brookfield global infrastructure securities income fund/media/files/b/...2014 condensed interim...

2014Condensed Interim Financial Statements

For the period from January 1, 2014 to June 30, 2014

Brookf ie ld Global Infrastructure Secur i t ies Income FundBGI.UN

Brookfield Investment Management

Brookfield Global Infrastructure Securities Income Fund

2014 Condensed Interim Financial Statements | 1

Notice to Reader

These condensed interim financial statements and related notes of Brookfield Global InfrastructureSecurities Income Fund (the “Fund”) for the six months ended June 30, 2014 have been prepared bymanagement of the Fund. The external auditors of the Fund have not audited or reviewed thesecondensed interim financial statements.

CONTENTS

Condensed Interim Financial Statements 2Notes to Condensed Interim Financial Statements 8Fund Information 20



CONDENSED STATEMENTS OF FINANCIAL POSITIONSAs at June 30, 2014(Unaudited, Expressed in Canadian Dollars)

See accompanying notes to financial statements.

Approved on behalf of the Manager, Brookfield Investment Management (Canada) Inc.

George E. MyhalDirector

Gail CecilDirector

As at As at

June 30, 2014 December 31, 2013$ $

AssetsCurrent assetsFinancial assets at fair value through profit or loss 513,471,684 467,414,055Unrealized appreciation on forward currency contracts 1,861,429 −Cash and cash equivalents 72,699,530 59,293,358Accrued investment income 1,691,333 1,091,189

Due from broker 468,127 2,011,862Accounts receivable − 272,782

Total assets 590,192,103 530,083,246

LiabilitiesCurrent liabilitiesFinancial liabilities at fair value through profit or loss 41,062,296 38,038,346

Distributions payable (Note 12) 5,143,553 5,160,000

Margin payable (Note 6) 127,906,783 127,854,880Dividends payable − 4,622Accounts payable and accrued liabilities 14,914,667 4,382,758

Total liabilities (excluding net assets attributable

to holders of redeemable Units) 189,027,299 175,440,606

Net assets attributable to holders of redeemable Units 401,164,804 354,642,640

Number of Units outstanding (Note 11) 34,290,350 34,400,000

Net assets attributable to holders of redeemable Units per Unit 11.70 10.31



CONDENSED STATEMENT OF COMPREHENSIVE INCOMEFor the six months ended June 30,(Unaudited, Expressed in Canadian Dollars)

The Fund began operations on July 18, 2013; therefore there is no comparable period.


2014$

Investment incomeInterest income for distribution purposes 42Dividend Income 8,844,154

Net realized foreign exchange loss (876,927)

Other changes in fair value on financial assets and

liabilities at fair value through profit and loss Net realized gain on sale of investments 21,153,500 Net realized gain on forward currency contracts 867,721 Change in unrealized foreign exchange loss (310,164) Change in unrealized appreciation on investments 46,526,113 Change in unrealized appreciation on forward contracts 1,861,429

Total income 78,065,868

Expenses (Note 9)Management fees 2,628,398Performance fees 13,837,706Interest expense 606,980Dividend expense 345,354Brokerage commissions and other charges 816,196Operating expenses 391,307Legal Expense 14,496Audit Expense 32,012

Total expenses 18,672,449

Operating profit 59,393,419

Withholding taxes (1,462,150)

Increase in net assets attributable to holders of redeemable Units 57,931,269

Increase in net assets attributable to holders of redeemable Units per Unit 1.69



CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITSFor the six months ended June 30,(Unaudited, Expressed in Canadian Dollars)



2014$

Net assets attributable to holders of redeemable Units, beginning of period 354,642,640

Increase in net assets attributable to holders of redeemable Units 57,931,269

Redeemable unit transactionsAmounts paid for redemption of Units (1,105,542)

Net decrease from redeemable Unit transactions (1,105,542)

Distribution to holders of Redeemable UnitsReturn of capital payable (5,143,553)Return of capital paid (5,160,010)

Total distributions to holders of redeemable Units (10,303,563)

Net increase in net assets attributable to holders of redeemable Units 46,522,164

Net assets attributable to holders of redeemable Units, end of period 401,164,804



CONDENSED STATEMENT OF CASH FLOWSFor the six months ended June 30,(Unaudited, Expressed in Canadian Dollars)



2014

$

Cash flows provided by (used for):

Cash flows from operating activities

Increase in net assets attributable to holders of redeemable units 57,931,269

Adjsutments for:

Net realized foreign exchange loss 876,927

Net realized gain on sale of investments (21,153,500)

Change in unrealized appreciation on investments (46,526,113)

Change in unrealized foreign exchange loss 310,164

Change in unrealized appreciation of forward currency contracts (1,861,429)

Increase in accrued investment income (600,144)

Decrease in accounts receivable 272,782

Decrease in dividends payable (4,622)

Increase in accounts payable and accrued liabilities 10,531,909

Proceeds from sale of investments 95,143,837

Amounts paid for purchase of investments (68,954,168)

Net cash from operating activities 25,966,912

Cash flows from financing activities

Margin payable, net (repayments)

borrowings and foreign exchange(258,261)

Distributions to holders of redeemable Units (10,320,010)

Amounts paid for redemption of Units (1,105,542)

Net cash from financing activities (11,683,813)

Net increase in cash and cash equivalents 14,283,099

Net realized foreign exchange loss (876,927)

Cash and cash equivalents, beginning of period 59,293,358

Cash and cash equivalents, end of period 72,699,530

Supplemental Information:

Dividend received, net of withholding taxs 6,781,860

Interest Received 42



SCHEDULE OF INVESTMENTSAs at June 30, 2014(Unaudited, Expressed in Canadian Dollars)

Average Cost Fair Value % of netQuantity Security $ $ assets

Equities - LongUnited States Dollar Denominated

241,100 Access M idstream Partners LP 16,147,474 16,320,212 4.07259,700 American Tower Corp. 20,618,519 24,890,349 6.20

284,600 Atlas Pipeline Partners LP 10,120,778 10,428,129 2.60

810,400 Boardwalk Pipeline Partners LP 13,496,695 15,969,238 3.98

1,115,800 Cemex SAB de CV 15,390,459 15,723,863 3.92910,000 Crestwood Equity Partners LP 14,542,981 14,413,366 3.59

3,750,000 Dakota Plains Holdings Inc. 8,555,103 10,704,813 2.67564,200 Eagle Rock Energy Partners LP 2,611,044 2,992,785 0.75280,200 Energy Transfer Equity LP 9,477,468 17,591,031 4.38586,000 EV Energy Partner LP 24,219,805 24,730,367 6.1695,100 Genesee & Wyoming Inc. 9,477,815 10,636,111 2.65

101,200 Kansas City Southern 10,146,018 11,588,905 2.89230,600 MarkWest Energy Partners LP 16,566,475 17,581,828 4.38

194,500 OGE Energy Corp. 7,609,854 8,096,311 2.02

274,690 Pattern Energy Group Inc. 8,403,787 9,687,575 2.41

100,800 SBA Communications Corp. 8,358,933 10,983,714 2.74176,000 SemGroup Corp. 11,064,612 14,781,803 3.68

99,600 Sempra Energy 8,858,174 11,108,631 2.77

273,100 Southcross Energy Partners LP 5,126,367 6,690,562 1.67

117,100 Spectra Energy Corp. 4,093,749 5,298,518 1.32

241,800 Teekay Corp. 10,731,867 16,032,775 4.00

324,600 Williams Cos Inc. 11,593,160 20,126,078 5.02247,211,137 296,376,964 73.87

Canadian Dollar Denominated315,200 Enbridge Inc. 13,778,821 15,958,576 3.98

1,022,155 Veresen Inc. 13,426,763 19,165,406 4.7827,205,584 35,123,982 8.76

Hong Kong Dollar Denominated7,396,700 COSCO Pacific Ltd. 10,828,958 10,917,773 2.722,130,100 ENN Energy Holdings Ltd. 12,074,948 16,305,984 4.066,165,400 Kunlun Energy Co Ltd. 11,017,021 10,828,889 2.70

33,920,927 38,052,646 9.48Brazilian Real Dominated

1,152,800 CCR SA 9,474,376 10,027,836 2.509,474,376 10,027,836 2.50



SCHEDULE OF DERIVATIVE INVESTMENTSAs at June 30, 2014(Unaudited, Expressed in Canadian Dollars)


European Dominated409,000 Atlantia SpA 9,572,854 12,418,521 3.10276,375 Digital Multimedia Tech SpA 16,714,293 15,920,683 3.97287,311 Eutelsat Communications SA 9,575,343 10,632,225 2.65937,900 Ferrovial SA 17,029,126 22,247,256 5.55554,100 GDF Suez 11,964,144 16,246,435 4.05106,600 Obrascon Huarte Lain SA 5,127,056 4,981,766 1.24

1,925,269 Snam SpA 9,642,266 12,354,067 3.0879,625,082 94,800,953 23.64

Swiss Franc Dominated14,400 Flughafen Zuerich AG 7,806,612 9,426,461 2.35

7,806,612 9,426,461 2.35Australian Dollar Dominated

1,000,600 Origin Energy Ltd. 14,851,821 14,707,013 3.6714,851,821 14,707,013 3.67

British Pound Dominated463,700 Royal Mail PLC 4,961,690 4,214,149 1.05668,700 United Utilities Group PLC 7,683,655 10,741,680 2.68

12,645,345 14,955,829 3.73Transaction costs (677,644)Total long investments 432,063,240 513,471,684 128.00Equities - Short

United States Dollar Denominated(371,200) CSX Corp. (11,775,428) (12,181,835) (3.04)(120,800) MPLX LP (7,582,427) (8,299,266) (2.07)(201,700) Northeast Utilites (9,865,671) (10,155,576) (2.53)

(29,223,526) (30,636,677) (7.64)European Dominated

(425,400) Abertis Infraestructuras SA (10,102,456) (10,425,619) (2.60)(10,102,456) (10,425,619) (2.60)

Transaction costs (42,690)Total short investments (39,368,672) (41,062,296) (10.24)

Total investments 392,694,568 472,409,388 117.76

Unrealized

Maturity Gains /(Losses)

Forward Currency Contracts Date $

Buy CAD 9,000,000, Sell GBP 4,912,851 7-Jul-14 51,269

Buy CAD 35,000,000, Sell EUR 23,528,463 7-Jul-14 679,432

Buy CAD 5,000,000, Sell CHF 4,100,900 7-Jul-14 73,058

Buy CAD 40,000,000, Sell USD 36,553,048 7-Jul-14 1,057,670

Total 1,861,429



NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

1. THE FUND

Brookfield Global Infrastructure Securities Income Fund (the “Fund”) is an investment fund establishedunder the laws of the Province of Ontario pursuant to a Declaration of Trust dated June 24, 2013. TheFund effectively began operations on July 18, 2013 when it completed an initial public offering of32,500,000 units of the Fund (the “Units”) and subsequently issued 1,900,000 Units pursuant to anover-allotment option on July 30, 2013 at $10.00 per Unit (the “Offering”), for gross proceeds of$344.0 million and net proceeds of $325.1 million after deducting issuance costs of approximately$18.9 million.

The investment objectives of the Fund are to (i) provide holders of Units (“Unitholders”) with quarterlycash distributions; (ii) maximize total return for Unitholders through distributions and capitalappreciation; and (iii) preserve capital of the Fund by investing in a portfolio (the “Portfolio”)comprised primarily of equity securities of publicly-traded global infrastructure companies that ownand operate infrastructure assets.

Brookfield Investment Management (Canada) Inc. (“BIM Canada”) is the manager (the “Manager”) andthe trustee of the Fund. Brookfield Investment Management Inc. (“BIM”) is the investment manager(the “Investment Manager”) of the Fund. The Investment Manager makes all of the investment andtrading decisions on behalf of the Fund. The Fund’s registered office is Brookfield Place, 181 BayStreet, Suite 300 Toronto, Ontario Canada M5J2T3. These financial statements were authorized forissue by the Manager on August 29, 2014.

2. BASIS OF PRESENTATION AND ADOPTION OF IFRS

These financial statements have been prepared in compliance with International Financial ReportingStandards ("IFRS") as issued by the International Accounting Standards Board (“IASB”). The Fundadopted this basis of accounting in 2014 as required by Canadian securities legislation and the CanadianAccounting Standards Board. Previously, the Fund prepared its financial statements in accordance withCanadian generally accepted accounting principles as defined in Part V of the Chartered ProfessionalAccountants of Canada (“CPA”) Handbook ("Canadian GAAP"). The Fund has consistently applied theaccounting policies used in the preparation of its opening IFRS statement of financial position atJanuary 1, 2013 and throughout all periods presented, as if these policies had always been in effect.

The financial statements have been prepared on the historical cost basis, except for the revaluation ofcertain financial instruments. Historical cost is generally based on the fair value of the considerationgiven in exchange for assets. Note 14 discloses the impact of the transition to IFRS on the Fund'sreported financial position, financial performance and cash flows, including the nature and effect ofsignificant changes in accounting policies from those used in the Fund's financial statements for theyear ended December 31, 2013 which were prepared under Canadian GAAP.

In applying IFRS, management makes estimates and assumptions that may affect the amounts of assets,liabilities, income and expenses reported in these financial statements. The most significant estimatesrelate to the valuation of investments. Actual results may differ from the estimates.

3. SIGNIFICANT ACCOUNTING POLICIES

Financial InstrumentsThe Fund’s investments in equity and fixed income securities are designated at fair value throughprofit or loss (“FVTPL”) at inception. The Fund’s derivatives are categorized as held for trading. As a



result of such designation and categorization, the Fund’s investments and derivatives are measured atFVTPL. The Fund’s accounting policies for measuring the fair value of its investments and derivativesare identical to those used in measuring its published Net Asset Value (NAV).

OffsettingFinancial assets and liabilities are offset and the net amount presented in the statement of net assetsonly when the Fund has a legal right to offset the amounts and intends either to settle on a net basis orto realize the asset and settle the liability simultaneously. In the normal course of business, the Fundenters into various master netting agreements or similar agreements that do not meet the criteria foroffsetting in the Statements of Financial Position but still allow for the related amounts to be offset incertain circumstances, such as bankruptcy or termination of contracts.

Fair Value MeasurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. The fair value of financial assetsand liabilities traded in active markets (such as publicly traded marketable securities) are based onquoted market prices at the close of trading on the reporting date. The Fund uses the last tradedmarket price for both financial assets and financial liabilities where the last traded price falls withinthat day’s bid-ask spread. In circumstances where the last traded price is not within the bid-askspread, the Manager determines the point within the bid-ask spread that is most that is mostrepresentative of fair value based on the specific facts and circumstances. The Fund’s policy is torecognize transfers into and out of the fair value hierarchy levels as of the date of the event or changein circumstances given rise to the transfer.

The fair value of financial assets and liabilities that are not traded in an active market including over-the-counter derivatives is determined using established valuation procedures. The Fund uses a varietyof methods and makes assumptions that are based on market conditions existing at each measurementdate. Valuation techniques include the use of comparable recent arm’s length transactions, referenceto other instruments that are substantially the same and others commonly used by market participantsand which make the maximum us of observable inputs. Refer to Note 7 for further information aboutthe Fund’s fair value measurements.

All investment transactions are accounted for on the trade date. Realized gains and losses frominvestment transactions and unrealized appreciation or depreciation in the value of investments arecalculated on an average cost basis, excluding transaction costs and the effect of foreign exchangefluctuations, which are disclosed separately.

Other assets and liabilitiesFor the purpose of categorization, accrued investment income is recorded at cost or amortized cost.Similarly, margin payable, payables for securities purchased, distributions payable and accountspayable and accrued liabilities are deemed to be other financial liabilities and reported at amortizedcost. All other financial assets and liabilities are measured for at amortized cost. Under this method,financial assets and liabilities reflect the amounts required to be received or paid, discounted whenappropriate, at the financial instrument’s effective interest rate. The fair values of the Fund’sfinancial assets and liabilities that are not carried at FVTPL approximate their carrying amounts due totheir short-term nature.

Revenue recognitionDividend income is recognized on the ex-dividend date and the interest for distribution purposes shownon the Statements of Comprehensive Income represents the coupon interest received by the Fundaccounted for on an accrual basis.



Transaction costsTransaction costs, such as brokerage commissions incurred in the purchase and sale of securities by theFund, are expensed and are included in operating expenses in the Statements of ComprehensiveIncome. Transaction costs are incremental costs that are directly attributable to the acquisition, issueor disposal of an investment, which include fees and commissions paid to agents, advisors, brokers anddealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties.

Foreign currencya) Functional and presentation currencyThe performance of the Fund is measured and reported to the investors in Canadian dollar. TheManager considers the Canadian dollar as the currency that most faithfully represents the economiceffects of the underlying transactions, event and conditions. These financial statements are presentedin Canadian dollars, which is the Fund’s functional currency.

b) Foreign currency translationInvestments and other assets denominated in foreign currencies are translated into Canadian dollarsusing the rate of exchange prevailing on the trade date. Investment transactions and income andexpenses are translated at the rate of exchange on the date of such transactions. The fair values ofinvestments and other assets and liabilities in foreign currencies are translated at the period-endexchange rates.

Forward currency contractsForward currency contracts, if applicable, are valued at current market value on each valuation date.The value is determined as the gain or loss that would be realized, if on the valuation date, theposition of the forward currency contracts were closed out.

Redeemable UnitsThe Fund’s redeemable Units are classified as financial liabilities. Distributions to holders ofredeemable Units are recognized in Statement of Changes in Net Assets Attributable to Holders ofRedeemable Units when they are authorized.

New standards and interpretations not yet adopted:The final version of IFRS 9, Financial Instruments, was issued by the IASB in July 2014 and will replaceIAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 introduces a model for classificationand measurement, a single, forward-looking ‘expected loss’ impairment model and a substantiallyreformed approach to hedge accounting. The new single, principle based approach for determining theclassification of financial assets is driven by cash flow characteristics and the business model in whichan asset is held. The new model also results in a single impairment model being applied to all financialinstruments, which will require more timely recognition of expected credit losses. It also includeschanges in respect of own credit risk in measuring liabilities elected to be measured at fair value, sothat gains caused by the deterioration of an entity’s own credit risk on such liabilities are no longerrecognized in profit or loss. IFRS 9 is effective for annual periods beginning on or after January 1,2018, however is available for early adoption. In addition, the own credit changes can be early appliedin isolation without otherwise changing the accounting for financial instruments. The Fund is in theprocess of assessing the impact of IFRS 9 and has not yet determined when it will adopt the newstandard.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements in conformity with IFRS requires the Manager to makejudgments, estimates and assumptions that affect the application of accounting policies and thereported amounts of assets, liabilities, income and expenses. Actual results may differ from theseestimates.



Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates arerecognized in the period in which the estimates are revised and in any future period affected.

Fair Value Measurement of Derivatives and Securities Not Quoted in an Active MarketThe Fund may hold financial instruments that are not quoted in active markets. Fair values of suchinstruments are determined using valuation techniques and may be determined using reputable pricingsources (such as pricing agencies) or indicative prices from market markers. Broker quotes as obtainedfrom the pricing sources may be indicative and not executable or binding.

5. MANAGEMENT OF FINANCIAL RISKS

The Fund is exposed to various financial risks, including market risk (consisting of currency risk,interest rate risk, and other price risk), and liquidity risk. The Fund’s overall risk managementprogramme seeks to minimize potentially adverse effects of those risks on the Fund’s financialperformance by employing experienced portfolio managers and by continuous monitoring of the Fund’ssecurities positions and markets. The Manager maintains a corporate governance structure thatoversees the Fund’s investment activities. The Fund may use derivative financial instruments tomitigate certain risk exposures and is currently engaged in a series of foreign exchange contracts asdescribed below.

Currency riskCurrency risk is the risk that the value of an investment will change due to fluctuations in foreignexchange rates.

As at June 30, 2014, the Fund had entered into forward currency contracts with an unrealized gain of$1,861,429 to deliver currencies at specified future dates. For further information regarding forwardcurrency contracts, see the Schedule of Derivative Instruments. As at December 31, 2013 there wereno such contracts outstanding.

The Fund’s net assets attributable to holders of redeemable Units are measured in Canadian dollarsand payments to Unitholders are made in Canadian dollars. The Fund is exposed to currency risks as itmay hold assets or have liabilities denominated in currencies other than in Canadian dollars. As at June30, 2014 and December 31, 2013, the Fund was exposed to currency risk as the value of any assets orliabilities denominated in currencies other than the Canadian dollar will vary due to changes in foreignexchange rates.

The following tables summarize the Fund’s exposure to foreign currency as at June 30, 2014 andDecember 31, 2013:

*Other Net Assets includes borrowings of $127,906,783

June 30, 2014 Investments Cash

Other Net Assets/

(Liabilities)*

Derivative

Instruments Total Net Asset

$ $ $ $ $ %

U.S. Dollar 265,740,287 (81,206) (127,193,460) (38,934,479) 99,531,142 21.07

Euro 84,375,334 811 410,696 (34,313,056) 50,473,785 10.68

British Pound 14,955,829 − 598,366 (8,947,587) 6,606,608 1.40

Australian Dollar 14,707,013 − 18,535 − 14,725,548 3.12

Hong Kong Dollar 38,052,646 194,886 293,001 − 38,540,533 8.16

Brazilian Real 10,027,836 − 28,390 − 10,056,226 2.13

Swiss Franc 9,426,461 − 12,003 (4,925,710) 4,512,754 0.96

Total 437,285,406 114,491 (125,832,469) (87,120,832) 224,446,596 47.51



*Other Net Assets includes borrowings of $127,854,880

As at June 30, 2014, had the Canadian dollar strengthened or weakened by 1% against each of the othercurrencies with all other variables remaining constant, the net assets of the Fund would have increasedor decreased by $2,244,466 (December 31, 2013 - $2,499,299). From time to time, between 0% and100% of the value of the Portfolio’s non-Canadian currency may be hedged back to the Canadian dollar.

Interest rate riskInterest rate risk arises from the possibility that changes in interest rates will affect future cash flowsor fair values of financial instruments. The Fund’s exposure to interest rate risk is not significant;therefore no sensitivity analysis is necessary.

Other price riskOther price risk is the risk that the value of financial instruments will fluctuate as a result of changes inmarket prices (other than those arising from interest rate risk or currency risk). Such changes may bethe result of factors affecting multiple instruments traded in a market, market segment or asset class.The Fund is exposed to other price risk of securities held in the Portfolio. The Fund may take outrightlong or short positions in any of its investments, which may include derivative instruments for purposesconsistent with its investment objectives and investment strategy and subject to its investmentrestrictions.

The Investment Manager seeks to mitigate this risk through careful selection of securities and otherfinancial instruments. As at June 30, 2014, had the market increased or decreased by 5% with all othervariables remaining constant, the net assets of the Fund would have increased or decreased by$23,620,469 (December 31, 2013 - $21,431,258).

Credit riskCredit risk is exposure to the creditworthiness of the Fund’s trading counterparties. All securitiestransactions executed by the Fund are settled upon delivery using approved brokers. The risk ofpayment default is considered negligible, as delivery of securities sold is only made once the broker hasreceived payment on behalf of the Fund. Payment is not made on a purchase until the securities havebeen received by the broker on behalf of the Fund. The trade will fail if either party fails to meet itsobligation.

The Fund may enter into forward foreign currency exchange contracts primarily to hedge againstforeign currency exchange rate risks on its non-Canadian dollar denominated investment securities. Inaddition to currency and market risk, forward foreign currency exchange contracts involve risks arisingfrom the possible inability of counterparties to meet the terms of their contracts from movement incurrency, security values, and interest rates. The Fund seeks to mitigate this risk through the carefulselection of its derivative counterparties. The Fund’s exposure to credit risk is not significant;therefore no sensitivity analysis is necessary.

December 31, 2013 Investments Cash

Other Net Assets/

(Liabilities)*

Derivative

Instruments Total Net Asset

$ $ $ $ $ %

U.S. Dollar 206,581,115 13,247 (123,833,214) − 82,761,148 17.52

Euro 74,787,163 − (1,222,716) − 73,564,447 15.57

British Pound 16,353,747 − 296,743 − 16,650,490 3.52

Australian Dollar 8,587,775 − 125,520 − 8,713,295 1.84

Hong Kong Dollar 43,358,853 − − − 43,358,853 9.18

Brazilian Real 15,910,034 − − − 15,910,034 3.37

Swiss Franc 8,971,614 − − − 8,971,614 1.90

Total 374,550,301 13,247 (124,633,667) − 249,929,881 52.91



Liquidity riskLiquidity risk is the risk that the Fund may not be able to settle or meet its obligation on time or at areasonable price.

The Fund has current financial liabilities outstanding, including but not limited to, margin loans andinterest payable on its margin loans, accounts payable and accrued liabilities. The Investment Managerseeks to mitigate this liquidity risk by ensuring that a reasonable portion of the Fund’s investmentstrade in active markets and can be sold readily. There can be no assurance that an adequate marketfor the investments will exist at all times, or that the prices at which the investments trade, accuratelyreflect their fair value. Low trading volumes of the investments could also make it difficult to liquidateholdings quickly.

6. BORROWINGS

The Fund uses leverage to finance the purchase of certain investments. Leverage is restricted to 33% ofthe total assets for the Fund. Accordingly, at the time of borrowing, the maximum amount of leveragethat the Fund could employ is 1.50:1. (total long positions (including leveraged positions) divided bynet assets of the Fund). Derivatives and shorting used solely for purposes of hedging are not included inthe leverage threshold calculation. As at June 30, 2014, the Fund had employed leverage equal to23.4% of total assets (December 31, 2013 - $24.1%), equating to $127.9 million (December 31, 2013 -$127.9 million) of the total assets. The minimum and maximum amount of borrowings outstandingduring the Period was $123.9 and 138.1 million, respectively and during the period from July 18, 2013to December 31, 2013 was $0 and $127.9 million, respectively. The borrowings were used to grow theFund’s investments and for working capital needs. Adding a controlled amount of leverage to the Fundis consistent with the Fund’s objectives.

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Fund uses a three-tier hierarchy as a framework for disclosing fair value which reflects thesignificance of the inputs used in making the measurements. The hierarchy has the following levels:quoted prices in an active market (Level 1—unadjusted inputs); inputs other than quoted prices (Level2—directly or indirectly derived from observational market data); and inputs not based on observablemarket data (Level 3—unobservable inputs). In addition to the above disclosure requirements, Section3862 requires disclosure of significant transfers between Levels 1 and 2 since the prior reportingperiod, as well as reconciliation of Level 3 assets, disclosing separately changes during the reportingperiod attributable to (i) total gains or losses recognized in net income, and a description of wherethey are presented in the income statement, (ii) purchases, sales, issues and settlements, and (iii)transfers into or out of Level 3 and the reasons for those transfers. Any significant transfers betweenLevel 1 and Level 2 are disclosed. Further, for fair value measurements in Level 3, if changing one ormore type of the inputs to reasonably possible alternative assumptions would change fair valuesignificantly, the entity shall state this fact and disclose both the effect of those changes and how theeffect was calculated.



The following table provides a summary of the inputs used as at June 30, 2014 and December 31, 2013in valuing the Fund’s investments carried at fair value:

All fair value measurements above are recurring. The carrying values of cash, subscriptions receivable,interest receivable, payable for investments purchased, redemptions payable, distributions payable,accrued expenses and the Funds’ obligations for Net Assets attributable to holders of redeemable unitsapproximates their fair values due to their short-term nature.

The following provides details of the categorization in the fair value hierarchy by asset classes:

a) EquitiesThe Fund’s equity positions are classified as Level 1 when the security is actively traded and a reliableprice is observable.

b) Derivative assets and liabilitiesDerivative assets and liabilities consist of forward currency contracts which are valued based primarilyon the contract notional amount, the difference between the contract rate and the forward marketrate for the same currency, interest rates and credit spreads. Contracts for which counterparty creditspreads are observable and reliable, or for which credit-related inputs are determined not to besignificant to fair value are classified as Level 2. During the Period, there were no Level 3 assets heldby the Fund, nor were there significant transfers between levels.

8. INCOME TAXES

The Fund qualifies as a mutual fund trust under the Income Tax Act (Canada) and, accordingly, is notsubject to tax on that portion of its income, including net realized capital gains for its taxation yearthat is paid or payable to Unitholders. Income tax on net realized capital gains not paid or payable willbe generally recoverable by virtue of refunding provisions contained in the Income Tax Act (Canada)and provincial income tax legislation, as redemptions occur. It is the intention of the Fund to pay allnet taxable income and sufficient net taxable gains so that the Fund will not be subject to incometaxes. The Fund may distribute more than it earns, in which case the excess distribution is a return ofcapital and is not taxable to Unitholders.

As at June 30, 2014 Level 1 Level 2 Level 3 Total

$ $ $ $

Investments, at fair value:

Common Stock 513,471,684 − − 513,471,684

Common Stock Sold Short (41,062,296) − − (41,062,296)

Total Investments, at fair value 472,409,388 − − 472,409,388

Derivative assets − 1,861,429 − 1,861,429

Total Investments, at fair value 472,409,388 1,861,429 − 474,270,817

As at December 31, 2013 Level 1 Level 2 Level 3 Total

$ $ $ $

Investments, at fair value:

Common Stock 467,414,055 − − 467,414,055

Common Stock Sold Short (38,038,346) − − (38,038,346)

Total Investments, at fair value 429,375,709 − − 429,375,709



No provision for income taxes has been recorded in the accompanying financial statements as allincome and net realized capital gains are to be distributed to the Unitholders. Capital losses realized inexcess of those utilized to offset realized capital gains in the current taxation year can be carriedforward indefinitely and may be applied against future years’ capital gains. Non-capital losses may becarried forward for a period of 20 years and applied against future years’ taxable income. As atDecember 31, 2013, the Fund had no capital losses and had no non-capital losses.

9. EXPENSES OF THE FUND

An annual management fee equal to 1.25% per annum of the net asset value of the Fund, calculateddaily and payable monthly in arrears plus applicable taxes, is paid to the Manager. The managementfee totalled $2,628,398 for the six months ended June 30, 2014.

The Fund pays for all ordinary expenses incurred in connection with its operation and administration,including, but not limited to, all costs of Portfolio transactions, fees payable to the Manager,administrator and other third party service providers, custodial fees, legal, accounting, audit andvaluation fees, other administrative expenses and extraordinary expenses that the Fund may incur.

The Manager is also eligible in each fiscal year to receive from the Fund a performance fee (the"Performance Fee") that shall be calculated and accrued monthly and be paid annually, if applicable.The Performance Fee for a given year will, subject to some exceptions regarding redemptions andissuances of Units, be equal to 20% of the amount by which the sum of the net asset value per Unit(calculated without taking into account any Performance Fee) plus distributions paid on such Unitsduring the year exceeds 106.0% of the Threshold Amount plus applicable taxes. The Threshold Amountwill be the greater of: (i) $10.00; and (ii) the net asset value per Unit at the end of the last fiscal yearin which a Performance Fee was paid (after payment of such Performance Fee). Please refer to theFund’s Prospectus for additional information on the Performance Fee. The Performance Fee accrualtotalled $13,837,706 for the Period.

10. RELATED PARTY DISCLOSURE

The Manager and the Investment Manager are wholly-owned subsidiaries of Brookfield AssetManagement Inc. (“Brookfield”) and the Investment Manager manages the investment and tradingactivities of the Fund pursuant to a portfolio management agreement. Due to Brookfield’s ability tocontrol the Fund, Brookfield, and its affiliates over which it has the ability to exercise control orsignificant influence, are related parties of the Fund by virtue of common control or commonsignificant influence.

Transactions with related parties, including investment transactions, are conducted in the normalcourse of operations and are recorded at exchange amounts, which are equivalent to normal marketterms. Please refer to Note 9, which outlines the fees paid to the Manager by the Fund.

As at December 31, 2013, Brookfield and its affiliates did not own any interest in the Fund. There wereno other transactions conducted with related parties during the Period.

11. REDEEMABLE UNITS AND NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

The Fund is authorized to issue an unlimited number of redeemable and transferable Units of a singleclass, each of which represents an equal, undivided interest in the net assets of the Fund. Each Unitentitles the holder to the same rights and obligations as a holder of any other Unit.

The Declaration of Trust provides that the Fund may not issue additional Units except: (i) for netproceeds not less than 100% of the net asset value per Unit calculated as of the close of business on the



business day immediately prior to the pricing of such offering; (ii) by way of Unit distributions; or (iii)with the approval of Unitholders.

Commencing in September 2015 to and including September 2017, Units may be surrendered annuallyfor redemption during the period from August 15th until 5:00 p.m. (Toronto time) on the 10th businessday in September of each year (the “Notice Period”) if and only if the annual redemption condition(the “Annual Redemption Condition”), described below, has been met in such year. Units properlysurrendered for redemption during the Notice Period will be redeemed on the last business day inSeptember of each year and the Unitholder will receive a redemption price per Unit equal to 100% ofthe net asset value per Unit as determined on the Annual Redemption Date less any costs associatedwith the redemption.

The Annual Redemption Condition states that Units may only be redeemed on an Annual RedemptionDate if the simple average of the Net Asset Values of the Units on each business day occurring in themonth of August preceding the Annual Redemption Date is less than $10.00. Notwithstanding theAnnual Redemption Condition, Units may be redeemed at the option of Unitholders on the last businessday of September 2018 and on the last business day of September each year thereafter.

Changes in the number of issued redeemable Units outstanding for the Fund for the Period consisted ofthe following:

Capital managementUnits issued and outstanding represent the capital for the Fund. The Fund has no restrictions or specificcapital requirements and is authorized to issue an unlimited number of transferable Units. Restrictionsand specific requirements on the redemption of Units are described above.

The Statement of Changes in Net Assets and the above table outline the relevant changes of the Unitsfor the Period. The Fund manages its capital in accordance with its investment objectives andstrategies and the risk management practices outlined in Note 5 while maintaining sufficient liquidityto meet Unitholder redemptions.

12. DISTRIBUTIONS

In accordance with the Fund’s investment objective to provide Unitholders with quarterly cashdistributions, the Fund intends to make quarterly distributions to Unitholders of record on the lastbusiness day of March, June, September and December (each, a “Distribution Record Date”).Distributions will be paid on a business day designated by the Manager that will be no later than the15th business day of the month following the Distribution Record Date. The Fund has adopted adistribution reinvestment plan which shall provide that all quarterly cash distributions made by theFund shall, at the election of each Unitholder, be automatically reinvested in additional Units on eachUnitholder’s behalf in accordance with the terms of the plan. The initial quarterly distributions aretargeted to be $0.15 per Unit ($0.60 per annum representing an annual cash distribution of 6.0% basedon the $10.00 per Unit issue price). During the Period, the Fund declared two quarterly cashdistributions of $0.15 per Unit each. Distributions payable as of June 30, 2014 totalled $5,143,553. The

For the period ended June

30, 2014

For the period July 18, 2013

to December 31, 2013

Beginning balance 34,400,000 −

Subscription of Units − 34,400,000

Redemption of Units (109,650) −

Number of Units outstanding, end of period 34,290,350 34,400,000



distribution was subsequently paid to Unitholders in early July 2014. The Fund does not have a fixedquarterly distribution.

In any year after such distributions, there would otherwise remain in the Fund additional operatingprofit or net realized capital gains, the Fund intends to make, on or before December 31 of that year, aspecial distribution of such portion of the remaining net income and net realized capital gains as isnecessary to ensure the Fund will not be liable for income tax under the Income Tax Act (Canada).

13. FINANCIAL INSTRUMENTS BY CATEGORY

The following tables present the carrying amounts of the Fund’s financial instruments by category as atJune 30, 2014 and December 31, 2013:

At Amortized Cost

Held for

Trading

Designated

at InceptionTotal Total

$ $ $ $

Financial assets at fair value through profit or loss − 513,471,684 513,471,684 −

Unrealized appreciation on forward currency contracts 1,861,429 − 1,861,429 −

Cash and cash equivalents − − − 72,699,530

Accrued investment income − − − 1,691,333

Due from broker − − − 468,127

Total 1,861,429 513,471,684 515,333,113 74,858,990

Held for

Trading

Designated


$ $ $ $

Financial liabilities at fair value through profit or loss − 41,062,296 41,062,296 −

Distributions payable − − − 5,143,553

Margin payable − − − 127,906,783

Due to broker − − − −

Accounts payable and accrued liabilities − − − 14,914,667

Total − − 41,062,296 147,965,003

At FVTPL

Financial Assets as at June 30, 2014

Financial Liabilities as at June 30, 2014



The following table presents the net gains (losses) on financial instruments at FVTPL by category forthe periods ended June 30, 2014 and 2013:

14. TRANSITION TO IFRS

The effects of the Fund’s transition to IFRS are summarized in this note as follows:

Transition electionsThe only voluntary exemption adopted by the Fund upon transition was the ability to designate afinancial asset or financial liability at fair value through profit and loss upon transition to IFRS. Allfinancial assets designated at FVTPL upon transition were previously carried at fair value underCanadian GAAP as required by Accounting Guideline 18, Investment Companies.

Fund reconciliation of equity and comprehensive income as previously reported under Canadian GAAPto IFRS

At Amortized Cost

Held for

Trading

Designated


$ $ $ $

Financial assets at fair value through profit or loss − 467,414,055 467,414,055 −

Cash and cash equivalents − − − 59,293,358

Accrued investment income − − − 1,091,189

Due from broker − − − 2,011,862

Accounts receivable − − − 272,782

Total − 467,414,055 467,414,055 62,669,191

Held for

Trading

Designated


$ $ $ $

Financial liabilities at fair value through profit or loss − 38,038,346 38,038,346 −

Distributions payable − − − 5,160,000

Margin payable − − − 127,854,880

Dividends payable − − − 4,622

Accounts payable and accrued liabilities − − − 4,382,758

Total − − 38,038,346 137,402,260

Financial Liabilities as at December 31, 2013

At FVTPL

Financial Assets as at December 31, 2013

Net Gains

2014

Category $

Financial assets and liabilities at FVTPL:

Held for Trading 2,729,150

Designated at inception 67,679,613

Total financial assets and liabilities at FVTPL 70,408,763

Equity December 31, 2013

Equity as reported under Canadian GAAP 353,892,088

Revaluation of investments at FVTPL 750,552

Total equity 354,642,640



Classification of redeemable units issued by the FundUnder Canadian GAAP, the Fund accounted for its redeemable units as equity. Under IFRS,International Accounting Standard, IAS 32 requires that units of an entity which include a contractualobligation for the issuer to repurchase or redeem them for cash or another financial asset be classifiedas financial liability. The fund’s units do not meet the criteria in IAS 32 for classification as equity andtherefore, have been reclassified as financial liabilities on transition to IFRS.

Revaluation of investments at fair value through profit or lossUnder Canadian GAAP, the Fund measured the fair value of its investments in accordance with Section3855, Financial Instruments – Recognition and Measurement, which required the use of bid prices forlong positions and ask prices for short positions; to the extent such prices are available. Under IFRS,the fund measures the fair values of its investments using the guidance in IFRS 13, Fair ValueMeasurement (“IFRS 13”), which requires that if an asset or a liability has a bid price and an ask price,then its fair value is to be based on a price within the big-ask spread that is most representative of fairvalue. It also allows the use of mid-market pricing or other pricing conventions that are used by marketparticipants as a practical expedient for fair value measurements within a bid-ask spread. As a result,upon adoption of IFRS an adjustment was recognized to increase the carrying amount of the Fund’sinvestment by $750,552 as at December 31, 2013. The impact of this adjustment was to increase thefund’s Net Assets attributable to holders of redeemable units by $750,552 for the year ended December31, 2013.

15. EVENTS AFTER STATEMENT OF FINANCIAL POSITION DATE

Management has evaluated subsequent events in the preparation of the Fund’s financial statementsand has determined that other than the items listed herein, there are no events that requirerecognition or disclosure in the condensed interim financial statements.

Year ended

Comprehensive Income December 31, 2013

Comprehensive income as reported under Canadian GAAP 39,072,088

Revaluation of investments at FVTPL 750,552

Total comprehensive income 39,822,640



FUND INFORMATION

MANAGER AND TRUSTEE

Brookfield Investment Management (Canada) Inc.George E. MyhalDirector, President & Chief Executive Officer

Jonathan TyrasManaging Director, Chief Financial Officer, andGeneral Counsel

Gail CecilDirector, Managing Director

Craig NobleDirector

INDEPENDENT REVIEW COMMITTEE

John P. Barratt (Chair)Corporate Director

James L. R. KellyPresidentEarth Power Inc.

Frank LochanCorporate Director

CONTACT INFORMATION

Brookfield Global Infrastructure Securities Income Fund welcomes inquiries from Unitholders, analysts,media representatives or other interested parties.

Investment Manager

Brookfield Investment Management Inc.Brookfield Place250 Vesey StreetNew York, New York10281-1023t. 800.497.3746w. www.brookfieldim.com

Transfer Agent and Registrar

Unitholder inquiries relating to distributions,address changes and Unitholder accountinformation should be directed to the Fund’sTransfer Agent:

Valiant Trust Company710, 130 King Street WestToronto, Ontario M5X 1A9t. 866.313.1872 (toll-free North America)f. 855.375.6916 (toll-free North America)

International 416.360.1646e. [email protected]. www.valianttrust.com

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