Cundill Recovery Fund
Q – What is your opinion of the Cundill Recovery Fund? A – The timing of this question couldn’t be better, given that elsewhere in this edition we highlighted the new IA Clarington Sarbit Activist Opportunities Class. This fund is in a similar space in that it has the mandate to invest in companies that are undergoing some sort of recovery situation such as reorganization,...
Read MoreReaders Question – Fidelity Canadian Disciplined Equity Fund
Q – What is your opinion of the Fidelity Canadian Disciplined Equity Fund? A – This is kind of a neat little fund. It is designed to replicate the sector weightings of the S&P/TSX Composite Index, yet at the same time allowing the managers to use active stock selection to add additional return for investors. Despite its resemblance to the index from a sector point of view, it is much...
Read MoreLooking for the best way to generate tax efficient income
Q. – We will be inheriting approximately $100,000 in the next few weeks. What is the best way to invest the money to receive approximately $5,000 per year in a tax efficient manner? Would T-Series mutual funds such as the CI Signature High Income Fund be a good option? A. – First, let me say that there is no universal “best” way to achieve what the reader is asking. Everybody’s situation...
Read MoreCorporate class funds can help reduce taxes
Question – What are the advantages of using a corporate class fund in non registered accounts? Answer – Quite simply the main advantage of corporate class funds is lower taxes. This happens because their unique structure allows for a couple of neat features. They are: i.) Tax Deferred Switching – When you invest in corporate class funds, you are able to switch between funds in...
Read MoreA quick review of the AGF Large Cap Canadian Dividend Fund
Question: I have held the AGF Canadian Large Cap Dividend Fund for a number of years .What is your opinion of the fund? Answer: I have to admit that I have been a little disappointed in this fund in the past few years. First off, the name of the fund is a bit of a misnomer in that it does not pay investors a regular distribution. Instead, it is basically a core Canadian equity fund that invests...
Read MoreConfusion about advertised performance numbers
Question: I have been a holder of the AGF Canadian Large Cap Dividend Fund since Aug 2007. My purchase price was $11.56. It closed on May 31 at $8.70. This represents a loss of about 25% to me. Can you please explain how this fund manages to advertise that it’s losses over 5 years is only -1.7%? How can my 25% loss be explained as a -1.7% average annual compound return? Answer: ...
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