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Intact Financial Corporation (IFC)
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Balanced Equity Portfolio (BEPORT)
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Definity Financial Corporation (DFY)
Q: Since noting the increase in the holding of IFC in the 5i BEPORT I have compared it to my holding in DFY to see if I should switch, but what I see is that IFC trades for a much higher PE and that performance since Nov 2021 has been only 27% vs 73% for DFY.
I understand that IFC is the industry leader, much bigger market cap, higher dividend etc but what is the real attraction here or is it that DFY is too small for the BEPORT?
I understand that IFC is the industry leader, much bigger market cap, higher dividend etc but what is the real attraction here or is it that DFY is too small for the BEPORT?
5i Research Answer:
We think DFY is fine, and quite interesting. However, as we were replacing SLF within the portfolio, we did want to use a larger cap company. IFC is $36B, DFY is $4.3B, SLF is $40B thus very similar in size to IFC.