I appreciate your thoughts on income funds, AD-UN ( Alaris) VS BGI-UN. Thank you.

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Asked on March 31, 2022 2:10 pm
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Hey there. First off, Alaris is actually on our Dividend Bull List. It reported earnings in mid-March, so our report is actually pretty fresh. I'll drop a link to it. Of note, I also own the company.

https://www.stocktrades.ca/premium/individual-dividend-picks/alaris-equity-partners-income-trust-ad-un-to/

For BGI, it is a Brookfield fund that aims to invest in global infrastructure companies. The fund utilizes leverage, around 21% it looks like. So, a very simple example, this means for every $100 Brookfield has it is investing $121. This is partly why you'll see a higher distribution.

The fund is heavily invested in renewables, making up nearly 25% of the portfolio.

Overall, this fund has struggled quite a bit over the long term. In fact, even if you were to have reinvested the distributions, you'd only be sitting with a 5 year annualized return of 3.95%. So, it's underperformed by a significant margin. However, if renewable energy does pick up again, I could see the fund performing well. I'm not a huge fan, but I can see why it's attractive to some seeking income.

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Posted by Dan Kent
Answered on April 1, 2022 9:20 am