Investment Q&A

Q: Can you please explain why BIPC trades at such a significant premium to BIP.UN. I hold both now in rrif and tfsa accounts and read BIPC is structured to provide equivalent returns to BIP.UN. Yet as I’m writing this BIP.UN is $55.65 while BIPC is $62.06. I thought both units held the same securities and differed only in structure- partnership versus corporation for some tax reasons. BIPC is said to be exchangeable to BIP.UN yet why do this at a current loss of close to $7 /unit.
Thanks for your help,
Steve

Q: Hi 5i,

I'm quite surprised at the premium of BIPC vs the LP. I am tempted to sell all my BIPC and buy the LP units to get more units and the higher dividend yield. If I don't make the trade, do you think the premium would persist? Or, is there something the company could/would do to remove the premium (e.g. issue more shares of BIPC only or make the units exchangeable both ways). Is that a risk of losing the premium then?

TIA!

Q: I own BIP.UN and received a small interest in BIPC as part of the transition from a “Unit“ to a regular company. It was my impression that the shares of the old company would be automatically converted to the new company, but so far this has not been the case.
Do I have to sell the shares in order to convert?
Thank you for your advise.
Ernie

Q: How would you determine the fair value of the premium that the BIPC shares should trade over the BIP.UN? What do you think of the current spread?

Q: Two questions regarding the Brookfield family. BIPC has just had a huge run-up. Best to buy now...or wait to see if the market chills with 2Q results? BAM has just dipped, I suspect due to the recent announcement of the $5 billion investment to support retailers. Would you still recommend buying today or are there other similar stocks you would prefer? Thank you.

Q: If I sell BIP,UN at a loss and buy BIPC would the loss be considered a superficial loss by CRA.
Thank you.

Q: I believe the next payment is .485 on June 30.
Is that amount in Cdn or U.S.$?
.

Q: There is news that Brookfield Infrastructure LP reduced the dividend by 10%. I suspect this simply reflects the dividends declared on Brookfield Infrastructure Corp, not a real reduction for the enterprise as a whole. Is this correct?

Q: I was surprised and now curious as to how come BIP. UN is listed as a utility and BIPC.CA is listed as a financial services? I thought that they were identical except for the structure.
Your comments would be appreciated.

Ron

Q: The current price differential is ~$4. How wide do you think it will become and over what period of time? Thanks.

Q: I am looking to invest in Brookfield Infrastructure for a non-registered account. Which is best considering I want to take advantage of the Dividend Tax Credit?

Q: Received some BIPC shares from my holding in BIP.un. At the beginning both were equivalent in $ but now the spread is between $3 and $4. Although both are in my TSFA, should a consolidated all in BIPC before the spread get bigger?

Q: Since BIPC and BIP.UN own the same assets, have the same dividend, and BIPC is convertible to BIP.UN on a 1:1 basis, then why does BIPC trade at about $1.50 more than BIP.UN?

Q: I currently have full positions in BEP.UN, AQN and NPI in a non-reg account. I'm thinking of selling one to buy either BCE or BIPC.

This is a portfolio move. I don't currently own BCE or T so this might be a good time to add. I actually prefer BIPC for the more global exposure. I'm retired and looking for reliable dividends with a side of growth. I think owning all three utilities may be too much (I also own ALA in my RRSP) but selling any of the three would result in a taxable event.
forgot to mention that selling any of AQN, NPI or BEP.UN would result in a taxable gain. I also intended to ask which of the three would you sell?

Do think this would be a worthwhile move? If so, which would to buy, BCE or BIPC?

Thanks as always.
Peter

Q: Hello, you say that in a RRSP or RIF both BIP.UN and BIPC are economically equivalent. When one looks at the company profile of both, only BIP.UN shows a dividend yield of 5.1%. The company profile of BIPC does not show any dividend. Is it because BIPC is a new company that has just been listed? Will the dividend of BIPC be the exact same of BIP.UN? Regards, Gervais

Q: After the BIP.UN spinoff I now own shares of both of these. For simplicity, I only want to hold one. Selling BIP.UN and buying BIPC in non-registered account will have tax consequences so, on the surface, it seems I should sell BIPC and buy more BIP.UN. Do you see any reason in a long term hold to own one vs the other?

Q: Good day, 5i. I was given a small # of shares of BIPC by their spinoff; also have shares of BIP.UN. If I consolidate these shares in a Canadian RIF, which way should I go - all BIPC or all BIP.UN? Are their any advantages either way?

Q: I talked to a RBC adviser and he told me that I can exchange new BIPC shares into BIP.UN but don't have any information on exchanging of BIP.UN units into BIPC shares. Do you have any information whether BIP.UN units can be exchanged into BIPC shares?

Q: When will you start having the intraday price on your portfolio analysis page?
You can publish if you wish.

Ron

Q: I have a position in BIP.UN in my Cash account at a loss and a small position on BIPC in the same account. If I sell BIP.UN and buy BIPC would the loss be considered a superficial loss for tax purposes?