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Fortis Inc. (FTS)
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Brookfield Renewable Partners L.P. (BEP.UN)
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Emera Incorporated (EMA)
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Brookfield Infrastructure Partners L.P. (BIP.UN)
Q: Hi Peter & 5i Team,
I'm looking at the 3 month, 6 month and year-to-date charts of BIP.UN and BEP.UN compared to their peers (EMA and FTS). What would you attribute the reasons for their underperfmance? The 3 year chart for both of these Brookfield entities isn't exactly stellar as well.
As always, your comments and insights are highly valued.
I'm looking at the 3 month, 6 month and year-to-date charts of BIP.UN and BEP.UN compared to their peers (EMA and FTS). What would you attribute the reasons for their underperfmance? The 3 year chart for both of these Brookfield entities isn't exactly stellar as well.
As always, your comments and insights are highly valued.
5i Research Answer:
BEP is a little different than a pure electrical distributor like FTS and EMA. BEP is more focused on renewable power, which is more cyclical, capital-intensive, and sensitive to interest rates and government policy. EMA and FTS are generally lower risk and not directly exposed to power price fluctuations. BIP is a diversified infrastructure operator, and its revenue is contracted/regulated, providing some stability, but not purely regulated like FTS or EMA.
BEP.UN and BIP.UN also have a much higher valuation compared to FTS or EMA, which can impact its price appreciation.