Investment Q&A

Q: I own BIP.UN and received a small interest in BIPC as part of the transition from a “Unit“ to a regular company. It was my impression that the shares of the old company would be automatically converted to the new company, but so far this has not been the case.
Do I have to sell the shares in order to convert?
Thank you for your advise.
Ernie

Q: How would you determine the fair value of the premium that the BIPC shares should trade over the BIP.UN? What do you think of the current spread?

Q: Webbroker indicates BIP.UN having a negative EPS growth of -26% over the past five years and BAM.A having an -11% negative EPS growth rate of over the past five years. Both stocks have performed well for me regardless of this negative EPS. Do you have any insight to help explain this? Thanks, Patrick

Q: If I sell BIP,UN at a loss and buy BIPC would the loss be considered a superficial loss by CRA.
Thank you.

Q: I believe the next payment is .485 on June 30.
Is that amount in Cdn or U.S.$?
.

Q: There is news that Brookfield Infrastructure LP reduced the dividend by 10%. I suspect this simply reflects the dividends declared on Brookfield Infrastructure Corp, not a real reduction for the enterprise as a whole. Is this correct?

Q: I am underwater on these and would like to harvest the losses and re-buy after 30 days (or not). Can you suggest temporary replacements for each? Any of these names you would not buy after the 30 days and just add to others?
Please deduct as many questions as appropriate.
Thank you.

Q: I was surprised and now curious as to how come BIP. UN is listed as a utility and BIPC.CA is listed as a financial services? I thought that they were identical except for the structure.
Your comments would be appreciated.

Ron

Q: Would appreciate your comments on this fund. In which type of account would it best be purchased in - rrsp, tfsa, non registered corporate or unreg cash? Why?
thank you for providing your support. Looking for dividend paying capital preservation fund.

Q: The current price differential is ~$4. How wide do you think it will become and over what period of time? Thanks.

Q: I am looking to invest in Brookfield Infrastructure for a non-registered account. Which is best considering I want to take advantage of the Dividend Tax Credit?

Q: Received some BIPC shares from my holding in BIP.un. At the beginning both were equivalent in $ but now the spread is between $3 and $4. Although both are in my TSFA, should a consolidated all in BIPC before the spread get bigger?

Q: Since BIPC and BIP.UN own the same assets, have the same dividend, and BIPC is convertible to BIP.UN on a 1:1 basis, then why does BIPC trade at about $1.50 more than BIP.UN?

Q: On April 27/20 you gave some advice and suggested buying BIP.UN. I understood that BIP.UN turned into BIPC so I am confused. Does BIP.UN still exist and if it does which do you prefer?

Q: I have held BIP in a RRSP for a number of years, and now also have a small holding of BIPC, which I am considering rolling back into BIP for simplicity sake to reduce total holdings. Is the distribution per share going to be exactly the same for BIP and BIPC? Are there any issues (withholding, etc) that would affect the distribution received from one stock and not the other, keeping in mind this is all in a registered account?
Some days the price differential is such that I could sell BIPC and buy BIP and the differential would more than cover the commissions (yeah, I would actually still lose). I would appreciate any comments about the pros and cons of this move.
Thank-you

Q: Hello, you say that in a RRSP or RIF both BIP.UN and BIPC are economically equivalent. When one looks at the company profile of both, only BIP.UN shows a dividend yield of 5.1%. The company profile of BIPC does not show any dividend. Is it because BIPC is a new company that has just been listed? Will the dividend of BIPC be the exact same of BIP.UN? Regards, Gervais

Q: After the BIP.UN spinoff I now own shares of both of these. For simplicity, I only want to hold one. Selling BIP.UN and buying BIPC in non-registered account will have tax consequences so, on the surface, it seems I should sell BIPC and buy more BIP.UN. Do you see any reason in a long term hold to own one vs the other?

Q: Good day, 5i. I was given a small # of shares of BIPC by their spinoff; also have shares of BIP.UN. If I consolidate these shares in a Canadian RIF, which way should I go - all BIPC or all BIP.UN? Are their any advantages either way?

Q: To Peter's question regarding exchanging Brookfield Infrastructure Partners Exchange LP units to BIP.UN:

I got info from BIP investors relations late last year:

1. LP units are exchangeable to BIP.UN 1:1 for 7 years,
2. The exchange is deemed disposition, i.e. taxable on gain
3. The exchange is no fee, can be done by brokerages

I emailed BIP investor's relations couple of times in the past, they are quite responsive and detail in their replies.

Hope this helps.

Q: I realize this is completely out of your area of expertise, but I am at my wits end and hoping your experience, or that of your subscibers, can help. My sons received Brookfield Infrastructure Exchangeable Units as a result of the Enercare buyout in 2018. The units appeared in their accounts at BMO Investorline as they were supposed to, but have no symbol, just a name, and they continue to show a price and receive the distributions. I contacted Investorline to find out how to exchange them for "regular" units and they advised me to contact Brookfield. When I contacted Brookfield, they told me the conversion had to be done through the broker, and gave me a contact for my broker to call. I passed the information on to Investorline, and they responded that I had to do the exchange directly through Computershare. Trying to deal with Computershare has been like hitting my head against a brick wall. Do you or anyone reading this have any idea how to go about converting the Brookfield Infrastructure Exchangeable units into regularly traded units?