Investment Q&A

Q: Hi 5i Team, and with income tax season upon us, if a mutual fund company chooses at their convenience to consolidate their (Dividend) Fund A into their (Dividend) Fund B going forward, does it create a reportable taxable capital gain for the holders of Fund A? In this case, the statements show Fund A as a "redemption" (for the fund that is being closed at their convenience) and Fund B as a "purchase" (for the larger fund that is going forward), on the identical trade date (i.e., there is no order date and no later settlement date, but the redemption and purchase occur on the same calendar date as in a substitution of fund products). In this case Fund Company A was acquired by Fund Company B, and presumably the funds overlapped, and the mutual fund company chose to consolidate the two overlapping funds into one larger fund going forward . Since this was initiated at the convenience of the mutual fund company and with no action initiated on the part of the taxpayer, and essentially the product that the taxpayer is holding is unchanged (i.e, Dividend Fund A replaced with Dividend Fund B from the same mutual fund company), would this be a reportable capital gain, or otherwise the taxpayer within their right to choose not to report in the year 2021 taxation year and retain the ACB of Fund A and declare the capital gain when Fund B is sold? It does appear on the T5008 form issued by the brokerage. Thanks to all your Team from an appreciative member.

Q: Good morning, since Nutrien is a cyclical stock, at what stage would you say they are these days, eg. In a baseball game, which inning would you say they are in, thanks?

Q: I am considering purchasing this stock. Do you like it? Any comments that you have on this security would be appreciated or is there another stock in this sector you would prefer. Thank You.

Q: It has been a couple of years since you commented on this company. It seems to hit all the right notes with high ROE, decent dividend growth, low debt although revenue growth isn't high and analysts don't seem to be enamoured with it currently.

Comments?

Appreciate your insight.

Paul F.

Q: Peter; Is there a U.S. etf that’s holds lng shipping companies? Thanks.Rod

Q: Your opinion of the earnings report?

Q: Can you give your updated opinion on VSBY? You mentioned back in Jan that it was expensive. Its pulled back a bit since. What are you thoughts on an investment in this company?

Q: What can you tell me about this company, is it a good investment.

Q: Thoughts on results.

Q: Happy Friday! Can you recommend two names in Canada you feel can benefit most from the current environment. 2 Energy and 2 Basic Materials - I have 3.6% of my portfolio exposed to energy and only 0.8% in BM. Happy to add to current positions. Long term investor (7-10 yrs) with higher risk profile.

MX 0.8%

ENB 2.44%
SU 1.15%

Thanks for the continued excellent work. I think this is my 5th year using your services and have not been disappointed. Have recommend your services to all my friends.

Q: Why the big dive in unit price and unusual high volume today?

Q: I own TOU shares and I am looking to add two more Canadian stocks that are predominantly natural gas producers. Suggestions please with your reasons.

Thanks, Tim.

Q: SWP: It's been a long time since their last report. I understood they would be reporting last week. Does this seem like a sign that I should sell before the news?
GUD: They have been buying back shares for years. Is there reason to believe they are preparing for privatization? In the past year they bought more than $3M in shares. Insiders bought modestly; no sells.

Q: On GSY & WELL. I am down 30% on both in a registered account. Looking at the tax loss and moving to AT and CSU. I have started to use this as a growth account. Or I could sell and wait 30 days to rebuy. Looking for growth possibility so being a little more aggressive is OK

Q: I have to move $100K into my RSP for corporate tax reasons. I have been waiting for the market to settle. I am in no rush just have to do it before October. I know you can’t time the market but thinking about making the transfer and then slowly buying over the next while as the ups and downs are not as big as they have been over the last many months. Your thoughts on this?

Another option may be purchasing a few ETFs both growth and balanced. I have no ETFs to date and think this may be an option, any suggestions?

Q: Good morning I have a TFSA tax question you might know the answer. If you are fully maxed out with no contribution room could you sell covered calls for stocks you own on the US side and not get a penalty for the premiums collected? I was thinking these would be view like a dividend but am I wrong?

Q: Hi Peter & 5i, The above ADR's trade on US Exchanges among others,
whose dividends are passed on to Canadian investors without the dreadful withholding tax, even in taxable accounts. How would you rate them from good to not so good. Also your input on these and others that you can think of, would be appreciated. As always thanks for the great service. Ivan

Q: I own a little ENB, I think I should add to the position of perhaps add PPl to bring the position up.
Also TD is my sole financial but want to add another bank or an insurer SLF or another insurer. currently non in my portfolio now.
Of the insurers what % of the insurers would you suggest and is Trisura a good way to increase the position in some way.
I dont own BAM but own BEP & BIF ... is adding to either of these positions the way to go or perhaps adding BAM at this time...
Which CdN bank stocks do you favor most-----
Thank you for your advice. Maureen

Q: Hi,

Does there seem if it is a good time to buy Tilray or Canopy?
Which one would be a better buy and why?
Thank you
Ed

Q: I sold my GUD shares and would like to use this cash to add to either LSPD 1.7 % , SIS 3.4% , TIXT 1.1%. Which one would you add first or should I add to all 3? This is for a TFSA account.

Thanks