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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Happy Sunday 5i researchers,

I am holding "BN" shares in my various accounts. Now received the following notice from TD waterhouse: what is the major difference between them? could you please elaborate the offer to help me understand? Thanks.

Brookfield Reinsurance Ltd. (“Brookfield Reinsurance”, “company”, “we”, “our” or “us”) hereby offers (the
“Offer”) to exchange, upon the terms and subject to the conditions described herein, up to 40,000,000 Class A
Limited Voting Shares of Brookfield Corporation (“Brookfield Class A Shares”, and each, a “Brookfield Class A
Share”), including the Brookfield Class A Shares that may become issued and outstanding after the date of the Offer
and prior to the Expiration Time upon the exercise of options or any other rights to acquire the Brookfield Class A
Shares (such options or rights, the “Other Securities”) for newly-issued class A-1 exchangeable non-voting shares of
Brookfield Reinsurance (“class A-1 exchangeable shares”, and each, a “class A-1 exchangeable share”). Under U.S.
securities laws, Brookfield Corporation may also be deemed an offeror with respect to the Offer.
You may tender your holdings for this Offer under the following option:
Option 1: Exchange - Under the Offer, each holder of Brookfield Class A Shares (each, a “Brookfield
Shareholder”, and collectively, “Brookfield Shareholders”) who has properly tendered Brookfield Class A
Shares, and who has not properly withdrawn such Brookfield Class A Shares, will receive one class A-1
exchangeable share for each Brookfield Class A Share tendered, on the terms and subject to the conditions of
the Offer, including the provisions relating to pro-ration described in the Offer to Exchange. (Subject to
proration.)
HOLDERS WHO DO NOT WISH TO TENDER NEED NOT SUBMIT INSTRUCTIONS.
Read Answer Asked by Lin on October 30, 2023
Q: Hello, Is it better to purchase Canadian bank stocks in a RRSP or non registered acct and why ?

What about U.S. bank stocks?

Thanks so much.

Read Answer Asked by Lorraine on October 26, 2023
Q: I am aware you had dropped FSZ from the The recent announcement of the drop in AUM has precipitated quite a drop in share price. My 3 part question is:
1) How safe would you say the dividend is?
2) Can you estimate the payout ratio at this time?
3) Is this the proverbial falling knife, or is there a basis for some share price (are we there?) where a buy is in the order?
Thanks! ... PK
Read Answer Asked by Paul on October 26, 2023
Q: Can falling share prices cause any difficulty to the operation of Canadian banks?
Read Answer Asked by Danny on October 25, 2023
Q: There haven't been many questions on RA of late. Now yielding a mind boggling 18% . That a lot for a fund based on real assets ..... Something happened in late August that took a third of its' value off . I believe that was a dividend cut ? What was the reason behind the cut ? With 73% of the fund invested in fixed income I don't understand the volatility .....Please review the structure and its' holdings and give me a fresh perspective of what this fund holds and its' investment quality. And explain why such a structure pays such a high dividend ? And if the new dividend faces the likelihood of another cut ? ......... Thanks Garth ....
Read Answer Asked by Garth on October 24, 2023
Q: Are they high yields associated with CDN banks indicative of a tremendous buying opportunity or a harbinger of doom ?
Read Answer Asked by john on October 22, 2023
Q: I assume that my question pertains to BN, as that is what I trying to understand. I received the text that follows. Is this for BN, or some other Brookfield company.... ? To my understanding, which must be incorrect, are they asking us to convert BN to Brookfield Insurance ?? Do you think it is wise to take advantage of this tender offer? Any reason why, why not? Thank You.
------------------------

"There is a tender offer on Brookfield Corp Vtg Shs Cl A. Brookfield Reinsurance Ltd. hereby offers to exchange, upon the terms and subject to the conditions described herein, up to 40,000,000 Class A Limited Voting Shares of Brookfield Corporation, including the Brookfield Class A Shares that may become issued and outstanding after the date of the Offer and prior to the Expiration Time upon the exercise of options or any other rights to acquire the Brookfield Class A Shares for newly-issued class A-1 exchangeable non-voting shares of Brookfield Reinsurance.

Important Notes:

Offer to Purchase Circular dated October 11, 2023:

Under the Offer, each holder of Brookfield Class A Shares who has properly tendered Brookfield Class A Shares, and who has not properly withdrawn such Brookfield Class A Shares, will receive one class A-1 exchangeable share for each Brookfield Class A Share tendered, on the terms and subject to the conditions of the Offer, including the provisions relating to pro-ration described in this document.

The class A-1 exchangeable shares are (i) convertible into class A exchangeable limited voting shares of Brookfield Reinsurance, and (ii) exchangeable into Brookfield Class A Shares, in each case on a one-for-one basis. Distributions on Brookfield Reinsurance's class A-1 exchangeable shares are expected to be paid at the same time and in the same amount per share as cash dividends on the Brookfield Class A Shares but are expected to be paid as a return of capital, rather than a dividend, which may be attractive to certain investors.

There is currently no public market for our class A-1 exchangeable shares. The company intends to apply to list their class A-1 exchangeable shares on the NYSE under the symbol 'BNRE.A'. The Company expects that trading of their class A-1 exchangeable shares will commence on November 16, 2023. The listing of their class A-1 exchangeable shares on the NYSE is subject to their company fulfilling all of the requirements of the NYSE. The NYSE has not authorized thier listing application and there is no assurance that the NYSE will authorize the listing application. The TSX has conditionally approved the listing of their class A-1 exchangeable shares on the TSX under the symbol 'BNRE.A'. The listing of their class A-1 exchangeable shares on the TSX is subject to the company fulfilling all of the requirements of the TSX. The Offer is subject to a number of conditions, including the Listing Condition. Brookfield Reinsurance may not waive the Listing Condition
Read Answer Asked by Walter on October 22, 2023
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