Investment Q&A

Q: Our advisor has recommended that we sell some of our equities and purchase more fixed income funds. His recommendations are Manulife Strategic Income F (CAD); TD Retirement Balanced Portfolio F Series; Fiera Defensive Capital Global Equtiy Fund and Lysander-Canso Corporate Value Bond Fund. We are already invested in Pimco Monthly Income Fund (PMO 205), DFA Five-Year Global Equity and CBO. We are leaning in favour of investments we already own as well as XSB, XBB and CLF. We are looking for Canadian, US and International diversification. What would you recommend?

Q: Why does FTB have such a large spread between the Actual MER (.50) and the Actual Management Expense ratio (.92)/ My financial planner is actively promoting it. I wonder if he gets some of the MER as an incentive therefore encouraging him to promote it. Its current yield is 3.4% wile CLF has a yield of 2.9% with an MER of .15 and .17. Do you have any comment on XBB, XSB, CLF, and FTB. Should I mirror the FTB portfolio of the five bond fund ETFs (CLF, XBB, PGL, ZEF, and ZHY) or buy FTB? I assume the yields are after the MER is taken.

Thank you.

Q: my teenage daughter has just registered her tfsa. She has a small amount of $ (4000) to start. she is thinking for simplicity and risk sake at this point in her life to go with the global couch potato. Which 4 ETFs would you recommend for her. she needs a CAN equity, US equity, INTER equity and a bond ETF.
Do you think this is a good idea or would you recommend she stick to specific company stocks instead?
thanks
michele

Q: I have been wanted to diversify my portfolio and I was wondering if this is a good list or a bit of overkill. I have recently bought some XBB. I want these for fairly long positions, my concern is that I might be over paying for these as everyone is fearful and flocking to bonds as a safety net. Would it be wise to let things settle or buy partial positions in these etfs. Also would it worthwhile also owning some us long term treasuries. I am looking to try to cover all possibilities so I am not chasing in the future when market conditions change. I would like diverse group to cover inflation, rising market, recession. I know that I cant take all risk off but I would like have some safety net and not hold all equities.

Q: One more question regarding asset allocation in my RRIF-- how would you rate a 50/50 split of XBB and CBO as the bond component? Given all other factors remain the same. Thank you!
PS - loved the question "what makes 5i so great?"
You provide fabulous service and take some of the angst and mystery out of investing.

Q: The fixed income portion of my portfolio has been suffering for the last few years, what do you think of the above and what recommendations would you have, thanks, Jean

Q: Hi Ryan and Peter,
My question is of a general nature and concerns a problem many seniors are having with portfolio construction. I'm 70 years old, have a defined benefit pension which, along with my wife's defined plan, covers our monthly commitments. We are underinvested in the fixed income part of our portfolio but because of the lack of returns on bonds and GIC'S, are hesitant to commit a large portion of our savings to this sector.
As with many seniors who have their monthly expenses covered by pensions, we need guidance as to what percentage of our funds should be in fixed income. What percentage do you think is appropriate and could you suggest a few specific investments.
If you believe, as I do, we would be better off investing in Canadian Blue Chip companies that offer relatively safe growing dividends, could you suggest several such companies.

Thank you in advance for your much appreciated guidance.

Q: If Harry Dent is right and we are in for a few years of deflation, which Canadian stocks/ETF's do you recommend to see us through it?

Q: Could I get your top ETF picks for goverment bonds and corporate bonds. Thanks for your informative answers David

Q: Peter and team,
I have about 18K to invest in my daughters RESP which will be required in the following two years, and about 24K to invest in a non reg account for her to use in around two to six years timeframe. This is not money I can afford to loose so I need to invest it carefully. Some say I should be keeping it in a GIC due to the timeframe, however that will not even keep up with the cost of living.
Any suggestions please?

Q: Hi, 5i.

What are your top picks for fixed income at this time? I have a small position in XBB and that's it.

Thank you,
Robert