Exchange Income Corporation is a “long-term core holding”, this fund manager says

LDIC fund manager Andrew Pink told BNN Bloomberg’s Market Call on Oct. 30 that Exchange Income Corporation (Exchange Income Corporation Stock Quote, Chart, News, Analysts, Financials TSX:EIF) remains a long-term core holding for his firm, citing its focus on essential services that provide resilient, contracted revenue.

Pink said EIF’s business model is built on acquiring companies across two verticals — aviation/aerospace and manufacturing — where underlying operations provide critical services.

“There’s a theme here and the theme is that these are all essential services,” he said.

In aviation, Pink pointed to the company’s Northern and Arctic operations as a key example.

“They’ve got aircraft routes that fly into Northern Canada and the Arctic, and this is the only way in and out — for people, for food, supplies, mail. It’s a very essential service. Contracted revenue for them.”

He also highlighted maritime surveillance contracts sold to governments globally as another highly durable revenue stream.

On the manufacturing side, EIF has expanded into industrial access mats and bridges, which provide environmentally required temporary access for utilities and energy companies operating in remote areas. Pink called it “a great business,” noting that environmental regulations now require protective access solutions rather than temporary gravel roads.

Pink said this essential-services focus makes EIF “more resilient when economic conditions change.”

He added that institutional ownership, which had fallen below 10% after peaking around 30% in 2014, has begun to recover, now reaching roughly 13–14%.

“That’s a big thing because it drives demand for these companies,” he said.

Pink praised EIF’s track record.

“They’ve got an amazing 20-year record of annual returns north of 20%, which is unbelievable; three times the TSX. Really good company, love management, and I like the business altogether.”

EIF shares have risen 40.26% over the past 12 months and 142.7% over five years. Of the analysts covering the stock, 12 rate it “Buy,” one “Hold” and none “Sell,” with a consensus target of $83.54.

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