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Brookfield Renewable Partners L.P. (BEP.UN)
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Brookfield Infrastructure Partners L.P. (BIP.UN)
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Brookfield Corporation Class A Limited Voting Shares (BN)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Q: Following these recent QA regarding BN.
Sep30 “ As per the latest annual financials, BN holds a 25.0% interest in Brookfield Asset Management (BAM), a 54.6% interest in Brookfield Renewable Partners (BEP.UN), a 73.9% interest in Brookfield Infrastructure Partners (BIP), and a 34.5% interest in Brookfield Business Partners (BBU)”
Oct01: “Owning the three noted will provide higher income and somewhat similar exposure. But BN will prove the 'private equity' component of its businesses that the others have less of.”
I own BN since BAM-reorg and it did very well this year. If we look at it’s underlying assets : in the last year BAM/BBU did OK but not as much, but both BEP and BIP did poorly. May be a stupid question, why did BN do so well? Market speaking? “private equity” or other assets heavier than we think? Thanks ++
Sep30 “ As per the latest annual financials, BN holds a 25.0% interest in Brookfield Asset Management (BAM), a 54.6% interest in Brookfield Renewable Partners (BEP.UN), a 73.9% interest in Brookfield Infrastructure Partners (BIP), and a 34.5% interest in Brookfield Business Partners (BBU)”
Oct01: “Owning the three noted will provide higher income and somewhat similar exposure. But BN will prove the 'private equity' component of its businesses that the others have less of.”
I own BN since BAM-reorg and it did very well this year. If we look at it’s underlying assets : in the last year BAM/BBU did OK but not as much, but both BEP and BIP did poorly. May be a stupid question, why did BN do so well? Market speaking? “private equity” or other assets heavier than we think? Thanks ++
5i Research Answer:
It's a bit hard to pinpoint, but BN has been actively discussing how it has a massive amount of capital available for deals. With interest rates dropping, investors likely expect a lot of M&A action. BEP tends to trade with utilties, and after a big ramp up with its data centre contract it has been drifting back. BAM is seen as lower growth but higher income, and markets are looking to growth again. BIP is less easy to explain: we think it should be doing better.