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Brookfield Corporation Class A Limited Voting Shares (BN $93.35)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $86.50)
Q: For a long time, BAM and BN were relatively close in share price. Why the $10 difference of late ? Does BAM need to catch up or has BN had too good of a run of late (and needs to come down) ? Or is this the new normal and how it should have been all along ?
5i Research Answer:
BAM was the big winner of the two initially after the split of the company, as investors focused on income vs growth. Now, markets are back in growth mode, and BN, which pays less income out as dividends (so has more capital for growth) has taken over the lead this year. But on a one-year basis, returns are nearly identical at 50%. We would expect continued back and forth here depending on markets and investors preference for growth vs income.