Investment Q&A

Q: Although up overall in my balanced portfolio, I'm down close significantly, 10- 20%, in AEM, CLS, KXS, GUD, PKI, SIS. I don't yet own CCL, CAE, EMB, GC, T.

Would you suggest swapping them out now, as year end approaches, or hold and buy the remaining names as funds become available? Or perhaps keep a couple / drop a couple?

Thanks!

Q: If I was to invest in a model portfolio you provide would you recommend I purchase the securities at current prices or wait and selectively buy when their pricing becomes more attractive?

Colin from Calgary, Alberta.

Q: In general over the last little while when asked about favorite stocks in your portfolio you include SIS, TOY, PBH, CSU and GUD. I fortunately own all of them and have profited handsomely. Thank you very much! If you had to currently add a stock from each TSX sector which stocks would you pick? One caveat, please do not pick any of the 5 listed above! Thank you

Q: Hi 5i team,

What in BE would you add to right now (considering valuation/quality/prospects rather than weightings/sectors)? What looks good?

Thanks!

Q: I noticed this month that with the exchange of ENGH for CG that it changed the tech sector allocation from 19% to 16% was this done to facilitate a sector rotation that seems to be underway or simply a function of one company with better prospects over another. I tend to complete the Balanced Portfolio and also have a number of your Income Portfolio stocks in my portfolio and was wondering if I should move my portfolio to that percentage in tech..as usual thank you for your great service...Eugene

Q: RE- smaller (around 2%-2.5% weight). There are 9 positions with lower weights - some are losing while some are lower wights to start with. Is there any rational in keeping those low convictions. why not consolidate few or may be buy more of if we still like. Just wondering what is your thought around these. Thanks

Q: My 20 year old son has started a stock portfolio and currently holds 11 stocks and will add a few a year. We are following your balanced portfolio. He was overweight energy and sold a position today on the recent bounce. He only holds TOY in the consumer area, MX in the materials area, and SIS in industrials. We are looking at adding in one of these three areas. Any suggestions? also holds SHOP, CLS, KXS, ALA, BNS, ECN, GUD.

Q: My daughter is just starting her investing journey and has probably 40 plus years until she needs the money. She has enough for 12 stocks and I have suggested she follow your balanced portfolio with a few growth stock added. Considering buying T, GUD, ENB, CCL.B, TV, BNS, TOY, PBH, SHOP, CAE. She understands SHOP as her mom was one of their early clients, but we are hesitant due to its incredible run up. Is this a good list and could you suggest two more stocks from one of the following areas. Tech, industrials or consumer. We are considering PHO, CSU, BYD.UN, KXS, OTEX, GC and SIS. Any other suggested changes would be appreciated. As a new investor I am sure she values some stability as she gets her feet wet but growth should be a prime objective. Of these stocks which one would you chose for her TFSA. Thanks for your insight. Please deduct appropriate credits.

Q: A few days ago I read you dropped ENGH from your Balanced Equity Portfolio but now I cannot find reference to this on your model portfolio update page. Please remind us of which stock replaced ENGH at what weight and when was the switch made.

Thanks for your response,

Steve

Q: HI Peter/Team if you have to choose the best 5 stocks from the balance portfolio and 5 from the income portfolio which would they be ( I am 60 years old). THANKS JIM.

Q: Hi, I understand the balanced portfolio consists of Canadian companies but with their international exposure would a certain percentage of the portfolio be considered international? I ask from a global diversification perspective.
Thanks,
Brent

Q: Given that the Canadian dollar has strengthened a bit after the last two rate hikes, which stocks in your balanced portfolio could have affected the most . Can we expect some of the earning results in the next quarter not match up with the market expectation because of the stronger Canadian dollar? Thank you as always.

Q: I am slowly building the BE portfolio in my RRSP as funds become available. For instant diversification, would it make sense to own 20-30% ZDV for access to bigger names like BNS, ENB, MG, T, MX, CGX and SLF? Basically Financials, Energy and Utilities would be covered. I could then concentrate on adding the smaller names like SIS, PBH, GUD, ENGH, TOY for the remainder of the portfolio? Would it defeat the essence of the BE portfolio? Any other ETF would be better? Thanks!

Q: Hi, I currently own PBH, OTEX, ENB, TU, MX, CSU, SJ, and WCP. Please recommend 2 additional companies from the balanced portfolio to buy at current prices.

Thanks,
Brent

Q: In 5iResearch’s investment portfolios I understand how the “Since Inception Return” & “Yield” columns are calculated, but not for the “Monthly Return” & “YTD Return” columns. Could you please explain how the “Monthly Return” & “YTD Return” columns are calculated. Thanks.
… Cal

Q: Hi, pardon me I should have included this in my prior question; other than savaria, are there other names in the BE portfolio that you see as attractive in recent weakness.

Thank you once again for your excellence,
Karim

Q: Hello, I will have to liquidate a substantial amount of my portfolio in the near future and figured I may as well take the opportunity to rebalance my holdings. My goal is to build a fully invested portfolio based on the 5i Balanced Equity portfolio core, with a minor growth tilt. I have read through the Q&A section thoroughly and have come up with the following solution and wanted your opinion:

NON-REG: AIF, BLX, PKI, WSP, XTC (5 holdings)
TFSA: CCL.B, CSU, KL, KXS, NFI, PBH, PHO, SHOP, SIS, SYZ, TOY (11 holdings)
RRSP: ATD.B, BYD.UN, CAE, CLS, ENGH, GSY, GUD, MX, SJ, PEO, ZZZ (11 holdings)

I have 2 questions (please feel free to deduct more credits if necessary):

1) Are there any names you would remove and/or swap out for other names? (I am nearing 30 holdings which from what I have read could be getting too large and inefficient) and

2) Is the division of holdings across the NON-REG/TFSA/RRSP best spread for growth efficiency?

As always, thanks for your amazing service!!

Q: I've recently changed jobs and now have access to funds that were previously tied up in a group RRSP. I would like to start building the balanced equity portfolio, and at this point in time believe I have enough cash to buy about half of the portfolio now, with the intention of rounding it out in the new year.

Which 10 or so stocks from the balanced equity portfolio would you recommend starting with at this point in time? I'm in my late 20s so therefore have a long investment horizon.

Thanks in advance.

Q: Hi guys, I'm looking to deploy new cash and add 2-3 stocks to a starter portfolio that is split between RRSP and TFSA, long term hold. Current port holds, SHOP,KXS,PBH,TOY,NFI,GUD,CCL.B, and (CRH down 45%). I'm Looking for balanced growth and for the stocks to be in one of 5i portfolio's. Ty!

Q: I am retired and living on dividend income. 80% of my funds are in my income portfolio, which is focused on dividends and yield (approx. 20 stocks) and meet my income needs.
So I am considering investing the remaining 20% of my funds in your balanced portfolio for more capital appreciation. How would you recommend I go about this? If I also mirror your balanced portfolio, I would have 40+ stocks in my portfolio.
Would you therefore recommend 5 stocks that look most attractive at current valuations and invest equally in each?