Investment Q&A

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.
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"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each holder of Brookfield Class A Shares who has properly tendered Brookfield Class A Shares, and who has not properly withdrawn such Brookfield Class A Shares, will receive one class A-1 exchangeable share for each Brookfield Class A Share tendered, on the terms and subject to the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?

Q: Hello

Is BN like a Canadian version of BRK.B.

With the major difference BN pays a small dividend and breaks up its assets like BAM.

Would you own both or do you prefer one over the other.

Thank you.

Mike

Q: Hi,

I think there are a few screaming buys out there. Would you list your top five?

BNS is at a silly price would you say? Back up the truck?

Q: What is your top 6 picks regardless if Cad / US based / sectors. Also supply entry price and brief explanation on why you like your picks...Thanks for your help with this.

Q: Dear Peter and team,

Thank you for answering my question earlier about non-correlated assets. Very clear and helpful. For Private equity you had chosen BX as an option (also VXX) and every subscriber knows how much you like BN/BAM :) (I must say that I am tickled by the number of folks in both print and TV media, not just you, are enamored with Mr. Bruce Flatt. A true Bromance!!)

My question is how come not many mention anything about similar European Private equities firms which are publicly traded. Google search yielded CVC capital, EQT, Ardian, Apax...

Which PE firm from the EU would you consider as a reasonable complement for BX/BLK/BAM . Feel free to add any other PE firm that you think has potential.
Many thanks in advance.

Mano

Q: Why does Brookfield spin out subsidiaries rather than keep 100% of their businesses within the parent company like Berkshire? How does the BN approach create greater shareholder value compared to having just one company with all of its bits under one roof?

Q: Assuming I would like to divide recent funds into 4 companies that I can set up as DRIP’s and leave for 20 years what would you recommend. I am diversified otherwise.

Q: I've got 20K to invest in some growth. How do you feel about splitting the funds between these two companies?