) for free daily and weekly newsletters, in-depth industry coverage and analysis, and access to ProStation - a powerful tool to help you manage your clients’’ portfolios.: I owned shares of Brookfield Asset Management Inc. before its recent split into two publicly traded companies. Is there any guidance or formula to determine the adjusted cost base I should attribute to the shares I now own?Yes, there is. But first, let’s briefly recap the transaction.
Concurrent with the name change, the company distributed 25 per cent of its asset management business to shareholders. This created a new company called – I warned you this might get a bit confusing – Brookfield Asset Management Ltd. For every four shares of the old BAM Inc., investors received one share of the new BAM Ltd., which trades under the symbol – you guessed it – BAM .
According to tax information on Brookfield’s website, 88 per cent of the original cost base of the old BAM.A shares should be allocated to the BN shares, with the remaining 12 per cent allocated to the new BAM shares.Say you owned 500 shares of BAM.A that you purchased a few years ago at an average price of $40, for a total cost of $20,000. After the distribution, you would own 500 shares of BN, plus 125 shares of the new BAM.