Investment Q&A

Q: 5I
Of all Brookfield stocks which ones need to be
reported in 1135?

Bam.a Bamr Bip.un Bipc Bep.un Bepc Bbu.un Bbuc Bpy.pra

thanks ralph

Q: What are your opinions on BIPC and BIP.UN?

I hold these in registered accounts and now they account for ~9% of my total portfolio and when I consider the fact I hold BAM.A these Brookefield names would represent ~12 % of my portfolio. As a result I am tempted to trim BIPC or BIP.UN.

If I were to trim do you have any preference/recommendation to trim one over the other or both equally?

Q: Hello 5i,

In our registered accounts we have BEP.UN, BEPC, FTS, AQN, BAM.A, BIPC, WSP. All of these stocks performed very well for 2+ years thanks to 5i. We trimmed each of the stocks to 1%-2% positions between August and October when prices were elevated with the intention of repurchasing if they dropped. With rising interest rates and inflation now it may not make sense to repurchase. Would it be viable to:
Retain one of FTS (2% position) or BEP.UN (2%) or sell both?
Sell AQN, BIPC,
Retain BAM.A and WSP, and increase each to 3% or 4% with the proceeds from the sale of the other stocks?
or Any other suggestions?

Thank you

Debbie and Jerry

Q: Is the transfer of shares from Interpipeline to BIPC shares considered a capital gain taxable event ? Shares are held in a non registered account.
Thanks ,Philip

Q: This is a follow-up to our question from last week (see: https://www.5iresearch.ca/questions/140708).

Based on your response that nothing in the list gives you much cause for concern, we would understand this to imply none of the 30 stocks would be considered a "sell" today.

Please divide the 30 stocks into a pair of ranked (best to worst) lists, one of "buys" and the other of "holds". As well, for each of the "holds" indicate the principal rationale for caution.

Q: About 1 year ago we created an equal-weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases are made with the intent to be long-term holds (10+ years). As well, we intend to increase our investments over the next 2-3 years, and then adjust over time as needed. Currently the amount invested represents ~40% of the eventual total.

Although a goal is to keep the portfolio roughly equal weighted, of the 30 companies, the following 14 were acquired in 3 purchases (full position) and currently have weights in the 2.31% (SHOP) to 5.00% (ATA) range for an average of 3.71%: CSU, MG, GSY, WSP, LNF, ATD, ATA, SLF, BAM.A, BIPC, FTS, DOO, SHOP and TFII. The remainder were acquired in 2 purchases (2/3 position) and currently have weights in the 1.98% (BEPC) to 3.17% (TCN) range for an average of 2.56%. So, overall, the weightings currently range from ~2% to ~5%.

Over the next 6 months we will invest another ~25% of the eventual total. As we make additional purchases, we need to strike a balance between keeping the weights roughly equal while taking advantage of market opportunities. Please provide some broad guidance/wisdom.

Of the 30 companies in the portfolio, which 10 would you have the highest conviction in today? Please rank them.

Are there any of the 30 that you might consider as candidates to be replaced because there are better options, and if so, what replacements would you suggest and why (disregard tax considerations)?

What additional 3 Canadian companies might you consider adding to the portfolio and why?

As always, thanks for the great service!

Q: Good afternoon,
As a follow up to a previous question about an infrastructure investment. Would you buy BIPC in the US or Canadian version? And, would you hold it in a registered or non-registered account? I would appreciate a brief explanation. Thank You.

Q: For the infrastructure sector US and global - what would be a good ETF to reference. Do you have any high conviction infrastructure stock recommendations? Thank you.

Q: A year ago both BIPC and BEPC traded at a 25-30% premium to BIP.UN and BEP.UN respectively.  Today BIPC still trades at a considerable premium to BIP.UN whereas the BEPC to BEP.UN premium is now less than 2%.  Why is that?
Also if you were to establish a Brookfield Renewable Partners position today in a registered account, would you go with BEPC anticipating that a premium may return?  Other than a nominally higher dividend, is there any other advantage of going with BEP.UN instead of BEPC in a registered account?
Thanks...Glenn 

Q: Please suggest tax loss proxies for CCL.B and BIPC. Thank-you.

Q: My broker bought for me positions in three different versions of Brookfield Infrastructure. Is one better than the other to own in an unregistered account?

Q: Can you explain the difference between BIPC and BIP ? Of the two which would you prefer for a long-term investment.Many thanks,Joseph.

Q: What happens to my IPL stock if I did not select any option to liquidate the shares from Brookfield when the sale completed on Nov. 1

Q: The recent price decline seems to be reversing with similar voracity. We took the shares for our IPL position, primarily because of the name "Brookfield". It seems to be a name that attracts money.
Is there any other reason that you can see, for the recent volatility ?

Q: I have been holding BIP.UN for several years. Does it make to sell it and buy BIPC to get tax advantage. BIPC is about 3.5% more expensive than BIP.UN, which has narrowed down significantly in the last couple of years. Why did the difference narrow down so much and can it narrow down even further? Thanks.

Q: Just a comment...this morning BMO Investorline journaled additional "cash in lieu" to my accounts for the takeover of IPL. I assume this is as a result of the many comments I made and others that the cash portion for our shares seemed very low, about $18.46/share for me. The new amount raises the cash portion to about $19.90/share. Something went wrong on the distribution and this is much more reasonable but I wish I had taken the $20/share cash offer.

Q: BIPC's stock price has been struggling as the company sorts through its IPL acquisition. When would you anticipate prices will begin to rise again? (Utilities currently held - in relatively equal amounts - are BIPC, AQN, BEP and NPI.) Thank you.

Q: Good buy at these levels? Doesn't seem to be any news to explain the weakness. Closing in on a a 52 week low, 3.5% yield.

Q: Is there an explanation of why the 4 year revenue growth is so different between BIP.UN and BIPC? Here is the data I get from RBC Direct Investing for 2017 to 2020:

BIP.UN: 3,535.0 | 4,652.0 | 6,597.0 | 8,885.0 for a 4 year CAGR of 26%
BIPC: 1,323.0 | 1,561.0 | 1,619.0 | 1,430.0 for a 4 year CAGR of 2%

Of course the amounts are going to be different, but I expected the growth to be similar between the two. Whaaaat?

Thanks.

Q: Hello 5i, I notice that comments are made as to the takeover of Interpipe IPL relating to both BIP and BIPC as the take over company's. What is the relationship of BIP and BIPC as to who really will own IPL now. Also which company BIP or BIPC would look better to invest in. I was a IPL share owner and submitted my shares for the cash option.