PUBLIC SECURITIES
Seeking Income & Potential Growth from Real Asset Investing
JUNE 17, 2021
WATCH VIDEO REPLAY
Watch the replay of Seeking Income and Potential Growth from Real Asset Investing, featuring Brookfield Real Asset Income Fund's Portfolio Manager, Gaal Surugeon, and part of AICA's (Active Investment Company Alliance) Income Spotlight conference.
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 855.777.8001 or by viewing Brookfield Real Asset Income Fund's page on our website. Market price is the price at which shares can be brought or sold on the exchanges during trading hours, while the net asset value (NAV) represents the value of each share's portion of the fund's underlying assets and cash at the end of the trading day.
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. The use of leverage may magnify the impact of changes in net asset value on the holders of shares of common stock. In addition, the cost of leverage could exceed the return on the securities acquired with the proceeds of the leverage, thereby diminishing returns to the holders of the common stock.
Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are typically not redeemable to the Fund. Instead, investors looking to sell their shares must do so on the open market through a stock exchange. Net asset value ("NAV") is total assets less total liabilities divided by the number of shares outstanding.
At the time of sale, your shares may have a market price that is above or below NAV. Shares of closed-end funds frequently trade at a market price that is below their NAV. There is no assurance that the Fund will achieve its investment objective.
Concern about the spread of a novel coronavirus known as "COVID-19" has resulted in severe disruptions to global financial markets, border closings, restrictions on travel and gatherings of any measurable amount of people, "shelter in place" orders (or the equivalent) for states, cities, metropolitan areas and countries, expedited and enhanced health screenings, quarantines, cancellations, business and school closings, disruptions to employment and supply chains, reduced productivity, severely impacted customer and client activity in virtually all markets and sectors, and a virtual cessation of normal economic activity. These events contributed to severe market volatility which adversely impacted the Fund's net asset value and market price and may result in reduced liquidity and heightened volatility in the performance of the Fund's portfolio investments.
The impact of COVID-19, and other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty, and the prolonged continuation or further deterioration of the current U.S. and global economic downturn could adversely impact the Fund's portfolio. It is difficult to predict how long the financial markets and economic activity will continue to be impacted by these events and the Fund cannot predict the effects of these or similar events in the future on the U.S. economy and securities markets, which may exacerbate the risks that apply to the Fund.
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.
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PUBLIC SECURITIES
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 stockholders 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).
Fund allocations are subject to change and should not be considered recommendations to buy or sell any security.
The statements and opinions expressed are those of the presenter(s). Any discussion of investments and investment strategies represents the presenter's views as of the date created and are subject to change without notice. The opinions expressed are for general information only and are not intended to provide specific advice or recommendations for any individual.
Stocks are generally perceived to have more financial risk than bonds in that bond holders have a claim on firm operations or assets that is senior to that of equity holders. In addition, stock prices are generally more volatile than bond prices. Equities, bonds, and other asset classes have different risk profiles, which should be considered when investing.
Important Information: Peer Comparisons
Information as of May 31, 2021, unless otherwise noted. All information shown is subject to change and is based on information readily available for the funds as of the date shown. The information here should not be used as the sole basis for making an investment decision. Readers should independently evaluate their investment options prior to making an investment decision, including reviewing a fund's prospectus.
Brookfield Real Assets | Aberdeen Standard | Nuveen Real Asset | Tortoise Energy | |
Income Fund (NYSE: RA) | Global Infrastructure | Income and Growth | Infrastructure Corp. | |
Income Fund (NYSE: | Fund (NYSE: JRI) | (NYSE: TYG) | ||
ASGI) | ||||
Inception Date: | 12/2/16 | 7/29/20 | 4/25/12 | 2/24/04 |
Investment Objective: | Seeks to provide a high | Seeks to provide a high | Seeks to deliver a high | Seeks high level of total |
level of total return, | level of total return with | level of current income | return, emphasizing | |
primarily through high | an emphasis on current | and long-term capital | current distributions. | |
current income and | income. | appreciation. | ||
secondarily, growth of | ||||
capital. | ||||
Investment Strategy: | Primarily invests in | Invests in a portfolio | Invests in real asset- | Invests in energy |
securities and other | of income-producing | related companies across | infrastructure, long- | |
instruments of real asset | public and private | the world and the capital | lived and essential, | |
companies and issuers, | infrastructure equity | structure, including | midstream, power and | |
including, but not limited | investments from | common stocks, | renewable assets. | |
to, real estate securities, | around the world. | preferred securities, and | ||
infrastructure securities, | debt. Real asset-related | |||
and natural resources | companies include those | |||
securities. | engaged in owning, | |||
operating, or developing | ||||
infrastructure projects, | ||||
facilities, and services, as | ||||
well as REITs. | ||||
Annual Operating | 2.24% | 1.86% | 1.57% | 1.84% |
Expense Ratio (before | (as of 12/31/20) | (estimated as of 5/31/21) | (as of 12/31/20) | (as of 12/31/20) |
expense limitation | ||||
arrangements): |
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PUBLIC SECURITIES
Principal Risks: | Investing in the Fund | International investing | Concentration in specific | The fund is non- |
will be subject to | entails special risk | sectors may involve | diversified, meaning | |
risks incidental to the | considerations, including | greater risk and volatility | it may concentrate | |
ownership and operation | currency fluctuations, | than more diversified | its assets in fewer | |
of "real assets." Such | lower liquidity, economic | investments: real | individual holdings | |
risks include, among | and political risks, and | estate investments may | than a diversified fund. | |
others, risks associated | differences in accounting | suffer due to economic | Therefore, the fund | |
with general economic | methods; these risks are | downturns and changes | is more exposed to | |
climates; fluctuations | generally heightened | in real estate values, | individual stock volatility | |
in interest rates and | for emerging market | rents, property taxes, | than a diversified fund. | |
currency; availability and | investments. Equity | interest rates and tax | Investing in specific | |
attractiveness of secured | stocks of small and | laws; infrastructure- | sectors such as energy | |
and unsecured financing; | mid-cap companies | related securities may | infrastructure may | |
compliance with relevant | carry greater risk, and | face adverse economic, | involve greater risk | |
government regulations; | more volatility than | regulatory, political, and | and volatility than | |
environmental liabilities; | equity stocks of larger, | legal changes. Prices of | less concentrated | |
various uninsured or | more established | equity securities may | investments. Risks | |
uninsurable unforeseen | companies. Dividends | decline significantly | include, but are | |
events; infrastructure | are not guaranteed and a | over short or extended | not limited to, risks | |
development and | company's future ability | periods of time. Debt or | associated with | |
construction and the | to pay dividends may be | fixed income securities | companies owning and/ | |
ability of the relevant | limited. | such as those held by | or operating pipelines | |
operating company to | Infrastructure-related | the Fund, are subject | and complementary | |
manage the relevant | to market risk, credit | assets, as well as MLP, | ||
issuers may be subject | ||||
business. These risks, | risk, interest rate risk, | MLP affiliates, capital | ||
to a variety of factors | ||||
either individually or in | derivatives risk, liquidity | markets, terrorism, | ||
that may adversely | ||||
combination, may cause, | risk, and income risk. As | natural disasters, | ||
affect their business or | ||||
among other things, a | interest rates rise, bond | climate change, | ||
operations, including | ||||
reduction in income, an | prices fall. Leverage | operating, regulatory, | ||
high interest costs | ||||
increase in operating | increases return volatility | environmental, supply | ||
in connection with | ||||
costs and an increase | and magnifies the | and demand, and price | ||
capital construction | ||||
in costs associated | Fund's potential return | volatility risks. The tax | ||
programs, high leverage, | ||||
with investments in | and its risks; there is | benefits received by an | ||
costs associated with | ||||
real assets, which may | no guarantee a fund's | investor investing in the | ||
environmental and | ||||
materially affect the | leverage strategy will be | fund differ from that of | ||
other regulations, the | ||||
financial position and | successful. | a direct investment in | ||
effects of economic | ||||
returns of specific | an MLP by an investor. | |||
slowdown, surplus | ||||
investments generally. | The value of the fund's | |||
capacity, increased | ||||
investment in an MLP | ||||
competition from other | ||||
will depend largely on | ||||
providers of services, | ||||
the MLP's treatment | ||||
uncertainties concerning | ||||
as a partnership for | ||||
the availability of fuel | ||||
U.S. federal income | ||||
at reasonable prices, | ||||
tax purposes. If the | ||||
the effects of energy | ||||
MLP is deemed to be | ||||
conservation policies and | ||||
a corporation then its | ||||
other factors. | ||||
income would be subject | ||||
Investments in private | to federal taxation, | |||
companies may be | reducing the amount | |||
subject to higher risk | of cash available for | |||
than investments in | distribution to the fund | |||
securities of public | which could result in a | |||
companies. | reduction of the fund's | |||
value. The fund is subject | ||||
to U.S. federal income | ||||
tax on taxable income | ||||
at the corporate tax | ||||
rate (currently as high | ||||
as 35%) and state and | ||||
local income taxes.The | ||||
fund invests in small | ||||
and midcap companies, | ||||
which involves additional | ||||
risks such as limited | ||||
liquidity and greater | ||||
volatility than larger | ||||
companies. | ||||
Distribution: | Monthly | Monthly | Monthly | Quarterly |
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PUBLIC SECURITIES
Taxation: | Intends to make | Intends to make | Intends to make | Intends to make |
distributions that may | distributions that may | distributions that may | distributions that may | |
be taxed as ordinary | be taxed as ordinary | be taxed as ordinary | be taxed as ordinary | |
income, qualified | income, qualified | income, qualified | income, qualified | |
dividend income, or | dividend income, or | dividend income, or | dividend income, or | |
capital gains. | capital gains. | capital gains. | capital gains. | |
Liquidity: | Shares are bought and | Shares are bought and | Shares are bought and | Shares are bought and |
sold at market price | sold at market price | sold at market price | sold at market price | |
(not NAV) on a stock | (not NAV) on a stock | (not NAV) on a stock | (not NAV) on a stock | |
exchange, may trade at | exchange, may trade at | exchange, may trade at | exchange, may trade at | |
a discount or premium | a discount or premium | a discount or premium | a discount or premium | |
to NAV, and are not | to NAV, and are not | to NAV, and are not | to NAV, and are not | |
` | individually redeemed | individually redeemed | individually redeemed | individually redeemed |
from the Fund. | from the Fund. | from the Fund. | from the Fund. | |
Brokerage commissions | Brokerage commissions | Brokerage commissions | Brokerage commissions | |
will reduce returns. | will reduce returns. | will reduce returns. | will reduce returns. |
References to other funds or products should not be considered an offer of those securities.
Definitions
RMBS are Residential Mortgage-Backed Securities.
CLOs are Collaterized Loan Obligations.
Nominal Interest Rate refers to an interest rate before taking inflation into account.
Real Interest Rate refers to an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor. The real interest rate reflects the rate of time-preference for current goods over future goods.
PPI refers to the Producer Price Index, published by the Bureau of Labor Statistics (BLS), is a group of indexes that calculates and represents the average movement in selling prices from domestic production over time.
Brookfield Real Assets Income Fund Inc is managed by Brookfield Public Securities Group LLC.
Quasar Distributors LLC is the filing agent for the Brookfield Real Assets Income Fund Inc.
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Disclaimer
Brookfield Real Assets Income Fund Inc. published this content on 09 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 July 2021 20:15:04 UTC.