Investing

Help with investment

  • Last Updated:
  • Feb 12th, 2019 5:25 pm
[OP]
Newbie
Nov 24, 2009
69 posts
Toronto

Help with investment

I am a novice at investments but had to move all investment from an advisor’s hand due to various reasons but because of this, I moved them over to TD Self Direct.

It is shocking to realize how much TD Waterhouse get for commissions from all my funds and that made me realize how much the old advisor was getting for managing them.

I have some front-load and some back-load funds. TD provide a statement at the end of the years stating there are trailer commissions they have received from the fund firms and it is between $350-$400 annum. I was told the commissions will goes down as time evolves due to the nature of the funds.

DYN 454 - frontload
DYN 5710 - frontload
MFC 2898 - frontload
MFC 3655 - backload
MFC 3654 - backload
CIG 6929 – frontload but I can’t sell it until redemption window is open again

TD Waterhouse does not have the low fee funds for the two DYNs but they are not doing too bad for the return but as for all the MFC funds, the 3655 and 654 can be a switch in kind to MKB and QCN ETFs respectively with low fees and no trailer fees.

I have tried to look up the two ETFs but is having a hard time understanding if they are any good. Would love to hear your thoughts and suggestions.
7 replies
Deal Fanatic
Jan 27, 2006
9883 posts
3716 upvotes
Vancouver, BC
I would start by using Morningstar and TD's own research are on their website to look up what categories these funds are in. From there, compare the funds in the category (assuming you want to stay in that category of course) to see which one works for you in terms of performance, risk profiles, and fees - fees should only be a deciding factor after the first two are taken into account (ie. there's no point in investing in a low fee, low performance, high risk fund if there is an OKAY fee, medium/high performance, medium/lower risk fund). Also pay attention to the Morningstar ratings as they generally sum things up pretty good.

Once you have selected those 'winning funds' check their performance as against their benchmark (ie US funds typically use the S&P500) if the fund's performance is lower, compare their performance with an S&P500 ETF. You may want to move your investment to the ETF depending on what you find.
Deal Fanatic
User avatar
Jun 11, 2001
7964 posts
399 upvotes
Look at the penalties and see if its worth moving out (if it's a substantial amount it probably is). Read up on canada couch potatoe, you can build a very low fee portfolio and reasonable returns and risk based on how you want the allocation. Or go something lazy like VGRO or VBAL for the lazy people like me. If you're hard stuck on a mutual fund, MAW104 is always a good bet.
...zzz...zzz...zzz...

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Deal Addict
May 5, 2008
4584 posts
1262 upvotes
Winnipeg
Is there a penalty to move in kind to a direct invest account
[OP]
Newbie
Nov 24, 2009
69 posts
Toronto
Craftsman: Thank you for your help. I honestly have done my due diligence and tries to understand the differences between the holding and the "in kind" fund but even after over January I am still where I am which is not able to decide what to do next. In terms of the performance among the funds, I really need help deciphering the data. I have attached two URLs below. Based on my returns, for MFC 3655, it is showing a 17% gain but for MFC 3654 it is showing only a 2.04% increase. I am more inclined to move this to QCN however I am torn because I am not sure about the performance. There is little long term data on this fund. What does it mean if MKB fund is below all the other comparable? (see MKB summary screenshot).

MFC 3655 versus MKB
MFC 3655 - 2-morning stars and risk is average, MER 2.28 %
MKB - no rating since the inception started April 2016, low risk, 0.61 MER

MFC 3654 versus QCN
MFC 3654 - 2-morning stars and risk is average, MER 2.43 %
QCN - no rating since the inception started Jan 2018, medium risk and 0.06% MER

The ETF fact sheet can be found here for MKB and QCN:
https://www.mackenzieinvestments.com/en ... ex-etf-qcn
https://www.mackenzieinvestments.com/en ... me-etf-mkb

Sleepguy: Thank you for the information. I have been trying to catch up on reading all the posts from the investment section about Coach Potatoes investment and it is just wonderful that there is such a way for people like myself. I will check out those suggestions you have made. I am not all stuck on mutual funds at all, but I am not a huge risk taker either when it comes to money.

Airmail: There is no penalty as long it is transferred in "in-kind" however I can't say if there is a fee for transferring out from another person’ hands.
Images
  • MFC 3654 performance and risk.png
  • MFC 3654 summary.png
  • MFC 3655 - performance & risk.png
  • MFC3655 summary.png
  • MKB Summary.png
Last edited by mslofty on Feb 12th, 2019 3:56 pm, edited 2 times in total.
Deal Fanatic
Jan 27, 2006
9883 posts
3716 upvotes
Vancouver, BC
mslofty wrote:
Feb 12th, 2019 1:54 am
Craftsman: Thank you for your help. I honestly have tried my due diligence and tries to understand the differences between the holding and the "in kind" fund but even after over January I am still where I am which is not able to decide what to do next. In terms of the performance among the funds, I really need help deciphering the data. I have attached two URLs below. Based on my returns, for MFC 3655, it is showing a 17% gain but for MFC 3654 it is showing only a 2.04% increase. I am more inclined to move this to QCN however I am torn because I am not sure about the performance. There is little long term data on this fund. What does it mean if MKB fund is below all the other comparable? (see MKB summary screenshot).

MFC 3655 versus MKB
MFC 3655 - 2-morning stars and risk is average, MER 2.28 %
MKB - no rating since the inception started April 2016, low risk, 0.61 MER

MFC 3654 versus QCN
MFC 3654 - 2-morning stars and risk is average, MER 2.43 %
QCN - no rating since the inception started Jan 2018, medium risk and 0.06% MER

The ETF fact sheet can be found here for MKB and QCN:
https://www.mackenzieinvestments.com/en ... me-etf-mkb
https://www.mackenzieinvestments.com/en ... rical-data

Sleepguy: Thank you for the information. I have been trying to catch up on reading all the posts from the investment section about Coach Potatoes investment and it is just wonderful that there is such a way for people like myself to invest. I will check out those suggestions you have made. I am not all stuck on mutual funds at all, but I am not a huge risk taker either when it comes to money.

Airmail: There is no penalty as long it is transferred in "in-kind" however I can't say if there is a fee for transferring out from another person’ hands.
QCN was only started a little more than a year ago so there would not be any track history on the ETF itself - you will have to base any analysis on how the fund is benchmarked and the fees. In QCN's case, according to the Mackenzie information, it's based on a Solactive Canada Broad Market Index with a 0.06% MER. You will have to do some research on that index to see how well it matches up to the TSX 300 and you can kind of judge the performance from that. I say kind of as there are not guarantees that the Solactive won't screw up or the fund manager won't screw up.

As for the MKB, that's just a bond fund that is benchmarked against the FTSE TMX Canada Universe Bond Index and it's very conservative.
[OP]
Newbie
Nov 24, 2009
69 posts
Toronto
craftsman, thank you so much for your inputs. In that case, I will hold it out as long as I can for MFC 3654 to mature and take out 10% of it annually as cash which is permitted by Mackenzie without incurring penalty.

Would this be the returns more or less if I convert MFC 3655 to MKB? See image uploaded. I got that from the fact sheet.
Images
  • MKB returns.JPG
Deal Fanatic
Jan 27, 2006
9883 posts
3716 upvotes
Vancouver, BC
mslofty wrote:
Feb 12th, 2019 4:06 pm
craftsman, thank you so much for your inputs. In that case, I will hold it out as long as I can for MFC 3654 to mature and take out 10% of it annually as cash which is permitted by Mackenzie without incurring penalty.

Would this be the returns more or less if I convert MFC 3655 to MKB? See image uploaded. I got that from the fact sheet.
MFC 3655 seems to be a managed portfolio fund (ie part stock, part bonds, part cash) which is NOT the same as the MKB which is a bond fund. In theory, the managed portfolio with it's stock exposure should provide you with a greater return but at a higher risk than MKB. Bond funds can have good returns if the market conditions are just right BUT those conditions are hard to come by. So, I would say, that it's unlikely in the longer term than the MKB will be able to give you the same returns as 3655.

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