Topic: How To Invest

Dear Pat and team: I have these holdings in an investment company I own. Would you comment on these holdings? Thank you. Regards. AIC Canadian Focused Fund, Altamira Equity, CI Harbour Fund, Mackenzie Cundill Value Fund, Phillips Hager & North Dividend Fund, Fiera Money Market Fund, CI Knight Bain Special Equity Fund, Phillips Hager & North Balanced Fund, CI Signature Select Canadian Fund and TD Dividend Income Fund.

Article Excerpt

A: We feel most mutual-fund investors should own no more than five funds. When you own a larger number of funds, you increase the risk of over-diversification, or that your portfolio will produce a return that matches the market, minus the 2% to 3% cost of fund management fees and expenses. AIC Canadian Focused Fund mostly holds high-quality large-capitalization Canadian stocks. The fund is okay to hold. Note that it holds a high 29.5% of its assets in cash. That market-timing strategy could cause it to miss out on a market rise. Altamira Equity is not one of our favourites, but it’s okay to hold as a Canadian stock fund. CI Harbour Fund is a recommendation of our Canadian Wealth Advisor newsletter. The fund is a buy. Mackenzie Cundill Value Fund invests in a range of international stocks. Its largest holdings by country are the U.S. at 25.6% and Japan at 20.9%. If you want or can accept its Japanese exposure, Mackenzie Cundill…

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