Nattakorn Maneerat Volatility is back. Realized volatility (volatility that happened, not priced for the next month by the VIX) has quadrupled in the last few weeks. 20-Day Realized Vol ■Nasdaq 100 =5&P 500 20 15 The Daily Shot® 2022 2023 2024 Daily Shot On Monday, the unwinding of 50% of the $1.7 trillion Yen carry trade helped fuel the worst stock day since October 2022. Volatility Index ($VIX) Jan 1990 - Aug 2024 90.0 12.7 (Mar 2020) 80.9 (Oct 2008) 80.0 @CharlieBilello 70.0 C CREATIVE PLANNING 60.0 50.0 ...

Thomas Barwick/DigitalVision via Getty Images My previous article on Brookfield Infrastructure Partners (NYSE:BIP)(TSX:BIP.UN:CA)(BIPC) was issued right after BIP circulated its Q1, 2024 financials, which provided sufficient basis of new data points for investors to remain bullish here. However, the overall thesis of having a long position in BIP boiled down to the following aspects: Relatively high organic growth through periodic revenue bumps and CPI escalators. Possibility to grow without notable relianc ...

Investment Strategy and Performance - Brookfield Corporation aims to deliver over 15% annualized returns to shareholders, supported by a long-term investment strategy [182]. - The company has a proven track record of delivering 15%+ annualized returns for over 30 years, leveraging deep investment and operational expertise [189]. - The company focuses on investing in assets with stable, contracted, or inflation-linked revenues, driving outsized financial returns through operational excellence [183]. - Distributable earnings (DE) is the primary performance measure used to evaluate the company's business performance [191]. - The company aims to diversify its investment portfolio by acquiring public and private real assets across various asset classes [353]. Financial Position and Liquidity - The company maintains a conservative leverage approach, with only 6% of total leverage having recourse to the Corporation [190]. - Brookfield Corporation has a significant liquidity position, referred to as core liquidity, to support its investment strategies [185]. - The company has $41.8 billion of capital in its Operating Businesses, providing financial stability and flexibility [196]. - Cash and cash equivalents increased by $27 million, reflecting stable liquidity [269]. Revenue and Earnings - Revenues for the quarter were $23.1 billion, a decrease of $618 million or 3% compared to the prior year quarter, primarily due to the absence of contributions from net dispositions [211]. - Net income attributable to common shareholders was $43 million for the quarter, a decrease of $38 million compared to the prior year [206]. - The company recorded a consolidated net loss of $285 million for the quarter, a decrease of $1.8 billion compared to the prior year quarter [206]. - In Q2 2024, the company generated DE of $2.1 billion, with DE before realizations increasing by $100 million or 11% year-over-year [315]. Segment Performance - Wealth Solutions business insurance assets grew to over $110 billion following the acquisition of American Equity Life (AEL), with annualized earnings of $1.4 billion expected to increase as the investment portfolio shifts to higher yielding assets [194]. - Equity accounted income increased by $424 million to $825 million for the quarter, driven by growth in the Wealth Solutions business and increases in the value of certain U.S. retail assets [210]. - The Infrastructure segment's acquisitions contributed $642 million in revenue and $131 million in net income [229]. - Renewable power and transition fee-bearing capital increased by $370 million, driven by higher market valuations and inflows from capital raised [329]. Costs and Expenses - Direct costs decreased by $754 million to $19.2 billion, primarily due to the deconsolidation of certain operations and lower inventory costs [212]. - Interest expense increased by $412 million to $4.2 billion, primarily due to incremental borrowings associated with acquisitions and higher interest rates on floating rate debt [215]. - The effective tax rate for the first half of 2024 was 71%, significantly higher than 26% in 2023 [251]. - Impairment and provisions expense for the quarter was $77 million, primarily related to the lower valuation of a Brazil biomass asset [246]. Asset Management - The Asset Management business has approximately $1 trillion in assets under management (AUM) as of June 30, 2024, focusing on long-term investments in real assets and essential service businesses [192]. - Total assets increased by $7.2 billion to $497.3 billion as of June 30, 2024, primarily due to recent business combinations and asset acquisitions in the Infrastructure and Real Estate segments [263]. - Investment properties increased by $3.1 billion to $127.2 billion, driven by $6.0 billion in acquisitions, mainly in multifamily and logistics assets [266]. Shareholder Returns and Equity - The quarterly dividend for Class A and B shares was declared at $0.16, representing a 14.3% increase from $0.14 in 2023 [289]. - Common equity decreased by $442 million to $41.2 billion, primarily due to net income of $145 million and share repurchases of $715 million [278]. - Common equity in the Wealth Solutions segment increased to $9.0 billion as of June 30, 2024, up from $6.1 billion at the end of 2023 [356]. Market and Economic Factors - The company aims to hedge foreign currency exposure, particularly against Brazilian real and Colombian peso, where hedge levels were lower due to high historical costs [288]. - The company’s renewable power operations are seasonal, with higher generation during winter rainy seasons in Brazil and spring thaws in North America [293]. - The company’s Private Equity operations show revenue and direct cost variances due to acquisitions, foreign exchange fluctuations, and economic cycles [294].

Brookfield Corporation (NYSE:BN) Q2 2024 Results Conference Call August 8, 2024 10:00 AM ET Company Participants Angela Yulo - VP, IR Bruce Flatt - CEO Nick Goodman - President Conference Call Participants Geoff Kwan - RBC Capital Markets Mario Saric - Scotiabank Cherilyn Radbourne - TD Cowen Sohrab Movahedi - BMO Capital Markets Alex Bernstein - JP Morgan Operator Hello, and welcome to the Brookfield Corporation's Second Quarter 2024 Conference Call and Webcast [Operator Instructions]. I would now like to ...

Investors bought the beaten-down infrastructure stock ahead of earnings. Brookfield Infrastructure Partners (BIP -1.53%) stock may have shed nearly 13% value in the first six months of 2024, but it took just one month to reverse all of those losses and some. Units of the master limited partnership rallied 15.1% in July, according to data provided by S&P Global Market Intelligence. Shares of Brookfield Infrastructure Corporation (BIPC -0.19%) gained 15.6% last month. The infrastructure stock appeared ripe fo ...

Assets Under Management Now Approximately $1 Trillion $68 Billion of Capital Raised in the Quarter Annualized FRE and DE Grew 11% and 12% to $2.5 Billion and $2.4 Billion BROOKFIELD, NEWS, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) today announced financial results for the quarter ended June 30, 2024. Connor Teskey, President of Brookfield Asset Management stated, "We had another strong quarter, which included $68 billion of capital raised. There is strong momen ...

JamesBrey A major market rotation is going on right now with investors shifting capital from overvalued tech, crypto, and other names that have been booming in recent years to defensive businesses that should hold up well during a recession and benefit from interest rate cuts. We have been positioning our portfolio over the past year in anticipation of this market reversal and - while we were probably a bit early - today we are reaping the benefits of it while still having outperformed the market in recent ...

Core Viewpoint - Brookfield Property Partners has declared quarterly distributions for its preferred units, reflecting its ongoing commitment to returning value to shareholders [2]. Group 1: Financial Distributions - The Board of Directors announced quarterly distributions for the preferred units as follows: $0.40625 per unit for BPYPP, $0.3984375 per unit for BPYPO, $0.359375 per unit for BPYPN, and $0.390625 per unit for BPYPM [2]. - These distributions are payable on September 27, 2024, to holders of record as of September 3, 2024 [2]. Group 2: Company Overview - Brookfield Property Partners is recognized as one of the leading real estate companies globally, managing a diverse portfolio that includes office, retail, multifamily, logistics, hospitality, single-family rentals, manufactured housing, student housing, and self-storage properties [3]. - The company operates in major markets worldwide and is a subsidiary of Brookfield Corporation [3].

Core Insights - Brookfield Renewable Partners reported strong financial results for Q2 2024, achieving a 9% increase in Funds From Operations (FFO) to $339 million, or $0.51 per unit, driven by M&A and organic growth initiatives [2][3][18]. Financial Performance - Net income attributable to unitholders for Q2 2024 was a loss of $154 million, compared to a loss of $39 million in Q2 2023 [3][18]. - Total revenues for Q2 2024 reached $1.482 billion, up from $1.205 billion in Q2 2023 [42]. - The company’s FFO for the six months ended June 30, 2024, was $635 million, compared to $587 million for the same period in 2023 [3][18]. Growth Initiatives - Brookfield Renewable deployed or committed to deploy $8.6 billion of capital globally, with $970 million net to Brookfield Renewable [4]. - The company secured contracts to deliver an additional 2,700-gigawatt hours per year, with approximately 90% contracted with corporate customers [4]. - The company commissioned approximately 1,400 megawatts of new renewable energy capacity in Q2 2024 and expects to bring on approximately 7,000 megawatts this year [4][21]. Strategic Acquisitions - Brookfield, along with institutional partners, agreed to acquire approximately 53% of Neoen, a leading global renewable platform, for $6.7 billion [6][9]. - The acquisition of Leap Green in India for ~$200 million adds 500 megawatts of operating capacity and a 3,000-megawatt development pipeline [10]. - The company also entered the South Korean market by acquiring Hanmaeum Energy, which has 340 megawatts of operating capacity and over 4,000 megawatts of development projects [11][12]. Market Position and Outlook - Brookfield Renewable operates one of the largest publicly traded platforms for renewable power, with over 34,000 megawatts of operating capacity and a development pipeline of approximately 200,000 megawatts [34]. - The company aims to achieve a 10%+ FFO per unit growth target for 2024, supported by its diverse operating fleet and strategic investments [2][18]. - The company’s balance sheet remains strong, with $4.4 billion of available liquidity, providing flexibility for continued investment in growth [22][27].

Core Insights - Brookfield Infrastructure Partners reported strong second-quarter results driven by organic growth and capital deployment opportunities in sectors such as data, electric utility, and natural gas due to increased AI adoption [2][3] Financial Performance - Net income for the second quarter of 2024 was $8 million, a significant decrease from $378 million in the same period last year, impacted by increased borrowing costs and prior gains from capital recycling [3][4] - Funds from operations (FFO) for the second quarter reached $608 million, a 10% increase from $552 million in the prior year, supported by organic growth and recent acquisitions [3][4] - FFO per unit for the second quarter was $0.77, compared to $0.72 in the same period last year [32] Segment Performance - Utilities segment generated FFO of $180 million, down from $224 million year-over-year, primarily due to capital recycling activities [4] - Transport segment saw a 60% increase in FFO to $319 million, driven by acquisitions and organic growth [5] - Midstream segment reported FFO of $143 million, slightly ahead of the previous year, benefiting from strong demand in North American gas storage [6] - Data segment's FFO increased by 8% to $78 million, reflecting contributions from recent acquisitions [7] Strategic Initiatives - The company completed seven follow-on acquisitions in 2024, totaling nearly $4 billion in enterprise value, including data center sites and stakes in Brazilian logistics operations [8][9] - The organic growth project backlog increased by 15% to $7.7 billion, with significant investments planned in midstream and data sectors [9] - The company anticipates an active second half of 2024 for M&A activities, driven by favorable market conditions and industry trends such as AI [10] Capital Recycling - Brookfield Infrastructure is actively pursuing capital recycling, with expectations to generate approximately $2.5 billion from asset sales in the coming quarters [11] - The company has already monetized assets totaling $210 million this quarter, bringing the total for the year to $1.4 billion [11] Distribution and Dividend - The Board declared a quarterly distribution of $0.405 per unit, representing a 6% increase compared to the prior year, payable on September 27, 2024 [12][13]