Investment Q&A

Q: Hi,
I’m confused with the last press release of Brookfield on Friday :

""...The transaction will result in the division of Brookfield into two publicly traded companies – the Corporation (Brookfield Asset Management Inc. will be renamed “Brookfield Corporation”) and the Manager with the holders of Brookfield’s class A ………becoming shareholders of the Manager on completion (the “Arrangement”).

• Brookfield Corporation and the Manager will respectively own 75% and 25% of our asset management business;

• the Class A Shares of the Corporation are expected to trade on the New York Stock Exchange (the “NYSE”) and the Toronto Stock Exchange (the “TSX”) under the new ticker symbol “BN”;

• the Manager’s class A limited voting shares (“Manager Class A Shares”) are expected to trade on the NYSE and TSX under the ticker symbol “BAM”;

• each holder of Class A Shares will receive 1 Manager Class A Share for every 4 Class A Shares held;


It looks like the actual BAM.A shares will be « renamed » BN. And "NewBam" shares issued on 1 for 4 basis. Is it right?


Do you know how long it could take to implement the changes after the Nov9 meeting? 5-10 days? I plan to transfer some shares of BAM out of my RRIF this year and I prefer to wait after the spinoff.

Thanks a lot.

Q: Hi- in a growth long term portfolio, would you own both bam and wsp. Is there any overlap? What percentages are they international?

Q: Hello Peter,
Can you please comment on good natured results? Is it fair to say Blackstone is more for income oriented investors given its dividend and Blackrock is more for growth oriented investors. Also, would be better to diversify into both instead of picking one as i already own fair amount of BAM? Is Manulife worth a hold for long term given its decent dividend? thanks very much

Q: Hello Peter,
When Brookfield first indicated that they were going to spin off the asset management unit, the stock popped alot, but then subsided. Now, the spinoff is more certain as opposed to just mentioning it, why is the stock not behaving as it did when the first announcement was made? Please provide your view. Given USA is still delaying its legalization of marijuana, I was deciding on Weed or Hut mining given both are volatile. What would make sense ? Thanks very much

Q: How do you think these rate hikes will impact BAM? The stock didn't seem to move much yesterday considering the greater then expected increase.

Thanks!

Q: BAM is an oversize percentage of our portfolio (everything else has dropped more). When they spin off 25% of their asset management business later this year, will their market cap. decrease similarly to Dell after the VMWare spin off?

Q: As a follow-up to Harry's question of June 2/22, can I ask why you rank the three companies as BAM, BX, BLK in that order? I own BLK and wonder what makes it the least attractive of the three. Thank you,

Q: Looking at one of these conglomerates in my US Spousal Rsp. All seem similar in their business mix however, BX offers higher dividend and has the largest market cap. BLK seems to offer an outsized dividend and trades accordingly.
Question, for a long term Rsp hold, which of the three is most compelling

Q: What order and at what price would you nibble at the stocks listed (already own them all at this point but no full positions other than Cost) + brief explanation why?

Is there any other screaming buys you would recommend at this time regardless of sector , Thanks for your help with my portfolio

Q: Hi,
Is it fair to the shareholders if they get only 25% of the Asset Management business? I am not quite sure how this spinoff works? Could you please explain if this is beneficial for shareholders of Bam:us or Bam.a. Thanks. Shyam

Q: Hello Peter and team,
It looks like BAM will be spinning off the asset management unit. On their earnings call, i believe they mentioned it and the stock went up quite a bit and then went down again. Now that it is confirmed, there was no reaction.. Any comments? In case they do spin it off as a shareholder would one get shares of new companies similar to their other spinoffs and would this results in surge in stock price? In other words, if you are a BAM holder , would it be good idea to buy more shares at current price of $61.00 cdn assuming it is within our allocation in our accounts. Much appreciated.

Q: Good Morning,

Of these three, what would be your order of preference to add too?

Thank You

Q: Looking at these names at current prices for a non registered account. Can you give me your top 5 names for a 7 year hold.. would any of the above names be included?

Q: Today you replied to request for your 10 US/Can highest conviction names and left off Google and BAM (my two largest positions). Is there a reason and if so why?

Q: Now that oil has recovered, I was thinking of selling my shares in XOM and wanted to buy some Canadian stocks. I am retired so I have a relatively low risk tolerance. How would you rate RY, BEP, and BAM. Are there other companies you would suggest that are stable and offer a decent dividend.

Q: If you were to sell any of the above, list in order your top 5 or 6. Or would you keep the portfolio as is for next 3 years.
Roy

Q: We recently initiated a TFSA for a family member (long-term buy & hold); the 10 securities purchased (in approximately equal amounts) were: Aritzia (ATZ), Unilever (UL), GoEasy (GSY), SunLife Financial (SLF), BAM (BAMa), WSP (WSP), Algonquin Power (AQN), Telus Int'l (TIXT), and an ETF called XUSR. Still have ~15% capital (~$12,000) to invest. Which 3 or 4 of these would you have greatest conviction to add to? And/or is there another security which would complement the above?

Ted

Q: Hi - what would be your current thoughts on these two companies in terms of buy/hold/sell in the current market/economic environment. Pls add a quick comment as to "why". Disregard objectives/diversification/etc.

Q: Regarding the currency in which dividends from BAM Brookfield Asset Mgmt are paid:

I see you recently stated they pay in USD.

However on their website it says
“ Registered shareholders who are Canadian residents receive their dividends in the Cdn dollar equivalent, unless they request to receive dividends in U.S. dollars.”

So it does not seem to be based on the currency in which you buy the shares. Can you confirm?

I am waiting for my discount broker to confirm that I can receive them in USD.

Q: I'm interested to increase my sector weight to financials - and now have BMO,
BAM, MA, and FFH.
Please comment on this mix and whether to add to any of these or add other stocks.