Q: You have consistently talked about your admiration for BN operationally. It has been trading in range for almost five years and is now hitting out a large breakout, almost independent of its subsidiaries. I know their CEO had spoken about the benefits of dropping rates. Any other comments on the rally here? Do you see it sticking for BN and also compared to private equity peers?
5i Research Answer:
We think the discussion of BAM moving its head office to the US has helped, as it has been undervalued relative to US peers. This is why the company split in the first place, so it is good that the move has worked so well. The market is strong, of course, which helps, as do interest rates. But the breakout is still nonetheless impressive. Deutche Bank raised its target today to $59 (US$). It is, as always, involved in several transactions but there has not been any unusual news of late. But investors see the Trump win as favourable for the group overall.