Q: Good morning 5i
In an answer to an earlier question on bn you mentioned that 5i holds less than 4 per cent of this stock in the balanced portfolio. I found this a bit surprising, given your generally favourable attitude towards BN. I know there are numerous variables involved in choosing a stock for a portfolio. But I was just curious as to your reasoning
Second question has to do with LMN, which you are also favourable towards. I know that you cannot make individual portfolio decisions but i would appreciate your general opinion. I have received less than one percent of this stock from the split off and have been thinking about selling it or adding to it. The question comes down to whether it is an appropriate stock for a retired person, albeit one who can afford to and does take moderate risk, to hold. Although it is small and new, i am encouraged by its association with csu.
Thanks for your great service
In an answer to an earlier question on bn you mentioned that 5i holds less than 4 per cent of this stock in the balanced portfolio. I found this a bit surprising, given your generally favourable attitude towards BN. I know there are numerous variables involved in choosing a stock for a portfolio. But I was just curious as to your reasoning
Second question has to do with LMN, which you are also favourable towards. I know that you cannot make individual portfolio decisions but i would appreciate your general opinion. I have received less than one percent of this stock from the split off and have been thinking about selling it or adding to it. The question comes down to whether it is an appropriate stock for a retired person, albeit one who can afford to and does take moderate risk, to hold. Although it is small and new, i am encouraged by its association with csu.
Thanks for your great service
5i Research Answer:
We like BN for sure and maintain our view that the name is one of the better core long-term holdings. The balanced portfolio also holds 2.8% of BAM. So the two positions combined account for around 6% of the portfolio, which makes Brookfield group become one of the largest positions in the portfolio (only after CSU at 6.8%).
We like LMN, we would be comfortable holding LMN as a small position for a conservative portfolio (or occasionally adding to the position if opportunities present). Although LMN’s valuation is not cheap, given that the company is run by one of CSU’s legacy management teams, and targets a unique segment of Vertical Market Software (VMS), we think the company is well-positioned to perform.