Investment Q&A

BAM EPS of 28c did miss estimates of 32c, but distributable cash improved and comments on funding pleased investors. BAM's $100 billion fundraising target for 2023 may look like a stretch at first glance, but an expected 2H pickup could push it over the goal line. It has six flagship funds in the market, while exposure in high-demand asset classes, such as infrastructure, supports its vision. The American Equity Investment Life deal will triple insurance fee-bearing capital, adding $125 million in run rate fees from its 25-bp management agreement, with the potential for an additional $190 million from rotating these assets into private funds, though this may happen over 2-3 years. Insurance assets 'should' drive growth in the Credit segment, which could be the fastest growing business line. Margin expansion may come in 2024, since investments in the retail channel are largely complete. Overall, we would consider the results good enough and we remain very comfortable with the outlook. BN also was good, and again outlook commentary was very good. Several brokers raised targets. Distributable earnings were 75c vs estimates of 71c. Revenue was $23.67B, up 1.8% and ahead of estimates. Total assets rose 12% to $463B. The outlook for both should support future dividend increases, though none were announced with the results. But both look fine to us.