Q: Today's guest on BNN mentioned that MLF has exposure to China and posable head winds and prefers PWO with a higher div. your view please.
5i Research Answer:
We presume he meant MFC and not MLF. MFC does have significant Asian business ($13.6B in revenue last year) but it has been successful there. It is a risk, but also an opportunity. We think POW is fine, and perhaps more conservative. They have similar valuations. MFC is much larger. POW has outperformed over the past year. We would be fine either way, but with MFC underperforming this year it may be able to perform well on any new piece of good news, as some of these concerns are priced in.