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Any good RSPS funds recommendation?


alertmeipp
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I am looking for some long term fund for a RRSP account, any recommendations?

Economic Investment Trust  EVT a closed end investment trust which sells at a large discount to NAV which is actually understated and also owns a large block of E L Fianacial which is also seriously undervalued. The equity portfolio is managed by Sanford Bernsein a value manager of decent reputation and a MER of approximated 1/4 of 1%. The equity portfolio is largely international in nature so it would not be a good choice if you have a extremely bullish long term view of the CDN dollar.
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"The equity portfolio is largely international in nature so it would not be a good choice if you have a extremely bullish long term view of the CDN dollar."

 

would not that be bad i.e. if value of canadian dollar goes up, then value of international equity would go down in canadian dollar terms

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If you like the way FFH invests than you should consider Francis Chou.  http://www.choufunds.com

One of the best Canada has to offer, IMO.

 

I use his Associates Fund.  It has all or most of his best ideas in it.

 

Only issues are that he has US$ exposure which has not been heading in the right direction in the past 12 months for CDN Investors (he has hedged before and has that option in the fund) plus it is $500M (I believe about $100M of the $500M is money that FFH has invested in his fund).  Yes, I know $500M isn't considered large but the smaller the better in most circumstances, IMO.

 

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I know I'm the skunk at the garden party on this one, but why not use the Greenblatt's Magic Formula.  It has beaten the pants off virtually every manager (except those who are managing small amounts of money and have alpha's of 15 to 20% over the market).

 

For example compare Magic Formula past performance with Chou's Associates fund.  It beat Chou for every time period except 1 year.

 

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Magic Formula approach has 100% turnover per year. 

I think a disciplined investor could implement Magic Formula on their own, but for the average person I don't think it is suitable unless they have a managed account. Greenblatt's operation will run it for 1% of assets, but only if you are a US resident

https://www.formulainvesting.com/profoverview_MFT.htm

 

The question states that this is for an RRSP account, so we are talking about Canadian based investor. So they are going to have to implement magic formula on their own--and they will incur higher transaction fees than the 1% all-in fee that Greenblatt charges. They will likely also be tempted to make adjustments to the formula (human nature).  The adjustments they make are likely to reduce returns (the average investor has a habit of making the wrong decisions at the wrong time).

 

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Sorry for the off-topic, but that leads to me another question, or more like a rant. Why are Canadians not allowed to invest in US mutual funds or use US-based brokers? And is there a way to overcome that, legally obviously?

 

I moved to Canada from US recently, and was told by Fairholme that since my new address is Canadian, I cannot purchase any more shares in my account. Apparently, there's a very short list of countries whose residents cannot buy US-based mutual funds, including the likes of North Korea, Iran, and ... Canada! After some research, it turns out there's a Canadian securities regulation of some sort that prohibits selling to Canadians, to somehow protect us from lower fees and many choices.

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Yeah, but that's painful having to ask somebody else to handle your mail, even if it's not illegal. I actually had to do that for my TD Ameritrade account. They went even further and sent a letter telling me to sell all my holdings and close the account within a month, or they will do it for me! And that's the broker with a Canadian bank's logo on its chest.

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Yeah, but that's painful having to ask somebody else to handle your mail, even if it's not illegal. I actually had to do that for my TD Ameritrade account. They went even further and sent a letter telling me to sell all my holdings and close the account within a month, or they will do it for me! And that's the broker with a Canadian bank's logo on its chest.

 

Some cynicals would say that the Canadian banking industry probably lobbied for such legislation, you know... to protect the Canadian banks from the much bigger funds competition and lower fees of the US.

 

BeerBaron

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I would just us a US based address. Basically I would lie or omit some info.

 

from the site I linked above:

"All account owners, trustees, and custodians must be U.S. citizens or permanent residents with a valid Social Security number or Taxpayer Identification number. An account owner must have a permanent U.S. address that is not a post office box."

 

 

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You have to have family, friends, cousins, coworker, an old girlfriend, or someone in the area. I would set the address to my mom and turn on electronic statements for reports and files.

 

Yeah, but that's painful having to ask somebody else to handle your mail, even if it's not illegal. I actually had to do that for my TD Ameritrade account. They went even further and sent a letter telling me to sell all my holdings and close the account within a month, or they will do it for me! And that's the broker with a Canadian bank's logo on its chest.

 

Man they are pretty hard core. Lol on the bank logo.

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