Brookfield Real Assets Income Fund Inc.
09/04/2024 | Press release | Distributed by Public on 09/04/2024 09:39
Semi Annual Report by Investment Company Form N CSRS
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-23157
___________________________________________
Brookfield Real Assets Income Fund Inc.
(Exact name of registrant as specified in charter)
___________________________________________
Brookfield Place
225 Liberty Street, 35thFloor
New York, New York 10281-1048
(Address of principal executive offices) (Zip code)
Brian F. Hurley, Esq.
Brookfield Public Securities Group LLC
Brookfield Place
225 Liberty Street, 35thFloor
New York, New York 10281-1048
(Name and address of agent for service)
___________________________________________
(855) 777-8001
Registrant's telephone number, including area code
Date of fiscal year end: December 31
Date of reporting period: June 30, 2024
Item 1. Reports to Stockholders.
(a)
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IN PROFILE Brookfield Public Securities Group LLC (the "Firm") is an SEC-registeredinvestment adviser and represents the Public Securities platform of Brookfield Asset Management (as defined below). The Firm provides global listed real assets strategies including real estate equities, infrastructure and energy infrastructure equities, multi-real-asset-classstrategies and real asset debt. With appoximately $28 billion of assets under management as of June 30, 2024, the Firm manages separate accounts, registered funds and opportunistic strategies for institutional and individual clients, including financial institutions, public and private pension plans, insurance companies, endowments and foundations, sovereign wealth funds and high net worth investors. The Firm is an indirect wholly-ownedsubsidiary of Brookfield Asset Management ULC with $1 trillion of assets under management as of June 30, 2024, an unlimited liability company formed under the laws of British Columbia, Canada ("BAM ULC"). Brookfield Corporation, a publicly traded company (NYSE: BN; TSX: BN), holds a 75% interest in BAM ULC, while Brookfield Asset Management Ltd., a publicly traded company (NYSE: BAM; TSX: BAMA) ("Brookfield Asset Management"), holds a 25% interest in BAM ULC. For more information, go to https://publicsecurities.brookfield.com. Brookfield Real Assets Income Fund Inc. (the "Fund") is managed by Brookfield Public Securities Group LLC. The Fund uses its website as a channel of distribution of material company information. Financial and other material information regarding the Fund is routinely posted on and accessible at https://www.brookfieldoaktree.com/fund/brookfield-real-assets-income-fund-inc. |
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As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's annual and semi-annualshareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund's website (https://www.brookfieldoaktree.com/fund/brookfield-real-assets-income-fund-inc), and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker, investment adviser, bank or trust company) or, if you are a direct investor, by calling the Fund (toll-free) at 1-855-777-8001or by sending an e-mailrequest to the Fund at [email protected]. You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you may call 1-855-777-8001or send an email request to [email protected]to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held within the fund complex if you invest directly with the Fund. |
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TABLE OF CONTENTS |
|
Letter to Shareholders |
1 |
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Fund Performance |
3 |
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Portfolio Characteristics |
5 |
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|
Schedule of Investments |
6 |
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|
Statement of Assets and Liabilities |
27 |
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|
Statement of Operations |
28 |
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Statements of Changes in Net Assets |
29 |
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|
Statement of Cash Flows |
30 |
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|
Financial Highlights |
31 |
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Notes to Financial Statements |
33 |
|
|
Compliance Certification |
46 |
|
|
Proxy Results |
47 |
|
|
Board Considerations Relating to the Investment Advisory and Sub-Advisory Agreements |
48 |
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|
Dividend Reinvestment Plan |
53 |
|
|
Joint Notice of Privacy Policy |
54 |
This report is for shareholder information. This is not a Prospectus intended for use in the purchase or sale of Fund shares.
|
NOT FDIC INSURED |
MAY LOSE VALUE |
NOT BANK GUARANTEED |
[THIS PAGE IS INTENTIONALLY LEFT BLANK]
|
LETTER TO SHAREHOLDERS |
Dear Shareholders,
We are pleased to provide the Semi-AnnualReport for Brookfield Real Assets Income Fund Inc. (the "Fund") for the six-monthperiod ended June 30, 2024.
Global equities rallied during the first half of 2024, on hopes of a soft economic landing and tamer inflation in the U.S. The MSCI World Index rose 12.04%. In the U.S., large cap stocks, as measured by the S&P 500 Index, gained 15.29%, with enthusiasm about artificial intelligence fueling gains for big technology companies. Within commodities, the Bloomberg Commodity Index gained 5.14%, as geopolitical concerns helped lift oil prices.
Real asset equities underperformed the broader market during the first half of the year, as tight monetary policy continued to hamper sentiment for many real estate and infrastructure sectors with longer-durationcash flows. Global real estate equities, as measured by the FTSE EPRA, fell -3.17% for the first six months of 2024, though there was dispersion among U.S. property types. Health care and residential stocks rose more than 10% and 7% respectively, during the first half, while deteriorating fundamentals weighed on industrials and hotel stocks. Global listed infrastructure posted moderate gains, with the FTSE Global Core Infrastructure 50/50 Index advancing 2.77%, helped by the ongoing rally among midstream energy equities.
Fixed-incomemarkets were overall positive for the first half of the year, as income return and spreads tightening outweighed increases in U.S. Treasury rates to 4.40% from 3.88% as of December 31, 2023. Broad investment grade rose 0.04%, as measured by the ICE BofA U.S. Corporate Index. Broad high yield returned 2.65%, as measured by the ICE BofA U.S. High Yield Index. Real asset investment grade slightly underperformed its broader market counterpart due to its longer duration, while real asset high yield underperformed on continued weakness within telecommunications. Meanwhile, real estate structured credit posted positive performance in the first half of 2024 as investor sentiment about the real estate sector improved, underpinned by the expectations that interest rates have peaked.
As the second half of 2024 kicks off, we believe we have entered an economic environment of moderate inflation, after having spent the last three years firmly in a high-inflationarybackdrop. The current environment supports market expectations that the U.S. Federal Reserve could cut interest rates at least once in 2024, as it seeks to achieve a soft landing. In our view, real asset securities are positioned to generate positive returns amid a normalizing interest rate environment and attractive valuations.
Moreover, at Brookfield, the assets owned by the companies in which we invest live at the epicenter of several decades-longmegatrends, namely: Decarbonization, Deglobalization and Digitization. Trillions of dollars will be deployed as these trends play out; and across our funds we seek to uncover the highest quality listed equity and debt investment opportunities that stand to benefit from these secular shifts as well as the more favorable macro backdrop. Finally, active security selection focused on fundamentals-namely earnings growth and valuations-is key to producing attractive investment returns in any environment.
In addition to performance information and additional discussion on factors impacting the Fund, this report provides the Fund's unaudited financial statements and schedule of investments as of June 30, 2024.
We welcome your questions and comments and encourage you to contact our Investor Relations team at 1-855-777-8001or visit us at https://www.brookfieldoaktree.com/ for more information.
Thank you for your support.
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2024 Semi-AnnualReport |
1 |
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LETTER TO SHAREHOLDERS (continued) |
Sincerely,
|
Brian F. Hurley |
Paula Horn |
|
|
President |
President and Chief Investment Officer |
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, 2024, 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.
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2 |
BrookfieldPublic Securities Group LLC |
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BROOKFIELD REAL ASSETS INCOME FUND INC. |
AVERAGE ANNUAL TOTAL RETURNS
|
As of June 30, 2024 |
Six Months† |
1 Year |
5 Years |
Since Inception* |
|
Brookfield Real Assets Income Fund Inc. - Based on Net Asset Value |
2.60% |
10.15% |
2.75% |
4.50% |
|
Brookfield Real Assets Income Fund Inc. - Based on Market Price |
5.22% |
(13.82)% |
2.18% |
4.71% |
|
ICE BofA U.S. High Yield Index |
2.65% |
10.52% |
3.76% |
4.72% |
† 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-denominatedbelow-investment-gradecorporate 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-terminterest rates lower than long-termrates). 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.
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2024 Semi-AnnualReport |
3 |
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BROOKFIELD REAL ASSETS INCOME FUND INC. |
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-backedsecurities 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, 2024 and subject to change based on subsequent developments.
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4 |
BrookfieldPublic Securities Group LLC |
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BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
PORTFOLIO STATISTICS |
||
|
Annualized distribution rate1 |
11.10% |
|
|
Weighted average coupon |
5.60% |
|
|
Weighted average life |
3.22 years |
|
|
Percentage of leveraged assets |
19.95% |
|
|
Total number of holdings |
523 |
|
|
ASSET BY COUPON TYPE DISTRIBUTION2 |
||
|
Corporate Credit |
||
|
- Real Estate |
14.8% |
|
|
- Infrastructure |
38.0% |
|
|
- Natural Resources |
7.2% |
|
|
Total Corporate Credit |
60.0% |
|
|
Securitized Credit |
||
|
- Residential Mortgage-Backed Securities |
23.8% |
|
|
- Commercial Mortgage-Backed Securities |
10.0% |
|
|
- Other |
0.6% |
|
|
Total Securitized Credit |
34.4% |
|
|
Equities |
||
|
- Real Estate |
1.3% |
|
|
- Infrastructure |
3.2% |
|
|
Total Equities |
4.5% |
|
|
Money Market Fund |
1.1% |
|
|
Total |
100.0% |
|
|
FIXED INCOME ASSETS BY CREDIT RATING3 |
||
|
BBB and Above |
20.2% |
|
|
BB |
41.4% |
|
|
B |
9.7% |
|
|
CCC and Below |
9.4% |
|
|
Unrated |
19.3% |
|
|
Total |
100.0% |
____________
1The distribution rate referenced above is calculated as the annualized amount of the most recent monthly distribution declared divided by the June 30, 2024 stock price. This calculation does not include any non-incomeitems 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-datethrough June 30, 2024, 39.97% of its distributions are estimated to be a return of capital.
2Percentages are based on total market value of investments.
3Percentages are based on total market value of fixed income securities.
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2024 Semi-AnnualReport |
5 |
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BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 0.2% |
||||||
|
U.S. Government Agency Collateralized Mortgage Obligations - 0.0% |
||||||
|
Federal National Mortgage Association |
$ |
17,618 |
$ |
17,875 |
||
|
U.S. Government Agency Pass-Through Certificates - 0.2% |
||||||
|
Federal Home Loan Mortgage Corporation |
||||||
|
7.00%, Pool C69047, 06/01/32 |
114,009 |
118,718 |
||||
|
8.00%, Pool C56878, 08/01/31 |
29,809 |
30,563 |
||||
|
8.00%, Pool C59641, 10/01/31 |
24,963 |
25,598 |
||||
|
8.50%, Pool C55167, 07/01/31 |
27,400 |
27,964 |
||||
|
8.50%, Pool C55169, 07/01/31 |
35,697 |
36,883 |
||||
|
Federal National Mortgage Association |
||||||
|
7.00%, Pool 645912, 06/01/32 |
108,080 |
112,173 |
||||
|
7.00%, Pool 645913, 06/01/32 |
110,914 |
114,909 |
||||
|
7.00%, Pool 650131, 07/01/32 |
118,354 |
123,252 |
||||
|
7.50%, Pool 827853, 10/01/29 |
3,944 |
3,918 |
||||
|
7.50%, Pool 545990, 04/01/31 |
64,331 |
65,893 |
||||
|
7.50%, Pool 255053, 12/01/33 |
34,957 |
36,863 |
||||
|
7.50%, Pool 735576, 11/01/34 |
73,434 |
76,399 |
||||
|
7.50%, Pool 896391, 06/01/36 |
68,878 |
70,555 |
||||
|
8.00%, Pool 458132, 03/15/31 |
136 |
135 |
||||
|
8.00%, Pool 735800, 01/01/35 |
96,635 |
103,301 |
||||
|
8.50%, Pool 636449, 04/01/32 |
96,143 |
101,694 |
||||
|
9.00%, Pool 545436, 10/01/31 |
84,011 |
90,573 |
||||
|
Total U.S. Government Agency Pass-Through Certificates |
1,139,391 |
|||||
|
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS |
1,157,266 |
|||||
|
SECURITIZED CREDIT - 42.9% |
||||||
|
Commercial Mortgage-Backed Securities - 10.1% |
||||||
|
ACAM Ltd. |
1,902,000 |
1,839,018 |
||||
|
8.44%, 2019-FL1, Class E (1 mo. Term SOFR + 3.11%), 11/17/34 (a),(b),(c) |
2,098,000 |
1,932,724 |
||||
|
ACRES Commercial Realty Ltd. |
1,000,000 |
917,635 |
||||
|
BAMLL Commercial Mortgage Securities Trust |
5,000,000 |
3,816,414 |
||||
|
BBCMS Mortgage Trust |
4,000,000 |
2,760,211 |
||||
|
Beast Mortgage Trust |
1,250,000 |
767,107 |
||||
|
Benchmark Mortgage Trust |
2,000,000 |
962,752 |
||||
|
BWAY Mortgage Trust |
3,000,000 |
1,899,564 |
||||
|
BX Trust |
1,000,000 |
980,794 |
||||
|
9.48%, 2021-SDMF, Class J (1 mo. Term SOFR + 4.15%), 09/15/34 (a),(c) |
4,796,264 |
4,433,401 |
____________
See Notes to Financial Statements.
|
6 |
Brookfield Public Securities Group LLC |
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BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
SECURITIZED CREDIT (continued) |
||||||
|
Citigroup Commercial Mortgage Trust |
$ |
3,500,000 |
$ |
3,408,127 |
||
|
CLNC Ltd. |
3,000,000 |
2,795,368 |
||||
|
Federal Home Loan Mortgage Corp. |
5,250,000 |
1,417,039 |
||||
|
FS Rialto |
2,000,000 |
1,989,487 |
||||
|
GS Mortgage Securities Trust |
3,500,000 |
1,467,785 |
||||
|
Hilton USA Trust |
581,000 |
364,578 |
||||
|
4.33%, 2016-HHV, Class E, 11/05/38 (a) |
11,000,000 |
10,316,447 |
||||
|
4.93%, 2016-SFP, Class D, 11/05/35 (a) |
1,929,000 |
960,883 |
||||
|
5.52%, 2016-SFP, Class E, 11/05/35 (a) |
1,300,000 |
130,000 |
||||
|
JP Morgan Chase Commercial Mortgage Securities |
728,235 |
696,830 |
||||
|
JP Morgan Chase Commercial Mortgage Securities Trust |
26,593 |
26,659 |
||||
|
7.06%, 2008-C2, Class AM, 02/12/51 |
4,817,078 |
2,539,663 |
||||
|
9.71%, 2021-HTL5, Class F (1 mo. Term SOFR + 4.38%), 11/15/38 (a),(c) |
3,201,000 |
3,110,862 |
||||
|
10.29%, 2021-1440, Class F (1 mo. Term SOFR + 4.96%), 03/15/36 (a),(c),(d) |
2,586,000 |
1,654,264 |
||||
|
KIND Trust |
1,487,782 |
1,430,920 |
||||
|
9.39%, 2021-KIND, Class F (1 mo. Term SOFR + 4.06%), 08/15/38 (a),(c) |
3,331,912 |
3,217,369 |
||||
|
Last Mile Securities |
€ |
2,037,581 |
2,078,437 |
|||
|
Morgan Stanley Capital I Trust |
$ |
3,000,000 |
2,410,735 |
|||
|
Taurus CMBS |
£ |
861,000 |
1,060,284 |
|||
|
8.33%, 2021-UK4X, Class E (SONIA + 3.10%), 08/17/31 (b),(c) |
644,923 |
783,857 |
||||
|
TPG Real Estate Finance Issuer Ltd. |
$ |
4,000,000 |
3,575,108 |
|||
|
TTAN |
3,857,883 |
3,825,693 |
||||
|
UK Logistics |
£ |
504,000 |
637,104 |
|||
|
10.22%, 2024-1A, Class E (SONIA + 5.00%), 05/17/34 (a),(b),(c) |
1,874,000 |
2,368,913 |
||||
|
VMC Finance LLC |
$ |
893,000 |
757,264 |
|||
|
9.40%, 2021-FL4, Class E (1 mo. Term SOFR + 4.06%), 06/16/36 (a),(c) |
3,107,000 |
2,636,716 |
||||
|
9.95%, 2021-HT1, Class B (1 mo. Term SOFR + 4.61%), 01/18/37 (a),(c) |
5,000,000 |
4,792,520 |
||||
|
Wachovia Bank Commercial Mortgage Trust |
940,640 |
937,451 |
||||
|
Total Commercial Mortgage-Backed Securities |
81,699,983 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
7 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
SECURITIZED CREDIT (continued) |
||||||
|
Commercial Real Estate - 2.2% |
||||||
|
111 Wall Street New Senior Mezz |
$ |
468,059 |
$ |
293,380 |
||
|
111 Wall Street Existing Senior Mezz |
4,465,121 |
2,798,737 |
||||
|
125 West End Office Mezz LLC |
3,525,494 |
3,525,494 |
||||
|
575 Lexington Junior Mezz |
6,551,734 |
4,304,489 |
||||
|
575 Lexington Senior Mezz |
1,642,707 |
1,642,707 |
||||
|
Hyatt Lost Pines |
5,000,000 |
5,000,000 |
||||
|
Total Commercial Real Estate |
17,564,807 |
|||||
|
Interest-Only Securities - 0.1% |
||||||
|
Government National Mortgage Association |
182,757 |
465 |
||||
|
JP Morgan Mortgage Trust |
1,506,219 |
3,671 |
||||
|
0.23%, 2021-INV1, Class AX1, 10/25/51 (a) |
44,431,478 |
487,867 |
||||
|
0.25%, 2015-4, Class 2X1, 06/25/45 (a) |
34,711,656 |
268,443 |
||||
|
Mello Mortgage Capital Acceptance |
47,391,506 |
256,658 |
||||
|
Morgan Stanley Capital I Trust |
14,999,000 |
267,926 |
||||
|
Vendee Mortgage Trust |
1,285,523 |
1 |
||||
|
Total Interest-Only Securities |
1,285,031 |
|||||
|
Other - 1.0% |
||||||
|
Lehman ABS Manufactured Housing Contract Trust |
2,290,524 |
2,246,434 |
||||
|
Mid-State Trust X |
1,078,060 |
1,076,814 |
||||
|
Oakwood Mortgage Investors, Inc. |
2,193,037 |
2,100,425 |
||||
|
6.93%, 2001-D, Class A4, 09/15/31 |
452,909 |
220,188 |
||||
|
Progress Residential Trust |
2,500,000 |
2,330,822 |
||||
|
Total Other |
7,974,683 |
|||||
|
Residential Mortgage-Backed Securities - 29.5% |
||||||
|
Alternative Loan Trust |
6,124,946 |
554,957 |
||||
|
4.89%, 2005-84, Class 2A1, 02/25/36 |
8,331,028 |
7,822,882 |
||||
|
5.50%, 2005-10CB, Class 1A1 (1 mo. Term SOFR + 0.61%), 05/25/35 (c) |
1,150,334 |
888,286 |
||||
|
5.74%, 2007-OA3, Class 1A1 (1 mo. Term SOFR + 0.39%), 04/25/47 (c) |
5,614,027 |
4,751,688 |
____________
See Notes to Financial Statements.
|
8 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
SECURITIZED CREDIT (continued) |
||||||
|
5.75%, 2007-2CB, Class 2A11 (1 mo. Term SOFR + 0.51%), 03/25/37 (c) |
$ |
2,295,173 |
$ |
909,201 |
||
|
5.75%, 2007-12T1, Class A22, 06/25/37 |
1,663,711 |
729,608 |
||||
|
5.75%, 2007-15CB, Class A2, 07/25/37 (b) |
1,602,281 |
941,957 |
||||
|
5.88%, 2007-HY6, Class A1 (1 mo. Term SOFR + 0.53%), 08/25/47 (c) |
1,914,560 |
1,592,581 |
||||
|
5.96%, 2007-16CB, Class 4A5 (1 mo. Term SOFR + 0.61%), 08/25/37 (c) |
3,532,925 |
2,236,894 |
||||
|
6.00%, 2006-19CB, Class A9 (1 mo. Term SOFR + 0.81%), 08/25/36 (c) |
1,764,495 |
841,652 |
||||
|
6.00%, 2006-29T1, Class 2A5, 10/25/36 |
1,076,459 |
580,952 |
||||
|
6.00%, 2006-41CB, Class 1A7, 01/25/37 (b) |
12,177,923 |
6,172,108 |
||||
|
6.00%, 2006-45T1, Class 2A5, 02/25/37 |
2,008,566 |
1,075,936 |
||||
|
6.50%, 2006-29T1, Class 2A6, 10/25/36 |
1,689,218 |
965,372 |
||||
|
6.56%, 2006-23CB, Class 2A7 (-4 x 1 mo. Term SOFR + 27.94%), 08/25/36 (c),(g) |
1,189,836 |
618,705 |
||||
|
23.17%, 2006-29T1, Class 3A3 (-10 x 1 mo. Term SOFR + 77.24%), 10/25/36 (c),(g) |
633,322 |
772,053 |
||||
|
Bellemeade Re Ltd. |
1,389,000 |
1,416,213 |
||||
|
BRAVO Residential Funding Trust |
1,589,175 |
1,577,101 |
||||
|
7.44%, 2023-NQM5, Class B1, 06/25/63 (a) |
1,000,000 |
986,690 |
||||
|
Cascade Funding Mortgage Trust 2020-HB2 |
1,100,000 |
947,436 |
||||
|
Chase Mortgage Finance Trust |
1,740,948 |
1,584,104 |
||||
|
4.92%, 2005-A2, Class 3A2, 01/25/36 |
662,946 |
572,540 |
||||
|
CHL Mortgage Pass-Through Trust |
160,753 |
74,420 |
||||
|
6.00%, 2004-21, Class A10, 11/25/34 |
35,368 |
33,769 |
||||
|
6.00%, 2006-20, Class 1A18 (1 mo. Term SOFR + 0.76%), 02/25/37 (c) |
3,739,683 |
1,499,581 |
||||
|
6.00%, 2007-18, Class 1A1, 11/25/37 |
183,203 |
83,798 |
||||
|
CHNGE Mortgage Trust |
2,700,000 |
2,158,674 |
||||
|
4.55%, 2022-1, Class B1, 01/25/67 (a) |
2,500,000 |
2,090,922 |
||||
|
4.63%, 2022-2, Class B1, 03/25/67 (a) |
3,000,000 |
2,442,397 |
||||
|
8.19%, 2023-2, Class M1, 06/25/58 (a) |
3,500,000 |
3,502,798 |
||||
|
8.44%, 2023-4, Class M1, 09/25/58 (a),(b) |
1,641,000 |
1,627,320 |
||||
|
Citicorp Mortgage Securities Trust |
298,096 |
236,819 |
||||
|
Citigroup Mortgage Loan Trust |
322,954 |
293,558 |
||||
|
6.10%, 2009-8, Class 2A2, 04/25/37 (a) |
4,221,110 |
2,050,636 |
||||
|
CWABS Asset-Backed Certificates |
645,892 |
614,526 |
||||
|
Deephaven Residential Mortgage Trust |
3,000,000 |
2,330,821 |
||||
|
Eagle Re Ltd. |
5,000,000 |
5,184,448 |
||||
|
FIGRE Trust 2024-HE2 |
975,443 |
981,826 |
||||
|
6.72%, 2024-HE2, Class C, 05/25/54 (a) |
487,721 |
490,008 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
9 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
SECURITIZED CREDIT (continued) |
||||||
|
7.20%, 2024-HE2, Class D, 05/25/54 (a) |
$ |
500,000 |
$ |
504,796 |
||
|
8.20%, 2024-HE2, Class E, 05/25/54 (a) |
500,000 |
502,319 |
||||
|
9.79%, 2024-HE2, Class F, 05/25/54 (a) |
500,000 |
501,253 |
||||
|
First Horizon Alternative Mortgage Securities Trust |
1,073,970 |
464,501 |
||||
|
Freddie Mac Seasoned Credit Risk Transfer Trust |
2,000,000 |
1,880,929 |
||||
|
4.50%, 2019-4, Class M, 02/25/59 (a) |
1,617,000 |
1,491,362 |
||||
|
4.50%, 2022-1, Class M, 11/25/61 (a) |
3,000,000 |
2,562,088 |
||||
|
FREED Mortgage Trust |
971,474 |
919,485 |
||||
|
GCAT Trust |
1,251,710 |
1,229,993 |
||||
|
5.76%, 2022-NQM4, Class M1, 08/25/67 (a) |
250,000 |
237,555 |
||||
|
GMACM Home Equity Loan Trust |
831,996 |
791,218 |
||||
|
6.05%, 2007-HE2, Class A2, 12/25/37 |
276,480 |
267,975 |
||||
|
6.19%, 2007-HE2, Class A3, 12/25/37 |
532,616 |
517,430 |
||||
|
GSAMP Trust |
438,478 |
233,516 |
||||
|
GSR Mortgage Loan Trust |
1,876,733 |
1,636,278 |
||||
|
5.76%, 2007-1F, Class 4A1 (1 mo. Term SOFR + 0.41%), 01/25/37 (c) |
5,639,523 |
1,319,809 |
||||
|
Home Equity Asset Trust |
3,496,222 |
2,901,519 |
||||
|
Home RE Ltd. |
4,285,730 |
4,344,143 |
||||
|
8.59%, 2021-2, Class M2 (30 day avg SOFR US + 3.25%), 01/25/34 (a),(c) |
5,331,000 |
5,357,919 |
||||
|
Imperial Fund Mortgage Trust |
604,799 |
604,001 |
||||
|
6.12%, 2022-NQM5, Class A2, 08/25/67 (a),(h) |
403,200 |
407,332 |
||||
|
6.25%, 2022-NQM5, Class M1, 08/25/67 (a),(h) |
1,026,000 |
1,021,493 |
||||
|
Indymac INDA Mortgage Loan Trust |
605,478 |
455,819 |
||||
|
5.49%, 2007-AR3, Class 1A1, 07/25/37 |
1,464,577 |
1,216,367 |
||||
|
Irwin Home Equity Loan Trust |
214,563 |
212,830 |
||||
|
JP Morgan Mortgage Trust |
827,000 |
301,713 |
||||
|
4.73%, 2007-A2, Class 3A2, 04/25/37 |
3,626,609 |
2,902,124 |
||||
|
5.50%, 2003-A1, Class B4, 10/25/33 |
82,607 |
54,977 |
||||
|
5.85%, 2003-A2, Class B4, 11/25/33 |
73,205 |
1 |
||||
|
7.83%, 2023-HE3, Class M2 (30 day avg SOFR US + 2.50%), 05/25/54 (a),(c) |
1,695,000 |
1,711,928 |
||||
|
9.22%, 2024-CES1, Class B2, 06/25/54 (a) |
1,101,000 |
1,093,586 |
||||
|
JPMorgan Chase Bank NA |
148,659 |
143,199 |
||||
|
7.56%, 2019-CL1, Class M3 (1 mo. Term SOFR + 2.21%), 04/25/47 (a),(c) |
157,945 |
159,381 |
||||
|
8.81%, 2020-CL1, Class M3 (1 mo. Term SOFR + 3.46%), 10/25/57 (a),(c) |
151,856 |
154,714 |
||||
|
9.81%, 2020-CL1, Class M4 (1 mo. Term SOFR + 4.46%), 10/25/57 (a),(c) |
174,547 |
178,045 |
____________
See Notes to Financial Statements.
|
10 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
SECURITIZED CREDIT (continued) |
||||||
|
MASTR Asset Backed Securities Trust |
$ |
2,529,565 |
$ |
1,191,792 |
||
|
5.78%, 2006-NC3, Class A4 (1 mo. Term SOFR + 0.43%), 10/25/36 (c) |
4,267,689 |
2,010,702 |
||||
|
5.94%, 2006-NC2, Class A5 (1 mo. Term SOFR + 0.59%), 08/25/36 (c) |
362,327 |
129,047 |
||||
|
Mello Mortgage Capital Acceptance |
352,021 |
115,751 |
||||
|
2.96%, 2021-INV1, Class B4, 06/25/51 (a),(b) |
604,060 |
392,335 |
||||
|
MFA Trust |
700,000 |
626,053 |
||||
|
New York Mortgage Trust, Inc. |
1,000,000 |
1,001,115 |
||||
|
7.15%, 2024-BPL1, Class A1, 02/25/29 (a),(h) |
2,000,000 |
2,021,525 |
||||
|
8.41%, 2024-BPL2, Class M, 05/25/39 (a) |
1,919,000 |
1,909,400 |
||||
|
Nomura Resecuritization Trust |
21,226,718 |
16,280,332 |
||||
|
4.31%, 2015-1R, Class 3A7, 03/26/37 (a) |
4,027,543 |
2,432,977 |
||||
|
4.34%, 2015-11R, Class 4A5, 06/26/37 (a) |
2,875,929 |
2,433,075 |
||||
|
5.80%, 2015-1R, Class 4A7, 12/26/37 (a) |
1,082,082 |
979,823 |
||||
|
NRZ Excess Spread-Collateralized Notes |
173,206 |
163,712 |
||||
|
3.10%, 2021-FHT1, Class A, 07/25/26 (a) |
668,426 |
627,988 |
||||
|
3.23%, 2021-FNT2, Class A, 05/25/26 (a) |
361,775 |
341,680 |
||||
|
4.21%, 2020-FHT1, Class A, 11/25/25 (a) |
722,969 |
698,172 |
||||
|
Oaktown Re Ltd. |
2,084,000 |
2,079,715 |
||||
|
8.69%, 2021-2, Class M1C (30 day avg SOFR US + 3.35%), 04/25/34 (a),(c) |
3,769,000 |
3,841,663 |
||||
|
Option One Mortgage Loan Trust |
123,833 |
112,129 |
||||
|
PRKCM Trust |
3,000,000 |
2,874,868 |
||||
|
7.09%, 2023-AFC2, Class A3, 06/25/58 (a) |
3,222,118 |
3,227,429 |
||||
|
7.56%, 2023-AFC1, Class B1, 02/25/58 (a) |
1,000,000 |
977,332 |
||||
|
7.74%, 2024-HOME1, Class B1, 05/25/59 (a) |
1,000,000 |
986,061 |
||||
|
7.86%, 2023-AFC3, Class B1, 09/25/58 (a) |
4,128,000 |
4,069,232 |
||||
|
7.88%, 2023-AFC2, Class M1, 06/25/58 (a) |
750,000 |
764,096 |
||||
|
8.06%, 2024-AFC1, Class B1, 03/25/59 (a) |
1,638,000 |
1,630,160 |
||||
|
8.15%, 2023-AFC2, Class B1, 06/25/58 (a) |
3,000,000 |
2,983,262 |
||||
|
Progress Residential Trust |
2,100,000 |
1,791,730 |
||||
|
PRPM LLC |
1,080,113 |
1,055,923 |
||||
|
4.00%, 2024-RCF1, Class M1, 01/25/54 (a),(h) |
1,000,000 |
895,283 |
||||
|
4.79%, 2021-5, Class A1, 06/25/26 (a),(h) |
622,636 |
610,638 |
||||
|
4.83%, 2021-10, Class A2, 10/25/26 (a),(h) |
3,000,000 |
2,936,545 |
||||
|
4.87%, 2021-3, Class A1, 04/25/26 (a),(h) |
279,435 |
275,300 |
||||
|
5.00%, 2022-2, Class A1, 03/25/27 (a),(h) |
2,312,676 |
2,276,198 |
||||
|
5.36%, 2020-6, Class A1, 11/25/25 (a),(h) |
454,472 |
450,837 |
||||
|
6.29%, 2022-1, Class A2, 02/25/27 (a),(h) |
500,000 |
486,577 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
11 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
SECURITIZED CREDIT (continued) |
||||||
|
6.72%, 2021-5, Class A2, 06/25/26 (a),(h) |
$ |
2,507,752 |
$ |
2,428,690 |
||
|
7.56%, 2024-NQM1, Class B1, 12/25/68 (a) |
2,000,000 |
1,931,091 |
||||
|
7.70%, 2020-6, Class A2, 11/25/25 (a),(h) |
1,417,375 |
1,402,979 |
||||
|
7.73%, 2024-NQM2, Class B1, 06/25/69 (a) |
1,500,000 |
1,476,507 |
||||
|
Radnor RE Ltd. |
1,443,000 |
1,456,355 |
||||
|
RALI Trust |
1,048,194 |
949,296 |
||||
|
6.00%, 2006-QS3, Class 1A10, 03/25/36 |
1,439,086 |
1,229,480 |
||||
|
6.00%, 2006-QO7, Class 2A1 (12 Month US Treasury Average + 0.85%), 09/25/46 (c) |
5,221,818 |
4,331,197 |
||||
|
10.27%, 2006-QS14, Class A30 (-13 x 1 mo. Term SOFR + 79.76%), 11/25/36 (c),(g) |
45,266 |
68,477 |
||||
|
RCKT Mortgage Trust |
2,000,000 |
2,059,342 |
||||
|
RFMSI Trust |
1,113,469 |
792,618 |
||||
|
Rithm Capital Corp. |
822,429 |
809,081 |
||||
|
9.24%, 2024-RTL1, Class M1, 03/25/39 (a) |
2,500,000 |
2,493,152 |
||||
|
Santander Holdings USA, Inc. |
5,228,792 |
5,535,311 |
||||
|
Securitized Asset Backed Receivables LLC Trust |
5,125,945 |
1,671,950 |
||||
|
5.76%, 2007-NC1, Class A2B (1 mo. Term SOFR + 0.41%), 12/25/36 (c) |
3,235,545 |
1,549,234 |
||||
|
STAR Trust |
3,000,000 |
2,921,171 |
||||
|
9.03%, 2022-SFR3, Class E2 (1 mo. Term SOFR + 3.70%), 05/17/39 (a),(c) |
3,750,000 |
3,730,779 |
||||
|
Toorak Mortgage Trust |
1,500,000 |
1,500,125 |
||||
|
Towd Point Mortgage Trust |
1,000,000 |
1,009,016 |
||||
|
Tricon American Homes |
2,382,000 |
2,284,977 |
||||
|
Verus Securitization Trust |
406,588 |
407,658 |
||||
|
5.83%, 2022-INV1, Class M1, 08/25/67 (a) |
500,000 |
492,307 |
||||
|
6.67%, 2024-1, Class M1, 01/25/69 (a) |
1,000,000 |
998,929 |
||||
|
7.08%, 2023-INV2, Class A3, 08/25/68 (a),(h) |
101,752 |
101,708 |
||||
|
7.35%, 2023-INV2, Class M1, 08/25/68 (a) |
121,000 |
121,525 |
||||
|
7.40%, 2023-4, Class M1, 05/25/68 (a) |
1,500,000 |
1,521,460 |
||||
|
7.56%, 2023-2, Class B1, 03/25/68 (a) |
1,000,000 |
982,253 |
||||
|
7.86%, 2024-2, Class B1, 02/25/69 (a) |
1,000,000 |
999,665 |
||||
|
7.91%, 2024-1, Class B1, 01/25/69 (a) |
500,000 |
500,307 |
||||
|
8.09%, 2024-INV1, Class B1, 03/25/69 (a) |
1,000,000 |
987,716 |
||||
|
8.13%, 2023-INV2, Class B1, 08/25/68 (a) |
100,000 |
100,003 |
||||
|
8.16%, 2023-4, Class B1, 05/25/68 (a) |
2,000,000 |
1,996,111 |
||||
|
Washington Mutual Mortgage Pass-Through Certificates Trust |
573,662 |
500,287 |
||||
|
4.33%, 2007-HY5, Class 1A1, 05/25/37 |
1,620,132 |
1,437,587 |
____________
See Notes to Financial Statements.
|
12 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
SECURITIZED CREDIT (continued) |
||||||
|
4.33%, 2007-HY1, Class 4A1, 02/25/37 |
$ |
4,653,398 |
$ |
4,160,887 |
||
|
5.09%, 2007-HY3, Class 4A1, 03/25/37 |
4,863,443 |
4,339,795 |
||||
|
Wells Fargo Mortgage Backed Securities Trust |
640,254 |
607,934 |
||||
|
6.31%, 2006-AR1, Class 2A5, 03/25/36 |
917,844 |
869,784 |
||||
|
Western Alliance Bancorp |
936,004 |
931,212 |
||||
|
10.69%, 2021-CL2, Class M4 (30 day avg SOFR US + 5.35%), 07/25/59 (a),(c) |
1,609,620 |
1,642,295 |
||||
|
Woodward Capital Management |
965,000 |
991,024 |
||||
|
8.18%, 2023-CES2, Class M2, 09/25/43 (a) |
1,200,000 |
1,238,106 |
||||
|
Total Residential Mortgage-Backed Securities |
237,756,673 |
|||||
|
TOTAL SECURITIZED CREDIT |
346,281,177 |
|||||
|
CORPORATE CREDIT - 68.9% |
||||||
|
Basic Industrial - 2.1% |
||||||
|
Cascades, Inc. |
5,915,000 |
5,694,726 |
||||
|
Clearwater Paper Corp. |
3,000,000 |
2,775,317 |
||||
|
Methanex Corp. |
1,490,000 |
1,437,619 |
||||
|
NOVA Chemicals Corp. |
1,681,000 |
1,481,751 |
||||
|
8.50%, 11/15/28 (a),(b) |
1,405,000 |
1,489,744 |
||||
|
Tronox, Inc. |
4,245,000 |
3,832,099 |
||||
|
Total Basic Industrial |
16,711,256 |
|||||
|
Construction & Building Materials - 1.1% |
||||||
|
Beazer Homes USA, Inc. |
1,067,000 |
1,068,751 |
||||
|
M/I Homes, Inc. |
2,747,000 |
2,649,246 |
||||
|
STL Holding Co. LLC |
2,320,000 |
2,418,600 |
||||
|
Summit Materials LLC / Summit Materials Finance Corp. |
2,575,000 |
2,666,879 |
||||
|
Total Construction & Building Materials |
8,803,476 |
|||||
|
Diversified - 0.6% |
||||||
|
Five Point Operating Co. LP / Five Point Capital Corp. |
2,098,966 |
2,144,955 |
||||
|
Kennedy Wilson Europe Real Estate Ltd. |
€ |
1,000,000 |
1,017,403 |
|||
|
Kennedy-Wilson, Inc. |
$ |
1,700,000 |
1,411,205 |
|||
|
Total Diversified |
4,573,563 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
13 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
CORPORATE CREDIT (continued) |
||||||
|
Diversified Real Estate - 1.2% |
||||||
|
Forestar Group, Inc. |
$ |
2,795,000 |
$ |
2,679,091 |
||
|
Howard Hughes Corp. / The |
3,600,000 |
3,100,803 |
||||
|
5.38%, 08/01/28 (a),(i) |
4,275,000 |
4,063,228 |
||||
|
Total Diversified Real Estate |
9,843,122 |
|||||
|
Energy - 6.7% |
||||||
|
Antero Resources Corp. |
4,200,000 |
4,065,353 |
||||
|
Baytex Energy Corp. |
2,617,000 |
2,736,626 |
||||
|
California Resources Corp. |
3,447,000 |
3,455,167 |
||||
|
Civitas Resources, Inc. |
5,295,000 |
5,547,958 |
||||
|
CNX Resources Corp. |
2,533,000 |
2,589,686 |
||||
|
Comstock Resources, Inc. |
2,883,000 |
2,794,166 |
||||
|
Continental Resources, Inc. |
5,609,000 |
5,523,546 |
||||
|
Crescent Energy Finance LLC |
2,700,000 |
2,751,783 |
||||
|
9.25%, 02/15/28 (a),(i) |
2,130,000 |
2,254,114 |
||||
|
EQT Corp. |
2,331,000 |
2,473,879 |
||||
|
MEG Energy Corp. |
4,650,000 |
4,522,831 |
||||
|
Moss Creek Resources Holdings, Inc. |
1,640,000 |
1,680,848 |
||||
|
Occidental Petroleum Corp. |
3,600,000 |
4,147,336 |
||||
|
Range Resources Corp. |
1,750,000 |
1,813,483 |
||||
|
Southwestern Energy Co. |
5,565,000 |
5,409,734 |
||||
|
Transocean Titan Financing Ltd. |
2,580,000 |
2,662,570 |
||||
|
Total Energy |
54,429,080 |
|||||
|
Health Facilities - 1.9% |
||||||
|
Community Health Systems, Inc. |
3,112,000 |
3,237,092 |
||||
|
Tenet Healthcare Corp. |
11,800,000 |
11,739,725 |
||||
|
Total Health Facilities |
14,976,817 |
____________
See Notes to Financial Statements.
|
14 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
CORPORATE CREDIT (continued) |
||||||
|
Infrastructure Services - 0.7% |
||||||
|
GFL Environmental, Inc. |
$ |
2,910,000 |
$ |
2,685,466 |
||
|
6.75%, 01/15/31 (a) |
273,000 |
278,495 |
||||
|
Wrangler Holdco Corp. |
3,000,000 |
2,989,647 |
||||
|
Total Infrastructure Services |
5,953,608 |
|||||
|
Leisure - 4.2% |
||||||
|
Caesars Entertainment, Inc. |
2,850,000 |
2,864,147 |
||||
|
7.00%, 02/15/30 (a),(i),(j) |
5,250,000 |
5,363,768 |
||||
|
Cedar Fair LP |
2,660,000 |
2,663,277 |
||||
|
RHP Hotel Properties LP |
5,610,000 |
5,262,372 |
||||
|
Six Flags Entertainment Corp. |
2,695,000 |
2,743,887 |
||||
|
Station Casinos LLC |
6,190,000 |
5,824,249 |
||||
|
4.63%, 12/01/31 (a) |
654,000 |
583,055 |
||||
|
Vail Resorts, Inc. |
2,758,000 |
2,791,223 |
||||
|
Wynn Resorts Finance LLC / Wynn Resorts Capital Corp. |
5,200,000 |
5,397,805 |
||||
|
Total Leisure |
33,493,783 |
|||||
|
Media - 9.4% |
||||||
|
Cable One, Inc. |
1,740,000 |
1,298,721 |
||||
|
CCO Holdings LLC |
19,655,000 |
17,023,368 |
||||
|
6.38%, 09/01/29 (a),(i),(j) |
5,170,000 |
4,914,404 |
||||
|
CSC Holdings LLC |
4,480,000 |
2,793,327 |
||||
|
4.50%, 11/15/31 (a),(i),(j) |
18,284,000 |
11,794,970 |
||||
|
Directv Financing LLC |
6,700,000 |
6,558,216 |
||||
|
DISH Network Corp. |
16,735,000 |
16,408,517 |
||||
|
Sunrise FinCo I BV |
1,698,000 |
1,541,809 |
||||
|
Telenet Finance Luxembourg Notes Sarl |
3,000,000 |
2,841,909 |
||||
|
Virgin Media Secured Finance PLC |
4,675,000 |
3,963,493 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
15 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
CORPORATE CREDIT (continued) |
||||||
|
VZ Secured Financing BV |
$ |
5,775,000 |
$ |
4,925,072 |
||
|
Ziggo Bond Co. BV |
1,790,000 |
1,521,449 |
||||
|
Total Media |
75,585,255 |
|||||
|
Media Content - 0.4% |
||||||
|
Paramount Global |
3,440,000 |
2,815,106 |
||||
|
4.38%, 03/15/43 |
715,000 |
475,600 |
||||
|
Total Media Content |
3,290,706 |
|||||
|
Oil Gas Transportation & Distribution - 16.2% |
||||||
|
Antero Midstream Partners LP |
5,400,000 |
5,235,100 |
||||
|
Beazer Homes USA, Inc. |
3,125,000 |
3,118,944 |
||||
|
Buckeye Partners LP |
2,500,000 |
2,373,320 |
||||
|
4.13%, 12/01/27 (i) |
3,655,000 |
3,414,373 |
||||
|
DT Midstream, Inc. |
4,420,000 |
4,091,103 |
||||
|
Enbridge, Inc. |
8,485,000 |
7,995,895 |
||||
|
7.38% (5 yr. CMT Rate + 3.71%), 01/15/83 (c) |
825,000 |
825,758 |
||||
|
Energy Transfer LP |
5,869,000 |
5,804,358 |
||||
|
7.13% (5 yr. CMT Rate + 5.31%), Perpetual (c),(i) |
4,597,000 |
4,552,638 |
||||
|
8.61% (3 mo. Term SOFR + 3.28%), 11/01/66 (c),(i) |
4,770,000 |
4,679,496 |
||||
|
EnLink Midstream LLC |
4,175,000 |
4,087,743 |
||||
|
EnLink Midstream Partners LP |
4,755,000 |
4,714,052 |
||||
|
Enterprise Products Operating LLC |
1,460,000 |
1,396,266 |
||||
|
5.38% (3 mo. Term SOFR + 2.83%), 02/15/78 (c),(i) |
8,516,000 |
7,943,364 |
||||
|
EQM Midstream Partners LP |
8,660,000 |
8,174,303 |
||||
|
Ferrellgas LP |
1,875,000 |
1,834,221 |
||||
|
Genesis Energy LP / Genesis Energy Finance Corp. |
1,215,000 |
1,227,794 |
||||
|
8.25%, 01/15/29 |
100,000 |
103,198 |
||||
|
Global Partners LP |
2,750,000 |
2,760,783 |
||||
|
Global Partners LP / GLP Finance Corp. |
532,000 |
546,867 |
||||
|
Hess Midstream Operations LP |
2,750,000 |
2,788,112 |
____________
See Notes to Financial Statements.
|
16 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
CORPORATE CREDIT (continued) |
||||||
|
Kinetik Holdings LP |
$ |
4,440,000 |
$ |
4,375,243 |
||
|
NuStar Logistics LP |
3,255,000 |
3,227,409 |
||||
|
Parkland Corp. |
3,247,000 |
2,971,105 |
||||
|
Plains All American Pipeline LP |
7,920,000 |
7,885,218 |
||||
|
Suburban Propane Partners LP |
4,389,000 |
3,952,046 |
||||
|
Sunoco LP |
1,981,000 |
1,852,677 |
||||
|
Tallgrass Energy Partners LP |
6,169,000 |
5,760,225 |
||||
|
Targa Resources Partners LP |
5,650,000 |
5,390,447 |
||||
|
TransCanada PipeLines Ltd. |
6,663,000 |
6,076,656 |
||||
|
Transcanada Trust |
4,005,000 |
3,631,003 |
||||
|
Venture Global Calcasieu Pass LLC |
4,005,000 |
4,064,799 |
||||
|
Venture Global LNG, Inc. |
4,035,000 |
4,184,842 |
||||
|
Total Oil Gas Transportation & Distribution |
131,039,358 |
|||||
|
Real Estate - 6.4% |
||||||
|
Brandywine Operating Partnership LP |
2,335,000 |
2,423,693 |
||||
|
8.88%, 04/12/29 |
2,335,000 |
2,435,417 |
||||
|
EPR Properties |
1,846,000 |
1,541,682 |
||||
|
3.75%, 08/15/29 (i) |
3,164,000 |
2,819,931 |
||||
|
Essential Properties LP |
6,989,000 |
5,765,196 |
||||
|
Global Net Lease, Inc. |
3,705,000 |
3,246,308 |
||||
|
Iron Mountain, Inc. |
4,750,000 |
4,475,705 |
||||
|
Park Intermediate Holdings LLC / PK Domestic Property LLC / PK Finance Co.-Issuer |
2,761,000 |
2,793,693 |
||||
|
Piedmont Operating Partnership LP |
3,280,000 |
2,410,256 |
||||
|
6.88%, 07/15/29 |
3,456,000 |
3,417,168 |
||||
|
9.25%, 07/20/28 (i),(j) |
2,748,000 |
2,933,457 |
||||
|
RLJ Lodging Trust LP |
4,180,000 |
3,972,846 |
||||
|
Safehold GL Holdings LLC |
4,020,000 |
3,978,894 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
17 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
CORPORATE CREDIT (continued) |
||||||
|
SITE Centers Corp. |
$ |
2,570,000 |
$ |
2,550,889 |
||
|
Starwood Property Trust, Inc. |
2,735,000 |
2,760,605 |
||||
|
Store Capital LLC |
2,213,000 |
1,775,373 |
||||
|
XHR LP |
2,935,000 |
2,751,299 |
||||
|
Total Real Estate |
52,052,412 |
|||||
|
Telecommunication Services - 8.0% |
||||||
|
Altice France SA |
13,165,000 |
9,001,875 |
||||
|
Cablevision Lightpath LLC |
3,179,000 |
2,564,505 |
||||
|
Cogent Communications Group, Inc. |
3,390,000 |
3,246,019 |
||||
|
Frontier Communications Holdings LLC |
4,735,000 |
4,893,694 |
||||
|
8.75%, 05/15/30 (a),(j) |
1,000,000 |
1,039,730 |
||||
|
Iliad Holding SASU |
1,500,000 |
1,518,788 |
||||
|
Level 3 Financing, Inc. |
4,400,000 |
2,388,712 |
||||
|
10.50%, 05/15/30 (a),(i) |
9,246,000 |
9,156,542 |
||||
|
Rogers Communications, Inc. |
8,680,000 |
8,315,749 |
||||
|
Telecom Italia Capital SA |
7,540,000 |
7,052,162 |
||||
|
Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital LLC |
3,000,000 |
1,912,538 |
||||
|
10.50%, 02/15/28 (a),(j) |
10,688,000 |
10,466,380 |
||||
|
Vodafone Group PLC |
3,705,000 |
3,154,401 |
||||
|
Total Telecommunication Services |
64,711,095 |
|||||
|
Transportation - 0.7% |
||||||
|
BNSF Funding Trust I |
675,000 |
674,719 |
||||
|
Brightline East LLC |
5,720,000 |
5,216,022 |
||||
|
Total Transportation |
5,890,741 |
|||||
|
Utility - 9.3% |
||||||
|
AES Corp. |
3,700,000 |
3,751,968 |
||||
|
American Electric Power Co., Inc. |
6,560,000 |
6,534,371 |
||||
|
Atlantica Sustainable Infrastructure PLC |
2,596,000 |
2,540,785 |
____________
See Notes to Financial Statements.
|
18 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
CORPORATE CREDIT (continued) |
||||||
|
Calpine Corp. |
$ |
7,405,000 |
$ |
7,122,413 |
||
|
Clearway Energy Operating LLC |
5,297,000 |
4,622,610 |
||||
|
CMS Energy Corp. |
2,891,000 |
2,646,677 |
||||
|
Dominion Energy, Inc. |
3,000,000 |
2,813,945 |
||||
|
6.88% (5 yr. CMT Rate + 2.39%), 02/01/55 (c) |
1,360,000 |
1,390,994 |
||||
|
Duke Energy Corp. |
1,285,000 |
1,273,593 |
||||
|
Electricite de France SA |
2,400,000 |
2,610,953 |
||||
|
Emera, Inc. |
7,600,000 |
7,549,930 |
||||
|
Entergy Corp. |
5,000,000 |
4,956,558 |
||||
|
Ferrellgas LP / Ferrellgas Finance Corp. |
2,815,000 |
2,592,006 |
||||
|
NRG Energy, Inc. |
2,159,000 |
2,154,655 |
||||
|
10.25% (5 yr. CMT Rate + 5.92%), Perpetual (a),(c) |
3,750,000 |
4,101,094 |
||||
|
PPL Capital Funding, Inc. |
7,618,000 |
7,557,808 |
||||
|
Sempra |
10,765,000 |
10,700,329 |
||||
|
Total Utility |
74,920,689 |
|||||
|
TOTAL CORPORATE CREDIT |
556,274,961 |
|||||
|
TERM LOANS - 5.0% |
||||||
|
Cablevision Lightpath LLC |
2,500,000 |
2,368,750 |
||||
|
Carnival Corp., First Lien |
2,289,126 |
2,296,291 |
||||
|
Cedar Fair LP, First Lien |
1,000,000 |
996,880 |
||||
|
Cogeco Communications USA II LP, First Lien |
1,995,000 |
1,891,918 |
||||
|
Cushman & Wakefield US Borrower LLC, First Lien |
2,992,500 |
3,007,463 |
||||
|
DaVita, Inc. |
3,000,000 |
2,990,250 |
||||
|
Fertitta Entertainment LLC / NV, First Lien |
5,489,822 |
5,493,280 |
||||
|
Frontier Communications Holdings LLC, First Lien |
7,157,761 |
7,145,235 |
||||
|
Greystar Real Estate Partners LLC, First Lien |
5,460,063 |
5,480,538 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
19 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Principal |
|
|||||
|
TERM LOANS (continued) |
||||||
|
Lumen Technologies, Inc., First Lien |
$ |
1,500,000 |
$ |
1,029,375 |
||
|
7.81% (1 mo. Term SOFR + 2.35%), 04/15/30 (c) |
1,500,000 |
1,000,320 |
||||
|
Opry Entertainment (OEG) T/L B (6/24) |
1,500,000 |
1,500,000 |
||||
|
Select Medical Corp., First Lien |
2,700,000 |
2,698,866 |
||||
|
Sunrise Financing Partnership |
2,750,000 |
2,697,942 |
||||
|
Vistra Energy Corp. |
25,848 |
317 |
||||
|
TOTAL TERM LOANS |
40,597,425 |
|
Shares |
|
|||
|
PREFERRED STOCKS - 2.9% |
||||
|
Net Lease - 0.7% |
||||
|
Realty Income Corp., Series A, 6.00% |
231,243 |
5,575,269 |
||
|
Oil Gas Transportation & Distribution - 0.1% |
||||
|
Global Partners LP, Series B, 9.50% |
32,100 |
836,365 |
||
|
Real Estate - 0.5% |
||||
|
EPR Properties, Series E, 9.00% |
136,519 |
3,807,515 |
||
|
Retail - 0.3% |
||||
|
Kimco Realty Corp., Series N, 7.25% |
46,600 |
2,542,962 |
||
|
Telecommunication Services - 0.2% |
||||
|
Liberty Broadband Corp., Series A, 7.00% |
73,185 |
1,651,054 |
||
|
Utility - 1.1% |
||||
|
SCE Trust IV, Series J, 5.38% |
285,089 |
6,716,697 |
||
|
SCE Trust V, Series K, 5.45% (i) |
92,789 |
2,308,590 |
||
|
Total Utility |
9,025,287 |
|||
|
TOTAL PREFERRED STOCKS |
23,438,452 |
|||
|
COMMON STOCKS - 2.7% |
||||
|
Airports - 0.2% |
||||
|
Aena SME SA (a),(b),(i) |
2,558 |
517,988 |
||
|
Auckland International Airport Ltd. (b) |
76,590 |
355,946 |
||
|
Grupo Aeroportuario del Pacifico SAB de CV (b) |
23,205 |
364,684 |
||
|
Japan Airport Terminal Co. Ltd. (b),(i) |
8,284 |
283,236 |
||
|
Total Airports |
1,521,854 |
____________
See Notes to Financial Statements.
|
20 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Shares |
|
||||
|
COMMON STOCKS (continued) |
|||||
|
Clean Technology - 0.0% |
|||||
|
Carrier Global Corp. (i) |
973 |
$ |
61,377 |
||
|
Itron, Inc. (i),(k) |
395 |
39,089 |
|||
|
Nexans SA (b),(i) |
488 |
53,708 |
|||
|
Trane Technologies PLC (b),(i) |
132 |
43,419 |
|||
|
Total Clean Technology |
197,593 |
||||
|
Communications - 0.2% |
|||||
|
Cellnex Telecom SA (a),(b),(i) |
11,465 |
372,893 |
|||
|
Crown Castle, Inc. (i) |
6,914 |
675,498 |
|||
|
SBA Communications Corp. (i) |
2,017 |
395,937 |
|||
|
Total Communications |
1,444,328 |
||||
|
Construction Materials - 0.0% |
|||||
|
Ferrovial SE (b),(i) |
5,099 |
198,085 |
|||
|
Data Centers - 0.0% |
|||||
|
Digital Realty Trust, Inc. (i) |
223 |
33,907 |
|||
|
Equinix, Inc. (i) |
45 |
34,047 |
|||
|
Keppel DC REIT (b) |
6,300 |
8,352 |
|||
|
Total Data Centers |
76,306 |
||||
|
Diversified - 0.0% |
|||||
|
Activia Properties, Inc. (b),(i) |
3 |
6,796 |
|||
|
CapitaLand Integrated Commercial Trust (b) |
13,580 |
19,772 |
|||
|
Charter Hall Group (b),(i) |
812 |
6,038 |
|||
|
GPT Group (b),(i) |
7,273 |
19,391 |
|||
|
Star Asia Investment Corp. (b),(i) |
6 |
2,229 |
|||
|
Stockland (b),(i) |
3,900 |
10,802 |
|||
|
Sun Hung Kai Properties Ltd. (b) |
1,800 |
15,596 |
|||
|
Tokyu Fudosan Holdings Corp. (b),(i) |
990 |
6,646 |
|||
|
Total Diversified |
87,270 |
||||
|
Electricity Transmission & Distribution - 0.3% |
|||||
|
CenterPoint Energy, Inc. (i) |
17,170 |
531,927 |
|||
|
Equatorial Energia SA (b) |
52,071 |
285,503 |
|||
|
PG&E Corp. (i) |
28,625 |
499,792 |
|||
|
Sempra (i) |
9,956 |
757,253 |
|||
|
Total Electricity Transmission & Distribution |
2,074,475 |
||||
|
Gas Utilities - 0.1% |
|||||
|
China Resources Gas Group Ltd. (b) |
99,194 |
347,276 |
|||
|
ENN Energy Holdings Ltd. (b) |
28,181 |
232,136 |
|||
|
NiSource, Inc. (i) |
17,956 |
517,312 |
|||
|
Total Gas Utilities |
1,096,724 |
||||
|
Gathering & Processing - 0.0% |
|||||
|
Hess Midstream LP (i) |
3,113 |
113,438 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
21 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Shares |
|
||||
|
COMMON STOCKS (continued) |
|||||
|
Health Care - 0.0% |
|||||
|
CareTrust REIT, Inc. (i) |
603 |
$ |
15,135 |
||
|
Omega Healthcare Investors, Inc. (i) |
555 |
19,009 |
|||
|
Ventas, Inc. (i) |
343 |
17,582 |
|||
|
Welltower, Inc. (i) |
343 |
35,758 |
|||
|
Total Health Care |
87,484 |
||||
|
Hotel - 0.0% |
|||||
|
DiamondRock Hospitality Co. (i) |
616 |
5,205 |
|||
|
Invincible Investment Corp. (b),(i) |
22 |
8,942 |
|||
|
Total Hotel |
14,147 |
||||
|
Industrial - 0.0% |
|||||
|
CTP NV (a),(b),(i) |
745 |
12,713 |
|||
|
Goodman Group (b),(i) |
400 |
9,228 |
|||
|
Mitsubishi Estate Logistics REIT Investment Corp. (b),(i) |
3 |
7,114 |
|||
|
Prologis, Inc. (i) |
629 |
70,643 |
|||
|
Segro PLC (b),(i) |
1,464 |
16,564 |
|||
|
Tritax Big Box REIT PLC (b),(i) |
5,235 |
10,235 |
|||
|
Total Industrial |
126,497 |
||||
|
Integrated Utilities/Renewables - 0.1% |
|||||
|
Entergy Corp. (i) |
4,820 |
515,740 |
|||
|
Midstream - 0.3% |
|||||
|
AltaGas Ltd. (b),(i) |
14,606 |
330,011 |
|||
|
Cheniere Energy, Inc. (i) |
4,067 |
711,033 |
|||
|
Koninklijke Vopak NV (b),(i) |
4,500 |
186,958 |
|||
|
ONEOK, Inc. (i) |
709 |
57,819 |
|||
|
Targa Resources Corp. (i) |
4,749 |
611,576 |
|||
|
Williams Cos., Inc./The (i) |
13,202 |
561,085 |
|||
|
Total Midstream |
2,458,482 |
||||
|
Net Lease - 0.0% |
|||||
|
Agree Realty Corp. (i) |
381 |
23,599 |
|||
|
Essential Properties Realty Trust, Inc. (i) |
902 |
24,994 |
|||
|
NETSTREIT Corp. (i) |
595 |
9,580 |
|||
|
VICI Properties, Inc. (i) |
822 |
23,542 |
|||
|
Total Net Lease |
81,715 |
||||
|
Office - 0.0% |
|||||
|
BXP, Inc. (i) |
210 |
12,928 |
|||
|
Cousins Properties, Inc. (i) |
400 |
9,260 |
|||
|
Gecina SA (b),(i) |
118 |
10,893 |
|||
|
Hongkong Land Holdings Ltd. (b) |
2,800 |
9,021 |
|||
|
KDX Realty Investment Corp. (b) |
5 |
4,900 |
|||
|
Mitsubishi Estate Co. Ltd. (b),(i) |
640 |
10,076 |
|||
|
Mitsui Fudosan Company Ltd. (b),(i) |
2,636 |
24,261 |
|||
|
Total Office |
81,339 |
____________
See Notes to Financial Statements.
|
22 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Shares |
|
||||
|
COMMON STOCKS (continued) |
|||||
|
Oil Gas Transportation & Distribution - 0.0% |
|||||
|
Thunderbird Resources Equity, Inc. (Acquired 4/1/2015, cost $1,114,211) (d),(e),(k) |
11 |
$ |
11 |
||
|
Pipeline (MLP) - 0.1% |
|||||
|
Energy Transfer LP (i) |
7,517 |
121,926 |
|||
|
Enterprise Products Partners LP (i) |
4,145 |
120,122 |
|||
|
MPLX LP (i) |
2,681 |
114,184 |
|||
|
Pembina Pipeline Corp. (b),(i) |
3,195 |
118,471 |
|||
|
Plains All American Pipeline LP (i) |
6,754 |
120,626 |
|||
|
TC Energy Corp. (b) |
3,051 |
115,633 |
|||
|
Western Midstream Partners LP (i) |
3,140 |
124,752 |
|||
|
Total Pipeline (MLP) |
835,714 |
||||
|
Pipeline Transportation / Natural Gas - 0.0% |
|||||
|
DT Midstream, Inc. (i) |
862 |
61,228 |
|||
|
Pipelines - 0.1% |
|||||
|
TC Energy Corp. (b),(i) |
11,270 |
427,223 |
|||
|
Rail - 0.2% |
|||||
|
Canadian Pacific Kansas City Ltd. (b),(i) |
4,300 |
338,644 |
|||
|
CSX Corp. (i) |
11,040 |
369,288 |
|||
|
East Japan Railway Co. (b),(i) |
18,411 |
306,537 |
|||
|
Rumo SA (b) |
70,760 |
261,390 |
|||
|
Total Rail |
1,275,859 |
||||
|
Renewable Power & Infrastructure - 0.3% |
|||||
|
Boralex, Inc. (b),(i) |
3,034 |
74,317 |
|||
|
Clearway Energy, Inc. (i) |
1,409 |
34,788 |
|||
|
E.ON SE (b),(i) |
5,396 |
70,918 |
|||
|
EDP Renovaveis SA (b),(i) |
3,500 |
48,906 |
|||
|
Enel SpA (b),(i) |
15,401 |
106,865 |
|||
|
Eversource Energy (i) |
9,690 |
549,520 |
|||
|
First Solar, Inc. (i),(k) |
131 |
29,535 |
|||
|
Fortis, Inc. (b),(i) |
853 |
33,152 |
|||
|
Iberdrola SA (b),(i) |
7,291 |
94,600 |
|||
|
Mercury NZ Ltd. (b) |
12,802 |
51,192 |
|||
|
National Grid PLC (b),(i) |
56,377 |
629,512 |
|||
|
NEXTracker, Inc. (i),(k) |
790 |
37,035 |
|||
|
Orsted A/S (a),(b),(k) |
3,790 |
201,330 |
|||
|
Redeia Corp. SA (b),(i) |
17,339 |
303,197 |
|||
|
SSE PLC (b),(i) |
2,112 |
47,697 |
|||
|
Vestas Wind Systems A/S (b),(k) |
1,255 |
29,101 |
|||
|
Total Renewable Power & Infrastructure |
2,341,665 |
||||
|
Renewables/Electric Generation - 0.6% |
|||||
|
CLP Holdings Ltd. (b) |
39,419 |
318,825 |
|||
|
CMS Energy Corp. (i) |
9,377 |
558,213 |
|||
|
Duke Energy Corp. (i) |
8,553 |
857,267 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
23 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Shares |
|
||||
|
COMMON STOCKS (continued) |
|||||
|
NextEra Energy, Inc. (i) |
20,949 |
$ |
1,483,399 |
||
|
Public Service Enterprise Group, Inc. (i) |
8,623 |
635,515 |
|||
|
RWE AG (b),(i) |
9,902 |
339,692 |
|||
|
Serena Energia SA (b),(k) |
26,989 |
42,728 |
|||
|
Xcel Energy, Inc. (i) |
7,221 |
385,673 |
|||
|
Total Renewables/Electric Generation |
4,621,312 |
||||
|
Residential - 0.0% |
|||||
|
American Homes 4 Rent (i) |
579 |
21,516 |
|||
|
Boardwalk Real Estate Investment Trust (b),(i) |
91 |
4,688 |
|||
|
Comforia Residential REIT, Inc. (b),(i) |
6 |
11,864 |
|||
|
Equity LifeStyle Properties, Inc. (i) |
380 |
24,749 |
|||
|
Essex Property Trust, Inc. (i) |
108 |
29,398 |
|||
|
Fastighets AB Balder (b),(k) |
1,410 |
9,679 |
|||
|
InterRent Real Estate Investment Trust (b),(i) |
702 |
6,112 |
|||
|
Mid-America Apartment Communities, Inc. (i) |
80 |
11,409 |
|||
|
TAG Immobilien AG (b),(i),(k) |
461 |
6,738 |
|||
|
UDR, Inc. (i) |
660 |
27,159 |
|||
|
UNITE Group PLC (b),(i) |
958 |
10,808 |
|||
|
Vonovia SE (b),(i) |
522 |
14,855 |
|||
|
Total Residential |
178,975 |
||||
|
Retail - 0.0% |
|||||
|
Capital & Counties Properties PLC (b),(i) |
5,794 |
10,133 |
|||
|
Eurocommercial Properties NV (b) |
110 |
2,654 |
|||
|
Kite Realty Group Trust (i) |
804 |
17,994 |
|||
|
Regency Centers Corp. (i) |
350 |
21,770 |
|||
|
Simon Property Group, Inc. (i) |
204 |
30,967 |
|||
|
Tanger, Inc. (i) |
380 |
10,302 |
|||
|
Unibail-Rodamco-Westfield (b),(i) |
240 |
18,966 |
|||
|
Total Retail |
112,786 |
||||
|
Self Storage - 0.0% |
|||||
|
Extra Space Storage, Inc. (i) |
233 |
36,211 |
|||
|
Public Storage |
62 |
17,834 |
|||
|
Total Self Storage |
54,045 |
||||
|
Specialty - 0.0% |
|||||
|
Iron Mountain, Inc. (i) |
130 |
11,651 |
|||
|
Toll Roads - 0.1% |
|||||
|
Sacyr SA (b),(i) |
40,716 |
143,585 |
|||
|
Transurban Group (b),(i) |
104,057 |
858,215 |
|||
|
Total Toll Roads |
1,001,800 |
||||
|
Water - 0.1% |
|||||
|
Pennon Group PLC (b),(i) |
25,542 |
185,457 |
|||
|
Severn Trent PLC (b),(i) |
10,081 |
303,430 |
|||
|
Total Water |
488,887 |
____________
See Notes to Financial Statements.
|
24 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Shares |
|
|||||
|
COMMON STOCKS (continued) |
||||||
|
Water & Waste Infrastructure - 0.0% |
||||||
|
American Water Works Company, Inc. (i) |
560 |
$ |
72,330 |
|||
|
Republic Services, Inc. (i) |
307 |
59,662 |
||||
|
Veolia Environment SA (b),(i) |
1,758 |
52,657 |
||||
|
Waste Connections, Inc. (b),(i) |
432 |
75,796 |
||||
|
Waste Management, Inc. (i) |
288 |
61,442 |
||||
|
Xylem, Inc. (i) |
274 |
37,163 |
||||
|
Total Water & Waste Infrastructure |
359,050 |
|||||
|
TOTAL COMMON STOCKS |
21,945,683 |
|||||
|
MONEY MARKET FUND - 2.7% |
21,503,965 |
21,503,965 |
||||
|
TOTAL MONEY MARKET FUND |
21,503,965 |
|||||
|
Total Investments - 125.3% |
1,011,198,929 |
|||||
|
Liabilities in Excess of Other Assets - (25.3)% |
(204,286,420 |
) |
||||
|
TOTAL NET ASSETS - 100.0% |
$ |
806,912,509 |
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, 2024, the total value of all such securities was $582,088,855 or 72.1% 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) |
- |
These securities are characterized as Level 3 securities within the disclosure hierarchy. Level 3 security values are determined using significant unobservable inputs. As of June 30, 2024, the total value of all such securities was $19,219,082 or 2.4% of net assets. |
||
|
(e) |
- |
Restricted security. Purchased in a private placement transaction; resale to the public may require registration. As of June 30, 2024, the total value of all such securities was $26,001,814 or 3.2% of net assets. |
||
|
(f) |
- |
The rate shown represents the seven-dayyield as of June 30, 2024. |
||
|
(g) |
- |
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. |
||
|
(h) |
- |
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, 2024. |
||
|
(i) |
- |
All or a portion of security has been pledged as collateral for credit facility. As of June 30, 2024, the total value of the collateral was $289,482,645. |
||
|
(j) |
- |
Portion or entire principal amount delivered as collateral for reverse repurchase agreements. As of June 30, 2024, the total value of the collateral was $67,423,877. |
||
|
(k) |
- |
Non-incomeproducing security. |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
25 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
Forward Currency Contracts:
As of June 30, 2024, the following forward currency contracts were outstanding:
|
Settlement Date |
Currency Purchased |
Currency Sold |
Counterparty |
Unrealized |
||||||||||
|
7/31/2024 |
1,009,203 |
USD |
925,000 |
EUR |
J.P. Morgan Securities, Inc. |
$ |
16,977 |
|||||||
|
8/7/2024 |
4,832,908 |
USD |
3,840,052 |
GBP |
State Street Bank & Trust Co. |
(22,652 |
) |
|||||||
|
8/7/2024 |
5,300 |
EUR |
5,756 |
USD |
State Street Bank & Trust Co. |
(69 |
) |
|||||||
|
8/7/2024 |
2,172,215 |
USD |
2,007,324 |
EUR |
State Street Bank & Trust Co. |
18,234 |
||||||||
|
$ |
12,490 |
Abbreviations:
|
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 |
||
|
PLC |
- |
Public Limited Company |
||
|
REIT |
- |
Real Estate Investment Trust |
||
|
SOFR |
- |
Secured Overnight Financial Rate |
||
|
SONIA |
- |
Sterling Overnight Index Average |
Currencies:
|
GBP(£) |
- |
British Pound |
||
|
EUR(€) |
- |
Euro |
||
|
USD($) |
- |
US Dollar |
____________
See Notes to Financial Statements.
|
26 |
Brookfield Public Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. June 30, 2024 |
|
Assets |
||||
|
Investments in securities, at value (Cost $1,069,406,203) |
$ |
1,011,198,929 |
||
|
Cash |
15,257 |
|||
|
Foreign currency, at value (Cost $86,005) |
85,139 |
|||
|
Interest and dividends receivable |
11,627,923 |
|||
|
Receivable for investments sold |
9,021 |
|||
|
Unrealized appreciation on forward currency contracts (Note 3) |
35,211 |
|||
|
Deferred offering costs (Note 8) |
96,919 |
|||
|
Prepaid expenses |
30,626 |
|||
|
Total assets |
1,023,099,025 |
|||
|
Liabilities |
||||
|
Payable for credit facility (Note 7) |
152,000,000 |
|||
|
Reverse repurchase agreements (Note 7) |
52,119,567 |
|||
|
Interest payable for credit facility and reverse repurchase agreements (Note 7) |
1,138,386 |
|||
|
Payable for investments purchased |
9,721,101 |
|||
|
Unrealized depreciation on forward currency contracts (Note 3) |
22,721 |
|||
|
Investment advisory fees payable (Note 5) |
830,747 |
|||
|
Administration fees payable (Note 5) |
124,611 |
|||
|
Accrued expenses |
229,383 |
|||
|
Total liabilities |
216,186,516 |
|||
|
Net Assets |
$ |
806,912,509 |
||
|
Composition of Net Assets: |
||||
|
Paid-in capital |
$ |
1,010,481,177 |
||
|
Accumulated losses |
(203,568,668 |
) |
||
|
Net Assets |
$ |
806,912,509 |
||
|
Shares Outstanding and Net Asset Value Per Share: |
||||
|
Common shares outstanding |
55,280,671 |
|||
|
Net asset value per share |
$ |
14.60 |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
27 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. For the Six Months Ended June 30, 2024 |
|
Investment Income (Note 2): |
||||
|
Interest (net of foreign withholding tax of $43,167) |
$ |
34,693,084 |
||
|
Dividends and distributions (net of foreign withholding tax of $21,862) |
1,152,963 |
|||
|
Less return of capital distributions |
(67,784 |
) |
||
|
Total investment income |
35,778,263 |
|||
|
Expenses: |
||||
|
Investment advisory fees (Note 5) |
4,962,325 |
|||
|
Administration fees (Note 5) |
744,349 |
|||
|
Offering costs (Note 8) |
187,946 |
|||
|
Directors' fees |
147,294 |
|||
|
Reports to shareholders |
104,434 |
|||
|
Fund accounting fees |
103,252 |
|||
|
Miscellaneous |
69,592 |
|||
|
Legal fees |
59,852 |
|||
|
Custodian fees |
52,711 |
|||
|
Audit and tax services |
51,752 |
|||
|
Insurance |
38,674 |
|||
|
Registration fees |
31,128 |
|||
|
Transfer agent fees |
29,446 |
|||
|
Total operating expenses |
6,582,755 |
|||
|
Interest expense on credit facility and reverse repurchase agreements (Note 7) |
5,738,227 |
|||
|
Total expenses |
12,320,982 |
|||
|
Net investment income |
23,457,281 |
|||
|
Net realized gain (loss) on: |
||||
|
Investments |
(5,102,667 |
) |
||
|
Foreign currency transactions |
34,212 |
|||
|
Forward currency contracts |
(31,623 |
) |
||
|
Net realized loss |
(5,100,078 |
) |
||
|
Net change in unrealized appreciation (depreciation) on: |
||||
|
Investments |
1,832,254 |
|||
|
Foreign currency |
(2,158 |
) |
||
|
Foreign currency translations |
(4,515 |
) |
||
|
Forward currency contracts |
164,955 |
|||
|
Net change in unrealized appreciation |
1,990,536 |
|||
|
Net realized and unrealized loss |
(3,109,542 |
) |
||
|
Net increase in net assets resulting from operations |
$ |
20,347,739 |
____________
See Notes to Financial Statements.
|
28 |
BrookfieldPublic Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. |
|
For the Six |
For the |
|||||||
|
Increase (Decrease) in Net Assets Resulting from Operations: |
||||||||
|
Net investment income |
$ |
23,457,281 |
$ |
41,774,796 |
||||
|
Net realized gain (loss) |
(5,100,078 |
) |
287,375 |
|||||
|
Net change in unrealized appreciation |
1,990,536 |
39,748,147 |
||||||
|
Net increase in net assets resulting from operations |
20,347,739 |
81,810,318 |
||||||
|
Distributions to Shareholders: |
||||||||
|
Distributable earnings |
(39,221,874 |
) |
(42,201,961 |
) |
||||
|
Return of capital |
- |
(77,785,806 |
) |
|||||
|
Total distributions paid |
(39,221,874 |
) |
(119,987,767 |
) |
||||
|
Capital Share Transactions: |
||||||||
|
Proceeds from shares sold, net of offering costs (Note 8) |
- |
2,557,447 |
||||||
|
Reinvestment of distributions |
- |
3,675,180 |
||||||
|
Cost of shares repurchased (Note 8) |
(2,212,246 |
) |
(7,787,752 |
) |
||||
|
Net decrease in net assets from capital share transactions |
(2,212,246 |
) |
(1,555,125 |
) |
||||
|
Total decrease in net assets |
(21,086,381 |
) |
(39,732,574 |
) |
||||
|
Net Assets: |
||||||||
|
Beginning of period |
827,998,890 |
867,731,464 |
||||||
|
End of period |
$ |
806,912,509 |
$ |
827,998,890 |
||||
|
Share Transactions: |
||||||||
|
Shares sold (Note 8) |
- |
145,617 |
||||||
|
Shares reinvested |
- |
229,027 |
||||||
|
Shares repurchased (Note 8) |
(178,402 |
) |
(623,411 |
) |
||||
|
Net decrease in shares outstanding |
(178,402 |
) |
(248,767 |
) |
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
29 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. For the Six Months Ended June 30, 2024 |
|
Increase (Decrease) in Cash: |
||||
|
Cash flows provided by (used for) operating activities: |
||||
|
Net increase in net assets resulting from operations |
$ |
20,347,739 |
||
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: |
||||
|
Purchases of long-term portfolio investments and principal payups |
(307,770,580 |
) |
||
|
Proceeds from disposition of long-term portfolio investments and principal paydowns |
259,164,294 |
|||
|
Net purchases and sales of short-term portfolio investments |
25,554,848 |
|||
|
Return of capital distributions from portfolio investments |
67,784 |
|||
|
Increase in interest and dividends receivable |
(254,580 |
) |
||
|
Decrease in receivable for investments sold |
1,236,989 |
|||
|
Decrease in deferred offering costs |
91,027 |
|||
|
Increase in prepaid expenses |
(10,548 |
) |
||
|
Increase in interest payable for credit facility and reverse repurchase agreements |
175,415 |
|||
|
Increase in payable for investments purchased |
7,195,103 |
|||
|
Decrease in investment advisory fees payable |
(10,807 |
) |
||
|
Decrease in administration fees payable |
(1,621 |
) |
||
|
Increase in accrued expenses |
55,410 |
|||
|
Net accretion of discount on investments and other adjustments to cost |
(931,775 |
) |
||
|
Net change in unrealized appreciation on investments, foreign currency and forward currency contracts |
(1,995,051 |
) |
||
|
Net realized loss on investment transactions |
5,102,667 |
|||
|
Net cash provided by operating activities |
8,016,314 |
|||
|
Cash flows provided by (used for) financing activities: |
||||
|
Cash provided by reverse repurchase agreements |
34,921,567 |
|||
|
Cash used for shares repurchased |
(3,792,729 |
) |
||
|
Distributions paid to shareholders, net of reinvestments |
(39,221,874 |
) |
||
|
Net cash used for financing activities |
(8,093,036 |
) |
||
|
Effect of exchange rate changes on cash |
(2,158 |
) |
||
|
Net decrease in cash |
(78,880 |
) |
||
|
Cash at beginning of period |
179,276 |
|||
|
Cash at end of period |
$ |
100,396 |
||
|
Supplemental Disclosure of Cash Flow Information: |
||||
|
Interest payments on the credit facility and reverse repurchase agreements for the six months ended June 30, 2024 totaled $5,562,812. |
||||
|
Reconciliation of Cash at the End of Period to The Statement of Assets and Liabilities: |
||||
|
Cash |
$ |
15,257 |
||
|
Foreign currency |
85,139 |
|||
|
Cash at end of period |
$ |
100,396 |
____________
See Notes to Financial Statements.
|
30 |
BrookfieldPublic Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. |
|
For the Six Months Ended |
|
For the |
||||||||||||||||||||||||||
|
2023 |
2022 |
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||||||||
|
Per Share Operating Performance: |
||||||||||||||||||||||||||||
|
Net asset value, beginning of period |
$ |
14.93 |
$ 15.58 |
$ 20.12 |
$ 20.02 |
$ 23.21 |
$ 22.07 |
$ 25.15 |
$ 25.14 |
$ 25.00 |
||||||||||||||||||
|
Net investment income2 |
0.42 |
0.75 |
0.76 |
0.78 |
0.80 |
1.10 |
1.52 |
1.74 |
0.15 |
|||||||||||||||||||
|
Net realized and change in unrealized gain (loss) |
(0.04) |
0.75 |
(2.91 |
) |
1.71 |
(1.60 |
) |
2.43 |
(2.21 |
) |
0.66 |
0.19 |
||||||||||||||||
|
Net increase (decrease) in net asset value resulting from operations |
0.38 |
1.50 |
(2.15 |
) |
2.49 |
(0.80 |
) |
3.53 |
(0.69 |
) |
2.40 |
0.34 |
||||||||||||||||
|
Distributions from net investment income |
(0.71 |
) |
(0.76 |
) |
(0.74 |
) |
(0.92 |
) |
(0.68 |
) |
(1.30 |
) |
(1.53 |
) |
(1.84 |
) |
(0.15 |
) |
||||||||||
|
Return of capital distributions |
- |
(1.39 |
) |
(1.65 |
) |
(1.47 |
) |
(1.71 |
) |
(1.09 |
) |
(0.86 |
) |
(0.55 |
) |
(0.05 |
) |
|||||||||||
|
Total distributions paid* |
(0.71 |
) |
(2.15 |
) |
(2.39 |
) |
(2.39 |
) |
(2.39 |
) |
(2.39 |
) |
(2.39 |
) |
(2.39 |
) |
(0.20 |
) |
||||||||||
|
Net asset value, end of period |
$ 14.60 |
$ 14.93 |
$ 15.58 |
$ 20.12 |
$ 20.02 |
$ 23.21 |
$ 22.07 |
$ 25.15 |
$ 25.14 |
|||||||||||||||||||
|
Market price, end of period |
$ 12.76 |
$ 12.81 |
$ 16.15 |
$ 21.11 |
$ 17.83 |
$ 21.35 |
$ 19.07 |
$ 23.37 |
$ 22.31 |
|||||||||||||||||||
|
Total Investment Return based on Net Asset Value#,3 |
2.60 |
% |
10.52 |
% |
(11.13 |
)% |
13.08 |
% |
(2.51 |
)% |
16.42 |
% |
(3.08 |
)% |
9.88 |
% |
1.36 |
% |
||||||||||
|
Total Investment Return based on Market Price†,3 |
5.22 |
% |
(8.48 |
)% |
(12.66 |
)% |
33.06 |
% |
(4.16 |
)% |
24.79 |
% |
(9.12 |
)% |
15.94 |
% |
0.50 |
%4 |
||||||||||
|
Ratios to Average Net Assets/ |
||||||||||||||||||||||||||||
|
Net assets, end of period (000s) |
$806,913 |
$827,999 |
$867,731 |
$1,008,191 |
$878,588 |
$846,429 |
$805,294 |
$917,653 |
$917,593 |
|||||||||||||||||||
|
Operating expenses excluding interest expense5,6 |
1.63 |
% |
1.65 |
% |
1.76 |
% |
1.80 |
% |
1.77 |
% |
1.61 |
% |
1.63 |
% |
1.60 |
% |
1.70 |
% |
||||||||||
|
Interest expense5 |
1.42 |
% |
1.58 |
% |
1.00 |
% |
0.33 |
% |
0.47 |
% |
0.93 |
% |
0.93 |
% |
0.58 |
% |
0.60 |
% |
||||||||||
|
Total expenses5,6 |
3.05 |
% |
3.23 |
% |
2.76 |
% |
2.13 |
% |
2.24 |
% |
2.54 |
% |
2.56 |
% |
2.18 |
% |
2.30 |
% |
||||||||||
|
Net expenses, including fee waivers and reimbursement and excluding interest expense5,6 |
1.63 |
% |
1.65 |
% |
1.76 |
% |
1.80 |
% |
1.77 |
% |
1.61 |
% |
1.08 |
% |
1.03 |
% |
1.03 |
% |
||||||||||
|
Net expenses including waivers and reimbursement5,6 |
3.05 |
% |
3.23 |
% |
2.76 |
% |
2.13 |
% |
2.24 |
% |
2.54 |
% |
2.00 |
% |
1.61 |
% |
1.63 |
% |
||||||||||
|
Net investment income5,6 |
5.80 |
% |
4.99 |
% |
4.38 |
% |
3.88 |
% |
4.08 |
% |
4.69 |
% |
6.31 |
% |
6.84 |
% |
8.13 |
% |
||||||||||
|
Net investment income, excluding the effect of fee waivers and reimbursement5,6 |
5.80 |
% |
4.99 |
% |
4.38 |
% |
3.88 |
% |
4.08 |
% |
4.69 |
% |
5.76 |
% |
6.27 |
% |
7.46 |
% |
||||||||||
|
Portfolio turnover rate3 |
27 |
% |
35 |
% |
43 |
% |
65 |
% |
87 |
% |
46 |
% |
35 |
% |
43 |
% |
15 |
%7 |
* Distributions for annual periods determined in accordance with federal income tax regulations.
# Total investment return based on net asset value ("NAV") is the combination of changes in NAV, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The actual reinvestment price for dividends declared in the period may often be based on the Fund's market price (and not its NAV), and therefore may be different from the price used in the calculation. Total investment return excludes the effects of sales charges or contingent deferred sales charges, if applicable.† Total investment return based on market price is the combination of changes in the New York Stock Exchange ("NYSE") market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The actual reinvestment for dividends declared in the period may take place over several days as described in the Fund's dividend reinvestment plan, and in some instances may not be based on the market price. Total investment return excludes the effect of broker commissions.1 Commencement of operations was December 5, 2016.
2 Per share amounts presented are based on average shares outstanding throughout the period indicated.
3 Not annualized for periods less than one year.
4 Total investment return based on market price is calculated based on first trade price of $22.40 on December 5, 2016.
5 Annualized for periods less than one year.
6 The operating expenses limitation agreement expired pursuant to its terms on December 4, 2018.
7 For the portfolio turnover calculation, portfolio purchases and sales of the Brookfield Mortgage Opportunity Income Fund Inc., Brookfield High Income Fund Inc. and Brookfield Total Return Fund Inc. made prior to the Reorganizations into the Brookfield Real Assets Income Fund Inc. have been excluded from the numerator and the monthly average value of securities used in the denominator reflects the combined market value after the Reorganizations.
____________
See Notes to Financial Statements.
|
2024 Semi-AnnualReport |
31 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. |
The following table sets forth information regarding the Fund's outstanding senior securities as of the end of each of the Fund's last ten fiscal years, as applicable.
|
Fiscal or Period End |
Total Amount |
Asset |
Involuntary |
Average Market |
Type of Senior Security |
|
June 30, 20242 |
$204,119,567 |
$4,953 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
|
December 31, 2023 |
169,198,000 |
5,894 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
|
December 31, 2022 |
315,567,000 |
3,750 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
|
December 31, 2021 |
404,957,190 |
3,490 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
|
December 31, 2020 |
317,580,941 |
3,767 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
|
December 31, 2019 |
242,192,000 |
4,495 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
|
December 31, 2018 |
280,799,762 |
3,868 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
|
December 31, 2017 |
259,395,471 |
4,538 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
|
December 31, 20163 |
302,682,176 |
4,032 |
N/A |
N/A |
Credit Facility, Reverse Repurchase Agreement |
____________
1 Calculated by subtracting the Fund's total liabilities (not including borrowings) from the Fund's total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness.
2 For the six months ended June 30, 2024 (unaudited).
3 Commencement of operations was December 5, 2016.
____________
See Notes to Financial Statements.
|
32 |
BrookfieldPublic Securities Group LLC |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. Notes to Financial Statements (Unaudited) June 30, 2024 |
1. Organization
Brookfield Real Assets Income Fund Inc. (the "Fund") is a diversified, closed-endmanagement 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"), an indirect wholly-ownedsubsidiary of Brookfield Asset Management ULC, an unlimited liability company formed under the laws of British Columbia, Canada, 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-5under 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-5under the 1940 Act.
Investments in equity securities listed or traded on any securities exchange or traded in the over-the-countermarket 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 to calculate the Fund's net asset value ("NAV") may differ from quoted or official closing prices. Investments in open-endregistered investment companies, if any, are valued at the NAV as reported by those investment companies.
|
2024 Semi-AnnualReport |
33 |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
Debt securities, including U.S. government securities, listed corporate bonds, other fixed income and asset-backedsecurities, 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-dealersor 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-termdebt 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-counterfinancial 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-dealeror 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-tierhierarchy 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 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.
|
34 |
BrookfieldPublic Securities Group LLC |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
The three-tierhierarchy 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, 2024:
|
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||
|
U.S. Government & Agency Obligations |
$ |
- |
$ |
1,157,266 |
$ |
- |
$ |
1,157,266 |
||||
|
Securitized Credit |
- |
327,062,106 |
19,219,071 |
346,281,177 |
||||||||
|
Corporate Credit |
- |
556,274,961 |
- |
556,274,961 |
||||||||
|
Term Loans |
- |
40,597,425 |
- |
40,597,425 |
||||||||
|
Preferred Stocks |
23,438,452 |
- |
- |
23,438,452 |
||||||||
|
Common Stocks |
15,415,156 |
6,530,516 |
11 |
21,945,683 |
||||||||
|
Money Market Fund |
21,503,965 |
- |
- |
21,503,965 |
||||||||
|
Total Investments |
$ |
60,357,573 |
$ |
931,622,274 |
$ |
19,219,082 |
$ |
1,011,198,929 |
|
Other Financial Instruments:(1) |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||
|
Forward Currency Contracts |
$ |
- |
$ |
12,490 |
$ |
- |
$ |
12,490 |
||||
|
Total |
$ |
- |
$ |
12,490 |
$ |
- |
$ |
12,490 |
For further information regarding security characteristics, see the Schedule of Investments.
____________
(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 $52,119,567 for the reverse repurchase agreements presented in the Statement of Assets and Liabilities. As of June 30, 2024, these financial instruments are categorized as Level 2 within the disclosure hierarchy.
|
2024 Semi-AnnualReport |
35 |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
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, 2024.
|
Quantitative Information about Level 3 Fair Value Measurements |
|||||||||||||
|
Value as of |
Valuation |
Valuation |
Unobservable |
Amount |
Impact of |
||||||||
|
Securitized Credit |
|||||||||||||
|
Commercial Real |
$ |
14,472,690 |
Income Approach |
Discounted Cash Flow |
Yield (Discount Rate of Cash Flows) |
10.0%-17.0% (14.2%) |
Decrease |
||||||
|
3,092,117 |
Market Approach |
Expected Recovery Value |
Multiple of Underlying Assets |
1x |
Increase |
||||||||
|
Commercial |
1,654,264 |
Income Approach |
Discounted Cash Flow |
Yield (Discount Rate) |
19.0% |
Decrease |
|||||||
|
Common Stocks |
|||||||||||||
|
Thunderbird |
11 |
Asset-Based Approach |
Analysis of Enterprise Value |
Enterprise Value |
$1 |
Increase |
|||||||
|
Total |
$ |
19,219,082 |
____________
(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 |
Common |
Total |
|||||||||
|
Balance as of December 31, 2023 |
$ |
19,117,510 |
$ |
11 |
$ |
19,117,521 |
|||||
|
Accrued discounts (premiums) |
9,723 |
- |
9,723 |
||||||||
|
Realized gain (loss) |
- |
- |
- |
||||||||
|
Change in unrealized appreciation (depreciation) |
(1,529,070 |
) |
- |
(1,529,070 |
) |
||||||
|
Purchases at cost |
1,620,908 |
- |
1,620,908 |
||||||||
|
Sales proceeds |
- |
- |
- |
||||||||
|
Transfers into Level 3 |
- |
- |
- |
||||||||
|
Balance as of June 30, 2024 |
$ |
19,219,071 |
$ |
11 |
$ |
19,219,082 |
|||||
|
Change in unrealized appreciation (depreciation) for Level 3 assets still held at the reporting date |
$ |
(1,407,417 |
) |
$ |
- |
$ |
(1,407,417 |
) |
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-dividenddate. 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-dividenddate. 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 may differ from the estimated
|
36 |
BrookfieldPublic Securities Group LLC |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
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-deferredreturn 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-dividenddate. 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. 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.
|
2024 Semi-AnnualReport |
37 |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
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 December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, Reference Rate Reform (Topic 848)-Deferral of the Sunset Date of Topic 848("ASU 2022-06"). ASU 2022-06is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offeredbased reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
3. Derivative Financial Instruments
The Fund may purchase and sell derivative instruments such as exchange-listedand over-thecounter put and call options on securities, financial futures, equity, fixed-incomeand 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.
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.
|
38 |
BrookfieldPublic Securities Group LLC |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
There were no futures contracts outstanding as of June 30, 2024.
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, 2024 was $6,933,853, 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 |
||
|
Forward currency contracts |
Unrealized appreciation on forward currency contracts (assets) |
$ 35,211 |
||
|
Forward currency contracts |
Unrealized depreciation on forward currency contracts (liabilities) |
(22,721) |
The following table sets forth the effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2024:
|
Derivatives |
Location of Gains (Losses) on |
Net Realized Loss |
Net Change in Unrealized |
|
Forward currency contracts |
Forward currency contracts |
$ (31,623) |
$ 164,955 |
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.
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 as of June 30, 2024:
|
Collateral |
||||||
|
Gross |
Gross |
Net Amounts |
Non-Cash |
Collateral |
Net Amount |
|
|
Assets: |
||||||
|
Forward currency contracts |
$35,211 |
$- |
$ 35,211 |
$- |
$- |
$ 35,211 |
|
Liabilities: |
||||||
|
Forward currency contracts |
$22,721 |
$- |
$(22,721) |
$- |
$- |
$(22,721) |
|
2024 Semi-AnnualReport |
39 |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
4. Risks of Investing in Asset-Backed Securities and Below-Investment Grade Securities
The value of asset-backedsecurities 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-backedsecurities also will be affected by the exhaustion, termination or expiration of any credit enhancement. The Fund has investments in below-investmentgrade debt securities, including mortgage-backedand asset-backedsecurities. Below-investmentgrade 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-investmentgrade 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-investmentgrade debt securities are generally less sensitive to interest rate changes than higher-ratedinvestments but are more sensitive to adverse economic or political changes or individual developments specific to the issuer than higher-ratedinvestments. 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-investmentgrade 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 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-administrationagreement 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-Administratorperform 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.
|
40 |
BrookfieldPublic Securities Group LLC |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
The Adviser has entered into a Sub-AdvisoryAgreement with Oaktree Fund Advisors, LLC (the "Sub-Adviser"). The Sub-Adviseris an affiliate of Oaktree Capital Management, L.P. ("OCM"), a leading global investment management firm headquartered in Los Angeles, California focused on less efficient markets and alternative investments, and is a subsidiary of Oaktree Capital Group, LLC ("OCG," together with OCM and the Sub-Adviser, "Oaktree"). The Sub-Adviseris responsible for the management of the securitized credit allocation with a focus on its investments in commercial mortgage-backedsecurities, residential mortgage-backedsecurities, and related assets. In 2019, Brookfield Asset Management ULC, an unlimited liability company formed under the laws of British Columbia, Canada ("BAM ULC" or "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 the Sub-Adviser.
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, 2024, purchases and sales of investments (including principal payups and paydowns), excluding short-termsecurities, reverse repurchase agreements and U.S. government securities, were $307,770,580 and $259,164,294, respectively.
For the six months ended June 30, 2024, there were no purchases and sales of long-termU.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 maximum line of credit as of June 30, 2024 for the Fund is $300,000,000. 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, 2024, the Fund had outstanding borrowings of $152,000,000. For the six months ended June 30, 2024, the Fund borrowed an average daily balance of $152,000,000 at a weighted average borrowing cost of 6.41% and the interest expense amounted to $4,843,032. As of June 30, 2024, the total value of the collateral was $289,482,645.
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, 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.
|
2024 Semi-AnnualReport |
41 |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
At June 30, 2024, the Fund the following reverse repurchase agreements outstanding:
|
Counterparty |
Borrowing |
Borrowing |
Maturity |
Amount |
Payable For |
|||||||
|
JPMorgan Chase |
5.20% |
5/30/2024 |
7/16/2024 |
$ |
1,343,000 |
$ |
1,349,208 |
|||||
|
JPMorgan Chase |
5.25% |
5/14/2024 |
7/16/2024 |
2,111,802 |
2,126,585 |
|||||||
|
JPMorgan Chase |
5.45% |
5/14/2024 |
7/16/2024 |
6,528,449 |
6,575,889 |
|||||||
|
JPMorgan Chase |
5.50% |
5/14/2024 |
7/16/2024 |
15,230,493 |
15,342,184 |
|||||||
|
JPMorgan Chase |
5.50% |
5/28/2024 |
7/16/2024 |
4,840,000 |
4,865,141 |
|||||||
|
JPMorgan Chase |
5.50% |
5/30/2024 |
7/16/2024 |
3,916,000 |
3,935,145 |
|||||||
|
JPMorgan Chase |
5.50% |
6/10/2024 |
7/16/2024 |
5,294,160 |
5,311,145 |
|||||||
|
JPMorgan Chase |
5.60% |
5/14/2024 |
7/16/2024 |
6,028,650 |
6,073,664 |
|||||||
|
JPMorgan Chase |
5.70% |
5/14/2024 |
7/16/2024 |
2,093,175 |
2,109,083 |
|||||||
|
JPMorgan Chase |
5.75% |
5/14/2024 |
7/16/2024 |
2,561,220 |
2,580,856 |
|||||||
|
JPMorgan Chase |
5.80% |
5/14/2024 |
7/16/2024 |
2,172,618 |
2,189,420 |
|||||||
|
Total |
$ |
52,119,567 |
$ |
52,458,320 |
____________
(1)The average daily balance of reverse repurchase agreements outstanding for the Fund during the six months ended June 30, 2024, was $32,622,768 at a weighted average daily interest rate of 5.52% and the interest expense amounted to $895,195. As of June 30, 2024, the total value of the collateral was $67,423,877.
The following is a summary of the reverse repurchase agreements by the type of collateral and the remaining contractual maturity of the agreements:
|
Overnight |
Up to 30 |
30 to 90 |
Greater Than |
Total |
|||||||||||
|
Corporate Credit |
$ |
- |
$ |
52,119,567 |
$ |
- |
$ |
- |
$ |
52,119,567 |
|||||
|
Total |
$ |
- |
$ |
52,119,567 |
$ |
- |
$ |
- |
$ |
52,119,567 |
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.
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 |
Gross |
Net Amounts |
Non-Cash |
Collateral |
Net Amount |
|
|
Reverse Repurchase |
$52,119,567 |
$- |
$52,119,567 |
$(52,119,567) |
$- |
$- |
____________
* Excess of collateral pledged to the individual counterparty is not shown for financial statement purposes.
|
42 |
BrookfieldPublic Securities Group LLC |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
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, 2024 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 filed a registration statement using the "shelf" registration process (the "Shelf Registration Statement"), which became effective on April 12, 2024. The Shelf Registration Statement permits the Fund to offer, from time to time, in one or more offerings, common shares or preferred shares, or subscription rights to purchase the Fund's common shares or preferred shares. As of June 30, 2024, the Fund has not offered common shares or preferred shares, or subscription rights to purchase the Fund's common shares or preferred shares, pursuant to the Shelf Registration Statement.
The Fund previously entered into an "at-the-market" offering program (the "Legacy ATM Program") through the Fund's prior "shelf" registration statement, which expired on April 21, 2024. The Legacy ATM Program allowed for an offering of up to 6,600,000 shares of common stock of the Fund. For the year ended December 31, 2023, the Fund issued 145,617 shares under the Legacy ATM Program at an average price of $17.6945 per share.
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 related to the issuance of common shares were recorded to paid-incapital during the year ended December 31, 2023.
The Fund issued 229,027 shares through its Dividend Reinvestment Plan (the "Plan") during the year ended December 31, 2023.
The Board has approved a share repurchase plan. Under the current share repurchase plan, as of June 30, 2024, 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, 2024. 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, 2024 and the year ended December 31, 2023, 178,402 and 623,411 shares were repurchased by the Fund at a weighted average price of $12.380 and $12.472, an aggregate cost, including brokerage commissions, of $2,212,246 and $7,787,752 and at a weighted average discount of 14.43% and 14.15% to net asset value, respectively. All shares repurchased have been reclassified as authorized but unissued.
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.
|
2024 Semi-AnnualReport |
43 |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
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-notthreshold 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, 2024, 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, 2023, open taxable years consisted of the taxable years ended December 31, 2020 through December 31, 2023. 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-endof December 31, 2023.
The tax character of the distributions paid for the year ended December 31, 2023 were as follows:
|
Year Ended |
|||
|
Ordinary Income |
$ |
42,201,961 |
|
|
Return of Capital |
77,785,806 |
||
|
Total |
$ |
119,987,767 |
At December 31, 2023, the Fund's most recently completed tax year-end, the components of net assets (excluding paid-incapital) on a tax basis were as follows:
|
Capital loss carryforwards(1) |
$ |
(123,887,675 |
) |
|
|
Late year ordinary losses |
(565,310 |
) |
||
|
Other accumulated gains |
2,430 |
|||
|
Tax basis unrealized depreciation on investments and foreign currency |
(60,243,978 |
) |
||
|
Total tax basis net accumulated losses |
$ |
(184,694,533 |
) |
____________
(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, 2023 was as follows:
|
Cost of Investments |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Depreciation |
|
$1,050,797,891 |
$19,753,875 |
$(79,997,853) |
$(60,243,978) |
The Fund deferred, on a tax basis, late year ordinary losses of $565,310. As of December 31, 2023, the Fund's capital loss carryforwards were as follows:
|
Capital Loss Carryforwards: |
Expires: |
Limitation: |
|
$98,196,457 (Short-Term) |
N/A |
Unlimited |
|
$25,691,218 (Long-Term) |
N/A |
Unlimited |
|
44 |
BrookfieldPublic Securities Group LLC |
BROOKFIELD REAL ASSETS INCOME FUND INC.
Notes to Financial Statements (Unaudited) (continued)
June 30, 2024
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-incapital 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.Indemnifications
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.
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-recognizedsubsequent 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 |
|
$0.1180 |
July 9, 2024 |
July 25, 2024 |
|
$0.1180 |
August 6, 2024 |
August 26, 2024 |
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.
|
2024 Semi-AnnualReport |
45 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. |
On July 12, 2024, 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-OxleyAct of 2002 and related SEC rules, the Fund's principal executive and principal financial officers have made semi-annualcertifications, included in filings with the SEC on Form N-CSRrelating to, among other things, the Fund's disclosure controls and procedures and internal control over financial reporting, as applicable.
|
46 |
Brookfield Public Securities Group LLC |
|
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 Thursday, June 20, 2024, at 8:30 a.m., Eastern Time. The description of the proposals and number of shares voted are as follows:
|
Proposal 1 |
Shares |
Shares |
Shares |
|
1.1 To elect to the Fund's Board of Directors Betty A. Whelchel, Class I Independent Director Nominee |
35,465,375 |
2,721,833 |
981,744 |
|
1.2 To elect to the Fund's Board of Directors Brian F. Hurley, Class I Interested Director Nominee |
35,562,218 |
2,633,301 |
973,436 |
|
Proposal 2 |
Shares |
Shares |
Shares |
|
2.1 To elect to the Fund's Board of Directors Heather S. Goldman, Class II Independent Director Nominee |
35,364,405 |
2,826,897 |
977,655 |
|
2.2 To elect to the Fund's Board of Directors William H. Wright II, Class II Independent Director Nominee |
35,518,922 |
2,673,100 |
976,936 |
|
2024 Semi-AnnualReport |
47 |
|
BROOKFIELD REAL ASSETS INCOME FUND INC. |
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-AdvisoryAgreement between Brookfield and Oaktree Fund Advisors, LLC (the "Sub-Adviser" or "Oaktree") with respect to the Fund (the "Sub-AdvisoryAgreement," and together with the Advisory Agreement, the "Agreements"), each for a successive one-yearperiod at an in-personmeeting held on May 22-23, 2024 (the "Meeting").
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-partyprovider 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, as well as supplemental data 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 their 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-partyservice 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 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
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BrookfieldPublic Securities Group LLC |
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BROOKFIELD REAL ASSETS INCOME FUND INC. |
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-Adviserwere satisfactory and that it was reasonable to conclude that the Sub-Adviserwould 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 Fund. 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 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, 2024. The Fund's 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.
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BROOKFIELD REAL ASSETS INCOME FUND INC. |
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-yearperiod (fifth quintile), five-yearperiod (fourth quintile), and since inception period (third quintile), and above the median of its Peer Universe for the three-yearperiod (second quintile). The Board also considered that the Fund underperformed its Broadridge Index for the one-, five-, and since inception period, and outperformed its Broadridge Index for the three-yearperiod. In addition, the Board further noted that the Fund's performance was below the median of its Peer Group for the quarter ended March 31, 2024, as well as for the one-yearperiod, and above the median of its Peer Group for all other periods. Finally, the Board noted that the Fund outperformed its Benchmark Index for the quarter ended March 31, 2024, and for all other periods.
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-AdvisoryAgreement. 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 considered and took note of the following with respect to the Fund: (i) the Fund's contractual management fees at common asset levels ($825 million) were above the median of its Expense Group (in the fifth quintile); (ii) the Fund's actual total expenses for common and leveraged assets were above the median of its Expense Group (ranked 6/9) and Expense Universe (ranked 54/86); (iii) the Fund's actual total expenses for only common assets were at the median of its Expense Group (ranked 5/9) and above the median of the Expense Universe (ranked 47/86); (iv) the Fund's actual total expenses (excluding investment related expenses and taxes) for common and leveraged assets were above the median of the Expense Group (ranked 9/9) and Expense Universe (ranked 70/86); (v) the Fund's actual total expenses (excluding investment related expenses and taxes) for only common assets were above the median of its Expense Group (ranked 9/9) and Expense Universe (ranked 62/86); (vi) the Fund's actual management fees for common and leveraged assets were above the median of its Expense Group (ranked 9/9) and Expense Universe (ranked 76/86); (vii) the Fund's actual management fees for only common assets were above the median of its Expense Group (ranked 9/9) and Expense Universe (ranked 67/86); (viii) the Fund's actual non-managementexpenses for common and leveraged assets were above the median of its Expense Group (ranked 7/9) and Expense Universe (ranked 52/86); (ix) the Fund's actual non-managementexpenses for only common assets were above the median of its Expense Group (ranked 7/9) and Expense Universe (ranked 47/86); (x) the Fund's investment related expenses and taxes for common and leveraged assets were at the median of its Expense Group (ranked 5/9) and below the median of its Expense Universe (ranked 40/86); and (xi) the Fund's investment related expenses and taxes for only common assets were at the median of its Expense Group (ranked 5/9) and below the median of its Expense Universe (ranked 36/86).
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BrookfieldPublic Securities Group LLC |
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BROOKFIELD REAL ASSETS INCOME FUND INC. |
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-flowsand out-flowsof 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.1In 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-Fundand non-advisorybusiness 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-AdvisoryAgreement 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-AdvisoryAgreement 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-AdvisoryAgreement.
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-qualityservices 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-aloneentity. 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.
____________
1The Brookfield Fund Complex is comprised of Brookfield Investment Funds (5 series of underlying portfolios), Brookfield Real Assets Income Fund, Inc. (NYSE: RA), Brookfield Infrastructure Income Fund Inc., and Oaktree Diversified Income Fund Inc. (the "Brookfield Fund Complex").
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2024 Semi-AnnualReport |
51 |
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BROOKFIELD REAL ASSETS INCOME FUND INC. |
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-dealersand 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.
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52 |
BrookfieldPublic Securities Group LLC |
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BROOKFIELD REAL ASSETS INCOME FUND INC. |
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.
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2024 Semi-AnnualReport |
53 |
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BROOKFIELD REAL ASSETS INCOME FUND INC. |
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-publicpersonal 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 the 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.
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BrookfieldPublic Securities Group LLC |
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CORPORATE INFORMATION |
|
Investment Adviser Brookfield Public Securities Group LLC Brookfield Place 225 Liberty Street, 35th Floor New York, New York 10281-1023 www.brookfield.com Administrator Brookfield Public Securities Group LLC Brookfield Place 225 Liberty Street, 35th Floor New York, New York 10281-1023 www.brookfield.com Please direct your inquiries to: Investor Relations Phone: 1-855-777-8001 E-mail: [email protected] 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 & Sub-Administrator U.S. Bancorp Fund Services, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 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 |
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Directors of the Fund |
||
|
Edward A. Kuczmarski William H. Wright II Heather S. Goldman Stuart A. McFarland Betty Whelchel Brian F. Hurley |
Chair of Board of Directors Chair of Audit Committee Chair of Governance Committee Director Director Director (Interested) |
|
Officers of the Fund |
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|
Brian F. Hurley Casey P. Tushaus Craig A. Ruckman Adam R. Sachs Mohamed S. Rasul |
President Treasurer Secretary Chief Compliance Officer 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.
(b) Not applicable.
Item 2. Code of Ethics.
Not applicable for semi-annualreports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annualreports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annualreports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annualreports.
Item 6. Investments.
(a) Schedule of Investments is included as part of the report to stockholders filed under Item 1(a) of this Form.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.
Not applicable to closed-endinvestment companies.
Item 8. Changes in and Disagreements with Accountants for Open-End Investment Companies.
Not applicable to closed-endinvestment companies.
Item 9. Proxy Disclosure for Open-End Investment Companies.
Not applicable to closed-endinvestment companies.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.
Not applicable to closed-endinvestment companies.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Statement Regarding Basis for Approval of Investment Advisory Contract is included as part of the report to stockholders filed under Item 1(a) of this Form.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable for semi-annualreports.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semi-annualreports.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
|
Period |
(a) |
(b) |
(c) |
(d) |
||||
|
Month #1 (01/01/24-01/31/24)(1) |
1,742 |
12.8300 |
1,742 |
- |
||||
|
Month #2 (02/01/24-02/29/24) |
- |
- |
- |
- |
||||
|
Month #3 (03/01/24-03/31/24)(2) |
1,900 |
12.6900 |
1,900 |
- |
||||
|
Month #4 (04/01/24-04/30/24)(3) |
174,760 |
12.4171 |
174,760 |
- |
||||
|
Month #5 (05/01/24-05/31/24) |
- |
- |
- |
- |
||||
|
Month #6 (06/01/24-06/30/24) |
- |
- |
- |
- |
||||
|
Total |
178,402 |
- |
178,402 |
- |
____________
(1) During the period, 1,742 shares representing 0.0% of the Registrant's total outstanding shares were repurchased.
(2) During the period, 1,900 shares representing 0.0% of the Registrant's total outstanding shares were repurchased.
(3) During the period, 174,760 shares representing 0.3% of the Registrant's total outstanding shares were repurchased.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Directors.
Item 16. Controls and Procedures.
(a) The registrant's Principal Executive Officer and Principal Financial Officer have reviewed the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the registrant and by the registrant's service provider.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
The registrant did not engage in securities lending activities during the fiscal year reported on this Form N-CSR.
Item 18. Recovery of Erroneously Awarded Compensation.
(a) Not Applicable.
(b) Not Applicable.
Item 19. Exhibits.
(a) (1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not applicable.
(2)Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant's securities are listed. Not Applicable.
(3) A separate certification for each principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(4) Any written solicitation to purchase securities under Rule 23c_1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not Applicable.
(5) Change in the registrant's independent public accountant. Provide the information called for by Item 4 of Form 8-Kunder the Exchange Act (17 CFR 249.308). Unless otherwise specified by Item 4, or related to and necessary for a complete understanding of information not previously disclosed, the information should relate to events occurring during the reporting period. There was no change in the registrant's independent public accountant for the period covered by this report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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(Registrant) |
Brookfield Real Assets Income Fund Inc. |
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By (Signature and Title) |
/s/ Brian F. Hurley |
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Brian F. Hurley, Principal Executive Officer |
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Date: |
September 3, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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By (Signature and Title) |
/s/ Brian F. Hurley |
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Brian F. Hurley, Principal Executive Officer |
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Date: |
September 3, 2024 |
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By (Signature and Title) |
/s/ Casey P. Tushaus |
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Casey P. Tushaus, Principal Financial Officer |
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Date: |
September 3, 2024 |