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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Please suggest 4 Global infrastructure ETFS , 2 Canadian and 2 American with your preference.
Read Answer Asked by roger on February 11, 2021
Q: Is there a Canadian Co. that might benefit from the proposed Infrastructure spending that U.S
President Biden is planning for the U.S.? Would this Co. have to be listed on both the Canadian & U.S. Exchanges? I want a stock that qualifies for the Canadian DTC. I find BIP.UN & BIPC a bit baffling. Last March, BIPC was created & I thought it was supposed to mirror BIP.UN but as of last Friday there was a $20 difference between the price of the two stocks. When I look into BIPC which I would prefer because of the DTC, most of its holdings are in Brazil & the U.K.
Thank you: Jerry
Read Answer Asked by Jerry on January 31, 2021
Q: I've been looking over the large variations in valuations between this stock's ticker prices in both CDA and US. I noticed the yield between BIP:US and BIP.UN is rather tiny. Just curious, between all 4 tickers which offers the cheapest entry? If yield is included does that rearrange the order? As a separate issue could you mention the withholding tax metric as it has nothing to do with what an American calculates into a purchase of this stock?

TIA
Read Answer Asked by Gerald on January 20, 2021
Q: Hello!
Many months ago you had suggested the corporate version of BIP and BEP for a taxable account. Has this changed? If I sold BEPC I would have a gain in a taxable account, so is it now recommended to sell and buy BEP.UN or can I just keep with one? For BIPC I would have a loss. Can I keep this and could momentum return in this name one day or is it likely to just keep going lower and lower. The volume on the Corporate version is much lower which is not great. I had also liked the fact that institutions can buy the corporate versions, making that version more attractive but perhaps this is not the case.
Appreciate your thoughts. Thank you!
Read Answer Asked by Neil on January 18, 2021
Q: I am in the process of developing a plan to consolidate my SDRSP portfolio by trimming some stocks and moving more into ETFs. I will keep a small growth portfolio within the SDRSP because I like doing it. Can you comment on the three Brookfield stocks that I have and if two had to go which would you suggest please.

Thanks as again.
Read Answer Asked by Danny-boy on January 18, 2021
Q: In response to a recent question from Alan regarding what you felt the BEPC over BEP.UN price premium should be you said "We think 10% to 12%"

What about the premium for BIPC over BIP.UN? Do you think it should also be 10 to 12%? BIPC is currently trading approx $11 or 32% over BIP.UN.

Read Answer Asked by Glenn on January 14, 2021
Q: I saw the Q's on this stock today and was intrigued by the outsized (to me) performance of BIPC vs. BIP.UN on the upside and now on the downside. Am I to understand that the growth is exactly equivalent and the price differential is strictly on the dividend taxability? I have trouble understanding the institutional (I assume mostly) thinking on this. How many years would it take of dividend savings to account for the difference? Or is that a dumb question?
Read Answer Asked by Gerald on January 07, 2021
Q: I owned BIP.UN for several years with the spin off I was also owned some BIPC. The units have done well in the past until this year, it was flat. Meanwhile the shares have virtually doubled since their issue. I'm a primarily growth investor and sees yields as a "fringe benefits", would you consider switching the units entirely over to shares?

Certainly the deciding factor would be whether the shares' combined return (growth and yield) would outpace those of the units? Kindly share you insight on this issue. Thanks.

Read Answer Asked by Victor on December 29, 2020
Q: Hi still hold all 4 of these stocks but would like to consolidate them, the BIP shares are in an RRSP of BEP in a non-registered account which is more income oriented. I am mainly concerned with which have more growth.
Thx
Nancy
Read Answer Asked by Nancy on December 09, 2020
Q: I have owned BIP.UN for four years and have a 76% unrealized capital gain. I also have a small amount of BIPC as a result of the recent spin off which has a 78% unrealized gain. I do not want to own both as they are essentially the same and BIPC represents only 0.3% of my portfolio. The plan is to amalgamate by selling one and using the proceeds to buy more of the other.

The question is which one to sell? This is in an unregistered account. Which of these two do you favour in an unregistered account? A sale of BIP.UN will result in a greater immediate tax liability than BIPC but the tax will have to be paid at some point anyway and it might be a good idea to decide, at this time, which is the best one for me to own going forward. I know the premium on BIPC is expected to decrease but so for it has not. In fact, over the past 8 months BIPC has increased approximately 78% while BIP.UN has decreased 6%. Over this time, BIPC has increased in market value approximately the same percentage as BIP.UN has over the past 4 years.
Read Answer Asked by Ross on December 08, 2020
Q: I hold BIP.UN in a registered account. When BIPC was created I decided to keep BIP.UN but it is looking like I don't understand the corporate structure. Typically with a unit trust or a partnership the unit holder pays the tax on the income whereas the tax is paid within a corporation so dividends are "after-tax". Since the amount of the distributions are the same for the two entities I figured that BIP.UN would be better off because it didn't have to pay all the tax on its income. By my rough calculations: since the split BIP.UN is up about 20% whereas BIPC is up about 80%. What did I miss?
Thanks for your insight.
Ian
Read Answer Asked by Ian on December 07, 2020
Q: I own both BIPC and BEPC and have done very well thanks to your recommendations. You have indicated lately in some of your answers that BAM.A is very attractive at these prices. Is it too much Brookfield to take the profits in my two holdings and purchase BAM.A.

Thanks for your continued guidance throughout this turbulent year.

Dave.
Read Answer Asked by David on December 01, 2020
Q: Received these in the spin out from the units. Brookfield units are long term; held in my RRSP. ( turning into RIF in 2022 ). Considering the premium on the corps, would you sell and reinvest back into the units?
Thanks, Derek
Read Answer Asked by Derek on November 13, 2020
Q: I don't know how to derive an estimate for the fair value of the difference in share prices for the above Brookfield companies. Since the date of their respective share distributions, BEPC and BIPC have outperformed their economically equivalent LP unit prices by 30% and 39% respectively. When are the price premiums too big to account for the differences in tax treatment and investor access?
Read Answer Asked by SCOTT on November 12, 2020
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