Investment Q&A

Q: I am a retired dividend growth investor. I have large long term positions in BEP and BIP. which have done very for me. I have been watching the spin-off of BAM with interest and particularly like their targeted growth rate of 15-20% for distributions. I am concerned with overlap given my current large holding of BEP and BIP. However having waded through the documents it looks like BAM's holdings of BEP and BIP are modest at 25% of 48% and 27% respectively. It appears to me that buying BAM would give me exposure to Private Equity/Real Estate and Credit as well as a heavy weighting to fee related earnings - which I don't have now and that the overlap of BEP and BIP holdings is not that big a deal. Is this a fair conclusion??

Also - in your response to Chris on 12/14 you quote a dividend rate of $1.32 - can you please advise if that is $US or $CAD. I assume it is for the BAM on the TSX??


Thanks

Q: I am a Brookfield fan but a retired income investment. However I mamage two RESPs which will not need to make withdrawals for at least 12 years. It seems a no brainer to invest in BAM in these two accounts right now given the misunderstandings about them. My question is should it be BAM or BN?

Q: hi
any idea what is going on with the price of BAM. it continues to slide down? are investors waiting for price decline enough for a larger yield??
cheers, chris

Q: These two have almost exactly the same yield going forward. Which do you see as having better dividend growth over the next ten years?

Q: With the split of BAM.A, would you transfer the new BAM to an Income Portfolio as it is more a dividend paying stock but keep BN in a Balance Portfolio as it is more growth-eee?........Tom

Q: I'm trying to understand the new Brookfield Asset Management Ltd spinout. I have two questions:
(i) It seems to act like a royalty on the asset management business. Am I correct that it does not have to add any additional capital to the business as time goes on?
(ii) On its web-site it claims a 90% payout ratio. However, from the recent Investor Day presentation (page 62), it states that there is 4.9B of distributable earnings for the original company for 2022, which would mean about 1.2B for the new spinout. As I calculate it there are around 450M shares, which means a projected dividend of over $2/annum. However, in the announcement of Dec 6, it stated that the starting dividend is about .28/quarter, or 1.12/annum. What am I missing?

Q: Brookfield is being pounded today.Any idea why ?The combined companies post split are down 10%?

Q: I am looking recommendation for a solid long term Canadian growth stock, that one can largely purchase and forget it. This is for my grandchildren's portfolios which currently have a core holding of VEQT and small satellite positions in MICROSOFT, COSTCO and Visa. The portfolios are expected to be held for a very long time. I do monitor the positions currently on a quarterly basis.

Any thoughts on this approach and possible securities that would fit the bill?

Q: If you were only buying one of these companies, for a 3 to 5 year hold, which one would you choose and why? Much appreciated. ram

Q: What is the date of when the new Brookfield symbols will trade? If not known, guesstimate? I remember when BIPC was split out, the share price cratered as some people received shares they didn’t want to hold. Do you think the same will happen with either BN or BAM after the split?

Q: We hold an all-equity portfolio with 40-45 stocks and ETFs. Core holdings are large-cap Canadian and U.S. companies. We assume that a full position of 40 names would be 2.5% of the portfolio. Top two holdings are BAM at 5.23% and CSU at 4.31%. At what level would you trim?
Also, the Brookfield family is presently 10.26% of the portfolio. What level would you trim there?
We are not planning to trim soon as 12 positions which are small-cap tech are sub .50% and we anticipate a reversal of large-cap dominance.

Q: Looks to have been smashed to the downside. And today is yet another ugly day. On the Flip Side how does its future look? It is down 40% from its 52 week high. Time frame and forward projections on its potential?

Q: All four securities are held in a US TFSA at ~2% - 2.5% positions each. I would like to deploy available funds to either take two of the positions to 3.5% or add to all four at 0.5% ea. Seeking market recovery growth over the next 2-4 years, which strategy would you deploy? If only two were added to, which ones would they be, if it were you?

Thanks for all you do for us little guys.

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,