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Mutual Fund News


Special to The Globe and Mail

Mike Koktan, 65


Retired production line worker

Current portfolio


The investor

Mike Koktan's approach to the subprime crisis has left him in investing limbo. Before the markets started to collapse, he heeded a financial commentator's advice and moved into cash. "I'd seen my portfolio lose close to half of its value in the tech crash, and I thought 'I'm not going to disregard the warnings this time.'" Cash was a great place to be, he says, but he also didn't get back in when the market was recovering.

Who he follows

Mr. Koktan respects Bill Fleckenstein, who writes a column for MSN Money, and was a major factor in Mr. Koktan moving into cash. Back in the late 1990s, Mr. Fleckenstein warned the tech bubble would end in tears. "When what he predicted happened, I said to myself 'I'm going to pay more attention to this guy in the future.' "

What he's looking at

While he and his wife have good pensions, he says, "Our cash can't sit doing nothing forever." He's looking at a couple of funds that focus on generating income through selling "covered call" options, which give the buyers the temporary right to buy stocks in the fund at pre-determined prices in the future. BMO Covered Call Canadians Banks ETF (ZWB-TSX) sells call options on the big Canadian banks; Horizon AlphaPro Enhanced Income Equity ETF (HEX-TSX) sells options on a basket of large-cap Canadian stocks.

Best move

In the mid-2000s, Mr. Koktan got some handsome returns with a couple of short-term income funds, Mavrix Monthly Pay fund and TD Monthly Income fund.

Worst move

In the late nineties, Mr. Koktan had money in tech funds such as Altamira's science-and-technology and e-business offerings. "I tripled my money but when it all blew up, I was right back to square one."


"If you're a novice, seek professional advice of some sort, and gain some insights by reading and using the Internet. Don't just try to do it all on your own unless you're really savvy and have been in it for a while."

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