Investment Q&A

Q: Peter what is your opinion of
Walter Scott glopbal equity growth fund and
Renaissance global growth fund als
Connor Clark& lunnfunds inc

Q: I am 60 years old and recently retired, have a company pension and am drawing my CPP early.
I have usually used individual Bonds for my fixed income portion (8%) of my RRSP.
My advisor suggested I should use these 2 Mutual Funds instead: LYZ801A & MMF559.
Do you have an opinion on these funds and are they a suitable replacement for individual Bonds?
Only joined your group recently but am learning a lot - THANKS.

Q: Currently holding (exclusively) Mawer Canadian Equity (MAW106) in a TFSA account targeting an “all-weather” (i.e., buy-and-hold) long-term investment, to which the maximum allowable has been contributed each year including for year 2018. The appeal of this product was the low fees (for a mutual fund product) and record of long-term out-performance relative to the TSX index, though note that recent 1 and 2-year results have dipped below the TSX index, and now showing a 3-star rating on GlobeFund. Appreciate your insight on the scenario for a 10-year hold, no withdrawals, maximum annual contributions, volatility not a concern, and seeking only to maximize the available balance at the end of 10 years. Things that come to mind are: 1) Percentage to place in Canadian investments versus international markets; and 2) Where the long-term edge is in terms of relying on one or more low-cost mutual funds, or jumping into pool of ETFs, or jumping into individual stocks (and which portfolio to model). Thanks for continued great service.

Q: Good Morning 5i Team,
I am trying to switch from the following managed funds to 5i recommended investments:
TDB2760 TD RETIREMENT BALANCED PORTFOL
TDB331 TD MANAGED INCOME & MODERATE G
TDB622 TD MONTHLY INCOME FUND - INV
IGI467 IG FRK BIS C/E-A /D'FRAC
IGI348 IG FI CDNEQTF A /D'FRAC
RBF461 Select Conservative Portfolio fund NL
Please evaluate and advise. I am targeting to allocate 65% for conservative and 45% equity investments). I have already small 5i portfolios with most of companies from 5i recommended Balanced and Income models (started in October - Dec 2017). Please advise. Thank you

Q: I currently own BMO Asian Growth and Income GGF734 and wonder what are your thoughts of selling this fund and buying VA instead?
Thanks

Q: Hello 5i
The following securities were chosen by an advisor, when we were with a full service broker, and I found no reference in the 5i "Question" section. Could we have your opinion on them, and, as part of a retired investor's portfolio, would you suggest to hold? If not a hold, then suggestions to replace. Thank you, Bill
1)Templeton Global Bond Fund (TML257) for income ( we also have VBU)
2) Res Fairfax Financial Bonds (due Oct, 14, 2022) for income. Far
3) Fidelity Far east Fund (FID227) for global equities
4) Fidelity Asset Allocation Private Pool Series S8(138) held in a corporate account where we draw approx. 2k per month

Q: Good Afternoon, Curious as to your thoughts on starting a growth oriented TFSA with the following, and your alternative recommendations if any. Thanks
ZLB,XWD, TDB3098,TDB3099. About 20k to start which is why I have not chosen individual stocks.

Q: Do not chuckle at my ignorance here please, but my question here is on ETF and Mutual Fund fees bought in self directed brokerage portfolios. If a posted managed fee (ie 1.5%) where does that withdraw fee show up and is it taken our annually or monthly? I never see a charge on my monthly statements for the etf management fees. How are they calculated, on the purchase price or a share value on a set date? Thanks

Q: Hi team
I have some money invested in this fund, Fidelity Magellan
it used to be managed by Peter Lynch
the US market has done well

Buy, hold or sell ? thanks
Michael
if you do not cover this fund, not sure if I should use the credit for the questions ?

Q: What is your opinion on Fidelity Can.Large Cap B (Fid.231)?
It still has 4 Stars, but had zero return in 2017.
What do you see in the future for this fund?
Thank you.

Q: Could I get your thoughts in the index funds series A available through RBC?

Q: I presently have $150,000 in MMF19. It has a MER of 1.5% and has yielded about 3.5 % annually over the past two years. PMIF has a MER of 0.75 and the indicated yield is 4.6% while PM0205 has a MER of 0.75 and a yield of 3.94 %. Would you sell MMF19 and buy one of the PMICO funds as a replacement? Would you have an even better suggestion?
I'm 85 years old with no need for income but I want to reduce risk by holding some bonds.

Q: Hello 5i,
My wife has a very small LIF (around 1% of our PF value) which was put into RBF461 A. Initially it generated enough income to almost cover the withdrawals, only a minimal amount was needed to be sold. The last year, however, has seen the fund return very little and more has needed to be sold to cover the annual withdrawal.
I was contemplating switching the LIF to XTR which would seemingly generate far more income and require a smaller amount to be sold. My questions are:
1. Would you endorse moving out of the RBC mutual fund and into an ETF?
2. If so, would XTR be a suitable candidate or would you recommend something else?
We currently have (5) pensions and an equity portfolio which also has some fixed income in it (@15%).
Thanks for any direction you might be able to provide.
Cheers,
Mike

Q: Hi. Peter and 5I.
I have also, as Carl, noticed the significant increase of questions on ETF's. This is one of the numerous red flags that are started to pop up all over the market universe in my opinion.
I have taken action against what I consider a risk reward more and more tilted to the downside and am way more concern today about terminal losses (unrecoverable losses) than I am about simple losses on further potential gains(opportunities costs)
I consider ETF's to be purchased only where I cannot buy company stock in certain asset classes or I need to buy in a foreign market that reflects a potential opportunity.
I have a general question about ETF and how they work. If ''everybody'' is buying ETF's now, does that means that the underlying stocks will also grow no matter their intrinsic value. In other words, would it be possible that the ETF's buyer may have now a predominant impact on the market than ''all'' the direct buyers of the underlying stocks. Tail wagging the dog kind of...
A comment on the extract from A wealth of common sense that you mentioned.
If the 16000 mutual fund are buying ETF does that not add to the overextended existing situation?
Passive investing is not just the domain of retail investors.
Thank you
CDJ

Q: Do you have any thoughts on the new ETF "Redwood Behavioural Opportunities Fund"?

Q: I am a retired, conservative, dividend-income investor with a pension, CPP, 30% fixed income (annuities, Fisgard Captial) and 70% equities (14% MFs, 16% ETFs and 40% mostly blue chip stocks). The question relates to the performance of 2 of my remaining MFs, those being Sentry Cdn Income and Sentry Global REIT. I receive a 6% dividend on my ACB for both of these, which I am very pleased with.

SC Income = held it since 2011 and have a total annual return of 9.7%, which I am happy about. However it is not performing well the last few years. Is it simply the portfolio was positioned poorly (in hindsight) at the wrong time? What is your impression of management?

Sentry Global REIT = held it since 2012, did well initially but recently only returning 2%/yr. I sold some last year and now have a half position. Again, your comments on sector performance and quality of management are appreciated.

Thanks...Steve

Q: Which mutual funds would you recommend today for non US / non Canada exposure. Large cap or smaller cap focus? Any specific geographic areas ? Thank you

Q: Good Morning, I am looking at Mawer 102 International Equity and Mawer 120 Global
Equity. How do you compare the two Mutual Funds? Which one of the two would
you buy today and why for a long term investment?

Q: For diversification I would like to buy a global fund. I have quite a few GICs. but they are still trying to sell me Edgepoint Global Growth and Income. I wondered if Edgepoint Global Growth would be better. since the GIC make up my income portion of my portfolio. I think the MER is the same for both funds, so I am paying a higher fee for the bond portion.
I appreciate your opinion.
Shirley

Q: Can you recommend an ETF equivalent/similar to the TD Science & Technology Mutual Fund? Thank you.