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Brookfield Asset Management Inc Class A Limited (BAM $60.16)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $82.65)
Q: What’s your opinion of BAM’s result of Q1FY25 published this morning? What’s your opinion of the outlook? How can they invest, build and grow the business when, as I understand it, BAM’s strategy is to return most of the FFO generated to shareholders?
5i Research Answer:
BAM does plan to return 75% of distributable cash as dividends. This leaves a bit of room for growth, but it can also still grow nicely (potentially) by building upon existing management contracts and getting new clients and launching new funds that will generate fees. Distributable EPS was 40c vs 34c last year and matching estimates. Fee-related earnings rose 26% to $698M. Revenue was $1.08B. BAM continues to make progress on fundraising across several asset classes, and we would consider the results fairly good, though not a blow out.