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Brookfield Infrastructure Partners L.P. (BIP.UN)
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Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)
Q: BIP.UN and BIPC.TO are down significantly YTD. However recently BIP.UN has recovered some of the lossess and appears to be formimg a base wheras BIPC.TO continues to go down. Do they own the same assets and why is BIP.TO performing worse than BIP.UN
5i Research Answer:
These are 'paired' companies and economically equivalent, owning the same assets. They are essentially the same company exactly. BUT...BIPC is a Canadian corporation, and gets the full dividend tax credit. Also, as a corporation many funds and indices can own it, whereas many cannot own limited partnership structures such as BIP.UN. As such, BIPC typically gets a premium in the market. This premium can fluctuate wildly at times and can shrink in a 'bad' market. This likely is the reason for the reason moves here.