Investment Q&A

Q: Hello 5i team. I own TD and BNS. I'm up over 20% on TD this year while I'm generally flat on BNS. Should I rotate out of TD to another bank or does it have more legs to run. I also own a half position in VB and own BAC and C in the US. Thoughts?

Q: I am wondering why BNS is maintained in the Balanced and Income portfolios instead of TD given that the latter has consistently outperformed. Over 10 years TD price is up 125% and BNS 50%. Given your philosophy of looking for strong momentum would TD not be a better replacement? Some insight into your thoughts here would be useful.
Many thanks.
Mike

Q: In my daughter's RESP I hold TD(39%)up 13%, PBH (39%)up 110%, GUD(17%) down 20% and 5% cash.
I still have 9 years to go before the first withdrawal.
I was thinking of diversifying TD and/or PBH. Which dividend ETF (with growth potential) would you recommend?

Q: Hello 5i

I read and consider your advice as very insightful. You often urge us - and demonstrate through your own model portfolios - that one should not overweight a company too much.

At present the stocks I have identified are all at or just over 7% of my total portfolio. To me, they are all “keepers” for the long haul. Still, they weigh heavily on my portfolio which is balanced with many other stocks sitting at around 5% weighting in my portfolio. Obviously I keep my holdings down to a manageable number and am not a trader.

Do I just ride the winners and be aware of the danger involved? Each of my mentioned stocks are up over 100% so I’ve got some space to “lose” money in a market downturn.

I do not need the money. Indeed, the capital gains on too many sales would put me in claw back territory.

Please deduct as many credits as you wish.

Best

Peter

Q: My question is about allocation of Canadian Banks in 5i Portfolios and what would be a reasonable weighting in a broad portfolio of 30-35 holdings which looks 80% like a Balanced with 20% Growth. BNS is the only Canadian Bank held in 5i Balanced Portfolio (4%) and Income Portfolio (6%). Historically, Canadian Banks have provided substantial returns through dividends and capital appreciation. But, I like 5i approach of finding companies with value/growth potential in small/mid cap universe and structuring portfolios. By association, my portfolio weight in Canadian Banks has grown to about 15%, CM,TD and RY, in order of 10.5%. 3% and 1.5%, respectively.
Would it make sense to reduce these holdings to align more along the line of 5i approach ?

Thanks.

Q: You provided some percentages re: US business for the banks on 5/16 to Paul K.
What metric (revenues/assets/net income??) did you use to calculate the percentages.
Thanks

Q: 11:10 AM 5/16/2018
I very much appreciated the geographic distribution of business exposure to different countries for BNS that you provided this morning to Ron.

It would be very helpful to me and likely to many other members if you could provide a similar geographic breakdown of activities for the other 5 Canadian banks. It would help us to calculate our exposure outside of Canada.

Thank you............. Paul K.

Q: I have recently inherited a portfolio of stocks heavily weighted towards the Canadian banks (RY, BNS, TD, BMO, NA, CM). About 30% of the portfolio is made up of these six banks and I am uncomfortable with the lack of diversity and high correlation.

Which two or three banks do you feel are the least attractive and therefore the best sell candidates?

Q: Why the Slide in TD RY BNS. Just cant catch a bid here?

Q: I am heavy financials at about 20%, I should probably trim the herd....All but CHW will generate a large capital gain as I have held most for a long time. I hate to sell CHW as it pays a crazy div right now at almost 8%.

I am leaning towards holding all but taking the dividends and putting into other sectors (stock from the your balance portfolio following your balanced equity portfolio) and not adding any new financials to my holding.

Can you provide a compelling argument for selling 1 or 2 of the above for the sole purpose pf rebalancing out of financial. Or is my slow but steady approach with lower tax implications a reasonable compromise knowing I will be heavy financial for several years.

Q: Why are the bank stocks so weak lately. Is this a good time to add or do they have more room to fall. Thank you.

Q: 11:56 AM 4/3/2018
I own RY, CM, BNS, and some TD, and they comprise nearly 20% of my income-oriented portfolio. It is often suggested that I should own shares in one or more insurance companies, but I think the big banks are already in the insurance business so I believe I am already am invested in the insurance sector.
Would you think I need to buy some SLF?
Could you please give me an estimate of what proportion is in insurance business in each of the big banks.
Thank you............. Paul K

Q: In my TFSA currently have BCE, ENB, FTS, TRP, CNR, SLF, BNS and TD - Currently down about 5% in the portfolio. I'm looking to make a change to get some growth in lieu of dividends - what would you recommend keeping and buying.
Thanks

Q: Of the top 6 Canadian Banks, can you rank their exposure to the US from the least to the most exposure?

Q: Hi 5I,

I want to add to my bank positions.
Do you still recommend BNS and TD over the others?
Also is it common for the banks to be more negative in early summer around mid June?

Thanks

Q: hello 5i:
clarification please. "Chris" asked about the big 5 Canadian banks, but I only see 4 listed. Where does BMO fit in this mix?
thanks
Paul L

Q: I need to unload one of the 5 big banks. How do you rate the 5 on a scale from best (keep) down to "worst" (sell)? Thanks for the continuing great service!

Q: Can you tell me if RY is as diversified as TD or is it more of a "Canada" only bank.
Thank You
Craig

Q: I have owned stocks in above companies for a while. I want to make additional investments in quality dividend stocks.
I also own stocks in KO, GE, MSFT and SYY. Total portfolio about Cnd $ 300K and US $ 120K
1st question, In your opinion, should I sell any of the above stocks, if so which ones.
Which additional stocks would you recommend for me to purchase
Thanks for your guidance. John

Q: Hi. In the Financial sector, I own BNS (5%), TD (5%), GSY(3.2%), ECN(3.3%) and Visa (2.4%). Is the banking sector too high? If I need to sell, which one should go first? Is GSY and ECN very similar in nature? Should I own both? Thanks