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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: Regarding BIP.UN and BIPC, you answered to a member back in early November: “These are 'paired' companies and economically equivalent, owning the same assets. They are essentially the same company exactly.” Then, why is BIP.UN down -1.51% and BIPC down -14.50% over the last 3 years? I got those percentages from the Company Profile section, comparing the 2 companies together using the Interactive Chart with Percentage Change. Thank you
5i Research Answer:
BIPC gets the dividend tax credit and more institutions can buy its shares, as some institutions cannot invest in limited partnerships. Some stock indices will also not include limited partnerships, as BIP.UN is set up. Thus, BIPC tends to get a premium valuation in the market due to these factors. But the premium does swing around, and the performance difference reflects the fact that premium was quite high when BIPC was launched, and has now settled lower.