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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: 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.
Read Answer Asked by Saad on June 27, 2016
Q: As a pensioner, I just came into $150K of "extra" money that I would like to invest in the 5 year and more time frame. (I'm optimistic). I would like 6 names you can recommend within the following framework.
1. Must be TSE listed company.
2. Much of the income must be from outside of Canada.
3. Must be in the top tier of stable companies.
4. Should be growth rather than dividend focused.
Three "ideal" investments I have in mind is TD, MG, and BAM.A. So along this line, what can you recommend? Thank You.
Read Answer Asked by Jim on June 14, 2016
Q: Where do you see the greatest risk to equity and bond investments?
1. High inflation caused by economic growth finally putting to work all the money that was printed by central bank quantitive easing around the world; or,
2. Deflation caused by slow growth due to unfavourable demographics and financial deleveraging by consumers.

What would you recommend as the best defense in each of these scenarios?
Thanks,
Read Answer Asked by Hans on June 13, 2016
Q: In today's Globe there is a lot of doom and gloom news about Bonds, especially from Bill Gross, the bond Guru.
As (an almost) a senior, should I worry about my bond ETFs? I a well diversified in Bonds, Short/medium term, Corporate, US and International.
If I have to sell them now, where can I divert that money?!!
I have preferreds ETFs, dividend ETFs, REITs. Should I increase my % in these areas? Or take the risk and increase the equity portion of my portfolio?

Thanks in advance.

Read Answer Asked by Savalai on June 12, 2016
Q: Hello 5i team,

I'm currently building a portfolio from scratch for my mother who is 61 and retired. We are thinging conservative value and income equities for 10+ years.

Which 5 stocks, either from your balanced or income portfolio would you use as building blocks? If possible, can you recommend stocks that are fairly priced at the moment?

Thank you for your excellent service,

Cam.
Read Answer Asked by Cameron on June 10, 2016
Q: A question related to portfolio weightings. I used to only have individual stock names and a fairly equal balance across various sectors. I just purchased an market ETF the other day (VUN) to get additional exposure and classified it as "other", but it didn't feel right when I noticed that the weighting of my other sectors went down.

As an example, if I had x% in a particular sector, but made a large contribution due to new cash into a market ETF, the original x% in that sector would now show up lower in my own calculations. How do you account for this? I don't want to be overleveraged in a particular sector by mistake.
Read Answer Asked by Mike on June 09, 2016
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.
Read Answer Asked by Ryczard on June 09, 2016
Q: I noticed a comment a couple of days ago about the quality of your portfolio reviews. I had one completed a couple of years ago and I echo the sentiment. They are of very high quality and well worth the cost.
For all of us to continue learning, please indicate the top five mistakes you continuously see investors making from your portfolio reviews.

Thanks

Paul
Read Answer Asked by paul on June 09, 2016
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