Dear Shareholders,
We are pleased to provide the Semi-Annual
Report for Brookfield Real Assets Income Fund Inc. (the "Fund") for the six-month period ended June 30, 2023.
The first half of 2023 was at times marred
by catastrophic headlines. Three of the four largest bank failures in U.S. history took place during the first half of 2023, interest
and mortgage rates continued to move higher and inflation (while easing) remained elevated relative to the Federal Reserve's long-term
target. Yet somehow, the economy and markets shrugged off the headwinds to march higher.
Broad-market equity returns were very strong
in the first half of 2023. The MSCI World Index gained more than 15% on the back of strong returns from stocks concentrated within the
technology and consumer discretionary sectors. Returns for listed real assets were muted relative to those of broader equities. Global
infrastructure and real estate equity indexes were marginally positive overall for the first six months of the year. Energy infrastructure
was the best performer among the group, despite a 12% year-to-date decline in U.S. crude oil prices. Real asset debt indexes were marginally
higher than their equity counterparts and more in line with the broader debt market.
Within global listed real estate, North America
posted regional gains, while Asia and Europe lagged. Through the first six months of the year, we saw a wide dispersion in performance
among U.S. property types. We think this is a result of markets normalizing to an environment of higher interest rates. Property types
with stronger fundamentals (data centers and residential, for example) outperformed, while those facing headwinds have lagged (notably
office and mixed-use landlords with office assets). The office sector dominated headlines, which likely impacted sentiment toward the
asset class broadly.
Overall, we maintain our view that real estate
securities are deeply discounted relative to historical averages and relative to net asset values (NAVs). History suggests that buying
real estate securities at such wide discounts to NAVs may result in attractive future returns.
Within infrastructure, rate-sensitive sectors
like utilities and communications struggled in the first half of the year as rates grinded higher. Airports were a standout performer
as the global re-opening continued to unfold, boosted by easing measures out of the Asia Pacific region to start the year. As noted previously,
energy infrastructure also performed well amid an improving outlook for North American natural gas-oriented assets.
Looking ahead we think infrastructure is
uniquely well positioned, given its defensive and growth characteristics. In the near term, we believe that high-quality utilities could
benefit from a volatile environment. At the same time, utilities positioning their portfolios for the shift to renewables stand to benefit
from this secular growth trend. Additionally, permitting reform in the U.S. could pave the way for increased natural gas throughput for
energy infrastructure assets.
Real asset high-yield debt modestly underperformed
the broader universe due to lower exposure to lower-rated constituents (which outperformed). Real asset investment grade also slightly
underperformed its broader bond market counterpart, because of its longer duration amid rising rates.
Amid the current economic backdrop, we believe
investors stand to benefit more from real asset debt, relative to the broader fixed-income universe. Real asset debt credit spreads remain
near their longer-term averages, but we think current yields for high-quality real asset debt issuers present a more compelling opportunity
over the broader universe.
Our multi-strategy real asset solutions team,
which allocates across our strategies, maintains the view that global growth is likely to slow through the second half of 2023. As a result,
our positioning remains defensive within our multi-asset portfolios, with a modest underweight to real asset equities, a modest overweight
to real asset debt, and defensive cash positioning. We hold no direct commodity exposure.
In addition to performance information and
additional discussion of factors impacting the Fund, this report provides the Fund's unaudited financial statements and schedules of investments
as of June 30, 2023.
2023 Semi-Annual Report
1
LETTER TO SHAREHOLDERS
(continued)
We welcome your questions and comments and
encourage you to contact our Investor Relations team at 1-855-777-8001 or visit us at https://publicsecurities.brookfield.com/en for more
information.
Thank you for your support.
Sincerely,
|
|
|
|
Brian F. Hurley |
|
David W. Levi, CFA |
|
President |
|
Chief Executive Officer |
|
Brookfield Real Assets Income Fund Inc. |
|
Brookfield Public Securities Group LLC |
|
These views represent the opinions of Brookfield
Public Securities Group LLC and are not intended to predict or depict the performance of any investment. These views are primarily as
of the close of business on June 30, 2023, and subject to change based on subsequent developments.
Past performance is no guarantee
of future results.
Investing involves risk. Principal
loss is possible. Real assets includes real estate securities, infrastructure securities and natural resources securities. Property values
may fall due to increasing vacancies or declining rents resulting from unanticipated economic, legal, cultural or technological developments.
Infrastructure companies may be subject to a variety of factors that may adversely affect their business, including high interest costs,
high leverage, regulation costs, economic slowdown, surplus capacity, increased competition, lack of fuel availability and energy conservation
policies. Natural resources securities may be affected by numerous factors, including events occurring in nature, inflationary pressures
and international politics.
Quasar Distributors, LLC provides filing
administration for the Brookfield Real Assets Income Fund Inc.
Brookfield Public Securities
Group LLC
2
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Fund Performance (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
As of June 30, 2023 |
|
Six Months† |
|
1 Year |
|
5 Years |
|
Since Inception* |
|
Brookfield Real Assets Income Fund Inc. - Based
on Net Asset Value |
|
|
2.95 |
% |
|
|
3.48 |
% |
|
|
2.38 |
% |
|
|
3.67 |
% |
|
Brookfield Real Assets Income Fund Inc. - Based
on Market Price |
|
|
11.74 |
% |
|
|
5.02 |
% |
|
|
6.63 |
% |
|
|
7.86 |
% |
|
ICE BofA U.S. High Yield Index |
|
|
5.45 |
% |
|
|
8.97 |
% |
|
|
3.20 |
% |
|
|
3.87 |
% |
|
† Returns
for less than one year are not annualized.
* Inception date
of December 2, 2016.
The table does not reflect the deduction
of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Disclosure
Past performance is no guarantee
of future results.
All returns shown in USD.
ICE BofA U.S. High Yield Index tracks the
performance of U.S.-dollar-denominated below-investment-grade corporate debt publicly issued in the U.S. domestic market.
An index does not reflect any fees, expenses
or sales charges. It is not possible to invest directly in an index. Index performance is shown for illustrative purposes only and does
not predict or depict the performance of the Fund.
The Fund's portfolio holdings are subject
to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold
any particular security. There is no assurance that the Fund currently holds these securities. Please refer to the Schedule of Investments
contained in this report for a full listing of fund holdings.
The Fund may utilize leverage to seek to
enhance the yield and net asset value of its common stock, as described in the Fund's prospectus. These objectives will not necessarily
be achieved in all interest rate environments. The leverage strategy of the Fund assumes a positive slope to the yield curve (short-term
interest rates lower than long-term rates). Otherwise, the benefits of leverage will be reduced or eliminated completely. The use of leverage
involves risk, including the potential for higher volatility and greater declines of the Fund's net asset value, fluctuations of dividends
and other distributions paid by the Fund and the market price of the Fund's common stock, among others.
This report may contain information obtained
from third parties, including ratings from credit ratings agencies such as Standard & Poor's. Reproduction and distribution of third
party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers
do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible
for any errors or omissions (negligent or otherwise), regardless of the case, of the results obtained from the use of such content.
THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS
OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD
PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL
DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE)
IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact
or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities
for investment purposes, and should not be relied on as investment advice.
Past performance is no guarantee
of future results.
2023 Semi-Annual Report
3
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Fund Performance (Unaudited)
Performance data quoted represents past performance
results and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.
Fixed income investing entails credit and
interest rate risks. Interest rate risk is the risk that rising interest rates or an expectation of rising interest rates in the near
future will cause the values of the Fund's investments to decline. Risks associated with rising interest rates are heightened given that
rates in the U.S. are at or near historic lows. When interest rates rise, bond prices generally fall, and the value of the portfolio can
fall. Below-investment-grade ("high yield" or "junk") bonds are more at risk of default and are subject to liquidity risk. Mortgage-backed
securities are subject to prepayment risk. Foreign investments may be volatile and involve additional expenses and special risks, including
currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially
volatile. Derivative instruments entail higher volatility and risk of loss compared to traditional stock or bond investments.
These views represent the opinions of Brookfield
Public Securities Group LLC and are not intended to predict or depict the performance of any investment. These views are as of the close
of business on June 30, 2023 and subject to change based on subsequent developments.
Brookfield Public Securities
Group LLC
4
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Portfolio Characteristics
(Unaudited)
June 30, 2023
PORTFOLIO STATISTICS |
|
Annualized distribution rate1 |
|
|
14.25 |
% |
|
Weighted average coupon |
|
|
5.03 |
% |
|
Duration |
|
|
2.40
years |
|
|
Percentage of leveraged assets |
|
|
16.26 |
% |
|
Total number of holdings |
|
|
488 |
|
|
ASSET BY COUPON TYPE DISTRIBUTION2 |
|
Corporate Credit |
|
|
|
—
Real Estate |
|
|
16.4 |
% |
|
—
Infrastructure |
|
|
27.2 |
% |
|
—
Natural Resources |
|
|
9.3 |
% |
|
Total Corporate Credit |
|
|
52.9 |
% |
|
Securitized Credit |
|
|
|
—
Residential Mortgage-Backed Securities |
|
|
24.4 |
% |
|
—
Commercial Mortgage-Backed Securities |
|
|
9.5 |
% |
|
—
Other |
|
|
3.3 |
% |
|
Total Securitized Credit |
|
|
37.2 |
% |
|
Equities |
|
|
|
—
Real Estate |
|
|
0.1 |
% |
|
—
Infrastructure |
|
|
6.0 |
% |
|
—
Natural Resources |
|
|
0.1 |
% |
|
Total Equities |
|
|
6.2 |
% |
|
Money Market Fund |
|
|
3.7 |
% |
|
Total |
|
|
100.0 |
% |
|
FIXED INCOME ASSETS BY CREDIT RATING3 |
|
BBB and Above |
|
|
18.9 |
% |
|
BB |
|
|
39.3 |
% |
|
B |
|
|
13.1 |
% |
|
CCC and Below |
|
|
6.1 |
% |
|
Unrated |
|
|
22.6 |
% |
|
Total |
|
|
100.0 |
% |
|
1 The distribution
rate referenced above is calculated as the annualized amount of the most recent monthly distribution declared divided by the June 30,
2023 stock price. This calculation does not include any non-income items such as loan proceeds or borrowings. The Fund estimates that
it has distributed more than its net investment income and net realized capital gains; therefore, a portion of your distribution may be
a return of capital. Year-to-date through June 30, 2023, 71.73% of its distributions are estimated to be a return of capital.
2 Percentages
are based on total market value of investments.
3 Percentages
are based on total market value of fixed income securities.
2023 Semi-Annual Report
5
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
U.S. GOVERNMENT & AGENCY OBLIGATIONS
– 0.2% |
|
U.S. Government Agency Collateralized
Mortgage Obligations – 0.0% |
|
Federal
National Mortgage Association 6.85%, 1997-79, Class PL, 12/18/27 |
|
$ |
24,188 |
|
|
$ |
24,394 |
|
|
U.S. Government Agency Pass-Through
Certificates – 0.2% |
|
Federal
Home Loan Mortgage Corporation 7.00%, Pool C69047, 06/01/32 |
|
|
125,829 |
|
|
|
131,577 |
|
|
8.00%, Pool C56878, 08/01/31 |
|
|
32,675 |
|
|
|
32,655 |
|
|
8.00%, Pool C58516, 09/01/31 |
|
|
26,280 |
|
|
|
26,263 |
|
|
8.00%, Pool C59641, 10/01/31 |
|
|
27,622 |
|
|
|
27,603 |
|
|
8.50%, Pool C55167, 07/01/31 |
|
|
32,957 |
|
|
|
33,208 |
|
|
8.50%, Pool C55169, 07/01/31 |
|
|
39,706 |
|
|
|
40,137 |
|
|
8.50%, Pool C55166, 07/01/31 |
|
|
66,344 |
|
|
|
67,109 |
|
|
Federal
National Mortgage Association 7.00%, Pool 645913, 06/01/32 |
|
|
125,943 |
|
|
|
131,123 |
|
|
7.00%, Pool 645912, 06/01/32 |
|
|
120,795 |
|
|
|
125,872 |
|
|
7.00%, Pool 650131, 07/01/32 |
|
|
129,846 |
|
|
|
135,788 |
|
|
7.50%, Pool 827853, 10/01/29 |
|
|
7,603 |
|
|
|
7,547 |
|
|
7.50%, Pool 545990, 04/01/31 |
|
|
98,208 |
|
|
|
101,153 |
|
|
7.50%, Pool 255053, 12/01/33 |
|
|
38,627 |
|
|
|
41,050 |
|
|
7.50%, Pool 735576, 11/01/34 |
|
|
92,605 |
|
|
|
96,702 |
|
|
7.50%, Pool 896391, 06/01/36 |
|
|
72,151 |
|
|
|
71,445 |
|
|
8.00%, Pool 735800, 01/01/35 |
|
|
115,170 |
|
|
|
123,170 |
|
|
8.50%, Pool 636449, 04/01/32 |
|
|
119,233 |
|
|
|
125,893 |
|
|
8.79%, Pool 458132, 03/15/31 |
|
|
3,998 |
|
|
|
3,967 |
|
|
9.00%, Pool 545436, 10/01/31 |
|
|
106,279 |
|
|
|
113,640 |
|
|
Total U.S. Government Agency Pass-Through
Certificates |
|
|
1,435,902 |
|
|
Total
U.S. GOVERNMENT & AGENCY OBLIGATIONS(Cost $1,424,841) |
|
|
|
|
1,460,296 |
|
|
SECURITIZED CREDIT – 43.3% |
|
Commercial Mortgage-Backed Securities
– 11.2% |
|
ACAM
Ltd. 7.97%, 2019-FL1, Class D (1 Month SOFR + 2.86%), 11/17/34 (a),(b),(c) |
|
|
1,902,000 |
|
|
|
1,833,460 |
|
|
8.22%, 2019-FL1, Class E (1 Month SOFR + 3.11%),
11/17/34 (a),(b),(c) |
|
|
2,098,000 |
|
|
|
1,994,352 |
|
|
BAMLL
Commercial Mortgage Securities Trust 10.19%, 2021-JACX, Class F (1 Month US LIBOR + 5.00%), 09/15/38 (a),(c) |
|
|
5,000,000 |
|
|
|
3,950,179 |
|
|
BBCMS
Mortgage Trust 9.99%, 2021-AGW, Class G (1 Month US LIBOR + 4.80%), 06/15/36 (a),(c) |
|
|
4,000,000 |
|
|
|
3,422,442 |
|
|
BBCMS
Trust 8.14%, 2018-BXH, Class F (1 Month US LIBOR + 2.95%), 10/15/37 (a),(c) |
|
|
3,000,000 |
|
|
|
2,782,694 |
|
|
Beast
Mortgage Trust 9.64%, 2021-1818, Class F (1 Month SOFR + 4.56%), 03/15/36 (a),(c) |
|
|
1,250,000 |
|
|
|
868,956 |
|
|
Benchmark
Mortgage Trust 3.25%, 2018-B6, Class E, 10/10/51 (a) |
|
|
2,000,000 |
|
|
|
985,425 |
|
|
BWAY
Mortgage Trust 5.03%, 2022-26BW, Class E, 02/10/44 (a),(b) |
|
|
3,000,000 |
|
|
|
1,814,858 |
|
|
BX
Trust 8.83%, 2019-RP, Class E (1 Month US LIBOR + 3.64%), 06/15/34 (a),(c) |
|
|
1,600,000 |
|
|
|
1,554,048 |
|
|
9.23%, 2021-SDMF, Class J (1 Month US LIBOR
+ 4.03%), 09/15/34 (a),(c) |
|
|
5,000,000 |
|
|
|
4,640,978 |
|
|
CGDB
Commercial Mortgage Trust 8.19%, 2019-MOB, Class G (1 Month US LIBOR + 2.99%), 11/15/36 (a),(c) |
|
|
4,869,000 |
|
|
|
4,583,413 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
6
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
SECURITIZED CREDIT (continued) |
|
Citigroup
Commercial Mortgage Trust 9.84%, 2021-KEYS, Class G (1 Month US LIBOR + 4.65%), 10/15/36 (a),(c) |
|
$ |
3,500,000 |
|
|
$ |
3,349,680 |
|
|
CLNC
Ltd. 8.41%, 2019-FL1, Class E (1 Month SOFR + 3.31%), 08/20/35 (a),(b),(c) |
|
|
3,000,000 |
|
|
|
2,800,559 |
|
|
DBCCRE
Mortgage Trust 5.10%, 2014-ARCP, Class E, 01/10/34 (a) |
|
|
4,500,000 |
|
|
|
4,333,219 |
|
|
European
Loan Conduit 5.61%, 36A, Class C (3 Month EURIBOR + 2.25%), 02/17/30 (a),(b),(c) |
|
€ |
917,367 |
|
|
|
955,466 |
|
|
Federal
Home Loan Mortgage Corp. 4.48%, K-152, Class X3, 11/25/55 |
|
|
5,250,000 |
|
|
|
1,433,434 |
|
|
FS
Rialto 2.65%, 2019-FL1, Class C (1 Month US LIBOR + 2.50%), 12/16/36 (a),(b),(c) |
|
|
2,000,000 |
|
|
|
1,938,497 |
|
|
Great
Wolf Trust 8.39%, 2019-WOLF, Class F (1 Month SOFR + 3.25%), 12/15/36 (a),(c) |
|
|
3,000,000 |
|
|
|
2,865,540 |
|
|
GS
Mortgage Securities Corp. II 5.86%, 2021-RENT, Class A (1 Month US LIBOR + 0.70%), 11/21/35 (a),(c) |
|
|
899,787 |
|
|
|
870,464 |
|
|
GS
Mortgage Securities Trust 2.57%, 2020-GC47, Class F, 05/12/53 (a) |
|
|
3,500,000 |
|
|
|
1,587,723 |
|
|
Hilton
USA Trust 4.33%, 2016-HHV, Class E, 11/05/38 (a) |
|
|
11,000,000 |
|
|
|
9,818,126 |
|
|
4.93%, 2016-SFP, Class D, 11/05/35 (a) |
|
|
1,929,000 |
|
|
|
1,552,592 |
|
|
5.52%, 2016-SFP, Class E, 11/05/35 (a) |
|
|
1,300,000 |
|
|
|
914,296 |
|
|
JP
Morgan Chase Commercial Mortgage Securities Trust 7.06%, 2008-C2, Class AM, 02/12/51 (d) |
|
|
4,983,529 |
|
|
|
2,479,229 |
|
|
9.46%, 2021-HTL5, Class F (1 Month US LIBOR
+ 4.27%), 11/15/38 (a),(c) |
|
|
3,201,000 |
|
|
|
3,025,264 |
|
|
10.04%, 2021-1440, Class F (1 Month US LIBOR
+ 4.85%), 03/15/36 (a),(c) |
|
|
2,586,000 |
|
|
|
1,054,209 |
|
|
KIND
Trust 8.51%, 2021-KIND, Class E (1 Month SOFR + 3.36%), 08/15/38 (a),(c) |
|
|
1,489,237 |
|
|
|
1,415,272 |
|
|
9.21%, 2021-KIND, Class F (1 Month SOFR + 4.06%),
08/15/38 (a),(c) |
|
|
2,978,474 |
|
|
|
2,581,858 |
|
|
Last
Mile Securities 5.00%, 2021-1A, Class F (3 Month EURIBOR + 5.00%), 08/17/31 (a),(b),(c) |
|
€ |
2,037,581 |
|
|
|
1,997,637 |
|
|
Morgan
Stanley Capital I Trust 2.73%, 2017-HR2, Class D, 12/15/50 (a) |
|
|
3,000,000 |
|
|
|
1,937,309 |
|
|
Taurus
CMBS 6.43%, 2021-UK5, Class E (Sterling Overnight Index Average + 2.35%), 05/17/31 (b),(c) |
|
£ |
861,000 |
|
|
|
983,604 |
|
|
TPG
Real Estate Finance Issuer Ltd. 9.51%, 2021-FL4, Class E (1 Month US LIBOR + 4.35%), 03/15/38 (a),(b),(c) |
|
|
4,000,000 |
|
|
|
3,683,710 |
|
|
TTAN 9.39%,
2021-MHC, Class G (1 Month US LIBOR + 4.20%), 03/15/38 (a),(c) |
|
|
4,373,336 |
|
|
|
3,768,930 |
|
|
VMC
Finance LLC 8.66%, 2021-FL4, Class D (1 Month US LIBOR + 3.50%), 06/16/36 (a),(c) |
|
|
893,000 |
|
|
|
778,552 |
|
|
9.11%, 2021-FL4, Class E (1 Month US LIBOR
+ 3.95%), 06/16/36 (a),(c) |
|
|
3,107,000 |
|
|
|
2,704,923 |
|
|
9.26%, 2021-HT1, Class B (1 Month US LIBOR
+ 4.50%), 01/18/37 (a),(c) |
|
|
5,000,000 |
|
|
|
4,688,309 |
|
|
Wachovia
Bank Commercial Mortgage Trust 5.79%, 2006-C28, Class E, 10/15/48 |
|
|
1,321,304 |
|
|
|
1,317,156 |
|
|
Total Commercial Mortgage-Backed Securities |
|
|
93,266,363 |
|
|
Commercial Real Estate – 2.0% |
|
111
Wall Street 13.62% (1 Month US LIBOR + 9.25%), 07/01/23, (Acquired 6/9/2021 – 6/7/2023, cost $4,458,780) (c),(e),(f) |
|
|
4,458,780 |
|
|
|
4,458,780 |
|
|
125
West End Office Mezz LLC 14.90% (1 Month US LIBOR + 10.50%), 03/12/26, (Acquired 3/11/2021 – 5/31/2023, cost $2,720,228)
(c),(e),(f) |
|
|
2,750,730 |
|
|
|
2,750,730 |
|
|
See Notes to Financial Statements.
2023 Semi-Annual Report
7
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
SECURITIZED CREDIT (continued) |
|
575
Lexington 10.00% (1 Month US LIBOR + 10.00%), 07/30/23, (Acquired 3/17/2021 – 7/11/2022, cost $4,816,570) (c),(e),(f),(g) |
|
$ |
4,824,484 |
|
|
$ |
4,469,885 |
|
|
Hyatt
Lost Pines 9.41% (1 Month US LIBOR + 6.70%), 09/09/24, (Acquired 9/17/2021, cost $4,989,317) (c),(e),(f) |
|
|
5,000,000 |
|
|
|
5,000,000 |
|
|
Total Commercial Real Estate |
|
|
16,679,395 |
|
|
Interest-Only Securities – 0.3% |
|
Government
National Mortgage Association 0.41%, 2010-132, Class IO, 11/16/52 |
|
|
185,224 |
|
|
|
472 |
|
|
JP
Morgan Mortgage Trust 0.23%, 2021-INV1, Class AX1, 10/25/51 (a) |
|
|
46,320,702 |
|
|
|
515,920 |
|
|
0.25%, 2015-4, Class 2X1, 06/25/45 (a) |
|
|
37,533,648 |
|
|
|
281,052 |
|
|
0.27%, 2014-5, Class AX4, 10/25/29 (a) |
|
|
2,168,251 |
|
|
|
6,791 |
|
|
Mello
Mortgage Capital Acceptance 0.12%, 2021-INV1, Class AX1, 06/25/51 (a) |
|
|
49,450,891 |
|
|
|
278,028 |
|
|
Morgan
Stanley Capital I Trust 1.25%, 2016-UBS9, Class XE, 03/15/49 (a) |
|
|
14,999,000 |
|
|
|
426,757 |
|
|
Vendee
Mortgage Trust 0.00%, 1997-2, Class IO, 06/15/27 |
|
|
1,857,491 |
|
|
|
2 |
|
|
Voyager
CNTYW Delaware Trust 25.99%, 2009-1, Class 3QB1, 03/16/30 (a) |
|
|
1,020,986 |
|
|
|
970,647 |
|
|
Total Interest-Only Securities |
|
|
2,479,669 |
|
|
Other – 0.9% |
|
Lehman
ABS Manufactured Housing Contract Trust 6.63%, 2001-B, Class M1, 04/15/40 |
|
|
3,352,638 |
|
|
|
3,267,712 |
|
|
Mid-State
Trust X 7.54%, 10, Class B, 02/15/36 |
|
|
1,467,831 |
|
|
|
1,452,303 |
|
|
Oakwood
Mortgage Investors, Inc. 6.81%, 2001-E, Class A4, 12/15/31 |
|
|
2,629,788 |
|
|
|
2,560,114 |
|
|
6.93%, 2001-D, Class A4, 09/15/31 |
|
|
494,261 |
|
|
|
267,440 |
|
|
Total Other |
|
|
7,547,569 |
|
|
Residential Mortgage-Backed Securities
– 28.9% |
|
Alternative
Loan Trust 0.20%, 2006-41CB, Class 1A14 (1 Month US LIBOR + 5.35%), 01/25/37 (c),(h) |
|
|
6,447,343 |
|
|
|
495,536 |
|
|
3.83%, 2005-84, Class 2A1, 02/25/36 |
|
|
9,562,423 |
|
|
|
8,791,145 |
|
|
5.13%, 2007-OA3, Class 1A1 (1 Month US LIBOR
+ 0.28%), 04/25/47 (c) |
|
|
5,953,065 |
|
|
|
5,256,044 |
|
|
5.50%, 2005-10CB, Class 1A1 (1 Month US LIBOR
+ 0.50%), 05/25/35 (c) |
|
|
1,286,907 |
|
|
|
971,001 |
|
|
5.25%, 2007-2CB, Class 2A11 (1 Month US LIBOR
+ 0.40%), 03/25/37 (c) |
|
|
2,382,270 |
|
|
|
1,092,442 |
|
|
5.57%, 2007-HY6, Class A1 (1 Month US LIBOR
+ 0.42%), 08/25/47 (c) |
|
|
2,132,865 |
|
|
|
1,762,046 |
|
|
5.65%, 2007-16CB, Class 4A5 (1 Month US LIBOR
+ 0.50%), 08/25/37 (c) |
|
|
3,744,728 |
|
|
|
2,538,900 |
|
|
5.75%, 2007-12T1, Class A22, 06/25/37 |
|
|
1,677,058 |
|
|
|
786,274 |
|
|
5.55%, 2006-19CB, Class A9 (1 Month US LIBOR
+ 0.70%), 08/25/36 (c) |
|
|
1,845,170 |
|
|
|
934,457 |
|
|
6.00%, 2006-29T1, Class 2A5, 10/25/36 |
|
|
1,103,871 |
|
|
|
660,029 |
|
|
6.00%, 2006-45T1, Class 2A5, 02/25/37 |
|
|
2,014,940 |
|
|
|
1,122,034 |
|
|
6.50%, 2006-29T1, Class 2A6, 10/25/36 |
|
|
1,732,234 |
|
|
|
1,085,808 |
|
|
9.02%, 2006-23CB, Class 2A7 (1 Month US LIBOR
+ 28.40%), 08/25/36 (c),(h) |
|
|
1,194,947 |
|
|
|
696,535 |
|
|
5.75%, 2007-15CB, Class A2, 07/25/37 (b) |
|
|
1,642,127 |
|
|
|
1,004,910 |
|
|
6.00%, 2006-41CB, Class 1A7, 01/25/37 (b) |
|
|
12,521,250 |
|
|
|
7,022,933 |
|
|
29.38%, 2006-29T1, Class 3A3 (1 Month US LIBOR
+ 78.40%), 10/25/36 (c),(h) |
|
|
631,077 |
|
|
|
992,788 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
8
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
SECURITIZED CREDIT (continued) |
|
Bellemeade
Re Ltd. 7.15%, 2019-2A, Class M1C (1 Month US LIBOR + 2.00%), 04/25/29 (a),(c) |
|
$ |
954,791 |
|
|
$ |
950,539 |
|
|
7.97%, 2021-2A, Class M2 (30-Day SOFR + 2.90%),
06/25/31 (a),(c) |
|
|
2,353,000 |
|
|
|
2,319,426 |
|
|
7.90%, 2018-3A, Class M2 (1 Month US LIBOR
+ 2.75%), 10/25/28 (a),(c) |
|
|
3,540,123 |
|
|
|
3,518,609 |
|
|
8.22%, 2021-3A, Class M2 (30-Day SOFR + 3.15%),
09/25/31 (a),(b),(c) |
|
|
1,389,000 |
|
|
|
1,312,878 |
|
|
8.00%, 2019-4A, Class M2 (1 Month US LIBOR
+ 2.85%), 10/25/29 (a),(c) |
|
|
3,798,000 |
|
|
|
3,785,302 |
|
|
8.05%, 2018-1A, Class M2 (1 Month US LIBOR
+ 2.90%), 04/25/28 (a),(c) |
|
|
1,090,370 |
|
|
|
1,087,722 |
|
|
8.85%, 2020-3A, Class M1C (1 Month US LIBOR
+ 3.70%), 10/25/30 (a),(b),(c) |
|
|
1,292,704 |
|
|
|
1,296,333 |
|
|
9.05%, 2018-3A, Class B1 (1 Month US LIBOR
+ 3.90%), 10/25/28 (a),(c) |
|
|
2,553,000 |
|
|
|
2,533,991 |
|
|
BRAVO
Residential Funding Trust 5.50%, 2022-NQM3, Class A3, 07/25/62 (a) |
|
|
1,816,969 |
|
|
|
1,779,180 |
|
|
Chase
Mortgage Finance Trust 3.81%, 2005-A2, Class 3A2, 01/25/36 |
|
|
751,114 |
|
|
|
636,493 |
|
|
4.09%, 2007-A1, Class 11M1, 03/25/37 |
|
|
1,889,114 |
|
|
|
1,652,006 |
|
|
CHL
Mortgage Pass-Through Trust 5.50%, 2007-5, Class A29, 05/25/37 |
|
|
169,087 |
|
|
|
93,270 |
|
|
5.80%, 2006-20, Class 1A18 (1 Month US LIBOR
+ 0.65%), 02/25/37 (c) |
|
|
3,803,079 |
|
|
|
1,796,094 |
|
|
6.00%, 2004-21, Class A10, 11/25/34 |
|
|
38,001 |
|
|
|
36,285 |
|
|
6.00%, 2007-18, Class 1A1, 11/25/37 |
|
|
201,682 |
|
|
|
113,899 |
|
|
CHNGE
Mortgage Trust 3.99%, 2022-1, Class M1, 01/25/67 (a) |
|
|
2,700,000 |
|
|
|
2,099,590 |
|
|
4.53%, 2022-1, Class B1, 01/25/67 (a) |
|
|
2,500,000 |
|
|
|
1,773,981 |
|
|
4.63%, 2022-2, Class B1, 03/25/67 (a) |
|
|
3,000,000 |
|
|
|
2,053,648 |
|
|
8.30%, 2023-2, Class M1, 06/25/58 (a) |
|
|
3,500,000 |
|
|
|
3,410,895 |
|
|
Citicorp
Mortgage Securities Trust 6.05%, 2006-5, Class 1A11 (1 Month US LIBOR + 0.90%), 10/25/36 (c) |
|
|
316,863 |
|
|
|
256,725 |
|
|
Citigroup
Mortgage Loan Trust 4.13%, 2007-AR5, Class 1A2A, 04/25/37 |
|
|
396,786 |
|
|
|
361,751 |
|
|
6.10%, 2009-8, Class 2A2, 04/25/37 (a) |
|
|
4,416,331 |
|
|
|
2,204,590 |
|
|
CWABS
Asset-Backed Certificates 6.23%, 2006-13, Class 1AF4, 01/25/37 |
|
|
945,436 |
|
|
|
893,464 |
|
|
Deephaven
Residential Mortgage Trust 4.34%, 2022-2, Class B1, 03/25/67 (a) |
|
|
3,000,000 |
|
|
|
2,199,242 |
|
|
Eagle
RE Ltd. 6.85%, 2018-1, Class M1 (1 Month US LIBOR + 1.70%), 11/25/28 (a),(c) |
|
|
830,565 |
|
|
|
828,668 |
|
|
8.15%, 2018-1, Class M2 (1 Month US LIBOR +
3.00%), 11/25/28 (a),(b),(c) |
|
|
4,346,000 |
|
|
|
4,342,726 |
|
|
9.15%, 2018-1, Class B1 (1 Month US LIBOR +
4.00%), 11/25/28 (a),(b),(c) |
|
|
500,000 |
|
|
|
500,834 |
|
|
First
Horizon Alternative Mortgage Securities Trust 5.50%, 2005-FA8, Class 1A6 (1 Month US LIBOR + 0.65%), 11/25/35 (c) |
|
|
1,109,292 |
|
|
|
521,085 |
|
|
GCAT
Trust 5.74%, 2022-NQM4, Class M1, 08/25/67 (a) |
|
|
250,000 |
|
|
|
230,612 |
|
|
5.73%, 2022-NQM4, Class A3, 08/25/67 (a),(b),(i) |
|
|
1,402,418 |
|
|
|
1,374,414 |
|
|
GMACM
Home Equity Loan Trust 6.05%, 2007-HE2, Class A2, 12/25/37 |
|
|
298,554 |
|
|
|
285,059 |
|
|
6.19%, 2007-HE2, Class A3, 12/25/37 |
|
|
575,138 |
|
|
|
550,442 |
|
|
5.65%, 2005-HE3, Class A2 (1 Month US LIBOR
+ 0.50%), 02/25/36 (b),(c) |
|
|
1,083,584 |
|
|
|
1,012,320 |
|
|
GSAMP
Trust 5.15%, 2006-NC2, Class A2C (1 Month US LIBOR + 0.30%), 06/25/36 (c) |
|
|
464,426 |
|
|
|
242,530 |
|
|
GSR
Mortgage Loan Trust 3.94%, 2006-AR1, Class 2A4, 01/25/36 |
|
|
2,356,800 |
|
|
|
2,162,869 |
|
|
5.45%, 2007-1F, Class 4A1 (1 Month US LIBOR
+ 0.30%), 01/25/37 (c) |
|
|
5,933,835 |
|
|
|
1,701,537 |
|
|
See Notes to Financial Statements.
2023 Semi-Annual Report
9
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
SECURITIZED CREDIT (continued) |
|
Home
Equity Asset Trust 5.15%, 2006-7, Class 2A3 (1 Month US LIBOR + 0.30%), 01/25/37 (c) |
|
$ |
3,805,552 |
|
|
$ |
3,233,268 |
|
|
Home
RE Ltd. 6.67%, 2021-2, Class M1B (30-Day SOFR + 1.60%), 01/25/34 (a),(c) |
|
|
702,140 |
|
|
|
697,415 |
|
|
7.87%, 2021-2, Class M1C (30-Day SOFR + 2.80%),
01/25/34 (a),(c) |
|
|
4,472,000 |
|
|
|
4,421,327 |
|
|
8.32%, 2021-2, Class M2 (30-Day SOFR + 3.25%),
01/25/34 (a),(c) |
|
|
5,331,000 |
|
|
|
5,064,922 |
|
|
8.15%, 2018-1, Class M2 (1 Month US LIBOR +
3.00%), 10/25/28 (a),(c) |
|
|
1,590,283 |
|
|
|
1,585,246 |
|
|
8.40%, 2019-1, Class M2 (1 Month US LIBOR +
3.25%), 05/25/29 (a),(c) |
|
|
4,681,000 |
|
|
|
4,704,236 |
|
|
Imperial
Fund Mortgage Trust 5.39%, 2022-NQM5, Class A1, 08/25/67 (a),(i) |
|
|
696,680 |
|
|
|
681,624 |
|
|
6.12%, 2022-NQM5, Class A2, 08/25/67 (a),(i) |
|
|
464,453 |
|
|
|
459,334 |
|
|
6.25%, 2022-NQM5, Class M1, 08/25/67 (a),(i) |
|
|
1,026,000 |
|
|
|
950,333 |
|
|
Indymac
INDA Mortgage Loan Trust 3.55%, 2007-AR1, Class 1A1, 03/25/37 |
|
|
650,531 |
|
|
|
499,684 |
|
|
3.77%, 2007-AR3, Class 1A1, 07/25/37 |
|
|
1,676,782 |
|
|
|
1,426,548 |
|
|
Irwin
Home Equity Loan Trust 6.27%, 2006-1, Class 2A3, 09/25/35 (a),(i) |
|
|
311,771 |
|
|
|
309,634 |
|
|
JP
Morgan Mortgage Trust 3.04%, 2021-INV1, Class B6, 10/25/51 (a) |
|
|
573,000 |
|
|
|
146,780 |
|
|
3.04%, 2021-INV1, Class B5, 10/25/51 (a) |
|
|
254,000 |
|
|
|
79,294 |
|
|
3.69%, 2003-A1, Class B4, 10/25/33 (a) |
|
|
82,607 |
|
|
|
71,658 |
|
|
3.86%, 2007-A2, Class 3A2, 04/25/37 |
|
|
3,800,838 |
|
|
|
3,053,142 |
|
|
3.56%, 2003-A2, Class B4, 11/25/33 (a) |
|
|
73,205 |
|
|
|
1 |
|
|
JPMorgan
Chase Bank NA 6.37%, 2021-CL1, Class M1 (30-Day SOFR + 1.30%), 03/25/51 (a),(c) |
|
|
476,779 |
|
|
|
438,936 |
|
|
MASTR
Asset Backed Securities Trust 5.05%, 2006-NC3, Class A3 (1 Month US LIBOR + 0.20%), 10/25/36 (c) |
|
|
2,656,781 |
|
|
|
1,290,636 |
|
|
5.17%, 2006-NC3, Class A4 (1 Month US LIBOR
+ 0.32%), 10/25/36 (c) |
|
|
4,482,317 |
|
|
|
2,177,465 |
|
|
5.33%, 2006-NC2, Class A5 (1 Month US LIBOR
+ 0.48%), 08/25/36 (c) |
|
|
376,071 |
|
|
|
140,896 |
|
|
Mello
Mortgage Capital Acceptance 2.63%, 2021-INV1, Class B6, 06/25/51 (a) |
|
|
352,021 |
|
|
|
89,637 |
|
|
2.97%, 2021-INV1, Class B4, 06/25/51 (a),(b) |
|
|
616,865 |
|
|
|
346,392 |
|
|
MFA
Trust 3.29%, 2021-INV1, Class B1, 01/25/56 (a) |
|
|
700,000 |
|
|
|
570,297 |
|
|
New
Residential Mortgage Loan Trust 7.82%, 2022-RTL1, Class A1V (30-Day SOFR + 2.75%), 12/25/26 (a),(c) |
|
|
2,000,000 |
|
|
|
1,981,581 |
|
|
NewRez
Warehouse Securitization Trust 8.40%, 2021-1, Class E (1 Month US LIBOR + 3.25%), 05/25/55 (a),(c) |
|
|
866,667 |
|
|
|
845,010 |
|
|
Nomura
Resecuritization Trust 1.42%, 2014-1R, Class 2A11 (1 Month US LIBOR + 0.13%), 02/26/37 (a),(c) |
|
|
22,884,690 |
|
|
|
15,233,629 |
|
|
3.53%, 2015-1R, Class 3A7, 03/26/37 (a) |
|
|
4,197,487 |
|
|
|
2,669,586 |
|
|
3.26%, 2015-11R, Class 4A5, 06/26/37 (a) |
|
|
2,897,786 |
|
|
|
2,558,147 |
|
|
4.29%, 2015-1R, Class 4A7, 12/26/37 (a) |
|
|
1,254,004 |
|
|
|
1,130,250 |
|
|
NRZ
Excess Spread-Collateralized Notes 4.21%, 2020-FHT1, Class A, 11/25/25 (a) |
|
|
1,223,283 |
|
|
|
1,113,681 |
|
|
Oaktown
Re Ltd. 7.70%, 2019-1A, Class M2 (1 Month US LIBOR + 2.55%), 07/25/29 (a),(b),(c) |
|
|
2,084,000 |
|
|
|
2,074,733 |
|
|
8.00%, 2018-1A, Class M2 (1 Month US LIBOR
+ 2.85%), Perpetual (a),(b),(c) |
|
|
5,156,000 |
|
|
|
5,145,870 |
|
|
8.42%, 2021-2, Class M1C (30-Day SOFR + 3.35%),
04/25/34 (a),(c) |
|
|
3,769,000 |
|
|
|
3,649,569 |
|
|
Option
One Mortgage Loan Trust 5.66%, 2007-FXD1, Class 3A6, 01/25/37 (i) |
|
|
170,378 |
|
|
|
154,433 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
10
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
SECURITIZED CREDIT (continued) |
|
PRKCM
Trust 7.09%, 2023-AFC2, Class A3, 06/25/58 (a),(b) |
|
$ |
3,986,446 |
|
|
$ |
3,954,934 |
|
|
7.88%, 2023-AFC2, Class M1, 06/25/58 (a),(b) |
|
|
750,000 |
|
|
|
752,230 |
|
|
8.17%, 2023-AFC2, Class B1, 06/25/58 (a),(b) |
|
|
1,000,000 |
|
|
|
934,762 |
|
|
PRPM
LLC 1.79%, 2021-5, Class A1, 06/25/26 (a),(i) |
|
|
727,356 |
|
|
|
676,780 |
|
|
1.87%, 2021-3, Class A1, 04/25/26 (a),(i) |
|
|
399,110 |
|
|
|
374,913 |
|
|
1.87%, 2021-7, Class A1, 08/25/26 (a),(i) |
|
|
1,953,636 |
|
|
|
1,813,069 |
|
|
2.12%, 2021-1, Class A1, 01/25/26 (a) |
|
|
3,316,998 |
|
|
|
3,153,088 |
|
|
2.12%, 2021-2, Class A1, 03/25/26 (a) |
|
|
2,820,927 |
|
|
|
2,676,916 |
|
|
2.36%, 2020-6, Class A1, 11/25/25 (a),(i) |
|
|
549,967 |
|
|
|
519,632 |
|
|
2.49%, 2021-10, Class A1, 10/25/26 (a),(i) |
|
|
1,224,183 |
|
|
|
1,151,424 |
|
|
3.72%, 2021-1, Class A2, 01/25/26 (a) |
|
|
2,000,000 |
|
|
|
1,727,424 |
|
|
3.72%, 2022-1, Class A1, 02/25/27 (a),(i) |
|
|
1,227,984 |
|
|
|
1,165,227 |
|
|
3.72%, 2021-5, Class A2, 06/25/26 (a),(i) |
|
|
2,500,000 |
|
|
|
2,206,885 |
|
|
3.77%, 2021-2, Class A2, 03/25/26 (a) |
|
|
1,935,000 |
|
|
|
1,656,397 |
|
|
4.70%, 2020-6, Class A2, 11/25/25 (a),(i) |
|
|
1,350,000 |
|
|
|
1,176,308 |
|
|
4.83%, 2021-10, Class A2, 10/25/26 (a),(i) |
|
|
3,000,000 |
|
|
|
2,589,195 |
|
|
5.00%, 2022-2, Class A1, 03/25/27 (a),(i) |
|
|
2,527,164 |
|
|
|
2,429,816 |
|
|
6.29%, 2022-1, Class A2, 02/25/27 (a),(i) |
|
|
500,000 |
|
|
|
473,009 |
|
|
Radnor
RE Ltd. 6.77%, 2021-1, Class M1B (30-Day SOFR + 1.70%), 12/27/33 (a),(c) |
|
|
665,963 |
|
|
|
662,011 |
|
|
8.22%, 2021-1, Class M2 (30-Day SOFR + 3.15%),
12/27/33 (a),(c) |
|
|
1,443,000 |
|
|
|
1,382,241 |
|
|
RALI
Trust 3.99%, 2006-QO7, Class 2A1 (12 Month US Treasury Average + 0.85%), 09/25/46 (c) |
|
|
5,332,127 |
|
|
|
4,270,870 |
|
|
5.17%, 2007-QO3, Class A1 (1 Month US LIBOR
+ 0.32%), 03/25/47 (c) |
|
|
1,120,599 |
|
|
|
1,030,382 |
|
|
6.00%, 2006-QS3, Class 1A10, 03/25/36 |
|
|
1,601,370 |
|
|
|
1,354,819 |
|
|
18.26%, 2006-QS14, Class A30 (1 Month US LIBOR
+ 81.25%), 11/25/36 (c),(h) |
|
|
49,313 |
|
|
|
71,638 |
|
|
RFMSI
Trust 5.50%, 2007-S3, Class 1A5, 03/25/37 |
|
|
1,236,897 |
|
|
|
925,020 |
|
|
Rithm
Capital Corp. 5.44%, 2020-FNT1, Class A, 06/25/25 (a) |
|
|
1,211,134 |
|
|
|
1,154,644 |
|
|
Santander
Holdings USA, Inc. 9.12%, 2023-MTG1, Class M1 (30-Day SOFR + 4.15%), 02/26/52 (a),(c) |
|
|
5,792,978 |
|
|
|
5,820,888 |
|
|
Seasoned
Credit Risk Transfer Trust 4.25%, 2021-1, Class M, 09/25/60 (a) |
|
|
2,000,000 |
|
|
|
1,716,234 |
|
|
4.50%, 2019-4, Class M, 02/25/59 (a) |
|
|
1,617,000 |
|
|
|
1,374,829 |
|
|
4.50%, 2022-1, Class M, 11/25/61 (a) |
|
|
3,000,000 |
|
|
|
2,389,045 |
|
|
Securitized
Asset Backed Receivables LLC Trust 5.15%, 2006-NC3, Class A2B (1 Month US LIBOR + 0.30%), 09/25/36 (c) |
|
|
5,371,408 |
|
|
|
1,789,380 |
|
|
5.15%, 2007-NC1, Class A2B (1 Month US LIBOR
+ 0.30%), 12/25/36 (c) |
|
|
3,340,158 |
|
|
|
1,573,221 |
|
|
STAR
Trust 8.00%, 2021-SFR2, Class F (1 Month US LIBOR + 2.85%), 01/17/24 (a),(c) |
|
|
3,000,000 |
|
|
|
2,785,318 |
|
|
8.78%, 2022-SFR3, Class E2 (1 Month SOFR +
3.70%), 05/17/24 (a),(c) |
|
|
3,750,000 |
|
|
|
3,706,692 |
|
|
Tricon
American Homes 4.88%, 2020-SFR1, Class F, 07/17/38 (a) |
|
|
1,808,000 |
|
|
|
1,682,318 |
|
|
Verus
Securitization Trust 5.83%, 2022-INV1, Class A3, 08/25/67 (a),(i) |
|
|
456,081 |
|
|
|
442,041 |
|
|
5.86%, 2022-INV1, Class M1, 08/25/67 (a) |
|
|
500,000 |
|
|
|
472,556 |
|
|
7.40%, 2023-4, Class M1, 05/25/68 (a) |
|
|
1,500,000 |
|
|
|
1,480,737 |
|
|
8.23%, 2023-4, Class B1, 05/25/68 (a) |
|
|
2,000,000 |
|
|
|
1,865,905 |
|
|
See Notes to Financial Statements.
2023 Semi-Annual Report
11
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
SECURITIZED CREDIT (continued) |
|
Washington
Mutual Mortgage Pass-Through Certificates Trust 3.00%, 2007-HY5, Class 1A1, 05/25/37 |
|
$ |
1,763,430 |
|
|
$ |
1,531,215 |
|
|
3.77%, 2007-HY1, Class 4A1, 02/25/37 |
|
|
5,119,195 |
|
|
|
4,466,186 |
|
|
3.36%, 2007-HY5, Class 3A1, 05/25/37 |
|
|
715,364 |
|
|
|
625,528 |
|
|
4.16%, 2007-HY3, Class 4A1, 03/25/37 |
|
|
5,193,217 |
|
|
|
4,568,627 |
|
|
Wells
Fargo Mortgage Backed Securities Trust 4.56%, 2006-AR1, Class 2A5, 03/25/36 |
|
|
1,025,931 |
|
|
|
956,902 |
|
|
4.72%, 2006-AR12, Class 2A1, 09/25/36 |
|
|
705,795 |
|
|
|
661,794 |
|
|
Western
Alliance Bank 9.17%, 2021-CL2, Class M3 (30-Day SOFR), 07/25/59 (a),(b),(c) |
|
|
995,150 |
|
|
|
972,759 |
|
|
10.42%, 2021-CL2, Class M4 (1 Month SOFR +
5.35%), 07/25/59 (a),(c) |
|
|
1,711,332 |
|
|
|
1,672,974 |
|
|
Woodward
Capital Management 7.98%, 2023-CES1, Class M2, 06/25/43 (a),(b) |
|
|
965,000 |
|
|
|
964,973 |
|
|
Total Residential Mortgage-Backed Securities |
|
|
239,930,841 |
|
|
Total SECURITIZED CREDIT
(Cost $419,049,375) |
|
|
|
|
359,903,837 |
|
|
CORPORATE CREDIT – 62.4% |
|
Basic Industrial – 2.3% |
|
Albemarle
Corp. 4.65%, 06/01/27 (d) |
|
|
5,255,000 |
|
|
|
5,114,059 |
|
|
Cascades,
Inc. 5.38%, 01/15/28 (a),(b),(d) |
|
|
5,915,000 |
|
|
|
5,528,304 |
|
|
Clearwater
Paper Corp. 4.75%, 08/15/28 (a) |
|
|
3,000,000 |
|
|
|
2,640,635 |
|
|
Methanex
Corp. 5.25%, 12/15/29 (b),(d) |
|
|
1,490,000 |
|
|
|
1,360,346 |
|
|
NOVA
Chemicals Corp. 4.25%, 05/15/29 (a),(b),(d) |
|
|
1,681,000 |
|
|
|
1,371,767 |
|
|
Tronox,
Inc. 4.63%, 03/15/29 (a),(d) |
|
|
4,245,000 |
|
|
|
3,527,797 |
|
|
Total Basic Industrial |
|
|
19,542,908 |
|
|
Construction & Building Materials
– 3.6% |
|
Ashton
Woods USA LLC 6.63%, 01/15/28 (a),(d) |
|
|
2,970,000 |
|
|
|
2,838,785 |
|
|
Beazer
Homes USA, Inc. 5.88%, 10/15/27 (d) |
|
|
3,330,000 |
|
|
|
3,105,225 |
|
|
Builders
FirstSource, Inc. 5.00%, 03/01/30 (a) |
|
|
1,600,000 |
|
|
|
1,495,833 |
|
|
DR
Horton, Inc. 1.40%, 10/15/27 (d) |
|
|
3,025,000 |
|
|
|
2,593,580 |
|
|
KB
Home 7.25%, 07/15/30 (d) |
|
|
4,000,000 |
|
|
|
4,050,495 |
|
|
M/I
Homes, Inc. 4.95%, 02/01/28 (d) |
|
|
5,992,000 |
|
|
|
5,585,742 |
|
|
MDC
Holdings, Inc. 6.00%, 01/15/43 |
|
|
2,928,000 |
|
|
|
2,637,161 |
|
|
Shea
Homes LP 4.75%, 04/01/29 (d) |
|
|
3,560,000 |
|
|
|
3,086,398 |
|
|
Taylor
Morrison Communities, Inc. 5.88%, 06/15/27 (a),(d) |
|
|
4,625,000 |
|
|
|
4,542,629 |
|
|
Total Construction & Building Materials |
|
|
29,935,848 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
12
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
CORPORATE CREDIT (continued) |
|
Diversified Real Estate – 2.1% |
|
Forestar
Group, Inc. 5.00%, 03/01/28 (a),(d) |
|
$ |
5,365,000 |
|
|
$ |
4,918,342 |
|
|
Greystar
Real Estate Partners LLC 5.75%, 12/01/25 (a),(d) |
|
|
2,500,000 |
|
|
|
2,441,290 |
|
|
The
Howard Hughes Corp. 4.38%, 02/01/31 (a),(d) |
|
|
3,600,000 |
|
|
|
2,872,944 |
|
|
5.38%, 08/01/28 (a),(d) |
|
|
8,025,000 |
|
|
|
7,142,265 |
|
|
Total Diversified Real Estate |
|
|
17,374,841 |
|
|
Energy – 8.3% |
|
Antero
Resources Corp. 5.38%, 03/01/30 (a),(d) |
|
|
4,200,000 |
|
|
|
3,847,357 |
|
|
Baytex
Energy Corp. 8.50%, 04/30/30 (a),(b) |
|
|
2,617,000 |
|
|
|
2,555,633 |
|
|
8.75%, 04/01/27 (a),(b) |
|
|
825,000 |
|
|
|
835,596 |
|
|
BP
Capital Markets PLC 4.88% (5 Year CMT Rate + 4.40%), Perpetual (b),(c) |
|
|
1,075,000 |
|
|
|
977,175 |
|
|
California
Resources Corp. 7.13%, 02/01/26 (a),(d) |
|
|
3,447,000 |
|
|
|
3,464,235 |
|
|
Callon
Petroleum Co. 6.38%, 07/01/26 |
|
|
1,191,000 |
|
|
|
1,159,317 |
|
|
8.25%, 07/15/25 (d) |
|
|
1,310,000 |
|
|
|
1,300,175 |
|
|
Civitas
Resources, Inc. 8.38%, 07/01/28 (a) |
|
|
6,295,000 |
|
|
|
6,359,713 |
|
|
CNX
Resources Corp. 7.38%, 01/15/31 (a),(d) |
|
|
2,533,000 |
|
|
|
2,464,376 |
|
|
Comstock
Resources, Inc. 6.75%, 03/01/29 (a),(d) |
|
|
5,913,000 |
|
|
|
5,411,243 |
|
|
Continental
Resources, Inc. 5.75%, 01/15/31 (a),(d) |
|
|
8,009,000 |
|
|
|
7,612,044 |
|
|
Crescent
Energy Finance LLC 7.25%, 05/01/26 (a),(d) |
|
|
3,135,000 |
|
|
|
2,942,229 |
|
|
Diamondback
Energy, Inc. 6.25%, 03/15/33 |
|
|
2,600,000 |
|
|
|
2,688,639 |
|
|
EQT
Corp. 7.00%, 02/01/30 (d) |
|
|
2,331,000 |
|
|
|
2,440,627 |
|
|
MEG
Energy Corp. 5.88%, 02/01/29 (a),(d) |
|
|
2,000,000 |
|
|
|
1,880,080 |
|
|
7.13%, 02/01/27 (a),(b),(d) |
|
|
3,275,000 |
|
|
|
3,327,796 |
|
|
Moss
Creek Resources Holdings, Inc. 10.50%, 05/15/27 (a) |
|
|
1,640,000 |
|
|
|
1,567,407 |
|
|
Occidental
Petroleum Corp. 8.88%, 07/15/30 (d) |
|
|
5,600,000 |
|
|
|
6,436,528 |
|
|
Ovintiv,
Inc. 6.25%, 07/15/33 |
|
|
2,150,000 |
|
|
|
2,119,971 |
|
|
Range
Resources Corp. 8.25%, 01/15/29 (j) |
|
|
1,750,000 |
|
|
|
1,815,430 |
|
|
Southwestern
Energy Co. 5.38%, 02/01/29 (d) |
|
|
5,565,000 |
|
|
|
5,240,258 |
|
|
Transocean
Titan Financing Ltd. 8.38%, 02/01/28 (a),(d) |
|
|
2,580,000 |
|
|
|
2,634,825 |
|
|
Total Energy |
|
|
69,080,654 |
|
|
See Notes to Financial Statements.
2023 Semi-Annual Report
13
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
CORPORATE CREDIT (continued) |
|
Health Facilities – 2.1% |
|
CHS/Community
Health Systems, Inc. 4.75%, 02/15/31 (a),(d) |
|
$ |
2,844,000 |
|
|
$ |
2,149,248 |
|
|
8.00%, 03/15/26 (a),(d) |
|
|
4,252,000 |
|
|
|
4,134,795 |
|
|
Tenet
Healthcare Corp. 6.13%, 10/01/28 (d) |
|
|
11,800,000 |
|
|
|
11,359,860 |
|
|
Total Health Facilities |
|
|
17,643,903 |
|
|
Hotel – 0.4% |
|
Hilton
Domestic Operating Company, Inc. 3.75%, 05/01/29 (a),(d) |
|
|
3,700,000 |
|
|
|
3,284,193 |
|
|
Infrastructure Services – 0.5% |
|
GFL
Environmental, Inc. 3.50%, 09/01/28 (a),(b),(d) |
|
|
2,910,000 |
|
|
|
2,589,733 |
|
|
Terex
Corp. 5.00%, 05/15/29 (a),(d) |
|
|
1,430,000 |
|
|
|
1,329,469 |
|
|
Total Infrastructure Services |
|
|
3,919,202 |
|
|
Leisure – 5.3% |
|
Boyd
Gaming Corp. 4.75%, 12/01/27 (d) |
|
|
3,162,000 |
|
|
|
2,996,065 |
|
|
4.75%, 06/15/31 (a),(d) |
|
|
1,250,000 |
|
|
|
1,116,722 |
|
|
Caesars
Resort Collection LLC 5.75%, 07/01/25 (a),(d) |
|
|
3,137,000 |
|
|
|
3,174,023 |
|
|
Cedar
Fair LP 6.50%, 10/01/28 (d) |
|
|
5,060,000 |
|
|
|
4,934,447 |
|
|
International
Game Technology PLC 5.25%, 01/15/29 (a) |
|
|
2,734,000 |
|
|
|
2,589,781 |
|
|
Park
Intermediate Holdings LLC 5.88%, 10/01/28 (a),(d) |
|
|
5,885,000 |
|
|
|
5,399,488 |
|
|
RHP
Hotel Properties LP 4.50%, 02/15/29 (a),(d) |
|
|
5,610,000 |
|
|
|
4,964,850 |
|
|
Six
Flags Entertainment Corp. 5.50%, 04/15/27 (a),(d) |
|
|
2,845,000 |
|
|
|
2,678,432 |
|
|
Station
Casinos LLC 4.50%, 02/15/28 (a),(d) |
|
|
6,190,000 |
|
|
|
5,555,958 |
|
|
4.63%, 12/01/31 (a) |
|
|
654,000 |
|
|
|
550,995 |
|
|
VICI
Properties LP 4.50%, 01/15/28 (a),(d) |
|
|
8,150,000 |
|
|
|
7,488,177 |
|
|
Wynn
Las Vegas LLC 5.50%, 03/01/25 (a),(d) |
|
|
2,450,000 |
|
|
|
2,410,479 |
|
|
Total Leisure |
|
|
43,859,417 |
|
|
Media – 7.1% |
|
Cable
One, Inc. 4.00%, 11/15/30 (a),(d) |
|
|
4,650,000 |
|
|
|
3,632,812 |
|
|
CCO
Holdings LLC 4.75%, 03/01/30 (a),(d) |
|
|
23,025,000 |
|
|
|
19,692,158 |
|
|
6.38%, 09/01/29 (a),(d) |
|
|
3,360,000 |
|
|
|
3,165,523 |
|
|
CSC
Holdings LLC 4.50%, 11/15/31 (a),(d),(j) |
|
|
9,842,000 |
|
|
|
6,860,362 |
|
|
4.63%, 12/01/30 (a),(d) |
|
|
6,245,000 |
|
|
|
2,778,845 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
14
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
CORPORATE CREDIT (continued) |
|
Directv
Financing LLC 5.88%, 08/15/27 (a),(d) |
|
$ |
5,600,000 |
|
|
$ |
5,070,575 |
|
|
DISH
DBS Corp. 5.13%, 06/01/29 (d) |
|
|
4,960,000 |
|
|
|
2,302,859 |
|
|
5.25%, 12/01/26 (a) |
|
|
1,172,000 |
|
|
|
940,198 |
|
|
Telenet
Finance Luxembourg Notes Sarl 5.50%, 03/01/28 (a),(b) |
|
|
2,800,000 |
|
|
|
2,567,600 |
|
|
UPC
Broadband Finco BV 4.88%, 07/15/31 (a),(b),(d) |
|
|
1,698,000 |
|
|
|
1,397,607 |
|
|
Videotron
Ltd. 3.63%, 06/15/29 (a),(b),(d) |
|
|
1,465,000 |
|
|
|
1,262,062 |
|
|
Virgin
Media Secured Finance PLC 4.50%, 08/15/30 (a),(b),(d) |
|
|
4,675,000 |
|
|
|
3,919,148 |
|
|
VZ
Secured Financing BV 5.00%, 01/15/32 (a) |
|
|
2,010,000 |
|
|
|
1,618,787 |
|
|
Warnermedia
Holdings, Inc. 4.28%, 03/15/32 (d) |
|
|
3,115,000 |
|
|
|
2,763,066 |
|
|
Ziggo
Bond Company BV 5.13%, 02/28/30 (a),(b) |
|
|
1,790,000 |
|
|
|
1,355,575 |
|
|
Total Media |
|
|
59,327,177 |
|
|
Metals & Mining – 0.3% |
|
Cleveland-Cliffs,
Inc. 6.75%, 03/15/26 (a),(d) |
|
|
2,000,000 |
|
|
|
2,020,591 |
|
|
First
Quantum Minerals Ltd. 7.50%, 04/01/25 (a) |
|
|
1,000,000 |
|
|
|
998,755 |
|
|
Total Metals & Mining |
|
|
3,019,346 |
|
|
Oil Gas Transportation & Distribution
– 13.7% |
|
Antero
Midstream Partners LP 5.38%, 06/15/29 (a),(d) |
|
|
5,400,000 |
|
|
|
5,017,787 |
|
|
Buckeye
Partners LP 3.95%, 12/01/26 (d) |
|
|
2,500,000 |
|
|
|
2,256,900 |
|
|
4.13%, 12/01/27 (d) |
|
|
3,655,000 |
|
|
|
3,332,391 |
|
|
9.29% (3 Month US LIBOR + 4.02%), 01/22/78
(c),(d) |
|
|
3,435,000 |
|
|
|
2,885,400 |
|
|
Cheniere
Corpus Christi Holdings LLC 2.74%, 12/31/39 (d) |
|
|
4,730,000 |
|
|
|
3,723,903 |
|
|
Crestwood
Midstream Partners LP 5.63%, 05/01/27 (a) |
|
|
350,000 |
|
|
|
331,800 |
|
|
6.00%, 02/01/29 (a),(d) |
|
|
6,250,000 |
|
|
|
5,835,937 |
|
|
DT
Midstream, Inc. 4.13%, 06/15/29 (a),(d) |
|
|
4,420,000 |
|
|
|
3,878,873 |
|
|
Enbridge,
Inc. 7.38% (5 Year CMT Rate + 3.71%), 01/15/83 (c) |
|
|
825,000 |
|
|
|
808,920 |
|
|
Energy
Transfer LP 6.75% (5 Year CMT Rate + 5.13%), Perpetual (c),(d) |
|
|
5,869,000 |
|
|
|
5,223,503 |
|
|
7.13% (5 Year CMT Rate + 5.31%), Perpetual
(c),(d) |
|
|
2,297,000 |
|
|
|
1,947,676 |
|
|
8.32% (3 Month US LIBOR + 3.02%), 11/01/66
(c),(d) |
|
|
4,770,000 |
|
|
|
3,660,989 |
|
|
EnLink
Midstream LLC 5.38%, 06/01/29 (d) |
|
|
4,975,000 |
|
|
|
4,738,715 |
|
|
EnLink
Midstream Partners LP 9.62% (3 Month US LIBOR + 4.11%), Perpetual (c),(d) |
|
|
4,755,000 |
|
|
|
3,912,195 |
|
|
See Notes to Financial Statements.
2023 Semi-Annual Report
15
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
CORPORATE CREDIT (continued) |
|
Enterprise
Products Operating LLC 5.25% (3 Month CME Term SOFR + 3.29%), 08/16/77 (c) |
|
$ |
1,460,000 |
|
|
$ |
1,276,645 |
|
|
EQM
Midstream Partners LP 4.50%, 01/15/29 (a),(d) |
|
|
8,660,000 |
|
|
|
7,722,932 |
|
|
7.50%, 06/01/27 (a) |
|
|
500,000 |
|
|
|
504,816 |
|
|
Ferrellgas
LP 5.38%, 04/01/26 (a) |
|
|
1,875,000 |
|
|
|
1,743,962 |
|
|
Global
Partners LP 7.00%, 08/01/27 (d) |
|
|
2,750,000 |
|
|
|
2,668,410 |
|
|
Holly
Energy Partners LP 5.00%, 02/01/28 (a),(d) |
|
|
9,257,000 |
|
|
|
8,539,304 |
|
|
Kinetik
Holdings LP 5.88%, 06/15/30 (a),(d) |
|
|
4,440,000 |
|
|
|
4,223,550 |
|
|
NuStar
Logistics LP 5.63%, 04/28/27 (d) |
|
|
3,255,000 |
|
|
|
3,122,521 |
|
|
5.75%, 10/01/25 (d) |
|
|
2,052,000 |
|
|
|
2,000,602 |
|
|
Parkland
Corp. 4.50%, 10/01/29 (a),(b),(d) |
|
|
3,247,000 |
|
|
|
2,812,231 |
|
|
Plains
All American Pipeline LP 9.43% (3 Month US LIBOR + 4.11%), Perpetual (c),(d) |
|
|
7,920,000 |
|
|
|
7,049,818 |
|
|
Suburban
Propane Partners LP 5.00%, 06/01/31 (a),(d) |
|
|
4,389,000 |
|
|
|
3,674,249 |
|
|
Sunoco
LP 4.50%, 05/15/29 |
|
|
1,981,000 |
|
|
|
1,756,540 |
|
|
Tallgrass
Energy Partners LP 6.00%, 12/31/30 (a),(d) |
|
|
6,169,000 |
|
|
|
5,434,889 |
|
|
Targa
Resources Partners LP 4.88%, 02/01/31 (d) |
|
|
7,000,000 |
|
|
|
6,468,980 |
|
|
TransCanada
PipeLines Ltd. 7.53% (3 Month US LIBOR + 2.21%), 05/15/67 (b),(c),(d) |
|
|
6,663,000 |
|
|
|
5,163,286 |
|
|
Western
Midstream Operating LP 4.75%, 08/15/28 (j) |
|
|
2,045,000 |
|
|
|
1,941,078 |
|
|
Total Oil Gas Transportation &
Distribution |
|
|
113,658,802 |
|
|
Real Estate – 4.4% |
|
Boston
Properties LP 6.50%, 01/15/34 |
|
|
1,165,000 |
|
|
|
1,171,808 |
|
|
EPR
Properties 3.75%, 08/15/29 (d) |
|
|
4,990,000 |
|
|
|
4,044,611 |
|
|
Global
Net Lease, Inc. 3.75%, 12/15/27 (a),(d) |
|
|
5,260,000 |
|
|
|
3,859,056 |
|
|
Highwoods
Realty LP 4.20%, 04/15/29 |
|
|
3,315,000 |
|
|
|
2,789,935 |
|
|
Iron
Mountain, Inc. 4.88%, 09/15/29 (a),(d) |
|
|
4,750,000 |
|
|
|
4,251,679 |
|
|
Kilroy
Realty LP 4.75%, 12/15/28 |
|
|
2,920,000 |
|
|
|
2,569,044 |
|
|
Lennar
Corp. 5.00%, 06/15/27 (d) |
|
|
2,719,000 |
|
|
|
2,662,523 |
|
|
PulteGroup,
Inc. 7.88%, 06/15/32 |
|
|
1,454,000 |
|
|
|
1,646,707 |
|
|
RLJ
Lodging Trust LP 3.75%, 07/01/26 (a),(d) |
|
|
5,045,000 |
|
|
|
4,628,788 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
16
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
CORPORATE CREDIT (continued) |
|
Service
Properties Trust 4.35%, 10/01/24 (d) |
|
$ |
2,750,000 |
|
|
$ |
2,643,300 |
|
|
Starwood
Property Trust, Inc. 3.63%, 07/15/26 (a),(d) |
|
|
7,272,000 |
|
|
|
6,255,989 |
|
|
Total Real Estate |
|
|
36,523,440 |
|
|
Telecommunication Services –
4.2% |
|
Altice
France SA 5.50%, 01/15/28 (a),(b),(d),(j) |
|
|
10,910,000 |
|
|
|
8,240,087 |
|
|
Cablevision
Lightpath LLC 5.63%, 09/15/28 (a),(d) |
|
|
5,025,000 |
|
|
|
3,722,533 |
|
|
Cogent
Communications Group, Inc. 3.50%, 05/01/26 (a),(d) |
|
|
3,390,000 |
|
|
|
3,144,225 |
|
|
Consolidated
Communications, Inc. 6.50%, 10/01/28 (a),(d) |
|
|
3,410,000 |
|
|
|
2,685,375 |
|
|
Level
3 Financing, Inc. 4.63%, 09/15/27 (a),(d) |
|
|
7,075,000 |
|
|
|
4,922,450 |
|
|
10.50%, 05/15/30 (a) |
|
|
2,000,000 |
|
|
|
2,029,397 |
|
|
Rogers
Communications, Inc. 5.25% (5 Year CMT Rate + 3.59%), 03/15/82 (a),(b),(c) |
|
|
1,450,000 |
|
|
|
1,342,236 |
|
|
T-Mobile
USA, Inc. 3.50%, 04/15/31 (d),(j) |
|
|
6,537,000 |
|
|
|
5,766,816 |
|
|
Vodafone
Group PLC 7.00% (5 Year Swap Rate USD + 4.87%), 04/04/79 (c) |
|
|
1,650,000 |
|
|
|
1,691,827 |
|
|
Zayo
Group Holdings, Inc. 4.00%, 03/01/27 (a),(d) |
|
|
2,145,000 |
|
|
|
1,514,807 |
|
|
Total Telecommunication Services |
|
|
35,059,753 |
|
|
Toll Roads – 0.2% |
|
Ferrovial
Netherlands BV 5.11% (5 Year Swap Rate EUR + 2.13%), Perpetual (b),(c) |
|
€ |
1,300,000 |
|
|
|
1,404,225 |
|
|
Transportation – 0.1% |
|
BNSF
Funding Trust I 6.61% (3 Month US LIBOR + 2.35%), 12/15/55 (c),(d) |
|
|
675,000 |
|
|
|
651,300 |
|
|
Utility – 7.8% |
|
Algonquin
Power & Utilities Corp. 4.75% (5 Year CMT Rate + 3.25%), 01/18/82 (c),(d) |
|
|
6,050,000 |
|
|
|
4,826,508 |
|
|
Atlantica
Sustainable Infrastructure PLC 4.13%, 06/15/28 (a),(b),(d) |
|
|
4,845,000 |
|
|
|
4,315,054 |
|
|
Calpine
Corp. 5.13%, 03/15/28 (a),(d) |
|
|
7,405,000 |
|
|
|
6,607,909 |
|
|
CenterPoint
Energy, Inc. 6.13% (3 Month US LIBOR + 3.27%), Perpetual (c) |
|
|
1,305,000 |
|
|
|
1,259,406 |
|
|
Clearway
Energy Operating LLC 3.75%, 02/15/31 (a),(d) |
|
|
5,297,000 |
|
|
|
4,396,128 |
|
|
CMS
Energy Corp. 4.75% (5 Year CMT Rate + 4.12%), 06/01/50 (c) |
|
|
1,765,000 |
|
|
|
1,521,783 |
|
|
Dominion
Energy, Inc. 4.65% (5 Year CMT Rate + 2.99%), Perpetual (c) |
|
|
2,000,000 |
|
|
|
1,798,200 |
|
|
Duke
Energy Corp. 4.88% (5 Year CMT Rate + 3.39%), Perpetual (c) |
|
|
1,285,000 |
|
|
|
1,234,114 |
|
|
Emera,
Inc. 6.75% (3 Month US LIBOR + 5.44%), 06/15/76 (b),(c),(d) |
|
|
7,600,000 |
|
|
|
7,349,048 |
|
|
See Notes to Financial Statements.
2023 Semi-Annual Report
17
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
CORPORATE CREDIT (continued) |
|
Fortis,
Inc. 3.06%, 10/04/26 (b),(d) |
|
$ |
5,050,000 |
|
|
$ |
4,650,760 |
|
|
NRG
Energy, Inc. 4.45%, 06/15/29 (a),(d) |
|
|
2,405,000 |
|
|
|
2,126,509 |
|
|
6.63%, 01/15/27 |
|
|
2,159,000 |
|
|
|
2,142,116 |
|
|
10.25% (5 Year CMT Rate + 5.92%), Perpetual
(a),(c) |
|
|
1,250,000 |
|
|
|
1,175,600 |
|
|
Pacific
Gas and Electric Co. 6.40%, 06/15/33 |
|
|
1,595,000 |
|
|
|
1,584,913 |
|
|
PPL
Capital Funding, Inc. 8.20% (3 Month US LIBOR + 2.67%), 03/30/67 (c),(d) |
|
|
7,618,000 |
|
|
|
6,722,891 |
|
|
Sempra
Energy 4.88% (5 Year CMT Rate + 4.55%), Perpetual (c),(d) |
|
|
8,039,000 |
|
|
|
7,476,819 |
|
|
WEC
Energy Group, Inc. 7.43% (3 Month US LIBOR + 2.11%), 05/15/67 (c),(d) |
|
|
6,663,000 |
|
|
|
5,607,045 |
|
|
Total Utility |
|
|
64,794,803 |
|
|
Total
CORPORATE CREDIT (Cost $561,382,482) |
|
|
|
|
519,079,812 |
|
|
TERM LOANS – 3.6% |
|
Caesars
Entertainment, Inc. 8.45% (1 Month SOFR + 3.25%), 02/06/30 (c) |
|
|
7,300,000 |
|
|
|
7,293,357 |
|
|
Carnival
Corp. 8.02% (6 Month US LIBOR + 3.00%), 06/30/25 (c) |
|
|
2,992,308 |
|
|
|
2,985,755 |
|
|
Frontier
Communications Holdings LLC 8.50% (3 Month US LIBOR + 3.75%), 10/08/27 (c) |
|
|
7,250,000 |
|
|
|
7,004,297 |
|
|
GIP
II Blue Holding LP, 5.50%, 09/29/28 9.23% (3 Month US LIBOR + 4.50%), 09/29/28 (c) |
|
|
5,080,355 |
|
|
|
5,087,620 |
|
|
Vistra
Energy Corp. 0.00%, 10/31/25 |
|
|
25,848 |
|
|
|
267 |
|
|
Whitewater
Whistler Holdings LLC 8.15% (1 Month SOFR + 3.25%), 02/15/30 (c) |
|
|
8,000,000 |
|
|
|
7,988,000 |
|
|
Total
TERM LOANS (Cost $30,445,437) |
|
|
|
|
30,359,296 |
|
|
|
|
Shares |
|
Value |
|
PREFERRED STOCKS – 1.0% |
|
Oil Gas Transportation & Distribution
– 0.5% |
|
NuStar Energy LP, Series B, 11.18% (d) |
|
|
71,701 |
|
|
|
1,749,505 |
|
|
Global Partners LP, Series B, 9.50% (d) |
|
|
32,100 |
|
|
|
825,612 |
|
|
Crestwood Equity Partners LP, 9.25% (d) |
|
|
204,986 |
|
|
|
1,885,871 |
|
|
Total Oil Gas Transportation &
Distribution |
|
|
4,460,988 |
|
|
Telecommunication Services –
0.2% |
|
Liberty Broadband Corp., 5.00% (d) |
|
|
73,185 |
|
|
|
1,686,914 |
|
|
Utility – 0.3% |
|
SCE Trust V, Series K, 5.45% (d) |
|
|
92,789 |
|
|
|
2,067,339 |
|
|
Total
PREFERRED STOCKS (Cost $7,765,202) |
|
|
|
|
8,215,241 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
18
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Shares |
|
Value |
|
COMMON STOCKS – 2.5% |
|
Airports – 0.0% |
|
Aena SME SA (a),(b) |
|
|
410 |
|
|
$ |
66,357 |
|
|
Auckland International Airport Ltd. (b),(k) |
|
|
10,500 |
|
|
|
55,183 |
|
|
Total Airports |
|
|
121,540 |
|
|
Clean Technology – 0.0% |
|
Bloom Energy Corp. (k) |
|
|
1,484 |
|
|
|
24,263 |
|
|
Nexans SA (b) |
|
|
800 |
|
|
|
69,377 |
|
|
Total Clean Technology |
|
|
93,640 |
|
|
Communications – 0.1% |
|
American Tower Corp. |
|
|
65 |
|
|
|
12,606 |
|
|
Cellnex Telecom SA (a),(b) |
|
|
1,510 |
|
|
|
61,010 |
|
|
China Tower Corporation Ltd. (a),(b) |
|
|
266,809 |
|
|
|
29,714 |
|
|
Crown Castle, Inc. (d) |
|
|
1,015 |
|
|
|
115,649 |
|
|
SBA Communications Corp. (d) |
|
|
175 |
|
|
|
40,558 |
|
|
Total Communications |
|
|
259,537 |
|
|
Construction Materials – 0.0% |
|
Ferrovial SE (b),(d) |
|
|
2,323 |
|
|
|
73,435 |
|
|
Datacenters – 0.0% |
|
Digital Realty Trust, Inc. |
|
|
272 |
|
|
|
30,973 |
|
|
Equinix, Inc. (d) |
|
|
57 |
|
|
|
44,684 |
|
|
Total Datacenters |
|
|
75,657 |
|
|
Diversified – 0.0% |
|
Kerry Properties Ltd. (b) |
|
|
2,932 |
|
|
|
6,100 |
|
|
Mapletree Pan Asia Commercial Trust (b) |
|
|
12,589 |
|
|
|
15,145 |
|
|
Mirvac Group (b) |
|
|
8,893 |
|
|
|
13,429 |
|
|
Sun Hung Kai Properties Ltd. (b) |
|
|
1,700 |
|
|
|
21,479 |
|
|
Total Diversified |
|
|
56,153 |
|
|
Electricity Transmission & Distribution
– 0.1% |
|
CenterPoint Energy, Inc. (d) |
|
|
2,080 |
|
|
|
60,632 |
|
|
Equatorial Energia SA (b) |
|
|
16,878 |
|
|
|
113,149 |
|
|
PG&E Corp. (d),(k) |
|
|
5,560 |
|
|
|
96,077 |
|
|
Sempra Energy (d) |
|
|
558 |
|
|
|
81,239 |
|
|
Total Electricity Transmission &
Distribution |
|
|
351,097 |
|
|
Gas Utilities – 0.0% |
|
China Resources Gas Group Ltd. (b) |
|
|
14,030 |
|
|
|
48,114 |
|
|
ENN Energy Holdings Ltd. (b) |
|
|
3,229 |
|
|
|
40,389 |
|
|
NiSource, Inc. (d) |
|
|
2,211 |
|
|
|
60,471 |
|
|
Total Gas Utilities |
|
|
148,974 |
|
|
Healthcare – 0.0% |
|
CareTrust REIT, Inc. (d) |
|
|
893 |
|
|
|
17,735 |
|
|
Healthpeak Properties, Inc. (d) |
|
|
861 |
|
|
|
17,306 |
|
|
Ventas, Inc. (d) |
|
|
794 |
|
|
|
37,532 |
|
|
Total Healthcare |
|
|
72,573 |
|
|
Hotel – 0.0% |
|
Japan Hotel REIT Investment Corp. (b) |
|
|
14 |
|
|
|
7,142 |
|
|
See Notes to Financial Statements.
2023 Semi-Annual Report
19
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Shares |
|
Value |
|
COMMON STOCKS (continued) |
|
Industrial – 0.0% |
|
GLP J-Reit (b) |
|
|
4 |
|
|
$ |
3,945 |
|
|
Goodman Group (b) |
|
|
1,900 |
|
|
|
25,542 |
|
|
Mitsui Fudosan Logistics Park, Inc. (b),(d) |
|
|
3 |
|
|
|
10,419 |
|
|
Prologis, Inc. |
|
|
673 |
|
|
|
82,530 |
|
|
Rexford Industrial Realty, Inc. |
|
|
524 |
|
|
|
27,363 |
|
|
Total Industrial |
|
|
149,799 |
|
|
Manufactured Homes – 0.0% |
|
Sun Communities, Inc. (d) |
|
|
121 |
|
|
|
15,786 |
|
|
Midstream – 0.7% |
|
AltaGas Ltd. (b) |
|
|
1,636 |
|
|
|
29,392 |
|
|
Cheniere Energy, Inc. (d) |
|
|
8,615 |
|
|
|
1,312,581 |
|
|
DT Midstream, Inc. |
|
|
13,132 |
|
|
|
650,953 |
|
|
Equitrans Midstream Corp. (d) |
|
|
71,715 |
|
|
|
685,596 |
|
|
Targa Resources Corp. (d) |
|
|
18,027 |
|
|
|
1,371,855 |
|
|
The Williams Companies, Inc. (d) |
|
|
40,154 |
|
|
|
1,310,225 |
|
|
Total Midstream |
|
|
5,360,602 |
|
|
Net Lease – 0.0% |
|
Agree Realty Corp. (d) |
|
|
273 |
|
|
|
17,851 |
|
|
Essential Properties Realty Trust, Inc. |
|
|
622 |
|
|
|
14,642 |
|
|
VICI Properties, Inc. (d) |
|
|
1,177 |
|
|
|
36,993 |
|
|
Total Net Lease |
|
|
69,486 |
|
|
Office – 0.0% |
|
Allied Properties Real Estate Investment Trust
(b) |
|
|
353 |
|
|
|
5,788 |
|
|
Cousins Properties, Inc. |
|
|
690 |
|
|
|
15,732 |
|
|
Derwent London PLC (b),(d) |
|
|
693 |
|
|
|
18,039 |
|
|
Gecina SA (b),(d) |
|
|
208 |
|
|
|
22,189 |
|
|
Mitsui Fudosan Company Ltd. (b) |
|
|
1,449 |
|
|
|
28,880 |
|
|
Orix JREIT, Inc. (b) |
|
|
10 |
|
|
|
12,310 |
|
|
Total Office |
|
|
102,938 |
|
|
Oil Gas Transportation & Distribution
– 0.0% |
|
Thunderbird Resources Equity, Inc. –
(Acquired 4/1/2015, cost $1,114,211) (e),(f),(k) |
|
|
11 |
|
|
|
11 |
|
|
Other – 0.0% |
|
SolarEdge Technologies, Inc. (k) |
|
|
40 |
|
|
|
10,762 |
|
|
Pipeline (MLP) – 0.9% |
|
Energy Transfer LP (d) |
|
|
98,597 |
|
|
|
1,252,182 |
|
|
Enterprise Products Partners LP (d) |
|
|
47,784 |
|
|
|
1,259,108 |
|
|
Magellan Midstream Partners LP |
|
|
20,692 |
|
|
|
1,289,526 |
|
|
MPLX
LP (d) |
|
|
36,984 |
|
|
|
1,255,237 |
|
|
Plains All American Pipeline LP (d) |
|
|
46,671 |
|
|
|
658,061 |
|
|
Western Midstream Partners LP (d) |
|
|
46,773 |
|
|
|
1,240,420 |
|
|
Total Pipeline (MLP) |
|
|
6,954,534 |
|
|
Pipelines – 0.3% |
|
Enbridge, Inc. (b) |
|
|
35,211 |
|
|
|
1,308,115 |
|
|
TC Energy Corp. (b),(d) |
|
|
32,723 |
|
|
|
1,322,345 |
|
|
Total Pipelines |
|
|
2,630,460 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
20
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Shares |
|
Value |
|
COMMON STOCKS (continued) |
|
Rail – 0.0% |
|
Canadian Pacific Kansas City Ltd. (b),(d) |
|
|
564 |
|
|
$ |
45,554 |
|
|
CSX Corp. (d) |
|
|
1,710 |
|
|
|
58,311 |
|
|
East Japan Railway Co. (b) |
|
|
927 |
|
|
|
51,406 |
|
|
Rumo SA (b) |
|
|
9,960 |
|
|
|
46,303 |
|
|
West Japan Railway Co. (b) |
|
|
709 |
|
|
|
29,489 |
|
|
Total Rail |
|
|
231,063 |
|
|
Real Estate – 0.0% |
|
Healthcare Realty Trust, Inc. |
|
|
945 |
|
|
|
17,823 |
|
|
Renewable Power & Infrastructure
– 0.1% |
|
Atlantica Sustainable Infrastructure PLC (b),(d) |
|
|
3,100 |
|
|
|
72,664 |
|
|
China Longyuan Power Group Corporation Ltd.
(b) |
|
|
32,800 |
|
|
|
33,878 |
|
|
Clearway Energy, Inc. (d) |
|
|
2,600 |
|
|
|
74,256 |
|
|
Drax Group PLC (b),(d) |
|
|
12,368 |
|
|
|
91,134 |
|
|
EDP Renovaveis SA (b) |
|
|
3,200 |
|
|
|
63,947 |
|
|
Enel SpA (b) |
|
|
7,350 |
|
|
|
49,557 |
|
|
Enphase Energy, Inc. (k) |
|
|
180 |
|
|
|
30,146 |
|
|
Exelon Corp. (d) |
|
|
4,070 |
|
|
|
165,812 |
|
|
Fortis, Inc. (b),(d) |
|
|
700 |
|
|
|
30,166 |
|
|
Grenergy Renovables SA (b),(k) |
|
|
1,609 |
|
|
|
49,644 |
|
|
Iberdrola SA (b) |
|
|
4,429 |
|
|
|
57,838 |
|
|
Mercury NZ Ltd. (b),(d) |
|
|
12,571 |
|
|
|
50,246 |
|
|
National Grid PLC (b),(d) |
|
|
11,076 |
|
|
|
146,850 |
|
|
NextEra Energy Partners LP |
|
|
600 |
|
|
|
35,184 |
|
|
Omega Energia SA (b),(k) |
|
|
9,450 |
|
|
|
22,183 |
|
|
Orsted A/S (a),(b) |
|
|
605 |
|
|
|
57,355 |
|
|
Vestas Wind Systems A/S (b),(k) |
|
|
1,300 |
|
|
|
34,564 |
|
|
Total Renewable Power & Infrastructure |
|
|
1,065,424 |
|
|
Renewables/Electric Generation –
0.1% |
|
Ameren Corp. (d) |
|
|
700 |
|
|
|
57,169 |
|
|
American Electric Power Company, Inc. (d) |
|
|
423 |
|
|
|
35,617 |
|
|
CLP Holdings Ltd. (b) |
|
|
4,341 |
|
|
|
33,810 |
|
|
CMS Energy Corp. |
|
|
1,110 |
|
|
|
65,213 |
|
|
NextEra Energy, Inc. (d) |
|
|
3,100 |
|
|
|
230,020 |
|
|
PPL Corp. |
|
|
2,140 |
|
|
|
56,624 |
|
|
Public Service Enterprise Group, Inc. (d) |
|
|
2,300 |
|
|
|
144,003 |
|
|
RWE AG (b) |
|
|
1,282 |
|
|
|
55,865 |
|
|
SSE PLC (b),(d) |
|
|
4,256 |
|
|
|
99,804 |
|
|
WEC Energy Group, Inc. |
|
|
755 |
|
|
|
66,621 |
|
|
Xcel Energy, Inc. (d) |
|
|
2,210 |
|
|
|
137,396 |
|
|
Total Renewables/Electric Generation |
|
|
982,142 |
|
|
Residential – 0.0% |
|
American Homes 4 Rent |
|
|
384 |
|
|
|
13,613 |
|
|
Boardwalk Real Estate Investment Trust (b) |
|
|
291 |
|
|
|
13,661 |
|
|
Comforia Residential REIT, Inc. (b) |
|
|
3 |
|
|
|
7,184 |
|
|
Equity Residential |
|
|
339 |
|
|
|
22,364 |
|
|
Grainger PLC (b) |
|
|
2,528 |
|
|
|
7,295 |
|
|
InterRent Real Estate Investment Trust (b) |
|
|
1,803 |
|
|
|
17,448 |
|
|
See Notes to Financial Statements.
2023 Semi-Annual Report
21
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Shares |
|
Value |
|
COMMON STOCKS (continued) |
|
Mid-America Apartment Communities, Inc. |
|
|
162 |
|
|
$ |
24,601 |
|
|
The UNITE Group PLC (b),(d) |
|
|
1,269 |
|
|
|
14,057 |
|
|
UDR, Inc. |
|
|
866 |
|
|
|
37,203 |
|
|
Vonovia SE (b) |
|
|
346 |
|
|
|
6,757 |
|
|
Total Residential |
|
|
164,183 |
|
|
Retail – 0.0% |
|
Capital & Counties Properties PLC (b),(d) |
|
|
9,227 |
|
|
|
13,488 |
|
|
Kimco Realty Corp. (d) |
|
|
1,513 |
|
|
|
29,836 |
|
|
Kite Realty Group Trust |
|
|
928 |
|
|
|
20,731 |
|
|
Simon Property Group, Inc. |
|
|
100 |
|
|
|
11,548 |
|
|
Unibail-Rodamco-Westfield (b),(k) |
|
|
64 |
|
|
|
3,376 |
|
|
Wharf Real Estate Investment Company Ltd. (b) |
|
|
5,807 |
|
|
|
29,136 |
|
|
Total Retail |
|
|
108,115 |
|
|
Self Storage – 0.0% |
|
National Storage REIT (b),(d) |
|
|
8,018 |
|
|
|
12,586 |
|
|
Public Storage |
|
|
86 |
|
|
|
25,102 |
|
|
Total Self Storage |
|
|
37,688 |
|
|
Toll Roads – 0.0% |
|
Transurban Group (b),(d) |
|
|
14,702 |
|
|
|
139,983 |
|
|
Utility – 0.1% |
|
Vistra Corp. (d) |
|
|
25,848 |
|
|
|
678,510 |
|
|
Water – 0.0% |
|
Aguas Andinas SA (b) |
|
|
63,185 |
|
|
|
21,909 |
|
|
Severn Trent PLC (b) |
|
|
2,500 |
|
|
|
81,501 |
|
|
Total Water |
|
|
103,410 |
|
|
Water & Waste Infrastructure –
0.1% |
|
Veolia Environment SA (b) |
|
|
2,533 |
|
|
|
80,184 |
|
|
Waste Connections, Inc. |
|
|
580 |
|
|
|
82,892 |
|
|
Waste Management, Inc. (d) |
|
|
520 |
|
|
|
90,178 |
|
|
Xylem, Inc. (d) |
|
|
286 |
|
|
|
32,209 |
|
|
Total Water & Waste Infrastructure |
|
|
285,463 |
|
|
Water Sustainability – 0.0% |
|
American Water Works Company, Inc. |
|
|
300 |
|
|
|
42,825 |
|
|
Wind & Solar – 0.0% |
|
Boralex, Inc. – Class A (b) |
|
|
2,500 |
|
|
|
68,069 |
|
|
Total
COMMON STOCKS (Cost $16,833,528) |
|
|
|
|
20,478,824 |
|
|
MONEY MARKET FUND – 4.4% |
|
First American Treasury Obligations Fund –
Class X, 5.04% (l) |
|
|
36,378,732 |
|
|
|
36,378,732 |
|
|
Total
MONEY MARKET FUND (Cost $36,378,732) |
|
|
|
|
36,378,732 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
22
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
|
|
Principal Amount |
|
Value |
|
U.S. TREASURY BILL – 0.7% |
|
United
States Treasury Bill 0.00%, 07/20/23 |
|
$ |
5,750,000 |
|
|
$ |
5,734,994 |
|
|
Total U.S. TREASURY BILL
(Cost $5,734,994) |
|
|
|
|
5,734,994 |
|
|
Total
Investments – 118.1% (Cost $1,079,014,591) |
|
|
|
|
981,611,032 |
|
|
Liabilities in Excess of Other Assets
– (18.1)% |
|
|
|
|
(150,525,351 |
) |
|
TOTAL NET ASSETS – 100.0% |
|
|
|
$ |
831,085,681 |
|
|
The following notes should
be read in conjunction with the accompanying Schedule of Investments.
(a) — Security
exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration
to qualified institutional buyers. As of June 30, 2023, the total value of all such securities was $552,683,595 or 66.5% of net assets.
(b) — Foreign
security or a U.S. security of a foreign company.
(c) — Variable
rate security – Interest rate is based on reference rate and spread or based on the underlying assets. Interest rate may also be
subject to a cap or floor. Securities that reference SOFR may be subject to a credit spread adjustment, particularly to legacy holdings
that reference LIBOR that have transitioned to SOFR as the base lending rate.
(d) — All
or a portion of security has been pledged as collateral for credit facility. As of June 30, 2023, the total value of the collateral was
$390,637,131.
(e) — Security
fair valued in good faith pursuant to the fair value procedures adopted by the Board of Directors. As of June 30, 2023, the total value
of all such securities was $16,679,406 or 2.0% of net assets. These securities are characterized as Level 3 securities within the disclosure
hierarchy. Level 3 security values are determined using significant unobservable inputs.
(f) — Restricted
security. Purchased in a private placement transaction; resale to the public may require registration. As of June 30, 2023, the total
value of all such securities was 16,679,406 or 2.0% of net assets.
(g) — Issuer
is currently in default on its regularly scheduled interest payment.
(h) — Inverse
floating rate security whose interest rate moves in the opposite direction of reference interest rates. Reference interest rates are typically
based on a negative multiplier or slope. Interest rate may also be subject to a cap or floor.
(i) — Security
is a "step up" bond where the coupon increases or steps up at a predetermined date. Interest rate shown is the rate in effect as of June
30, 2023.
(j) — Portion
or entire principal amount delivered as collateral for reverse repurchase agreements. As of June 30, 2023, the total value of the collateral
was $11,720,625.
(k) — Non-income
producing security.
(l) — The
rate shown represents the seven-day yield as of June 30, 2023.
Abbreviations:
CME — Chicago
Mercantile Exchange
CMT — Constant
Maturity Treasury Rate
EURIBOR —
Euro Interbank Offered Rate
LIBOR — London
Interbank Offered Rates
LLC — Limited
Liability Corporation
LP — Limited
Partnership
MLP — Master
Limited Partnership
SOFR — Secured
Overnight Financial Rate
USD — United
States Dollar
See Notes to Financial Statements.
2023 Semi-Annual Report
23
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Schedule of Investments
(Unaudited) (continued)
June 30, 2023
Forward
Currency Contracts:
As of June 30, 2023, the following forward
currency contracts were outstanding:
Settlement Date |
|
Currency Purchased |
|
Currency Sold |
|
Counterparty |
|
Value
/ Unrealized Appreciation (Depreciation) |
|
8/3/2023 |
|
|
967,983 |
|
|
USD |
|
|
|
|
772,310 |
|
|
GBP |
|
|
|
State Street Bank & Trust Company |
|
$ |
(13,085 |
) |
|
8/3/2023 |
|
|
2,981,312 |
|
|
USD |
|
|
|
|
2,696,838 |
|
|
EUR |
|
|
|
State Street Bank & Trust Company |
|
|
33,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
20,104 |
|
|
See Notes to Financial Statements.
Brookfield Public Securities
Group LLC
24
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited)
June 30, 2023
1. Organization
Brookfield Real Assets Income Fund Inc. (the
"Fund") is a diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the
"1940 Act"). The Fund's shares are listed on the New York Stock Exchange ("NYSE") and trade under the ticker symbol "RA." The Fund was
incorporated under the laws of the State of Maryland on October 6, 2015.
Brookfield Public Securities Group LLC ("PSG"
or the "Adviser"), a wholly-owned subsidiary of Brookfield Asset Management Inc., is registered as an investment adviser under the Investment
Advisers Act of 1940, as amended, and serves as investment adviser to the Fund.
The investment objective of the Fund is to
seek high total return, primarily through high current income and secondarily, through growth of capital. The investment objective is
not fundamental and may be changed by the Fund's Board of Directors (the "Board") without shareholder approval, upon not less than 60
days prior written notice to shareholders. No assurances can be given that the Fund's investment objective will be achieved.
The Fund seeks to achieve its investment
objective by investing primarily in the real asset class, which includes the following: Real Estate Securities; Infrastructure Securities;
and Natural Resources Securities (collectively, "Real Asset Companies and Issuers").
Under normal market conditions, the Fund
will invest at least 80% of its Managed Assets (average daily net assets plus the amount of any borrowings for investment purposes) in
the securities and other instruments of Real Asset Companies and Issuers (the "80% Policy"). The Fund may change the 80% Policy without
shareholder approval, upon at least 60 days' prior written notice to shareholders. The Fund normally expects to invest at least 65% of
its Managed Assets in fixed income securities of Real Asset Companies and Issuers and in derivatives and other instruments that have economic
characteristics similar to such securities.
2. Significant Accounting
Policies
The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates. The Fund is an investment company and follows accounting and reporting guidance
under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, Financial Services-Investment
Companies.
Valuation of Investments: The Board
has adopted procedures for the valuation of the Fund's securities. The Adviser oversees the day to day responsibilities for valuation
determinations under these procedures. The Board regularly reviews the application of these procedures to the securities in the Fund's
portfolio. The Adviser's Valuation Committee is comprised of senior members of the Adviser's management team.
The Board has designated the Adviser as the
valuation designee pursuant to Rule 2a-5 under the 1940 Act to perform fair value determination relating to any or all Fund investments.
The Board oversees the Adviser in its role as the valuation designee in accordance with the requirements of Rule 2a-5 under the 1940 Act.
Investments in equity securities listed or
traded on any securities exchange or traded in the over-the-counter market are valued at the last trade price as of the close of business
on the valuation date. If the NYSE closes early, then the equity security will be valued at the last traded price before the NYSE close.
Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair
value pricing service approved by the Board in order to reflect an adjustment for the factors occurring after the close of certain foreign
markets but before the NYSE close. When fair value pricing is employed, the value of the portfolio securities used
Brookfield Public Securities
Group LLC
30
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
to calculate the Fund's net asset value ("NAV")
may differ from quoted or official closing prices. Investments in open-end registered investment companies, if any, are valued at the
NAV as reported by those investment companies.
Debt securities, including U.S. government
securities, listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities,
are generally valued at the bid prices furnished by an independent pricing service or, if not valued by an independent pricing service,
using bid prices obtained from active and reliable market makers in any such security or a broker-dealer. Valuations from broker-dealers
or pricing services consider appropriate factors such as market activity, market activity of comparable securities, yield, estimated default
rates, timing of payments, underlying collateral, coupon rate, maturity date, and other factors. Short-term debt securities with remaining
maturities of sixty days or less are valued at amortized cost of discount or premium to maturity, unless such valuation, in the judgment
of the Adviser's Valuation Committee, does not represent fair value.
Over-the-counter financial derivative instruments,
such as forward currency contracts, options contracts, or swap agreements, derive their values from underlying asset prices, indices,
reference rates, other inputs or a combination of these factors. These instruments are normally valued on the basis of evaluations provided
by independent pricing services or broker dealer quotations. Depending on the instrument and the terms of the transaction, the value of
the derivative instruments can be estimated by a pricing service provider using a series of techniques, such as simulation pricing models.
The pricing models use issuer details and other inputs that are observed from actively quoted markets such as indices, spreads, interest
rates, curves, dividends and exchange rates. Derivatives that use similar valuation techniques and inputs as described above are normally
categorized as Level 2 of the fair value hierarchy.
Securities for which market prices are not
readily available, cannot be determined using the sources described above, or the Adviser's Valuation Committee determines that the quotation
or price for a portfolio security provided by a broker-dealer or an independent pricing service is inaccurate will be valued at a fair
value determined by the Adviser's Valuation Committee following the procedures adopted by the Adviser under the supervision of the Board.
The Adviser's valuation policy establishes parameters for the sources, methodologies, and inputs the Adviser's Valuation Committee uses
in determining fair value.
The fair valuation methodology may include
or consider the following guidelines, as appropriate: (1) evaluation of all relevant factors, including but not limited to, pricing history,
current market level, supply and demand of the respective security; (2) comparison to the values and current pricing of securities that
have comparable characteristics; (3) knowledge of historical market information with respect to the security; (4) other factors relevant
to the security which would include, but not be limited to, duration, yield, fundamental analytical data, the Treasury yield curve, and
credit quality. The fair value may be difficult to determine and thus judgment plays a greater role in the valuation process. Imprecision
in estimating fair value can also impact the amount of unrealized appreciation or depreciation recorded for a particular portfolio security
and differences in the assumptions used could result in a different determination of fair value, and those differences could be material.
For those securities valued by fair valuations, the Adviser's Valuation Committee reviews and affirms the reasonableness of the valuations
based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably
available. There can be no assurance that the Fund could purchase or sell a portfolio security at the price used to calculate the Fund's
NAV.
A three-tier hierarchy has been established
to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value
measurements for disclosure purposes.
Observable inputs are inputs that reflect
the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent
of the reporting entity. Unobservable
2023 Semi-Annual Report
31
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
inputs are inputs that reflect the reporting
entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the
best information available in the circumstances.
The three-tier hierarchy of inputs is summarized
in the three broad levels listed below:
Level 1 — quoted prices in active markets
for identical assets or liabilities
Level 2 — quoted prices in markets
that are not active or other significant observable inputs (including, but not limited to: quoted prices for similar assets or liabilities,
quoted prices based on recently executed transactions, interest rates, credit risk, etc.)
Level 3 — significant unobservable
inputs (including the Fund's own assumptions in determining the fair value of assets or liabilities)
The following table summarizes the Fund's
investments valuation inputs categorized in the disclosure hierarchy as of June 30, 2023:
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
U.S. Government & Agency Obligations
|
|
$ |
— |
|
|
$ |
1,460,296 |
|
|
$ |
— |
|
|
$ |
1,460,296 |
|
|
Securitized Credit |
|
|
— |
|
|
|
343,224,442 |
|
|
|
16,679,395 |
|
|
|
359,903,837 |
|
|
Corporate Credit |
|
|
— |
|
|
|
519,079,812 |
|
|
|
— |
|
|
|
519,079,812 |
|
|
Term Loans |
|
|
— |
|
|
|
30,359,296 |
|
|
|
— |
|
|
|
30,359,296 |
|
|
Preferred Stocks |
|
|
8,215,241 |
|
|
|
— |
|
|
|
— |
|
|
|
8,215,241 |
|
|
Common Stocks |
|
|
18,643,901 |
|
|
|
1,834,912 |
|
|
|
11 |
|
|
|
20,478,824 |
|
|
Money Market Fund |
|
|
36,378,732 |
|
|
|
— |
|
|
|
— |
|
|
|
36,378,732 |
|
|
U.S. Treasury Bill |
|
|
— |
|
|
|
5,734,994 |
|
|
|
— |
|
|
|
5,734,994 |
|
|
Total Investments |
|
$ |
63,237,874 |
|
|
$ |
901,693,752 |
|
|
$ |
16,679,406 |
|
|
$ |
981,611,032 |
|
|
Other Financial Instruments(1)
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
Forward currency contracts |
|
$ |
— |
|
|
$ |
20,104 |
|
|
$ |
— |
|
|
$ |
20,104 |
|
|
Total |
|
$ |
— |
|
|
$ |
20,104 |
|
|
$ |
— |
|
|
$ |
20,104 |
|
|
(1) Forward currency contracts
are reflected at the net unrealized appreciation on the instruments.
The fair value of the Fund's credit facility
and reverse repurchase agreements, which qualify as financial instruments under ASC Topic 825, Disclosures about Fair Values of Financial
Instruments, approximates the carrying amounts of $152,000,000 for the credit facility and $10,330,000 for the reverse repurchase
agreements presented in the Statement of Assets and Liabilities. As of June 30, 2023, these financial instruments are categorized as Level
2 within the disclosure hierarchy.
Brookfield Public Securities
Group LLC
32
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
The table below shows the significant unobservable
valuation inputs that were used by the Adviser's Valuation Committee to fair value the Level 3 investments as of June 30, 2023.
|
|
Quantitative Information about Level
3 Fair Value Measurements |
|
|
|
Value as of June 30, 2023
|
|
Valuation Approach
|
|
Valuation Methodology
|
|
Unobservable Input
|
|
Amount or Range/ (Weighted Average)
|
|
Impact to Valuation from an Increase in
Input(1) |
|
Securitized Credit
|
|
Commercial Real Estate |
|
$ |
7,750,730 |
|
|
Income Approach |
|
Discounted Cash Flow |
|
Yield (Discount Rate of Cash Flows)
|
|
11.0%-17.0% (15.4)% |
|
Decrease |
|
|
|
|
8,928,665 |
|
|
Market Approach |
|
Expected Recovery Value
|
|
Multiple of Underlying Assets
|
|
1x |
|
Increase |
|
Common Stocks |
|
Thunderbird Resources Equity, Inc.
|
|
|
11 |
|
|
Asset-Based Approach |
|
Analysis of Enterprise Value
|
|
Enterprise Value |
|
$1 |
|
Increase |
|
Total |
|
$ |
16,679,406 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) The impact represents
the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input.
A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly
higher or lower fair value measurements.
The following is a reconciliation of the
assets in which significant unobservable inputs (Level 3) were used in determining fair value:
|
|
Securitized Credit |
|
Common Stocks |
|
Total |
|
Balance as of December 31, 2022
|
|
$ |
16,375,944 |
|
|
$ |
11 |
|
|
$ |
16,375,955 |
|
|
Accrued
discounts (premiums) |
|
|
18,957 |
|
|
|
— |
|
|
|
18,957 |
|
|
Realized
gain (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Change
in unrealized appreciation (depreciation) |
|
|
(373,557 |
) |
|
|
— |
|
|
|
(373,557 |
) |
|
Purchases
at cost |
|
|
658,051 |
|
|
|
— |
|
|
|
658,051 |
|
|
Sales
proceeds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Balance as of June 30, 2023 |
|
$ |
16,679,395 |
|
|
$ |
11 |
|
|
$ |
16,679,406 |
|
|
Change
in unrealized appreciation (depreciation) for Level 3 assets still held at the reporting date |
|
$ |
(373,557 |
) |
|
$ |
— |
|
|
$ |
(373,557 |
) |
|
For further information regarding the security
characteristics of the Fund, see the Schedule of Investments.
Investment Transactions and Investment
Income: Securities transactions are recorded on trade date. Realized gains and losses from securities transactions are calculated
on the identified cost basis. Interest income is recorded on the accrual basis. Discounts and premiums on securities are accreted and
amortized on a daily basis using the effective yield to maturity and yield to next methods, respectively, and might be adjusted based
on management's assessment of the collectability of such interest. Dividend income is recorded on the ex-dividend date. Net realized gain
(loss) on the Statement of Operations may also include realized gain distributions received from real estate investment trusts ("REITs").
Distributions of net realized gains are recorded on the REIT's ex-dividend date. Distributions from REITs are recorded as ordinary income,
net realized capital gain or return of capital based on information reported by the REITs and management's estimates of such amounts based
on historical information. These estimates are adjusted when the actual source of distributions are disclosed by the REITs and actual
amounts
2023 Semi-Annual Report
33
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
may differ from the estimated amounts. A
distribution received from the Fund's investments in master limited partnerships ("MLP") generally are comprised of return of capital.
The Fund records investment income and return of capital based on estimates made at the time such distributions are received. Such estimates
are based on historical information available from each MLP and other industry sources. These estimates may subsequently be revised based
on information received from the MLPs after their tax reporting periods are concluded.
Master Limited Partnerships: A MLP
is an entity receiving partnership taxation treatment under the U.S. Internal Revenue Code of 1986 (the "Code"), the partnership interests
or "units" of which are traded on securities exchanges like shares of corporate stock. Holders of MLP units generally have limited control
and voting rights on matters affecting the partnership.
The Fund invests in MLPs, which generally
are treated as partnerships for federal income tax purposes. If an MLP does not meet current legal requirements to maintain partnership
status, or if it is unable to do so because of tax law changes, it would be taxed as a corporation or other form of taxable entity and
there could be a material decrease in the value of its securities. Additionally, if tax law changes to eliminate or reduce tax deductions
such as depletion, depreciation and amortization expense deductions that MLPs have been able to use to offset a significant portion of
their taxable income, it could significantly reduce the value of the MLPs held by the Fund and could cause a greater portion of the income
and gain allocated to the Fund to be subject to U.S. federal, state and local corporate income taxes, which would reduce the amount the
Fund can distribute to shareholders and could increase the percentage of Fund distributions treated as dividends instead of tax-deferred
return of capital.
Depreciation or other cost recovery deductions
passed through to the Fund from investments in MLPs in a given year will generally reduce the Fund's taxable income (and earnings and
profits), but those deductions may be recaptured in the Fund's taxable income (and earnings and profits) in subsequent years when the
MLPs dispose of their assets or when the Fund disposes of its interests in the MLPs. When deductions are recaptured, distributions to
the Fund's shareholders may be taxable.
Foreign Currency Transactions: Securities
and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases
and sales of securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the
respective dates of such transactions. The Fund does not isolate the portion of gains or losses resulting from changes in foreign exchange
rates on securities from the fluctuations arising from changes in market prices.
Reported net realized foreign exchange gains
or losses arise from sales of securities, currency gains or losses realized between the trade and settlement dates on securities transactions
and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S.
dollar equivalent of the amounts actually received or paid.
Expenses: Expenses directly attributable
to the Fund are charged directly to the Fund, while expenses that are attributable to the Fund and other investment companies advised
by the Adviser are allocated among the respective investment companies, including the Fund, based either upon relative average net assets,
evenly, or a combination of average net assets and evenly.
Distributions to Shareholders: The
Fund declares and pays dividends monthly from net investment income. To the extent these distributions exceed net investment income, they
may be classified as return of capital. The Fund also pays distributions at least annually from its net realized capital gains, if any.
Dividends and distributions are recorded on the ex-dividend date. All common shares have equal dividend and other distribution rights.
A notice disclosing the source(s) of a distribution is provided after a payment is made from any source other than net investment income.
This notice is available on the Adviser's website at https://publicsecurities.brookfield.com/en. Any such notice is provided only for
informational purposes in order to comply with the requirements of Section 19(a) of the 1940 Act and not for tax reporting purposes. The
tax composition of the Fund's distributions for each calendar year is reported on IRS Form 1099-DIV.
Brookfield Public Securities
Group LLC
34
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
Dividends from net investment income and
distributions from realized gains from investment transactions have been determined in accordance with Federal income tax regulations
and may differ from net investment income and realized gains recorded by the Fund for financial reporting purposes. These differences,
which could be temporary or permanent in nature, may result in reclassification of distributions; however, net investment income, net
realized gains and losses and net assets are not affected.
When Issued, Delayed Delivery Securities
and Forward Commitments: The Fund may enter into forward commitments for the purchase or sale of securities, including on a "when
issued" or "delayed delivery" basis, in excess of customary settlement periods for the type of security involved. In some cases, a forward
commitment may be conditioned upon the occurrence of a subsequent event, such as approval and consummation of a merger, corporate reorganization
or debt restructuring (i.e., a when, as and if issued security). When such transactions are negotiated, the price is fixed at the time
of the commitment, with payment and delivery taking place in the future, generally a month or more after the date of the commitment. While
it will only enter into a forward commitment with the intention of actually acquiring the security, the Fund may sell the security before
the settlement date if it is deemed advisable. Securities purchased under a forward commitment are subject to market fluctuation, and
no interest (or dividends) accrues to the Fund prior to the settlement date. The Fund will segregate with its custodian cash or liquid
securities in an aggregate amount at least equal to the amount of its outstanding forward commitments.
New Accounting Pronouncements: In
June 2022, FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual
Sale Restrictions. The amendments in this update clarify the guidance in Topic 820 when measuring the fair value of an equity security
subject to contractual sale restrictions and introduce new disclosure requirements related to such equity securities. The amendments are
effective for fiscal years beginning after December 15, 2023, with early adoption permitted. Management is currently evaluating the impact
of this guidance on the Funds' financial statements.
3. Derivative Financial
Instruments
The Fund may purchase and sell derivative
instruments such as exchange-listed and over-the counter put and call options on securities, financial futures, equity, fixed-income and
interest rate indices, and other financial instruments. It may purchase and sell financial futures contracts and options thereon. Moreover,
the Fund may enter into various interest rate transactions such as swaps, caps, floors or collars and enter into various currency transactions
such as forward currency contracts, currency futures contracts, currency swaps or options on currency or currency futures or credit transactions
and credit default swaps. The Fund may also purchase derivative instruments that combine features of several of these instruments. The
Fund may invest in, or enter into, derivatives for a variety of reasons, including to hedge certain market risks, to provide a substitute
for purchasing or selling particular securities or to increase potential income gain.
Financial Futures Contracts: A futures
contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits
are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes
in the value of the contract are recognized as unrealized gains or losses by "marking-to-market" on a daily basis to reflect the market
value of the contract at the end of each day's trading. Variation margin payments are made or received, depending upon whether unrealized
gains or losses are incurred. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the
proceeds from (or cost of) the closing transaction and the Fund's basis in the contract.
2023 Semi-Annual Report
35
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
The Fund invests in financial futures contracts
to hedge against fluctuations in the value of portfolio securities caused by changes in prevailing market interest rates. Should interest
rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss.
The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates
and the underlying hedged assets. The Fund is at risk that it may not be able to close out a transaction because of an illiquid market.
There were no futures contracts outstanding
as of June 30, 2023.
Forward Currency Contracts: A forward
currency contract ("forward contract") is an agreement between two parties to buy or sell a currency at an agreed upon price for settlement
at a future date. During the period the forward contract is in existence, changes in the value of the forward contract will fluctuate
with changes in the currency exchange rates. The forward contract is marked to market daily and these changes are recorded as an unrealized
gain or loss. Gain or loss on the purchase or sale of a forward contract is realized on the settlement date.
The Fund invests in forward contracts to
hedge against fluctuations in the value of foreign currencies caused by changes in the prevailing currency exchange rates. The use of
forward contracts involves the risk that the counterparties may be unable to meet the terms of their contracts and may be negatively impacted
from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.
The average quarterly U.S. dollar value of
forward currency contracts to be delivered or received during the six months ended June 30, 2023 was $4,640,643, which represents the
volume of activity during the period.
The following table sets forth the fair value
of the Fund's derivative instruments:
Derivatives |
|
Statement of Assets and Liabilities
|
|
Value
as of June 30, 2023 |
|
Forward currency contracts |
|
Receivable for open forward currency contracts
(assets) |
|
$ |
33,189 |
|
|
Forward currency contracts |
|
Payable for open forward currency contracts
(liabilities) |
|
|
(13,085 |
) |
|
The following table sets forth the effect
of derivative instruments on the Statement of Operations for the six months ended June 30, 2023:
Derivatives |
|
Location
of Gains (Losses) on Derivatives Recognized in Income |
|
Net Realized Loss
|
|
Net
Change in Unrealized Appreciation |
|
Forward currency contracts |
|
Forward currency contracts |
|
$ |
(358,463 |
) |
|
$ |
297,127 |
|
|
The Fund has elected to not offset derivative
assets and liabilities or financial assets, including cash, that may be received or paid as part of collateral arrangements, even when
an enforceable master netting agreement is in place that provides the Fund, in the event of counterparty default, the right to liquidate
collateral and the right to offset a counterparty's rights and obligations.
Brookfield Public Securities
Group LLC
36
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
Below is the gross and net information about
instruments and transactions eligible for offset in the Statement of Assets and Liabilities as well as instruments and transactions subject
to an agreement similar to a master netting arrangement:
|
|
|
|
Collateral |
|
|
|
|
|
Gross Amounts
of Recognized Assets |
|
Gross Amounts Offset
in the Statement of Assets and Liabilities |
|
Net
Amounts Presented in the Statement of Assets and Liabilities |
|
Non-Cash Collateral (Pledged) Received |
|
Collateral Pledged (Received) |
|
Net
Amount |
|
Assets: |
|
Forward
currency contracts |
|
$ |
33,189 |
|
|
$ |
— |
|
|
$ |
33,189 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33,189 |
|
|
Liabilities: |
|
Forward
currency contracts |
|
$ |
13,085 |
|
|
$ |
— |
|
|
$ |
(13,085 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(13,085 |
) |
|
4. Risks of Investing
in Asset-Backed Securities and Below-Investment Grade Securities
The value of asset-backed securities may
be affected by, among other factors, changes in: interest rates, the market's assessment of the quality of the underlying assets, the
creditworthiness of the servicer for the underlying assets, information concerning the originator of the underlying assets, or the creditworthiness
or rating of the entities that provide any supporting letters of credit, surety bonds, derivative instruments or other credit enhancement.
The value of asset-backed securities also
will be affected by the exhaustion, termination or expiration of any credit enhancement. The Fund has investments in below-investment
grade debt securities, including mortgage-backed and asset-backed securities. Below-investment grade securities involve a higher degree
of credit risk than investment grade debt securities. In the event of an unanticipated default, the Fund would experience a reduction
in its income, a decline in the market value of the securities so affected and a decline in the NAV of its shares. During an economic
downturn or period of rising interest rates, highly leveraged and other below-investment grade issuers frequently experience financial
stress that could adversely affect its ability to service principal and interest payment obligations, to meet projected business goals
and to obtain additional financing.
The market prices of below-investment grade
debt securities are generally less sensitive to interest rate changes than higher-rated investments but are more sensitive to adverse
economic or political changes or individual developments specific to the issuer than higher-rated investments. Periods of economic or
political uncertainty and change can be expected to result in significant volatility of prices for these securities. Rating services consider
these securities to be speculative in nature.
Below-investment grade securities may be subject
to market conditions, events of default or other circumstances which cause them to be considered "distressed securities." Distressed securities
frequently do not produce income while they are outstanding. The Fund may be required to bear certain extraordinary expenses in order
to protect and recover its investments in certain distressed securities. Therefore, to the extent the Fund seeks capital growth through
investment in such securities, the Fund's ability to achieve current income for its shareholders may be diminished. The Fund is also subject
to significant uncertainty as to when and in what manner and for what value the obligations evidenced by distressed securities will eventually
be satisfied (e.g., through a liquidation of the obligor's assets, an exchange offer or plan of reorganization involving the securities
or a payment of some amount in satisfaction of the obligation). In addition, even if an exchange offer is made or a plan of reorganization
is adopted with respect to distressed securities held by the Fund, there can be no assurance that the securities or other assets received
by the Fund in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may
have been anticipated when the investment was made. Moreover, any securities
2023
Semi-Annual Report
37
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
received by the Fund upon completion of an
exchange offer or plan of reorganization may be restricted as to resale. As a result of the Fund's participation in negotiations with
respect to any exchange offer or plan of reorganization with respect to an issuer of such securities, the Fund may be restricted from
disposing of distressed securities.
5. Investment Advisory
Agreement and Transactions with Related Parties
The Fund has entered into an Investment Advisory
Agreement (the "Advisory Agreement") with the Adviser under which the Adviser is responsible for the management of the Fund's portfolio
and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. The Advisory
Agreement provides that the Fund shall pay the Adviser a monthly fee for its services at an annual rate of 1.00% of the Fund's average
daily net assets plus the amount of borrowing for investment purposes ("Managed Assets").
The Fund has entered into an Administration
Agreement with the Adviser, and the Adviser has entered into a sub-administration agreement with U.S. Bancorp Fund Services, LLC, doing
business as U.S. Bank Global Fund Services ("Sub-Administrator"), on behalf of the Fund. The Adviser and the Sub-Administrator perform
administrative services necessary for the operation of the Fund, including maintaining certain books and records of the Fund and preparing
reports and other documents required by federal, state, and other applicable laws and regulations, and providing the Fund with administrative
office facilities. For these services, the Fund pays to the Adviser a monthly fee at an annual rate of 0.15% of the Fund's Managed Assets.
The Adviser is responsible for any fees due to the Sub-Administrator.
The Adviser has entered into a Sub-Advisory
Agreement with Oaktree Capital Management, L.P. ("Oaktree" or the "Sub-Adviser"). The Sub-Adviser is responsible for the management of
the securitized credit allocation with a focus on its investments in commercial mortgage-backed securities, residential mortgage-backed
securities, and related assets. In 2019, Brookfield Asset Management ("Brookfield") acquired a majority interest in Oaktree. As the Adviser,
PSG determines, and has oversight responsibility for, the Fund's securitized credit allocations managed by Oaktree.
Certain officers and/or trustees of the Fund
are officers and/or employees of the Adviser.
6. Purchases and Sales
of Investments
For the six months ended June 30, 2023, purchases
and sales of investments (including principal payups and paydowns), excluding short-term securities, reverse repurchase agreements and
U.S. government securities, were $197,758,913 and $401,904,888, respectively.
For the six months ended June 30, 2023, there
were no purchases and sales of long-term U.S. Government securities.
7. Borrowings
Credit facility: The Fund has established
a line of credit with BNP Paribas for investment purposes subject to the limitations of the 1940 Act for borrowings by registered investment
companies. The Fund pays interest in the amount of 0.90% plus the Overnight Bank Funding Rate ("OBFR") on the amount of eligible equity
securities outstanding and 1.00% plus the OBFR on the amount of other eligible securities outstanding. As of June 30, 2023, the Fund had
outstanding borrowings of $152,000,000. For the six months ended June 30, 2023, the Fund borrowed an average daily balance of $262,471,490
at a weighted average borrowing cost of 5.74% and the interest expense amounted to $7,484,444. As of June 30, 2023, the total value of
the collateral was $390,367,131.
Reverse Repurchase Agreements: The
Fund may enter into reverse repurchase agreements. In a reverse repurchase agreement, the Fund delivers a security in exchange for cash
to a financial institution, the counterparty,
Brookfield Public Securities
Group LLC
38
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
with a simultaneous agreement to repurchase
the same or substantially the same security at an agreed upon price and date. The Fund is entitled to receive principal and interest payments,
if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities
delivered plus accrued interest payments to be made by the Fund to counterparties are reflected as a liability on the Statement of Assets
and Liabilities. Interest payments made by the Fund to counterparties are recorded as a component of interest expense on the Statement
of Operations. The Fund will segregate assets determined to be liquid by the Adviser or will otherwise cover its obligations under reverse
repurchase agreements.
Reverse repurchase agreements involve the
risk that the market value of the securities retained in lieu of sale by the Fund may decline below the price of the securities the Fund
has sold but is obligated to repurchase. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy
or becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce the Fund's
obligation to repurchase the securities, and the Fund's use of the proceeds of the reverse repurchase agreement may effectively be restricted
pending such decision. Also, the Fund would bear the risk of loss to the extent that the proceeds of the reverse repurchase agreement
are less than the value of the securities subject to such agreements.
At June 30, 2023, the Fund the following
reverse repurchase agreements outstanding:
Counterparty |
|
Borrowing Rate |
|
Borrowing Date |
|
Maturity Date |
|
Amount Borrowed(1) |
|
Payable
For Reverse Repurchase Agreements |
|
JPMorgan Chase |
|
|
5.45 |
% |
|
06/14/23 |
|
08/15/23 |
|
$ |
8,563,000 |
|
|
$ |
8,585,038 |
|
|
RBC Capital Markets |
|
|
5.75 |
% |
|
04/13/23 |
|
07/13/23 |
|
|
1,767,000 |
|
|
|
1,789,296 |
|
|
Total |
|
|
|
|
|
|
|
$ |
10,330,000 |
|
|
$ |
10,374,334 |
|
|
(1) The average daily balance
of reverse repurchase agreements outstanding for the Fund during the six months ended June 30, 2023 was $14,676,666 at a weighted average
daily interest rate of 5.30% and the interest expense amounted to $386,043. As of June 30, 2023, the total value of the collateral was
$11,720,625.
The following is a summary of the reverse
repurchase agreements by the type of collateral and the remaining contractual maturity of the agreements:
|
|
Overnight and Continuous |
|
Up
to 30 Days |
|
30
to 90 Days |
|
Greater
Than 90 Days |
|
Total |
|
Corporate Credit |
|
$ |
— |
|
|
$ |
1,767,000 |
|
|
$ |
8,563,000 |
|
|
$ |
— |
|
|
$ |
10,330,000 |
|
|
Total |
|
$ |
— |
|
|
$ |
1,767,000 |
|
|
$ |
8,563,000 |
|
|
$ |
— |
|
|
$ |
10,330,000 |
|
|
The Fund has elected to not offset derivative
assets and liabilities or financial assets, including cash, that may be received or paid as part of collateral arrangements, even when
an enforceable master netting agreement is in place that provides the Fund, in the event of counterparty default, the right to liquidate
collateral and the right to offset a counterparty's rights and obligations.
2023 Semi-Annual Report
39
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
Below is the gross and net information about
instruments and transactions eligible for offset in the Statement of Assets and Liabilities as well as instruments and transactions subject
to an agreement similar to a master netting arrangement:
|
|
|
|
Collateral |
|
|
|
|
|
Gross Amounts
of Recognized Liabilities |
|
Gross Amounts Offset
in the Statement of Assets and Liabilities |
|
Net
Amounts Presented in the Statement of Assets and Liabilities |
|
Non-Cash Collateral (Pledged) Received* |
|
Collateral Pledged (Received)* |
|
Net Amount |
|
Reverse
Repurchase Agreements |
|
$ |
10,330,000 |
|
|
$ |
— |
|
|
$ |
10,330,000 |
|
|
$ |
(10,330,000 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
* Excess of collateral pledged to the individual
counterparty is not shown for financial statement purposes.
Reverse repurchase transactions are entered
into by the Fund under Master Repurchase Agreements ("MRA") which permit the Fund, under certain circumstances, including an event of
default of the Fund (such as bankruptcy or insolvency), to offset payables under the MRA with collateral held with the counterparty and
create one single net payment from the Fund. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund is considered an unsecured
creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed. In the event the buyer of securities
(i.e. the MRA counterparty) under a MRA files for bankruptcy or becomes insolvent, the Fund's use of the proceeds of the agreement may
be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Fund's obligation to repurchase
the securities.
8. Capital Shares
The Fund has 1,000,000,000 shares of $0.001
par value common shares authorized. Of the shares outstanding at June 30, 2023 for the Fund, the Adviser owns 100,051 shares. The Fund's
Board is authorized to classify and reclassify any unissued common shares. The common shares have no preemptive, conversion, exchange
or redemption rights. All common shares have equal voting, dividend, distribution and liquidation rights. The common shares are fully
paid and non-assessable. Common shareholders are entitled to one vote per share and all voting rights for the election of directors are
non-cumulative.
The Fund has entered into an "at-the-market"
offering program (the "ATM Program") which allows for an offering of up to $400,000,000 of common shares of stock, preferred shares or
subscription rights to purchase common shares or preferred shares. Under the ATM Program, the Fund may sell common shares on a daily basis
through Foreside Fund Services, LLC (the "Distributor") and UBS Securities LLC (the "Sub-Placement Agent") at prevailing market prices;
provided, however, that the common shares are not sold at a price below the current NAV, exclusive of commissions. In connection with
the ATM Program, the Fund entered into a distribution agreement dated April 23, 2021, which was amended and restated as of December 17,
2021 (the "Distribution Agreement"), with the Distributor, relating to the Fund's common shares offered. The Distributor has entered into
a sub-placement agent agreement dated April 23, 2021, which was amended and restated as of December 17, 2021 (the "Sub-Placement Agent
Agreement"), with the Sub-Placement Agent, relating to the Fund's common shares. In accordance with the terms of the Sub-Placement Agent
Agreement, the Fund may offer and sell up to 13,200,000 of common shares from time to time through the Sub-Placement Agent.
As of June 30, 2023, the Fund incurred offering
costs in connection with this offering of $473,875. These costs were recorded as a deferred charge and are being amortized as common shares
are sold.
Brookfield Public Securities
Group LLC
40
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
Amortization of offering costs (excluding
underwriter discounts and commissions, which is included in proceeds from shares sold in the Statements of Changes in Net Assets) of $19,174
and $207,550 related to the issuance of common shares were recorded to paid-in capital during the six months ended June 30, 2023 and the
year ended December 31, 2022, respectively.
The minimum price at which such common shares
may be sold may not be less than the current NAV per common share plus any commissions to be paid to the Distributor. For the six months
ended June 30, 2023, the Fund issued 145,617 shares under the ATM Program at an average price of $17.6945 per share.
The Fund issued 168,411 and 275,959 shares
through its Dividend Reinvestment Plan (the "Plan") during the six months ended June 30, 2023 and year ended December 31, 2022, respectively.
The Board has approved a share repurchase
plan. Under the current share repurchase plan, as of June 30, 2023, the Fund may purchase in the open market up to 10% of its outstanding
common shares. The current share repurchase plan will remain in effect until December 5, 2023. The amount and timing of the repurchases
will be at the discretion of the Fund's management, subject to market conditions and investment considerations. There is no assurance
that the Fund will purchase shares at any particular discount level or in any particular amounts. The Board authorized the share repurchase
program as a result of its review of the options available to enhance shareholder value and reduce any potential discount between the
market price of the Fund's shares and the net asset value per share. During the six months ended June 30, 2023 and the year ended December
31, 2022, the Fund did not repurchase any shares through the repurchase plan.
9. Federal Income Tax
Information
The Fund intends to continue to meet the
requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially
all of its taxable income to its shareholders. Therefore, no federal income or excise tax provision is required. The Fund may incur an
excise tax to the extent it has not distributed all of its taxable income on a calendar year basis.
GAAP provides guidance for how uncertain
tax positions should be recognized, measured, presented and disclosed in the financial statements. An evaluation of tax positions taken
in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained
by the taxing authority is required. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as
a tax expense in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund receivable;
a reduction of a deferred tax asset; an increase in a deferred tax liability; or a combination thereof. As of June 30, 2023, the Fund
has determined that there are no uncertain tax positions or tax liabilities required to be accrued.
The Fund has reviewed all taxable years that
are open for examination (i.e., not barred by the applicable statute of limitations) by taxing authorities of all major jurisdictions,
including the Internal Revenue Service. As of December 31, 2022, open taxable years consisted of the taxable years ended December 31,
2019 through December 31, 2022. No examination of the Fund's tax returns is currently in progress.
Income and capital gain distributions are
determined in accordance with federal income tax regulations, which may differ from GAAP.
The federal income tax information referenced
below is as of the Fund's most recently completed tax year-end of December 31, 2022.
2023 Semi-Annual Report
41
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
The tax character of the distributions paid
for the year ended December 31, 2022 were as follows:
Ordinary income |
|
$ |
39,683,831 |
|
|
Return of capital |
|
|
88,160,995 |
|
|
Total |
|
$ |
127,844,826 |
|
|
At December 31, 2022, the Fund's most recently
completed tax year-end, the components of net assets (excluding paid-in capital) on a tax basis were as follows:
Capital loss carryforwards(1)
|
|
$ |
(118,348,297
|
) |
|
Late year ordinary losses |
|
|
(12,312 |
) |
|
Other accumulated losses |
|
|
(299,092 |
) |
|
Tax basis unrealized depreciation on investments
and foreign currency |
|
|
(105,471,620
|
) |
|
Total tax basis net accumulated losses
|
|
$ |
(224,131,321
|
) |
|
(1) To the extent that future
capital gains are offset by capital loss carryforwards, such gains will not be distributed.
Federal Income Tax Basis: The federal
income tax basis of the Fund's investments at December 31, 2022 was as follows:
Cost
of Investments |
|
Gross Unrealized Appreciation
|
|
Gross Unrealized Depreciation
|
|
Net Unrealized Depreciation
|
|
$ |
1,271,779,874
|
|
|
$ |
37,113,970 |
|
|
$ |
(142,585,590
|
) |
|
$ |
(105,471,620
|
) |
|
The Fund deferred, on a tax basis, late
year ordinary losses of $12,312. As of December 31, 2022, the Fund's capital loss carryforwards were as follows:
Capital Loss Carryforwards:
|
|
Expires: |
|
Limitation: |
|
$95,731,247
(Short-Term) |
|
N/A |
|
Unlimited |
|
$21,089,069
(Long-Term) |
|
N/A |
|
Unlimited |
|
$1,527,981 |
|
N/A |
|
12/31/2023 |
|
Capital Account Reclassifications:
Because federal income tax regulations differ in certain respects from GAAP, income and capital gain distributions, if any, determined
in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes.
These differences are primarily due to differing treatments for paydown losses, Section 988 currency, sales of PFICs, partnership income/expense
and return of capital. Permanent book and tax differences, if any, will result in reclassifications to paid-in capital or to undistributed
capital gains. These reclassifications have no effect on net assets or NAV per share. Any undistributed net income and realized gain remaining
at fiscal year end is distributed in the following year.
10. Commitments and Contingencies
Under the Fund's organizational documents,
its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In
addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for indemnification.
The Fund's maximum exposure under these arrangements is unknown, since this would involve the resolution of certain claims, as well as
future claims that may be made, against the Fund. Thus, an estimate of the financial impact, if any, of these arrangements cannot be made
at this time. However, based on experience, the Fund expects the risk of loss due to these warranties and indemnities to be unlikely.
Brookfield Public Securities
Group LLC
42
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Notes to Financial
Statements (Unaudited) (continued)
June 30, 2023
11. Subsequent Events
GAAP requires recognition in the financial
statements of the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statement
of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading,
the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate
cannot be made.
Distributions: The Fund's Board declared
the following monthly distributions:
Distribution
Per Share |
|
Record Date |
|
Payable Date |
|
$ |
0.1990 |
|
|
July 12, 2023 |
|
July 26, 2023 |
|
$ |
0.1990 |
|
|
August 9, 2023 |
|
August 28, 2023 |
|
Management has evaluated subsequent events
in the preparation of the Fund's financial statements and has determined that there are no additional events that require recognition
or disclosure in the financial statements.
2023 Semi-Annual Report
43
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Compliance Certification
(Unaudited)
On May 25, 2023, the Fund submitted a CEO
annual certification to the New York Stock Exchange ("NYSE") on which the Fund's principal executive officer certified that he was not
aware, as of that date, of any violation by the Fund of the NYSE's Corporate Governance listing standards. In addition, as required by
Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Fund's principal executive and principal financial officers have
made semi-annual certifications, included in filings with the SEC on Form N-CSR relating to, among other things, the Fund's disclosure
controls and procedures and internal control over financial reporting, as applicable.
Brookfield Public Securities
Group LLC
44
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Proxy Results (Unaudited)
The shareholders of the Brookfield Real Assets
Income Fund Inc. voted on the following proposals at a shareholder meeting held on Friday, May 19, 2023, at 8:30 a.m., Eastern Time. The
description of the proposal and number of shares voted are as follows:
|
|
Shares Voted
For |
|
Shares Voted
Against |
|
Shares Voted
Abstain |
|
1.
To elect to the Fund's Board of Directors David W. Levi, Class I Interested Director Nominee |
|
|
35,972,099 |
|
|
|
1,001,931 |
|
|
|
492,037 |
|
|
2023 Semi-Annual Report
45
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Board Considerations
Relating to the Investment Advisory and Sub-Advisory Agreements (Unaudited)
The Board of Directors (the "Board," the members
of which are referred to as "Directors") of Brookfield Real Assets Income Fund Inc. (the "Fund"), including the Directors who are not
"interested persons," as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the "1940 Act") (the "Independent
Directors"), of the Fund, considered and approved the continuation of the Investment Advisory Agreement (the "Advisory Agreement") between
the Fund and Brookfield Public Securities Group LLC (the "Adviser" or "Brookfield"), and the Sub-Advisory Agreement between Brookfield
and Oaktree Fund Advisors, LLC (the "Sub-Adviser" or "Oaktree") with respect to the Fund (the "Sub-Advisory Agreement," and together with
the Advisory Agreement, the "Agreements"), each for a successive one-year period at a telephonic meeting held on May 18-19, 2023 (the
"Meeting").1
In accordance with Section 15(c) of the 1940
Act, the Board requested, and Brookfield and Oaktree provided, materials relating to the Board's consideration of whether to approve the
continuation of the Agreement. These materials included, among other things: (a) a summary of the services provided to the Fund by Brookfield
and Oaktree; (b) information independently compiled and prepared by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent
third-party provider of mutual fund data, on fees and expenses of the Fund, and the investment performance of the Fund as compared with
a peer group and/or peer universe of funds, as applicable, including supplemental data independently prepared by Brookfield; (c) information
on the profitability of Brookfield; (d) information relating to economies of scale; (e) information about Brookfield's general compliance
policies and procedures and the services that it provides in connection with its oversight of Oaktree; (f) information on Brookfield's
and Oaktree's risk management processes; (g) information regarding brokerage and soft dollar practices; and (h) information about the
key personnel of Brookfield and Oaktree who are involved in the investment management, administration, compliance and risk management
activities with respect to the Fund, as well as current and projected staffing levels and compensation practices.
In determining whether to approve the continuation
of the Agreement, the Board, including the Independent Directors, considered at the Meeting, and from time to time, as appropriate, factors
that it deemed relevant. The following discusses the primary factors relevant to the Board's decision.
THE NATURE, EXTENT AND QUALITY OF
THE SERVICES TO BE PROVIDED BY THE ADVISER AND SUB-ADVISER. The Board, including the Independent Directors, considered the nature,
extent and quality of services provided by Brookfield. The Board noted that such services include acting as investment manager and adviser
to the Fund, managing the daily business affairs of the Fund, and obtaining and evaluating economic, statistical and financial information
to formulate and implement investment policies. Additionally, the Board observed that Brookfield provides office space, bookkeeping, accounting,
legal and compliance services, clerical and administrative services and has authorized its officers and employees, if elected, to serve
as officers or Trustees of the Fund without compensation. The Board also noted that Brookfield is also responsible for the coordination
and oversight of the Fund's third-party service providers, including Oaktree. In addition to the quality of the advisory services provided
by Brookfield, the Board considered the quality of the administrative and other services provided by Brookfield to the Fund pursuant to
the Advisory Agreement.
In connection with the services provided by
Brookfield, the Board analyzed the structure and duties of Brookfield's fund administration and accounting, operations and its legal and
compliance departments to determine whether they are adequate to meet the needs of the Fund. The Board also considered the personnel responsible
for providing advisory services to the Fund and other key personnel of Brookfield, in addition to the current and projected staffing levels
and compensation practices. The Board concluded, based on the Trustees' experience and interaction with
1 The Investment Subadvisory
Agreement (the "Oaktree Subadvisory Agreement") between Brookfield and Oaktree was amended and restated on January 1, 2022. The initial
Oaktree Subadvisory Agreement approved by RA's Board at a Special Telephonic Meeting held on October 22, 2020 was between Brookfield and
Oaktree Capital Management, L.P. ("OCM"). The current Oaktree Subadvisory Agreement will continue in effect for successive annual periods
so long as the continuation is approved annually by the Board (or by vote of a '40 Act majority of stockholders). The Oaktree Subadvisory
Agreement was presented to the Board for its first annual approval during the May 19-20, 2022 Board meeting. A discussion regarding the
basis of the Board's approval of the Oaktree Sub-Advisory Agreement is available in the proxy statement on Schedule 14A, dated November
4, 2020.
Brookfield Public Securities
Group LLC
46
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Board Considerations
Relating to the Investment Advisory and Sub-Advisory Agreements (Unaudited) (continued)
Brookfield, that: (i) Brookfield would continue
to be able to retain high quality personnel; (ii) Brookfield has exhibited a high level of diligence and attention to detail in carrying
out its advisory and other responsibilities under the Advisory Agreement; (iii) Brookfield has been responsive to requests of the Board;
and (iv) Brookfield has kept the Board apprised of developments relating to the Fund and the industry in general.
The Board's conclusion was based, in part,
upon the following: (i) a comprehensive description of the investment advisory and other services provided to the Fund; (ii) a list of
personnel who furnish such services and a description of their duties and qualifications; (iii) performance data with respect to the Fund,
including comparable investment companies and accounts managed by Brookfield; (iv) standardized industry performance data with respect
to comparable investment companies and the performance of appropriate recognized indices; (v) recent financial statements of Brookfield;
(vi) Brookfield's culture of compliance and its commitment to compliance generally, as well as its risk management processes and attention
to regulatory matters; and (vii) Brookfield's reputation and its experience serving as an investment adviser and the experience of the
teams of portfolio managers that manage the Fund, as well as its experience serving as an investment adviser to other investment fund
and institutional clients. The Board also reviewed Brookfield's compliance and regulatory history and noted that there were no material
regulatory or compliance issues that would potentially impact Brookfield from effectively serving as the investment adviser to the Fund.
The Board concluded that the nature, extent and quality of the overall services provided under the Advisory Agreement were reasonable
and appropriate in relation to the management fees and that the quality of services continues to be high.
The Board also considered the nature, extent
and quality of subadvisory services provided by Oaktree to RA. The Board observed the Sub-Adviser's responsibilities in relation to the
Fund, including the provision of investment advisory services to the Fund, compliance with the Fund's policies and investment objective,
review of brokerage matters including with respect to trade allocation and best execution, oversight of general fund compliance with federal
and state laws, and the implementation of Board directives as they relate to the Fund. The Board also considered the Sub-Adviser's risk
assessment and monitoring processes. The Board considered the Sub-Adviser's current level of staffing and its overall resources, which
are needed to attract and retain highly qualified investment professionals. The Board reviewed the Sub-Adviser's history and investment
experience, as well as information regarding the investment personnel who provide services to the Fund. The Board also evaluated the expertise
and performance of the personnel who oversee compliance with the Fund's investment restrictions and other requirements. Additionally,
the Board considered certain information in relation to the Sub-Adviser's portfolio managers. The Board also recognized the Sub-Adviser's
reputation and experience in serving as an investment adviser to other fund and accounts, and considered its investment processes and
philosophy. The Board took into account that the Sub-Adviser's responsibilities include the development and maintenance of investment
programs for a sleeve of the Fund that is consistent with the Fund's investment objective, the selection of investment securities and
the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to
performance of these services. The Board also reviewed Oaktree's compliance and regulatory history and noted that there were no material
regulatory or compliance issues that would potentially impact Oaktree from effectively serving as the investment subadviser to the Fund.
Based on its consideration and review of the foregoing information, the Board concluded that the nature, extent and quality of the overall
services provided by the Sub-Adviser were satisfactory and that it was reasonable to conclude that the Sub-Adviser would continue to provide
high quality investment services to the Fund.
THE PERFORMANCE OF THE FUND, THE ADVISER,
AND THE SUB-ADVISER. The Board, including the Independent Directors, also considered the investment performance of the Adviser
and the Sub-Adviser. The Board noted that it regularly reviews the performance of the Fund throughout the year. The Board further noted
that, while it monitors performance of the Fund closely, it generally attaches more importance to performance over relatively long periods
of time, typically three to five years. The Board considered the investment performance of the Fund in view of its importance to shareholders.
In connection with this review, the Board received information regarding the investment performance of the Fund as compared to a group
of funds with investment classifications and/or objectives comparable to those of the Fund ("Peer Universe") and to an appropriate index
or combination of indices
2023 Semi-Annual Report
47
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Board Considerations
Relating to the Investment Advisory and Sub-Advisory Agreements (Unaudited) (continued)
identified by Broadridge (the "Broadridge
Index"), as well as a focused peer group identified by Brookfield ("Peer Group") and the Fund's benchmark index (the "Benchmark Index").
In addition, the Board considered supplemental performance information that provided strategy level performance returns over longer periods
as compared to the Fund's performance information since inception. The Board was provided with a description of the methodology used by
Broadridge to select the funds included in the Peer Universe. At the Meeting, management also discussed the methodology used by Brookfield
to select the funds included in the Peer Group. The performance information was presented for the periods ended March 31, 2023. Class
I performance relative to the median of the Fund's Peer Universe and Peer Group is described below, and if the Fund's performance ranked
below the median for its Peer Universe, the specific quintile rankings are also noted below with respect to the relevant periods of underperformance.
Brookfield Real Assets Income Fund
Inc. The Board noted that the Fund's performance was below the median of its Peer Universe for the one-year period (third
quintile) and above the median of its Peer Universe for the three- and five-year periods (first quintile and second quintile, respectively).
The Board further noted that the Fund underperformed its Broadridge Index for the one- and five-year periods, as well as the since inception
period, and outperformed its Broadridge Index for the three-year period. In addition, the Board noted that the Fund's performance was
below the median of its Peer Group for the quarter ended March 31, 2023, as well as for the one-year period, and above the median of its
Peer Group for all other periods. The Board further noted that the Fund outperformed its Benchmark Index for the quarter ended March 31,
2023, and for all other periods, except for the one-year period.
THE COST OF THE ADVISORY SERVICES,
AND THE PROFITABILITY TO THE ADVISER AND ITS AFFILIATES FROM THEIR RELATIONSHIP WITH THE FUND. The Board also received information
regarding the management fees to be paid by the Fund to Brookfield pursuant to the Advisory Agreement and the fees paid by Brookfield
to Oaktree pursuant to the Sub-Advisory Agreement. The Board examined this information in order to determine the reasonableness of the
fees in light of the nature and quality of services to be provided and any potential additional benefits to be received by Brookfield,
Oaktree or their affiliates in connection with providing such services to the Fund.
To assist in analyzing the reasonableness
of the management fees for the Fund, the Board received reports independently prepared by Broadridge. The reports showed comparative fee
and expense information for the Fund's expense group ("Expense Group") and expense universe ("Expense Universe"), including rankings within
each category, as determined by Broadridge. Brookfield identified the funds eligible for inclusion in the Expense Group. In considering
the reasonableness of the management fees to be paid by the Fund to Brookfield, the Board was presented with a number of expense comparisons,
including: (i) contractual and actual management fees; and (ii) actual total operating expenses. The Board acknowledged that it was difficult
to make precise comparisons with other fund in the Expense Group and Expense Universe since the exact nature of services provided under
the various fund agreement is often not apparent. The Board noted, however, that the comparative fee information provided by Broadridge
as a whole was useful in assessing whether Brookfield was providing services at a cost that was competitive with other, similar funds.
In reviewing the expense rankings, the Board noted that a fund with fees and expenses that were below the median had fees and expenses
that were less than the median fees and expenses of its peer group, while a fund with fees and expenses that were above the median had
fees and expenses that were higher than the median fees and expenses of its peer group. The fund with the lowest expenses is ranked first
and the fund with the highest expenses is ranked last within the applicable expense grouping.
Brookfield Real Assets Income Fund
Inc. The Board noted that the Fund's contractual management fees at common asset levels ($875 million) were above the median
of its Expense Group (in the fifth quintile). The Board also noted that the Fund's actual total expenses for common and leveraged assets
were above the median of its Expense Group (ranked 8/9) and Expense Universe (ranked 31/37). The Board further noted that the Fund's actual
total expenses for only common assets were above the median of its Expense Group (ranked 8/9) and Expense Universe (ranked 33/37). The
Board noted that the Fund's actual total expenses excluding investment related expenses and taxes for common and leveraged assets were
above the median of its Expense Group (ranked 8/9) and Expense Universe (ranked 31/37). The Board then noted that the Fund's actual total
expenses excluding
Brookfield Public Securities
Group LLC
48
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Board Considerations
Relating to the Investment Advisory and Sub-Advisory Agreements (Unaudited) (continued)
investment related expenses and taxes for
only common assets were above the median of its Expense Group (ranked 8/9) and Expense Universe (ranked 33/37). The Board noted that the
Fund's actual management fees for common and leveraged assets were above the median of its Expense Group (ranked 8/9) and Expense Universe
(ranked 33/37). The Board noted that the Fund's actual management fees for only common assets were above the median of its Expense Group
(ranked 8/9) and Expense Universe (ranked 32/37). The Board then noted that the Fund's actual non-management expenses for common and leveraged
assets were below the median of its Expense Group (ranked 5/9) and Expense Universe (ranked 18/37). The Board also noted that the Fund's
actual non-management expenses for only common assets were below the median of its Expense Group (ranked 5/9) and Expense Universe (ranked
18/37). The Board noted that the Fund's investment related expenses and taxes for common and leveraged assets were below the median of
its Expense Group (ranked 7/9) and Expense Universe (ranked 28/37). The Board then noted that the Fund's investment related expenses and
taxes for only common assets were below the median of its Expense Group (ranked 6/9) and Expense Universe (ranked 25/37).
The Board was also asked to consider the management
fees received by Brookfield with respect to other funds and accounts with similar investment strategies to the Fund, which include institutional
and separately managed accounts. In comparing these fees, the Board considered certain differences between these accounts and the Fund,
as applicable, including the broader and more extensive scope of services provided to the Fund in comparison to institutional or separately
managed accounts; the higher demands placed on Brookfield's investment personnel and trading infrastructure as a result of the daily cash
in-flows and out-flows of the Fund; the greater entrepreneurial risk in managing the Fund; and the impact on Brookfield and expenses associated
with the more extensive regulatory regime to which the Fund are subject in comparison to institutional or separately managed accounts.
The Board also considered Brookfield's profitability
and the benefits Brookfield and its affiliates received from their relationship with the Fund. The Board received a memorandum and reviewed
financial information relating to Brookfield's financial condition and profitability with respect to the services it provided to the Fund
and considered how profit margins could affect Brookfield's ability to attract and retain high quality investment professionals and other
key personnel. In this regard, the Board reviewed the Fund's profitability analysis addressing the overall profitability of Brookfield
in connection with its management of the Brookfield Fund Complex.1 In analyzing Brookfield's profitability, particular
attention was given to the allocation of the direct and indirect costs of the resources and expenses in managing the Fund, as well as
the non-Fund and non-advisory business activities across Brookfield's key business lines. The Board further noted that the methodology
followed in allocating costs to the Fund appeared reasonable, while also recognizing that allocation methodologies are inherently subjective.
The Board concluded that the expected profitability to the Adviser from the Fund was reasonable.
With respect to Oaktree in relation to RA,
the Board reviewed Oaktree's financial information and considered whether Oaktree had the financial resources necessary to attract and
retain high quality investment management personnel and to provide a high quality of services. Additionally, the Board considered the
reasonableness of the management fee payable by the Adviser to Oaktree under the Sub-Advisory Agreement and took into account that the
fee was consistent with management fees that Oaktree charged to comparable funds. In considering the expected profitability to Oaktree
in connection with its relationship to the Fund, the Board noted that the fees under the Sub-Advisory Agreement are paid by Brookfield
out of the management fees that it receives under the Advisory Agreement. As a result, the Board noted that Fund stockholders are not
directly impacted by those fees. In considering the reasonableness of the fees payable by Brookfield to Oaktree, the Board noted that,
because Oaktree is an affiliate of Brookfield, such profitability might be directly or indirectly shared by the Adviser. For these reasons,
the Board concluded that the profitability to Oaktree from its relationship with the Fund was not considered a material factor in its
consideration of the renewal of the Sub-Advisory Agreement.
1 The Brookfield Fund Complex
is comprised of Brookfield Investment Fund (6 series of underlying portfolios), Brookfield Real Assets Income Fund, Inc. (NYSE: RA), Center
Coast Brookfield MLP & Energy Infrastructure Fund (NYSE: CEN) and Oaktree Diversified Income Fund Inc. (the "Brookfield Fund Complex").
2023 Semi-Annual Report
49
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Board Considerations
Relating to the Investment Advisory and Sub-Advisory Agreements (Unaudited) (continued)
The Board concluded that Brookfield and Oaktree
had the financial resources necessary to perform their obligations under the Agreements and to continue to provide the Fund with the high-quality
services provided in the past. The Board also concluded that the management fees and subadvisory fees were reasonable in light of the
factors discussed above.
THE EXTENT TO WHICH ECONOMIES OF SCALE
WILL BE REALIZED AS THE FUND GROWS AND WHETHER FEE LEVELS REFLECT THOSE ECONOMIES OF SCALE. The Board, including the Independent
Directors, considered whether shareholders would benefit from economies of scale and whether there was potential for future realization
of economies with respect to the Fund. The Board considered that as a result of being part of the Brookfield Fund Complex, the constituent
funds, including the Fund, share common resources and may share certain expenses, and if the size of the complex increases, the Fund could
incur lower expenses than it otherwise would achieve as a stand-alone entity. The Board did not review specific information regarding
whether there have been economies of scale with respect to Oaktree's management of RA because it did not consider this as a relevant and
material factor at the subadviser level. Rather, the Board considered information regarding economies of scale in the context of the renewal
of the Advisory Agreement and concluded that the management fee structure, including the amount of management fees retained by Brookfield,
was reasonable in light of the factors discussed above. The Board concluded that the management fee structure was reasonable in light
of the factors discussed above.
OTHER FACTORS. In consideration
of the Advisory Agreement, the Board also received information regarding Brookfield's brokerage and soft dollar practices. The Board considered
that Brookfield is responsible for decisions to buy and sell securities for the Fund, selection of broker-dealers and negotiation of commission
rates. The Board noted that it receives reports from Brookfield that include information on brokerage commissions and execution throughout
the year. The Board also considered the benefits Brookfield derives from its soft dollar arrangements, including arrangements under which
brokers provide brokerage and/or research services to Brookfield in return for allocating brokerage. The Board then considered other benefits
that may be realized by Brookfield and its affiliates, including Oaktree, from their relationship with the Fund. Among them, the Board
recognized the opportunity to provide advisory services to additional funds and accounts and reputational benefits. The Board concluded
that the benefits that may accrue to Brookfield and its affiliates by virtue of the advisory relationship to the Fund were fair and reasonable
in light of the costs of providing investment advisory services to the Fund and the ongoing commitment of Brookfield to the Fund.
Brookfield Public Securities
Group LLC
50
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Dividend Reinvestment
Plan (Unaudited)
A Dividend Reinvestment Plan (the "Plan")
is available to shareholders of the Fund pursuant to which they may elect to have all distributions of dividends and capital gains automatically
reinvested by American Stock Transfer & Trust Company (the "Plan Agent") in additional Fund shares. Shareholders who do not participate
in the Plan will receive all distributions in cash paid by check mailed directly to the shareholder of record (or if the shares are held
in street or other nominee name, then to the nominee) by the Fund's Custodian, as Dividend Disbursing Agent.
The Plan Agent serves as agent for the shareholders
in administering the Plan. After the Fund declares a dividend or determines to make a capital gain distribution, payable in cash, if (1)
the market price is lower than the net asset value, the participants in the Plan will receive the equivalent in Fund shares valued at
the market price determined as of the time of purchase (generally, the payment date of the dividend or distribution); or if (2) the market
price of the shares on the payment date of the dividend or distribution is equal to or exceeds their net asset value, participants will
be issued Fund shares at the higher of net asset value or 95% of the market price. This discount reflects savings in underwriting and
other costs that the Fund otherwise will be required to incur to raise additional capital. If the net asset value exceeds the market price
of the Fund shares on the payment date or the Fund declares a dividend or other distribution payable only in cash (i.e., if the Board
of Directors precludes reinvestment in Fund shares for that purpose), the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Fund shares in the open market, on the New York Stock Exchange or elsewhere, for the participants' accounts.
If, before the Plan Agent has completed its purchases, the market price exceeds the net asset value of the Fund's shares, the average
per share purchase price paid by the Plan Agent may exceed the net asset value of the Fund's shares, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by the Fund. The Fund will not issue shares under the Plan
below net asset value.
Participants in the Plan may withdraw from
the Plan upon written notice to the Plan Agent. When a participant withdraws from the Plan or upon termination of the Plan by the Fund,
certificates for whole shares credited to his or her account under the Plan will be issued and a cash payment will be made for any fraction
of a share credited to such account.
There is no charge to participants for reinvesting
dividends or capital gain distributions, except for certain brokerage commissions, as described below. The Plan Agent's fees for handling
the reinvestment of dividends and distributions are paid by the Fund. There are no brokerage commissions charged with respect to shares
issued directly by the Fund. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the
Plan Agent's open market purchases in connection with the reinvestment of dividends and distributions.
The automatic reinvestment of dividends and
distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.
A brochure describing the Plan is available
from the Plan Agent, by calling 1-800-937-5449.
If you wish to participate in the Plan and
your shares are held in your name, you may simply complete and mail the enrollment form in the brochure. If your shares are held in the
name of your brokerage firm, bank or other nominee, you should ask them whether or how you can participate in the Plan. Shareholders whose
shares are held in the name of a brokerage firm, bank or other nominee and are participating in the Plan may not be able to continue participating
in the Plan if they transfer their shares to a different brokerage firm, bank or other nominee, since such shareholders may participate
only if permitted by the brokerage firm, bank or other nominee to which their shares are transferred.
2023 Semi-Annual Report
51
BROOKFIELD REAL ASSETS
INCOME FUND INC.
Joint Notice of Privacy
Policy (Unaudited)
Brookfield Public Securities Group LLC ("PSG"),
on its own behalf and on behalf of the funds managed by PSG and its affiliates, recognizes and appreciates the importance of respecting
the privacy of our clients and shareholders. Our relationships are based on integrity and trust and we maintain high standards to safeguard
your non-public personal information ("Personal Information") at all times. This privacy policy ("Policy") describes the types of Personal
Information we collect about you, the steps we take to safeguard that information and the circumstances in which it may be disclosed.
If you hold shares of a Fund through a financial
intermediary, such as a broker, investment adviser, bank or trust company, the privacy policy of your financial intermediary will also
govern how your Personal Information will be shared with other parties.
WHAT INFORMATION DO WE COLLECT?
We collect the following Personal Information
about you:
• Information we receive from you in
applications or other forms, correspondence or conversations, including but not limited to name, address, phone number, social security
number, assets, income and date of birth.
• Information about transactions with
us, our affiliates, or others, including but not limited to account number, balance and payment history, parties to transactions, cost
basis information, and other financial information.
• Information we may receive from our
due diligence, such as your creditworthiness and your credit history.
WHAT IS OUR PRIVACY POLICY?
We may share your Personal Information with
our affiliates in order to provide products or services to you or to support our business needs. We will not disclose your Personal Information
to nonaffiliated third parties unless 1) we have received proper consent from you; 2) we are legally permitted to do so; or 3) we reasonably
believe, in good faith, that we are legally required to do so. For example, we may disclose your Personal Information with the following
in order to assist us with various aspects of conducting our business, to comply with laws or industry regulations, and/or to effect any
transaction on your behalf;
• Unaffiliated service providers (e.g.
transfer agents, securities broker-dealers, administrators, investment advisors or other firms that assist us in maintaining and supporting
financial products and services provided to you);
• Government agencies, other regulatory
bodies and law enforcement officials (e.g. for reporting suspicious transactions);
• Other organizations, with your consent
or as directed by you; and
• Other organizations, as permitted
or required by law (e.g. for fraud protection)
When we share your Personal Information, the
information is made available for limited purposes and under controlled circumstances designed to protect your privacy. We require third
parties to comply with our standards for security and confidentiality.
HOW DO WE PROTECT CLIENT INFORMATION?
We restrict access to your Personal Information
to those persons who require such information to assist us with providing products or services to you. It is our practice to maintain
and monitor physical, electronic, and procedural safeguards that comply with federal standards to guard client nonpublic personal information.
We regularly train our employees on privacy and information security and on their obligations to protect client information.
CONTACT INFORMATION
For questions concerning our Privacy Policy,
please contact our client services representative at 1-855-777-8001.
Brookfield Public Securities
Group LLC
52
Investment Adviser
Brookfield Public Securities
Group LLC
Brookfield Place
250 Vesey Street, 15th Floor
New York, New York 10281-1023
www.brookfield.com
Administrator
Brookfield Public Securities
Group LLC
Brookfield Place
250 Vesey Street, 15th Floor
New York, New York 10281-1023
www.brookfield.com
Please direct your inquiries
to:
Investor Relations
Phone: 1-855-777-8001
E-mail: publicsecurities.enquiries@brookfield.com
Sub-Adviser
Oaktree Fund Advisors, LLC
333 South Grand Avenue, 28th
Floor
Los Angeles, California 90071
Transfer Agent
Shareholder inquiries relating
to distributions, address changes and shareholder account information should be directed to the Fund's transfer agent:
American Stock Transfer &
Trust Company
6201 15th Avenue
Brooklyn, New York 11219
1-800-937-5449
Fund Accounting Agent
U.S. Bancorp Fund Services,
LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
Sub-Administrator
U.S. Bancorp Fund Services,
LLC
1201 South Alma School Road,
Suite 3000
Mesa, Arizona 85210
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, Illinois 60606
Legal Counsel
Paul Hastings LLP
200 Park Avenue
New York, New York 10166
Custodian
U.S. Bank National Association
1555 North RiverCenter Drive,
Suite 302
Milwaukee, Wisconsin 53212
Filing Administrator
Quasar Distributors, LLC
111 East Kilbourn Avenue,
Suite 2200
Milwaukee, Wisconsin 53202
Directors of the Fund
Edward A. Kuczmarski Chair
of Board of Directors
William H. Wright II Chair
of Audit Committee
Heather S. Goldman Chair of
Nominating and Compensation Committee
Stuart A. McFarland Director
David W. Levi Director (Interested)
Officers of the Fund
Brian F. Hurley President
Casey P. Tushaus Treasurer
Craig A. Ruckman Secretary
Adam R. Sachs Chief Compliance
Officer
Mohamed S. Rasul Assistant
Treasurer
The Fund files its complete schedule of portfolio
holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund's Forms N-PORT are available on the
SEC's website at www.sec.gov.
You may obtain a description of the Fund's
proxy voting policies and procedures, information regarding how the Fund voted proxies relating to portfolio securities during the most
recent 12-month period ended June 30, without charge, upon request by calling 1-855-777-8001, or go to the SEC's website at www.sec.gov.
Brookfield Public Securities
Group LLC
Brookfield Place
250 Vesey Street, 15th Floor
New York, New York 10281-1023
1-855-777-8001
www.brookfield.com