Blake161 raises a valid point - the structure is certainly complex and they rely on others to manage individual funds (which brings us to the question of why we are paying Brokfield their management fee) but you get outstanding value for the 10c you pay on market - which is where I agree with Bmission: it's diversified, backed by one of the largest investment companies (Brookfield Asset Management has just poured $700m into BBI) and has high NTA.
At today's prices they could raise $20m in 1 for 1 rights issue which would help repair their balance sheet - from that point onwards, it's a waiting game. All they have to do is continue to participate in rights issues by their unlisted funds and wait for economic conditions to improve. It's no quick return play (they aren't likely to resume paying dividends any time soon) and there are probably better opportunities elsewhere (oil & gas for example - gotta love BCC, have a lot of faith in NWE, GGP and GBZ) but do any of them come with low risk, like MPF? I don't think so. I can see it doing a capital raising in 6 months, continuing to repay its debt and seeing share price at 30c in 12-24 months.
Nonetheless, one has to question the business model - let's set up a fund that will borrow money and invest in other, already leveraged funds and collect our 0.5% comission for doing....not much to be precise. What you get is double set of fees, double the leverage.
But who cares when you get it at 10c/share...
MPF Price at posting:
10.5¢ Sentiment: LT Buy Disclosure: Held
