Bingo. Regarding REITS many yield over 5% DIV and are outstanding inside a TFSA. There are some excellent options in the Hi-rise rental and long term care space. If you do the math properly it is hard to argue for buying physical real estate versus a REIT in a tax free account. I am not a huge fan of ETF's however they are good for a novice investor. That said, if you want to get a piece of emerging markets they are an excellent way to diversify with very low MER's. And remember Canada makes up less than 3% of global equity markets so look @ U.S. opportunities. As others have commented you need an advisor who is non-commissioned based and charges a %age of AUM, usually .5 - 1% with unlimited trading. Keep a minimum of 30-40% in cash, I'm currently 70%. Good luck finding a proper advisor and make sure you check him/her out thoroughly.
You have $800k in cash - what do you do?
- Thread starter Smallcock
- Start date
Floating rate preferred shares, green energy stocks and more
Gordon Pape, Globe and Mail
Dec 29, 2016
Several readers have written recently to ask about investing in preferred shares and the funds that hold them in the light of the current economic climate. Here are two of those questions along with two others that focus on rising interest rates.
Floating rate preferred shares
Q – With interest rates starting to rise, is this an opportunity to consider floating rate preferreds? – Gunnar A.
A – In theory, floating rate preferreds should perform well during a period of rising rates. That’s because their dividend is tied to a benchmark rate, such as prime or the yield on a government bond. When rates rise, the dividend should move higher accordingly, although there will be a delay depending on the terms of the issue. So far, of the floating rate preferreds I checked, most are showing little or no strong upward movement.
One preferred that is trending a little higher is TransCanada’s Cumulative Redeemable First Preferred Shares, Series 2 (TRP.PR.F). These shares began trading at the end of 2014 following a conversion from a previous series. They have been battered for much of the time since, hitting a low of $10.19 last February. However, they bounced back in the fall as the interest rates began to rise and are up about 45 per cent from last winter’s low.
In this case, the dividend is set each quarter at the rate of a five-year Canada bond plus 1.92 per cent. This means that as the bond yield rises, so will the dividend that investors receive. The latest quarterly payment in November was 15.28 cents per share. Over a year that would work out to a yield of 4.1 per cent. However, with rates on the rise, the dividend should increase in 2017.
Overall, floating rate preferreds should rise in price as interest rates go up, but they won’t always move in lock step. Depending on the terms of the preferred there can be a delay of as much as a year between the time rates rise and the stock dividend moves higher. – G.P.
Preferred share ETFs
Q - Our adviser recently advised us to purchase Royal Bank Preferred ETF (RPF). Is this a good investment at this time? Would ZPR (BMO preferred ETF) be a better choice? The funds for this investment are coming from the sale of Inter Pipeline, which I am also not sure was the right thing to be doing at this time. – Carolyn T.
A – No, I would not have advised selling Inter Pipeline, but what’s done is done. You are now looking at two preferred share ETFs, presumably because you want less risk with good cash flow.
RPF is a brand-new exchange-traded fund, having been launched only in September. So we have very little history to go on. The fund holds 155 rate-reset preferreds, most of which are rated Pfd-2 or Pfd-3, meaning the default risk is low. The portfolio is heavily concentrated in two sectors, financials (56.4 per cent) and energy (23.7 per cent) and is entirely invested in Canada.
Distributions are made monthly, currently at a rate of 8 cents per unit. That’s 96 cents per year, which equates to a yield of 4.4 per cent annually, based on a price of $21.61. Of course, there is no guarantee the fund will continue to pay at the same rate. The management fee is 0.53 per cent.
The BMO Laddered Preferred Share Index ETF (ZPR) has been around quite a bit longer, having been launched in November 2012. So we have four years of history to work with.
The fund tracks an index you probably never heard of, the Solactive Laddered Canadian Preferred Share Index. It includes Canadian preferred shares that meet size, liquidity, listing, and quality criteria. The index uses a five-year laddered structure, which means that one-fifth of the portfolio turns over every five years.
In terms of credit ratings, the portfolio is similar to that of the Royal Bank fund, with 98 per cent of the assets weighting Pfd-2 or Pfd-3. The sector asset weights are a little more diversified, with 40.4 per cent in financials and 24.5 per cent in oil and gas companies.
As with the Royal Bank fund, this ETF focuses on rate reset preferreds. These securities were hit badly when interest rates were falling and investors have paid the price. As of Nov. 30, the fund was showing an average annual loss of 4.7 per cent since inception, fuelled mainly by a drop of 20.2 per cent last year. It has done a little better in 2016 with a year-to-date gain of 1.7 per cent.
Distributions are made monthly and are currently 4.3 cents per unit (51.6 cents per year). It’s worth noting that BMO has reduced distributions twice since last December, when they were at 5 cents per unit. At the current rate (remember, no guarantees) the yield is 4.9 per cent based on a price of $10.63.
This fund has total assets of $1.4-billion. The maximum annual management fee is 0.45 per cent.
So which fund to choose? It’s a toss-up. Both invest in the same type of securities, rate reset preferreds, and so are likely to show similar performance statistics over time. The BMO fund has a slightly lower management fee, which may translate into a marginal advantage over the years. It also has a higher yield at present, but keep in mind management has cut the distribution twice within 12 months. – G.P.
Green energy stocks
Q - Could you please discuss the reason for the recent downtrend of green energy stocks such as Algonquin Power, TransAlta Renewables, etc.? – Peter M.
A – Blame it on Donald Trump. His election hit these stocks hard, in two ways.
For starters, the U.S. president-elect declared several times during the campaign that global warming is a hoax, dreamed up by the Chinese to destabilize U.S. industry. Since the election, he appears to be backtracking on that hardline stance, telling The New York Times in a recent interview that he is maintaining an “open mind” on the subject. But until his actions show something different, investors see him as a climate change denier who will oppose expensive green energy initiatives and work instead to retain coal-fired generating plants and restore lost mining jobs in West Virginia and Pennsylvania.
Rising commercial rates and the expectation that the U.S. Federal Reserve Board will increase its key rate in December have also hurt most interest-sensitive stocks, which include the ones you mention. There is now an expectation that Mr. Trump’s policies will stimulate growth and stoke inflation, which would have the effect of pushing rates even higher in 2017. Higher rates make safe investments like government bonds more attractive on a risk/reward basis when compared to stocks. As a result, share prices tend to drop, pushing yields higher. That’s what we’re seeing now. – G.P.
Rising interest rates
Q – If interest rates start to rise, what might be the impact on Enbridge? – Stephen B.
A – Enbridge is what we call an interest-sensitive stock. That means its price and yield tend to be affected by rate movements, up or down. Over the spring and summer, when interest rates were falling, the share price rose to a 52-week high of $59.19. The shares dropped back to below $55 after Donald Trump’s election victory sparked concerns that interest rates would rise more quickly than expected, based on his economic stimulus plans. The shares have since recovered a little since but are still below their high for the year. Going forward, rising rates will have a downward affect on the stock, however that may be offset by other factors, such as a dividend increase. – G.P.
Gordon Pape, Globe and Mail
Dec 29, 2016
Several readers have written recently to ask about investing in preferred shares and the funds that hold them in the light of the current economic climate. Here are two of those questions along with two others that focus on rising interest rates.
Floating rate preferred shares
Q – With interest rates starting to rise, is this an opportunity to consider floating rate preferreds? – Gunnar A.
A – In theory, floating rate preferreds should perform well during a period of rising rates. That’s because their dividend is tied to a benchmark rate, such as prime or the yield on a government bond. When rates rise, the dividend should move higher accordingly, although there will be a delay depending on the terms of the issue. So far, of the floating rate preferreds I checked, most are showing little or no strong upward movement.
One preferred that is trending a little higher is TransCanada’s Cumulative Redeemable First Preferred Shares, Series 2 (TRP.PR.F). These shares began trading at the end of 2014 following a conversion from a previous series. They have been battered for much of the time since, hitting a low of $10.19 last February. However, they bounced back in the fall as the interest rates began to rise and are up about 45 per cent from last winter’s low.
In this case, the dividend is set each quarter at the rate of a five-year Canada bond plus 1.92 per cent. This means that as the bond yield rises, so will the dividend that investors receive. The latest quarterly payment in November was 15.28 cents per share. Over a year that would work out to a yield of 4.1 per cent. However, with rates on the rise, the dividend should increase in 2017.
Overall, floating rate preferreds should rise in price as interest rates go up, but they won’t always move in lock step. Depending on the terms of the preferred there can be a delay of as much as a year between the time rates rise and the stock dividend moves higher. – G.P.
Preferred share ETFs
Q - Our adviser recently advised us to purchase Royal Bank Preferred ETF (RPF). Is this a good investment at this time? Would ZPR (BMO preferred ETF) be a better choice? The funds for this investment are coming from the sale of Inter Pipeline, which I am also not sure was the right thing to be doing at this time. – Carolyn T.
A – No, I would not have advised selling Inter Pipeline, but what’s done is done. You are now looking at two preferred share ETFs, presumably because you want less risk with good cash flow.
RPF is a brand-new exchange-traded fund, having been launched only in September. So we have very little history to go on. The fund holds 155 rate-reset preferreds, most of which are rated Pfd-2 or Pfd-3, meaning the default risk is low. The portfolio is heavily concentrated in two sectors, financials (56.4 per cent) and energy (23.7 per cent) and is entirely invested in Canada.
Distributions are made monthly, currently at a rate of 8 cents per unit. That’s 96 cents per year, which equates to a yield of 4.4 per cent annually, based on a price of $21.61. Of course, there is no guarantee the fund will continue to pay at the same rate. The management fee is 0.53 per cent.
The BMO Laddered Preferred Share Index ETF (ZPR) has been around quite a bit longer, having been launched in November 2012. So we have four years of history to work with.
The fund tracks an index you probably never heard of, the Solactive Laddered Canadian Preferred Share Index. It includes Canadian preferred shares that meet size, liquidity, listing, and quality criteria. The index uses a five-year laddered structure, which means that one-fifth of the portfolio turns over every five years.
In terms of credit ratings, the portfolio is similar to that of the Royal Bank fund, with 98 per cent of the assets weighting Pfd-2 or Pfd-3. The sector asset weights are a little more diversified, with 40.4 per cent in financials and 24.5 per cent in oil and gas companies.
As with the Royal Bank fund, this ETF focuses on rate reset preferreds. These securities were hit badly when interest rates were falling and investors have paid the price. As of Nov. 30, the fund was showing an average annual loss of 4.7 per cent since inception, fuelled mainly by a drop of 20.2 per cent last year. It has done a little better in 2016 with a year-to-date gain of 1.7 per cent.
Distributions are made monthly and are currently 4.3 cents per unit (51.6 cents per year). It’s worth noting that BMO has reduced distributions twice since last December, when they were at 5 cents per unit. At the current rate (remember, no guarantees) the yield is 4.9 per cent based on a price of $10.63.
This fund has total assets of $1.4-billion. The maximum annual management fee is 0.45 per cent.
So which fund to choose? It’s a toss-up. Both invest in the same type of securities, rate reset preferreds, and so are likely to show similar performance statistics over time. The BMO fund has a slightly lower management fee, which may translate into a marginal advantage over the years. It also has a higher yield at present, but keep in mind management has cut the distribution twice within 12 months. – G.P.
Green energy stocks
Q - Could you please discuss the reason for the recent downtrend of green energy stocks such as Algonquin Power, TransAlta Renewables, etc.? – Peter M.
A – Blame it on Donald Trump. His election hit these stocks hard, in two ways.
For starters, the U.S. president-elect declared several times during the campaign that global warming is a hoax, dreamed up by the Chinese to destabilize U.S. industry. Since the election, he appears to be backtracking on that hardline stance, telling The New York Times in a recent interview that he is maintaining an “open mind” on the subject. But until his actions show something different, investors see him as a climate change denier who will oppose expensive green energy initiatives and work instead to retain coal-fired generating plants and restore lost mining jobs in West Virginia and Pennsylvania.
Rising commercial rates and the expectation that the U.S. Federal Reserve Board will increase its key rate in December have also hurt most interest-sensitive stocks, which include the ones you mention. There is now an expectation that Mr. Trump’s policies will stimulate growth and stoke inflation, which would have the effect of pushing rates even higher in 2017. Higher rates make safe investments like government bonds more attractive on a risk/reward basis when compared to stocks. As a result, share prices tend to drop, pushing yields higher. That’s what we’re seeing now. – G.P.
Rising interest rates
Q – If interest rates start to rise, what might be the impact on Enbridge? – Stephen B.
A – Enbridge is what we call an interest-sensitive stock. That means its price and yield tend to be affected by rate movements, up or down. Over the spring and summer, when interest rates were falling, the share price rose to a 52-week high of $59.19. The shares dropped back to below $55 after Donald Trump’s election victory sparked concerns that interest rates would rise more quickly than expected, based on his economic stimulus plans. The shares have since recovered a little since but are still below their high for the year. Going forward, rising rates will have a downward affect on the stock, however that may be offset by other factors, such as a dividend increase. – G.P.
Bad adviser behaviour coming to light thanks to new disclosure rules
Rob Carrick, the Globe and Mail
Jan 27, 2017
New disclosure requirements for investment returns and advice fees seem to have energized people to take a closer look at their finances.
Statements arriving this month should include an account in dollar terms of fees paid for investment advice, and personalized returns for at least the past year. People in the investment industry are expecting this new information to leave some investors agitated, and early indications suggest this is happening in a very broad sense. Everything advisers are doing is being scrutinized. Here are a few quick examples from this month’s crop of reader e-mails:
Unclear fees
One reader contacted me recently about the fees charged by her adviser. What stuck out was not the amount of the fees so much as the nonsensically complex way they were presented to the client. Different percentage fees for bonds, stocks and mutual funds. This reader couldn’t get a handle on the total percentage fees for her various accounts, and neither could I. Fees expressed in dollars are a welcome addition to account statements, but people also need a clear, all-in fee expressed in percentage terms. Demand both from your adviser.
Deferred Sales Charge Mutual Funds
There has been a long, steady drop in the sales of DSC funds, which charge a gradually declining redemption fee if you sell it in the six or so years after buying. But some advisers cling to this noxious sales option. I recently heard from one investor who claims to have been sold a DSC money market fund, an unconscionable thing for an adviser to do if you accept that money market funds are temporary parking spots only. DSC funds are a vestige of a more predatory time in the investment industry. They have no place in today’s portfolios.
Treating clients like chumps
This is a relatively benign example, but it does serve to remind clients to verify what their adviser says if there any doubts. A reader contacted me a couple of weeks to ask where to find total return data (dividends plus share price changes) for major stock indexes. This individual had been told by some investing “pros” that total return data is hard to find. Wrong. It’s easy to find. You only say it’s tough to locate if you’re trying to hide how weak your results are as an adviser.
Rob Carrick, the Globe and Mail
Jan 27, 2017
New disclosure requirements for investment returns and advice fees seem to have energized people to take a closer look at their finances.
Statements arriving this month should include an account in dollar terms of fees paid for investment advice, and personalized returns for at least the past year. People in the investment industry are expecting this new information to leave some investors agitated, and early indications suggest this is happening in a very broad sense. Everything advisers are doing is being scrutinized. Here are a few quick examples from this month’s crop of reader e-mails:
Unclear fees
One reader contacted me recently about the fees charged by her adviser. What stuck out was not the amount of the fees so much as the nonsensically complex way they were presented to the client. Different percentage fees for bonds, stocks and mutual funds. This reader couldn’t get a handle on the total percentage fees for her various accounts, and neither could I. Fees expressed in dollars are a welcome addition to account statements, but people also need a clear, all-in fee expressed in percentage terms. Demand both from your adviser.
Deferred Sales Charge Mutual Funds
There has been a long, steady drop in the sales of DSC funds, which charge a gradually declining redemption fee if you sell it in the six or so years after buying. But some advisers cling to this noxious sales option. I recently heard from one investor who claims to have been sold a DSC money market fund, an unconscionable thing for an adviser to do if you accept that money market funds are temporary parking spots only. DSC funds are a vestige of a more predatory time in the investment industry. They have no place in today’s portfolios.
Treating clients like chumps
This is a relatively benign example, but it does serve to remind clients to verify what their adviser says if there any doubts. A reader contacted me a couple of weeks to ask where to find total return data (dividends plus share price changes) for major stock indexes. This individual had been told by some investing “pros” that total return data is hard to find. Wrong. It’s easy to find. You only say it’s tough to locate if you’re trying to hide how weak your results are as an adviser.
Talking to a financial expert is inane advice?Timbit,
Yours is the best and most prudent piece of advice of all of the inane posts on this thread.
BMO reveals its top REIT picks for 2017
JENNIFER DOWTY, Globe and Mail
Jan 27, 2017
On Friday, BMO Nesbitt Burns real estate analysts Heather Kirk and Troy MacLean released their eight top real estate picks for 2017.
Before diving into individual names, let’s have a look at their overall outlook for the industry.
They noted several headwinds for the group such as rising bond yields, earnings deceleration, and reasonable valuations.
Many investors in this sector are concerning with the rising interest rate environment. The analysts noted, “Although interest rates have risen materially from their bottom in 2016, a 10-year bond yield below 2 per cent remains supportive of real estate values and favourable for refinancing activity for the majority of REIT’s”.
They believe interest rates increases will be modest, given their moderate Canadian economic growth outlook. BMO's economics team is forecasting 2-per-cent real GDP growth for 2017 and 1.8-per-cent growth for 2018.
A second challenge highlighted is the lack of earnings momentum.
“REIT earnings growth has been in a downtrend since 2012 and moved into negative territory in Q3/2016 (the third quarter of 2016) due to slowing organic growth, capital recycling, declining interest rate savings on debt refinancing, and higher capex spending.”
That being said, they do expect some resumption of earnings growth in the second half of this year.
Valuations are also a concern with the group trading close to the long-term average.
The analysts favour real estate securities with solid earnings growth forecast. Listed below are their top picks for 2017, broken down by their respective exposures.
Apartments
For investors looking in the apartment space, two REITs are recommended.
InterRent REIT (IIP.UN-T) has the larger expected total return of the two investment ideas. The analyst has a target price of $9, suggesting a potential total return of 27 per cent, which includes the yield of 3.4 per cent.
Killam Properties REIT (KMP-T) is the other top pick. The analyst has a target price of $13.50, implying a potential total return of 18 per cent, which includes the yield of 5 per cent.
Grocery anchored and diversified retail
Starting with the security with the highest forecast total return in this space is Slate Retail REIT (SRT.U-T). The analyst has a target price of $13 (U.S.). Combined with Slate’s attractive yield of over 7 per cent, the anticipated total return is 28 per cent.
RioCan Real Estate Investment Trust (REI.UN-T) has an total forecast return of 20 per cent, which includes a 5.4 per cent yield. The target price is $30.
Rounding out the list is First Capital Realty Inc. (FCR-T), which develops and manages properties across Canada with a focus on retail properties located in urban areas. Among its largest tenants in terms of annualized minimum rent are Loblaws, Sobeys, Metro, Walmart and Canadian Tire. The analyst has a total expected return of 18 per cent, which includes a 4-per-cent yield.
Senior living
With a target price of U.S. $11.50, the analyst believes small cap stock, Mainstreet Health Investments Inc. (HLP.U-T) has 29-per-cent upside potential, including its attractive 7.8-per-cent yield.
Also making the list is the largest owner and operator of senior residences in Canada, Chartwell Retirement Residences (CSH.UN-T). The analyst is forecasting a potential total return of 16 per cent, which includes a 3.8 per cent yield.
Diversified
H&R Real Estate Investment Trust (HR.UN-T) holds a diversified real estate portfolio with 156 retail properties, 102 industrial properties, 38 office properties, 10 residential properties, and four development projects. The analyst has a target price of $26, implying a potential total return of 22 per cent, which includes a 6.2 per cent yield.
JENNIFER DOWTY, Globe and Mail
Jan 27, 2017
On Friday, BMO Nesbitt Burns real estate analysts Heather Kirk and Troy MacLean released their eight top real estate picks for 2017.
Before diving into individual names, let’s have a look at their overall outlook for the industry.
They noted several headwinds for the group such as rising bond yields, earnings deceleration, and reasonable valuations.
Many investors in this sector are concerning with the rising interest rate environment. The analysts noted, “Although interest rates have risen materially from their bottom in 2016, a 10-year bond yield below 2 per cent remains supportive of real estate values and favourable for refinancing activity for the majority of REIT’s”.
They believe interest rates increases will be modest, given their moderate Canadian economic growth outlook. BMO's economics team is forecasting 2-per-cent real GDP growth for 2017 and 1.8-per-cent growth for 2018.
A second challenge highlighted is the lack of earnings momentum.
“REIT earnings growth has been in a downtrend since 2012 and moved into negative territory in Q3/2016 (the third quarter of 2016) due to slowing organic growth, capital recycling, declining interest rate savings on debt refinancing, and higher capex spending.”
That being said, they do expect some resumption of earnings growth in the second half of this year.
Valuations are also a concern with the group trading close to the long-term average.
The analysts favour real estate securities with solid earnings growth forecast. Listed below are their top picks for 2017, broken down by their respective exposures.
Apartments
For investors looking in the apartment space, two REITs are recommended.
InterRent REIT (IIP.UN-T) has the larger expected total return of the two investment ideas. The analyst has a target price of $9, suggesting a potential total return of 27 per cent, which includes the yield of 3.4 per cent.
Killam Properties REIT (KMP-T) is the other top pick. The analyst has a target price of $13.50, implying a potential total return of 18 per cent, which includes the yield of 5 per cent.
Grocery anchored and diversified retail
Starting with the security with the highest forecast total return in this space is Slate Retail REIT (SRT.U-T). The analyst has a target price of $13 (U.S.). Combined with Slate’s attractive yield of over 7 per cent, the anticipated total return is 28 per cent.
RioCan Real Estate Investment Trust (REI.UN-T) has an total forecast return of 20 per cent, which includes a 5.4 per cent yield. The target price is $30.
Rounding out the list is First Capital Realty Inc. (FCR-T), which develops and manages properties across Canada with a focus on retail properties located in urban areas. Among its largest tenants in terms of annualized minimum rent are Loblaws, Sobeys, Metro, Walmart and Canadian Tire. The analyst has a total expected return of 18 per cent, which includes a 4-per-cent yield.
Senior living
With a target price of U.S. $11.50, the analyst believes small cap stock, Mainstreet Health Investments Inc. (HLP.U-T) has 29-per-cent upside potential, including its attractive 7.8-per-cent yield.
Also making the list is the largest owner and operator of senior residences in Canada, Chartwell Retirement Residences (CSH.UN-T). The analyst is forecasting a potential total return of 16 per cent, which includes a 3.8 per cent yield.
Diversified
H&R Real Estate Investment Trust (HR.UN-T) holds a diversified real estate portfolio with 156 retail properties, 102 industrial properties, 38 office properties, 10 residential properties, and four development projects. The analyst has a target price of $26, implying a potential total return of 22 per cent, which includes a 6.2 per cent yield.
That's true BUT the credit cards are running dry down here... living/seeing it first hand... just went out for lunch for 2 - lamb chops, lobster tail, 2 glasses of wine, appetizer - $80... is it a steal no - but the woman was half my age and spent the afternoon in bed together... just sayin...
Inflation in Colombia has been reported to be 8.1% around the middle of
2016 which is lower than in the previous year. A 10.5% yield is still better
than what you can earn from a 3--5 yr GIC in Canada but not by much.
National Bank reveals its top 27 dividend picks for 2017
JENNIFER DOWTY, Globe and Mail
Feb 01, 2017
On Tuesday, National Bank Financial released it recommended list of 27 dividend investment ideas for 2017.
Broken down into 10 sector exposures, the 27 income-paying securities are highlighted below:
Power stocks
The forecasted total returns are impressive in this category with two stocks anticipated to deliver over 30-per-cent gains. Three stocks are highlighted in this category, Algonquin Power and Utilities Corp. (AQN-T), Capital Power Corp. (CPX-T), and Innergex Renewable Energy Inc. (INE-T).
Of the three securities, the stock with the greatest potential total return forecast is Innergex Renewable Energy Inc. Analyst Rupert Merer has a target price of $18, equating to a potential gain of 35 per cent. The analyst noted the company’s “stable business model with relatively low risk”. The dividend yield is currently 4.7 per cent.
The expected gain for Algonguin Power and Utilities is also stellar. APUC provides rate regulated utilities such as water, electricity, and natural gas utility services to its customers. Analyst Rupert Merer has a target price of $14.50, implying a potential total return of 33 per cent, which includes a sustainable dividend, yielding over 5 per cent. The analyst estimates that the payout ratio will be 52 per cent in 2017.
Analyst Patrick Kenny forecasts a potential total return of nearly 25 per cent for Capital Power, which includes an attractive dividend, yielding over 6 per cent. His target price is $29. The analyst indicates there is potential, “20 per cent bluesky upside” from “new renewables and gas-fired investment required in Alberta by 2030”.
Real estate securities
First off, in the real estate sector, there are seven securities identified.
American Hotels Income Properties (HOT.UN-T) is a recommended security by analyst Trevor Johnson. He has a target price of $12.50, implying a potential total return of 28 per cent.
American Hotel Income Properties REIT LP, or AHIP, has a portfolio of hotel properties located across the United States and is focused on owning and acquiring hotels in secondary markets that are located in high traffic areas in close proximity to transportation, such as railroads, airports, and highways. Its portfolio is divided into two segments, railroad hotels and branded hotels. Railway hotels have an attractive feature – lodging contracts spanning over a number of years in which rail guestrooms are guaranteed. The yield is attractive at 8 per cent. The AFFO (adjusted funds from operations) payout ratio is forecast at 73 per cent based on his 2017 estimate. His FFO (funds from operations) per unit estimate is 95 cents (U.S.) in 2016, rising to $1.03 in 2017. His AFFO per unit forecasts are 83 cents for 2016 and 89 cents for the following year.
Analyst Matt Kornack, has an “outperform” recommendation on H&R REIT (HR.UN-T). He notes the attractive yield of 6 per cent, conservative AFFO payout ratio of 82.5 per cent, and the REIT’s reasonable valuation, with the units trading at a discount to its net asset value. His FFO per unit estimates are $1.83 in 2016, $1.85 in 2017 and $1.96 in 2018. His target price of $25.75 implies a potential total return of 21 per cent.
Analyst Dawoon Chung forecasts a total return of 21 per cent for Killam Apartment REIT (KMP.UN-T). Halifax-based Killam, operates a portfolio of multi-family apartments and manufactured home communities. The company has operations in Alberta, Ontario, New Brunswick, Newfoundland, Nova Scotia, and Prince Edward Island. The analyst noted Killam’s market leadership in Atlantic Canada and stated,: “According to the Conference Board of Canada, in 2017 Halifax is expected to be the third fastest growing metropolitan area from a real GDP standpoint at 2.5 per cent.” The yield is 5 per cent and the AFFO payout ratio is 74 per cent based on the analyst’s 2017 estimate. The analyst forecasts FFO per unit growth of 3 per cent in 2017.
Analyst Matt Kornack has an ‘outperform’ recommendation on Pure Industrial Real Estate Trust (AAR.UN-T) with a target price of $6, and total return of 13-per-cent forecast. This includes the yield of over 5 per cent. The upside potential is limited relative to his other recommendations. He notes that the REIT is trading close to its net asset value.
For investors wanting exposure to the U.S. market, Mr. Kornack recommends Pure Multi-Family REIT (RUF.UN-X). Pure Multi-Family holds a portfolio of U.S. multi-family real estate assets. His target price is $7 (U.S.), suggesting a potential total return of 13.5 per cent, which includes a yield of approximately 6 per cent. He notes the distribution is paid out in U.S. dollars and the AFFO payout ratio is 86 per cent based on his 2017 forecast. In addition, the REIT trades at roughly a 6-per-cent discount to its net asset value.
Analyst Trevor Johnson sees a “favourable combination of income and growth” for unitholders of SmartREIT (SRU.UN-T). He has a target price of $36, implying a total return of 18.8 per cent, including a distribution yield of over 5 per cent. He believes a premium valuation is warranted for this REIT given its “concentration of Walmart locations, near full occupancy, deep development pipeline, sustainable yield and aforementioned capacity for further distribution increases.”
Mr. Johnson recommends WPT Industrial REIT (WIR.U-T). He has a target price of $13 (U.S.), suggesting a potential total return of 15 per cent. He said: “WPT is the only Canadian REIT offering investors exclusive access to the U.S. industrial space.” He added: “The REIT’s portfolio remains nearly fully occupied at approximately 99 per cent, while its top 10 tenants are comprised of key e-commerce players including Amazon and Zulily.” The REIT offers unitholders a monthly distribution of 6.33 cents (U.S.) per unit.
Energy sector
Three stocks are recommended in this sector. Let’s beginning with the stock with the highest forecast gain.
Analyst Rupert Merer has an impressive 40-per-cent projected total return for shares of Pattern Energy Group (PEG-T). His target price is $26 (U.S.). The company offers shareholders a compelling dividend yield of over 8 per cent. He notes the company’s defensive attributes, stating “PEGI is comprised of wind assets, primarily in the United States which have an average PPA (power purchase agreement) length of about 14 years. Approximately 90 per cent of generation is under fixed-price PPAs with credit worthy off-takers.”
Next up is Vermillion Energy Inc. (VET-T) with a forecasted total return of 27 per cent, which includes a dividend yield of approximately 4.8 per cent. Analyst Travis Wood has a target price of $66. He believes the company can “deliver a five-year production compound annual growth rate of 9.5 per cent.”
Analyst Greg Colman recommends Pason Systems Inc. (PSI-T). The analyst has a target price of $22.50, implying a potential total return of 17 per cent. It offers investors a dividend yield of over 3 per cent. While the current payout ratio is above 100 per cent, the analyst is forecasting a payout ratio of 86 per cent in 2017.
Pipeline/Utilities
Analyst Patrick Kenny has two picks in this segment, Keyera Corp. (KEY-T) and Veresen Inc. (VSN-T).
He has a target price of $49 on Keyera, implying a potential total return of over 28 per cent, including a yield of 4 per cent. He is forecasting the dividend to expand by 8 per cent per year from mid-2017 through mid-2019.
Veresen offers investors a dividend yield over 7 per cent. He remarked: “Although we do not forecast any dividend upside through out forecast, we highlight a significantly improved long-term dividend sustainability picture.” He has a target price of $17, suggesting a potential total return of over 33 per cent.
Infrastructure
Analyst Maxim Sytchev has an “outperform” recommendation on Bird Construction Inc. (BDT-T) with a target price of $12, implying a potential gain of 36 per cent. In November, the company announced a 48.7-per-cent cut to its monthly dividend, trimming it to 39 cents per share annually from 76 cents per share. The analyst said: “While it feels like we are trying to catch a falling knife here, we want to urge investors to once again take a look at the company’s balance sheet: as of Q3/16 the company had $4.48 in net cash.”
Analyst Rupert Merer recommends Brookfield Infrastructure Partners (BIP.UN-T) to income investors. He has a target price of $38 (U.S.) and total return forecast of 11 per cent. The security is an attractive investment for conservative investors seeking reliable income given, “approximately 90 per cent of BIP’s assets are regulated or contracted, providing longer-term cash flow stability. BIP also has about 70 per cent of its revenue indexed to inflation.” The stock offers investors a yield of over 4 per cent.
Telecom
Analyst Adam Shine has a conservative gain forecast for shares of Rogers Communications Inc. (RCI.B-T), calling for a potential total return of over 12 per cent. He anticipates dividend hikes will resume, potentially in the second half of this year. The yield is currently over 3 per cent. The stock’s valuation also has the potential to expand. Shares of Rogers currently trade a discount relative to its peers BCE, Telus and Shaw. His target price is $62.
Transportation
Analyst Trevor Johnson targets a 30-per-cent total return for shareholders of Exchange Income Corporation (EIF-T), noting the company’s potential to complete future accretive acquisitions. His target price is $50. The dividend yield is over 5 per cent.
Analyst Greg Colman favours Student Transportation Inc. (STB-T) and has a target price of $8.50, implying a total return of 24 per cent. The dividend yield is very attractive at 8 per cent, paid in U.S. dollars, and sustainable according to Mr. Colman. He forecasts the payout ratio will dip to 53 per cent in fiscal 2017, down from 70 per cent in fiscal 2016.
Financial stocks
Turning to the financial sector, analyst Jaeme Gloyn highlighted three stocks: First National Financial Corp. (FN-T), MCAN Mortgage Corp. (MKP-T), and Timbercreek Financial Corp. (TF-T).
Total return expectations for MCAN Mortgage and First National are both conservative as the analyst views the share prices as fully valued. For MCAN, the analyst’s target price is $14.50, suggesting a potential total return of 5 per cent, driven by its yield. For First National, the analyst has a 3-per-cent total return forecast and target price of $28. However, the analyst notes the dividend yield is attractive at 5.9 per cent, and the payout ratio is approximately 59 per cent in 2017.
The analyst is currently restricted on Timbercreek Financial given its recently announced $40-million bought deal offering, so no target price is provided. However, the analyst suggests the attractive yield of over 7 per cent is sustainable with room to grow.
Industrial
Analyst Greg Colman is currently restricted on Ag Growth International Inc. (AFN-T) given its recent $60-million bought deal equity financing, and, as a result, he cannot disclose his target price.
Diversified category
Lastly, in the diversified category are three securities.
Enercare Inc. (ECI-T) is covered by Trevor Johnson. He has a target price of $22.50, implying a total return of 26 per cent, which includes a 5-per-cent dividend yield. Toronto-based Enercare provides water heaters, furnaces, air conditioners and HVAC (heating, ventilation, and air conditioning) rental products, as well as services such as protection plans to its customers. In addition, EnerCare owns EnerCare Connections, a leading sub-meter provider for apartments and condominiums, and through its Triacta division, manufactures sub-meters. Enercare has operations in across North America. The analyst believes further expansion in the U.S. represents a growth opportunity for the company.
Analyst Leon Aghazarian recommends shares of industry leader, KP Tissue Inc. (KPT-T) to income investors. KP Tissue manufactures and markets tissue products, such as bathroom tissues, facial tissues, and paper towels under popular brands such as Cashmere bathroom tissue, Purex bathroom tissue, Scotties facial tissues, White Swan, and White Cloud. He has a target price of $18, implying a potential total return of 21 per cent. The stock offers investors a dividend yield of approximately 4.7 per cent.
Rounding out the list is Crius Energy Trust (KWH.UN-T). Analyst Trevor Johnson has a target price of $10.50, implying a potential total return of 27 per cent and offering investors a yield of over 8 per cent. The analyst believes the valuation is cheap on a price-to-cash flow basis, with room for multiple expansion.
JENNIFER DOWTY, Globe and Mail
Feb 01, 2017
On Tuesday, National Bank Financial released it recommended list of 27 dividend investment ideas for 2017.
Broken down into 10 sector exposures, the 27 income-paying securities are highlighted below:
Power stocks
The forecasted total returns are impressive in this category with two stocks anticipated to deliver over 30-per-cent gains. Three stocks are highlighted in this category, Algonquin Power and Utilities Corp. (AQN-T), Capital Power Corp. (CPX-T), and Innergex Renewable Energy Inc. (INE-T).
Of the three securities, the stock with the greatest potential total return forecast is Innergex Renewable Energy Inc. Analyst Rupert Merer has a target price of $18, equating to a potential gain of 35 per cent. The analyst noted the company’s “stable business model with relatively low risk”. The dividend yield is currently 4.7 per cent.
The expected gain for Algonguin Power and Utilities is also stellar. APUC provides rate regulated utilities such as water, electricity, and natural gas utility services to its customers. Analyst Rupert Merer has a target price of $14.50, implying a potential total return of 33 per cent, which includes a sustainable dividend, yielding over 5 per cent. The analyst estimates that the payout ratio will be 52 per cent in 2017.
Analyst Patrick Kenny forecasts a potential total return of nearly 25 per cent for Capital Power, which includes an attractive dividend, yielding over 6 per cent. His target price is $29. The analyst indicates there is potential, “20 per cent bluesky upside” from “new renewables and gas-fired investment required in Alberta by 2030”.
Real estate securities
First off, in the real estate sector, there are seven securities identified.
American Hotels Income Properties (HOT.UN-T) is a recommended security by analyst Trevor Johnson. He has a target price of $12.50, implying a potential total return of 28 per cent.
American Hotel Income Properties REIT LP, or AHIP, has a portfolio of hotel properties located across the United States and is focused on owning and acquiring hotels in secondary markets that are located in high traffic areas in close proximity to transportation, such as railroads, airports, and highways. Its portfolio is divided into two segments, railroad hotels and branded hotels. Railway hotels have an attractive feature – lodging contracts spanning over a number of years in which rail guestrooms are guaranteed. The yield is attractive at 8 per cent. The AFFO (adjusted funds from operations) payout ratio is forecast at 73 per cent based on his 2017 estimate. His FFO (funds from operations) per unit estimate is 95 cents (U.S.) in 2016, rising to $1.03 in 2017. His AFFO per unit forecasts are 83 cents for 2016 and 89 cents for the following year.
Analyst Matt Kornack, has an “outperform” recommendation on H&R REIT (HR.UN-T). He notes the attractive yield of 6 per cent, conservative AFFO payout ratio of 82.5 per cent, and the REIT’s reasonable valuation, with the units trading at a discount to its net asset value. His FFO per unit estimates are $1.83 in 2016, $1.85 in 2017 and $1.96 in 2018. His target price of $25.75 implies a potential total return of 21 per cent.
Analyst Dawoon Chung forecasts a total return of 21 per cent for Killam Apartment REIT (KMP.UN-T). Halifax-based Killam, operates a portfolio of multi-family apartments and manufactured home communities. The company has operations in Alberta, Ontario, New Brunswick, Newfoundland, Nova Scotia, and Prince Edward Island. The analyst noted Killam’s market leadership in Atlantic Canada and stated,: “According to the Conference Board of Canada, in 2017 Halifax is expected to be the third fastest growing metropolitan area from a real GDP standpoint at 2.5 per cent.” The yield is 5 per cent and the AFFO payout ratio is 74 per cent based on the analyst’s 2017 estimate. The analyst forecasts FFO per unit growth of 3 per cent in 2017.
Analyst Matt Kornack has an ‘outperform’ recommendation on Pure Industrial Real Estate Trust (AAR.UN-T) with a target price of $6, and total return of 13-per-cent forecast. This includes the yield of over 5 per cent. The upside potential is limited relative to his other recommendations. He notes that the REIT is trading close to its net asset value.
For investors wanting exposure to the U.S. market, Mr. Kornack recommends Pure Multi-Family REIT (RUF.UN-X). Pure Multi-Family holds a portfolio of U.S. multi-family real estate assets. His target price is $7 (U.S.), suggesting a potential total return of 13.5 per cent, which includes a yield of approximately 6 per cent. He notes the distribution is paid out in U.S. dollars and the AFFO payout ratio is 86 per cent based on his 2017 forecast. In addition, the REIT trades at roughly a 6-per-cent discount to its net asset value.
Analyst Trevor Johnson sees a “favourable combination of income and growth” for unitholders of SmartREIT (SRU.UN-T). He has a target price of $36, implying a total return of 18.8 per cent, including a distribution yield of over 5 per cent. He believes a premium valuation is warranted for this REIT given its “concentration of Walmart locations, near full occupancy, deep development pipeline, sustainable yield and aforementioned capacity for further distribution increases.”
Mr. Johnson recommends WPT Industrial REIT (WIR.U-T). He has a target price of $13 (U.S.), suggesting a potential total return of 15 per cent. He said: “WPT is the only Canadian REIT offering investors exclusive access to the U.S. industrial space.” He added: “The REIT’s portfolio remains nearly fully occupied at approximately 99 per cent, while its top 10 tenants are comprised of key e-commerce players including Amazon and Zulily.” The REIT offers unitholders a monthly distribution of 6.33 cents (U.S.) per unit.
Energy sector
Three stocks are recommended in this sector. Let’s beginning with the stock with the highest forecast gain.
Analyst Rupert Merer has an impressive 40-per-cent projected total return for shares of Pattern Energy Group (PEG-T). His target price is $26 (U.S.). The company offers shareholders a compelling dividend yield of over 8 per cent. He notes the company’s defensive attributes, stating “PEGI is comprised of wind assets, primarily in the United States which have an average PPA (power purchase agreement) length of about 14 years. Approximately 90 per cent of generation is under fixed-price PPAs with credit worthy off-takers.”
Next up is Vermillion Energy Inc. (VET-T) with a forecasted total return of 27 per cent, which includes a dividend yield of approximately 4.8 per cent. Analyst Travis Wood has a target price of $66. He believes the company can “deliver a five-year production compound annual growth rate of 9.5 per cent.”
Analyst Greg Colman recommends Pason Systems Inc. (PSI-T). The analyst has a target price of $22.50, implying a potential total return of 17 per cent. It offers investors a dividend yield of over 3 per cent. While the current payout ratio is above 100 per cent, the analyst is forecasting a payout ratio of 86 per cent in 2017.
Pipeline/Utilities
Analyst Patrick Kenny has two picks in this segment, Keyera Corp. (KEY-T) and Veresen Inc. (VSN-T).
He has a target price of $49 on Keyera, implying a potential total return of over 28 per cent, including a yield of 4 per cent. He is forecasting the dividend to expand by 8 per cent per year from mid-2017 through mid-2019.
Veresen offers investors a dividend yield over 7 per cent. He remarked: “Although we do not forecast any dividend upside through out forecast, we highlight a significantly improved long-term dividend sustainability picture.” He has a target price of $17, suggesting a potential total return of over 33 per cent.
Infrastructure
Analyst Maxim Sytchev has an “outperform” recommendation on Bird Construction Inc. (BDT-T) with a target price of $12, implying a potential gain of 36 per cent. In November, the company announced a 48.7-per-cent cut to its monthly dividend, trimming it to 39 cents per share annually from 76 cents per share. The analyst said: “While it feels like we are trying to catch a falling knife here, we want to urge investors to once again take a look at the company’s balance sheet: as of Q3/16 the company had $4.48 in net cash.”
Analyst Rupert Merer recommends Brookfield Infrastructure Partners (BIP.UN-T) to income investors. He has a target price of $38 (U.S.) and total return forecast of 11 per cent. The security is an attractive investment for conservative investors seeking reliable income given, “approximately 90 per cent of BIP’s assets are regulated or contracted, providing longer-term cash flow stability. BIP also has about 70 per cent of its revenue indexed to inflation.” The stock offers investors a yield of over 4 per cent.
Telecom
Analyst Adam Shine has a conservative gain forecast for shares of Rogers Communications Inc. (RCI.B-T), calling for a potential total return of over 12 per cent. He anticipates dividend hikes will resume, potentially in the second half of this year. The yield is currently over 3 per cent. The stock’s valuation also has the potential to expand. Shares of Rogers currently trade a discount relative to its peers BCE, Telus and Shaw. His target price is $62.
Transportation
Analyst Trevor Johnson targets a 30-per-cent total return for shareholders of Exchange Income Corporation (EIF-T), noting the company’s potential to complete future accretive acquisitions. His target price is $50. The dividend yield is over 5 per cent.
Analyst Greg Colman favours Student Transportation Inc. (STB-T) and has a target price of $8.50, implying a total return of 24 per cent. The dividend yield is very attractive at 8 per cent, paid in U.S. dollars, and sustainable according to Mr. Colman. He forecasts the payout ratio will dip to 53 per cent in fiscal 2017, down from 70 per cent in fiscal 2016.
Financial stocks
Turning to the financial sector, analyst Jaeme Gloyn highlighted three stocks: First National Financial Corp. (FN-T), MCAN Mortgage Corp. (MKP-T), and Timbercreek Financial Corp. (TF-T).
Total return expectations for MCAN Mortgage and First National are both conservative as the analyst views the share prices as fully valued. For MCAN, the analyst’s target price is $14.50, suggesting a potential total return of 5 per cent, driven by its yield. For First National, the analyst has a 3-per-cent total return forecast and target price of $28. However, the analyst notes the dividend yield is attractive at 5.9 per cent, and the payout ratio is approximately 59 per cent in 2017.
The analyst is currently restricted on Timbercreek Financial given its recently announced $40-million bought deal offering, so no target price is provided. However, the analyst suggests the attractive yield of over 7 per cent is sustainable with room to grow.
Industrial
Analyst Greg Colman is currently restricted on Ag Growth International Inc. (AFN-T) given its recent $60-million bought deal equity financing, and, as a result, he cannot disclose his target price.
Diversified category
Lastly, in the diversified category are three securities.
Enercare Inc. (ECI-T) is covered by Trevor Johnson. He has a target price of $22.50, implying a total return of 26 per cent, which includes a 5-per-cent dividend yield. Toronto-based Enercare provides water heaters, furnaces, air conditioners and HVAC (heating, ventilation, and air conditioning) rental products, as well as services such as protection plans to its customers. In addition, EnerCare owns EnerCare Connections, a leading sub-meter provider for apartments and condominiums, and through its Triacta division, manufactures sub-meters. Enercare has operations in across North America. The analyst believes further expansion in the U.S. represents a growth opportunity for the company.
Analyst Leon Aghazarian recommends shares of industry leader, KP Tissue Inc. (KPT-T) to income investors. KP Tissue manufactures and markets tissue products, such as bathroom tissues, facial tissues, and paper towels under popular brands such as Cashmere bathroom tissue, Purex bathroom tissue, Scotties facial tissues, White Swan, and White Cloud. He has a target price of $18, implying a potential total return of 21 per cent. The stock offers investors a dividend yield of approximately 4.7 per cent.
Rounding out the list is Crius Energy Trust (KWH.UN-T). Analyst Trevor Johnson has a target price of $10.50, implying a potential total return of 27 per cent and offering investors a yield of over 8 per cent. The analyst believes the valuation is cheap on a price-to-cash flow basis, with room for multiple expansion.
How about the "BMO Blue Chip GIC":
https://www.bmo.com/main/personal/i...bmo-progressive-gics/bmo-blue-chip-gic&#rates
Locked in for 5 years, the principal is safe, 1% is guaranteed & profits are 100% of the increase.
https://www.bmo.com/main/personal/i...bmo-progressive-gics/bmo-blue-chip-gic&#rates
Locked in for 5 years, the principal is safe, 1% is guaranteed & profits are 100% of the increase.
An older article on the fund - http://www.theglobeandmail.com/glob...estors-cant-have-it-both-ways/article4083975/ . Is it still setup the same way?How about the "BMO Blue Chip GIC":
https://www.bmo.com/main/personal/i...bmo-progressive-gics/bmo-blue-chip-gic&#rates
Locked in for 5 years, the principal is safe, 1% is guaranteed & profits are 100% of the increase.
Thanks for the article.An older article on the fund - http://www.theglobeandmail.com/glob...estors-cant-have-it-both-ways/article4083975/ . Is it still setup the same way?
Both offer 0.20% guaranteed per year.
One is for 1 year, the other 5 years.
One can make an additional 4%, the other 100%.
Post 41 at the following url compares a different BMO GIC with a ETF:
https://perb.cc/vbulletin/showthrea...a-million-dollars/page3&p=1766342#post1766342
What Bassett said.I would use the money to buy two condos worth $400,000 each. Then rent them out (assuming you already own a home that you live in). You should be able to get at least $2000 in rent per month for each of them, likely more. So that's an income of $4000 per month = $48,000 per year. So you make the $800k back in 17 years, just from rent alone, not counting the money you'd get when you resell the condos. Of course there are taxes to take into account though so the math is not really that simple.
Investing in real estate appeals to me because even if the world sinks into the a deep recession, you'll still have a place to live and another place to sell or rent out. No matter how messed up the economy gets people are always going to need a place to live.
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OP... here's what you do...
I strongly recommend this guy:
http://mangrovewealthgroup.com/carlos-flores/
Manages the money of many of the GTA's elite (a portfolio in excess of $11 billion the last I heard).
I strongly recommend this guy:
http://mangrovewealthgroup.com/carlos-flores/
Manages the money of many of the GTA's elite (a portfolio in excess of $11 billion the last I heard).
Ive just invested in a portfolio of crypto securities containing cryptocurrencies, ICOs (initial coin offerings, similiar to IPOs), Loans of bitcoins at high rates to individuals/businesses and etc everything to do with cryptos.
It's a very risky portfolio and would not suite for everyone, however, the idea is that 1 out of 10 investments at $100 will eventually generate 100 times more, i.e. $10,000 (obviously tho there are much more securities than just 10).Therefore, even if the entire portfolio will go bust, i.e. 9 securities would lose value altogether, the one that will boom will be make profit at $9,100 anw.
It wouldn't exactly suite your entire portfolio as you would to invest more into fixed income securities to preserve your capital; however, such risky crypto portofolio on the other hand would suit ppl who are trying to build up principal to invest the same way you do, i.e. say 10,000 can be generated from $100 per person x 10 ppl, therefore, next round ppl can invest $1,000 each and hope to make perhaps $100,000 as obviously cryptos would be booming but not that fast.
there is a lock in period though btw as the investment manager has a long-term view and with cryptos going up and down like crazy, the investors who would see the bitcoin going down say 50% might want the money out and potentially might regret it after another 6 months; however, from investment managers perspective that would totally destroy investment managers strategy if he would have to sell security way too cheap, at a wrong time or just before the play is due.
It's a very risky portfolio and would not suite for everyone, however, the idea is that 1 out of 10 investments at $100 will eventually generate 100 times more, i.e. $10,000 (obviously tho there are much more securities than just 10).Therefore, even if the entire portfolio will go bust, i.e. 9 securities would lose value altogether, the one that will boom will be make profit at $9,100 anw.
It wouldn't exactly suite your entire portfolio as you would to invest more into fixed income securities to preserve your capital; however, such risky crypto portofolio on the other hand would suit ppl who are trying to build up principal to invest the same way you do, i.e. say 10,000 can be generated from $100 per person x 10 ppl, therefore, next round ppl can invest $1,000 each and hope to make perhaps $100,000 as obviously cryptos would be booming but not that fast.
there is a lock in period though btw as the investment manager has a long-term view and with cryptos going up and down like crazy, the investors who would see the bitcoin going down say 50% might want the money out and potentially might regret it after another 6 months; however, from investment managers perspective that would totally destroy investment managers strategy if he would have to sell security way too cheap, at a wrong time or just before the play is due.
