Fund Library Q&A with Gordon Pape

Questions on little-known stocks, managing million-dollar portfolios

There has been so much happening in the world that I haven’t had time to deal with new questions in my inbox. Let’s remedy that now.

Little-known stocks

Q – I’m a small retail investor. I’m retired, although I still work part-time for myself. I started investing in the ’90s when I was in my early 40s. Although my returns have improved a lot in the last couple of years, I am always looking for some safer stocks to add or to replace the riskier ones.

I was wondering if you had an opinion about Olympia Financial Group. It pays a monthly six cents dividend and, according to Simply Wall Street, it has no debt, only 2.4 million shares outstanding, and an outrageous 44% return on equity.

Another is Co-operators General Insurance Company Non-Cumulative Redeemable Class E Preference Shares Series C, trading at $23.70 with a 5.27% yield. There are 4 million shares and an EPS of $24.16. The book value is really high at $110.23 according to TD web broker.

Any information or opinion would be greatly appreciated.

Thank you so much. – Jack P.

A – Olympia Financial Group Inc. (TSX: OLY), which is based in Calgary, conducts most of its operations through subsidiary Olympia Trust Company. It administers self-directed registered plan accounts, corporate trust, and transfer agency services. It does not take deposits. Olympia also provides currency exchange and global payment services through its subsidiary Olympia Currency and Global Payments Inc.

The company recently announced year-end results for 2025, and they were uninspiring. Revenue was down 4% year-over-year, to $98.86 million. Diluted earnings per share were down 17% from $9.94 in 2024 to $8.25 last year.

The stock has a credible track record and shows a year-to-date gain of 4.6% as of March 20. However, the share price has softened recently, perhaps because investors are increasingly concerned about inflation and higher interest rates.

The shares pay a monthly dividend of six cents ($0.72 a year) to yield 6.1% at a recent price of $117.98.

To summarize, the yield is attractive, but the recent drop in the share price suggests waiting until the stock stabilizes before taking a position. Also, note the stock is lightly traded (average daily volume is 2,203), which can lead to large intraday swings. Place a limit order.

Co-operators General Insurance Company Non-Cumulative Redeemable Class E Preference Shares Series C (TSX: CCS.PR.C) is a preferred share that closed on March 20 at $22.89. It pays a quarterly dividend of $0.313, to yield 5.5% at the current price.

Historically, this issue has been very sensitive to movements in interest rates. The share price was hammered in 2022 and 2023, dropping to below $18 in late 2023. It began a steady rise when the Bank of Canada started to cut rates and recently touched a 52-week high. But it has pulled back since the Iran war started. Where it goes from here is a question mark.

In sum, the yield is attractive, the company is sound, but the interest rate outlook could weigh on the share price.

Managing millions

Q – A few years ago, I switched to a wealth manager that charges 1%. The return for the past years has been around 5%. The manager claims the long-term return will be over 7%. I am not happy, and their estate-planning support is poor.

Working in tech, my wealth has risen to a few million. I want to go back to self-directed. How do you think I should proceed? Leave some at the wealth manager? Keep some in index ETFs such as XEQT and VFV and some in my own portfolios? Note, each of these would be a few million. What do you suggest for these large amounts? Note I am quite familiar with self-directed investing and can handle risks and market downturns. Thank you very much. – Jim S.

A – I can see why you’re unhappy. A return of 5% over the past two years is very weak. The TSX was up 28.25% in 2025 and 17.99% in 2024. Even if you put everything in an index fund, you’d have done much better.

Of course, much depends on the instructions you gave to your manager. If you asked for a low-risk portfolio, you may have been holding a lot of bonds and other fixed-income securities, which have not done well. As for the 7% promise, it’s not worth much in the light of your actual results.

But that’s history. The issue is what to do now. For starters, I suggest you arrange to meet with your advisor and his/her manager. Lay out your concerns, and don’t pull any punches. Tell them what targets you expect and ask for a plan that has a reasonable chance of delivering those results. Put an exclamation point on it by saying you plan to withdraw $1 million, which you’ll manage yourself and will compare your results with theirs.

The next step is to decide where to invest that $1 million. If you want a fair comparison, the goals for the self-directed plan should be the same as for the managed funds. You say you have the knowledge and temperament to make your own investment decisions, so here’s your chance. Since I don’t know your goals and targets, I can’t provide specifics.

You mentioned the iShares Core Equity ETF Portfolio (TSX: XEQT). It’s a fund of funds, holding geographically diverse iShares ETFs. It gained 22.7% in the year to Feb. 28. The Vanguard S&P 500 Index ETF (TSX: VFV) gained 10.1% in the same period, in line with its benchmark.

Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investor newsletters, which are available through the Building Wealth website.

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Notes and Disclaimer

Content © 2026 by Gordon Pape Enterprises. All rights reserved. Reprinted with permission. The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss, and no guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting, or tax advice. Always seek advice from your own financial advisor before making investment decisions.

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