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Brookfield Renewable Partners L.P. (BEP.UN)
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Brookfield Corporation Class A Limited Voting Shares (BN)
I'm also thinking or swapping my position in BEP.UN { up 238% in a RRIF } for BN on a " What have you done for me lately ? " basis . Quarterly reports seem to be dependent on the weather ...... I've also noticed that even when they have a bad quarterly report the stock does not get punished which confuses me ...... Anyways would you endorse a switch from BEP.UN to BN ?
BN is listed as 'finance' on the TSX. We think this makes sense, as while it has real estate exposure, it is more closely related to a private equity bank, with its fortunes closely tied to interest rates, and the economy. In terms of business segments, it depends on how one classifies things (via assets, cash flow, or earnings contributions). Also, the breakdown gets confusing as BN and BAM manage assets for third parties. So, of its exposure in, say, real estate, it may show a big number but this is not necessarily a direct investment and it collects fees only. If we look at the 2022 revenue breakdown, this is what shows: Private equity $58.2B, Infrastructure $14.7B, Real estate $13.8B, Renewable power $5.2B, Asset management $653M. We would not agree that BPP accounts for 80% of its value. Because BEP pays out most cash flow as a dividend/distribution, the BN/BEP issue becomes an income/growth discussion. BN does have an interest in BEP so one gets an indirect interest anyway with BN. On the current valuation, and with a growth tilt, we would be fine swapping to BN.