Author Topic: BAM - Brookfield Asset Management  (Read 335931 times)

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #1050 on: July 21, 2019, 10:37:57 AM »
'This cash flow is now over $2 billion annually and growing. This amount, based on our estimates, should be over $5 billion in 2023 and with no specific use for the capital, it may be returned to shareholders.'

Oh-noo, please no more "spread-sheet-talk" in this topic. We have been exactly there before, where I asked for somebody shedding some light on the assumptions, to which question I got the reply "Mr. Flatt's assumptions are absolutely reasonable" [or something like that] [I couldn't find them anywhere, so I asked, and after the "absolutely reasonable"-answer just : silence].
The $5 billion cash flow number is stated in last September's Investor Day BAM presentation page 111, linked below.  See the rest of the file for derivation of this number.  Just putting out the info, I do not necessarily agree with the assumptions.[/b]

http://www.2018-brookfield-ir-day.com/

Gokou,

What are you really talking about? -Where are the BAM assumptions, that you "not necessarily agree with"? -I still can't find them.
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gokou3

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Re: BAM - Brookfield Asset Management
« Reply #1051 on: July 21, 2019, 01:48:03 PM »
That presentation provides the path to $5B distributable cash in 2023.  Whether the assumptions - AUM growth, LP asset growth, returns, etc. - make sense, I have no idea.

Jurgis

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Re: BAM - Brookfield Asset Management
« Reply #1052 on: July 21, 2019, 03:52:36 PM »
http://www.2018-brookfield-ir-day.com/

Thanks.



The interface is so painful though... No 2x speed. No saving the slides or video. If you pause, at some point the player expires and you have to restart from beginning. Trying to move to the point you were is a pain with the slider covering 428 minutes and you trying to move it 1 minute or less. I just gave up.

Not your fault.
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gokou3

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Re: BAM - Brookfield Asset Management
« Reply #1053 on: July 21, 2019, 10:08:58 PM »
Sorry didn't realize the Brookfield link didn't have the presentation PDF for download. Try this one:

https://www.dropbox.com/s/c0orm25274vv5oh/Investor%20Day%202018_BAM_F.pdf?dl=0

Jurgis

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Re: BAM - Brookfield Asset Management
« Reply #1054 on: July 22, 2019, 08:14:40 AM »
Sorry didn't realize the Brookfield link didn't have the presentation PDF for download. Try this one:

https://www.dropbox.com/s/c0orm25274vv5oh/Investor%20Day%202018_BAM_F.pdf?dl=0

Thank you again.  8)
"Before you can be rich, you must be poor." - Nef Anyo
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investmd

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Re: BAM - Brookfield Asset Management
« Reply #1055 on: July 24, 2019, 05:28:24 AM »
Sorry didn't realize the Brookfield link didn't have the presentation PDF for download. Try this one:

https://www.dropbox.com/s/c0orm25274vv5oh/Investor%20Day%202018_BAM_F.pdf?dl=0

Thanks for sharing pdf of 2018 presentation.
Question: Presentation lists common equity at $56B with close to $30B invested in BPY, BIP, BEP, BBU & "other".  What is remaining $26B invested in? Does BAM have assets of its own outside of its subsidiary spinoff companies?

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #1056 on: July 24, 2019, 06:19:01 AM »
... Question: Presentation lists common equity at $56B with close to $30B invested in BPY, BIP, BEP, BBU & "other".  What is remaining $26B invested in? Does BAM have assets of its own outside of its subsidiary spinoff companies?

investmd,

I suppose when your referring to the USD 56 B figure, you're talking about the numbers on p. 76, right? If so, that number is the value of BAM at "plan value", which is defined at p. 68. Basically, this is an estimation of the economic value of asset management business based on multiples to which is added invested capital. The economic value of the asset management business is not in the BAM group balance sheet, because it's [in materiality] built up internally over the years.

Here is a link to the investor presentation on the BAM website [link], scroll down to the September 2018 Investor Day under "Past events", expand, and you'll find the Presentation in pdf-format. [Direct download link].
”In the race of excellence … there is no finish line.”
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John Hjorth

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Re: BAM - Brookfield Asset Management Inc.
« Reply #1057 on: August 07, 2019, 11:08:29 AM »
Economic Times [June 24th 2019] : Suzlon offers to sell majority stake to Brookfield for settling loans .
Economic Times [August 7th 2019] : Brookfield no longer in race for Suzlon Energy stake as talks fail.

There has for quite some time been rumors and writings in the Danish press, that Vestas Wind Systems A/S has been interested in acquiring Suzlon. I suppose this bid from Brookfield has been in competition with Vestas to find a sustainable solution for Suzlon.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

jsgcapital13

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Re: BAM - Brookfield Asset Management
« Reply #1058 on: August 08, 2019, 09:51:25 AM »
can someone help me understand the delta between fee-earning capital and AUM? I believe the difference is explained by the assets owned by the listed entities that are separate from the LP investments? for example, Forest City assets (under BPY) would count towards the AUM total but not the fee-earning capital total? If that is correct, it seems confusing since BAM earns management fees based on the market capitalization of its listed entities.

jfan

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Re: BAM - Brookfield Asset Management
« Reply #1059 on: August 08, 2019, 08:49:45 PM »
can someone help me understand the delta between fee-earning capital and AUM? I believe the difference is explained by the assets owned by the listed entities that are separate from the LP investments? for example, Forest City assets (under BPY) would count towards the AUM total but not the fee-earning capital total? If that is correct, it seems confusing since BAM earns management fees based on the market capitalization of its listed entities.

There are definitions of these items in the 2018 annual report starting on page 108.

Fee bearing capital is all the capital that BAM manages for others and including its portion of their public and private funds. Therefore, fee-related earnings includes the base management fees it earns on it's OWN invested capital. This would appear to be double counting, however, the nets out in the end, as it reduces the total capitalization of its funds by either reducing the cash available on the balance sheet or dilutes the total equity by issuing unit shares or redemption-exchange units (that can be later paid out in cash or units). This proportionate capitalization is added back to its plan value calculation.

With respect to AUM, it essentially is 100% of anything they have to consolidate on their balance sheet (eg PPE line represents their infrastructure investment) and the proportionate amount of everything else that is non-consolidated (eg partial interests in public securities).

Hope this helps.