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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi, Superior Plus shares have been week over past 2 weeks. Even on days when markets have been strong, like yesterday July 22, shares have drifted lower, now about $13.48 down from a high of $14.25. Do you see share price recovery in near term? What are your expectations of quarterly results due on Aug 6? Thanks
Read Answer Asked by rajeev on July 23, 2014
Q: regarding the CVD and XHY: (1) i have zero exposure to bonds and was planning to divide funds between the CVD and XHY in the model portfolio. Should i favour one over the other?

(2) i notice the monthly distributions vary from month to month. what dictates the variations in monthly payouts?

(3) i noticed in May and June, according to the ishares webpage, CVD and XHY did not pay their distributions. is this correct and if so any idea why and whats the likelihood of nonpayments happening again?

Thanks again.
Read Answer Asked by john on July 21, 2014
Q: Seems we're into a summer pullback in the Canadian market. I've noted some of the companies in your model portfolios have pulled back with the market. Which companies in your model portfolios do you currently believe are the least expensive and provide the greatest upside for the next 1-2 years? As, always, thanks for your valued guidance.
Read Answer Asked by Les on July 17, 2014
Q: Hi
I was wondering if I should sell IPL in my rrsp to buy VNR.
IPL has done very well over the past year. VNR has a higher dividend but is actually down over the past year.
Which do you think would have the greatest upside over the next 3 years?
Thankyou!
Read Answer Asked by maida on July 15, 2014
Q: Hello Peter and Ryan,
I have rebalanced my growth portfolio and also have new money to invest in 4 to 5 positions for the long term.
In the 5i 20 growth portfolio I have 16 of the stocks except the following 4 stocks CSS, FSV, G and MG. At present valuations is it still advisable to add these stocks or would you suggest other stocks.
Thank for providing such great insight, Ronald
Read Answer Asked by Ronald on July 15, 2014
Q: Just a comment. ENB is NR in the model portfolio but rated A- in the 'global' portfolio.
Read Answer Asked by Greg on July 02, 2014
Q: "We are considering adding a growth portfolio; but at this time are not sure of the timing on such."

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Peter, can you elaborate on your thinking per your comments above? I too am in favor of seeing a growth model portfolio (for the ones willing to take on more risk). Thanks.
Read Answer Asked by Evan on July 02, 2014
Q: Hi Peter & team, you still think that Valener Inc. VNR is good investment for income? MN
Read Answer Asked by Motoi on July 02, 2014
Q: Hi 5i Team
A question about the income portfolio. The names that you have not done a report on that are on the portfolio. How do you decide to choose these names over others in the same sector?
If you were to be doing the yearly report right now, would AYA remain on the income portfolio with such a huge gain on this stock that has already happened?
Thanks
Kathy
Read Answer Asked by Kathy on June 26, 2014
Q: I have about $220K to invest in a LIRA. I'm 42 and plan on retiring at around 62. If I want to invest in equal amounts the same as the Model Portfolio, should I wait for a pull back or are current prices still good entry points?
Read Answer Asked by Rob on June 25, 2014
Q: CPD
I am very wary of adding Preferred Share index back into my portfolio as you have in the new Income Portfolio. I had a 5% weighting since 2013 and the yield for two years barely covered my capital loss. I have had the same experience with bond etf's. Is it not better for me to buy the individual corporate bonds from the discount brokerage and have reasonable assurance my capital is safe even if the yield is a little lower?
Read Answer Asked by Catherine on June 24, 2014
Q: I have been using your model portfolio as a template for my RRSP investments. I have a large cap portfolio run by an investment company - it already contains BNS, SLF and MG. Can you suggest some alternate stocks in these sectors that would be appropriate for the model portfolio? Thanks!
Read Answer Asked by Linda on June 22, 2014
Q: Based on the price appreciation of Amaya this month the Model Portfolio weighting has likely gone from 5-6% to 10-11%, unless there's been a reallocation, as there was in May. I get the philosophy of not wanting a position to get too large in a portfolio but surely this idea might be counterbalanced sometimes by the idea of letting your profits run (and not adding to your losers) particularly on a stock that has such a great promise. If profits were taken on AYA on the way up, at what point was the decision made to do so, and what was the rationale behind it? Thanks, J.
Read Answer Asked by Jeff on June 22, 2014
Q: Hi Peter,
Our portfolio is comprised of five accounts. Within the portfolio we have 12.2% in finance plus another 8% in REITS. The strictly finance stocks & percentages are:

MKP 3,5% (in TFSA & RIF)
BNS 3.1% (in Inv acct)
GS 2.4% (in Inv acct)
TD 1.6% (in Inv acct)
EFN 1.6% (in Inv acct)

Question: MKP is probably a bit weaker company than the others. Would it be reasonable to switch it for SLF, and would SLF provide a similar overall return to MKP over 3 – 5 years? Or do you have a different suggestion as a MKP replacement? Or would it be reasonable to keep MKP, which has provided a great distribution and a small CG.

The REIT holdings are:

HR 3.2% (in TFSA & RIF)
MRG 1.9% (in RIF)
REF 1.6% (in Inv acct) (CG of 125%)
AP 1.3% (in Inv acct) (CG of 150%)

Question: Would you make any change to the REIT holdings in the TFSA and/or RIF?
If the overall finance holdings are a bit high, perhaps the sale of a TFSA/RIF REIT would be appropriate to make room for a material stock. The only portfolio holdings in materials are MCR and G.

Many thanks. Bob
Read Answer Asked by Robert on June 17, 2014
Q: 11:01 AM 6/16/2014
Hi Peter

I sold my PrairieSky this morning at a huge 40% gain from the IPO price as it was like getting 10 years of dividends all at once as a capital gain - too good to resist - so now I am looking for a good long life higher dividend paying oil company.

I have narrowed down my choice to these growing light oil companies, one or more of which I would expect to hold for many many years.
Safety and growth of dividends, and decent share price growth are most important to me.

Whitecap [WCP]
Surge [SGY]
Bonterra [BNE]
Crescent Point [CPG]
Canadian Oil Sands [COS]

Could you please put these in order as to which you prefer and maybe explain why you make the choices you do.

Thank you very much............ Paul
Read Answer Asked by Paul on June 17, 2014
Q: Are you aware of any reason why ET(Evertz Tech) is under some selling pressure today.Their latest quarter seemed quite solid to me.
Read Answer Asked by Donald on June 16, 2014