# ENF Enbridge Income Fund Holdings



## gibor365 (Apr 1, 2011)

What do you think about Enbridge Income Fund Holdings ENF? I don't rally understand what is difference between common stock and income fund... like what is difference between ENF and ENB? Are they linked?


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## doctrine (Sep 30, 2011)

ENB owns a majority of ENF (~55-60%). They sell them their mature assets, and ENF pays out most of its earnings in dividends. I like them, and almost bought them a few months ago when they dropped to $22. With a 5% yield and more dividend growth potential in the next year, it's a good stock, although not a screaming bargain.


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## webber22 (Mar 6, 2011)

Enbridge Income Fund (ENF)
...Declared a dividend payable on December 15, 2014 to shareholders of record on December 1, 2014 in the sum of $0.1285 per common share of the Company (Common Share),
representing a* 12.1 percent increase* to $1.542 per Common Share on an annualized basis.

http://www.enbridgeincomefund.com/Read-the-Latest-News/News-Releases.aspx#yearTab=en2014&id=2765060


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## Canadian (Sep 19, 2013)

Woohoo!


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## blin10 (Jun 27, 2011)

regret selling full position at 26, but hey $3 per share profit I shouldn't be complaining


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## Canuck (Mar 13, 2012)

oh wow I totally missed the news release about the divy hike. Thank you


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## Greyhound86 (Feb 21, 2010)

Even with the increase in the dividend, the share price has gone up so much in the past year the yield is only around 5%

When I bought shares in ENF a year ago the yield was allmost 6%.

I don't honestly know if the company will grow much on a per share basis. They might grow by purchasing more assets from Enbridge but issue more shares to pay for them.

The dividend might go up a bit but without growth an investment in this company at this time might be similar to buying a perennial preferred share yielding 5%. i.e. the share price will go up or down depending on the direction of interest rates. 

I might sell my shares. The gain I have made is the equivalent of 5 years of dividends at the current rate.


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## gibor365 (Apr 1, 2011)

Canuck said:


> oh wow I totally missed the news release about the divy hike. Thank you


I also missed  and looks like hike is pretty nice 12%?!


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## gibor365 (Apr 1, 2011)

ENF dropped 13% in last 6 days and trades much below BV ...EPS and Revenu are growing both MRQ and TTM....Forwars P/E 19.4, Forward 5 year average 22.8 ,,,,,,,, What do you think? Worth buying?


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## Eclectic12 (Oct 20, 2010)

gibor said:


> I don't rally understand what is difference between common stock and income fund...


Now that the SIFT rules apply so that only RE trusts keep the tax advantage ... I believe there is no difference in terms of the investment itself (i.e. it trade on the stock exchange in the same way, gets taxed the same as the corp would etc.).

I believe it's just a label to let the investor know what the corporate goal is.

For example, a MF with a "bond" name identifies that it invest in bond whereas "money market" is investing in money market instruments, "index" is index and "equities" is equities but all of them are MFs. Or maybe a closer match is ETFs.


Their web site makes it sound like they are looking to expand beyond Enbridge operated assets but here's the description.

"Learn About ENF

Enbridge Income Fund Holdings Inc. (ENF) is designed and managed to appeal to investors seeking reliable and predictable cash returns from low-risk energy infrastructure assets.

Through ENF, investors can participate in a diversified portfolio of energy transportation and power generation businesses owned by Enbridge Income Fund (the Fund) and operated by Enbridge Inc. (Enbridge), one of North America’s leading energy delivery companies."



Cheers


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## like_to_retire (Oct 9, 2016)

So, no more ENF, SEP, EEP, EEQ - just ENB. I wonder how ENB's share price will react to this monster change?

Enbridge Announces Simplification of Corporate Structure with Proposals to Acquire All of the Outstanding Sponsored Vehicle Equity Securities

_"CALGARY, May 17, 2018 /CNW/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge) today announced it has made, on behalf of itself and certain of its wholly owned US subsidiaries, separate all-share proposals to the respective boards of directors of its sponsored vehicles, Spectra Energy Partners, LP (NYSE: SEP), Enbridge Energy Partners, L.P. (NYSE: EEP), Enbridge Energy Management, L.L.C (NYSE: EEQ) and Enbridge Income Fund Holdings Inc. (TSX: ENF), to acquire, in separate combination transactions, all of the outstanding equity securities of those sponsored vehicles not beneficially owned by Enbridge". _

ltr


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## like_to_retire (Oct 9, 2016)

I guess no one owns ENF here. 

The nice 8% dividend is gone, but you would gain on capital, so it's a toss up if selling it is the way to go or not. 

I don't own it, but I do own ENB and wonder how it will all settle out after the deal is done.

ltr


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## RBull (Jan 20, 2013)

like_to_retire said:


> I guess no one owns ENF here.
> 
> The nice 8% dividend is gone, but you would gain on capital, so it's a toss up if selling it is the way to go or not.
> 
> ...


I own both. Market reaction for ENF seems good now with a 5% pop, however temporary that is. ENB is up a bit too. 


I guess we'll see how this all shakes out.


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## Foiwater (May 16, 2018)

Remember regardless of what happens to the ENF share price now, an ENF holder will receive a fixed price per share (I believe I read 29.78) regardless of what the share price goes to. The slight decrease that will happen to ENF below 29.78 reflects the disbelief that the transaction will go through and represents profit takers who are selling now. ENB will buy your shares in ENF for a fixed 29.78 and give you ENB shares in lieu of the cash I believe at today's ENB share price (?)


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## RBull (Jan 20, 2013)

Foiwater said:


> Remember regardless of what happens to the ENF share price now, an ENF holder will receive a fixed price per share (I believe I read 29.78) regardless of what the share price goes to. The slight decrease that will happen to ENF below 29.78 reflects the disbelief that the transaction will go through and represents profit takers who are selling now. ENB will buy your shares in ENF for a fixed 29.78 and give you ENB shares in lieu of the cash I believe at today's ENB share price (?)


This is from the announcement and explains clearly why ENF had the 5% pop, what shareholders will get:

Under today's restructuring proposal:

ENF shareholders will receive *0.7029 common shares of Enbridge per ENF share*, representing a value of *CAN$29.38* per ENF share, based on the closing price of Enbridge common shares on the TSX on May 16, 2018, *reflecting a 5% premium to the closing price of ENF's common shares on the TSX on May 16, 2018*.
Enbridge believes that the proposed exchange ratio for ENF reflects an attractive premium to its stand-alone value.
The proposed plan of arrangement transaction is subject to the approval (i) by holders of 66⅔% of the outstanding ENF shares present in person or by proxy at a meeting of shareholders, and (ii) by holders of a majority of the ENF shares present in person or by proxy at a meeting of shareholders, other than Enbridge, its affiliates and other insiders.


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## Foiwater (May 16, 2018)

29.38 not 29.78 my mistake


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## AltaRed (Jun 8, 2009)

It was about time to get rid of the complicated structure. The loss of the tax advantages of the MLPs in the US is the opportunity to make this a single corporate structure that even Enbridge can understand. ENF was nothing more than a funding vehicle for ENB leveraging cheap equity from income addicted shareholders while maintaining total control. Heck, whenever ENB dumped assets into ENF, no one could really be sure whether it was in the ENF shareholder's interest to begin with. Conflict of interest and all that.

I suspect this move will make ENB a whole lot more transparent and decipherable to all. Gotta be worth a few percentage points on ENB stock price all by itself.


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## Foiwater (May 16, 2018)

OK I see what you're saying, it's a share swap. So I guess technically, as the ENB price changes in the interim, that will likely affect ENF as well. Unlike, say, when PPL bought VSN for a fixed price.


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## like_to_retire (Oct 9, 2016)

RBull said:


> This is from the announcement and explains clearly why ENF had the 5% pop, what shareholders will get:
> 
> Under today's restructuring proposal:
> 
> ...


Yeah, it's not unusual for the market to get a bit crazy when something like this is announced. You'll often see market above the fixed price that's going to be paid. It's an opportunity to get out for those that are watching closely.

ltr


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## RBull (Jan 20, 2013)

AltaRed said:


> It was about time to get rid of the complicated structure. The loss of the tax advantages of the MLPs in the US is the opportunity to make this a single corporate structure that even Enbridge can understand. ENF was nothing more than a funding vehicle for ENB leveraging cheap equity from income addicted shareholders while maintaining total control. Heck, whenever ENB dumped assets into ENF, no one could really be sure whether it was in the ENF shareholder's interest to begin with. Conflict of interest and all that.
> 
> I suspect this move will make ENB a whole lot more transparent and decipherable to all. Gotta be worth a few percentage points on ENB stock price all by itself.


Yes, the complicated structure has certainly been a knock against them. Makes me think a bit about Brookfield. The impetus from MLP change probably pushed them over the edge. Conflict of interest certainly seems likely before. Moving the price up wouldn't be a bad thing. 



like_to_retire said:


> Yeah, it's not unusual for the market to get a bit crazy when something like this is announced. You'll often see market above the fixed price that's going to be paid. It's an opportunity to get out for those that are watching closely.
> 
> ltr


Market seems to be settling in right around the price offered.


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