What Covestor managers are buying: Brookfield Asset Management (BAM, EC, TEI)

For her International Yield portfolio, Covestor model manager Vivian Lewis focuses on high yielding closed end funds, preferred shares and common shares of companies that reside physically outside of the United States. Current top holdings include Ecopetrol SA (EC), Templeton Emerging Markets Income Fund (TEI) and Ultrapar Participacoes SA (UGP).

On March 18, Lewis added a position in Brookfield Asset Management (BAM), a global asset management company focused on property, power and infrastructure assets.

Fitch recently affirmed BAM’s IDR at BBB, with a stable outlook:

Fitch Ratings has affirmed the ratings on Brookfield Asset Management as follows:

–Issuer Default Rating (IDR) at ‘BBB’;

–Unsecured line of credit at ‘BBB’;

–Senior unsecured notes at ‘BBB’.

The Rating Outlook is Stable.

The rating affirmation is supported by solid cash flow generation from a large, well-diversified portfolio of investments, a solid liquidity position, a management team with a strong track record, demonstrated access to a wide variety of capital sources, solid debt service coverage ratios, reasonable leverage, and a manageable debt maturity schedule.

Credit concerns include a relatively complex ownership structure of investments, elevated leverage at a number of BAM’s larger investments, and a propensity for entering into related-party transactions.

The company also announced that it is launching an Emerging Markets Infrastructure Index:

Dow Jones Indexes, a leading global index provider, and Brookfield Asset Management Inc. (NYSE:BAM – News) (TSX:BAM.A – News) (Euronext:BAMA), a global asset management company focused on property, power and infrastructure assets, today announced the launch of the Dow Jones Brookfield Emerging Markets Infrastructure Index.

The index aims to represent companies in emerging market countries that are owners and operators of infrastructure assets.

“Extending our infrastructure index family with the addition of an emerging market sub-index clearly demonstrates continued investor interest in growing countries,” said Michael A. Petronella, President, Dow Jones Indexes. “With our associates at Brookfield Asset Management, Dow Jones Indexes is pleased to provide reliable infrastructure indexing products in areas that directly respond to market demand.”

BAM closed up 0.98% on 3/21.


“Fitch Affirms Brookfield Asset Management’s IDR at ‘BBB’; Outlook Stable” Fitch Ratings, 3/2/11. https://seekingalpha.com/news-article/690994-fitch-affirms-brookfield-asset-management-s-idr-at-bbb-outlook-stable

“Dow Jones Indexes and Brookfield Asset Management Launch Emerging Markets Infrastructure Index” Brookfield Asset Management, 3/2/11. https://finance.yahoo.com/news/Dow-Jones-Indexes-and-pz-335872594.html