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Brookfield Infrastructure Partners L.P. (BIP.UN)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: If you had to own one Brookfield entity for total return which would it be? I hold BIP & BN, would it make sense to sell BIP and invest it in BN? What percentage of the subsidiaries does it own?
5i Research Answer:
Portfolio allocation is a personal decision. However, if we HAVE TO choose, we would side with BN (without considering other factors like sector diversification). We think BN is trading at a cheap valuation relative to the assets they own, currently trading at around 11x Distributable earnings is a cheap multiple for a company that is expected to compound it for around 15% in the next few years. BN owned a 27% stake in BIP on a fully exchange basis as of December 31, 2022. It owns 25% of BEP.UN.