Investment Q&A

Q: Blackstone reported earnings last week. What's your assessment and how will the results impact your opinion of the stock going forward. You've liked it in the past and recommended it as a buy, any change? Thanks.

Q: Happy Sunday 5i researchers,

I am holding "BN" shares in my various accounts. Now received the following notice from TD waterhouse: what is the major difference between them? could you please elaborate the offer to help me understand? Thanks.

Brookfield Reinsurance Ltd. (“Brookfield Reinsurance”, “company”, “we”, “our” or “us”) hereby offers (the
“Offer”) to exchange, upon the terms and subject to the conditions described herein, up to 40,000,000 Class A
Limited Voting Shares of Brookfield Corporation (“Brookfield Class A Shares”, and each, a “Brookfield Class A
Share”), including the Brookfield Class A Shares that may become issued and outstanding after the date of the Offer
and prior to the Expiration Time upon the exercise of options or any other rights to acquire the Brookfield Class A
Shares (such options or rights, the “Other Securities”) for newly-issued class A-1 exchangeable non-voting shares of
Brookfield Reinsurance (“class A-1 exchangeable shares”, and each, a “class A-1 exchangeable share”). Under U.S.
securities laws, Brookfield Corporation may also be deemed an offeror with respect to the Offer.
You may tender your holdings for this Offer under the following option:
Option 1: Exchange - Under the Offer, each holder of Brookfield Class A Shares (each, a “Brookfield
Shareholder”, and collectively, “Brookfield Shareholders”) who has properly tendered Brookfield Class A
Shares, and who has not properly withdrawn such Brookfield Class A Shares, will receive one class A-1
exchangeable share for each Brookfield Class A Share tendered, on the terms and subject to the conditions of
the Offer, including the provisions relating to pro-ration described in the Offer to Exchange. (Subject to
proration.)
HOLDERS WHO DO NOT WISH TO TENDER NEED NOT SUBMIT INSTRUCTIONS.

Q: Hi group...If we assume the conflict in middle east is going to escalate. What are you thoughts on a strategy to take advantage ...I am thinking we might test last Oct lows...What your thoughts on this?.
I have $100,000) cash waiting to invest at some point... do you suggest entry soon? and if so what is your top 10 picks regardless of sector or market. Thanks for your insight

Q: For new TFSA money this year what are your top 6-7 picks within your balanced portfolio as of today?

Q: I know you dislike the terms “screaming buys” and “backup the truck”..how about “almost irresistible “ buys to hold for the next 3 years? 5 Canadian, 5 US.

Q: Sorry if this has been answered already.
Concerning the BN -BNRE offer to exchange, if I do nothing will I simply keep my BN shares?
Thanks

Q: Hello

I am looking to deploy some capital ($8,000) into the new FHSA and was looking for some ideas of how to diversify this $$. I have a 3-5 year timeframe and will likely not be actively trading these positions. Can you please advise how it would be best to deploy the funds given the time frame and with a moderate to high risk tolerance.

Can be the companies mentioned above or others. CSU would be great but given it is almost $3,000 a share, not much room to work with that.

Was thinking along the lines of 100 shares of BN @ $42 range and 200 shares of Lumine @ $19 range

Any other ideas of price points you think might be best?

Thanks as always for your help

Q: I assume that my question pertains to BN, as that is what I trying to understand. I received the text that follows. Is this for BN, or some other Brookfield company.... ? To my understanding, which must be incorrect, are they asking us to convert BN to Brookfield Insurance ?? Do you think it is wise to take advantage of this tender offer? Any reason why, why not? Thank You.
------------------------

"There is a tender offer on Brookfield Corp Vtg Shs Cl A. Brookfield Reinsurance Ltd. hereby offers to exchange, upon the terms and subject to the conditions described herein, up to 40,000,000 Class A Limited Voting Shares of Brookfield Corporation, including the Brookfield Class A Shares that may become issued and outstanding after the date of the Offer and prior to the Expiration Time upon the exercise of options or any other rights to acquire the Brookfield Class A Shares for newly-issued class A-1 exchangeable non-voting shares of Brookfield Reinsurance.

Important Notes:

Offer to Purchase Circular dated October 11, 2023:

Under the Offer, each holder of Brookfield Class A Shares who has properly tendered Brookfield Class A Shares, and who has not properly withdrawn such Brookfield Class A Shares, will receive one class A-1 exchangeable share for each Brookfield Class A Share tendered, on the terms and subject to the conditions of the Offer, including the provisions relating to pro-ration described in this document.

The class A-1 exchangeable shares are (i) convertible into class A exchangeable limited voting shares of Brookfield Reinsurance, and (ii) exchangeable into Brookfield Class A Shares, in each case on a one-for-one basis. Distributions on Brookfield Reinsurance's class A-1 exchangeable shares are expected to be paid at the same time and in the same amount per share as cash dividends on the Brookfield Class A Shares but are expected to be paid as a return of capital, rather than a dividend, which may be attractive to certain investors.

There is currently no public market for our class A-1 exchangeable shares. The company intends to apply to list their class A-1 exchangeable shares on the NYSE under the symbol 'BNRE.A'. The Company expects that trading of their class A-1 exchangeable shares will commence on November 16, 2023. The listing of their class A-1 exchangeable shares on the NYSE is subject to their company fulfilling all of the requirements of the NYSE. The NYSE has not authorized thier listing application and there is no assurance that the NYSE will authorize the listing application. The TSX has conditionally approved the listing of their class A-1 exchangeable shares on the TSX under the symbol 'BNRE.A'. The listing of their class A-1 exchangeable shares on the TSX is subject to the company fulfilling all of the requirements of the TSX. The Offer is subject to a number of conditions, including the Listing Condition. Brookfield Reinsurance may not waive the Listing Condition

Q: Good morning 5i team,

I own BN in two TFSA accounts.
From tax and capital appreciation would it make sense to accept the offer?
Could you also explain the reasoning?

Thanks
Joe

Q: If one were to sell Brookfield Renewables (BEPC) taking a capital loss would you be in contravention of the 30 day buyback rule if you immediately purchased Brookfield Corp (BN)?

Thanks for the great service.

Q: What are your 5 or 6 top picks in this current market weakness. Long term hold and forget. No specific sectors but preferably large caps. I like dividends but does not have to be a dividend payers. Thank you!

Q: Adding new money into the Income Portfolio- Hello, I am adding new money to the Income Portfolio in my TFSA. Would you suggest/list the top 5is ( 5 investments!!) timely buys at this time, with a time frame of 2-3 years and overall return perspective?
Also, would you consider making this a feature in monthly portfolio reports - like top 2-3 buys? Thanks

Q: I spent some time reading the Offer to Exchange as I was thinking of doing this even before the offer came out. I am trying to reduce my taxable income because of the clawback of OAS and the RoC distributions works for that. However, I noticed that this will be a taxable event, ie it will generate a capital gain or loss on the BN shares that are exchanged. For long time holders with a capital gain it may not be worth doing. I didn't see any mention of the tax consequences in previous questions.

Q: What do you think of the offer to exchange BN shares for Brookfield Reinsurance?
John

Q: Can you tell me of any recent insider buying done by Brookfield Corp.How can I in the future find this myself

Q: Brooke field seems to have found it’s much overdue mojo the last couple of days..what are the reasons? Is this expected to persist? Thanks.

Shyam

Q: Dear 5i
I can't decide on which to buy for a growth stock ,BN or LMN or whether both could be owned . Assume an otherwise balanced portfolio . Would now be the time to buy ?
Thanks
Bill C

Q: What would be the 5 Canadian & 5 US stocks that have the biggest moats at this time? Thanks

Q: Can you please provide 5 mid or large cap stock picks that have dropped recently due to the market downturn and could possibly recover as the next quarter earnings come out or as the interest rate environment peaks. US and/or Cdn stocks.

Q: I understand that BN invests money raised privately. Are these private investors expecting to get a better return on their money compared a BN common shareholder? I'm confused what the fundamental difference is between them. Can you please explain. What happens if the private investor wants their money back? If they withdraw en mass does this create a balance sheet problem?