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Brookfield Infrastructure Partners L.P. (BIP.UN $49.47)
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Brookfield Corporation Class A Limited Voting Shares (BN $61.60)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $70.74)
Q: I have held a large Position in BIP.UN in my RRSP for many years. The equity has done OK but in looking back wonder why my Financial Advisor didn't suggest i rotate this into BN or BAM to gain max returns.
I don't need the income and it seems alot of BIP.UN's return comes in the form of the dividend which is not treated favorably within a Registered Account so BIP.UN seems not best for RRSP.
How would you suggest i better allocate these funds within a Registered Account between Brookfield companies to gain max benefit and at what price(s) would you suggest the switch?
Just on a side note i previously also held BEP.UN and my advisor suggested it was rated a Sell by Veritas so i let him sell at a very inopportune moment ($33). He claimed Veritas had a Sell on all Brookfield companies. Is Veritas a reputable rating Agency because they seem to just dislike any and all Brookfield entities?
I don't need the income and it seems alot of BIP.UN's return comes in the form of the dividend which is not treated favorably within a Registered Account so BIP.UN seems not best for RRSP.
How would you suggest i better allocate these funds within a Registered Account between Brookfield companies to gain max benefit and at what price(s) would you suggest the switch?
Just on a side note i previously also held BEP.UN and my advisor suggested it was rated a Sell by Veritas so i let him sell at a very inopportune moment ($33). He claimed Veritas had a Sell on all Brookfield companies. Is Veritas a reputable rating Agency because they seem to just dislike any and all Brookfield entities?
5i Research Answer:
In a potential switch such as this (growth over income) we would worry less about perfect pricing. It is a portfolio move to get one's goals in line, rather than waiting to achieve a perfect price point for selling/buying. We would simply proceed if it is decided to switch. We like BIP.UN, but absolutely if growth is the goal we would endorse a switch to BN. Veritas is OK, but tend to 'generalize'. They do not like the accounting of the Brookfield Group. It is complicated accounting, but the group has proven themselves over multiple decades now, and we would consider management among the best in Canada.