Q: Looking back, I have had this in my RRSP for many years and it always seems to be in negative territory. I don't really understand what it is/does. Should I be rid of it. Thank you.
5i Research Answer:
This is the Brookefield Floating Rate, Perpetual shares. This class of brookfield perpetuals are also redeemable at option of the company. The shares pay a dividend "each year in an amount per share equal to C$25.00 multiplied by on equarter of 70% of the "Average Prime Rate." These are a good option if one is looking for perpetual preference shares and are a very low risk option for income if that is what one desires. Preferred shares fell when interest rates rose, but floating rate preferreds do adjust their dividends with higher rates so can perform better at times. Of course, in times of falling rates the opposite can be true.