-
Ares Management Corporation Class A (ARES)
-
Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Good morning,
I hold BN in my non-registered account for my canadian side of my portfolio.
I've been looking to add to my TFSA on the US side in the same sector.
I see some of the notable ones are pulling back a hair.
From APO, BX, KKR could you please give me your pick. And if it's different than those proposed please put it forward as well.
Along with a value range to add. This will be longterm full position.
Thank you very much.
I hold BN in my non-registered account for my canadian side of my portfolio.
I've been looking to add to my TFSA on the US side in the same sector.
I see some of the notable ones are pulling back a hair.
From APO, BX, KKR could you please give me your pick. And if it's different than those proposed please put it forward as well.
Along with a value range to add. This will be longterm full position.
Thank you very much.
5i Research Answer:
BN is still our number one name, given the meaningful discount it is trading at relative to other asset managers. We would be comfortable having a full position in BN before committing capital to its peers on the US side. That being said, these companies have various approaches when it comes to capital allocation and building an investment case for different investors.
For compounding capital with a low dividend yield: BN
For investors that are seeking dividend growth: ARES
We would be comfortable adding to these names at this point given the recent pullback. We think all these companies are still trading at a fair valuation compared to their capital-light, strong growth profile.