Official Short-term Investments Thread

[max_boost]

Well the hot thing seems to be Dividend funds, the holdings are similar across the board with the major banks and energy sectors. And we've seen returns of 20+% over the last few years.

I bought into TD Dividend Growth and RBC Dividend recently.

I also hold AIM Trimark Income/Growth funds as well. Now these two funds haven't been performing too well in the last few years with returns similar to GIC's. BUT since inception they are still around 9%. Their holdings are much different, the lack of gains the past few years could be attributed to them not investing in the energy sector.

[sputnik]

Originally posted by max_boost
I bought into TD Dividend Income/Growth and RBC Dividend recently.

Why did you get both funds? They are almost identical funds except with the TD fund you pay a higher management fee.

I am personally holding the BMO Dividend fund and it has a slightly higher 10 year returns and an even lower MER (0.02% lower... heh).

My dad has the Standard Life Dividend-A fund and he is doing quite well as well.

http://globefunddb.theglobeandmail.c...ND&product_id=

[Altezza]

Originally posted by ExtremeSi
so if stelco restructors and bounces back will that mean the current STE.A stock will become worthless and they will have a new stock? Is that how it works? Or will the current STE.A still hold some value?

In this particular case, shareholders aren't going to get anything. The new company will be held 34% by Tricap, 34% by hedge funds, and a small amount (like 2-3%) held by the Ontario gov't. The remainder of the shares will be held by creditors. There will be a new ticker symbol for the new issue. All old stock under STE.A becomes toilet paper.

[ExtremeSi]

Originally posted by Altezza


In this particular case, shareholders aren't going to get anything. The new company will be held 34% by Tricap, 34% by hedge funds, and a small amount (like 2-3%) held by the Ontario gov't. The remainder of the shares will be held by creditors. There will be a new ticker symbol for the new issue. All old stock under STE.A becomes toilet paper.

Well thats what scares me. Do you have any idea how long until this may happen? Should i sell immedietly? I think i will from everything i read cause its scaring me..

[max_boost]

Originally posted by sputnik


Why did you get both funds? They are almost identical funds except with the TD fund you pay a higher management fee.

I am personally holding the BMO Dividend fund and it has a slightly higher 10 year returns and an even lower MER (0.02% lower... heh).

My dad has the Standard Life Dividend-A fund and he is doing quite well as well.

http://globefunddb.theglobeandmail.c...mp;product_id=

The TD account is my gf's, so I just naturally figured if she was to apply for any future loans and needed security, TD would recongnize it since it's their fund. Basically getting her started on things

Anyway, how is the MER calculated again??

[Godfuader]

Originally posted by max_boost

Anyway, how is the MER calculated again??

MER= (fees + expenses) / average net assets

(x100 to get a percentage)

[max_boost]

^^^

Cool.

I meant how is the 2.**% taken? From when you sell? During the year? etc.

[Godfuader]

^^
From what i recall...the MER is just what the managers kept for themselves. ex: If the MER is 4.5% and your return was 9%. The actual return of the portfolio was 13.5%. someone else should be able to give you complete working details on this.

[benyl]

low risk and high gain are not two terms that go together.

[ExtremeSi]

Originally posted by benyl
low risk and high gain are not two terms that go together.

Im fully aware of that and I value low risk over a high gain in a mutal fund I'm looking for.

[sputnik]

Originally posted by max_boost


The TD account is my gf's, so I just naturally figured if she was to apply for any future loans and needed security, TD would recongnize it since it's their fund. Basically getting her started on things

Anyway, how is the MER calculated again??

Better make sure that isnt in your RRSP portfolio. You technically cant use any RRSPs as collateral or security.

[89coupe]

Originally posted by sputnik


Better make sure that isnt in your RRSP portfolio. You technically cant use any RRSPs as collateral or security.

Who told you that?

[max_boost]

Originally posted by Godfuader
^^
From what i recall...the MER is just what the managers kept for themselves. ex: If the MER is 4.5% and your return was 9%. The actual return of the portfolio was 13.5%. someone else should be able to give you complete working details on this.

You are right.
Did a quick google search and it appears the numbers we see, price, % of returns, is with the MER deductions.

So only other expense is early termination fees but since these are long term investments, shouldn't be a problem.

Originally posted by sputnik


Better make sure that isnt in your RRSP portfolio. You technically cant use any RRSPs as collateral or security.

Thanks.

[lastprodigy]

Originally posted by ExtremeSi
Speaking of mutual finds, does anyone have some good recondations for a long term RRSP mutual fund? My mom wants me to put her money in one such fund that is low risk, moderate to high gain and long term is fine.
Any advice would be helpful. I've done some reserach already I just want to hear what people have to say

I have had a good experience so far with the BMO Dividend Fund. Bought some this past may/june and has gained just a bit under 20% over 7 months, I'm not complaining.

[Altezza]

Originally posted by ExtremeSi


Well thats what scares me. Do you have any idea how long until this may happen? Should i sell immedietly? I think i will from everything i read cause its scaring me..

I hate to be the voice to bring you bad news...The writing is very clear and on the wall. The plan has been approved by creditors and the court. Current shareholders are going to be left with nothing once the restructing is complete. From that, I'm sure you can deduce what is best for you to do.

[Altezza]

Originally posted by max_boost


The TD account is my gf's, so I just naturally figured if she was to apply for any future loans and needed security, TD would recongnize it since it's their fund. Basically getting her started on things

You may run into attribution rules next year if the source of the money for this account came from you.

[roopi]

Originally posted by ExtremeSi
so if stelco restructors and bounces back will that mean the current STE.A stock will become worthless and they will have a new stock? Is that how it works? Or will the current STE.A still hold some value?

Yes exactly. When a company goes bankrupt the stock is worthless and then they issue new stock.

Example: Air Canada. It is trading again but it is completely different from the shares that were issued before bankruptcy.

Originally posted by 90s_tuner
GIC's are awesome they are guaranteed!

Yes guaranteed to grow at the same pace as inflation.

[roopi]

Investing in a fund that holds alot of Energy is volatile and considered risky. Therefore either bigger gains or bigger losses.

Just go with a well diversified fund like one of he O funds from RBC.

[max_boost]

Originally posted by Altezza


You may run into attribution rules next year if the source of the money for this account came from you.

No she works and it's her money. I am just doing all the trading for her

[djayz]

PLE going down today already...anyone that wanted to buy in today would be your chance...

unfortunately i bought in higher just yesterday

another good stock is BLE i know its shot up a lot already but theres good things coming for it. Its a molybdenum producer