Investment Q&A

Q: Dear 5i team.

Is there an ETF that holds multiple Brookfield Companies to spread out individual entity risk? Is there a combo of Brookfield holdings that accomplish something close that saves the MER?

Many thanks for your help.

Q: my public service announcement

NEVER, EVER, EVER BUY ANY BROOKFILED COMPANY IN ANY TAXABLE/NON REGISTERED ACCOUNT

EVER

i own several of them and have generally been happy with the mgmt and results

but, between delayed tax reporting, offshore, foreign income t5013 reporting; t1135 reporting AND basically obtuse overall reporting, i recco you put them in a registered account where all that nonsense 'disappears' into the ether of non reporting............

thank me later

merry christmas

Q: Hi,

Now that the dust has settled and the BN/BAM spinoff is complete, I have the BN shares in my accounts but wanted to confirm the split and avg. costs showing before and after in my brokerage account and if its correct. Sometimes when they manually update avg. prices for these kind of things, they enter it wrong.

Before spinoff and after spinoff shares and avg. cost:

Account 1: BAM 393 shares @39.09 ------- BN 393 shares @33.11, BAM 98 shares @29.50

Account 2: BAM 601 shares @51.60 ------- BN 601 shares @33.11, BAM 150 shares @29.50

Account 3: BAM.TO 151 shares @44.97 ---- BN.TO 151 shares @45.22, BAM 37 shares @40

Account 4: BAM.TO 150 shares @65.64 -----BN.TO 150 shares@45.22, BAM 37 shares @40


1. For account 3 and 4, if I had 151 shares and 150 shares and divide by 4 to get new BN shares, I get 37.75 and 37.50 shares after. Do brokerages usually round down? I thought I would have gotten 38 shares of BN after the spinoff.

2. When I compare my cost basis before and after, it should be the same correct? Looks like they assigned these prices of $33.11, $29.50, $45.22 and $40 to each of my BN and BAM shares after. Where did they get these from and if incorrect, what should they be after for BN and BAM?

3. When I look at account 2:
Before: BAM 601 x $51.60 = $31,011.
After: BN 601 x 33.11 = $19,899, BAM 150x$29.50= $4,425 (Total = $24,324)
Why did my cost basis go down from $31k to $24k? Something is not correct here.

I would like to contact my brokerage and have them update my avg. cost for BN and BAM but wanted to clarify these few things before I do.

Thank you for your help!

Q: Referring to my earlier question today, would using some the tax loss sale proceeds from selling BBU to buy some more BAM violate CRA similarity rules on repurchasing?

Q: I have been following the Questions and have been a keen reader of the opaque notices and statements from Brookfield . I own units in all the subsidiaries mentioned above too. So I am trying to keep position size of each in mind when I look at the BN holding corp and allocate it to the various sectors, Months ago, before the split you had answered a question confirming that the BAM.A sectoral breakout was 39% financial, 35% RE, 16% industrial, 10% energy?? Does this breakout still apply to BN and/or BAM or is there a new breakout given the spinout of the new corporation.

Q: I would like to add to either of the recent spinoffs of Brookfield (BN, BAM). Which of the two do you feel has the most upside for 3 to 5 years. Thank You.

Q: When it comes to the new BAM and BN, what risk weighting out of 10 would you assign to each of them???......where 10 would be low risk and 1 would be very high risk?......Thanks for your take as this will assist me in determining my weighting of money in each of BAM and BN stock postions........Tom

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.