Investment Q&A

Q: Hello 5i,

I have about 30k in some terrible mutual funds (don’t ask) but would like to keep it simple and put this into one ETF without concern to sectors or risk. I know they are very new but are you able to comment on DXN or DXW? I’m also looking as DXG and DXF. And an advisor recommended moving some money into DYN800 – is there any good reason for an investor to put money into this fund? Please take as many credits as you see fit.

Thanks for this great service.
John

Q: Canoe Financial commented about a new product

"We believe, that coupled with our award-winning fixed income teams, it creates a balanced solution that will reward investors regardless of market conditions," concluded Hulston."
Is it really possible for the product they are referring to

"Apr 13, 2020
Canoe Financial Launches New Defensive Global Balanced Solution With Enhanced Risk Management"

to reward investors regardless of market conditions?

Q: I currently have a 45% equity, 35% bond, 10% preferred and 10% cash portfolio. Was waiting to allocate the cash the market when the virus issue clears. Corporate bond spreads are insufficient to cover the inherent risk. Should I consider the alternative income fund arena as a place to invest? I have noticed even pension plans are moving into this space.

Q: A friend tells me she has a mutual fund that attracts a capital gains tax every year even though she hasn't sold any units. I understand how that happens but I'm wondering: are there any equity mutual funds out there that won't attract capital gains tax (or losses) every year?

Q: ETFs
- is it correct that net asset value is determined once daily based on the closing price for the day?
- if correct, shouldn't the trading price reflect changes during the day, disregarding the NAV at close of the previous day?
- if the trading price doesn't reflect changes during the day, I suppose, in the case of a big change in underlying securities during the day, one should postpone a trade decision until the NAV for the previous day is published
- when will the NAV for the previous day appear in the quotation services? By open of trading on the following day?

Q: What do you think of this fund? Would you be a buyer today?

Q: About the Pimco Monthly Income Fund. I have read some commentaries over the last week. With oil prices tanking, some are saying that this will be the beginning of significant losses for bonds, beginning with the non-investment grade bonds in the US shale companies, but then causing a re-rating of lower-tier investment grade bonds into junk status that will need to be sold by pension funds, but with essentially no buyers. I understand there is an enormous amount of investment grade corporate dept that is in this BBB category, just above junk. What are your thoughts, and if that was to happen, what would happen to this fund in particular? My elderly parents have quite a bit of their portfolio in this fund. Thanks for your help.

Q: What is your opinion on the POLAR U.S LONG/SHORT FUND & the Canadian fund as well.

Thank you!
Nick

https://polaramp.com/long-short-fund/

Q: I'm interested in somehow purchasing shares or ownership in SpaceX which is privately listed at the moment. I know that Baron Partners Fund (BPTRX) has ownership in the U.S. but I haven't found a way to purchase Baron Funds from my current self-directed TD account. Do you know of any Canadian brokers or ways to buy into Baron funds?

Q: I have my registered accounts with a broker RRSP and TFSA. They have suggested Manulife Global Balanced Fund, managed by Mawer. Please give me your opinion on this fund. I am not sure that is what I want, but would like your opinion. Could you suggest something better for both a RRSP and TFSA.
Thank you so much, Shirley

Q: Re: Question concerning recent performance of EDG180, Feb 11, from John.
I note that EDGPOINT came about toward the tail end of the 2008 market shock and that they therfore had an excellent starting point for their funds to perform. Is it possible that this serendipitous beginning might somewhat explain their longer term results and that perhaps their more recent performance which "has indeed slipped" might actually be the norm?
Steve

Q: Hi, just to add to your response to Pat's question, PGF 210 is a F Class (MER 1.40%) fund and is available only on Fee Based accounts. For a standard Self-Directed account with no fee, the option would be PGF 200 (MER 2.40%). I think. Thanks

Q: Can you please comment on this fund.. Performance over the past 12-15 months has slipped from its long term averages, and ,according to Morningstar, has been in the bottom quartile of comparable funds.over this period. Based on its holdings and asset mix and performance would you continue to hold this fund? What would be your rationale for your recommendation. If you think that the fund should be sold what would be a good replacement. I currently have a position in the Mawer Global balanced fund so would be looking for another name, Thanks.

Q: Hi, I previously asked about PH&N Global Equity Segregated Fund to which you used the F Series as a proxy, and felt it was a good fund. How would you compare this to the Black Rock US Eq Index Segregated Fund (Reg)? Both are offered through Sunlife and have a similar 5 yr return of 12.5% - 13.0%. If it helps, it says the 'underlying fund' is BlackRock CDN US Equity Index Non-Taxable, Class D. The 'underlying fund' for the PH&N fund is Phillips, Hager & North Global Equity Fund, Series O.
Thanks

Q: Hi 5i Team;
I having been following Pender Funds and am wondering what you think of them? I was thinking of their Pender Value Fund class F for some long term growth in my TFSA, as well as their Pender Corporate Fund Class F, for some stability in the same account or my partners TFSA. I’m interested to hear your thoughts in general on these funds, if the mer is worth it, and if they would be appropriate for a TFSA? Would corporate bonds be an okay investment right now?Thanks so much!

Q: I know you are not a fan of mutual funds, and neither am I, but I wondered if you could suggest one for a TFSA that I could buy and forget about for a few years. One that could work well in a TFSA that has a low mer, but a decent return. Thank you.

Q: I'm thinking of choosing a managed mutual fund for my exposure to the precious metals sector due to all the risks associated with this sector.
What mutual fund would be your favorite for this volatile sector. It seems reasonable to me to pay an MER for a really good manager, when returns can very a much as 40% some years.
Thanks Gord

Q: Could I have your opinion on the Global Alpha fund from CC&L
Thanks

Q: Hi, What's your thoughts on PH&N Global Equity Segregated Fund offered through Sunlife? They're showing an annualized 5 year return of 14.5%. They're also only showing 1 down year in the past 10 (2011 down 8.58%), and 4 of the past 10 years between 25% & 33% (2013, 2015, 2017, 2019)

Thanks,
Ian

Q: Hello,
We inherited this F type fund after parting with our advisor. The BMO has so far kept it as such in our joint cash account. We own this fund since November 2017 and so far received $1236.30 in dividends and are $2500.00 down from our 30K. investment. I have a very basic idea of their long-short approach and I would like to ask your opinion if their modus operandi might be worth keeping and provide value during possible down markets.
Thank you and have a super day,
Kurt Baertsch