronto price basically a function of the rate of exchange?

Do these companies have a hedging strategy to protect the Canadian shareholders?

I suppose that an investor concerned about foreign exchange losses should examine the hedging strategy of any company holding assets outside Canada.

Q: PPA does not pay a dividend but the most (if not all) of its holdings do pay a dividend. What happens to the dividends the ETF operator receives from the companies it hold shares in the ETF?

Thanks,
Harry

Q: Dear 5i;
My financial planner charges me hst on his management fee which i`m sure is typical.
The MER would be the ME (management expense/fee) plus hst plus accounting fee`s plus whatever right ?Thanks.
Bill C.

Q: There was a article in the Financial Post regarding Canada's REITs. Basically saying to stay away from them and that they are over valued. Do you believe this is true?

Q: When someone is down on a stock like MDA say 20 percent and you advise the holder to hold then for someone who does not yet own the stock would that then be a buy for them? After all they would be buying at 20 per cent less than the person to whom it has been suggested they should hold. Thanks.

Q: What is my true yield, if I do not cash / take my dividends that I receive whilst holding a stock, (a) the dividend divided by the cost / share or (b) the dividend divided by the adjusted cost / share (where my cost / share is reduced by the accumulated dividends received)?

Q: Last night I watched an Australian money manager talk about the benefits of Smart Beta ETFs. He mentioned the following which I expect are traded on the Australian exchanges but might also be traded in N America.

Yield shares high income, ishares FI balanced risk, Vanguard dividend appreciation as examples.

Are these the same as low volatility etfs we know about here - or are they another type of etf?

If so, what is your opinion on this type of etf for safety and likely better long term returns?

Q: Hi Peter and Team

I own most of 5I balanced equity portfolio in my RRSP account and the following portfolio managed by Manulife / Standard life for RPP and TFSA.

19- Canadian Bond Index (SLI) 25%
344- Canadian Equity Growth (Connor, Clark & Lunn) 13%
26- Canadian Equity (Jarislowsky Fraser) 14%
49- US Equity - SSGA 14%
25- International Equity (SLI) 14%
11- Real Estate (SLIRE) 10%
677 - Global Absolute Return Strategies (SLI) 10%

I would like your opinion comparing these two portfolios especially in regard of risk, growth prospects, fees, and principle safety .Time horizon 5 to 10 years.
Thanks for your great service

Q: Hi Peter,
It's an interesting question by Brian re: Mega Bears, and your response makes total sense. I've always appreciated the view of Jim Rogers but he has been looking for total collapse as long as I recall. To your point eventually he will be right. A telling comment I read about Marc Faber is that he has correctly called 20 of the past 3 recessions. Where do you put the views of David Rosenberg in all this ?
Thank you. Paul

Q: Can you give me a few names with the safest dividends and yielding over 3.5%? In evaluating dividend safety do you prefer to calculate the payout ratio vs earnings, operating cash flow or free cash flow? If FCF do you average CapEx over a few years or use depreciation as a proxy for stay in business CapEx?

Q: Over the last few years, I've become familiar with the likes of David Stockman, Marc Faber, Jim Rickards, Peter Schiff, Jim Rogers, and other well-known perma-bears. They spend a lot of time warning about sky high stock valuations, extreme asset inflation generally, the banning of cash, the importance of precious metals, impending market crashes, runs on banks, the freezing of stock exchanges, and other light fare. I try to balance their dire outlook with more sanguine perspectives, but I'm always wondering if some of the extreme scenarios they envision will ever materialize.

For instance, Marc Faber appeared on BNN a few days ago, warning that the share prices of some of the most successful companies are headed to zero in the coming years. He didn't specify which ones.

Are you familiar with any of these pundits, and should any of their warnings be taken seriously? Thanks for your thoughts. I'm due back at the bunker now...

Q: Hi 5i Team,
I recently learned that Canada has enacted a "bail-in" regulation so that systemically important financial institutions can recapitalize by converting some of their liabilities (deposits) into capital should another financial shock occur. Is this fact? How does this regulation work and How does one avoid forced conversion of savings?

Thanks for you great service.
Regards,
Danny

Q: Hi 5i;
Just a curiosity question . My current Financial planner has me invested in a couple ETF`s with MER`s of about .96% . That MER expense gets paid out of my fund but who gets that amount , my Financial Planner or the company the ETF is purchased from ?
Thanks
Bill

Q: Almost every investing article we read state "investors" doing whatever... Whenever I read that, I think of us little guys poring over our computers at the kitchen table. But I know better than that. I know "investors" are dominated by the big funds, insurance companies, pension funds, etc. But I'm curious. What percentage of investors are the retail investors?