Investment Q&A

Q: This is a comment on Austin question this morning. Some fund companies and in particular Sprott charges performance fees even when the fund loses money. So in the example you have shown if the market went down by 50% and the fund went down by 30% the some performance fees are charged. So they get on the upside and downside, which I think it is unfair. I would like to see fund companies, charging only on the upside with a specific percentage of absolute return. Or better yet giving back what they earned in performance fees when the investor loose money.

Q: Hi Guys

Do you think it is time to buy some hhl.un units at this time

Thanks Mike B

Q: I've been following Eric Nuttall for quite a while, as he seems like the go to guy for Energy Stocks. His Fund is up 38% as of May/31. I'm thinking of buying into his Fund SPR 006 (A), but in addition to the Mer of 2.5%, there is also a Performance Fee of 10% of excess over S&P/TSX Capped Energy Total return Index. This is confusing!

Would you kindly explain exactly what would be my Total Fees would be on an investment of $1,000?

Many Thanks!

Q: My investment advisor has me in a strong position with this fund (RBF554, North American Large Cap focus). While it's 3 yr performance seems decent at 9.45% it's 1 yr return (which is what I have participated in) is -.41%. MER is 1.75%. Do you think this fund is worth keeping or is it better to move on and if so would you have any suggestions of a good fund or etf to replace it?

Thanks
Gary

Q: Your thoughts on the following tentative plan will be appreciated:

Looking to tweak our equities some over the next year or two to provide for a bit more US exposure and sector diversity and less in mutual funds. We looked at about 10% of our equity holdings in yesterday's review with our IA and tentatively landed on this:

1. Cdn $ - Sell Dynamic Dividend Income Fund and (some of our) RBC Cdn Equity Income Fund tentatively in favour of iShares Core S&P 500 Index ETF CAD-Hedged (XSP).

2. US $ - Sell CI American Value Corporate Class Fun and TD US Mid-Cap Growth Fund tentatively in favour of SPRD S&P 500 ETF.

PS. Our IA seemed to hesitate about us selling any of our RBC equity fund as he feels it well-managed and performing well again this year (11% ytd).

(Context: Retired. No pension. Conservative. 35% GIC, 30% preferred, 5% alternative, 30% equity, preferring blue-chip safe dividends.)

Thank you.

Q: Could I please get your opinion of this fund for a RESP.

Thanks

Dave

Q: BDJ: Blackrock Enhanced Equity Dividend Trust
What is your opinion of this fund for retirement income? What are the risks? The yield is 7.25% and pays monthly. I read an article that said it's currently selling at a discount.

Q: Can you recommend an absolute return fund for someone that is not an accredited investor? Thank you

Q: Hi, what do you think of this new fund, Caldwell US Dividend Advantage? It still very small. I am trying to diversify from Canadian only stocks, want a dividend and don't want ROC (which they state in their prospectus might happen). Thanks!

Q: With the current movement to reduce mutual fund fees do you think PWF should still be considered a buy or hold? I have held PWF and POW for many years solely as an income play in my RRSP.Their share price appreciation has been less than stellar compared to banks over the last 10 years. Thanks, Joe

Q: Bristolgate Capital Partners is opening up a Canadian Equity Fund to the public this year. What do you know of this company, its team, performance , fees, and would you think investing a large amount of capital with them?

Q: This question may be out of your area of expertise but I will assume, maybe.
I have come across a fascinating investment, income vehicle. BMO retail has a product called -BMO Cash Flow Plus Deposit - Here is a quick overview.
On a deposit of $100,000 they will pay you, tax free, $500 per month for 15 years. This is a "return of capital"
After that time a sum will be returned to you which is the original amount that BMO has invested rather aggressively. Needless to say that with the 15 year compounding timeline and investment posture this could be substantial. This would be taxed as a "capital gain" There are a few other features but this is the gist. On the surface this is interesting. Any hidden aspects or dangers?
Thank you.

Q: For portfolio type mutual funds such as the Mawer 104 balanced fund or the BMO select trust balanced portfolio is it possible to track down the MERs for the underlying holdings to better understand the overall fee structure? For the Mawer fund I can't find any information on the MER for the series O funds held in the portfolio as compared to their regular series A funds.

I haven't started to dig into the BMO fund yet, but it too is of interest as it has been recommended to family members by the local bank branch 'advisor' and already has a high MER on the portfolio fund.

Q: Hi 5i:

I have a set percentage of my portfolio dedicated to fixed income, with a primary focus on safety, but also with the hope of some return. I have focused on short term bond ladder ETFs, corporate and gov't. Over the last few years I have seen the reported distributions drop, slowly but steadily, and also the price of the ETFs drop steadily. For example, CBO now shows a dividend of about 3.6% wile I'm down about 3.3% on the market value of the ETF. I would have been much better off over the last few years in a GIC. I have some of the latter and like the ETFs because I can redeem them at will. Is there any other alternative to these bond ETFs (most that I have looked behave similarly)? What about RBC's Target Bond ETFs? These are held to maturity, though it seems to me that this might not help if the main problem is that the bonds included in the ETFs are bought at a premium. Your advice would be much appreciated.

Q: I was recently told that if I sell my investment in AGF Fixed Income Plus fund, there was a penalty to be paid. I could not get much more info from the broker or the AGF web site.Is this a portion of their MER or can you enlighten me.
Thanks

Q: Ours is a very conservative portfolio, with one third in dividend-paying equities, half of that individual stocks and half no-load funds. The latter's performance doesn't seem to justify the MER's so I would like to reduce, maybe eliminate, that cost, roughly $5,000 per year. Any thoughts you might have on how best to effect that change and what form that should take, eg less funds, more stocks and/or ETF's, will be much appreciated.

Q: what is your opinion of the stck DFN - dividend 15 split

Thank you for your opinion

Q: Hi,
My brother is a Primerica agent (err..salesperson). Im not big on Primerica as a company at all. He keeps pushing though about this large cap fund ( http://www.fidelity.ca/cs/Satellite/en/public/products/mutual_funds/equity_funds/cdn_equity/bu) supposed to have great long term returns. One of the things I don't like about this is the management rate of 2.28%.
Im not an active investor, but have some exposure to real estate (through reits) and a little finance through CM.
I am young and have tfsa savings and want to invest in long term growth (etfs maybe?). Could you offer some recommendations on good long term low cost, passive investments?

Your website is awesome and Ill be signing up as a member tonight!

Thanks
Dave

Q: The returns on this fund are excellent, the mer not so much 2.34%.
Your thoughts please or alternate suggestions. Thank you.

Q: Sentry Global REIT Fund cut their distribution at the beginning of the year. Is it still a good buy?