Q&A: Do I have to monitor my foreign content myself?
Question: Does the 20% foreign content rule imply that I have to constantly monitor my portfolio to ensure that this ratio is not violated with market appreciation/depreciation, or does this rule only apply to my initial investment?
Gordon Pape’s answer: For a simple example, I put $1,000 into my RRSP and buy two funds: $800 into a Canadian fund, and $200 to a foreign fund. At some point, the foreign fund surges ahead of the Candian fund so that it is worth $300 while the Canadian drops to $700. Now 30% of my portfolio is foreign… What do I do now?