Brookfield Asset Management Inc Q4 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Cherilyn Radbourne - TD Securities Equity Research - Analyst : In terms of the discussion regarding the separation of an asset-light manager, can you expand a little more on how you weigh that internally, just considering the flexibility that the balance sheet has provided historically versus the opportunities that you referred to that would open up if you had a more appropriately valued asset manager?

Question: Cherilyn Radbourne - TD Securities Equity Research - Analyst : Okay. I'll let others pick that up. I'm sure you're going to get lots of questions. I did want to ask one about the wealth channel, which the asset management industry has really just only started to tap. Can you talk about how much of your fee-bearing capital and current fundraising is coming REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2022 / 3:00PM, BAM.N - Q4 2021 Brookfield Asset Management Inc Earnings Call from that channel? But also, how do you factor in the significant retail ownership of the perpetual affiliates when you think about your scale in a retailer well?

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : Just coming back to the potential asset manager spinoff, I think you've referenced a couple of times the potential to spin out or separate a part of the manager. If we sit back and just think about the intrinsic value of the company today and invested capital you pointed out in the value of the asset manager, is the part in reference to differentiating between kind of public and private fee streams? I'm just hoping you can expand on how you define part in terms of the options that you're considering.

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : Got it. Okay. And then I guess there's a couple of different ways you can go about doing it in terms of separating the asset manager from the invested capital. What are some of the ways that you're thinking about today? Or is it too early to say?

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : Right. Okay. And then just my second question just pertains to real estate asset dispositions. It seems like there's daily headlines of BAM selling assets, as you pointed out at good valuations. Do you have an expected range of real estate dispositions, of BAM's share for 2022? And if so, where do you think most of the focus will come from in terms of geography and asset type? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2022 / 3:00PM, BAM.N - Q4 2021 Brookfield Asset Management Inc Earnings Call

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : I just wanted to also maybe start off by thinking about the scheme you're talking about to make sure that the underappreciated value of the asset manager is realized. I mean, Nick, in the past we've talked about maybe buybacks as a way of extracting some of that value. And I wonder if you could even talk a little bit about where we are on that. But also, what about distributing some of the invested capital to the BAM shareholders? I guess the essence of the question being, why would the Holdco, if you will, then not trade at a discount if you had this spinout? I'm just trying to kind of think through a bunch of these things if you can, please.

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Just going back to the asset manager potential spin, I'm just wondering, obviously you've talked about it is still a little bit preliminary, but would any sort of spinoff have, at least theoretically, the potential to change the relationship with BIP, BEP, BPG, BBU in terms of management services agreement, whether or not it's financial terms or other, as opposed to keeping the status quo? Or is that probably one of the considerations as you think about what ways to go about doing it if you decide to go with the spin?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Okay. And then my second question was just on the global transition fund, I mean it sounds like obviously, the opportunity is large and numerous. I'm just trying to I guess understand a little bit how you're going about figuring out where to focus on, where the best opportunities are, whether or not it's the renewable assets themselves or if it's making investments with operating companies that need help with the transition. Are there certain geographies that are more attractive, that sort of thing?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Just a more detailed or maybe a final one. I think you mentioned about $10 billion of real estate dispositions. Any indications as to what the plan is for that cash?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Nick, just to be crystal clear, it may involve making new investments in the real estate sleeve?